2023 Natural Grocers Environmental, Social, and Governance Report

ESG Strategy Natural Grocers ® has a legacy of being a values-driven company. Since our founding in 1955, we have been inspired by our Five Founding Principles, which today many would recognize as sustainability principles.

Our Five Founding Principles are interconnected with Environmental, Social, and Governance elements. We strive to hire Crew who share an affinity for our values. Our Crew are guided by our Five Founding Principles and are dedicated to ensuring that our stores, operations, and supply chain reflect these values.

Environment We believe that our company’s greatest opportunity to positively impact environmental sustainability is through our commitment to high product standards. We prioritize products that are produced with regenerative and sustainable agricultural practices, which support the quality of soil, water, air, as well as biodiversity. We are committed to dairy, egg, meat, and seafood standards that nurture the welfare of animals and our communities. We strive to offer pricing that makes regenerative, sustainable, and healthful choices more affordable for our communities and Crew. Social

QUALITY NUTRITION EDUCATION AFFORDABILITY Product Standards, Safety, Marketing, and Education

SOCIAL • Equity, Inclusion, and Diversity • Pay and Benefits • Talent Development and Retention • Employee Re€ations

ENVIRONMENT

• Soil, Water, and Air Quality • Biodiversity • Climate • Waste and Recycling

CREW COMMUNITY

In FY23 we invested more than $6 million to offer free nutrition education services, provided by our Nutritional Health Coaches, to positively impact community health and wellness. We are committed to supporting our Crew’s physical, emotional, and financial well-being through free nutrition education, compensation above minimum wage, robust discounts and store credit, and comprehensive benefits. We support non-profit groups committed to the health and well-being of our communities and the environment. Governance

GOVERNANCE • Ethics • Public Policy Practices • Risk Management • Data and Cybersecurity

We are committed to strong corporate governance: we believe it builds trust and serves the long-term interests of a diverse set of stakeholders. In FY23 we added a fourth independent member to our Board of Directors.

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NATURAL GROCERS ® | ESG REPORT