2024 Natural Grocers Sustainability Report

FISCAL YEAR 2024 SUSTAINABILITY REPORT

Company Overview

Natural Grocers ® is an expanding specialty retailer of natural and organic groceries, body care and dietary supplement products. We focus on providing high-quality products at Always Affordable SM prices, exceptional customer service, nutrition education and community outreach.

Our Crew as of 09/30/2024

FY24 Net Sales $1.24 billion

Body Care, Pet Care & other 9%

3,332 3,757 813 388

Full Time

Part Time

Dietary Supplements 20%

71% Grocery

Crew in Stores Crew in Corporate, Bulk Packaging Facility and Distribution Center

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Geographic Footprint as of 09/30/24: 169 stores in 21 states

Financial Sustainability 21 consecutive years of positive daily average comparable store sales growth Diluted earnings per share growth of 350% over the previous five years Commitment to returning value to our stockholders: issued dividend payments of $4.76 per common share since we instituted a cash dividend four years ago

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Natural Grocers has a legacy that demonstrates a just, sustainable, and equitable food system is possible. We hope to inspire other companies around the world to follow our lead and to realize that it is possible to offer high-quality organic and natural products at affordable prices.

All data in the Natural Grocers Fiscal Year 2024 (“FY24”) ESG Report reflects results for the fiscal year ending September 30, 2024 unless identified otherwise.

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Letter from Our Co-Presidents

We are pleased to present the Natural Grocers by Vitamin Cottage, Inc. Sustainability Report for the fiscal year 2024 reporting period.

Our Position in the Food Chain Natural Grocers ® has prioritized quality products at affordable prices, nutrition education and caring for our Crew and communities since our parents founded this company in 1955. We believe that grocery stores play a pivotal role in the food chain, a system that is essential to health and wellbeing. We choose to positively impact the ways that food in this nation is grown, raised and sold. We do not follow whatever shortcut or ‘health fad’ is trending. Our products have a purpose: to support the health and wellbeing of our communities. We aim to offer nutritionally sound, environmentally responsible products, and prioritize vendors and farmers who are as passionate about human health, animal welfare and the health of our planet as we are. Partnership with Rodale Institute

We are the only national grocery retailer in the United States committed to offering: 100% certified organic produce 100% non-GMO bulk products 100% pasture-raised dairy 100% free-range eggs Humanely raised and sustainably sourced meats, fish, and seafood Grocery products may not contain

In 2024 Natural Grocers announced a new partnership with Rodale Institute. This esteemed organization has been putting science behind the best practices in organic agriculture for more than 75 years, advancing research to show that healthy soil leads to healthy food, healthy people and a healthier planet. Its groundbreaking science and direct farmer-support programs serve as a catalyst for change in farming and food production worldwide. Rodale Institute’s Farmer Training Programs focus on regenerative organic agriculture, and include opportunities for farmers transitioning to organic and the next generation of organic leaders. To support accelerating the expansion of regenerative organic agriculture, we dedicated our September Organic Month fundraiser campaign to Rodale Institute, and raised more than $80,000 for their Farmer Training and Veteran Farmer Training programs. For more information about Rodale Institute, including their Farmer Training and Veteran Farmer Training programs, please see page 12 in this report. Fiscal year 2024 was a record-setting year in terms of revenue and profit for Natural Grocers. Our success demonstrates that a business model dedicated to offering high-quality, affordable, natural and organic products can help deliver positive social and environmental impacts, while creating value for stakeholders. We hope to inspire other companies to follow our lead. artificial flavors, preservatives, or sweeteners (as defined by our standards), synthetic colors, or partially hydrogenated, or hydrogenated oils

Kemper Isely, Co-President

Zephyr Isely, Co-President

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Table of Contents

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TIMELINE

FIVE FOUNDING PRINCIPLES

STATEMENT ON SUSTAINABILITY

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PRODUCT STANDARDS

OPERATIONS

PEOPLE

CORPORATE OVERSIGHT

SASB INDEX

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1958 | The first brick and mortar store opened in Denver, CO and was called “The Builder’s Foundation”

1980-81 | Margaret was president of the Rocky Mountain Regional division of the National Nutritional Foods Association. This position included organizing local trade shows, and lobbying to protect the right to access vitamins and supplements that

1955 | Founders Margaret and Philip

1963 | The Iselys converted a cottage-style house into their new store, inspiring the name change from “The Builder’s Foundation” to “Vitamin Cottage”

Isely went door-to-door selling whole-grain bread and loaning out books on nutrition to help educate and spread the joys of healthy living to neighbors in Golden, CO

1974 | Opened second location in East Denver

support health and wellbeing.

ORGANIZATIONAL MILESTONES

1950s 1960s 1970s 1980s

Margaret spearheaded a grass-roots letter writing campaign that secured the passage of the Proxmire Amendment, legislation that was key to preserving access to dietary supplements

We started pre-packing all bulk foods and refrigerating select bulk (nuts, seeds, and flours) to ensure quality, cleanliness, and freshness Nutrition Education was one of the core founding principles of the business— the Iselys taught the community that nutrition was an essential building block for excellent health

PRODUCT

STANDARDS

Formal Nutrition Education program established

1950s–2000s | Minimum standard cage free 2016–Present | Minimum standard free range

EGGS

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EDUCATION

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2015 | Introduced the {N}power ® customer loyalty program

1999 | The second generation Iselys officially purchased the company from the first generation

2015 | Margaret was inducted into the Natural Products Industry Hall of Legends 2013 | Stopped carrying new grocery products containing ingredients that are at high risk of coming from GMO crops, animals, or fermentables, unless those ingredients are certified organic or verified non-GMO

HEROES IN APRONS FUND SM

1994 | Margaret and Heather Isely lead a grassroots letter writing campaign to achieve passage of the Dietary Supplement Health and Education Act of 1994 (DSHEA) which provided the legal framework that regulates dietary supplements today

2008 | Vitamin Cottage Natural Grocers phased in a name change to Natural Grocers by Vitamin Cottage, to emphasize that groceries, rather than nutritional supplements, formed a majority of sales

2021 | Established the Heroes In Aprons Fund: a 501(c)(3) charitable entity providing financial assistance to qualifying Crew who experience unanticipated hardships

2012 | IPO

1990s 2000s 2010s 2020s

1990 | National Organic Program established under the U.S. Department of Agriculture

2017 | Compassion in World Farming awarded Natural Grocers the international Good Egg Award for cage-free egg supply chain 2018 | First national grocery chain to offer exclusively 100% organic and Fair Trade Certified coffee for our private-label brand

2020 | In the produce aisle, switched to plant based, compostable plastic bags and 100% recycled, recyclable, and compostable paper bags

1990 | Removed all products that contained man-made trans fats from the shelves and released the first edition of “Things We Won’t Carry and Why”

2009 | Eliminated single-use plastic bags-at checkout and switched to bring-your-own-bag or upcycled cardboard boxes

2022 | Initiated CO 2 refrigeration pilot

DAIRY Since 2014 | Pasture based only

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Our Five Founding Principles express our core beliefs. In the 69 years since we opened our doors, they have driven, and continue to drive, every aspect of our business practices. Our Five Founding Principles

Every product on our shelves must go through a comprehensive screening and approval process. Our standards are designed to provide our customers with the highest quality natural and organic groceries, health-promoting supplements, natural body care products, wholesome Natural Grocers ® branded products, and only 100% USDA Certified Organic produce. This is how we seek to support our customers’ health and encourage a thriving, regenerative environment. We work hard to secure affordable pricing on wholesome, natural foods and supplements. This is how we ensure that our customers have access to the high quality natural and organic products that help the planet thrive as well. Empowering our neighbors, family, Crew, and communities to take charge of their health through science-based nutrition education and to choose products with a lighter and more sustainable environmental footprint is how we care for our Crew, our community, and the planet we all share. We are passionate about ensuring that our Crew members can live a healthy, balanced life. Supporting them with free Nutrition Education programs, competitive pay, attractive benefits, and access to high-quality, affordably priced products is how we keep our commitment to healthy Crew members who help make our company great. We support our communities to help shape a better world for all, through free Nutrition Education classes and health-coaching sessions, bag-free checkouts, sourcing local products, and our donation and fundraising programs.

QUALITY

Quality

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Nutrition Education Crew

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Co-founder MARGARET ISELY

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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. Statement on Sustainability

We believe that our company’s greatest opportunity to positively impact human health, environmental sustainability, and animal welfare is through our rigorous 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. We were founded on the conviction that nutrition is the foundation of good health, and that free nutrition education empowers our communities and Crew members to improve their well-being. Like our product standards, our approach to nutrition education is evidence-based and research-backed. In FY24, we

invested more than $7 million to offer free nutrition education services, provided by our Nutritional Health Coaches, to positively impact the health and wellness of our Crew and communities. 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. 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.

OUR FIVE FOUNDING PRINCIPLES SUPPORT THE PLANET AND ITS INHABITANTS To demonstrate the interconnectedness, each page of this Sustainability Report includes tags identifying the Five Founding Principle(s) in action and the beneficiaries.

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We believe that our company’s greatest opportunity to positively impact human health, environmental sustainability, and animal welfare is through our rigorous product standards. We also firmly believe that nutrition is the foundation of good health. These values are the cornerstone of our product standards because farming and food production practices that provide nutritious food made without the use of synthetic pesticides, or artificial additives, also positively impact human health, environmental sustainability, and animal welfare. Our product standards and nutrition education are evidence-based and research-backed. Further, our company continues to work within the industry to drive higher product standards. PRODUCT STANDARDS OVERVIEW Our company has a legacy of rigorous product standards and a culture of continuous improvement of these standards. We make every effort to base our standards on the latest relevant scientific evidence to support the health and sustainability of the food system, our Crew, and our communities. We offer our customers approximately 21,000 Stock Keeping Units (SKUs) of natural and organic products per store, including approximately 6,700 SKUs of dietary supplements. We believe our extensive product offering enables our customers to fulfill, with few exceptions, all of their grocery and dietary supplement needs in our stores. We prioritize products and producers with organic and regenerative agriculture practices, as well as meat and dairy standards that nurture the welfare of animals and farming communities. ALWAYS AFFORDABLE SM PRICING Product Standards PEOPLE ANIMAL WELFARE HEALTH PLANET QUALITY COMMUNITY CREW

NUTRITION EDUCATION

We continue to demonstrate industry leadership in product standards and are the only national grocery retailer in the United States offering: 100% certified organic produce More than 50% organic across all products Bulk products are 100% non-GMO and more than 65% certified organic More than 65% non-GMO across all products 100% pasture-raised dairy 100% free-range eggs Committed to offering humanely raised and sustainably sourced meats, fish, and seafood 60% certified to environmental or social sustainability sourcing standards Grocery products may not contain artificial flavors, preservatives, or sweeteners (as defined by our standards), synthetic colors, or partially hydrogenated, or hydrogenated oils

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The regenerative farming philosophy incorporates best practices of pre-industrial farming with years of scientific and applied research. Compared to industrial agricultural practices, regenerative farming systems improve ecosystem functions, which provides overall environmental benefits, increased yields, and resistance to climate instability. By returning the land to its original natural state, the soil and above-ground biomass are able to operate as designed and may help mitigate climate change impacts by sequestering carbon within the soil itself. It also provides greater economic value and quality of life advantages for farming and ranching communities by making the land productive and sustainable. Regenerative Agriculture and its Impacts

Regenerative Farming Techniques Include:

Cover crops fix soil nutrients, such as nitrogen, improving soil structure, and protecting it from erosion and nutrient loss, which helps with fertilization and fosters a robust pollinator habitat.

Crop rotation reduces pests and minimizes disease cycles that may limit harvest output. The resulting reduction in harmful insects can lead to the reduced use of, or elimination of, pesticides, which increases the health of wildlife and the purity of water runoff. Integration of trees and shrubs contributes to land health by increasing habitats for insects, pollinators, and wildlife, breaking down waste and processing it for the nutrient cycle.

Reduction or removal of chemical pesticides reduces or eliminates their impact on soil, animal, plant, and end consumer health

Livestock land management practices such as rotational pasture grazing and co-grazing are vital to providing a more natural habitat for the animals, insect presence, and biodiversity, improved plant growth, and better soil.

Low or no till practices maintain soil stability, which reduces erosion, increases water and nutrient retention, and increases the microbiological quality of the soil.

CARBON CAPTURE POTENTIAL We believe that regenerative agriculture is an important practice with the potential to mitigate climate change. In agricultural systems, the amount and length of time carbon is stored is determined predominately by how the soil resource is managed. 1 The results are observable and measurable. The Rodale Institute’s 2020 white paper Regenerative Agriculture and the Soil Carbon Solution concluded that global adoption of regenerative agricultural practices provides a mechanism to sequester more than the current annual atmospheric carbon dioxide (CO 2 ) emissions generated by human activity. 2 Additionally, the white paper identified examples where, depending on the soil conditions and regenerative practice used, the soil carbon sequestration rate was rapid in the early years after implementation, which enables it to be a tool for near-term improvements. 1 Ecological Society of America https://www.esa.org/esa/wp-content/uploads/2012/12/carbonsequestrationinsoils.pdf 2 Moyer. J, Smith. A(PhD), Rui. R(PhD), and Hayden. J(PhD). (2020). Regenerative Agriculture and the Soil Carbon Solution. Rodale Institute.

Our product standards that support regenerative farming:

• 100% certified organic produce • More than 50% organic across all products • 100% pasture-based dairy • 100% free-range eggs • Committed to offering humanely raised and sustainably sourced meats

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Natural Grocers ® is Proud to Partner with Rodale TM Institute

PARTNER PROFILE:

Rodale Institute is a 501(c)(3) nonprofit dedicated to growing the regenerative organic agriculture movement through rigorous research, farmer training, and education. Its groundbreaking science and direct farmer-support programs serve as a catalyst for change in farming and food production worldwide. Over their 75-year history, they have proven

that organic farming is not only viable, but essential to humanity’s survival.

RESEARCH For more than 75 years, Rodale Institute has been putting science behind the best practices in organic agriculture proving that healthy soil=healthy food=healthy people. With over 25 active research projects across seven sites, Rodale Institute has been the leading voice in developing solutions for the regenerative organic agriculture movement. Rodale Institute’s research focus areas include developing organic solutions to pests, disease and weeds, mitigating and adapting to climate change, and growing nutrient dense foods. FARMER TRAINING In the United States, organic sales have topped nearly $70 billion annually, and continue to grow. Yet less than 1% of U.S. cropland is certified organic. We have a need for more organic farmers, from beginners to seasoned professionals. Today, there are 6 times as many farmers over 65 as under 35. The time is now to invest in the future of organic agriculture. That’s why Rodale Institute is helping farmers transition to organic and training the next generation of organic leaders. GROWING CAREERS, GROWING FOOD Every year, Rodale Institute welcomes a select group of students to their headquarters to train for careers in organic agriculture. Farmer trainees focus on growing their farming skills both in the classroom and in the fields. RODALE INSTITUTE FARMER TRAINING AND VETERAN FARMER TRAINING These highly immersive, full-time programs allow anyone to begin a career in organic crop and vegetable production. Students learn financial skills, soil science, digital marketing and botany, coupled with hands-in-the-soil applications, learning on a world-renowned experimental farm. Students work alongside Rodale Institute farmers to grow organic produce for farm shares and farmers’ markets, learning how to process, distribute and sell healthy, organic food as a successful business. Learn more at RodaleInstitute.org

NATURAL GROCERS

DEDICATED THE SEPTEMBER 2024 ORGANIC MONTH FUNDRAISER CAMPAIGN TO RODALE INSTITUTE, RAISING MORE THAN $80,000 TO SUPPORT RODALE INSTITUTE’S FARMER TRAINING AND VETERAN FARMER TRAINING PROGRAMS.

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Natural Grocers ® supports biodiversity by being a marketplace that prioritizes offering high-quality natural and organic products sourced from vendors who themselves prioritize biodiversity supportive practices. Furthermore, we educate customers on regenerative and sustainable practices by communicating our high standards in our stores, and through educational articles in our Health Hotline Magazine, on our website, and through classes taught by our Nutritional Health Coaches (NHCs). By integrating biodiversity supportive practices into our offering, we aim to contribute to the preservation and sustainability of our natural environment, thereby supporting a food system that yields healthy and nutritious options and food security. Biodiversity encompasses a diverse range of animals, plants, and microorganisms. Biodiversity is vital to the processes that support all life on our planet, and thereby foundational to healthy and nutritious diets and critical to the protection of food security. Supporting Biodiversity

REGENERATIVE AGRICULTURE SUPPORTS BIODIVERSITY ABOVE AND BELOW GROUND

Regenerative systems promote biodiversity through interdependent practices. In return, diverse species provide essential ecosystem services, including nutrient cycling, erosion control, carbon sequestration, water infiltration, and pest and disease regulation. For more information about regenerative agriculture’s support of biodiversity, including biodiversity-cultivating practices, please see Earth Watch: Biodiversity Loss— It’s an Agricultural Issue.

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Organic Farming Supports Pollinators

More than 75 percent of the world’s major food crops rely, at least in part, on pollination by insects. Due to the industrialization of farming practices during the mid-20th century, pollinator populations have been declining in recent decades. Monoculture farming has had a detrimental impact on biodiversity, including habitat loss for pollinators. Changes in farming practices led to the widespread use of insecticides, fungicides, and herbicides. The most widely used insecticide class globally, neonicotinoids, present a range of problems for bees, including impairing development and foraging efficiency and increasing susceptibility to diseases. Fortunately, by eating organic foods, we can support the health and stability of pollinator populations and biodiversity. Organic farms prohibit the use of synthetic

pesticides, and instead utilize integrative pest management to control harmful pests and promote healthy crop growth. By supporting pollinators with organically managed land, they can exist in more stable populations with greater biodiversity, thereby promoting the long-term health of our planet and improving the security of our food supply. For more information about pollinators and organic practices, please see For The Love of Organics: Pollinators Natural Grocers ® offers only 100% certified organic produce, and more than 50% organic across all products

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Product Standards

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 more than 65% organic selections More than 65% of the products we sold were non-GMO OUR PALM OIL POLICY The production of this extensively used ingredient has such significant social and environmental impacts that we are seeking to influence the supply chain at the farm and production levels through our transparent sourcing policies. We accept all certified organic single-ingredient palm oil For products that are not certified organic, we accept Roundtable on Sustainable Palm Oil (RSPO) Certified under the following circumstances: We accept RSPO Segregated palm oil, which is kept separate from conventional palm oil throughout the supply chain and is certified sustainable We do not accept RSPO Mass Balanced or Book & Claim palm oil because up to 90% of the batch can come from conventional sources. As we want to incentivize the change to responsible palm oils, we are aiming at RSPO levels that are above this minimum standard and avoid co-mingling We also accept Palm Done Right certified palm oil as it comprehensively monitors through third-party certifications the social, wildlife, and environmental impacts, and ensures responsible sourcing throughout the supply chain

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 offerings in our stores.

We believe that choosing organic products is one of the most impactful ways to lower the environmental footprint of food.

More than 50% organic across all products

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 wide variety of produce that is not typically found at conventional food retailers. We carry only 100% certified organic produce to eliminate the possibility of contamination from the chemicals applied to conventional produce. 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 demand rigorous recordkeeping and methods to prevent co-mingling and contamination, among other requirements.

More info is ava ilable at: 100% Organic Produce and 100% Organic Produce Standards

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Things We Won’t Carry and Why

Quality matters for human health, economic health, and the planet’s health. At Natural Grocers, quality is measured as much by what we don’t sell as by what we do. Since the 1990s, we have maintained a growing list of ingredients which we won’t sell in our stores and why. Our Quality Standards Team stays abreast of the latest research to evaluate product issues and concerns, and review specific ingredients, resulting in ongoing modifications to this list. As our commitment to quality remains constant, o ur list of Things We Won’t Carry and Why is always growing.

Egg Standards

OUR MINIMUM EGG STANDARD IS FREE RANGE In 2016 we established our own egg standards and were the first major US grocery chain to offer an exclusively free-range egg supply chain. Our egg ranking system has three tiers. Our minimum standard, Bronze, is higher than what most U.S. grocers offer. Bronze: Minimum of 2 square feet of outdoor access per hen (the amount a sizeable panel of animal welfare scientists and veterinarians determined to be necessary to allow for chickens to exhibit their natural behaviors) Silver: Enhanced outdoor access space with a minimum of 20 square feet per hen and/or at least 6 hours of outdoor access per day Gold: Outdoors all day long with a minimum of 108 sq. ft. of outdoor space per hen; certified organic . More info is available at: Egg standards In the United States, ‘cage-free eggs’ likely does not mean what the average consumer thinks it means. The United States Department of Agriculture’s definition of cage free is that hens are not caged during the laying cycle; the hens may be caged when not producing eggs, and there is no requirement for the hens to spend time outdoors. The cage-free labeling requirements do not address farm ecological practices, nor humane standards of care such as space requirements per hen in the barn. WE DO NOT SELL EGGS FROM CAGED HENS. PERIOD.

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Committed to Offering Humanely Raised and Sustainably Sourced Meat and Seafood

OUR STANDARDS

Our high standards for humanely raised and sustainably sourced meats and seafood are anchored in taking responsibility for the entire lifecycle of animals raised for human consumption and its impact on animal welfare, human health, and the planet. For these reasons, our basic standard, Bronze, usually matches the highest standard found at many of our competitors’ grocery stores and farmer’s markets. We rely on the latest research and the diligence of our in-house Quality Standards Team to ensure our Meat and Seafood Standards are consistent with our values. MEMBER OF THE U.S. WORKING GROUP FOR BROILER CHICKEN WELFARE The Better Chicken Commitment is the leading set of standards for broiler welfare driving the food industry towards higher welfare practices. We are excited to be part of the Working Group to improve the broiler chicken industry and leading the way for better transparency, a more humane world, and a better environment for animals and humans alike. With the right course correction, animal agriculture has the power to improve the land, the lives of the people who raise crops and animals, and provide high-quality food access to all.

SILVER INCLUDES BRONZE & BRONZE+ STANDARDS NON-GMO feed NON-GMO alfalfa (ruminants) NO synthetic colorants (seafood) FREE RANGE (poultry) 100% GRASS FED (ruminants) CERTIFIED ORGANIC and/or other regenerative farming practices (ruminants, seafood) SUSTAINABLY SOURCED (seafood)

BRONZE SUSTAINABLY FARMED HUMANELY RAISED NO antibiotics, hormones or growth promotants NO animal by-products NO cloned or genetically modified animals BRONZE + INCLUDES BRONZE STAN DARDS DEEPLY BEDDED PENS (pork)

GOLD INCLUDES BRONZE, BRONZE+ & SILVER STANDARDS

CERTIFIED ORGANIC and/or other regenerative farming practices (poultry, pork) 100% U.S. DOMESTIC (ruminants, poultry, pork) WILD CAUGHT & SUSTAINABLY CERTIFIED (seafood, boar)

STUDY SHOWS HIGHER NUTRITIONAL QUALITY OF PASTURE BEEF

A study published in 2024 by Nature Scientific Reports assessed over 1,500 metabolic compounds in beef from two commercial US-based farms: beef finished on biodiverse Western U.S. rangelands compared to beef that was grain finished in a Midwest U.S. feedlot. The study highlights that cattle finished on pasture rather than grain exhibit improved metabolic health, resulting in more nutritious beef. Pasture finished beef contains higher levels of beneficial omega-3 fatty acids, plant-phytonutrient antioxidants, and essential vitamins like vitamin E (alpha-tocopherol) and niacin (vitamin B3) compared to grain-finished beef. These findings suggest that grass-fed beef may offer enhanced nutritional benefits, making it a healthier option for consumers. The study also points out the potential environmental advantages of pasture based cattle farming. By profiling over 1,500 compounds across multiple metabolic classes, this study is the most in-depth comparison of beef from two US finishing systems to date.

More info is available at: Better Chicken Commitment

Evans, N., Cloward, J., Ward, R.E. et al. Pasture-finishing of cattle in Western U.S. range lands improves markers of animal metabolic health and nutritional compounds in beef. Sci Rep 14, 20240 (2024). https://doi.org/10.1038/s41598-024-71073-3

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Natural Grocers ® does not support industrial farming that uses concentrated animal feeding operations (CAFOs). Instead, we seek to work with producers who are changing the industry by raising animals in more humane and natural ways, and protecting their workers and communities through mindful and ethical farming practices. When customers buy from Natural Grocers, they are supporting these farmers and better practices. For more information: Say No To CAFOs SUPERIOR ALTERNATIVES TO CAFO PRODUCTION Our rigorous Meat Standards provide consumers with options that support the health and welfare of animals, people, and the environment. See the profile one of our top pork producers, Beeler’s, for how it can be done better.

The industrialized model of raising animals using concentrated animal feeding operations (CAFOs) to produce meat, eggs, and dairy is harmful to the animals, the people who work there, the communities in which they are located, the water and air, and the climate.

CAFOs

THE ISSUES ARE MULTIFACETED AND INTERCONNECTED: Conditions: A CAFO is a large facility in which animals are kept and raised in confined environments, usually indoors, where movement is restricted. Feed, usually grain and soy based, is brought to the animals rather than allowing them to roam and feed in pastures, fields, or on rangelands. For more info: Say No To CAFOs Farmers: The majority of production has been consolidated to just four corporations, and they created a model of vertical integration in which they own every aspect of the production chain. The farmers who contract with the corporations have little to no choice in how they raise their animals. For more info: Say No To CAFOs Antibiotics that are considered important for human medicine are widely used in CAFOs, and could result in antibiotic resistance. A 2017 FDA ban of antibiotics as growth promoters has been circumvented. For more info: Earth Watch: Bacon Cheeseburger With a Side of Drug-Resistant Superbugs? No Thanks! Waste includes animal feces, nitrates, pharmaceuticals, industrial nitrogen products and other pollutants. Waste often accumulates, and is regularly released due to flooding or organized spreading onto farm fields. The waste enters waterways, killing fish and causing algae blooms, impacts the food chain when pharmaceutical laden manure is spread on farm fields, and eventually absorbs into the water table impacting water quality and viability. For more info: Earth Watch: The Stinky Truth About CAFO Waste Workers are at increased risk for injuries resulting from confined animal interactions, and are often not encouraged to use personal protective equipment resulting in exposure to poisonous gases and endotoxins. For more info: Earth Watch: CAFO Farmworkers Lack Basic Job Safety Protections Community health is impacted by pollution generated by CAFOs. Studies of communities with high CAFO concentration have higher mortality rates in general, including higher infant mortality rates, and increases in anemia and kidney disease-related deaths. For more info: Earth Watch: Living Near CAFOs Reduces Life Expectancy, Especially in Young People and Infants

An example of CAFO conditions

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For six generations in Iowa, the Beeler family has produced the highest quality pork, and prioritize humane treatment of their pigs. They define “humanely raised” as raising pigs in a manner that prioritizes animal care, including without the use of gestation crates. These standards are consistently practiced and frequently reviewed. CARING FOR THE SOWS Beeler’s provides special care for sows (mama pigs). Instead of gestation crates, Beeler’s houses sows in large, unrestricted pens that allow for social interaction and freedom to move around. The sows have full access to a food and water court, located away from the bedded area. When it is time to give birth, the mamas are moved to maternity wards that are large enough to allow a sow to stand up, lay down, and turn around unrestricted, while also providing protection for the newborn piglets. HOUSING AND DIET VENDOR PROFILE: “Meat” the Beelers

Beeler’s pigs are very social, and tend to prefer congregating. They have access to indoor and outdoor areas. Barns are naturally- and well ventilated. The indoor bedding areas are regularly maintained with fresh straw or cornstalks to be sure that the pigs are clean, comfortable and happy. The pigs in finishing barns are also given enough space to comfortably lay down and enjoy social interaction. All pigs are fed a non-GMO vegetarian diet that is free of animal byproducts, antibiotics, growth promotants, and additives like ractopamine. 1 1 Ractopamine is used to promote leanness, and is banned or restricted in 160 countries but not the US. (Lawsuit Filed Demanding FDA Respond to Petitions Seeking to Ban Ractopamine, 2024)

BEELER’S PRODUCTS Beeler’s is always looking for new ways to combine modern and old world practices to ensure the best of both worlds for their pigs and caretakers. Beeler’s raises the European “Red” Duroc breed, known for beautiful marbling, texture, and the perfect pH. They offer a wide variety of products including bacon, ham, ribs, sausages, and more. Their products do not contain antibiotics, added nitrites or nitrates, MSG, phosphates, gluten, or any chemical preservatives. With only four or five ingredients in each product, simplicity is their recipe for success. They proudly meet and exceed the USDA’s standard to be considered “minimally processed” which requires that nothing is done to the meat to alter the natural taste. For additional information about Beeler’s and their commitment to humanely raised and minimally processed pork, please visit their website: https://www.beelerspurepork.com Beeler’s pigs are housed in naturally- and well-ventilated barns bedded with straw or corn stalks, and have space to enjoy social interaction and comfortably lay down.

The Beeler’s pigs have access to both indoor and outdoor areas

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We offer an extensive selection of natural and organic grocery products with an emphasis on minimally processed items, as well as wide variety of products associated with special diets, including gluten-free, non-dairy, and plant-based. We do not carry products that are known to contain artificial flavors, preservatives or sweeteners (as defined by our standards), synthetic colors, partially hydrogenated or hydrogenated oils, or have been irradiated. Grocery Standards NATURAL GROCERS ® BRAND PRODUCTS Natural Grocers’ pre-bagged bulk products have been part of our offering since the 1960s. The Natural Grocers Brand product line was launched in 2018 and now has approximately 800 private-label products. Our private brand allows us to offer premium-quality, natural and organic groceries at affordable prices. We prioritize certified organic and non-GMO for our Natural Grocers ® Brand Products. Whenever possible, we seek to support like-minded suppliers who prioritize social responsibility and environmental sustainability. We refrigerate select bulk nuts, seeds, and flours to ensure quality, cleanliness, and freshness. We offer a wide selection of private label repackaged bulk products, of which 100% are non-GMO and more than 65% are certified organic. We offer peanut and almond butters that are freshly ground in-store.

More info is available at: Grocery Standards, Bulk Standards and Things We Won’t Carry And Why In Grocery

The Natural Grocers brand packaged organic tomatoes are not only delicious but grown and processed with care. Organically managed soil provides the building blocks to grow healthier, flavorful tomatoes. While conventional canned tomatoes use caustic liquids to remove peels, Natural Grocers tomatoes are peeled using a 100% steam process. Benefits of steaming: • No chemicals are used • Reduced waste: peels are used in cattle feed (a tasty treat for them) • The water used in steaming is reused to irrigate the tomato crops

More info about our Natural Grocers brand packaged organic tomatoes is available in our “Meet Your Farmer” series: Field to Can

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NATURAL GROCERS ® | SUSTAINABILITY REPORT

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Dietary Supplement Standards

Our Dietary Supplements department offers approximately 6,700 SKUs of name-brand and Natural Grocers ® Brand private-label supplements. We do not allow artificial flavors, sweeteners (as defined by our standards), synthetic colors and other ingredients we believe to be potentially harmful to human health. All our supplements are required to comply with current Good Manufacturing Practices (GMP) established by the FDA, and the vast majority of our supplement offerings go above and beyond GMP and are manufactured in a GMP third-party certified facility.

Our Quality Assurance Team scrutinizes each step of formulation, from raw materials to purity testing methods, to ensure it meets our high-quality standards. We also periodically conduct independent lab testing to ensure that the quality and potencies stated on labels are accurate. Our commitment to quality means that the latest supplement craze may not be immediately available in our stores. The review process takes time, as we require a significant amount of information from our vendors. More info is available at: Vitamins And Supplements And Dietary Supplement Standards and Things We Won’t Carry And Why In Vitamins & Supplements NATURAL GROCERS BRAND SUPPLEMENTS Our private-label brand of supplements is a

comprehensive offering of vitamins, herbs, minerals, and precision formulas. Our branded supplements are manufactured in a GMP third-party certified facility, affordably priced, and formulated with science-based expertise and premium-quality ingredients.

Books Books have played a pivotal role in the company since our founding when Margaret and Philip Isely went door-to-door lending books about nutrition to their neighbors. Today, every store has a book nook, where customers can find publications on a range of health and wellness topics.

Pet Product Standards The guiding principles of our pet product standards are premium-quality formulations created with science backed nutritional research. We carry a wide selection of natural and organic pet foods, including many free of common allergens like corn, soy, and wheat. We also offer supplements and grooming aids for pets that meet the same standards we look for in our human products. More info is available at: Pet Products and Pet Product Standards

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Household Product Standards

We believe that every choice counts when it comes to healing our planet. Like all of our product standards, we rely on current environmental science to inform our household product standards. We seek out products that are ethically sourced, sustainably produced, and innovatively effective. We require our household products vendor partners to provide a full ingredient list to us, even though there are no regulations mandating it. We carry brands that have been defining eco-friendly for decades, along with exciting up-and-comers, and we’re united by our common goal of leaving this planet better than we found it. We know that together is the only way to get there, so we carry a comprehensive selection of everyday household products, from toilet paper made from bamboo, to compostable lunch bags, and unbleached, chlorine-free parchment paper and baking cups. OUR CURRENT STANDARDS DON’T ALLOW: Artificial fragrances Synthetic colors from potentially carcinogenic coal tar dyes Chlorines THE THINGS WE DO REQUIRE: Full disclosure ingredient lists to us: Current government policy allows a wide range of hidden ingredients to be used in household products, for the sake of proprietary formulas. We believe that none of us should be exposed to chemicals that are potentially hazardous to ourselves and the planet, so we require full disclosure to us so that we can ensure that ingredients we are concerned about do not make it to our shelves. THE THINGS WE PRIORITIZE: Certified compostable Recycled materials Marine life stewardship Sustainable production practices Sustainable packaging made of recycled or plant-derived and bio-degradable materials Mission-driven empowerment More info is available at: Household Products and Household Product Standards

BIO-BASED PLASTICS Many of our Natural Grocers ® Brand Products household cleaners use bottles made from sugar cane rather than the more commonly used petroleum base. This is beneficial to the environment because 1 pound of sugar cane-based polyethylene (a renewable resource) captures 2.15 pounds of carbon dioxide (CO 2 ), compared to 1 pound of Petroleum-based polyethylene which emits 1.83 pounds of CO 2 .

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Body Care Product Standards

We offer a full range of products, from everyday essentials to high-end formulations, all containing natural and organic ingredients, including baby care, bath & body care, cosmetics, essential oils, facial care, hair care, and oral hygiene products. We partner with companies who are committed to crafting products that deliver results without compromise.

THE THINGS WE DON’T ALLOW:

Our in-house Quality Standards Team routinely re evaluates ingredients to ensure that our body care selection is focused on avoiding ingredients that we believe to be harmful to humans and the planet. We do not source body care products made with parabens, phthalates, synthetic fragrances, talc, aluminum tetrahydroxide, formaldehyde, and oxybenzone. Certified organic, non-GMO, Fair Trade, and other certifications are prioritized whenever possible to provide an extra layer of transparency and trust for our customers. Gluten-free: We understand the challenges of leading a gluten-free lifestyle, which is why our stores are expanding their certified gluten-free body care selections as much as possible. More info is available at: Body Care Products, Body Care Standards and Things We Won’t Carry And Why In Body Care

THE THINGS WE PRIORITIZE:

MINERAL-BASED SUNSCREENS At Natural Grocers ® our body care standards only allow mineral-based sunscreens, and do not allow chemical sunscreens in any products. Mineral-based sunscreens physically block or deflect the sun’s rays. We choose mineral over chemical sunscreens because we believe they are the better choice for human health, animal health, and the environment. For more information about sunscreens, please see Earth Watch: Chemical Sunscreens Are Polluting Our Waterways

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FISCAL YEAR | 2024