2020 Environment, Social and Governance Tear Sheet

ENVIRONMENTCentral to our identity is a genuine commitment to environmental sustainability.

From lowering our greenhouse gas emissions to recovering food that can go to those in need instead of the landfill, we care deeply about reducing our resource footprint.

reduction of carbon emissions per square foot from 2019

reduction of refrigeration-related emissions per store over a 2016 baseline

10%

35%

climate

Introduced How2Recycle label to our Sprouts brand products

in $.05 reusable bag credits issued to customers encouraging the use of more than 15 million reusable bags at checkout

of plastic film recycled from customer and in-store use

of our stores do not use single-use plastic bags at checkout

Packaging & Plastics

$800K

MORE THAN

40%

overall landfill diversion rate by repurposing and recycling nearly 78,000 tons of food and recyclables

58%

waste

Food Waste Recovery Rate

68% of food waste recovered, and donated equivalent to 23 million meals

80%

60%

40%

20%

0%2016 2018 2020

Food waste recovery rate

CO2

500+ TONS

Sustainable and Responsible Sourcing

At Sprouts, we’re passionate about bringing responsibly grown and sourced food to our shelves. We commit to educating our customers about not only healthy eating and living, but also

sustainable food practices and their ties to human and environmental health. To do so, we provide information in stores and online about third-party certifications like

Certified Humane, Leaping Bunny, USDA Organic, and Fair Trade.

100% of Sprouts Butcher Shop beef, chicken and pork are raised without antibiotics.

Increased sales of plant-based meat alternatives to nearly 3% of total meat department sales, up 45% since 2019

99% of total eggs sales including liquid eggs are from cage-free, organic, or free-range farms

Committed to improving chicken animal welfare in providing environmental enrichments by 2024, reduced stocking density by 2025, and allow for more humane processing, through CAS (controlled-atmosphere stunning), by 2026.

20% sales increase of products with a sustainable attribute, representing nearly $3.5 billion or more than 50% in sales.

23% of total sales from organic products totaling $1.44M in sales

More than $1B in sales of products with a supply chain social standard such as Fair Trade and Certified Humane

Committed to ensuring 100% of Sprouts brand products containing palm oil will be sourced with a sustainable palm oil certification by the end of 2022

Transitioned 100% of Sprouts Butcher Shop pork supply to be sourced from suppliers that utilize open-pen or group-housed facilities

100% responsibly sourced seafood in our fresh, frozen, shelf-stable, and sushi assortment

 

SOCIAL

The health and well-being of our customers, team members, and the communities in which we operate is our top priority. We work collaboratively with our team members, supply chain partners,

community organizations, and industry experts to promote safe, healthy food and worker rights, source responsibly, and promote the development and inclusion of our staff.

Covered 100% of costs for team member COVID testing

Paid up to 4 hours of paid sick time to team members to receive the vaccine

Paid more than $100 million in team member bonuses

COVID-19 Response

The Sprouts Healthy Communities Foundation awarded $1.6 million in grants and donations to programs supporting youth nutrition education and academic support, and food system equity

Supported an estimated 350,000 students with nutrition programs, taught virtually, during school closures

Sales of products labeled to promote health and nutrition attributes increased 22%, resulting in annual sales of more than $1.2 billion

$2.3 million in revenue from products labeled as non-GMO

More than 10,000 team members trained in food safety

Community

Created 2,500 new jobs

Promoted 21% of team members

Team member population is 51% female and 48% ethnically diverse

Delivered 475,000 hours of in-store training

Team Member Development & Inclusion

Safe and Healthy Food

GOVERNANCE

We pride ourselves on organizing around our values of integrity, accountability, and equity. ESG goals and initiatives are integrated throughout our business, and strong oversight by our

leadership and Board of Directors ensures that the long-term interests of our many stakeholders are factored into our strategy, goals and decision-making.

87% of Sprouts’ board members are independent

25% of Sprouts’ board members are female and 13% are ethnically diverse

Formed a board-level Risk Committee to monitor enterprise risk management program and provide oversight of our risks related to cybersecurity, critical systems, and environmental and social matters among others.

Risk Management

Maintaining our customers’ and team members’ trust by safeguarding their personal data and respecting their privacy decisions is critical to our success. We did not experience any data breaches during 2020 due to our cybersecurity best practices.

Data Privacy and CybersecurityCorporate Governance

Sprouts has also published a table summary that aligns with the Food Retailers & Distributors industry standards of the Sustainability Accounting Standards Board (SASB) on the Investor Relations page of about.sprouts.com.

Visit about.sprouts.com/sustainability to learn more and view the full 2020 ESG Report.