Ahold Delhaize

Ahold Delhaize has conducted TCFD-aligned scenario analysis using a 2°C scenario and includes animal agricultural supply chains and protein diversification in this assessment. The company began this process in 2021 to understand key climate-related risks to its business and continued to update its physical risks assessment in 2023 and transition risks assessment in 2024. The analysis covers meat, fish, and dairy as key areas of climate exposure, and recognises shifting consumer diets as both a transition risk and opportunity. The company is responding to this transition risk by diversifying its product offering to include plant-based meat and dairy alternatives.

Ahold Delhaize does not disclose a breakdown of its Scope 3 emissions derived from animal agriculture at the company level. For its brand, Albert Heijn, the company discloses that meat accounts for 15.6% of emissions, 7.7% are from dairy and chilled juice, and 4.4% from cheese. However, it does not specify the proportion of emissions from dairy, poultry, fish, sliced meats, or other animal protein sources. At the company level, Ahold Delhaize reports its total Scope 3 FLAG-related emissions as 18.51 MtCO2e for 2024, which is calculated to be 95% of the company's total emissions.

The company's 1.5ºC-aligned Scope 3 emissions reduction target in line with FLAG guidance has been validated by the SBTi. The target sets both near-term and long-term goals based on a 2020 baseline. By 2030, the company aims to reduce absolute Scope 3 FLAG emissions by 30.3%, while the long-term target is a minimum of 72% reduction by 2050.

In its 2023 Climate Plan, the company quantifies that transitioning from high-emission protein sources (e.g. red meat) to lower-emission protein sources, including plant-based proteins, could reduce emissions by 1.6 to 4.6 million tonnes CO2e by 2030.

Ahold Delhaize has included a target under its Albert Heijn brand for 60% of total protein product sales to be plant-based by 2030 in its 2023 Climate Plan. In this plan, the company also committed to all European food retail brands setting a plant-based ratio target by 2024. In line with this, as of 2025, all of Ahold Delhaize's European retailers committed to 50% of protein sold being plant-based by 2030.

The company has established a timebound protein diversification target across its European food retail brands, aiming for 50% of protein sales to be plant-based by 2030. Its Albert Heijn brand has set a higher goal to achieve 60% plant-based protein sales by 2030.

Ahold Delhaize's protein diversification targets are limited to the company's European brands and do not cover its entire food business. The US is the company's largest market where none of the company's brands have set a protein diversification target yet.

The company's protein diversification target across its European retailers for 50% of protein sales to be plant-based by 2030 is in line with the Netherlands' National Protein Strategy for a 50:50 plant-based: animal protein split in the Dutch diet for sustainability, food security, and positive health outcomes.

Ahold Delhaize's brand Albert Heijn discloses progress against its plant-based sales target, reaching 44.2% in 2024. The company's interim target was to reach 47% in this reporting year.

Ahold Delhaize's brand Albert Heijn reports annual progress towards its 2030 protein diversification target, with plant-based protein sales reaching 44.2% in 2024, from 44.5% in 2023 and 42.6% in 2022.

Ahold Delhaize offers an annual cash-based incentive scheme for its Management Board, which includes performance measures with 7.5% linked to developing Scope 3 plans for the company's brands. Ahold Delhaize has included protein diversification as a decarbonisation lever within the "assortment of products" part of its 2023 Climate Plan. Therefore, FAIRR interprets that the company's board incentives are also indirectly measured against progress on its protein diversification goals.

Ahold Delhaize has two board members with "proficient knowledge and/or experience given formal education and core responsibilities in previous and/or current roles (other than non-executive roles)" in sustainability and six additional board members that are "well versed and experienced in the topic (including experience gained in non-executive roles)".

The company states that one board member has professional experience in nutrition, having been responsible for the nutrition division of a company in a previous role. Additionally, Ahold Delhaize's Health and Sustainability Committee advises the Supervisory Board on the company's health and sustainability strategy and targets.

Ahold Delhaize reports its position on 23 policy topics, including climate, lower carbon protein and healthier choices, and sustainable agriculture. The company also disclosed a list of its direct lobbying actions with policymakers in its largest European and US markets in 2024.

Ahold Delhaize discloses a list of its lobbying actions in its largest US and European markets, with some actions aligned with positive nutrition outcomes. For example, its US brands made commitments in service of the White House Challenge to End Hunger and Build Healthier Communities, which invested in nutrition education for children. However, it is unclear if the company's lobbying actions with the EU Commission on a well functioning internal market for both the agri-food chain and consumers aligned with positive climate outcomes.

The company discloses a list of 7 industry associations to which it provided support in 2024, such as The Food Industry Association in the US and the Consumer Goods Forum.

It is unclear from Ahold Delhaize's disclosure if it has conducted an assessment on the alignment of its industry associations with positive climate or nutrition outcomes. While it is clear from the names of some of these organisations, such as the Roundtable on Sustainable Palm Oil, that they are aligned with positive climate outcomes, there is not an assessment against climate or nutrition outcomes across all member associations.

Ahold Delhaize has not yet committed to the principles of Just Transition.

Ahold Delhaize has not made a public commitment to retain, reskill, redeploy and/or compensate workers affected by its emissions reduction efforts. However, as part of the company's operational risk assessment, it recognises the need to invest in worker skill development as an important element to its sustainable business growth. Moreover, the company disclosed that its brands are investing in upskilling and reskilling its employees, but it has not provided detail on if this links to the company's emission reduction efforts.

Ahold Delhaize has both pilot and large scale support projects for farmers across its animal protein supply chains to transition to more sustainable practices. However, these are limited to its European operations and do not cover its largest US market. The company continues to support its Albert Heijn brand suppliers to transition to more sustainable practices through its "Better for Nature & Farmer" programme, which includes technical support for regenerative agricultural practices and purchase of commodities at sustainability premiums. As of 2024, 388 dairy, 86 pig, 200 chicken, and 20 egg farmers are participating in the programme. Additionally, Ahold Delhaize has supported Delhaize Serbia and Belgium to implement feed innovations to reduce emissions from pork and chicken producers. While the company has regenerative agriculture pilot projects in the US, these are limited to crop production, and do not support animal agriculture suppliers.

The company does not have a Just Transition strategy.

There is no evidence that Ahold Delhaize is engaging with social actors affected by its emission reduction efforts.

The company does not have a Just Transition strategy and therefore has no associated KPIs.

The company does not have a Just Transition strategy and therefore has no associated KPIs.

Ahold Delhaize launched both own and external brand plant-based products in its largest US and European markets in the past year. These include external brand UNLIMEAT at the Giant Company, JUST Egg Frozen Plant-Based Breakfast Burritos in GIANT Stores, and SHICKEN Plant-Based Indian Meals in Albert Heijn. Additionally, Ahold Delhaize disclosed that it is expanding its own brand products, including plant-based across Central and South East Europe. Its Albert Heijn brand grew its own plant-based AH Terra line from 200 to 250 products since 2023. The company intends to further expand the AH Terra plant-based product range to 350 products in 2025, with more focus on legumes and high protein dairy alternatives to capture market trends.

There is no evidence that Ahold Delhaize has allocated resource to improve the performance of alternative protein products in the past year. Although the Albert Heijn Food Transition Advisory Council discussed potential innovation routes to promote the consumption of plant proteins in 2024, such as hybrid products or active innovation with start-ups, it is unclear if the company has allocated resources to improve the performance of alternative protein products yet.

Ahold Delhaize does not have a minimum health and nutrition requirement for its alternative protein source portfolio aligned with a government-endorsed nutrient profiling system. Although, the company has set a target for 51.7% of its own-brand sales to be defined as healthy by the Guiding Star rating system in the US and Nutri-Score in Europe. The company's Albert Heijn brand annually reports the proportion of own-brand meat substitutes that meet Nutri-score A or B, decreasing from 80.0% in 2023 to 78.5% in 2024, which the company attributes to changes in the Nutri-Score methodology, however, the brand has not set a minimum health and nutrition threshold for products.

Ahold Delhaize evidences reformulation of alternative protein products to improve nutritional attributes. The company reduced the salt content of meat alternatives in its Albert Heijn brand range, such as its tempeh ketjap, plant-based shawarma, crispy chicken schnitzel and meatballs, by 20% on average. Additionally, the brand reduced animal protein content in 15 new blended products to improve their healthiness.

Ahold Delhaize evidences reformulation of alternative protein products to improve sustainability attributes. The company has transitioned many of its vegetarian products to fully plant-based, which can improve the sustainability performance of products, and has launched 15 new blended products that combine meat and dairy with plant-based ingredients to improve their sustainability.

Ahold Delhaize has committed to marketing and merchandising strategies related to alternative proteins in Europe, however, this is not the company’s largest US market. The company's CEO of Europe and Indonesia publicly stated that the company is committed to inspiring more sustainable and healthy lifestyles, while encouraging consumers to choose plant-rich options more often. For example, the company's Albert Heijn brand in Europe has a "Get a taste for it" campaign encouraging consumers to eat more plant-based products. Although the company is expanding its lower carbon ranges in the US, it is unclear if the company is committed to marketing and merchandising alternative protein sources in this largest market.

Ahold Delhaize is marketing and merchandising alternative protein products in its largest US and European markets. The company uses brand level YouTube channels to educate consumers on the benefits of a plant-based diet; promotion of plant-based eating challenges and healthy swap options; plant-based features and recipe inspirations on its websites and in magazines; product carbon footprint information in the Albert Heijn brand app; discounts through loyalty programmes; education outreach at schools; and celebrity chef partnerships. In-store, the company's Albert Heijn brand has created a distinct section for its AH Terra products, emphasising their visibility through strong branding and signage.

Ahold Delhaize is working to ensure its alternative protein source products are accessible and affordable in Europe, however this is not the company’s largest US market. The company uses loyalty programmes, discounts and strategic pricing to attract more flexitarians to choose plant-based options more often. Its Albert Heijn brand's loyalty programme offers a 10% discount on plant-based AH Terra products, with over 25% of the range falling under its affordable "Price Favorite" category. Other European brands provide 15-20% discounts on plant-based products through loyalty programmes in the Czech Republic, Serbia and Romania.

Ahold Delhaize has conducted consumer research investigating trends within the alternative protein sources sector. The company's Albert Heijn brand has identified two key consumer trends which are preventing it from meeting its plant-based sales targets, and disclosed that it is responding to these trends through marketing campaigns, product innovations and pricing strategies to make plant-based products more attractive, visible, affordable and accessible for consumers. The brand found that demand for high protein content is a driver of continued animal protein consumption. Consumers are also looking for familiar choices when shopping, so long-term changes in eating patterns require repetition and multiple positive experiences. These factors contributed to the slower than expected growth in plant-based sales at Albert Heijn this year.

Ahold Delhaize has used consumer research relating to healthy diets to inform its marketing and merchandising strategy, however, it is unclear if this includes alternative protein sources. The company engages with consumers to understand their priorities around health, nutrition and access to healthy, affordable products. These insights are gained through customer service departments, telephone, in-store feedback, email, local brand websites and consumer insight and engagement studies. The company's GoodCook programme conducted workshops in elementary schools to explore the importance of plant-based alternatives, among other health-related topics, with children, reaching 1250 schools, 2500 classes and 60,500 children in total between 2017 and 2024. Although, it is unclear if findings from these workshops informed the company's marketing of alternative protein sources.