Ahold Delhaize
AD:NA NL0011794037
Key Information
HQ:
Netherlands
Market Cap:
$28.85bn
Primary Markets:
North America, Europe & Russia
Company Information
Company Summary
Ahold Delhaize, through its subsidiaries, operates retail stores that offers food and non-food products in the United States and Europe. The Company manages supermarkets, convenience stores, compact hypers, pick-up points, and gasoline stations, as well as specialty stores which provides health and beauty care products, and wine and liquor.Revenue
Revenue by Geography
Revenue by Segment
Protein Diversification Engagement
Analysis Overview
Climate Strategy - Integration of Protein Diversification Climate Strategy - Governance and Influence Climate Strategy - Adoption of Just Transition Product Portfolio - Resource Allocation Consumer Education - Consistency of Marketing Strategies
Analysis Breakdown
Climate Strategy - Integration of Protein Diversification
Good
Quantify Potential/Opportunity
Partial
TCFD-aligned scenario analysis
Ahold Delhaize has completed TCFD-aligned scenario analysis taking into account both physical and transition hazards under a 2C scenario covering its animal protein product segments, including meat, fish, and dairy. The company also recognized changing consumer preferences towards plant-based products as a transition risk and opportunity to the company
Full
Reporting of Scope 3 emissions from animal agriculture
Ahold Delhaize reports a partial breakdown of its Scope 3 emissions derived from animal agriculture for its brand Albert Heijn and does not report this breakdown at a company level. For its brand Albert Heijn, the company has reported that meat contributes 14.9% and cheese contributes 3.7% of its total Scope 3 emissions. The brand has not reported on what proportion of its emissions are from dairy (excluding cheese), poultry and fish, sliced meats, and "other" animal proteins.
No Evidence
1.5C aligned SBTi Scope 3 FLAG target
The company has submitted and is pending validation for its updated 1.5º C Scope 3 emissions reduction target to the SBTi for approval in alignment with FLAG guidance. It outlines both short-term and long-term goals for reducing absolute scope 3 from the 2020 baseline. In the near term, the target is to decrease emissions by 30.3% by 2030. In the long term, the company aims to achieve at least a 72% reduction by 2050.
Limited
Quantifying the opportunity of protein diversification
Ahold Delhaize has quantified that by transitioning to lower emitting protein sources including plant-based proteins the company can reduce its emissions by 1.6 - 4.6 million tCO2e by 2030.
Full
Protein Diversification Strategy
Partial
Integrating protein diversification into climate transition plans
The company mentions in its Climate Plan 2023, that it has a protein ratio sales target for its brand Albert Heijn. The brand has committed to sell a 60/40 plant-based/animal protein sales split by 2030. The company has stated that all its European brands will commit to protein ratio sales target by the end of 2024. Additionally the company's brand Delhaize Belgium has the ambition to double its plant-based range by 2025, however, this target is not mentioned in the company's climate transition plan
Full
Protein diversification target is timebound
The target is timebound to 2030.
Full
Business coverage of protein diversification target
Ahold Delhaize's protein diversification target currently only covers is Dutch brand Albert Heijn and Belgium brand Delhaize. The company plans set a protein diversification target across the remainder of its European brands by the end of 2024
Limited
Alignment of target with climate and health guidelines
There is no evidence the target is aligned with national or global health guidelines for dietary transition.
No Evidence
Measuring Progress
Lead
Disclosing progress against protein diversification target
Ahold Delhaize's brand Albert Heijn has disclosed progress towards its 2030 protein diversification sales split target of 40% animal protein and 60% plant-based protein annually. Albert Heijn's progress towards this target is currently 57.4% sales in animal protein and 42.6% sales in plant-based protein as of 2022.
Full
Annual reporting of progress of protein diversification target
Ahold Delhaize's brand Albert Heijn has disclosed progress towards its 2030 protein diversification sales split target of 40% animal protein and 60% plant-based protein annually. Albert Heijn's progress towards this target is currently 57.4% sales in animal protein and 42.6% sales in plant-based protein as of 2022. In 2021 the company's sales split was 70% animal protein, 30% plant-based protein.
Full
Climate Strategy - Governance and Influence
Good
Board Oversight
Good
Board support for protein diversification
Ahold Delhaize's board has endorsed the company's commitments to be net zero across its entire value chain. Ahold Delhaize has publicly stated that protein diversification is a key part of the company's route to net zero. Ahold Delhaize has not reported board oversight towards its progress towards its protein diversification target.
Limited
Climate expertise of board
Six board members of Ahold Delhaize have expertise related to sustainability. The company also has a sustainability and health committee that provides advice to the supervisory board on the company's sustainability and health strategy.
Full
Nutrition/health expertise of board
The company discloses that its board member, Katie Doyle, has professional experience in nutrition. Additionally, Ahold Delhaize has a Health and Sustainability Committee which advises the supervisory board on the company's health and sustainability strategy and targets
Full
Advocacy
Good
Disclosing a list of direct lobbying actions
Ahold Delhaize has disclosed lobbying on 5 different topics in both the EU and the US.
Full
Direct lobbying in line with climate and nutrition
Ahold Delhaize has disclosed climate lobbying towards creating sustainable agricultural supply chains in the EU and the EU Nature Restoration Regulation. The company has disclosed lobbying on nutrition by advocating for the Nutri-Score to implemented across the EU.
Full
Disclosing a list of indirect lobbying actions
The company discloses a full list of company affiliations with associations and other organizations to which it provides support.
Full
Indirect lobbying in line with climate and nutrition
Ahold Delhaize has disclosed a high level statement that the company address the challenges of climate and health through its engagement with industry associations. While it is clear by the names of some of these organisations that they are aligned with climate. It is unclear which organisations are aligned with nutrition outcomes.
Limited
Climate Strategy - Adoption of Just Transition
DNF
Just Transition Commitments
Low
Public commitment to Just Transition principles
The company has not committed to Just Transition principles.
No Evidence
Commitment to support workers
Ahold Delhaize has provided a high-level statement that as part of its Grounded in Goodness strategy, the company is focusing on the impact of its own operations, however, the company has not disclosed if this will result in the retaining, reskilling, redeploying and/or compensating its workers affected by its decarbonisation efforts.
No Evidence
Commitment to support stakeholders
Ahold Delhaize brand Albert Heijn's Better for Nature and Farmers program is supporting its Dutch animal protein suppliers decarbonise. The company has supported 450 dairy farmers, 100 pig farmers, and 200 poultry farmers in the Netherlands. The company is supporting initiatives that will help farmers decarbonise in the US through its financial contributions to the Rodale Institute and by launching its Climate Hub, however, it is unclear the extent this covers its animal protein producers in its largest markets.
Limited
Just Transition Strategy
DNF
Public Just Transition strategy
The company does not have a just transition strategy related to protein diversification.
No Evidence
Consulting social actors in Just Transition strategy development
There is no evidence for this KPI.
No Evidence
Just Transition KPI
DNF
Disclosing Just Transition KPIs
There is no evidence for this KPI.
No Evidence
Reporting against Just Transition KPIs annually
There is no evidence for this KPI.
No Evidence
Product Portfolio - Resource Allocation
Partial
Portfolio Diversification
Good
Dedicating resources to expanding alternative protein offering
Ahold Delhaize has disclosed evidence of resource allocation to expanding its alternative protein source portfolio by launching 200 plant-based products under the line AH Terra for its Dutch Brand Albert Heijn and has launched the external brand product, Beyond Steak in 250 stores for its Belgium Brand Delhaize.
Limited
Annual evidence of resource allocation
Ahold Delhaize's brand, Albert Heijn, has launched a total of 200 plant-based products including 58 new products in 2023.
Full
Improving Nutrition and Sustainability Attributes
Low
Dedicating resources to improve the nutrition and sustainability of products
Ahold Delhaize has mentioned it is working to improve the nutrition and sustainability of its products, however, it is unclear how these claims have resulted in resource allocation towards alternative protein sources. Under the Grounded in Goodness strategy the company has provided high-level statements that the company is working to reduce emissions in its product lines and is using innovation to make products more nutritious but has not provided detail on what this looks like for its alternative protein source products. The company has also stated it is working to reduce the emissions of its products by transitioning from red meat to lower emissions proteins such as white meat or plant-based alternatives but did not disclose how it has been working to do this. Finally, Ahold Delhaize has committed that 52.4% of its own-brand sales will be healthy by 2025 and is using the Nutri-Score, Choices criteria and Guiding Star rating as its definition of healthy, however, the company has not disclosed how its is working to ensure its plant-based portfolio contributes to these healthy sales.
No Evidence
Reformulating products to improve nutrition
Ahold Delhaize has not provided evidence or a statement about how the company is (re)formulating plant-based products to improve their nutrition attributes. The company instead has stated that it has removed 117 million sugar cubes, 52 thousand kg of salt, and 282 thousand kg of saturated fats from its products, within its general portfolio. As of 2023, Albert Heijn launched 20 new healthy items and revamped 30 products with increased fiber and reduced salt and fat. However, it is unclear whether the company's reformulated products include plant-based or alternative products.
No Evidence
Reformulating products to improve sustainability
Ahold Delhaize has provided high-level statement that the company is improving the sustainability attributes of its product portfolio by formulating plant-based products in place of high emission protein sources such as red meat.
Limited
Consumer Education - Consistency of Marketing Strategies
Good
Commitment Across Geographies/Brands
Lead
Commitment to marketing alternative protein sources
Alhold Delhaize brand Albert Heijn has committed to inspiring and motivating consumers to eat more plant-based food. The brand is promoting this type of consumption through its online shop, price promotions and on-the-pack recipe recommendations. At the company level Ahold Delhaize's Grounded in Goodness strategy commits to using marketing, reward programs and store design to ensure the uptake of sustainable and healthy diets.
Full
Business coverage of marketing commitment
Ahold Delhaize has provided evidence of the promotion of plant-based products in the US and Europe which are the the company's two largest markets. This evidence includes the companies Dutch brand Albert Heijn, Belgium brand Delhaize Belgium, and US brand Giant Food. The company has provided discounts, reward programs, pairing products with recipes, product availability, product visibility, re-branding products so they stand out, favourable places in stores (both online and in-person), and ensuring products are affordable.
Full
Nutrition and Sustainabilty
Lead
Promoting the nutritional attributes of alternative protein sources
Ahold Delhaize has demonstrated evidence of promoting the nutritional attributes of its alternative protein sources in both its US and EU markets. Online the company's brands Stop & Shop and Alfa Beta have a specific sections of their websites dedicated to healthy plant-based foods labelled as "Better-for-You" and the "Healthy Corner". For the company's brand Delhazie Belgium and Albert Heijn the company is inspiring consumers with free plant-based recipes which have been assessed against Nutriscore. Additionally, Albert Heijn has deployed a lifestyle mobile application supporting consumers adopt and health affordable vegan lifestyle. Ahold Delhaize has disclosed that it is using Nutriscore in Europe and Guiding Star in the US as front-of-pack nutritional labels to sign post consumers to healthier food choices. However, the company has not disclosed how many plant-based products the nutritional labels are currently covering.
Full
Promoting the sustainability attributes of alternative protein sources
Ahold Delhaize has provided a high-level statement that it is conducting different promotional programs around low-carbon products and that it is using sustainability labels for its own brand products, however, it is unclear the extent these efforts cover the company's alternative protein source products. These low carbon promotional programs are being implemented by Albert Heijn and Delhaize le Lion. The company's brand Giant Food has implemented HowGood as its ESG rating system but has not disclosed if this includes alternative protein sources. Ahold Delhaize brand Albert Heijn has implemented an emission label for its own brand products in the chicken, pork, eggs, salmon and vegetables categories and has not specified if it covers plant-based proteins.
Full
Consumer Research
Partial
Conducting consumer research on alternative protein sources
Ahold Delhaize brand Albert Heijn has disclosed that the company is conducting research into the taste and texture of alternative protein sources to ensure that these products meet consumer demand
Full
Conducting consumer research on healthy diets
Ahold Delhaize mentions that it engages with customers through surveys, studies, and focus groups to support them in making low-emission choices. However, the company does not perform any consumer research or surveys related to healthy diets.
No Evidence
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Workstream Information
Business Type:
Retailer
Company Feedback Given:
Yes
Last Updated:
8 July 2024
2024 Resources
Phase 2 | Investor Briefing Protein Diversification Phase 1 Progress Report Protein Diversification Engagement