2024 Natural Grocers Sustainability Report

PLANET

NUTRITION EDUCATION

QUALITY

ALWAYS AFFORDABLE PRICING SM

COMMUNITY

CREW

PEOPLE

ANIMAL WELFARE

HEALTH

Waste and Recycling

We are focused on opportunities for waste avoidance and diversion in order to increase the environmental sustainability of our operational activities. IN OUR STORES: Avoidance: IN OUR BULK PACKAGING FACILITY AND DISTRIBUTION CENTER: Avoidance:

We significantly reduce food waste compared to conventional grocers by not offering self-service bulk bins, deli counter, meat counter, seafood counter, or salad bar. We have automated the ordering process for most departments, which reduces over ordering and waste. We have technology that streamlines temperature tracking for all coolers in our stores. Each store partners with local food banks to donate products regularly. In FY24 we donated more than $4 million of in-kind food and product. We practice recycling, composting, and cardboard upcycling to divert waste from landfills, including recycling shipping pallets and the plastic used to wrap them. We partner with the How2Recycle organization to educate consumers on recycling strategies and how to minimize recycle bin contamination.

Corrugated boxes used in bulk packaging contain 48% recycled content and are recyclable. Automated production processes incorporate postconsumer recycled (PCR) film that is made from 40% recycled material. Through process changes and automation, our bulk packaging facility and distribution center reduced plastic stretch wrap use by approximately 50% compared to the prior system. Our bulk facility’s closed production loop utilizes engineered wood pallets made from recycled wood that are reused within the facility, contributing both operational and environmental benefits.

Diversion:

CO 2 REFRIGERANT TECHNOLOGY CO 2 refrigerant technology is designed to save energy and provide enhanced environmental protection compared to conventional refrigeration technologies. The CO 2 refrigerant has an Ozone Depletion Potential of 0 and a Global Warming Potential of 1, which is far less than those of the more common refrigerants CFCs and HCFCs. In 2024, we installed a CO 2 refrigeration system in a third store. Though more expensive and complex to install than traditional systems, CO 2 refrigerant technology is just one more way our company prioritizes the health of our communities and our planet. WATER Many areas in which we operate are water-constrained, and therefore we are mindful of our usage. Our unique product offering reduces our water consumption compared to conventional grocers that offer deli, meat, and seafood counters, as well as salad bars. We also utilize water-saving equipment and landscaping in our store designs. We believe that our rigorous product standards are more supportive of water systems. For example, land farmed regeneratively improves soil quality, including water retention. In contrast, conventional agriculture can generate water pollution from chemicals, pathogens, and antibiotics; they release high levels of phosphorous and nitrogen that lead to destructive algae blooms in waterways. For more information about the benefits of regenerative farming on water: Agriculture and Water - How We Farm Makes a Substantial Difference

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FISCAL YEAR | 2024