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11/29/2022


AHOLD DELHAIZE UPDATES CO2 EMISSIONS REDUCTION TARGET

Retailer’s move in line with UN goal of keeping global warming below 1.5°C
Bridget Goldschmidt
Managing Editor

Image

A year-long review by Ahold Delhaize revealed that the main drivers of scope 3
emission reduction can be divided into three categories: suppliers and farmers,
low-carbon products, and customer engagement.

Ahold Delhaize has revised its interim CO2 emissions reduction target for its
entire value chain (scope 3) to at least 37% by 2030, with the aim of becoming
net-zero by 2050. For its own operations (scope 1 and 2), the retail
conglomerate remains committed to achieving net-zero status by 2040, with an
interim target of a 50% reduction by 2030. Through this updated scope 3 interim
target, Ahold Delhaize intends to decarbonize its entire value chain and ensure
that all of its climate targets are in accordance with the United Nations’ goal
of keeping global warming below 1.5°C.

This updated interim target is in alignment with the Science Based Targets
initiative’s (SBTi) Net-Zero Standard. In accordance with the recommendation by
the initiative, Ahold Delhaize is using its latest available emission profile
from 2020 as the baseline for its 37% 2030 reduction target, updated from an
earlier 2018 baseline. In November 2021, Ahold Delhaize joined the Business
Ambition for 1.5°C, a global coalition of UN agencies, business and industry
leaders, in collaboration with the SBTi and the UN-led campaign Race to Zero.
The latest update is part of the annual climate reporting cycle according to the
Business Ambition agreements. 

While scopes 1 and 2 involve the CO2 emissions of Ahold Delhaize’s own
operations, mainly consisting of energy, refrigeration systems, and owned and
leased transport, scope 3 represents the indirect CO2 emissions across the
entire value chain. This value chain encompasses thousands of suppliers,
producers and farmers that supply hundreds of thousands of products sold to
millions of customers across the United States and Europe daily.

> “As a group of mainstream supermarkets and retailers, we want to provide
> customers with sustainable and healthy products while keeping shelf
> availability and affordability top of mind,” noted Jan Ernst de Groot, chief
> sustainability officer at Ahold Delhaize. “Our commitment is to future
> generations, to continue to play a leading role in the transition to a more
> sustainable food system.”

The updated interim target follows an extensive review, which began in November
2021 with the input of external experts. Ahold Delhaize’s review revealed that
the main drivers of scope 3 emission reduction can be divided into three
categories: suppliers and farmers, low-carbon products, and customer engagement.

A key element of the retailer’s decarbonization efforts is encouraging its
suppliers to set their own emission reduction targets in line with the latest
scientific evidence, and to take part in the SBTi. These commitments aim to
accelerate improvements in livestock farming, raw-material sourcing,
deforestation reduction, processing, food waste reduction, packaging and
transport. Ahold Delhaize’s brands can contribute by supporting their suppliers
and farmers through concrete environmental actions, such as establishing
long-term contracts with farmers.

Several of Ahold Delhaize’s brands continue to add plant-based protein products
to their offerings, thereby improving existing assortments and creating new
assortments with less embedded emissions. For example, the company’s Albert
Heijn banner, in the Netherlands, has committed to achieve a distribution of 60%
plant-based and 40% animal-based protein sales by 2030. All of Ahold Delhaize’s
European brands will commit to baseline their current protein ratio and set
protein ratio targets by the end of 2024.

Ahold Delhaize also strives to help its customers understand the impact of their
buying decisions and make choices that fit their needs, their tastes and their
values. This includes encouraging and rewarding more sustainable choices via
loyalty programs and discounts, boosting product transparency through navigation
systems and product labeling, offering assortments with more vegan and
vegetarian products, and increasing awareness and knowledge about a healthy
lifestyle.

Ahold Delhaize updated climate plan is now available on its corporate website. 

Ahold Delhaize USA, a division of Zaandam, Netherlands-based Ahold Delhaize that
operates more than 2,000 stores across 23 states under the Food Lion, Giant
Food, The Giant Co., Hannaford, and Stop & Shop brands, as well as e-grocer
FreshDirect, is No. 10 on The PG 100, Progressive Grocer’s 2022 list of the top
food and consumables retailers in the United States. 


ALSO WORTH READING


 * AHOLD DELHAIZE LOGS HIGHER Q3 SALES, EARNINGS
   
   Retail conglomerate attributes much of its success to cost savings amid high
   inflation
   


 * THE ASCENDANCY OF AHOLD DELHAIZE
   
   The mega-chain is gaining momentum through omnichannel, private brands and
   sustainability
   


 * AHOLD DELHAIZE NAMES CHIEF SUSTAINABILITY OFFICER
   
   Chief Legal Officer Jan Ernst de Groot also takes on newly created role
   


 * AHOLD DELHAIZE AIMS FOR NET-ZERO CARBON EMISSIONS IN SHORTER TIME
   
   Retail conglomerate commits to goals in line with Science Based Targets
   


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