Progress at Ahold Delhaize’s great local brands 

Ahold Delhaize's great local brands made further progress in their human rights approach. For example, Dutch brand Albert Heijn published a supplier brochure on gender equality and women's rights and the Belgium brand Delhaize committed to a living wage in the banana sector. Romanian brand Mega Image introduced a Mega Ability program to provide job opportunities for people with disabilities. Each of Ahold Delhaize’s U.S. brands were once again independently recognized by the Human Rights Campaign Foundation as a Best Place to Work for LGBTQIA+ Equality.  

Frans Muller, President and CEO of Ahold Delhaize said: “At Ahold Delhaize and its great local brands, people are at the heart of the business. Our associates, the customers and communities we serve, and the relationships we foster with supply chain partners, are paramount. It is our responsibility to support human rights everywhere Ahold Delhaize and our brands do business, even when confronted with global challenges, by conducting our business the right way, every day. By doing so, we believe we can continue to drive positive impact toward a more equitable society that recognizes and respects human rights.” 

Sustainability due diligence 

In 2023, in line with the Corporate Sustainability Reporting Directive (CSRD) and the newly adopted European Corporate Sustainability Due Diligence Directive (CSDDD), Ahold Delhaize decided to broaden its approach from human rights due diligence to sustainability due diligence, encompassing both social and environmental impacts.  Ahold Delhaize also conducted a thorough review of its Standards of Engagement, which are included in the agreements with suppliers, to better align with the broader approach to both social and environmental due diligence. Additionally, the Standards of Engagement include more explicit references to responsible recruitment, which requires that suppliers act with special attention when engaging and recruiting migrant workers, both directly and indirectly. The list of high-risk countries is also updated, in line with the amfori Business Social Compliance Initiative (BSCI).  

Next steps 

As a next step, Ahold Delhaize is setting up global human rights impact assessments focused on the most salient impacts in the supply chain, including forced labor, child labor, and migrant workers in agriculture. These assessments, building upon those initiated by Ahold Delhaize’s Dutch brand Albert Heijn, will be performed by external experts and complement the sustainability risk assessments, social compliance audits and commodity certification programs already in place. They will help us further assess these salient impacts and establish global action plans to address them collectively. More information about Ahold Delhaize's next steps on human rights can be found in the new Roadmap on Human Rights in the 2024 Human Rights Report. We will report our progress in the 2024 Annual Report. 

Reporting on human rights commitments going forward 

The 2024 Human Rights Report will be the last stand-alone report. Ahold Delhaize will continue to demonstrate progress on its Roadmap on Human Rights and report publicly and transparently on its human rights commitments in its Annual Report, in line with the CSRD and, eventually, the CSDDD.

At the EGM, it will be proposed to appoint Claude Sarrailh as member of the Management Board (CEO Ahold Delhaize Europe & Indonesia). The appointment will be for a period of four years, starting October 1, 2024, and ending at the 2028 Annual General Meeting of Shareholders. 

Reflecting on the publication of the Annual Report, Frans Muller, CEO of Ahold Delhaize, said: “The theme of this report is “local matters” – and, in 2023, we proved that once again. Our brands remain intensely focused on our aim to ensure that customers and communities have access to affordable, sustainable and healthy products. And at the same time, we are committed to playing our part as an industry leader to ensure we can build a more sustainable value chain that is healthier for the planet.” 
 

The Annual Report consists of a Strategic Report, Governance and Performance sections, and includes key stories featuring the impact of our local brands. Furthermore, it includes messages from our CEO and CFO, as well as contributions from our Supervisory Board Chair. Within the report, we outline key developments in our Leading Together strategy, emphasizing our growth drivers of e-commerce and digitalization, operational excellence, health and sustainability and talent cultivation.
 

Key highlights from Ahold Delhaize’s Annual Report 2023 

• We met all of our key financial goals for the year. For example, our free cash flow was €2.4 billion, finishing at the higher end of our guidance range, reflecting solid and consistent operating cash flows. Looking at our CapEx, we invested €2.4 billion in areas such as store remodels and Home Shop Centers, including innovations and improvements to support our ESG agenda. And we continued to modernize our infrastructure. 
• In 2023 we significantly exceeded our original Save for Our Customers goal, generating over €1.25 billion in cost savings, which is over €250 million more than we had originally planned. This enabled our brands to keep prices as low as possible for customers. 
• Our brands expanded their high-quality own-brand assortments, optimized loyalty programs and provided a seamless shopping experience both in-store and online. For instance, our European brands expanded customer value through the roll-out of 'Price Favorites' to nearly 7,000 products in 2023. Scaling technology enhanced digital relationships, resulting in 6.9% growth in online sales and 12.1 million loyalty card holders. All our U.S. brands have continued to invest in e-commerce, now operating 1,558 click-and-collect points. They provided 11 billion personalized offers, enriching customer experience. Worldwide, our brands have 18.1 million active monthly app users. 
• In 2023 we made significant progress in the area of health and sustainability. We reached almost 55% of own-brand healthy food sales, further reduced GHG emissions in our own operations by 35% compared to our 2018 baseline, reduced food waste per food sales by 37% compared to our 2016 baseline and reduced virgin plastic in own-brand primary packaging by 10% compared to our 2021 baseline. 
• The report includes several sections related to our role in society, both in the communities we operate in and the impact we have on our more than 400,000 associates. We have included data on such topics as in-kind and cash donations to food banks across our store network, information about pay equity in our brands, and how we’ve increased women representation in our leadership group from 27% end of year 2021 to 33% end of year 2022 and to 37% end of 2023. 
• We expanded our ESG section with more details, including a new overview of the UN Sustainable Development Goals and how we’re striving to help fulfill them. We also added details about our journey to comply with the Corporate Sustainability Reporting Directive (CSRD). 
• Our ambitions to have climate targets in line with 1.5ºC scenario remains unchanged and we updated our scope 3 targets consistent with the latest communication of the Science Based Targets initiative (SBTi), which requires that we make a distinction between GHG emissions related to forest, land and agriculture (FLAG) and non-FLAG GHG emissions, referred to as Energy and Industrial (E&I) GHG emissions. 
• Our approach to ESG was rewarded in 2023 with an AAA rating from MSCI, indicating Ahold Delhaize is an industry leader in managing financially relevant ESG risks and opportunities. 

The Annual Report 2023 can be downloaded here.
 

Looking forward

Although we anticipate a challenging economic environment in 2024, we believe that our brands have significant opportunities to generate new momentum. We will provide more details on our strategic initiatives at our Strategy Day in May.  
 

Convocation for 2024 Annual General Meeting (AGM) of Shareholders

Ahold Delhaize’s 2023 Annual Report will be on the agenda of the Annual General Meeting (AGM) of Shareholders, which will be held on April 10, 2024. The convocation, the agenda (including explanatory notes), and other relevant documentation for the AGM are available here.

At the EGM, it will be proposed to appoint Jolanda Poots-Bijl as member of the Management Board (CFO). The appointment will be for a period of four years, starting October 1, 2023, and ending at the 2027 Annual General Meeting of Shareholders. 

Looking forward

Looking forward to 2023, Ahold Delhaize expects challenging macro-economic conditions to continue. The company remains focused on its omnichannel customer experience to enable customers to shop whenever and wherever they want, and continue to provide affordable and healthy food options. In addition, the company will increase its Capex investments to 2.5 billion euros. This will include investments in digital and online capabilities as well as in initiatives that serve our healthy and sustainable targets. 

Ahold Delhaize’s 2022 Annual Report will be on the agenda of the Annual General Meeting of Shareholders (AGM), which will be held on April 12, 2023. The convocation, the agenda (including explanatory notes), and other relevant documentation for the AGM are available here. 

The 2022 Annual Report is available here.

Cautionary notice

This communication includes forward-looking statements. All statements other than statements of historical facts may be forward-looking statements. Words and expressions such as provides, offer, will, continu(e)/(ing), progress, strategy, in line, commitment, ambitions, aspiration, looking forward, expects, remains or other similar words or expressions are typically used to identify forward-looking statements.

Forward-looking statements are subject to risks, uncertainties and other factors that are difficult to predict and that may cause actual results of Koninklijke Ahold Delhaize N.V. (the “Company”) to differ materially from future results expressed or implied by such forward-looking statements. Such factors include, but are not limited to, the risk factors set forth in the Company’s public filings and other disclosures. Forward-looking statements reflect the current views of the Company’s management and assumptions based on information currently available to the Company’s management. Forward-looking statements speak only as of the date they are made and the Company does not assume any obligation to update such statements, except as required by law.

“We believe transparency brings both accountability and change, and we recognize the important role we play as a local retailer and essential service in our communities,” said Ira Kress, President of Giant Food. “We’re committed to publishing our work and progress as we strive to continue to improve every day and serve as a positive presence and leader for our associates, customers and partners across each of the communities we are privileged to serve.” 

Within the report are details of Giant’s initiatives in serving its customers, associates and communities throughout 2021. Highlights from the report include: 

Better Neighbor 

• 4,600,288 pounds of food donated to communities through Giant’s Feeding America food bank partners 
• $1.25 million donated to the USO of Metropolitan Washington-Baltimore through a combined effort of Giant and its customers to support local service members and their families 
• $2.29 million raised through the Annual Pediatric Cancer Fundraising Program benefitting The Children’s Cancer Foundation and Johns Hopkins Oncology Department 
• $300,000 donated to local organizations working to eliminate race, ethnic, gender, health and economic disparities 
• $2 million pledged through the Giant Family Foundation to communities facing severe economic and health inequalities 
• 900 participants impacted by the growth of the Produce Rx Nutrition Incentive Program, in partnership with DC Greens to provide healthy fruits and veggies 
• 3.9 million plastic bags saved from landfills and 102,400 meals provided to local nonprofits through the Giant Bags4Cause fundraising program 

Better Place to Shop 

• Over 1,100 classes, store tours and community events offered by the Giant Healthy Living team 
• Over 38,000 individuals reached through nutrition education efforts 
• Over 1 million vaccines administered, including COVID-19 vaccines and boosters to community members at 152 Giant Pharmacy locations as well as through mobile vaccine clinics 
• Continued to spotlight 218 diverse suppliers offering over 3,100 products to Giant customers 
• Grew local vendor partnerships to over 200, partnered with more than 50 local farms, to offer over 800 local products and growing 
• Launched a local aisle online at giantfood.com featuring a collection of local offerings including over 70 unique online exclusive items 
• Launched online SNAP benefits allowing customers to pay for grocery delivery or pickup orders with an EBT card 

Better Place to Work 

• Named one of The Washington Post’s Top Places to Work 2021 
• Earned 100% on the Human Rights Campaign’s Corporate Equality Index for the third consecutive year for efforts in LGBTQ+ workplace equality 
• Offered associate engagement in Business Resource Groups including Pride, THRIVE, Giant Veterans, Women’s Inclusive Network, Corporate Council and Young Professionals 
• $130,000 in scholarships and grants awarded to 40 associates 
• #HealthyAtWork program offered to associates led by over 160 Healthy Living Ambassadors 
• Celebrated top performing leadership members and associates through 73 Presidential Awards for Top Values in motion winners, two Top Women in Grocery award recipients and 11 Women of Influencer winners 

For more information, view the full Better Neighbor Report here.  

The meeting was attended by 81 shareholders, representing approximately 650 million shares. The meeting was webcasted live via the Ahold Delhaize website.

Shareholders adopted Ahold Delhaize’s 2021 financial statements and agreed to the proposed 2021 annual dividend of €0.95 per common share for the full year. An amount of €0.43 per common share was paid as interim dividend on September 2, 2021. The remaining amount of €0.52 eurocents per common share shall be payable on April 28, 2022. Shareholders adopted all other proposals on the agenda, including the appointment of Pauline van der Meer Mohr as member of the Supervisory Board and the new remuneration policies of the Management Board and the Supervisory Board.

PwC was re-appointed as the external auditor of the Company for the financial year 2022 and KPMG was appointed for the financial year 2023.

During his speech, Ahold Delhaize CEO Frans Muller said: "I would like to reflect with you on what is happening in today’s society and our company's role in it. Rooted in our local communities, Ahold Delhaize is open to everyone, and we make healthy and sustainable choices easy and affordable to all. We are a financially strong and well-managed company and we are convinced that our strategy provides us with the right way forward."

“When I look back at the past year, I want to mention the hard work of our associates. I greatly appreciate their incredible commitment. They are the face of our company, of the 19 great local brands that make Ahold Delhaize.”

“When we sharpened our objectives during our Investor Day in November last year, we identified four priorities for the next four years that will determine our investment choices. These priorities are our customers, our operations, a sustainable world and our impressive brand portfolio. Further digitalization is the basis for many of these priorities and our investments. By accelerating digital innovation, we drive growth while helping customers to eat well, save time and live better.”

During her speech, Ahold Delhaize CFO Natalie Knight said: “As we close 2021, we are proud of our accomplishments and are in great shape financially and operationally. I would particularly like to thank this audience for your continued engagement with us on a wide variety of topics, and we appreciate and highly value your ongoing input. I am pleased to reiterate our financial guidance for 2022. Looking to the future, I am also pleased to reaffirm the commitments we outlined in detail at our November 2021 Investor Day.”

Cautionary notice  

This communication includes forward-looking statements. All statements other than statements of historical facts may be forward-looking statements. Words and expressions such as shall, 2022, 2023, would, convinced, strategy, right way forward, want, next four years, will, determine, choices, priorities, further, accelerating, innovation, drive, help, continued, ongoing, guidance, looking to the future, reaffirm, commitments or other similar words or expressions are typically used to identify forward-looking statements.  

Forward-looking statements are subject to risks, uncertainties and other factors that are difficult to predict and that may cause actual results of Koninklijke Ahold Delhaize N.V. (the “Company”) to differ materially from future results expressed or implied by such forward-looking statements. Such factors include, but are not limited to, the risk factors set forth in the Company’s public filings and other disclosures. Forward-looking statements reflect the current views of the Company’s management and assumptions based on information currently available to the Company’s management. Forward-looking statements speak only as of the date they are made and the Company does not assume any obligation to update such statements, except as required by law. 

The 2021 Annual Report will be on the agenda of the AGM and is available here.

Cautionary notice

This communication includes forward-looking statements. All statements other than statements of historical facts may be forward-looking statements. Words and expressions such as 2022, will, have, need, commitment, strategy, target, 2040, belief, ambition, by, 2025, long-term, plan(s), growth or other similar words or expressions are typically used to identify forward-looking statements.

Forward-looking statements are subject to risks, uncertainties and other factors that are difficult to predict and that may cause actual results of Koninklijke Ahold Delhaize N.V. (the “Company”) to differ materially from future results expressed or implied by such forward-looking statements. Such factors include, but are not limited to, the risk factors set forth in the Company’s public filings and other disclosures. Forward-looking statements reflect the current views of the Company’s management and assumptions based on information currently available to the Company’s management. Forward-looking statements speak only as of the date they are made and the Company does not assume any obligation to update such statements, except as required by law.

Looking forward

An important milestone for Ahold Delhaize during the year was announcing updates to its long-term strategy “Leading Together” and key medium-term commitments during its Investor Day in November. This growth and investment plan includes a step up in investments in digital, automation and state-of-the-art infrastructure to drive innovation and support Ahold Delhaize’s accelerated growth plans to 2025.

The 2021 Annual Report is available here.

Cautionary notice

This communication includes forward-looking statements. All statements other than statements of historical facts may be forward-looking statements. Words and expressions such as 2022, will, have, need, commitment, strategy, target, 2040, belief, ambition, by, 2025, long-term, plan(s), growth or other similar words or expressions are typically used to identify forward-looking statements.

Forward-looking statements are subject to risks, uncertainties and other factors that are difficult to predict and that may cause actual results of Koninklijke Ahold Delhaize N.V. (the “Company”) to differ materially from future results expressed or implied by such forward-looking statements. Such factors include, but are not limited to, the risk factors set forth in the Company’s public filings and other disclosures. Forward-looking statements reflect the current views of the Company’s management and assumptions based on information currently available to the Company’s management. Forward-looking statements speak only as of the date they are made and the Company does not assume any obligation to update such statements, except as required by law.

 Ahold Delhaize’s 2020 Annual Report will be on the agenda of the Annual General Meeting of Shareholders (AGM), which will be held on April 14, 2021. The convocation, the agenda (including explanatory notes), and other relevant documentation for the AGM are available via this link. 

The 2020 Annual Report is available here. 

The report is based on the UN Guiding Principles Reporting Framework and is the result of a global human rights due diligence process that began in 2018. This due diligence process was designed to increase engagement on human rights – both internally and externally – and to assess current human rights management policies, processes and governance. The Human Rights Report outlines the outcome of this due diligence and provides a roadmap for future actions.

In consultation with internal and external stakeholders, Ahold Delhaize has identified six salient human rights issues that it will focus on as initial priorities, followed by six additional relevant issues. Furthermore, Ahold Delhaize is strengthening its governance to ensure human rights are fully embedded within its strategy and to support the brands as they ensure that the protection of human rights is an integral part of their business activities. Additionally, these issues will be assessed to understand how they are impacting local markets and where action can be taken when needed.

See below an overview of our salient human rights issues:

“2020 is an historic year of unprecedented events arising from the COVID-19 outbreak and the worldwide protests in support of racial justice and equality. These events once again make us realize that, as a global retailer, we play a pivotal role in society. We have a big responsibility to set the right example and help dismantle structures that systematically disadvantage some and advantage others,” said Frans Muller, Chief Executive Officer of Ahold Delhaize. “To this end, I am pleased to see we are making progress in our human rights policies, but we’re not there yet and more work needs to be done. Our commitment to respect human rights and address the many challenges related to that commitment cannot be fulfilled alone. It requires collaboration and partnership both across the food chain and in our communities.”

The company will continue reporting publicly and transparently on its human rights commitments in the Annual Report, to external stakeholders, and against relevant benchmarks, and will eventually issue a sequel to this report to demonstrate progress on the roadmap.

The company welcomes feedback and input on this report and its roadmap. Please send any comments or questions to sustainableretailing@aholddelhaize.com.

Cautionary notice

This communication includes forward-looking statements. All statements other than statements of historical facts may be forward-looking statements. Words such as steps, are taking, increase, priority, future, will, strategy, ensure, action, to set, help,  progress, yet, to be done, commitment, address, continue, commitments, eventually or other similar words or expressions are typically used to identify forward-looking statements.

Forward-looking statements are subject to risks, uncertainties and other factors that are difficult to predict and that may cause actual results of Koninklijke Ahold Delhaize N.V. (the “Company”) to differ materially from future results expressed or implied by such forward-looking statements. Such factors include, but are not limited to the risk factors set forth in the Company’s public filings and other disclosures. Forward-looking statements reflect the current views of the Company’s management and assumptions based on information currently available to the Company’s management. Forward-looking statements speak only as of the date they are made and the Company does not assume any obligation to update such statements, except as required by law.

Ahold Delhaize’s 2019 Annual Report will be on the agenda of the Annual General Meeting of Shareholders (AGM), which will be held on April 8, 2020. The convocation, the agenda (including explanatory notes), and other relevant documentation for the AGM are available via this link.

The 2019 Annual Report is available here.