Main own plant-based brands
AH own brand includes a variety of products in plant-based milk and plant-based cold meats (Belgium and Netherlands).
- The company derives over 75% of its revenues from food (according to revenues reported in 2017), which increases its exposure to risks and disruptions linked to the animal protein sector.
- Similar to its peers in the retail sector, Ahold demonstrates a growing portfolio of alternative/plant-based proteins and food products. It also demonstrates an increased recognition of the sustainability risks linked to its animal protein portfolio, including through its recent announcement to adopt science-based targets.
- The company’s European brands are further ahead on driving through a transition, including through cross-sector collaborations, pilot programmes, and a larger assortment of alternative products.
- The company doesn’t demonstrate a strategic, company-wide programme to transition its portfolio. It does not have any group-wide metrics that give an indication of its exposure to animal-based foods. Its consumer engagement on the issue is ad-hoc without a clear, explicit link between its healthy eating and sustainability programmes. Further, the company has very few supply chain initiatives to mitigate the negative impacts of sourcing animal proteins.
- We would encourage the company to continue to broaden its sustainability focus on animal proteins as well as build a more strategic plan to transition its product portfolio (through, for example, category-based targets) to ensure their exposure to animal proteins is in line with a low-carbon strategy.
Thank you for your email regarding sustainable protein assessment dated June 6, 2019. As communicated previously, we continue to consider sustainable protein as a topic that is relevant to our stakeholders and to our ambition to be a sustainable retailer.
Ahold Delhaize remains an active member of the Protein Challenge 2040, and our brands continue to innovate in their plant-based assortment. One example is the introduction of the Beyond Burger in 700 Albert Heijn stores at the end of April. We also continue to track customer preferences and trends towards more sustainable and healthier diets, and we expect that to continue going forward.
Last March, Ahold Delhaize announced it had signed up for the Science Based Targets initiative (SBTi) to help set climate targets that are in line with the global need to reduce carbon emissions. As we set out new climate emission targets within the next months, we will examine reduction actions related to refrigeration, energy, transportation, and product supply chains.
Part of the decision-making process towards Ahold Delhaize signing up for the SBTi was an initial analysis of our global supply chain based on sales data and industry average. As a result, we estimate that more than 90% of our scope 3 emissions can be attributed to our supply chain, and that the majority of those emissions are linked to animal-based products. As part of our climate emission target setting process, we aim to sharpen that analysis and develop a supplier engagement program.
We look forward to continue our engagement with you to discuss our ambition to be a sustainable retailer and our work on sustainable protein.