Climate Change Data

Environmental Metrics

ESG Focus Areas

• Healthy Living
• Community Well-being
• Our People
• Responsible Products
• Care for the Environment

Environmental Achievements

• Reduced the carbon footprint of operations by 25.8% against the 2008 baseline.
• Reduced the amount of disposable bags at checkout in the U.S. by 853 million since 2011.
• Diverted 88% of total waste from landfills in the U.S.

Social Achievements

• Reached over 946,000 children with healthy living programs.
• Generated over €68 million in donations to food-related and charitable causes.
• Donated over $10 million worth of protein-rich food via the “Meat the Need” program.

Governance Achievements

• Implemented a whistleblower line, receiving 2291 calls in 2015.
• 96% of own-brand food suppliers in Europe and 93% in the U.S. were GFSI-certified.
• 88% of European and 70% of U.S. suppliers in high-risk countries were audited on social compliance.

Climate Goals & Targets

Environmental Challenges

• Balancing customer preferences for healthy products with factors like price and time constraints.
• Ensuring supply chain transparency and responsible sourcing of products.
• Addressing food security and access to nutritious food for all.
• Managing food waste.
• Maintaining diversity and equality in the workforce.

Mitigation Strategies

• Gradually reducing sugar and salt content in products.
• Enhancing nutritional labeling and obtaining insight into product origins.
• Increasing procurement efficiency and reducing food waste.
• Implementing diversity and inclusion initiatives.
• Working with suppliers to improve sustainability and social compliance.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• GFSI-recognized standards for food suppliers
• Social compliance audits in high-risk countries
• Sustainable sourcing of critical commodities (coffee, tea, cocoa, palm oil, soy, seafood)

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI G4.0 Sustainability Reporting Guidelines

Certifications: LEED

Third-party Assurance: PricewaterhouseCoopers Accountants N.V. (PwC)

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• New AH chicken
• AH Biologisch organic line

Awards & Recognition

• Dow Jones Sustainability Index score of 76
• RobecoSAM Silver Class rating
• 1st retailer in Dutch Transparency benchmark
• Green Power Leadership Award from EPA

Environmental Metrics

ESG Focus Areas

• Promote healthier eating
• Reduce food waste
• Create a healthy and inclusive workplace

Environmental Achievements

• Reduced CO2 equivalent emissions per m2 of sales area by 22% from 2008 baseline
• Increased percentage of waste recycled to 72%

Social Achievements

• Launched various healthy living programs across all markets
• Supported diversity and inclusion programs

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Data limitations due to merger and changes in definitions and reporting processes
• Manual data collection processes prone to error

Mitigation Strategies

• Prioritized creating a full year, consolidated 2016 baseline for target setting
• Aligned definitions across all companies
• High priority for full reporting on all KPIs by all brands in 2017

Supply Chain Management

Supplier Audits: 49% of production units of private label products in high-risk countries audited

Responsible Procurement

• Product safety certifications from suppliers
• BSCI audit reports or equivalent from suppliers in high-risk countries
• Sustainability standards for seven commodities (tea, coffee, cocoa, seafood, palm oil, soy, and wood fibers)

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI G4 Guidelines (core option), UN Global Compact

Certifications: Null

Third-party Assurance: PwC (limited assurance with one qualification)

UN Sustainable Development Goals

• SDG 12.3 (Reduce food waste)

Initiatives to reduce food waste in operations and increase recycling

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Eliminating hunger
• Healing our planet
• Changing children's lives
• Diversity, Equity, and Inclusion

Environmental Achievements

• 118,823,086 lbs of cardboard recycled
• 6,763,743 lbs of plastic film recycled
• 850,668 lbs of food rescued via Flashfood
• Avoided more than 100,000 metric tons of Scope 2 carbon emissions through renewable energy agreement
• +100K trees planted since 2018
• 80% less water, 90% less land and 95% less shipping fuel used by BrightFarms compared to long-distance field grown produce

Social Achievements

• $18.2 million donated in total for hunger relief
• $3.3 million raised to feed kids in 169 school districts
• 200,000+ COVID-19 vaccinations provided
• 287 car seat inspections
• Over $20 million contributed to Children's Hospital of Philadelphia since 2001
• 475,000 students impacted by Feeding School Kids initiative
• 300 dietitian classes offered with 25,676 attendees
• 7,500 lbs of food donated through Stuff-A-Truck events
• 1,044 volunteer hours logged

Governance Achievements

• Received a score of 100 on the Human Rights Campaign Foundation’s 2022 Corporate Equality Index for four consecutive years
• 171 diverse-owned suppliers utilized
• 9 diverse-owned suppliers certified through the GIANT/EMSDC Partnership

Climate Goals & Targets

Environmental Challenges

• Hunger in the communities served
• Childhood illness
• Environmental impact of food production and distribution
• Food waste

Mitigation Strategies

• Donations to food banks and pantries
• Partnerships with organizations addressing childhood illness
• Support for regenerative agriculture and local growers
• Flashfood program to reduce food waste
• Renewable energy initiatives
• Recycling programs

Supply Chain Management

Responsible Procurement

• Partnership with diverse-owned suppliers

Climate-Related Risks & Opportunities

UN Sustainable Development Goals

• 9 of the 17 UN Sustainable Development Goals (SDGs)

Awards & Recognition

• Progressive Grocer Social Impact Award
• Civic 50 Award
• Faces of Philanthropy Award
• FMI Gold Plate Award
• Shelby DEI Award
• Urban League Community Service Award
• Penn State Corporate Partner of the Year Award

Environmental Metrics

ESG Focus Areas

• Human Rights

Environmental Achievements

• Commitment to reach net-zero carbon emissions across own operations by 2040 (scope 1 and 2) and achieve net-zero emissions across the entire supply chain, products and services no later than 2050 (scope 3).

Social Achievements

• Increased the proportion of women in management positions from 39% in 2020 to 40% in 2021.
• Launched several initiatives to improve associate mental health and well-being.
• Donated more than €1.5 million worth of cash and in-kind support to humanitarian relief efforts in Ukraine.
• Food Lion Feeds donated 152 million meals in 2021.

Governance Achievements

• Updated the Code of Ethics and Position on Human Rights.
• Introduced a Human Rights Quarterly newsletter.

Climate Goals & Targets

Environmental Challenges

• Global pandemic, war, rising inequality, and the impacts of climate change.
• Forced labor and child labor in supply chains.
• Discrimination and harassment in the workplace.
• Ensuring access to grievance mechanisms for supply chain workers.

Mitigation Strategies

• Developed a methodology to help each brand assess human rights impacts.
• Implemented social compliance programs and commodity certifications.
• Established a Speak Up Line for reporting concerns.
• Collaborated with industry organizations and NGOs to address supply chain issues.
• Developed programs to support diversity and inclusion, health and safety, and sustainability.

Supply Chain Management

Supplier Audits: 73% of own-brand production locations in high-risk countries audited in 2021.

Responsible Procurement

• Standards of Engagement requiring compliance with applicable laws and amfori BSCI Code of Conduct.
• Commodity certifications (Fairtrade, Rainforest Alliance, RSPO, etc.).

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI, UN Guiding Principles on Business and Human Rights

Awards & Recognition

• Leader in Children’s Rights in Global Child Forum’s 2021 benchmark
• Perfect scores on the Human Rights Campaign Foundation’s 2022 Corporate Equality Index for US brands

Environmental Metrics

ESG Focus Areas

• Climate Change

Environmental Achievements

• Reduced absolute scope 1 and 2 carbon dioxide equivalent emissions by 32% compared to the 2018 baseline.
• Reduced food waste by 33% compared to the 2016 baseline.
• Increased ratio of zero-emission electricity consumed and more efficient and environmentally friendly refrigeration systems.

Social Achievements

• Increased own-brand healthy sales by 7.4 percentage points since 2018.
• Published inaugural human rights due diligence report (and a second in 2022).

Governance Achievements

• MSCI ESG Rating upgraded from AA to AAA.
• Issued €500 million Green Bond.
• Issued first Sustainability Bond (€600 million).
• Increased the weight of ESG factors in short-and long-term incentive programs from 20% in 2021 to 25% in 2022.
• Raised the weighting of ESG factors in the Global Reward Opportunity (GRO) long-term share-based incentive plan from 15% to 25%.

Climate Goals & Targets

Environmental Challenges

• Decarbonizing the value chain is a long-term ambition requiring collaboration.
• Challenges in infrastructure readiness for electrified fleets and equipment in the U.S.
• Need to evaluate fleet electrification viability in Europe on a country-by-country basis.
• Obtaining accurate scope 3 data is a challenge.
• Resource-intensive reporting process for suppliers.
• Barriers to value chain decarbonization due to inaction by industry bodies in some regions.
• Addressing the behavior action gap (consumers wanting to buy but not actually buying low-carbon products).
• Communicating the intricacies of scope 3 initiatives through on-pack labels.
• Balancing economic constraints and environmental goals amidst market inflation.

Mitigation Strategies

• Collaboration across the industry (e.g., Consumer Goods Forum).
• Investing in renewable energy initiatives (solar panels, PPAs, RECs).
• Transitioning to natural and low-GWP refrigerants.
• Implementing energy efficiency measures (LED lights, improved insulation).
• Engaging suppliers to set science-based targets and implement sustainable practices.
• Developing a lower emission assortment.
• Encouraging customers to choose lower emission products.
• Exploring carbon removal strategies for residual emissions (nature-based and technological solutions).

Supply Chain Management

Responsible Procurement

• Engaging suppliers to set science-based targets
• Working with globally recognized schemes (RSPO, RTRS, Rainforest Alliance)

Climate-Related Risks & Opportunities

Physical Risks

• Impact of agricultural yield on revenue and gross margin
• Increasing energy costs
• Changing customer diets

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: GHG Protocol, SBTi, TCFD

Sustainable Products & Innovation

• Albert Heijn Terra vegan assortment

Awards & Recognition

• Two awards from the U.S. Environmental Protection Agency for Food Lion's refrigerant transition