Ahold Delhaize allocates proceeds of its green bond to sustainability efforts

Dive Brief:

Ahold Delhaize announced Friday that it has allocated the full proceeds of its green bond to investments in projects aimed at reducing the company’s greenhouse gas emissions and climate impact.
The grocery company said it allotted the largest portion of the proceeds to green buildings and energy efficiencies.
Last year, the Dutch grocer raised 500 million euros ($535 million) by issuing a green bond under its updated green finance framework.

Dive Insight:

Throughout 2022 and 2023, the bond proceeds enabled Ahold Delhaize to add six distribution centers and 51 stores with EPC Label A, an energy performance label, to its footprint. The grocer’s newest Albert Heijn’s store, for example, has a fully gas-free infrastructure, more than 5,400 solar panels and energy-efficient solutions, according to the press release.

Energy-efficiency measures Ahold Delhaize is implementing across its brands include installing heat pump systems, LED lighting and energy-efficient doors on refrigerated cases in its stores and distribution centers. The grocery company is also working towards replacing refrigerants with lower global warming potential alternatives.

“Building on the success of our first Sustainability Bond issuance in 2019 and our 2021 Sustainability-Linked Bond issuance, our inaugural Green Bond reinforced our commitment to sustainable finance. It aligns with Ahold Delhaize’s Healthy & Sustainable strategy and funds our climate transition,” Miguel Silva Gonzalez, senior vice president and treasurer at Ahold Delhaize, said in a statement.

On Dec. 31, 2023, Ahold Delhaize had a total eligible green project portfolio of 580 million euros (more than $621 million) with 86% of the portfolio allocated to the green bond proceeds.

Sustainability is a cornerstone of the grocery company, which is updating its green efforts both in the U.S. and across its European store banners. Earlier this month, Ahold Delhaize and four other global grocery companies established a collaborative venture capital fund called W23 tha twill look to invest in start-ups and scale-ups to assist grocers in a number of ways, including addressing sustainability challenges.