2024 Natural Grocers Sustainability Report

PLANET

QUALITY

NUTRITION EDUCATION

COMMUNITY

CREW

ALWAYS AFFORDABLE SM PRICING

PEOPLE

ANIMAL WELFARE

HEALTH

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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FISCAL YEAR | 2024