2023 Natural Grocers Environmental, Social, and Governance Report

Appendix

Product Standards NATURAL GROCERS ® IS AMERICA’S ORGANIC HEADQUARTERS ®

Our company is well-positioned to serve our communities as the principal source for organics due to our long history as leaders in the organic products movement, our commitment to organic advocacy, and our prioritization of organic groceries in our stores. We believe that organic farming practices exemplify the triple bottom line, and they adhere to our Five Founding Principles as a company. We believe that choosing organic products is one of the most impactful ways to lower the environmental footprint of food. 100% ORGANIC PRODUCE: We sell only USDA Certified Organic produce and source from local, organic producers whenever feasible. Our selection varies based on seasonal availability, and we strive to offer a variety of organic produce offerings that are not typically found at conventional food retailers. CERTIFIED ORGANIC HANDLERS: Each Natural Grocers store is certified annually as an organic handler and processor by an accredited USDA certifier. We operate all our stores in compliance with the National Organic Program standards, which restrict the use of certain substances for cleaning and pest control, and require rigorous recordkeeping and methods to prevent

co-mingling and contamination, among other requirements. MORE THAN 50% ORGANIC ACROSS ALL PRODUCTS

Our GMO Policy Our philosophy is that food should undergo as few modifications as possible. To this end, since 2013, we have sought to avoid sourcing new items with ingredients at high risk of originating from genetically modified organisms (GMOs). If high-risk ingredients are included, they must be organic or verified as non-GMO. If a supplier cannot provide confirmation, we will not carry the product. OUR GMO POLICY IN ACTION: We prioritize organic whenever possible, and organic is naturally non-GMO Our produce is 100% certified organic, and therefore non-GMO Our bulk department offering is 100% non-GMO, with 65% organic selections In FY23 more than 65% of the products we sold were non-GMO

32

NATURAL GROCERS ® | ESG REPORT