Ahold CEO cites progress on sustainability, employment

Ahold Delhaize has made “good strides” in its efforts to reduce food waste and its use of plastics in the U.S., Frans Muller, CEO of Ahold Delhaize, told SN.

The efforts are part of a broader effort around sustainability that includes a goal of having net zero CO2 emissions by 2040 for its overall operation.

“There are a lot of things that not only my generation, but also the younger generation, feel are very important for a company of our size and quality,” said Muller. “It’s important that we invest in sustainability, that we drive down food waste, and that we drive down plastic waste.”

The company last year updated its interim CO2 emissions-reduction targets for its entire value chain (known as scope 3) to at least a 37% reduction by 2030.

In the company’s own operations, Ahold achieved reductions in CO2 emissions of 32% in 2022 vs. its 2018 baseline, and tons of food waste per food sales of 33% against its 2016 baseline. Both represented improvements over its 2021 reductions, Muller said.

The main drivers of Ahold’s scope 3 emissions reduction fall under three categories: suppliers and farmers, low-carbon products, and customer engagement. The company is encouraging its suppliers to set their own emissions-reduction targets in line with the latest scientific evidence, and to join the Science Based Targets initiative.

“We are proactively engaging with our supplier base and are leveraging our position in the world of food retail to create a positive movement towards the reduction of greenhouse gas emissions,” Muller said.

Focusing on sustainability is not only important to consumers, but it is also an important factor in the company’s efforts to be an attractive employer, he said.

“In a company like ours with 410,000 associates, it is important for associates here to feel that they work for the right company, that they can unfold their own potential, that we recognize they can be themselves,” said Muller.

He said that in Europe, the labor market is currently more favorable, and the company considers itself to be fully staffed. In the U.S., where the company operates the Food Lion, Hannaford, Stop & Shop and Giant banners, as well as the Peapod ecommerce business, the labor market remains more challenging.

“It's still a very tense labor market, and we are seeing higher [employee turnover],” Muller said.

This results in higher costs and reduced productivity and engagement, he said.

“It’s still a difficult labor market, but we can attract people with our proposition, whether it's wages and benefits, and the culture of the company and the working environment and the safety of our people,” he said. “It’s a tense market, but we'll get through it; I think we are well-positioned.