2023 Natural Grocers Environmental, Social, and Governance Report

Waste and Recycling We are focused on opportunities for waste avoidance and diversion within our operations to increase our operations’ environmental sustainability.

In Our Stores: Avoidance:

• We significantly reduce food waste compared to conventional grocers by not offering self-service bulk bins, deli counter, meat counter, seafood counter, or salad bar. • We have automated the ordering process for most departments, which reduces over-ordering and waste. • We have technology that streamlines temperature tracking for all coolers in our stores. Diversion: • Each store partners with local food banks to donate products regularly. In FY23 we donated more than $5 million of in-kind food and product. • We practice recycling, composting, and cardboard upcycling to divert waste from landfills, including recycling shipping pallets and the plastic used to wrap them. • Our Natural Grocers ® Brand Products use recyclable, biodegradable and/or compostable packaging whenever possible. Our bulk packaging is free from Bisphenol A (BPA) and phthalates. • We partner with the How2Recycle organization to educate consumers on recycling strategies and how to minimize recycle bin contamination.

In Our Bulk Packaging Facility and Distribution Center: Avoidance: • Corrugated boxes used in bulk packaging contain 48% recycled content and are recyclable. • Automated production processes incorporate post consumer recycled (PCR) film that is made from 40% recycled material. • Through process changes and automation, our bulk packaging facility and distribution center reduced plastic stretch wrap use by approximately 50% compared to the prior system. • Our bulk facility’s closed production loop utilizes engineered wood pallets made from recycled wood that are reused within the facility driving operational and environmental benefits.

Since 2020 our produce department has offered two alternatives to conventional plastic produce bags: 1) plant-based, household compostable plastic bags, and 2) 100% recycled, recyclable, and compostable paper bags. This has prevented more than 50 million conventional plastic produce bags from entering the waste stream and impacting the environment.

20

NATURAL GROCERS ® | ESG REPORT