Sprouts Farmers Market : 2024 ESG Report

IMPACTFUL PRODUCTS

HEALTH & WELLNESS	can find	SPROUTS BRAND & INNOVATION
are healthier for the planet and people. Our stores are stocked with a wide variety of organically grown,
non-GMO, and plant-based options that lower the environmental$1.3B in salesimpactof Sproutsf heBrandfoodproductsc nsumed.
19% of total sales from healthy fruits and vegetables
$2.3B in sales from products with a health or nutrition	740 new and differentiated items launched through
attribute		our in-store innovation center

RESPONSIBLE SOURCING

$3.3B in sales of products with a social or environmental attribute

27% of total sales from organic products

22% increase in less carbon intensive plant-based product sales

$225M in local produce sales from a network of 170 farmers

100% cage-free or better eggs, with 67% from free- range or pasture-raised farms

100% responsibly sourced seafood

180+ Fair Trade products

Wholesum Family Farms, the first Fair Trade Certified farm in the
United States, provides Sprouts with tomatoes and other vegetables
that are sustainably grown and support impactful community projects.	1

THRIVING PLANET

ZERO WASTE & CIRCULARITY

our carbon footprint and our natural resource intake while providing our customers with local, organic, and other

70% sustainable food choices.We are diverting food from130Mlandfillssingleand -providinguseplasticit bagsto thoseavoidedin needthrough. landfill diversion rate

commitment to remove single-use grocery bags

70M pounds of food recovered through donation,

animal feed, and composting programs	8.2M meat trays transitioned from polystyrene to
recyclable PET
1.4M pounds of soft-plastic bags and film recycled

CARBON EMISSIONS

25% per square foot carbon emissions intensity reduction target in our operations by 2033

10 locations transitioned to lower-GWP refrigerants

<10% of our total emissions are from Scope 1 & 2 sources

Our Rescued Organics program reduces food waste and supports local farmers by bringing to market imperfect organic produce that would otherwise be discarded due to imperfections that do not affect quality.

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PURPOSEFUL PEOPLE

GROWING A WINNING TEAM

3,000 new jobs created

64% of store manager positions filled by internal candidates

17,000 leadership training hours delivered

LOVE BEING DIFFERENT

75% of promotions were from female and/or racially/ethnically diverse team members

33 participants of McKinsey's Connected Leaders Academy, a program designed to make progress on inclusion and equity, and improve diverse bench strength

PAY & BENEFITS

$19.68/HR average pay rate for store team members

$21M in bonuses paid to field team members

$21M in savings for team members with store discount

SAFE WORK ENVIRONMENT

61,000 safety training hours completed

5,400 safety inspections completed

36% reduction in workers' safety claims over 2019 baseline year

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HEALTHY COMMUNITIES

SPROUTS HEALTHY COMMUNITIES FOUNDATION

3M kids participated in Sprouts Healthy Communities Foundation nutrition education programs

$20M awarded to local nonprofit partners in communities Sprouts operates since 2015

5,500 service hours donated by Sprouts team members

65 volunteer events completed across Sprouts communities

Students incorporate nutrition curriculum into outdoor garden supported by Sprouts Healthy Communities Foundation

FOOD SECURITY

37M pounds of food donated
29M meals donated
47% of total food donations was fresh and healthy produce
479,000 Grab & Give bags pre-filled with pantry staples or body care essentials donated
to those in need	4

RESPONSIBLE BUSINESS

ESG LEADERSHIP & OVERSIGHT

Board and committee oversight of ESG matters

Risk Committee oversees our risk management program, including risks related to cybersecurity and ESG actions

Annual outreach to largest shareholders to discuss ESG matters

DATA PRIVACY & CYBERSECURITY

Respecting privacy and safeguarding the personal information of our customers and team members is crucial to our success. During 2023, no cybersecurity incidents had, either individually or in the aggregate, a material adverse effect on our business, financial condition, or results of operations.

BOARD COMPOSITION & INDEPENDENCE

88% of board members are independent

38% female or racially/ethnically diverse

Our Board of Directors outside our Philadelphia store on Broad Street.

ETHICAL BUSINESS

Our Code of Conduct and Ethics guides our Board and team members in the ethical and responsible operation of our business.

Our Commitment to Human Rights sets forth our commitment to respect internationally recognized human rights and aspirations to align with United Nations Principles on Business and Human Rights (UNGPs).

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