2023 Natural Grocers Environmental, Social, and Governance Report

Governance We are committed to strong corporate governance: we believe it builds trust and serves the long-term interests of a diverse set of stakeholders. Through our Board of Directors, we seek to help shape a better world for our customers, our Crew, and our communities, while creating long-term value for shareholders. Our Five Founding Principles, which embody our commitment to sustainability, define our Board culture and guide our approach to corporate governance. Board of Directors Our business and affairs are managed under the direction of our Board of Directors. The Board currently has eight members, of which four are independent directors and three are women. Members of the Isely family control over 50% of our common stock pursuant to a stockholder’s agreement, and, as a result, we are a controlled company under the corporate governance rules of the NYSE and may rely on certain exemptions to NYSE corporate governance standards.

Our approach to corporate governance includes:

Board and management oversight of strategy, risks, and opportunities Audit Committee composed of independent directors Regular executive sessions of independent directors at Board and Audit Committee meetings

Executive Management Team Our executive management team has an average of 38 years of experience in the natural grocery industry, while our entire management team has an average of 33 years of relevant experience. Since the second generation of the Isely family assumed control of the business in 1998, we have grown our store count from 11 stores to 165 stores as of September 30, 2023, while remaining dedicated to our Founding Principles. Over their tenure, members of our executive management team have been instrumental in establishing a successful and scalable operating model, generating consistently strong financial results, developing an effective site selection and store opening process, and implementing ongoing operational efficiencies at existing stores. Risk Management Our Board is responsible for overall supervision of our risk management activities. Our Board’s oversight of the material risks facing the Company occurs at both the Audit Committee level and at the full Board level. Our Board administers its risk oversight function primarily through the Audit Committee, which oversees our risk management practices. However, our full Board oversees cybersecurity risk, and the challenges of climate change. The Board receives presentations throughout the year from various business unit leaders that include, as appropriate, discussion of significant risks.

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NATURAL GROCERS ® | ESG REPORT