2012 Sustainability progress report WWW.DELHAIZEGROUP.COM TABLE OF CONTENTS
APPROACH CASE STUDIES
3 CEO & Chairman Interview 69 Sustainable Private Brands 5 2012 Highlights 69 Sustainable Seafood 7 The Big Picture 72 Palm Oil 9 Our Materials Issues 74 Zero Waste 11 Our Strategy 77 Healthy Lifestyles 15 Sustainability Governance 81 Associate Diversity & Management 84 Everyday Practices 17 Our Stakeholders 84 Food Donations 19 Compliance & Ethics 86 Natural Refrigerants 20 Our Sustainability Timeline 88 Commuting
PERFORMANCE ABOUT OUR REPORT
26 Sustainable Private Brands 91 About our Report 26 Introduction 93 Our Performance Against Goals 30 Health 95 Our 2012 Data Table and 33 Environmental Methodology 36 Social 102 External Assurance Statement 39 Zero Waste 106 GRI Cross-Reference Table 39 Introduction 112 CDP - Carbon Disclosure Project 41 Reducing, Reusing, Recycling Report 44 Food Waste 113 Sustainable Seafood Brochures 45 Healthy Lifestyles 114 List of Awards We Won for Achievements in 2012 45 Introduction 118 Our Banners’ Sustainability 47 Associates Web Pages 48 Customers 119 Our Banners’ Community 50 Associate Diversity Programs 50 Introduction 120 Our Banners’ Food Safety Tips 52 Diversity & Inclusion 121 Our Partners 54 Everyday Practices 124 Glossary 54 Introduction 56 Food Safety 58 Associate Development 61 Community 64 Greenhouse Gas Emissions APPROACH
www.delhaizegroup.com/sustainabilityreport/2012 SUSTAINABILITY PROGRESS REPORT 2012 // APPROACH // 2 APPROACH CEO & CHAIRMAN INTERVIEW
INTERVIEW WITH PIERRE-OLIVIER BECKERS & MATS JANSSON
Pierre-Olivier Beckers, CEO and President Delhaize Group
Mats Jansson, Chairman of the Board of Directors
Q. In 2012, Delhaize We also heard a clear message from our an ambition that would engage and inspire embarked on a new phase stakeholders, who wanted us to focus more our associates, as well as be relevant to our deeply on the environmental, social and nu- customers. of its sustainability efforts, tritional aspects of the products we sell. They the 2020 Global Ambition. encouraged us to be more ambitious and to Why have you adopted a work harder to embed sustainable business new sustainability strategy? practices throughout our operations.
Mats Jansson, Chairman: We felt the time We agreed that it was time to challenge our- was right to outline a long-term vision for selves and outline bold goals that will help our sustainability efforts. We have learned a us become the sustainability leader in all lot from our past successes and challenges. of our markets. And we knew we needed
www.delhaizegroup.com/sustainabilityreport/2012 SUSTAINABILITY PROGRESS REPORT 2012 // APPROACH // CEO AND CHAIRMAN INTERVIEW // 3 Q. How did you define the Q. 2012 was a difficult year Q. How can key elements of this new financially for Delhaize sustainability play a role in strategy? Group. What were some of meeting those challenges the major challenges you and drive improved Pierre-Olivier Beckers, CEO: We examined faced worldwide, and how business performance? the progress made toward sustainability in are you addressing them? areas under our direct control and looked Pierre-Olivier Beckers, CEO: Sustainability for ways to expand our impact up and down Mats Jansson, Chairman: Like other food is one of the three pillars of our business our entire value chain. We started by listen- retailers, we continued to experience pres- strategy because it helps us deliver growth ing to internal and external stakeholders to sure from economic troubles in many of our in a responsible way. understand what we were doing well - and markets. In response, we focused on con- what we were missing - to build a more trolling costs and managing capital, which Specifically, our sustainability efforts help us sustainable business. resulted in more than EUR 700 million of free increase revenue by improving our portfo- cash flow. lio of private brand products and designing Our 2020 Ambition is rooted in one of the new, more nutritious and sustainable products primary feedback points we heard: Delhaize We had to make difficult decisions about that meet customers’ needs. We reduce costs Group has the opportunity to influence areas repositioning brands and where to focus our via initiatives such as our move toward zero beyond our direct control by focusing on how resources, such as our efforts at Food Lion to waste, and build loyalty with associates and products are grown, manufactured, trans- close underperforming stores and improve customers by demonstrating our commitment ported, packaged, consumed and disposed. service, food quality and prices. Unfortunately, to improving the social, environmental and So we selected one top priority - creating the these efforts cost some associates their jobs, health-related impact of our business. Focus- most sustainable portfolio of private brand which we understand is a hardship for them ing on sustainability also helps us anticipate products. and their families. But our human resources and mitigate business risks, such as the impact team worked to support associates through on our supply chain from increasing storms the transition by offering them other positions and droughts or resource scarcity. Sustain- Q. What were some of the within Delhaize Group, or by assisting them ability projects engage our associates across most significant with their searches for new jobs elsewhere. the business in building a stronger company. sustainability achievements of the past year? Through these efforts and others, we man- aged to achieve 2.9% revenue growth despite Q. Looking ahead to 2020, Pierre-Olivier Beckers, CEO: We are proud to challenging economic conditions. But we what are some of the most say that all of our operating companies - even know we can improve our operations further, exciting steps you anticipate those in our newer markets - have started and will remain focused on these efforts as as you embark on this new work toward the 2020 Ambition. In 2012, we we expect to face similar challenges in 2013. made particularly good progress in moving strategy? to zero waste, in creating more sustainable Mats Jansson, Chairman: Becoming the private brand products and in engaging our sustainability leader in all of our markets by associates in sustainability. 2020 will require us to listen to feedback from our customers and associates. Their input For example, our operating companies in the will help us understand how they perceive U.S. and Belgium met ambitious sustainable sustainability issues, and show us what they seafood sourcing milestones. In the drive expect from us. Understanding and respond- toward zero waste, pilot programs across ing to customer feedback is also essential as the Group showed us we can significantly we improve the sustainability of our private reduce waste from stores - particularly food brand products. waste. This not only supports our sustain- ability strategy, it also has tangible business We are excited about further educating as- benefits, such as reducing waste disposal sociates and our customers that sustainability costs and minimizing losses from unsold is not someone else’s job - it’s everyone’s product. To create a stronger level of ac- job. We hope our leadership will show how countability across Delhaize Group for sus- they can contribute in small and large ways. tainability efforts, we started in 2012 to tie Our associates are essential partners for the some executives’ bonuses to performance implementation of our 2020 Ambition and on sustainability goals. also are the front line of communication with our customers. We know we will not achieve our goals without them.
www.delhaizegroup.com/sustainabilityreport/2012 SUSTAINABILITY PROGRESS REPORT 2012 // APPROACH // CEO AND CHAIRMAN INTERVIEW // 4 APPROACH 2012 HIGHLIGHTS & CHALLENGES
HIGHLIGHTS
Moving to Zero Waste Sustainable Seafood Sourcing Healthier Private Brand Products All operating companies implemented We achieved major milestones in the U.S. We continued to reformulate private waste reduction pilot programs. In the and Belgium, with Delhaize America’s sus- brand products to improve their nutri- U.S., we reduced waste going to landfill tainable seafood sourcing policy now cov- tional value. In Belgium, for example, we by 8% from 2011 to 2012. ering all fresh, frozen and canned seafood replaced palm oil with sunflower oil in products and Delhaize Belgium’s stores all “Delhaize” brand frozen French fries. carrying 100% sustainable fresh fish.
More info More info More info
Performance Management Dow Jones Sustainability Indexes We tied executive compensation to sus- We were listed in both the World and Eu- tainability goals for the first time. 23% of rope versions of the Dow Jones Sustain- executives across the business were ac- ability Index. These benchmark indices only countable for sustainability goals in 2012. include companies that meet strict eco- nomic, environmental and social criteria, and signal that we are building a strong foundation of sustainability practices.
More info More info
www.delhaizegroup.com/sustainabilityreport/2012 SUSTAINABILITY PROGRESS REPORT 2012 // APPROACH // 2012 HIGHLIGHTS & CHALLENGES // 5 CHALLENGES
• Economic pressures in many of our lenges and drive stronger performance. • Demonstrating the financial value of markets required us to limit direct in- In 2013, we will focus on accelerating our sustainability projects and goals vestments in new sustainability projects, sustainable product innovations and remains difficult. We will continue to as we cut back on budgets across the reformulations, and moving to zero improve the tracking of our investments business. But applying sustainable waste, both of which will help drive and return on these programs through- practices helps us meet financial chal- stronger performance overall. out the journey to our 2020 Ambition.
www.delhaizegroup.com/sustainabilityreport/2012 SUSTAINABILITY PROGRESS REPORT 2012 // APPROACH // 2012 HIGHLIGHTS & CHALLENGES // 6 APPROACH THE BIG PICTURE
Our Business Model Our Value Chain including reducing environmental impacts from our stores and warehouses, and As a global food retailer we offer thou- Our value chain is complex and inter- improving the ways in which we support sands of products. These include our own connected, but we believe sustainability development and wellbeing for our as- private brands and national brands. Pri- should play a critical role throughout it. As sociates. Now, we have begun to expand vate brand products make up 56% of Bel- a global food retailer, we believe we can our impact up and down the value chain gium sales and 28% of U.S. sales. Food use both our direct and indirect influence through partnerships that seek sustain- makes up 85% of Group sales. Eighty to improve the entire value chain. able approaches for how products are percent of our 3 451 stores are company- grown, manufactured, transported, pack- operated, while the remaining 20% are We have made good progress in areas of aged, consumed and disposed of when affiliated and franchised. direct control during the past four years, they are no longer fit for consumption.
The World Around Us 2012, while Arctic sea ice shrank to its 2. Resource scarcity and food security lowest level in history. Huge storms, increasingly impact our business and An effective sustainability strategy must such as Hurricane Sandy in the U. S. the communities in which we operate. address major global sustainability and super-typhoon Bopha in the Phil- There is a growing gap between de- trends. We identify these trends through ippines, had devastating social and mand for key resources and available discussions within and outside of our economic impacts. As a global retailer supply. Meanwhile, droughts in 2012 business. This year, five of the six criti- we produce almost 2.6 million tonnes and other pressures on ecosystems, cal trends remain the same as in 2011. of CO2 equivalent emissions a year, combined with growing demand from The new trend in our 2012 focus is “food and we influence the climate much emerging economies, are exacerbat- waste.” more through our supply chain and ing the supply and demand imbal- our customers. Although we have de- ance. As a result, commodity prices 1. Climate change affects every stage creased our emissions since we started have more than doubled since 2000, of our value chain, and 2012 was tracking figures in 2008, it is clear we leading to increases in food prices. We an eye-opening year in terms of its have a responsibility to continue to take must be proactive to safeguard and potential global impact: The concen- action, and an opportunity to drive our strengthen our supply chain. tration of carbon dioxide in the at- business forward. mosphere reached a record level in
www.delhaizegroup.com/sustainabilityreport/2012 SUSTAINABILITY PROGRESS REPORT 2012 // APPROACH // THE BIG PICTURE // 7 3. Food waste has become an increas- 4. Economic uncertainty remains a 6. Changing consumer expectations ingly important issue to address, par- significant issue due to the ongoing require us to be better in every way, ticularly in light of ongoing resource global financial crisis. While unem- including providing greater transpar- scarcity and the growing problem of ployment stabilized in the U.S. in 2012, ency, developing more sustainable hunger around the world. Up to 40% several European countries continued products and going beyond traditional of food in the U.S. is wasted each year to be in recession. Consumers have lines of responsibility. High-profile - worth nearly USD 165 billion, accord- less money to spend on food, which cases in 2012, such as a deadly fire ing to an estimate by the Natural Re- leads to changes in shopping habits. in a garment factory in Bangladesh sources Defense Council. In Europe, It is crucial that we continue to em- and a riot at an electronics plant in the EU parliament began addressing phasize product affordability without China, have further focused consum- the problem by passing a resolution compromising quality, nutrition, safety ers’ attention on global supply chain in 2012 that mandates a 50% reduc- and sustainability. issues. To retain consumer trust, we tion in food waste by 2020. We can must seek improved product informa- play an important role in reducing the 5. Health is a vital element of our re- tion and demonstrate our responsibility amount of food waste by focusing on sponsibility across all our markets. We as a company. improvements in our own value chain, are in a strong position to promote in collaboration with our suppliers and healthy lifestyles to our associates and customers. customers, through programs that can help prevent or manage ailments and diseases like obesity, diabetes, and malnutrition. Illness prevention is in- creasingly important as the economic crisis reduces people’s ability to afford healthcare.
www.delhaizegroup.com/sustainabilityreport/2012 SUSTAINABILITY PROGRESS REPORT 2012 // APPROACH // THE BIG PICTURE // 8 APPROACH OUR MATERIAL ISSUES
Our Material Issues and external stakeholder interviews. In 2010, “We are happy to see that Delhaize Group Revised Materiality Matrix when establishing the next steps in Del- englobes the challenges upstream from haize Group’s journey to sustainability, the field to the store. As a supplier, it com- To translate global sustainability trends we listened again to our stakeholders forts us in our own CSR policy and the into a business strategy, we conducted to review our material issues and advise need to align them.” Francois Maes, CEO an analysis to identify areas where we us on how to prioritize them. One clear Special Fruit. can have the biggest economic, envi- message from this exercise was to ad- ronmental and social impact, as well dress our material issues with both direct as the topics that are most important to and indirect influence along our entire our stakeholders. This process is called value chain. In 2013, we have revised our materiality assessment, and it helps us matrix, combining our material issues prioritize our efforts. into eight categories and identifying their relevance all along our value chain. We In 2008, we conducted our first materiality engaged a few stakeholders to review assessment at the Group level, combin- this approach. Below is our new matrix. ing industry research with internal and
Our Value Delhaize Group Chain Material Issues
1. Raw Materials: Fresh products are 1. Health: How the food we sell impacts 6. Food Security: “When all people at all grown or raised and raw materials health of our customers and associ- times have access to sufficient, safe, for processed products are grown or ates. nutritious food to maintain a healthy extracted. and active life.” (World Health Or- 2. Food Safety: The safety of the food ganization). We impact food security 2. Process & Packaging: Products are we sell throughout the value chain. directly in our stores and also through processed and manufactured. At the our sourcing practices. end of this process, they are packed 3. Sustainable Agriculture: Impacts to and ready to be distributed. the environment (such as water use 7. Waste: Amount of waste (such as food and quality, use of chemicals, impacts waste, packaging waste) created dur- 3. Distribution & Transport: Products are on ecosystems) from the growth of ing production, transportation, sale transported to our distribution centers. products we sell. and consumption of products we sell. From there, trucks deliver them to our stores. 4. Climate Change: How changing cli- 8. Human/Labor Rights: How human mate impacts the supply of products rights are upheld during the produc- 4. In Store: Products are put in stores, for Delhaize Group and how our value tion of Delhaize Group’s private brand accessible to customers. In this step chain impacts carbon emissions. products and within the company’s of the value chain, we also include own operations. support functions within our company 5. Local Communities: How we impact that enable store operations. economic, social and environmental aspects of the communities in which 5. Consumption & Disposal: Customers the company operates (such as sourc- bring products home, store them, con- ing from local suppliers, being a trust- sume them and dispose of product waste. ed employer).
www.delhaizegroup.com/sustainabilityreport/2012 SUSTAINABILITY PROGRESS REPORT 2012 // APPROACH // OUR MATERIAL ISSUES // 9 OUR VALUE CHAIN
INFLUENCE DIRECT CONTROL INFLUENCE
RAW PROCESS DISTRIBUTION IN-STORE CONSUMPTION MATERIALS & PACKAGING & TRANSPORT & DISPOSAL
HEALTH
FOOD SAFETY
SUSTAINABLE AGRICULTURE
CLIMATE CHANGE
LOCAL COMMUNITIES
FOOD
OUR MATERIAL ISSUES OUR MATERIAL SECURITY
WASTE
HUMAN/ LABOR RIGHTS
Legend: No points : not relevant in this step of the value chain : low relevance in this step of the value chain : medium relevance in this step of the value chain : high relevance in this step of the value chain
www.delhaizegroup.com/sustainabilityreport/2012 SUSTAINABILITY PROGRESS REPORT 2012 // APPROACH // OUR MATERIAL ISSUES // 10 APPROACH OUR STRATEGY
Our New Game Plan Overview of Efficiency Overview of Sustainability
The New Game Plan is the backbone of Improving our efficiency increases our sus- We have made steady progress on the the Delhaize Group strategy and is built tainability and often results in cost savings. sustainability pillar of the New Game on three equally important pillars: growth, It involves optimizing and standardizing Plan, and those achievements inspired us efficiency and sustainability. Our CEO and our Group-wide systems and processes. to take the next step in our sustainability Executive Committee are responsible for Up the value chain this means using fewer journey. We challenged ourselves to think managing how the three pillars work resources, such as water and energy, and bigger. We wanted to continue to find together. By executing on this strategy creating less waste. Within our own opera- ways to work differently, push ourselves consistently, Delhaize Group will claim tions this means reducing our own use of to improve our sustainability efforts and its place among the best-in-class food resources and using the sustainability lens find new ways to meet customer needs. retailers worldwide and create value for to define new ways to procure, ship, stock We asked ourselves, “How good can a all its stakeholders: Customers, suppliers, and sell products. Down the value chain supermarket be?” At Delhaize Group, we associates and shareholders. this enables us to make the products we think the answer is Supergood. sell more affordable and more sustainable.
VISION & VALUES How We Define Supergood
Supergood means a market filled with good products, a place where what is good for the bottom line goes hand-in-hand with what is good for the community, our associates and the planet.
That is why we are building good into everything we do. And why we are constantly looking for ways to improve. Like installing refrigerator doors that keep food fresh and energy costs low. Or carrying healthy GROWTH EFFICIENCY SUSTAINABILITY products at more affordable prices. Or providing clear information about the food on our shelves.
It is a good start. But we are aiming higher and trying to go further. All Overview of Growth the way to Supergood. We have always believed that accelerat- ing profitable revenue growth is an op- Because we are not just selling groceries. We are working to set a new portunity to increase our positive impact. standard. We think a supermarket can be good, it can be really good, Sustainability is a critical tool to deliver or it can be Supergood. growth in a responsible way. Growth means expanding our presence in key markets and meeting customer needs by evolving the products we sell. Our private brand products are a major growth area. We have direct influence over how we source, develop and sell these products, so we can accelerate both their market and sustainability performance.
www.delhaizegroup.com/sustainabilityreport/2012 SUSTAINABILITY PROGRESS REPORT 2012 // APPROACH // OUR STRATEGY // 11 Supergood is about taking our own sus- Supergood. It requires a full commitment in all of our local markets by 2020, but tainability efforts to a new level, and in to creating sustainable private brands, we will continue to assess and adjust our turn leading our industry toward more reducing waste, encouraging healthier approach and our goals as we go along. sustainable business practices. Our am- lifestyles and championing diversity that Global sustainability issues are constantly bition is to achieve Supergood by 2020, reflects our values and our communities. evolving, and we must adapt our own re- becoming the sustainability leader in all of sponses accordingly in order to complete our markets. To get there, we developed a For each area we have defined a global our journey to Supergood. new strategy focused on the areas where ambition that applies across all our com- we can have the biggest impact. panies. In addition, we will establish more Delivering on our commitment to Super- specific goals for each operating company, good means customers can trust us to Our strategy has three layers: one area taking into account where we want consist- help them live healthier lives and to make we intend to WIN (exceed our competi- ency across our markets and where we good choices. They can shop at our stores tors’ efforts in local markets); three areas need local differentiation. Measuring our knowing that affordable, nutritious choices we intend to LEAD (be among the leaders progress against these goals will allow us are easy, that our private brands blend in our local markets); and a foundation of to quantify the impact Delhaize Group is quality, affordability and sustainability, sustainable best practices we will uphold having in the communities we serve, and and that we are continuously innovating EVERYDAY. Addressing all three layers on the planet at large. That roadmap will to improve the positive impact we have simultaneously is the way we can achieve help us become the sustainability leader on our communities and the planet.
Building the most sustainable private brands in our local markets.
Moving to zero waste, fostering healthy lifestyles, supporting associate diversity.
Strengthening our foundation of core sustainability practices to support our associates, our communities and the planet.
WIN Building the most sustainable private brands in our local markets
it is the area in which we can have the big- us a long way toward our vision of a mar- gest impact - the social and environmental ket full of good products, which is a key footprint of our private brand value chain is component of becoming a Supergood much larger than the footprint of our direct grocery retailer. operations. Manufacturing, processing, packaging, transporting and selling our But we don’t know what “winning” will private brand products also touches on all look like. The world is changing, and our eight of the material issues that are most competitors are advancing, quickly. We critical for our business. know that progress toward more sustain- able products is not driven by one retailer Our top priority is to build the most sustain- We established the goal to WIN in our lo- alone. As part of this journey, we will con- able private brands in our local markets. cal markets because we wanted a strong tinue to collaborate with stakeholders In this case, building sustainable private ambition, one that will push our associ- such as our suppliers, our customers and brands means addressing the environ- ates to truly change how we operate. our peers in retail and manufacturing to mental, social and nutritional aspects of Creating the most sustainable portfolio share our learnings, learn from others, our products. It is our top priority because of private brand products also will carry and help move the industry forward.
www.delhaizegroup.com/sustainabilityreport/2012 SUSTAINABILITY PROGRESS REPORT 2012 // APPROACH // OUR STRATEGY // 12 LEAD Moving to zero waste, fostering healthy lifestyles, supporting associate diversity
sue of resource scarcity, is a prominent customers to adopt healthier lifestyles. issue globally, and one that we can But we want to take it a step further: impact in several ways. In our own op- Our global ambition is to be among the erations, we still have opportunities to leaders in all of our local markets for reduce the waste we produce - and empowering associates and custom- its related costs. Our global ambition ers to lead healthy lifestyles. is to move our own operations to zero waste, partner with suppliers to reduce 3. Supporting associate diversity. We waste, and engage our customers to employ 158 000 people across the As a second level of priority, we identified reduce waste. world. Fostering a diverse workforce three areas where we aim to be among strengthens our business by inspiring the leading companies in our industry. 2. Fostering healthy lifestyles. Our busi- creativity, innovation and a culture of These are areas in which we have already ness is food, which is a source of nu- performance and ownership. Wel- built a foundation of sustainable prac- trition and health. We identify health coming all kinds of people helps us tices, but wish to accelerate our efforts as one of our material issues. Health develop and retain strong associates, to meet our 2020 Ambition. They also issues - particularly related to diseases and allows our business to reflect the are areas in which improvements can such as obesity and diabetes, and the communities we serve. We have es- have a direct impact on our bottom line, problem of malnutrition - are becom- tablished a foundation for supporting as well as on our associates, customers, ing more significant across all of our associate diversity in some of our mar- communities and the environment. Our markets. By helping our associates kets, but we aim to spread that across three areas to LEAD are: and customers live healthier lives, we the full Group. Our global ambition is will be a better employer and a better to embrace and foster Diversity and In- 1. Moving to zero waste. Waste is one grocery provider for the communities clusion across our business, and build of our eight material issues, and one we serve. We already have seen this a team of associates that reflects the that is found across our entire value result through our projects across the diversity of the communities in which chain. Food waste, and the related is- globe to encourage associates and we operate.
EVERYDAY Strengthening our foundation of core sustainability practices to support our associates, our communities and the planet
In 2012, Delhaize Group was listed in maintain or establish Group-wide goals, the Dow Jones Sustainability Index at such as a commitment to reduce our the global and European levels. The per- greenhouse gas emissions per square formance requirements for this index, meter of sales area by 20% vs. our 2008 along with other sustainable business baseline emissions figures. In other ar- standards, establish best practices that eas, such as associate training and de- will guide our approach to key corporate velopment or community engagement, governance initiatives, labor practices, we will set best practices at the local level. and social and environmental commit- Each year we will benchmark our overall ments. Measuring our efforts against practices through the Dow Jones Sustain- While we pursue ambitious goals in our these industry benchmarks will help en- ability Index and other standards. strategic interest areas, we must remain sure our core sustainability efforts keep focused on many other core practices pace with other companies inside and that underlie a sustainable business. outside our industry. That’s why we specifically incorporate a foundation of EVERDAY best practices into Our EVERYDAY practices cover a broad our journey to Supergood to ensure we range of issues and reach into all corners are building good into everything we do. of our business. In some areas, we will
www.delhaizegroup.com/sustainabilityreport/2012 SUSTAINABILITY PROGRESS REPORT 2012 // APPROACH // OUR STRATEGY // 13 Engaging our Associates Together, these individual actions can But we are committed to our ambition add up to big results - for our stores, our and focused on finding ways to do some- We know we can only achieve these customers and our communities. thing better, every day. We are not settling goals through the contributions of our for good. We are always looking for ways 158 000 associates. So we are engaging This is our chance to come together and to improve, and through the journey to them across Delhaize Group to under- create a more competitive business with Supergood we are helping shape a better stand and take ownership of our journey a more positive impact on our people future for our communities, our business to Supergood. and the planet. That’s why we have set and the planet. ambitious goals for ourselves. Whether associates work in our stores, We also know from our previous sus- distribution network or offices, they are tainability efforts that this will be a long encouraged to think creatively about journey. Our goals and measurement applying Supergood to their individual targets likely will evolve over time, and roles. We welcome their suggestions for there will be challenges on the way to improving our systems and processes. Supergood.
www.delhaizegroup.com/sustainabilityreport/2012 SUSTAINABILITY PROGRESS REPORT 2012 // APPROACH // OUR STRATEGY // 14 APPROACH SUSTAINABILITY GOVERNANCE & MANAGEMENT
Our sustainability strategy is set by the Delhaize Group CEO and Executive Committee, based on recommendations from the Sustainability Team, and then approved by the Delhaize Group Board of Directors. Associates from all departments across our business collaborate to meet the goals, with advice and technical support from the Sustainability Team.
The Global Sustainability Team is made and monitor progress against our goals. up of a small number of sustainability Annual performance management tar- For the 1st time in 2012: 23% experts who work in Delhaize Group’s gets for senior leaders embed ownership of executives across the operating companies and corporate for the outcomes across the company. business were accountable for headquarters. Cross-company working sustainability goals. teams collaborate to share best practices
Executive Committee
Sustainability Advisory Committee
Global Sustainability Team
Sustainability Working Teams
www.delhaizegroup.com/sustainabilityreport/2012 SUSTAINABILITY PROGRESS REPORT 2012 // APPROACH // SUSTAINABILITY GOVERNANCE & MANAGEMENT // 15 Within the Executive Committee, Nicolas Hollanders, Executive Vice President Hu- man Resources, IT and Sustainability, has responsibility for sustainability.
In 2012, we added an internal Sustainability Advisory Committee, made up of senior leaders from across the Group, to advise on our strategic direction. The composition of the Committee in 2012 was:
• Nicolas Hollanders, Executive Vice President Human Resources, IT and Sustain- ability - Delhaize Group • Vassilis Stavrou, Executive Vice President Human Resources, Organization Devel- opment and Sustainability - Delhaize Europe • David Vander Schueren, Chief Operating Officer Serbia, Bosnia and Herzegovina, Montenegro • Miguel Silva Gonzales, Vice President Treasury - Delhaize Group • Greg Amoroso, Chief Sustainability Officer - Delhaize Group and Senior Vice President - Delhaize America* • Beth Newlands-Campbell, President, Hannaford Supermarkets* • Mark Doiron, Chief Supply Chain Officer - Delhaize America* *until December 2012
Global Sustainability Team els, this team monitors trends, recom- business units. The team collaborates mends strategic direction, tracks progress globally, while maintaining reporting lines Comprising sustainability experts at the against our strategic goals and provides into the operating companies. corporate and operating company lev- technical sustainability expertise to our
www.delhaizegroup.com/sustainabilityreport/2012 SUSTAINABILITY PROGRESS REPORT 2012 // APPROACH // SUSTAINABILITY GOVERNANCE & MANAGEMENT // 16 APPROACH OUR STAKEHOLDERS
We know that we will not reach our sus- We use a variety of mechanisms to en- On occasion, we organize formal stake- tainability ambition alone, which is why gage with a diverse range of stakehold- holder meetings to tackle specific issues, insights from our external partners, as ers. Our stakeholder relations happen at as we did in 2010 at the Group level to well as from our own associates and cus- the local level, directly with our operat- begin defining our new 2020 Ambition. tomers, are so valuable. Engaging with ing companies, at the regional level for But most of our stakeholder engagement our stakeholders helps us stay focused on the U.S. and Europe, and also globally, happens in a less formal way, every day, the most relevant topics and strengthens through Delhaize Group. through means such as those listed in our approach to becoming sustainability the table below. leaders in all of our local markets.
www.delhaizegroup.com/sustainabilityreport/2012 SUSTAINABILITY PROGRESS REPORT 2012 // APPROACH // OUR STAKEHOLDERS // 17 STAKEHOLDER EXAMPLES OF ENGAGEMENT
• Directly in stores CUSTOMERS • Online communication and interaction • Surveys and focus groups
• Surveys and dialogues ASSOCIATES • Management meetings • Internal communications to share key achievements and sustainability tips • Awards, incentives, recognitions • Knowledge sharing sessions
• Proactive sustainability partnerships with large suppliers and SMEs SUPPLIERS • Supplier summits • Sharing of common standards across the diversity of suppliers
• Annual General Meeting SHAREHOLDERS • Presentations and exchanges with analysts and investors, including the socially responsible investment community
• Partnerships with and sponsorships of local organizations LOCAL COMMUNITIES • Communication and interaction through our stores
• Dialogue and engagement with local, regional and international GOVERNMENTAL AUTHORITIES authorities and regulators
• Partnerships NON-GOVERNMENTAL AUTHORITIES • Memberships • Face-to-face meetings to discuss key issues and emerging trends
• Active membership in sustainability committees INDUSTRY NETWORKS
Indicates stakeholders with whom Delhaize Group has the most interactions
www.delhaizegroup.com/sustainabilityreport/2012 SUSTAINABILITY PROGRESS REPORT 2012 // APPROACH // OUR STAKEHOLDERS // 18 APPROACH COMPLIANCE & ETHICS
Delhaize Group’s core value of integrity is foundational to our Compliance and Ethics program. Acting with integrity and promoting an ethical culture is the responsibility of each and every associate. We refer to this responsibility as “the right way, every day.” Our Compliance and Ethics program has two key components which are designed to encourage ethical business practices and an ethical work environment.
Delhaize Group’s Guide for Ethical Business Conduct defines the principles that support our company’s commitment to integrity and protects our relationships with our associ- ates, our customers, our shareholders, and our communities. The Group conducts interactive computer-based training on the guide to provide associates with guidance in making sound ethical decisions in their GUIDE for ETHICAL day-to-day work using real-life scenarios. BUSINESS CoNDUCT Over 15 000 associates throughout our the right way, every day operations receive the Compliance and Ethics training each year.
In addition, Delhaize Group also utilizes an on-line and telephone reporting sys- tem for Delhaize Group associates to report issues or concerns related to the Guide for Ethical Business Conduct or other legal obligations of the company. The reporting line, known as the “I Share line”, is hosted by EthicsPoint, a third- party helpline provider, and is available 24 hours a day, 365 days a year. The “I Share line” allows reporting in languages spoken by our associates throughout Delhaize Group. All reports are forwarded to the Office of Compliance and Ethics 2 for review, investigation and response.
www.delhaizegroup.com/sustainabilityreport/2012 SUSTAINABILITY PROGRESS REPORT 2012 // APPROACH // COMPLIANCE & ETHICS // 19 APPROACH OUR SUSTAINABILITY TIMELINE
Delhaize Group is named to both the World and Europe Dow Jones Sustainability Indexes.
The Group develops and launches its second sustainability strategy: Our 2020 Ambition - “On Our Way 2012 to Supergood ”. Delhaize America achieves goal of implementing sustainable seafood sourcing policy for fresh, frozen, and canned seafood, in collaboration with the Gulf of Maine Research Institute .
Delhaize Belgium achieves goal of selling 100% sustainable fresh seafood, in collaboration with WWF and Stichting De Noordzee.
Election of the first“Delhaize Group Store Manager of the Year” to recognize excellence in store management.
Executive compensation is tied to sustainability goals for 23% of executives across the business.
Alfa Beta in Greece gets the BREEAM award for its Green store.
Alfa Beta in Greece and Delhaize Belgium introduce two 2011 healthier private brand ranges “NutriLife” and “Delhaize Kids”.
Food Lion receives the Delaware Governor’s Award for Excellence in Food Safety.
53 Sweetbay stores are awarded an Energy Star certification by the U.S. Environmental Protection Agency.
Nine Hannaford stores are certified by the Maine Department of Environmental Protection as Environmental Leaders.
www.delhaizegroup.com/sustainabilityreport/2012 SUSTAINABILITY PROGRESS REPORT 2012 // APPROACH // OUR SUSTAINABILITY TIMELINE // 20 Delhaize Group launches a new business strategy, with sustainability as one of the three strategic pillars of the plan.
The Executive Committee approves the Group’s 2020 2010 Sustainability Strategy. Delhaize Belgium reformulates nearly 2 000 products, cutting out tonnes of salt, sugar and fats.
Delhaize America joins the National Salt Reduction Initiative and pledges to meet aggressive salt reduction goals.
The Group launches its International Graduate Trainee Program.
Alfa Beta in Greece opens the country’s first green store and wins the European Green Building Award.
Food Lion is recognized for its 1 000th Energy Star store.
Energy generated from on-site solar panels across the Group increases 63%.
Food Lion gets the “Retail Role Model Award” from the Produce for Better Health Foundation. First Group-wide Associate Engagement Survey. 2009 Delhaize Group companies start sharing best practices on associate health and wellness to improve program offerings.
A Sweetbay store manager receives the “Store Manager of the Year Award” from the Food Marketing Institute.
Three female associates at Food Lion, Sweetbay, and Hannaford receive the “Top Women in Grocery” award.
The Group’s carbon footprint is measured and disclosed for the first time.
The Hannaford store in Augusta (Maine) receives the world’s firstPlatinum LEED certification for a supermarket.
www.delhaizegroup.com/sustainabilityreport/2012 SUSTAINABILITY PROGRESS REPORT 2012 // APPROACH // OUR SUSTAINABILITY TIMELINE // 21 The Group develops its first sustainability strategy and releases its first sustainability report.
Delhaize Group joins REAP, the European Commission’s “Retailers’ Environmental Action Program”.
Guiding Stars is rolled out at nearly all U.S. stores.
Hannaford and Food Lion are voted two of the ten 2008 healthiest grocery chains in the U.S. (Health magazine). Hannaford wins, for the second year in a row, Platinum status in the “Best Employers for Healthy Lifestyle Awards” (the only retailer in the U.S. to achieve this accolade).
Delhaize banners in the U.S. win the Champion of Diversity Award from Supermarket News.
Mega Image is ranked among the best 100 companies to work for in Romania.
Alfa Beta wins Greece’s first”Green Retail Award” for its ”Cultural Heritage” recycling advertising campaign.
Super Indo is Indonesia’s first supermarket chain to launch an eco campaign to promote the use of reusable bags.
Food Lion wins its eighth consecutive ”Energy Star Sustained Excellence Award” (a record for a supermarket company).
Delhaize Group launches the Delhaize Group Fund to support projects promoting social cohesion in Belgium.
Delhaize Belgium begins using GDAs (standardized nutritional information system) on the packaging of its private brand products.
Mega Image is the first supermarket in Romania to highlight the “5-a-day” healthy eating concept. 2007
Hannaford is the only retailer (and one of only eight U.S. companies) to win the highest platinum honors in the Best Employers for Healthy Lifestyles Awards.
725 Food Lion stores earn Energy Star status – representing more than half of all Energy Star grocery stores in the U.S.
Delhaize Belgium commits to reduce its energy consumption a further 35% by 2020 and ends distribution of disposable plastic bags.
Alfa Beta is awarded the Greek Ministry of the Environment and Works certification for recycling over 5 million kg of materials (predominantly paper, plastic and metals).
www.delhaizegroup.com/sustainabilityreport/2012 SUSTAINABILITY PROGRESS REPORT 2012 // APPROACH // OUR SUSTAINABILITY TIMELINE // 22 Hannaford launches “Guiding Stars”, a nutritional navigation system. 2006 Delhaize Belgium launches initiatives to promote use of reusable bags and to reduce the number of disposable plastic bags.
The Executive Committee formalizes and coordinates Delhaize Group’s sustainability initiatives. Food Lion wins its firstEnergy Star Sustained Excellence 2004 award from the U.S. Environmental Protection Agency for its energy conservation actions.
Food Lion joins the U.S. Environmental Protection 1998 Agency’s Energy Star program.
Delhaize Belgium is the first large retailer in the country to sell fairtrade products. 1990
1985 Delhaize Belgium starts selling organic products.
Delhaize starts operations in the U.S. 1974
www.delhaizegroup.com/sustainabilityreport/2012 SUSTAINABILITY PROGRESS REPORT 2012 // APPROACH // OUR SUSTAINABILITY TIMELINE // 23 To optimize efficiency and protect quality, Delhaize builds fully air-conditioned warehouses to stock fruit, 1967 vegetables and dairy products.
Delhaize standardizes the prices for products sold across all of its stores - the first use ofprice alignment in the retail trade. 1919 The company concentrates efforts on its “store-brand” - products and keeps the price of those products as low as possible. 1939
The company sets up a health service offering free health 1900 care to the staff and their families.
- Several institutions are created for the staff including 1903 a music school, a canteen, a library, a primary school, gymnastics classes….
Delhaize creates an insurance fund and a pension and assistance fund for its staff, to help staff members in a critical situation, following illness or an accident. 1896
Jules and Edouard Delhaize, together with Jules Vieujant, set up an integrated food distribution system with multiple stores operating from a central warehouse in Belgium.
1867 Better goods are available to customers, at better prices. The goods are sold in well organized stores operated by competent staff, with prices clearly displayed.
www.delhaizegroup.com/sustainabilityreport/2012 SUSTAINABILITY PROGRESS REPORT 2012 // APPROACH // OUR SUSTAINABILITY TIMELINE // 24 PERFORMANCE
www.delhaizegroup.com/sustainabilityreport/2012 SUSTAINABILITY PROGRESS REPORT 2012 // PERFORMANCE // 25 performance sustainable private brands
Introduction
Our portfolio of private brand products offers the most direct way to make an impact on the sustainability of the products we sell. While our suppliers manufacture private brand products for us, we set product specifications, select the appropriate vendors and collaborate with them to create the high-quality products that bear our name. These products have an extensive impact on the planet, ranging from the growth of raw materials to manufacturing, packaging and transporting the finished product. They also have significant impacts on the people who make, consume and dispose of them. In addition, private brand products are visible reminders of Delhaize Group’s values and vision. These products are unique to our stores, and customers associate them with our banners.
In our efforts to build sustainability into our private brands, we continue to consider the following material issues: Health, food safety, human rights, sus- tainable agriculture, climate change, waste, local economies and long-term food security. These issues inform our efforts to work toward what we mean by sustainable private brands: An array of products with improved environmen- tal, social and nutritional impacts. That means determining which products use environmentally sensitive ingredients and finding ways to replace them; sourcing products from local suppliers when pos- sible; reformulating recipes to minimize added salt, sugar and harmful fats; changing packaging to reduce waste; and numerous other approaches. At the same time, we aim to make products that our customers find tasty and affordable.
www.delhaizegroup.com/sustainabilityreport/2012 SUSTAINABILITY PROGRESS REPORT 2012 // PERFORMANCE // sustainable private brands // 26 Building sustainability into our private brands is also the most significant way private brands sales private brands sales we can address major global sustain- delhaize belgium delhaize america ability trends. Through this process, we (% of revenue) (% of revenue) intend to drive innovation in our products, prepare our private brand supply chain for the future and identify new efficiencies in our private brand sourcing. We believe sustainable private brand products will strengthen our relationships with custom- ers and increase consumer loyalty. 54.7% 56.1% 27.0% 27.6% For these reasons, the sustainability of our 11 12 11 12 portfolio of private brand products is the top priority in our 2020 ambition. On our journey to Supergood we intend to WIN in this area: To exceed our competitors’ efforts on sustainable private brands in our local markets and to be recognized in this role by consumers in each of our local markets.
Our 2020 ambition for Sustainable Private a common framework that our operating Brands builds on work we have com- companies will use as they forge their pleted over the last three years. From own unique paths to 2020 leadership. 2009 to 2011, responsible sourcing was a focus of our strategy. Over that period, we deepened our partnerships with sup- pliers and external experts, producing real results on our store shelves. At the same time, we built and strengthened the internal structure and processes that make those results possible, developing
www.delhaizegroup.com/sustainabilityreport/2012 SUSTAINABILITY PROGRESS REPORT 2012 // PERFORMANCE // sustainable private brands // 27 Global We will engage with our private brand suppliers to build a portfolio of nutritious, safe, affordable and sustainable products that surpasses our competition and 2020 positions us as the clear winner in each of our local markets ambition
our 2020 Goals: Health 2012 Progress GOALS & PROGRESS Continue to apply clear nutritional 94% of European private brand labeling on our private brand products products have GDA labels Improve the nutritional quality of our Reformulated products to reduce fat private brand products, including and sodium reducing negative elements and increasing positive elements Audit all private brand suppliers for 79% of private brand suppliers food safety compliance audited for food safety by a third- party auditor against GFSI standards 12% of private brand suppliers audited for food safety against other food safety standards
Goals: Environmental 2012 Progress Use only sustainable palm oil for our Delhaize Belgium: More than 80% of private brand products ** - December private brand food products evaluated 2015 Delhaize Belgium: Approximately 20% of the palm oil used for our pri- vate brand food products is certified sustainable Develop operating company- Delhaize America: 100% fresh, specific sustainable seafood policies frozen and canned seafood is and implementation plans towards assessed against the company the Delhaize Group Sustainable policy and is fully traceable to the Seafood vision wild fishery or farm of origin Delhaize Belgium: 100% of fresh and 80% of frozen seafood is sustainably sourced, in accordance with the company policy
Goal: Social 2012 Progress Ensure that all our private brand Delhaize Belgium: 17% of sales of pri- suppliers in at-risk countries are vate brand products that are sourced audited against social compliance from at-risk countries are produced standards in sites audited against BSCI or come from suppliers that are BSCI members
** Our long-term aim is to use only traceable sustainable palm oil in our private brand products
www.delhaizegroup.com/sustainabilityreport/2012 SUSTAINABILITY PROGRESS REPORT 2012 // PERFORMANCE // sustainable private brands // 28 Spotlight • Continued to improve the nutritional value of our products through reformulations, such as reducing sodium in Delhaize America’s private brand products, in partner- on ship with the National Salt Reduction Initiative and replacing palm oil with sunflower 2012 oil in all “Delhaize” brand frozen French fries in Belgium. • Achieved sustainable seafood milestones at Delhaize America and Delhaize Bel- gium. • Maintained strong food safety standards with our private brand suppliers by continu- ing to require Global Food Safety Initiative (GFSI) certified standards. • Continued to promote organic, fairtrade, ecological and local private brand product ranges.
Reviewed by Ernst & Young
risks & risks opportunities opportunities • Customer perceptions that more • Leading the industry through our nutritious products are more expensive, private brand nutrition standards less tasty and take longer to prepare • Meeting our customers’ demands for • Small-scale suppliers’ difficulties healthier, safer, affordable and more meeting stringent food safety standards sustainable choices • Not accurately weighing the • Building supplier capacity to achieve environmental and social benefits and best-in-class standards and improve consequences of sourcing decisions efficiencies • Long-term risks to food security from • Collaborating with suppliers to secure sourcing decisions made today the long-term availability of the • Not anticipating and preparing for products we sell the effects of climate change on our private brand suppliers
with relevant non-governmental organi- We will also continue to partner with sup- zations and industry experts. pliers and work collaboratively to address material issues. In 2012, we tested an As part of this process, we joined The effort to analyze the supply chains for Sustainability Consortium, a collaborative the fruit and vegetable category and the global effort to understand and address spreads category (such as jams), assess- the environmental and social impacts of ing their impact on environmental and products. We also continued to participate social issues. We have already incorpo- in The Consumer Goods Forum (CGF) “Sus- rated suppliers’ feedback on that process, tainability Steering Group” and “Health & and will continue to refine those efforts Wellness Core Team”. In that forum, we work going forward. Our Approach alongside our peers in retail and consumer goods manufacturing industries to move Achieving our Sustainable Private Brands forward on issues such as healthy products ambition requires Group-wide collabo- and eliminating sourcing tied to deforesta- ration and unique efforts at each of our tion. The CGF’s board of directors, which operating companies. In 2013, each oper- includes Delhaize Group CEO Pierre-Olivier ating company will set clear local targets Beckers, has adopted resolutions related to reach our Sustainable Private Brands to sustainability and health and wellness ambition in each of our markets by 2020. (see the Sustainable Private Brands - Health We will also increase internal training as section). We fully support these resolutions necessary and expand our collaborations and are working toward them.
www.delhaizegroup.com/sustainabilityreport/2012 SUSTAINABILITY PROGRESS REPORT 2012 // PERFORMANCE // sustainable private brands // 29 health
We are constantly working to improve the nutritional value of our private brand products - a key part of our progress toward offering the most sustainable private brand products in our local markets. These efforts align with ongoing action in our industry to help consumers live healthier lives. Health is important to our customers and associates - and as a food retailer, we can play an important role in promoting healthy lifestyles. We have an opportunity to help our customers prevent and manage non- communicable diseases such as heart disease, diabetes, malnutrition, obesity and cancer.
We are working to create more nutritious private brand products and put easy-to- The Consumer Goods Forum Board Resolutions use nutrition information on our prod- on Health & Wellness ucts - all while pursuing the Group-wide health goals we have articulated. Taken in 1. “We will offer consumers and shoppers a range of products and whole, this work aligns with our support services that supports the goals of healthier diets and lifestyles of The Consumer Goods Forum’s resolu- 2. We will provide transparent, fact-based information that will help tions on health and wellness. consumers and shoppers make informed product choices and usages In addition, we continue to emphasize adherence to stringent food safety stand- 3. We will use communication and educational programs to help raise ards. We rigorously track private brand consumer awareness on health and wellness and energy balance suppliers’ compliance with these stand- to inspire healthier diets and lifestyles” ards and, when necessary, replace sup- pliers that do not meet our food safety For more information: requirements.
healthandwellness.mycgforum.com
our 2020 Goals: health 2012 Progress GOALS Continue to apply clear nutritional 94% of European private brand & PROGRESS labeling on our private brand products products have GDA labels Improve the nutritional quality of our Reformulated products to reduce fat private brand products, including and sodium reducing negative elements and increasing positive elements Audit all private brand suppliers for 79% of private brand suppliers food safety compliance audited for food safety by a third- party auditor against GFSI standards 12% of private brand suppliers audited for food safety against other food safety standards
www.delhaizegroup.com/sustainabilityreport/2012 SUSTAINABILITY PROGRESS REPORT 2012 // PERFORMANCE // sustainable private brands // 30 Nutritional Value product development process relies on Likewise, Delhaize Belgium continues to input from nutritionists, who help create reformulate its private brand products. In As ailments and diseases such as obesity, healthy new products and assess exist- 2012, Delhaize Belgium worked to replace diabetes and malnutrition continue to af- ing products that can be reformulated to palm oil with sunflower oil in all D” elhaize” fect our customers, the nutritional value improve their health profile. In 2012, we brand frozen French fries. In addition, the of our private brand products becomes continued to reformulate private brand fat in its line of deli meal components increasingly important. That’s why our products across our operating compa- was reduced by 12 tonnes without com- nies, reducing negative elements and promising on flavor. The company also increasing positive elements. collaborated with a Belgian supplier to introduce its first pastry sweetened with Delhaize America continued to reduce stevia, a sweet leaf plant, resulting in 90% sodium in line with its partnership with the less sugar, and extended its assortment National Salt Reduction Initiative (NSRI), of vegetarian meat-alternatives, such as a voluntary industry action that aims to veggie burgers, from 58 to 78. reduce Americans’ sodium intake by 20% over five years. Delhaize America has reduced sodium in 13 of the 17 product categories it focused on for reduction. That effort reduced the total average weighted sodium in those categories as compared to 2009 baseline data. For example, the entire “My Essentials” line of frozen waffles was reformulated, effec- tively eliminating 940 pounds of sodium from this category each year. Delhaize America continues to work toward its 2014 NSRI targets.
Labeling Greece and Romania, all new private brand products on which GDAs can be percentage of private brands Product labeling is a key way in which applied are labeled. In 2012, Delhaize products with gda label at our we communicate health information to Serbia began adding GDA labeling to european operating companies* customers. We aim to create clear, simple its private brand products. nutritional labels that are easily under- stood. In our European operations, we use the Guideline Daily Amount (GDA) labeling system, which shows the num- ber of calories and grams of sugars, fat, saturated fat and salt per portion of food and expresses those quantities as a per- centage of the GDA. The adoption of GDA 60% 80% 94% labeling on private brand products is at 10 11 12 98% at both Delhaize Belgium and Mega *Includes Delhaize Belgium, Image in Romania, and at 79% at Alfa Mega Image and Alfa Beta Beta in Greece. Additionally, in Belgium,
www.delhaizegroup.com/sustainabilityreport/2012 SUSTAINABILITY PROGRESS REPORT 2012 // PERFORMANCE // sustainable private brands // 31 Private brand products at Delhaize Amer- calorie, saturated fat, sodium and sugar America launched a Guiding Stars app ica’s banners use the Guiding Stars la- information. In 2012, Delhaize America that allows shoppers to scan products to beling program, which awards stars to completed the process of phasing out old get nutritional information. products based on their nutritional profile, packaging and adding a Guiding Stars as well as Nutrition Keys, a front-of-pack icon to all private brand products that Read more about these efforts nutrition labeling system that provides earned stars. in our case study, “Health and Wellness Check-Up: Our In addition, we post private brand prod- Latest Efforts to Encourage uct information on our websites, and Healthy Lifestyles.” offer other tools to help customers ad- dress their nutritional needs. Mega Im- Read more about these efforts age used social media posts as well as in the Healthy Lifestyles its website and customer newsletter to chapter of this report. provide advice on healthy eating. It also launched a mobile app with a health and nutrition section, and began using QR codes, which customers can scan to get information about healthy food. Delhaize
Delhaize America: 28% of private brand food sales from products that earned at least one star.
Food Safety Food Safety Audited Suppliers*
As a supermarket, excellence in food 2010 2011 2012 safety is non-negotiable. We require that our private brand suppliers meet the % private brand suppliers audited for 82% 85% highest food safety standards, many of food safety – against GFSI standard or which go beyond local food safety regula- equivalent strict criteria tions. We are pleased to report that 79% of private brand suppliers’ production % private brand suppliers audited for food 79% sites are certified under the Global Food safety by a third-party auditor - against Safety Initiative (GFSI), a program man- GFSI standard aged by The Consumer Goods Forum. % private brand suppliers audited for food 12% In 2012, we reviewed our food safety audit safety against other food safety standards tracking and determined that we could * Excluding Delhaize Serbia, Bosnia and Herzegovina, Montenegro and Bulgaria collect more accurate data by distinguish- ing between different types of food safety audits: GFSI standards are the industry’s At Delhaize Belgium, 99% of private collaborate with a group of private brand best-in-class food safety standards. Third- brand suppliers are certified under GFSI. suppliers to work toward GFSI certification. party audits against GFSI standards are Meanwhile, in 2012 Delhaize America conducted by external auditors. See the transitioned to a more robust tracking table below for detailed results. system, under which 76% of its private brand suppliers were certified under GFSI. We continue to identify, evaluate and, if Delhaize Serbia: won “Najbolje necessary, replace those suppliers that In 2012, Delhaize Serbia aligned its private iz Srbije” (Best of Serbia) from the do not meet GFSI standards or equivalent brand food safety strategy with that of the Serbian Ministry of Trade and strict criteria. At the same time, we col- Group. In 2013, it will focus on implement- Chamber of Commerce for its laborate with suppliers that are willing to ing that strategy for its private brand prod- private brand products. move toward GFSI certification. ucts. In particular, Delhaize Serbia plans to
www.delhaizegroup.com/sustainabilityreport/2012 SUSTAINABILITY PROGRESS REPORT 2012 // PERFORMANCE // sustainable private brands // 32 environmental
We are continuously working to minimize the environmental impacts of our products. Through our commitment to responsible sourcing, packaging, manufacturing and transportation of our products, we have continued to achieve growth in our business while creating a more positive global impact. Our goals, such as helping to achieve zero net deforestation and reaching 100% sustainably sourced seafood, are prime examples of strategies that benefit the environment while ensuring future supply security for our private brand products.
When we analyze products’ environmen- Some of our private brand ranges are tal impact, we consider every stage of the already dedicated to meeting the highest EUR 174 million, or 3% of our value chain. We look at impacts on waste standards in environmental performance. sales from private brand (from production, packaging, retail and These include “Eco” and “Bio” in Belgium, products with a sustainable consumption), greenhouse gas emis- “Terra Leaf” and “Bio” in Greece, “Bio” in label*. sions, water, biodiversity and land use. Bulgaria, Indonesia, Serbia and Romania, As we move toward our 2020 ambition, and “Nature’s Place” in the U.S. These *Sustainable labels based on both environmental and social we aim to lessen those impacts across clearly defined product ranges carry a criteria all our private brand product ranges. In distinct label or brand based on specific 2012, we started to involve private brand environmental standards (such as certi- suppliers in the analysis process. We will fied organic, or the EU eco-label). continue to work with them to identify product improvements that address the environmental impacts we have targeted.
our 2020 Goals: environmental 2012 Progress GOALS Use only sustainable palm oil for our Delhaize Belgium: More than 80% of & PROGRESS private brand products ** - December private brand food products evaluated 2015 Delhaize Belgium: Approximately 20% of the palm oil used for our pri- vate brand food products is certified sustainable Develop operating company- Delhaize America: 100% fresh, specific sustainable seafood policies frozen and canned seafood is and implementation plans towards assessed against the company the Delhaize Group Sustainable policy and is fully traceable to the Seafood vision wild fishery or farm of origin Delhaize Belgium: 100% of fresh and 80% of frozen seafood is sustainably sourced, in accordance with the company policy
www.delhaizegroup.com/sustainabilityreport/2012 SUSTAINABILITY PROGRESS REPORT 2012 // PERFORMANCE // sustainable private brands // 33 Deforestation The Consumer Goods Forum Board Resolution Key global commodities rely heavily on on Deforestation new plantations in the tropics, which “As the Board of The Consumer Goods Forum we pledge to mobilise are often created by cutting down high conservation value rainforest to produce resources within our respective businesses to help achieve zero net palm oil, soy or timber for pulp and pa- deforestation by 2020. per. These actions contribute to climate We will achieve this both by individual company initiatives and by working change, creating 20% of the world’s collectively in partnership with governments and Non-Governmental greenhouse gas emissions. They also Organizations (NGOs). Together we will develop specific, time bound destroy important habitats. Delhaize and cost effective action plans for the different challenges in sourcing Group’s objective is to discontinue sourc- commodities like palm oil, soya, beef, paper and board in a sustainable ing products and ingredients from regions fashion. We will also work with other stakeholders - NGOs, Development that are being deforested and to form Banks, Governments, etc. - to create funding mechanisms and other industry partnerships that build broader transparency and sustainability within the practical schemes that will incentivise and assist forested countries to supply chain. Our deforestation objective conserve their natural assets and enable them to achieve the goal of is linked to The Consumer Goods Forum’s zero net deforestation, whilst at the same time meeting their goals for (CGF) board resolution on deforestation, economic development.” and we are aligned with the retailers and manufacturers working with the CGF to For more information: stop sourcing products that are linked to deforestation.
This year, our primary achievement in moving toward zero net deforestation sustainability.mycgforum.com/deforestation.html was to increase transparency in our sourcing of palm oil. This allows us to see which of our products include palm oil and where the oil is coming from. to replace palm oil with sunflower oil or Read more about Delhaize So far, Delhaize Belgium has evaluated rapeseed oil. When substitution is not Belgium’s work in our case more than 80% of its private brand food possible, and when the quality of the study, “In Pursuit of products, documenting usage of palm product demands the use of palm oil, Sustainable Palm Oil.” oil and assessing its sustainability. Del- Delhaize Belgium requires suppliers to haize Belgium looked for opportunities use certified sustainable palm oil.
We have also built strategic partnerships In 2012, we began analyzing our sourcing mapping our supply chain and adopt- with suppliers and industry stakeholders of other commodities, such as paper, that ing sourcing policies and practices that in order to access critical supply chain are linked to global deforestation through ensure our private brand products do information. In 2012, Delhaize Group a new partnership with The Forest Trust not contribute to global deforestation. joined the Roundtable for Responsible (TFT). We started the partnership with Soy (RTRS), an international collaboration a focus on Indonesia, which has been dedicated to developing and certifying significantly impacted by deforestation. sustainable soy. Through our support of The first step was mapping the supply RTRS and our work with private brand chain for palm oil and paper products suppliers to understand soy in our supply that may have links to deforestation. As chain, we aim to increase use of sustain- we move toward our 2020 objective of able soy in our supply chain. zero net deforestation, we will continue
www.delhaizegroup.com/sustainabilityreport/2012 SUSTAINABILITY PROGRESS REPORT 2012 // PERFORMANCE // sustainable private brands // 34 area. We are proud to report that both operating companies achieved sustain- Frequently Asked Questions Are all seafood products sold at Sweetbay able seafoodstores traceable? milestones in 2012—one of What does Sweetbay’s sustainable seafood our most significant sustainable sourc- policy mean? Every seafood product in the store is fully ing successes.traceable, whether Effective it’s located March in the 31 fresh,, 2012, We will sell products harvested using legal all fresh,frozen frozen or grocery and departments. canned seafood means in regulated environments and will work proactively with the industry to encourage productsWhy sold doesn’t in DSweetbayelhaize ban A themerica sale of storescertain investment in gear and farming technologies species? that reduce seafood production’s impact on thehave been assessed against Delhaize environment. Sweetbay will aim to prioritize itsA merica’sSweetbay sustainable recognizes that seafood there are fisheries policy sourcing to fisheries that are harvested to ensure and farms that are well managed, and others long-term sustainability. Every wild-caught (Food Lthation aren’t., Hannaford To encourage, theSweetbay producers ) and seafood item will come from a fishery protected that act responsibly, Sweetbay won’t ban an by an enforceable science-based managementare fullyentire traceable species due to problems their wildwith a specificfishery plan. These management plans govern the or farmfishery. of origin. Instead, we’ll work with our suppliers Information about Sustainableamount, S timingeafood and method of harvesting to to find sources that comply with our policy for ensure that seafood populations will continue sustainable practices and traceability. If we can’t Sweetbay’s policy for to be healthy well into the future. Farmed items find those sources, we won’t sell the product. Demand for seafoodare required continues to be Best Aquaculture to grow Practices in A nd from the end of 2012 onward, Del- all markets, but(BAP) many certified. global All products fisheries are required and to haizebe BWhereelgium does stores the Sweetbay only seafood offer sourcingsustain - aquaculture operationstraceable back toare the notsource managed fishery or farm. ably caughtpolicy rank fresh compared fish. Dtoelhaize other grocers? Belgium Sustainable sustainably. WeHow canwant I tell all which the products seafood meet weSweetbay’s also aspiresSweetbay’s to sustainablesustainably seafood source policy covers all of sustainability criteria? the widest range of products among major sell to be sustainably sourced and are its frozenU.S. groceryand cannedcompanies withfish, more in than accord 2,500 - Seafood All food products in our seafood department, seafood items in compliance with our policy. committed togrocery using aisles, sourcing and frozen policies department, that where ance with its sustainable seafood policy support healthy,seafood sustainable is the primary ingredient, fisheries will formeet the(D elhaize Belgique, Delhaize België). As standards outlined in our policy...... generations to come. As a result, we have of November 2012, 80% of frozen fish How does Sweetbay know whether the seafood articulated ait Dsellselhaize complies Group with its policy? Vision for was alreadyWant to sustainably learn more about sourced. Sweetbay’s In 2013, Sustainable Seafood: Working together Delhaizesustainable Belgium seafood aims policy to and reach where specific 100% Sweetbay is requiring full traceability for all the seafood products sold at Sweetbay came from? with our suppliers,seafood itcustomers sells to ensure andwe know expert where it wassustainable frozen fish. harvested. We also work with the Gulf of Maine Our complete sustainable seafood organizationsResearch we are Institute committed to confirm the to fisheries en- that purchasing policy is available at suring that seafoodsupply our isseafood harvested are responsibly at levels managed. SweetbaySupermarket.com/seafood, along For farmed products, we are requiring with more information and frequently asked that maintaincertification their availability to the Global Aquaculture for both Alliances questions. To Rlearnead where more a specific about product these Best Aquaculture Practices (BAP) standard. we sell comes from, customers can email us present and future generations. through our “Askoperating the Seafood Expert”companies’ link on SweetbaySupermarket.com/seafood.achievements in sustainable Both Delhaize America and Delhaize Bel- seafood in our case study, gium have developed sustainable sea- “Two Sound Approaches to food policies to guide their work in this Sustainable Seafood”.
SSF_BROCHURE.indd 1 11/16/12 11:35 AM
Delhaize America: all fresh, frozen and canned seafood products are assessed against the company’s Sustainable Seafood Policy (and are fully traceable to their wild fishery or farm of origin).
Delhaize Belgium: 100% of fresh seafood products are sustainably sourced, as defined by the company’s Sustainable Seafood Policy.
Includes both private brands and national brands products
Our operating companies in Southeast Collaborations with scientific partners, Europe and Indonesia are at the begin- including the World Wide Fund for Nature ning of their journeys toward sustainable (WWF), the Sustainable Fisheries Partner- seafood. For example, Mega Image in ship, Stichting De Noordzee and the Gulf Romania aims to improve its ability to of Maine Research Institute, have been trace seafood ingredients and encourage critical in our efforts to develop sustain- the adoption of sustainable fishing prac- able seafood harvest protocols. tices. In 2012, it took an important step forward, surveying its private label fish suppliers to evaluate sourcing throughout the supply chain.
www.delhaizegroup.com/sustainabilityreport/2012 SUSTAINABILITY PROGRESS REPORT 2012 // PERFORMANCE // sustainable private brands // 35 social
It is our responsibility to ensure that strong, consistent human rights protections are in effect across our entire supply chain. This social component is an integral piece of sustainability. Continuing to develop strong partnerships with suppliers and working with third-party auditors will help us to set and maintain high standards of conduct throughout the supply chain.
We also believe that we can and should tion capacity, we believe the value those support local communities through our suppliers provide is worth the challenge. Delhaize Belgium: carries 74 product sourcing. While working with lo- In addition, we are dedicated to carrying fairtrade-certified food products. cal suppliers can present some challeng- private brand products that are fairtrade es due to their size and limited produc- certified.
our 2020 Goal: social 2012 Progress GOALS Ensure that all our private brand Delhaize Belgium: 17% of sales of pri- & PROGRESS suppliers in at-risk countries are vate brand products that are sourced audited against social compliance from at-risk countries are produced standards in sites audited against BSCI or come from suppliers that are BSCI members
Social Compliance Delhaize Group Terms of Engagement We are committed to carrying private brand products that are manufactured Our Terms of Engagement are aligned with the Business Social under safe and healthy working con- Compliance Initiative (BSCI) Code, which addresses the following topics: ditions. As a result, we are working to ensure that private brand suppliers in • Freedom of Association and the Right to Collective Bargaining at-risk countries as defined by the Busi- • Prohibition of Discrimination ness Social Compliance Initiative (BSCI) are audited against BSCI or equivalent • Compensation social compliance standards. • Working Hours
We are working toward having all private • Workplace Health and Safety brand suppliers endorse the Delhaize • Prohibition of Child Labor Group Terms of Engagement as part of the • Prohibition of Forced Labor and Disciplinary Measures private brand contract in each of our op- erating companies. This document, which • Respect for the Environment is based on the BSCI Code of Conduct • Prohibition of Bribery and Corruption. requirements and approach, addresses issues such as child labor, discrimination For further information: www.bsci-int.org and maximum working hours.
www.delhaizegroup.com/sustainabilityreport/2012 SUSTAINABILITY PROGRESS REPORT 2012 // PERFORMANCE // sustainable private brands // 36 In Belgium and Greece, 84% and 90% of private brand suppliers, respectively, have Delhaize Belgium: 17% of sales endorsed our Terms of Engagement. We of private brand products introduced the Terms of Engagement to that are sourced from at-risk private brand suppliers in the U.S., and countries are produced in sites expect to see an increase in the number audited against BSCI or come of suppliers that have endorsed them in from suppliers that are BSCI 2013. Likewise, we plan to introduce the Terms of Engagement to private brand members. suppliers in Romania and Serbia in 2013.
The advantage of our Terms of Engage- ment is that it provides suppliers flexibility to use audit processes that are equiva- lent to BSCI standards. BSCI supports this approach and recognizes the need to consider other social standards to avoid suppliers needing duplicate audits.
One of the challenges we face is defin- ing which standards, and which audit processes, are equivalent to BSCI. Our membership in the Global Social Com- pliance Program (GSCP), a program of The Consumer Goods Forum, will help us overcome this challenge, as GSCP con- ducts objective, independent evaluations of the various social audit schemes. Del- haize Group intends to use the outcomes of this process as more companies and initiatives participate in it. Doing so will strengthen our existing internal assess- ment process.
We are also working with suppliers that social audit information at the production other social standards. We will target the source private brand products from at- site level. In 2012, we began to overcome remaining sites for audits in 2013 and the risk countries to determine whether their this challenge by working with our buy- coming years. production sites are audited using a so- ers and suppliers to gather information cial audit scheme that is equivalent to about social audits. We are working to implement a similar the BSCI standard. If they are not, we approach at our other operating com- require them to take advantage of BSCI’s This process allowed us to identify suppli- panies, with Delhaize America taking capacity-building and audit process. ers to Delhaize Belgium and to Alfa Beta priority. in Greece that have production sites in This process has been complicated by at-risk countries. Some of these suppli- the fact that our systems do not yet track ers are already audited against BSCI or
www.delhaizegroup.com/sustainabilityreport/2012 SUSTAINABILITY PROGRESS REPORT 2012 // PERFORMANCE // sustainable private brands // 37 Local Products
Lî payîs dî Lîdje
Bière liègeoise Curtius, Herve à la bière, Microbrasserie Herve Société s.a. de la Principauté sprl
Queue-Du-Bois Liege HeRVe
BeAuFAYs THeuX
Boncafé moka, Mokaturc «Kortrijk-dUtsel is een uniek, levend natuurbier van 8,5° «Kolen, knolselder en ajuin, vers uit Wevelgemse grond. dat heerlijk is om als aperitief te drinken» Fleur de Daar staan wij voor.» Franchimont, Maquée de campagne, Regal s.a. Vins et Elixirs de Valerie Stoens en Jürgen Bessendorffer, Brouwerij Kortrijk-Dutsel, leveranciers van Delhaize Franchimont s.p.r.l.
• fait de façon artisanale Stephan et Christophe Bosschaert, leveranciers van Delhaize et avec passion • par un expert local • de votre région
Customers across our markets continue In Romania, the Mega Image Garden to seek out local products, in part be- Project used social media to promote the cause they understand the economic and values of “Gusturi Romanesti”, its brand of environmental benefits of local sourcing. products grown or manufactured by local Our operating companies continued to producers. Throughout the campaign, make progress in expanding and promot- which focused on fruit and vegetables, ing their array of locally sourced goods nearly 7 000 unique users “grew” more as is appropriate in their local markets. than 135 000 crops in the Mega Image For example, Delhaize Belgium sources Garden game on Facebook. local ingredients, such as milk and meat, for some of its private brand products. Some operating companies also have lo- cal private brand ranges, such as “Gusturi Romanesti” at Mega Image in Romania and “Close to Greek Nature” at Alfa Beta.
In addition, Delhaize Serbia launched the “Gajeno u Srbiji” (“Grown in Serbia”) campaign, which promotes healthy fruit and vegetables grown in the country, and the “Green Ring” label, which indi- cates produce that is available in stores less than 24 hours after it was har- vested. In the latter program, Delhaize Serbia collaborates with local farmers throughout the production process, from seed selection to packaging. As a result, the entire supply chain is traceable and secure.
www.delhaizegroup.com/sustainabilityreport/2012 SUSTAINABILITY PROGRESS REPORT 2012 // PERFORMANCE // sustainable private brands // 38 performance zero waste
Introduction
We produce waste and, in most cases, pay for its disposal. Waste is money. Avoiding, reducing, reusing, recycling, and transforming waste increases our efficiency and reduces our costs while improving the environment.
Our journey to Supergood includes our recycling and other waste management Delhaize Group created the Zero Waste ambition to move toward zero waste, an tactics. At the same time, we have op- Working Group in 2012 to accelerate mov- approach in which any discarded ma- portunities within our stores, offices and ing our own operations to zero waste. terials become raw materials for other distribution centers to reuse, transform, Group members, including associates processes, rather than garbage. This or recycle products that would otherwise from each of our banners, track quarterly process involves looking both upstream be added to a landfill. These tactics will metrics related to waste and recycling – at sourcing, packaging and transporta- help us simultaneously reduce our envi- and share best practices. At their recom- tion policies and practices that minimize ronmental impact, enhance our financial mendation, we adopted a waste reduc- waste – and downstream, giving our performance and improve our efficiency. tion hierarchy: customers information and support for
Use waste as Incineration with Prevent waste Reduce waste Use object / material material for new energy recovery / generation generation again products biological conversion
www.delhaizegroup.com/sustainabilityreport/2012 SUSTAINABILITY PROGRESS REPORT 2012 // PERFORMANCE // ZERO WASTE // 39 Opportunities to Make tention to food safety, as well as the While the waste reduction hierarchy Changes foresight to envision other uses for guides our efforts across the Group, re- items that have typically been thrown gional variations mean that our operating At every step of the value chain, we con- away. For example, Delhaize Belgium companies face different challenges, as tinually look for opportunities to make reuses plastic crates in its distribution well as differing levels of supplier en- changes at the highest possible level in centers, rather than using disposable gagement and consumer awareness. the hierarchy. containers. Despite those challenges, Delhaize Bul- • Avoiding waste clearly is the optimum • Recycling is well established across garia, Delhaize Serbia and Mega Image strategy for reducing environmental im- the Group. Our operating companies in Romania have achieved savings from pact and costs. We seek to avoid shrink have run recycling programs for years. projets that avoid waste. Efforts at Del- (the loss of product due to error, theft, Beyond cardboard recycling, we also haize America have just begun, yet solid or product damage) in our stores with recycle plastic, paper, wood, metal and waste disposal costs have decreased by methods such as improved ordering. other materials where possible. USD 840 000 and waste going to landfill reduced by 8% from 2011 to 2012. And To avoid waste, we apply creativity and • Transforming waste means using Alfa Beta in Greece has made significant innovation to figure out new ways to waste to create a new resource, such strides toward understanding and quan- keep products from becoming waste. as energy. For example, Delhaize Bel- tifying its waste stream. • Reducing waste means thinking crea- gium is transforming organic waste into energy through biomethanisation, tively about ways to minimize the waste Read more about these efforts we produce. For example, Delhaize and one of Delhaize America’s banners in our case study “A New Belgium is working on a pilot program is working with a vendor to turn food Recipe for Waste Reduction”. to provide select dry foods, fresh foods waste into compost. that are about to reach their sell-by • Landfills are only used when all other dates, and frozen bread daily to groups possibilities have been exhausted. that will distribute them to the needy Garbage is buried at these waste dis- Delhaize America: waste going on the same day. posal sites. However, landfills produce to landfill reduced by 8% from • Reusing items that would otherwise hazardous emissions and contribute to 2011 to 2012. become waste requires stringent at- climate change.
Global We will move our own operations to zero waste, partner with suppliers to 2020 reduce waste and engage our customers to reduce waste ambition 2013 Set goals at each operating company for moving to zero waste in our operations steps
risks & risks opportunities opportunities • Waste handling practices • Better local partnerships that help us compromising food safety donate more of the food we don’t sell • Reputational risk of not being an active • Reducing costs and generating new player in decreasing food waste income streams • Packaging changes/reductions • Raising customer awareness of generate less protection for the resource use and recycling products and are less attractive from a • Waste reduction innovations that can marketing point of view set an example for our industry
www.delhaizegroup.com/sustainabilityreport/2012 SUSTAINABILITY PROGRESS REPORT 2012 // PERFORMANCE // ZERO WASTE // 40 reducing, reusing and recycling
We have had solid waste reduction and recycling practices for years, maintaining a recycling rate of just over 50% for the past five years. We have a good foundation, but we can do a lot better. To accelerate waste reduction we set an ambitious goal of moving to zero waste by 2020. We are starting with a two- pronged approach – boosting awareness and improving accessibility to recycling programs. Promoting recycling practices, both to our associates and within our communities, is a cornerstone of Delhaize Group’s move to zero waste.
Total waste recycled* Total Total waste generated** waste sent to landfill** (tonnes) (tonnes)
51% 51% 52% 53% 53% 433 430 411 721 404 291 209 914 192 632 166 102 08 09 10 11 12 10 11 12 10 11 12
*Data represents 92% scope coverage **Data represents 90% scope coverage
Our companies in Greece, Serbia, the U.S. and Bulgaria led the way in 2012 with diverse initiatives to change recycling behavior. To create the most strategic and effective zero waste plans for its stores, Alfa Beta conducted an audit of the type and quantity of its waste generation. That data will serve as a baseline measure- ment as Alfa Beta develops plans for future waste-reduction initiatives.
Delhaize Serbia focused on educating as- sociates at its stores, distribution centers and headquarters about the importance of recycling. As a result, Delhaize Serbia collected 4 824 tonnes of recyclables and increased the collection rate of cardboard and plastic in its operations by 20% over 2011.
www.delhaizegroup.com/sustainabilityreport/2012 SUSTAINABILITY PROGRESS REPORT 2012 // PERFORMANCE // ZERO WASTE // 41 The M2Z project’s focus on increasing Over time, Delhaize America expects Delhaize America, Delhaize food waste diversion involved two differ- M2Z to reduce solid waste volume and Belgium and Mega Image: 219 ent programs. At the start of 2012, 100 increase recycling, both by approximately 545 metric tonnes recycled. of the banner’s stores had implemented 30%. At the same time, M2Z will reduce composting programs. Over the course of solid waste disposal costs and increase Delhaize America and Delhaize the year, another 18 stores began sending recycling income. Belgium: 21% less waste to their food waste to an anaerobic diges- landfill since 2010. tion system, bringing the total number of Recycling income: EUR 20 million Hannaford stores on a food waste diver- in 2012. sion program to 118. (Additional details about progress in this area can be found in the Food Waste section that follows.)
In the most ambitious initiative of 2012, Associate engagement in the M2Z goals Delhaize America launched “Moving to happens in several venues. Each store Zero Waste” (M2Z), a waste reduction has a five-member Sustainability Team program that saved USD 250 000 across with a designated Sustainability Lead who 181 Hannaford stores in just the last quar- is responsible for promoting this work. ter of 2012, while significantly boosting M2Z also created guidebooks and com- recycling rates. M2Z focuses on three munications boards to inform associates elements: better execution of recycling about the program’s components, and standard practices, food waste diversion each store has a specific waste reduc- and associate engagement. During 2012, tion target. the M2Z team updated standard practice documents to ensure they reflect the ban- Following Hannaford’s lead, Sweetbay ner’s priorities regarding recycling food in November started an M2Z pilot in one 11 Hannaford stores certified as waste, cardboard, paper and plastics. district. In the first two months of the pi- Environmental Leaders by Maine lot, the 12-store district had already in- Department of Environmental As a result of these efforts, Hannaford creased its recycling rates in corrugated Protection. stores dramatically improved recycling cardboard, paper, and waxed cardboard rigid plastics, such as frosting buckets, from the baseline. Sweetbay plans to roll seafood trays and deli salad containers. out the program to other stores in 2013.
Engaging Customers in programs and new bag lines, disposable Waste Reduction number of non-reusable bag usage has also risen. carrier bags distributed* We have an opportunity to help our cus- (in millions) In 2012, the Piccadilly tomers understand the importance of banner launched waste reduction - and to provide practical Bulgaria’s first Rent- assistance as they take steps to reduce a-Bag program: Cus- their own waste. tomers are charged a nominal fee to buy Plastic grocery bags present a large single-use plastic landfill problem, since they have only bags, and then re- a 1% recycling rate worldwide. Delhaize funded the money if they bring the bags 2 404 2 396 2 414 Group offers reusable bags in all of our back on their next visit. Piccadilly then markets, but reducing customer reliance 10 11 12 recycles the bags and reintroduces them on single-use bags remains a challenge. *Non-reusable carrier bags include in its stores. By the end of the year, the While our banners have seen an increase photodegradable, oxo-biodegradable, program reduced single-use plastic bag in usage of reusable bags due to our pilot biodegradable, paper and plastic bags usage by 70%.
www.delhaizegroup.com/sustainabilityreport/2012 SUSTAINABILITY PROGRESS REPORT 2012 // PERFORMANCE // ZERO WASTE // 42 Delhaize Serbia became the first ma- jor retailer in that country to introduce reusable bags. In mid-November the company launched a three-month test in two stores in Belgrade. For the first two weeks, it gave out reusable bags for free. In week three, it began charging for both reusable and disposable bags. Internal and external communications campaigns also informed customers and associates about the waste produced by plastic bags. Delhaize Serbia will evaluate the results of the program in 2013.
Fost Plus rewarded Delhaize Belgium with Greener Packaging Award for its efforts to reduce ecological impact of packaging.
tion gave plant seedlings to everyone To help customers reduce waste at home, who brought recyclables. By the end of Mega Image: 3rd Place for Delhaize Belgium implemented a plan to the year, stores had collected 1 487 kg Waste Management from Green reduce its packaging. In 2012, the com- of PET plastics, 703 kg of glass, and 26 Business Index. pany redesigned some product packag- kg of metal for recycling. Delhaize Ser- ing to use more sustainable materials, bia plans to keep the containers in place such as FSC-certified cardboard. One through 2013 and beyond, and expand packaging redesign reduced the amount the program to additional stores. of plastic used by 108 tonnes, reducing packaging weight. Delhaize Belgium Mega Image, in Romania rolled out new also developed sustainable packaging recycling centers in 10 stores under the guidelines, and launched programs to umbrella campaign, “This store pro- raise awareness of sustainable packag- tects the environment.” The banner also ing among its packaging team and cat- received an award for effective waste egory managers. These efforts won the management from the Green Business company a Greener Packaging Award. Index. Alfa Beta, meanwhile, continued to expand its successful customer recycling On the recycling front, Tempo stores in center program, which aims to increase Serbia partnered with packaging recy- customer awareness about the benefits clers to start a customer awareness cam- of recycling. Customers who participate paign. Beginning in May, stores put out in the program can earn discounts at special containers where customers and Alfa Beta stores - or automatically donate store associates could recycle packaging the cash equivalent to “To Hamogelo Tou waste, and during a three-week promo- Paidiou”, a Greek children’s charity.
www.delhaizegroup.com/sustainabilityreport/2012 SUSTAINABILITY PROGRESS REPORT 2012 // PERFORMANCE // ZERO WASTE // 43 food waste
At least one third of the world’s food goes to waste each year, creating an estimated 1.3 billion tonnes of landfill-bound garbage, according to the United Nations. In 2012, Delhaize Group addressed the challenge of reducing food waste directly. In Europe and the U.S., our operating companies designed innovative campaigns to use, repurpose and donate food that would otherwise go to waste.
in 2012. Two distribution centers and a While our companies created waste- Delhaize America and Delhaize number of stores in North Carolina, Vir- reduction programs at the retail level, Belgium: recycled 14 484 tonnes ginia and New Jersey participated in the Delhaize Group made a formal commit- of food waste, 9% increase pilot programs. In May and June alone, ment to raise public awareness of food compared to 2011. one distribution center was able to divert waste in European markets. Along with more than 25 tons of food waste from other European companies participat- landfills. Food Lion and Bottom Dollar ing in the Retailers’ Environmental Ac- Delhaize Belgium, a longtime partner of Food will use the results of these tests tion Programme (REAP), we pledged to food banks, launched a test program in to develop a permanent system for food produce two awareness campaigns by three cities to provide a daily selection of waste diversion. 2014 to help change consumer behavior items, including fresh foods that had not regarding food consumption and waste. reached their sell-by date, to local food or- Meanwhile, 59 Hannaford stores con- We have already taken a small first step, ganizations. Volunteers from Saint-Vincent tracted with a vendor to remove food producing an article in Delhaize maga- de Paul Society arrived at the stores in waste and turn it into a retail compost zine that includes tips to help consumers the late afternoon to assemble the items product that is now sold at Hannaford reduce their own food waste. Delhaize for distribution that same day, providing stores - closing the loop for this resource. Belgium’s website also includes informa- healthy options for evening meals. All Hannaford stores donate edible but tion on how customers can properly store unsalable food to local food kitchens, refrigerated foods to keep them from As part of Delhaize America’s M2Z pro- and many stores also have partnerships going to waste. gram, Food Lion and Bottom Dollar Food with farms, which can use as livestock piloted food waste diversion programs feed excess food that cannot be donated.
www.delhaizegroup.com/sustainabilityreport/2012 SUSTAINABILITY PROGRESS REPORT 2012 // PERFORMANCE // ZERO WASTE // 44 performance healthy lifestyles
Introduction
We sell food, which is a source of nutrition and health for our customers, our associates and the communities in which we operate. We have held a longstanding commitment to help our associates and customers live healthier lifestyles and manage or prevent diseases and conditions such as obesity, diabetes and malnutrition.
Now, as we continue our journey to Supergood, we will further focus our ef- forts in this area to achieve our ambition of being one of the leading companies in supporting healthy lifestyles for associ- ates and customers. We believe it is our responsibility as an employer to invest in the health of our associates by providing access to health and wellness education and emphasizing preventive healthcare. This focus not only helps associates lead better lives, it enhances our overall busi- ness strategy. Healthy associates are more productive, more creative and better positioned to serve customers.
We also promote the well-being of our cus- tomers through initiatives such as fitness competitions, healthy eating classes and screenings for disease. Some of our ban- ners provide access to dietitians, guided nutritional tours and other programs to help customers navigate complex product choices. These efforts advance our mission to become a trusted source of health and wellness guidance for our customers. In addition, our efforts to encourage healthy lifestyles for associates and customers help us support The Consumer Goods Forum Board Resolutions on Health & Wellness. Read more about our commitment to these resolutions in the Sustainable Private Brands chapter of this report.
www.delhaizegroup.com/sustainabilityreport/2012 SUSTAINABILITY PROGRESS REPORT 2012 // PERFORMANCE // HEALTHY LIFESTYLES // 45 Each banner creates its own health and wellness programs that are informed by local requests and community-based partnerships. When we have successes, we share them across our companies to encourage more innovations. Even as we allow banners to implement their own health and wellness innovations, we are developing a more consistent way to share best practices across companies. Another major challenge is determin- ing the effectiveness of these programs, which is why we are working on creating performance standards that help evalu- ate program participation, health care savings and associate satisfaction.
Global We will be a leader in all of our local markets for empowering associates and 2020 customers to lead healthy lifestyles ambition
risks & risks opportunities opportunities • Reduced levels of customer service • Raising awareness about healthy from unwell or dissatisfied associates eating and becoming a trusted source • Not meeting the changing health and of advice for our customers nutritional needs of our customers • Reducing costs through innovative • Increased costs from associate associate wellbeing programs absenteeism and work-related • Increasing associates’ performance accidents through better physical and mental • Decreased loyalty from associates wellbeing and customers • Reinforcing healthy lifestyles with our associates by piloting customer programs
www.delhaizegroup.com/sustainabilityreport/2012 SUSTAINABILITY PROGRESS REPORT 2012 // PERFORMANCE // HEALTHY LIFESTYLES // 46 Associates
To meet our global ambition, our operating companies and banners have implemented specialized programs to address their associates’ specific health and wellness concerns. Delhaize Serbia supplied its associates and immediate family members with health center discounts. It also offered a seven-day paid resort vacation for single-parent associates and their children under 14, to promote family bonding and reduce the stress that many lower-income families experience.
For the 10th year, Alfa Beta offered its summer camp program for associates’ children. The camp allowed 600 children to spend three weeks in the country par- ticipating in a variety of sports.
Mega Image in Romania organized sev- eral massage sessions for corporate as- sociates, with the goal of reducing stress Many initiatives focus on access to health and offering tips on staying in shape and wellness information. For example, while working at a desk. Mega Image Delhaize America launched a “Know also began an internal communication Your Numbers” program that encour- campaign focused on healthy eating, the aged associates to visit their primary benefits of organic products such as its care physician for important tests such “Bio” private brand and the importance as cholesterol, blood pressure and blood of sports and exercise. glucose levels. Delhaize America also designed a benefits portal to serve as a Delhaize Belgium and Delhaize Group hub for associate health and wellness Corporate supported associates compet- information. In 2013 the benefits portal ing in several running events, such as the will include a “dashboard” that displays 20km of Brussels, the Brussels Marathon, data illustrating the operating company’s the Midsummer Night Run in Ghent and overall health status in several categories. the Think Pink Race for the Cure events, which were organized by a non-profit In addition, several Delhaize America organization working to raise awareness locations provided access to nurses and of breast cancer in Belgium. dietitians, and sponsored Weight Watch- ers meetings. Sweetbay provided health For more details about these programs information through a “Wellness Commu- and other health and wellness initiatives nications Board” at the corporate office, across Delhaize Group, which educated associates on maintain- ing healthy lifestyles and taking a proac- Read the case study “Health tive approach to their health. Sweetbay and Wellness Check-Up: Our also held “huddles” throughout the year Latest Efforts to Encourage Delhaize Serbia, Bosnia and Herzegovina, to educate associates on a variety of Healthy Lifestyles.” and Montenegro offered additional sup- health and wellness subjects. port to families by creating educational workshops and personal development Alfa Beta in Greece established a perma- programs for associates’ children. Specific nent collaboration with two independent programs included information to help medical centers to offer associates free or associates’ children select schools or find low-priced health care prevention screen- their first jobs, and classes that taught ings, such as cancer tests, allergy tests measures kids could take to protect the and general check-ups. More than 1 000 environment and promote sustainability. associates took advantage of the service.
www.delhaizegroup.com/sustainabilityreport/2012 SUSTAINABILITY PROGRESS REPORT 2012 // PERFORMANCE // HEALTHY LIFESTYLES // 47 customers
Encouraging our associates to live healthier lifestyles puts them in a better position to inform customers about health and wellness. Extending our wellness outreach to our customers helps them achieve healthier lifestyles and starts a valuable dialogue that can build loyalty. Throughout this process, we gain insight into our customers’ health needs and nutritional goals, as well as the products they want to buy. In 2012, our operating companies and banners created or continued several innovative customer outreach programs.
Super Indo stores in Indonesia continued to hold weekend aerobic exercise events, which attracted 50 to 100 customers in each of the 72 participating stores. They also held events several times a month to educate elementary school students about healthy foods and hygiene princi- ples. In April and May of 2012, Super Indo partnered with Posyandu, a community- based health care organization, to of- fer health and nutrition counseling and vaccination events to mothers and their young children.
Delhaize Serbia partnered with UNICEF to program Delhaize Serbia also held a cook- create a healthy eating campaign targeting ing workshop with a Belgrade kindergarten young children and adolescents. Messages class. The UNICEF partnership will continue about healthy eating were promoted in in 2013, when Delhaize Serbia plans to coor- Maxi stores, and on the Maxi website and dinate with the Ministry of Health to provide Facebook page. To raise awareness for the nutrition training in 30 health centers.
www.delhaizegroup.com/sustainabilityreport/2012 SUSTAINABILITY PROGRESS REPORT 2012 // PERFORMANCE // HEALTHY LIFESTYLES // 48 Delhaize Belgium piloted two approaches ers nutrition, wellness and healthy living, to educating customers about nutrition among other topics. Delhaize Belgium and healthy living. One approach used joined several other banners, including registered dietitians to provide guided Hannaford in the U.S. and Alfa Beta in tours of stores. In another effort, stores Greece, that produce similar magazines. displayed educational materials, includ- ing healthy recipe ideas, and access to Mega Image in Romania created a sec- dietitians who could answer questions tion called “The Specialist’s Advice” for its about healthy eating. Both programs customer newsletter. The new, perma- demonstrated that customers were nent section features a nutritionist pro- seeking practical advice for incorporat- viding expert guidance on nutrition and ing healthy foods into their lifestyles. healthy eating, “Bio” (organic) products and other wellness topics. The banner Delhaize Belgium also began producing a also developed a special section on its new customer magazine called Delhaize, website dedicated to recipes and advice which includes information on the quality for healthy living. of the food available in its stores and cov-
Delhaize America continued to advance Delhaize America released a new Guiding choices. Partnerships with a number of the Guiding Stars program, which awards Stars iPhone app that lets customers scan national brands helped defray the cost a product one to three stars depending barcodes to receive nutritional informa- of this service, which was highly valued on how it meets nutritional guidelines. tion on products. It also released data by Hannaford customers. Hannaford The company completed the process of showing how the Guiding Stars program also teamed with a local marathoner adding Guiding Stars icons on all private has influenced the marketplace since and Olympic gold medalist for the “No brand products that earned stars, which its launch in 2006: Roughly one-third of Finish Line” event, in which 50 individu- you can read about in the Sustainable the 100 000 private brand and national als who had shared stories about their Private Brands chapter of this report. The products in the Guiding Stars database inspiration for jogging participated in a company also secured patent protection - including products sold at Delhaize run with the Olympic celebrity. for the Guiding Stars algorithm in the U.S. America stores and at other companies and Canada, and licensed the program that use Guiding Stars - now earn at least to the largest retailer in Canada. one star. That’s up from just one quarter For more details about these of products five years ago. programs and other health In its own stores, Delhaize America fo- and wellness initiatives across cused on educating customers about Delhaize America’s Hannaford banner Delhaize Group, read the case how the program can help them quickly provided shoppers with in-store dieti- study “Health and Wellness assess the relative nutritional profile of tians to answer their health questions Check-Up: Our Latest Efforts to products and make healthier choices. and to assist them in making healthier Encourage Healthy Lifestyles.”
www.delhaizegroup.com/sustainabilityreport/2012 SUSTAINABILITY PROGRESS REPORT 2012 // PERFORMANCE // HEALTHY LIFESTYLES // 49 performance associate diversity
Introduction
As a global food retailer, we operate in a diverse range of communities and serve customers from all backgrounds and walks of life. Our business is strengthened when associates with different backgrounds, experiences and perspectives come together to serve our customers, so we are committed to developing an associate base that reflects and values the diversity of those communities.
Fostering diversity strengthens our busi- ness, helping us recruit, develop and re- tain strong associates who contribute to a culture of innovation, creativity and performance. A diverse associate base also creates greater affinity with our customers, and helps us fill our stores with a mix of people and products that represent the unique characteristics of our communities.
We recognize that diversity is broader than gender or race - it’s all-inclusive. So we seek associates with a combi- nation of genders, races, educational backgrounds, ages, cultures, sexual ori- entations, life circumstances, thinking styles and interests. All of our operating companies are committed to this focus on associate diversity, as is our Board of Directors. A second woman joined the Board in 2012, and a third woman will join in 2013. For this report we have chosen to highlight the work done at Delhaize America.
www.delhaizegroup.com/sustainabilityreport/2012 SUSTAINABILITY PROGRESS REPORT 2012 // PERFORMANCE // ASSOCIATE DIVERSITY // 50 Delhaize America has made significant progress on Diversity and Inclusion is- sues, having developed a strategy, struc- ture and programs to promote a diverse associate base. But as demographics change in our other regions - such as Europe, which is experiencing significant population migration - the progress made by Delhaize America will help us iden- tify approaches that can be adapted for our entire organization as we pursue our objective of establishing a Global Char- ter on Diversity for Delhaize Group. We know there will be challenges along the way. For example, diversity in Greece or Indonesia will look quite different than diversity in the U.S. But we are committed to developing strategies and programs that are best suited to the local needs of each of our communities.
Global We will embrace and foster Diversity and Inclusion across our business, and 2020 our associates will reflect the diversity of the communities in which we operate ambition
our 2020 Goal: Diversity & Inclusion 2012 Progress GOALS Develop and implement Diversity & Delhaize America: Diversity & Inclusion & PROGRESS Inclusion plans across all our plan in place, initiated cultural operating companies competence training
risks & risks opportunities opportunities • Losing or not attracting talent, resulting • Creating closer connections with the in higher turnover rates customers we serve • A workforce that does not reflect the • Finding innovative solutions by local communities fostering diversity of thought among • Customer perception that our associates associates do not represent their • Increasing loyalty by developing interests and values a diverse workforce with equal opportunities • Creating a high performing workforce fueled by an open and inclusive work environment
www.delhaizegroup.com/sustainabilityreport/2012 SUSTAINABILITY PROGRESS REPORT 2012 // PERFORMANCE // ASSOCIATE DIVERSITY // 51 diversity & inclusion
Delhaize America continued to advance its Diversity and Inclusion strategy in 2012. One focus area was helping associates understand the value of “diversity of thought” - the idea that people may approach the same question, problem or opportunity with unique ideas based on their different backgrounds. Embracing diversity of thought encourages creative thinking about distribution, product development and assortment, customer interactions and other aspects of our business.
our 2020 Goal: Diversity & Inclusion 2012 Progress GOALS Develop and implement Diversity & Delhaize America: Diversity & Inclusion & PROGRESS Inclusion plans across all our plan in place, initiated cultural operating companies competence training
Delhaize America included the “diversity and develops skills that enable man- banners about their experience with the of thought” concept during the 2012 cul- agers to value and empower a diverse company. The results of those surveys are tural competence training delivered to associate base, with the goal of satisfy- being analyzed in 2013 to identify where several groups, including managers from ing customers by meeting their diverse Delhaize America should focus additional Food Lion’s southern region and Bottom needs. Through cultural competence, we associate engagement efforts related to Dollar Food field managers. Cultural com- are creating an inclusive marketplace Diversity and Inclusion. petence education teaches managers the and workplace for all of our customers value of having knowledge and aware- and associates. ness of their own culture and the cultures of others, as well as being mindful and Encouraging deeper associate engage- respectful of the cultural differences in ment on diversity issues was another Delhaize America: 27% of our associate and customer base. This focus area in 2012, which is why Delhaize associates from ethnic minorities. understanding helps change behavior America surveyed associates at all its
April is Generations Month Delhaize America also developed an as- Delhaize America’s Diversity and Inclusion sociate engagement tool, the “Diversity Councils and Business Resource Groups and Inclusion Retail Continuum”, to il- (BRGs) also identified opportunities to lustrate how our organization is evolving incorporate a Diversity and Inclusion into a more welcoming, inclusive and pro- agenda in business operations, and to ductive environment for associates and engage associates on diversity issues. customers. The continuum uses phases For example, Sweetbay’s Diversity and mentoring is for all ages. such as “Awareness of,” “Integrating,” Inclusion Council helped coordinate an “Practicing” and “Leveraging” diversity to initiative to strengthen ties with the Latino create a productive, profitable and wel- community through changes to product coming environment. The continuum can mix and merchandising, special events be used to help associates assess their and outreach to Latino radio, television own or their store’s progress in creating and community organizations. a diverse and inclusive workplace. The teaching tool was used in several set-
Brought to you by the Generations Business Resource Group tings, including manager meetings with Sweetbay’s president, Mike Vail.
www.delhaizegroup.com/sustainabilityreport/2012 SUSTAINABILITY PROGRESS REPORT 2012 // PERFORMANCE // ASSOCIATE DIVERSITY // 52 Delhaize America’s Distribution/Trans- • The Veterans and Military Personnel • The Women’s BRG organized clothing portation Operations developed Diversity BRG developed a Veterans Day pro- drives and provided donations to wom- and Inclusion training programs for as- motion that gave a 12% discount for en’s shelters. The BRG also continued sociates and participated in events such veterans and active military person- its affiliation with NEW (the Network as tutoring at a local elementary school, nel at Food Lion, Harveys and Reid’s of Executive Women), with Meg Ham, celebrating Hispanic/Latino cultural herit- stores, which resulted in USD 414 000 president of Bottom Dollar Food, serving age and participating in recruiting efforts in discounts to nearly 81 000 customers. on the NEW Board of Directors. to attract a diverse associate base. Food Lion also donated USD 925 000 to • The African American BRG hosted back- the non-profit Wounded Warrior Project. to-school events at local colleges and At Food Lion, BRGs focused on the inter- • The Friends LGBTA BRG supported local universities, providing gift bags for stu- ests and issues of 10 different groups: Pride celebrations in several communi- dents and signing up new shoppers for African American; Asian Pacific; dis- ties, as well as participating in events Food Lion’s MVP customer card. The Abilities; Friends LGBTA (Lesbian, Gay, with national organizations such as BRG also partnered with a local middle Bisexual, Transgender and Allied Asso- PFLAG (Parents, Family and Friends of school for a program that encouraged ciates); Generations; Hispanic/Latino; Lesbians and Gays) National, Straight healthy eating habits and distributed Native American; Veterans and Military For Equality, and HRC (Human Rights fresh fruit during students’ lunch break. Personnel; White Male; and Women. All Campaign). In addition, 2012 was the BRGs are open to any associate who second year that Delhaize America is interested in Diversity and Inclusion. scored 100% on the HRC Corporate Here are a few examples of the many Equality Index, which identifies the activities and events sponsored by the company as one of the best places to BRGs in 2012: work for LGBT people.
Read in our case study “Welcome to the Neighborhood: Bottom Dollar Food’s Local Approach to Diversity” how we tailor our stores to the unique characteristics of a new location.
www.delhaizegroup.com/sustainabilityreport/2012 SUSTAINABILITY PROGRESS REPORT 2012 // PERFORMANCE // ASSOCIATE DIVERSITY // 53 performance everyday practices
Introduction
The centerpiece of our 2020 Ambition and our journey to Supergood is a series of major goals for key sustainability initiatives. We understand that to become a sustainability leader in all our markets, we also must maintain a core set of business practices that extend beyond these strategic priorities.
nomic conditions and changes in brand strategies led to store closings and re- organization of some executive teams. But our commitment to supporting our associates meant we offered help find- ing associates new opportunities within Delhaize Group, or assistance in their To ensure we continue to uphold best monitor our progress in those areas and efforts to find new jobs elsewhere. practices in sustainability across our to consider whether other everyday goals business, we carry over goals from our are needed on our journey to Supergood. These types of changes are part of the previous strategy that ensure strong man- evolution of a large, global business. But agement of our environmental and social To further focus our efforts, we have our Everyday Practices are in place to help impacts. We have made good progress organized our goals for everyday sus- ensure that our core operations align on maintaining these standards already, tainability practices into four areas: food with sustainability standards. We also evidenced by our 2012 inclusion in the safety, associate development, com- are committed to remaining on the DJSI, Dow Jones Sustainability Index (DJSI) at munity engagement and greenhouse which means we must keep pace with the World and European levels, and our gas emissions. We are continually test- other companies as they improve their recognition by CDP Carbon Disclosure ing innovative approaches and refining own sustainability efforts. Our Everyday Project as a member of the Benelux Lead- techniques to achieve our goals in each goals will keep us focused on maintain- ership Index. of those areas. But we also have to bal- ing and improving our best practices in ance those efforts with the requirements these crucial areas, even as we pursue The DJSI scores companies according to of running a successful global business. our most strategic goals. several sustainability benchmarks based on economic, environmental and social For example, even as we improved our criteria, which are helping shape best associate training and development practices for a sustainable business. programs in 2012, we also had to make We will use this index, as well as other business decisions that resulted in many emerging sustainability benchmarks, to associates losing their jobs. Difficult eco-
www.delhaizegroup.com/sustainabilityreport/2012 SUSTAINABILITY PROGRESS REPORT 2012 // PERFORMANCE // everyday practices // 54 Global We will maintain everyday sustainable business practices as a foundation 2020 for our operations ambition
our 2020 Goal: Associate Development 2012 Progress GOALS & PROGRESS Ensure that all associates go through 79% of associates received an annual documented performance documented performance dialogue process dialogues
Goals: Greenhouse Gas 2012 Progress Emissions
Group 20% reduction in CO2 7% reduction since 2008 equivalent emissions per m² sales area (against 2008 baseline) Switch refrigerants from ozone- 50% of total refrigerants used were depleting substances (ODS) such ozone-friendly as CFCs and HCFCs to ozone- friendly HFCs or other refrigerants throughout the Group, while minimizing global warming potential (GWP)
risks & risks opportunities opportunities • Failing to comply with environmental • Increasing associate satisfaction and social regulations through better engagement in • Losing consumer trust in our ability to sustainability actions that contribute to maintain basic sustainability practices the company’s reputation and results • Inconsistent performance from different • Building the company’s position in departments or operating companies the “sustainability-minded” business within the Group environment • Lack of understanding and/or credibility • Showing value from embedding from associates and their relationship sustainability actions in the business with customers
www.delhaizegroup.com/sustainabilityreport/2012 SUSTAINABILITY PROGRESS REPORT 2012 // PERFORMANCE // everyday practices // 55 food safety
Rigorous food safety standards are central to our business across the globe. They build trust among our customers and inspire loyalty from our associates. Over the years, our holistic approach to food safety has led us to work toward best-in-class status in our industry. That means we invest in extensive auditing of our systems, share best practices across our operating companies and collaborate with our suppliers. And we maintain our rigorous, transparent and comprehensive approach to food safety even as we grow.
Across the Business
In 2012: food safety audits conducted in 98% of company- operated stores.
Audits of our food safety systems help ensure that we continue to meet or ex- ceed high standards for food safety. In 2012, we reviewed our food safety audit tracking systems and determined that we could collect more accurate data by distinguishing between different types of food safety audits. As a result, we are now able to more accurately track progress on our Group food safety goal.
We maintain our focus on food safety approach to food safety across the board. company-operated stores. Delhaize Bel- in all aspects of our business, including Delhaize America introduced a number gium also increased the number of audits distribution, transportation, warehouses of initiatives to standardize its food safety at its affiliated stores, which are owned and retail stores, as well as in the devel- practices, with an emphasis on sharing by independent operators. Though af- opment and production of our private best practices. The assessment found filiated owners manage their own food brand products. As part of this effort, we that all of Delhaize America’s banners safety programs, we have invited them to have continued to work with Diversey have strengthened elements of their food participate in the benchmarking process Consulting, a global food safety firm, safety management systems since the as they are able to do so. which in 2012 conducted a benchmark last assessment in 2009. In fact, Delhaize assessment of the food safety systems America banners met or exceeded the across our global supply chain and in U.S. retail industry benchmark on 95% of our retail stores. the indicators that were tracked.
Mega Image in Romania was recognized Delhaize Europe and Delhaize for its accomplishments, moving from America: completed food safety a food safety program that was in the benchmark of operations early stages of development to a compre- and demonstrated continued hensive, fully integrated program in just improvement. three years. Delhaize Belgium and Alfa Beta in Greece also enhanced their food safety management systems, improving The assessment found that progress from a solid foundation to “best in class” has been made at all operating com- on several measures. In Belgium and panies, strengthening Delhaize Group’s Greece, the number of audits increased at
www.delhaizegroup.com/sustainabilityreport/2012 SUSTAINABILITY PROGRESS REPORT 2012 // PERFORMANCE // everyday practices // 56 Separately, Delhaize Group sponsored the Belgium are audited by external, inde- development of PAS 221, the first glob- pendent auditing organizations. ally accepted specification document for prerequisite food safety programs exclusively written for the retail sector. In 2012, public comments were solicited on the draft document, which was then finalized. The PAS 221 was facilitated by and published under license from The British Standards Institution. Though our operations in Serbia and Bulgaria were new to the assessment Alfa Beta’s Oinofita Warehouse has been process, the auditor found that their food certified to ISO 22000:2005, the interna- safety management systems are well tional food safety management standard. established. In particular, the auditor noted that quality is seen as a competi- Delhaize Belgium improved the food tive advantage in Delhaize Serbia’s local safety auditing of distribution centers, market, and its food safety standards using a single centralized system to drive and systems are well defined. Our op- the entire supply chain. Implementation of erations in Indonesia did not participate these auto-control standards is required, in the benchmarking process, as Super but Delhaize Belgium has also pursued Indo had just completed its first round of voluntary certification of its food safety benchmarking in 2011. Super Indo stores requirements via a system of audits. All will be included in future efforts. company-operated stores at Delhaize
Today, all of Delhaize Belgium’s company- Alfa Beta: 90% of company- operated stores and warehouses, as well Alfa Beta: 2012 Excellence operated stores audited. as 95% of affiliated stores, are certified. Award for Quality Assurance These locations also participate in tar- Systems. Delhaize Belgium: 95% of geted trainings to address issues that affiliated stores audited. arise during the audit process. Delhaize America, Delhaize Each of our operating companies also Belgium, Mega Image: 100% educates consumers about food safety. of company-operated stores See the food safety tips we provide for audited. customers at our operating companies’ websites.
www.delhaizegroup.com/sustainabilityreport/2012 SUSTAINABILITY PROGRESS REPORT 2012 // PERFORMANCE // everyday practices // 57 Associate Development
With 158 000 associates worldwide, our company’s success depends on our ability to attract and retain the best talent. For several years we have pursued this objective with an associate development strategy designed to help our associates feel personally invested in our business and progress in their own careers. That, in turn, helps reduce turnover rates, strengthens our culture and improves stability.
Our commitments include providing train- ing programs, to help associates at all levels of the company develop skills, to improve their performance and put them in position to advance their careers with Delhaize Group. In spite of difficult eco- nomic conditions, we continued to deliver training to our associates. We provided opportunities for associates to work in different areas of the company to further expand their knowledge and skill sets.
We also improved our annual perfor- mance dialogue process to better ensure that associates receive the appraisal and feedback they need to continually im- prove. And we continue to foster associate As we continue on our journey to Super- We know we will become a sustainability development through our commitment to good, we will further engage our associ- leader in all our markets by 2020 with the Diversity and Inclusion, an area that we ates in matters of company values and help of our associates, which is why we have prioritized for improvement across strategy, and look for ways to improve are so focused on creating an engaged the Group as part of our 2020 Ambition. our associate development initiatives. and high-performing workforce.
Creating a Performance Culture
our 2020 Goal: Associate Development 2012 Progress GOALS Ensure that all associates go through 79% of associates received & PROGRESS an annual documented performance documented performance dialogue process dialogues
Since 2010, we have pursued a Group- ing out a new Integrated Performance wide strategy for associate development Management (IPM) process. This process that focuses on how we administer train- standardizes the approach for measuring ing and assessments, and how we es- the performance and potential of em- tablish and measure progress toward ployees at the Director level and above performance management goals. In 2012, across the entire Group. we strengthened that strategy by roll-
www.delhaizegroup.com/sustainabilityreport/2012 SUSTAINABILITY PROGRESS REPORT 2012 // PERFORMANCE // everyday practices // 58 The IPM process asks associates to set We know that we need to continue to their own annual targets based on the build our leaders’ capacity to deliver high- Group’s overall strategic priorities and quality, candid assessments of individual values. Associates review these targets associates’ performances. Exploring ways with their supervisor each quarter, and as to shape less subjective, more results- part of the annual performance dialogue driven assessments can ensure that our process. Our goal is to measure what we appraisals are effective tools for driving are trying to achieve, and to identify how performance. In addition to the IPM pro- we meet those targets and the know-how cess mentioned above, Delhaize America we develop along the way. That informa- % associates asked corporate managers to conduct tion will help us build succession plans with an annual documented mid-year performance check-ins with all and identify opportunities for promotions performance dialogue corporate associates, and recommended and talent development. that all corporate associates have formal goals set for 2012. To kick off 2013, Del- As part of the IPM process, we analyzed haize America corporate associates will the standard practices for executing set goals for the year, and those goals performance dialogues across each of will be evaluated at midyear and at year- our operating companies. This analysis end. Delhaize Serbia also uses a local helped us make recommendations on performance dialogue process in addition systems, appraisal quality and leadership 73% 79% 79% to the IPM. This local review is conducted expectations. 10 11 12 for all employees at management level and below.
Training and Talent assignments that last for six months each: finishing its 18-month rotations. The 2012 Development Retail operations training in their home class is going abroad for its international country; an international project in a cor- assignment, and we are recruiting the The ability to develop and retain the best porate office; and a business support fourth class for 2013. We have seen the talent is critical for the success of a retail role in another corporate office. These number of applications increase gradu- business with 158 000 associates. assignments give trainees a thorough ally over the years, from 597 in 2010 to grounding in the international scope of 1 018 in 2012. Promoting this development Delhaize Group and the breadth of our program through Facebook has helped Delhaize Group 2012 retention operations. ensure we reach our target audience rate: 72%. of recent college graduates. Posts on The three trainees from the inaugural our own pages and Facebook ads help Providing opportunities for growth and 2010 class are now starting their first drive traffic to the program’s website, advancement helps our associates feel post-training positions across Delhaize where candidates can apply and ask their more invested in our company, which Group, while the 2011 class is close to friends to recommend them via Facebook. can improve performance and reduce turnover. To that end, we employ a variety of training tools for our associates, includ- ing in-person courses at our facilities, % associates who received a training computer-based training and external courses. These efforts resulted in more than 60% of associates receiving in-per- son or computer-based training in 2012.
In 2012, we accepted nine young people into the third class of Delhaize Group’s International Graduate Trainee Program.
Since 2010, this program has offered tal- 44% 47% 59% 59% 66% 62% ented graduates or newly hired young 10 11 12 associates an opportunity to develop their leadership potential in an international instructor-led training computer based training environment. Trainees participate in three
www.delhaizegroup.com/sustainabilityreport/2012 SUSTAINABILITY PROGRESS REPORT 2012 // PERFORMANCE // everyday practices // 59 Our operating companies also manage Another example of new training ini- their own training and development tiatives comes from Delhaize America, strategies. For example, Delhaize Serbia, which created a program called “Lead- Bosnia and Herzegovina, and Montene- ing Through Transition” for all salaried gro adopted the Delhaize Group Store leaders. The program offers a series of Management Development program, learning experiences focused on dealing which gave 688 associates - current store with the impact of change on individuals managers and future managers - the and the organization. opportunity to build skills and develop professionally. Additionally, Delhaize America University created six new individual leadership From this Store Management Develop- courses open to anyone currently in a ment program, Delhaize Serbia, Bosnia leadership role or aspiring to become a and Herzegovina, and Montenegro cre- leader. These courses, offered through in- ated two development programs for person sessions and in an online course, managers and directors: the Manage- cover issues such as communication, ment Development Program (MDP) and leading others, leading into resistance the Leadership Development Program and working through transitions. (LDP). The MDP aims to develop the po- tential and skills of managers and im- Delhaize Group launched the Store Man- prove competencies in accordance with ager of the Year Award program as a way Delhaize Group’s management compe- to recognize and celebrate the important tency model. The company plans more role store managers play in growing a than 3 000 training hours in 2013. The LDP stronger business, associates and com- aims to develop a strong complement of munities every day. Eight store managers local leaders to help achieve business who had been named Store Manager goals. More than 1 800 training hours of the Year at their individual banners Fred Marlin (center), first Delhaize Group Store Manager of are planned for 2013. the year, receives the award from R Hodge (CEO Delhaize were finalists for the first Group-wide America - left) and M Vail (President and COO Sweetbay) award. Beyond earning the title of Del- In addition, 1 800 people in Serbia, Bos- haize Group Store Manager of the Year, nia and Herzegovina, and Montenegro the winner also received an invitation to applied to Delhaize Serbia’s Retail Man- Delhaize Group’s first Store participate in Oracle, Delhaize Group’s agement Training Program. The select- Manager of the Year Award week-long spring leadership intensive ed associates participate in a two-year (2011 awarded in 2012) to Fred retreat. Delhaize Group will cover air- development program to help develop Marlin, store manager of The fare and accommodations to allow for their careers and groom them as future Villages Sweetbay Supermarket. a weeklong vacation in Oracle’s desti- leaders. nation city.
www.delhaizegroup.com/sustainabilityreport/2012 SUSTAINABILITY PROGRESS REPORT 2012 // PERFORMANCE // everyday practices // 60 Community
We operate a global business that is built on a foundation of local stores. Our business can only be strong and sustainable when the communities we serve are strong and sustainable. For that reason, we have long used our skills and resources as a local retailer to improve the communities we serve.
We believe a Supergood company is also banners directly support and promote a Superlocal company, which is why our volunteering efforts, while also encour- business has both a global strategy and aging associates to volunteer their time, a local go-to-market strategy. As part of energy, ideas and enthusiasm to other that local strategy, each of our banners community efforts that they find mean- develops a local approach to community ingful. engagement. Our commitments range from efforts to source products from local Engaging in our communities is good for suppliers to direct involvement with local our business. It creates better relation- community organizations and events. We ships with customers and helps make support these organizations and events our associates proud to work for us. As through financial donations and sponsor- we aspire to be a Supergood company, ships, as well as with food donations that we will focus on new ways we can help help feed our neighbors while reducing our communities every day. the amount of unsold product we have to dispose of when it reaches its sell-by date.
We also have another amazing asset to share: Our 158 000 associates. Our
Donations
Food security is a significant concern in our communities. Resource scarcity is driv- 2010 2011 2012 ing up commodity prices at the same time Products donated 20 22 22 that the economy is suffering in many of (thousand tonnes) the regions we serve. In response, our banners continued to make direct food Direct cash donation to charities 4 4 3 donations and sponsored community food (EUR million) drives within their store networks. In 2012, Percentage of direct cash donations on 0.5% 0.7% 0.9% those donations totaled 22 000 tonnes of pre-tax profit food to schools, charities and food banks.
Banners partnered with existing food banks or created food banks where they In addition to donating more than 8 000 kg of were lacking. For example, Delhaize Bul- food so far, Piccadilly has taken an integral garia’s Piccadilly banner co-founded the role in structuring the food bank’s business Bulgarian Food Bank, which in August protocols and supporting its warehouse began distributing food to those in need. and logistics systems.
www.delhaizegroup.com/sustainabilityreport/2012 SUSTAINABILITY PROGRESS REPORT 2012 // PERFORMANCE // everyday practices // 61 Delhaize Serbia’s Maxi stores made haize Belgium also started a three-store monthly food bank donations and con- pilot program to standardize surplus food tributed more than 30 000 kg of food to donations. The system provides fresh a Red Cross soup kitchen in Vrajne, which food that is approaching its sell-by date, was enough to serve 1 396 hungry people. food in damaged boxes and other sur- Delhaize Montenegro began a similar plus food to groups that can redistribute cooperation with Food Bank Montenegro those products to the needy on the same in 2012, and marked World Poverty Day day. The pilot program quickly expanded on 16 October by holding a food drive at to eight stores, and Delhaize Belgium four large stores. The effort collected more hopes to roll out this program to more than 800 food packages for the poorest stores in 2013. families in Montenegro. To learn more about this Delhaize Belgium and Luxembourg co- program, read the case study, ordinated deliveries to local food banks “A Fast Turnaround for at the store level. For example, Delhaize Food Donations.” Belgium provided 373 818 meals. Del-
In Greece, where the economic crisis has pushed many families into poverty, Alfa Delhaize America: provided the Beta continued to partner with the Hel- equivalent of 9 million meals. lenic Food Bank to donate food from Alfa Beta warehouses and to collect in-store donations to support local food banks. In addition, our operating companies Alfa Beta also continued its partnership and banners provided cash donations with SKAI TV and the Greek Church to dis- and sponsorships to other local events, tribute customer-donated food and goods non-profit partners, and causes that are to needy families and soup kitchens. In important to their local communities. For December 2012, Alfa Beta sponsored a example, in 2012 Delhaize America’s Han- Christmas dinner for 3 000 families. naford banner gave USD 200 000 to the Albany Medical Center to expand that facil- In Romania, Mega Image continued its part- ity’s neonatal center. Super Indo in Indo- nership with the Red Cross to assist people nesia, partnered with a local non-profit living in poverty by holding food drives and organization, the Kick Andy Foundation, to fundraising campaigns in its stores. Mega provide underprivileged children access to Image also donated food directly to several a better education. Super Indo donated the charities that provide support for children. equivalent of EUR 800 and collected dona- And following heavy snows at the begin- tions worth the equivalent of EUR 106 000 ning of 2012, Mega Image donated food to through a customer fundraising program several organizations that distributed it to For example, Food Lion, Hannaford, Bot- to a help a school improve its facilities. people across the country who were unable tom Dollar Food and Sweetbay partici- to leave their villages to buy basic supplies. pated in “backpacks for kids” programs, which provide local school children from Delhaize America continued its longstand- food-insecure families with a backpack ing relationship with Feeding America. of food to eat on nights and weekends. Throughout the year, all banners provided These initiatives provided USD 132 500 in support for Feeding America initiatives total donations for backpack programs in in their local communities, such as food Delhaize America’s operating area. The drives that collected donations for Feeding banners also continued their boxed-meal America food banks. In addition, Delhaize programs, which encourage customers America focused its food donation pro- to purchase and donate a box of food grams on two important areas: Feeding containing a mix of ingredients to make a hungry children and providing meals for meal. These programs provided 323 000 families in need around the holidays. boxes of food to needy families.
www.delhaizegroup.com/sustainabilityreport/2012 SUSTAINABILITY PROGRESS REPORT 2012 // PERFORMANCE // everyday practices // 62 In Europe, Delhaize Group provides ad- ditional donations through the Delhaize Beth Newlands Campbell, Group Fund, a charitable fund created President of Hannaford, in 2008 to support initiatives that foster received the 2012 Hon. Edmund integration in the communities in which S. Muskie Access to Justice we operate. In 2012, the Fund awarded Award - presented annually to a total of EUR 150 000 in grants to 32 individuals in the community initiatives in Belgium and Luxembourg. who demonstrate a strong The Delhaize Group Fund Jury then se- commitment to the public good. lected five of those projects as “exemplary award” winners for 2012, and invited asso- ciates in Belgium and Luxembourg to vote for their favorite project among the five. Associates selected a community garden- ing program in Luxembourg for the 2012 “Delhaize Associates’ Prize,” which doubled the size of the grant the project received.
Community Service gram placed a spaceship in the middle of a park and invited children on board for an Delhaize Group associates often work to educational “trip to space” to learn about make a difference in their local communi- natural resource management. ties. We actively support these community service efforts, and publicly recognize our Delhaize America associates also were associates who are leading volunteers. busy with community service efforts We also encourage our customers to throughout the year. For example, 85 Food volunteer to support local organizations, Lion associates provided food for roughly or take part in community events and 1 300 volunteers cleaning up a river in the initiatives. paign to collect food and clothes for an Lake Wylie Riversweep in North Carolina orphanage in Thessaloniki. The number and South Carolina. Associates in South There are so many of these volunteering of associates participating in these ac- Portland (Maine) participated in a local events across our Group each year that tions increased more than 25% over 2011. clean-up day that covered three miles of we cannot list them all in this report. But the city and collected enough trash to fill here are a few highlights from 2012: Mega Image launched its first volunteer 180 bags. Meanwhile, Sweetbay associates initiatives with three projects to benefit the regularly volunteered to help distribute food Delhaize Belgium organized “What’s Up? community and the environment. These at various Feeding America food banks. Clean Up!”, an initiative that attracted efforts included resource management more than 17 000 volunteers to clean education in schools, a tree-planting ini- Super Indo hosted several in-store blood 634 public sites across the country. The tiative in two cities and a carbon footprint drives throughout the year, which resulted effort collected 20 185 bags of trash (each reduction program that will continue in in more than 10% of all associates donating of which held approximately 50 liters of 2013. More than 100 employees volun- blood. Super Indo also sponsored multiple garbage) and raised awareness among teered to take part in these activities. customer donation programs, including a associates and customers about the im- Mega Image also created an innovative book donation campaign that is scheduled portance of waste reduction. Read more program to spread the message of envi- to continue through March 2013. about Delhaize Group’s commitment to ronmental protection to children. The pro- waste reduction in the Zero Waste section of this report.
Alfa Beta completed its second year of sponsoring associate-led volunteering campaigns. In 2012, more than 3 750 volunteers participated in 148 initiatives, such as local beach clean-ups and a cam-
www.delhaizegroup.com/sustainabilityreport/2012 SUSTAINABILITY PROGRESS REPORT 2012 // PERFORMANCE // everyday practices // 63 Greenhouse Gas Emissions
Delhaize Group has 2 749 company-operated stores worldwide. As a result, the majority of our carbon footprint comes from energy use. In addition, our refrigerant emissions produce harmful greenhouse gases. Our journey to Supergood includes our continued dedication to reducing these impacts: By 2020, we aim to reduce our greenhouse gas emissions per square meter sales area by 20% compared to the baseline figures we established in 2008.
EMISSIONS BY FACILITY TYPE EMISSIONS BY source
0.5% 5.9% 0.8% Stores Energy 31.9% 4.4% Distribution 61.3% Refrigerants Centers Travel & Offices Product Transport Product Transportation Travel
88.4% 6.8%
We continued to make progress toward replacing conventional power sources that goal in 2012. For the third year in a row, with solar panels. CO2 equivalent emissions 2 we submitted our emissions figures to CDP per M sales, tonnes CO2 (Carbon Disclosure Project), and based on Likewise, we remain committed to the the quality and transparency of our efforts, complex long-term project of reducing Delhaize Group was included in the 2012 our refrigerant emissions. In the short- to Leadership Index for Benelux companies. medium-term, switching from ozone-de- While global carbon dioxide emissions, the pleting to ozone-friendly refrigerants can main cause of climate change, hit record actually increase emissions. We are work- highs in 2012, Delhaize Group’s emissions ing across the Group to reverse this trend fell 10% compared to 2011. by addressing refrigerant leaks promptly and testing innovative applications of Delhaize Group is committed to investing natural and lower-emission refrigerants. in cost-effective energy efficiency projects. We maintained good investment levels in 2012, using common metrics that allow To learn more about our work 0.640 0.633 0.639 0.613 0.592 us to track the financial and energy ef- on natural refrigerants, 08 09 10 11 12 ficiency impacts of the changes we adopt. read our case study, “Cool We have continued installing LED lighting, Technology: Advancing the putting doors on refrigerated cases and Use of Natural Refrigerants.”
www.delhaizegroup.com/sustainabilityreport/2012 SUSTAINABILITY PROGRESS REPORT 2012 // PERFORMANCE // everyday practices // 64 Product transportation also contributes to their transport efficiency, with initiatives duce traffic and pollution. our greenhouse gas emissions. Several of ranging from the use of alternative fuel our operating companies have improved sources to rescheduling deliveries to re-
our 2020 Goals: Greenhouse Gas 2012 Progress GOALS Emissions & PROGRESS Group 20% reduction in CO2 7% reduction since 2008 equivalent emissions per m² sales area (against 2008 baseline) Switch refrigerants from ozone- 50% of total refrigerants used were depleting substances (ODS) such ozone-friendly as CFCs and HCFCs to ozone- friendly HFCs or other refrigerants throughout the Group, while minimizing global warming potential (GWP)
Energy
WWF’s Earth Hour took place on March 31, 2012. At 8:30 pm local time, people, businesses and governments in more than 7 000 cities in 152 countries around the world shut off their lights for an hour to show their commitment to energy con- servation. Delhaize Serbia and Alfa Beta in Greece were proud to be among them.
Delhaize Group’s commitment to energy conservation was significantly more than symbolic, however. Our stores contin- ued to invest in energy-saving upgrades in 2012. Delhaize Bulgaria replaced T8 lamps with higher-efficiency T5 lamps in six stores, and installed doors on refriger- ated and freezer cases in eight stores to As part of Delhaize Belgium’s “Energy store closing hours. In the U.S., Food Lion minimize energy consumption. In 2013, Plan 2020,” its banners replaced neon retrofitted 108 more stores with doors on Delhaize Bulgaria will continue these en- lights with energy-efficient LED lighting medium-temperature cases, and 305 ergy upgrades, with installation of higher in refrigerated cases in 118 stores, and in more stores with LED lamps. Food Lion efficiency lamps planned for nine stores storage rooms in 67 stores. In addition, also installed strip curtains in coolers and and doors for refrigerated and freezer all Delhaize Belgium stores reduced the freezers in 200 stores. cases in 20 stores. amount of lighting that remains on during
www.delhaizegroup.com/sustainabilityreport/2012 SUSTAINABILITY PROGRESS REPORT 2012 // PERFORMANCE // everyday practices // 65 Two Hannaford stores received LEED for Existing Buildings Operations & Maintenance certification. In total, 10 U.S. stores are now LEED certified.
Other operating companies took steps in 2012 to evaluate their energy efficiency In May 2012, Mega Image launched a and highlight areas for improvement. green energy campaign, becoming the Delhaize Serbia made a detailed analysis first food retailer in Romania to use renew- of electrical consumption in one of its able energy. The banner purchased re- remodeled stores in Belgrade. It plans newable energy certificates covering 25% to use this information as a baseline for of its total energy needs. Mega Image energy savings for all stores of a simi- plans to increase this figure in the future. lar format. Delhaize Bulgaria replaced lamps in several stores and added doors On a global level, Delhaize Group is to refrigerated cases. Alfa Beta, mean- participating with The Consumer Goods while, began taking part in iSERVcmb, a Refrigerants Forum (CGF) to begin phasing out HFCs monitoring and benchmarking program (hydrofluorocarbons) in favor of natural Three years ago, Delhaize Group’s refrig- for corporate and other organizational refrigerants.While HFCs are often used eration systems accounted for approxi- heating, ventilation and air conditioning as substitutes for ozone-depleting sub- mately 844 000 tonnes of CO equivalent systems in EU member states. During the 2 stances, they have a significant detrimen- emissions. During 2010 and 2011, those three-year program, Alfa Beta will assess tal effect on global warming. emissions increased. But in 2012, that the air quality, energy efficiency and best figure dropped to 835 000 tonnes of CO practices of its air-conditioned facilities. 2 equivalent emissions. Efforts to reduce re- 2011 to 2012: 3% decrease in our frigeration emissions continued in 2012, with Alfa Beta in Greece and Food Lion refrigerant emissions per m² of and Hannaford in the U.S. leading the way. sales area.
Alfa Beta has been at the forefront on refrigeration emissions reform since 2009, when it began participating in the European research project REAL SKILLS (Refrigeration Emissions and Leakage Skills). In 2012, the banner completed its two-year effort, in partnership with the Alfa Beta’s first green store, which opened National Technical University of Athens, in 2010 in the north of Athens, was awarded to reduce refrigerant leakage through BREEAM international certification, an envi- innovative training methods. ronmental assessment method and rating system for buildings. The Building Research Read more about our efforts to Establishment Environmental Assessment reduce refrigerant emissions Method (BREEAM) sets the standard for best in our case study, ”Cool practices in sustainable building design, Technology: Advancing the construction and operation. Use of Natural Refrigerants”.
www.delhaizegroup.com/sustainabilityreport/2012 SUSTAINABILITY PROGRESS REPORT 2012 // PERFORMANCE // everyday practices // 66 The Consumer Goods Forum Board Resolution on Sustainable Refrigeration “As the Board of The Consumer Goods Forum, we recognise the major and increasing contribution to total greenhouse gas emissions of HFCs and derivative chemical refrigerants. We are therefore taking action to mobilize resources within our respective businesses to begin phasing-out HFC refrigerants as of 2015 and replace them with non-HFC refrigerants (natural refrigerant alternatives) where these are legally allowed and available for new purchases of point-of-sale units and large refrigeration installations. We recognize that barriers exist to wide scale adoption of more climate-friendly refrigeration, namely legislative restrictions in some markets, availability, cost, safety, maintenance and servicing. We will work to overcome those barriers by strengthening existing collaborative platforms and initiatives. We also will use our collective influence to encourage our supply base to develop natural refrigerant technologies that meet our business demand under commercially viable conditions.” For more information: sustainability.mycgforum.com/refrigeration.html
Transport Results from the first round of tests, which included Delhaize Belgium and another Ongoing changes to our transport system retailer making deliveries in 10 cities, were resulted in a 3% drop in greenhouse gas positive. In 2013, the program likely will emissions from product transport. We cut be expanded to other stores in Belgium. Group-wide transport kilometers to our Delhaize Belgium also added a com- company-operated stores by 6% from pressed natural gas delivery truck to its 2010 to 2012. fleet in 2012.
As part of Delhaize America’s efforts to reduce greenhouse gas emissions, it is looking closely at transportation ef- ficiencies. In a program designed to boost fuel efficiency, numerous improvements were made to the Delhaize America fleet. Changes included the purchase of enhanced aerodynamic fairings for trac- tors; use of low rolling resistant tires; and trailer skirts, all of which help reduce roll- ing resistance and boost fuel efficiency. Delhaize America is also purchasing auto inflation systems that keep trailer tires at optimum inflation levels to decrease drag and increase efficiency. Delhaize Belgium also participated in In addition, Delhaize America is purchas- the PIEK project, a Belgian test project ing refrigerated trailers that offer electric designed to make store deliveries more standby power to determine the feasibility sustainable by scheduling them very early of utilizing electric instead of diesel power in the morning or late in the evening. This when the trailers are not in motion. Lim- timing means that trucks avoid traffic- ited infrastructure to support these trailers related delays, travel faster and produce is now in place in Delhaize America’s New less pollution. York distribution center, where associates Delhaize Belgium: reduced fuel will explore the potential benefit of this usage in trucks it owns by 3%. approach.
www.delhaizegroup.com/sustainabilityreport/2012 SUSTAINABILITY PROGRESS REPORT 2012 // PERFORMANCE // everyday practices // 67 CASE STUDIES
www.delhaizegroup.com/sustainabilityreport/2012 SUSTAINABILITY PROGRESS REPORT 2012 // CASE STUDIES // 68 Case studies sustainable private brands
two sound approaches to sustainable seafood
As a global food retailer, Delhaize Group is deeply concerned about the health of the world’s fish populations. Balancing the threat of overfishing with the growing demand for healthy food is a complex challenge. As we addressed it, we knew we had to tailor our solutions to each market in which we work. Delhaize America and Delhaize Belgium reached significant sustainable seafood milestones in 2012, but they tackled the challenge in different and appropriate ways. Here’s how they did it.
Seeking Sustainability Wild-caught seafood sold by Delhaize it sells and collect information about how in the U.S. America comes from fisheries governed that fishery was managed. The team de- by credible, science-based management veloped a list of criteria to track, including Delhaize America’s work to create its plans. These plans determine the amount, whether the seafood came from a fishery sustainable seafood policy and manage- timing and method of harvest to protect that is monitored for stock size and har- ment plan began three years ago, when seafood populations from overfishing. vested within acceptable limits. Reviewing it joined forces with scientific partner Gulf Delhaize America also supports continu- those criteria could take minutes or weeks of Maine Research Institute (GMRI). ous improvement in fisheries sustainabil- per source, depending on how much data ity by sourcing products that come from the supplier already collected. credible fishery improvement projects. Suppliers now must document each fish Since March 31, 2012, all fresh, frozen product or fresh fish shipment, along with and canned seafood products sold in its source information. Wild-caught fish Delhaize America stores have been are identified by how and where they assessed against Delhaize America’s were harvested, and all farm-raised fish Together, they worked with seafood sup- sustainable seafood policy and are fully are identified by their farm of origin. Del- pliers to improve fish harvesting methods traceable to their wild fishery or farm of haize America also requires, at minimum, that decrease bycatch, promote local origin. The policy covers the widest range that all farmed fish products are certified and regional distribution and improve of products of all major U.S. grocery com- by the Global Aquaculture Alliance (GAA), handling - all of which enhance seafood panies - including more than 2 500 fresh, an international, nonprofit trade associa- quality and sustainability. Their approach frozen and grocery products. That makes tion that promotes environmentally and focuses on the health of individual fish- its banner companies the nation’s first socially responsible aquaculture. This eries. The company makes its buying major supermarket chain to reach this information is stored in an online data- decisions based on the merits of sustain- milestone. base, managed by a third party, which ing individual seafood populations (and buyers and sustainability team members the local fishermen who rely on them), Accountability is critical throughout the can check at any time. Transparency at rather than targeting broad categories supply chain. Delhaize America worked every stage of the sustainable seafood or species. with GMRI to review each seafood product program ensures its credibility.
www.delhaizegroup.com/sustainabilityreport/2012 SUSTAINABILITY PROGRESS REPORT 2012 // case studies // sustainable private brands // 69 Traceability has made a positive impact on risk management, too, according to George Parmenter, Manager of Sustain- ability for Delhaize America.
“At one point in time, if the press printed reports of seafood tainted with antibiot- ics, for example, our investigation into whether our supply was affected could take days,” he says. “Today, we can check instantly. We know exactly where our products come from. And in the rare instance that one of our suppliers has a problem, we can immediately - and efficiently - confirm whether the products we stock are at risk.”
Meeting sustainable seafood benchmarks benefits both the environment and the bot- tom line. Delhaize America’s work has en- hanced its brand, which is marketed as Seafood “Seafood You Can Trust.” A core part of this work has been training associates to ensure the sustainable seafood policy is under- you can trust. stood by associates and clear to customers. Fresh, frozen or canned - Hannaford is the first “Our goal was to make this easy for our supermarket in America to offer only responsibly customers,” says Parmenter. “You trust our harvested seafood throughout the store. brand, you trust that we are going to do the right thing. Customers know that if it’s Where’s it from? hannaford.com/seafood in the store, we have done the work on it and it meets stringent scientific criteria.”
Making Big Gains Delhaize Belgium’s external assessment in Belgium partner, Stichting De Noordzee (North Sea Foundation), examined every sea- In a different take, Delhaize Belgium also food supplier and rated each on the began to define its sustainable seafood three-color scale. Delhaize Belgium only sourcing protocols three years ago, using sources fish from suppliers rated “green” certifications rather than management or “orange”. The scale is based on the plans. In collaboration with the World United Nations’ Food and Agricultural Wide Fund for Nature (WWF), Delhaize Organization (FAO) criteria for sustainable Belgium adopted a system to evaluate fishing, which covers specific fish stocks, fresh and frozen fish using a green, or- fishing methods, impact of fishing on ange, red scale of certified sustainability. other species, impact of fishing on eco- systems, and fish stocks management.
As of the end of 2012, Delhaize Belgium “In order to be considered a sustainable sells no fresh fish from suppliers on the retailer, we must have sustainable sea- “red” list. When a supplier has not yet food,” says Tim Lammens, Director of achieved certification, Delhaize Belgium’s Quality and Food Safety with Delhaize buyer travels with Stichting De Noordzee Belgium. “Once we started, it was im- representatives into the field - and onto mediately clear that, together, we could their boats - to assess fishing practices make great progress in making the sup- and identify, together, how to make the ply chain more sustainable.” supplier’s practices more sustainable.
www.delhaizegroup.com/sustainabilityreport/2012 SUSTAINABILITY PROGRESS REPORT 2012 // case studies // sustainable private brands // 70 need to make to earn an acceptable “or- sold sustainably caught fresh fish and ange” rating. The action plan they cre- farmed fish products certified by GAA or ated became a formal contract among its equivalent. By the end of 2013, Del- Delhaize Belgium, the Belgian fisheries haize Belgium plans to source all of its and Stichting De Noordzee. frozen fish sustainably, as well. Achieving these milestones supports biodiversity “This process is not easy and it’s certainly while ensuring a healthy future seafood not free,” Lammens says. “Fisheries have supply. to adapt their installations and equip- ment, and sometimes even change their Delhaize Belgium’s fish departments have catchment area. But the investment on been engaged in this project through both sides supports more sustainable annual training on the company’s sustain- fishing.” able mission and practices. Collabora- That work began close to home. Delhaize tive efforts, such as the marketing and Belgium’s head fish buyer negotiated with Since the end of 2012, in accordance procurement teams’ development of a Belgian and foreign fisheries to define with its sustainable seafood policy, Del- point-of-sale Fish Guide, unite their busi- the improvements local fishermen would haize Belgium stores have exclusively ness and sustainability goals.
De zee heeft jou nodig!
Je houdt van producten die uit de zee komen en die doen je goed. Maar de vangst en zelfs de kweek van bepaalde vissoorten heeft nare gevolgen: overbevissing, bedreiging met uitsterven, schade aan het milieu... De situatie is verontrustend. Als verantwoorde onderneming nemen we in samenwerking met WWF een hele reeks maatregelen. Het is óns engagement, maar ook jouw engagement telt. Daarom stellen we je deze viswijzer voor die je kan begeleiden bij je aankopen of helpen bij je keuze!
Waarom deze gids? Om je te helpen op een meer verantwoorde wijze te consumeren én om op duurzame wijze te genieten van al wat de zee te bieden heeft. Het is een praktische gids die niet alleen de soorten aanduidt als uitstekende keuze, met mate te gebruiken of te vermijden, maar ook de productiemethode, het vangstgebied of het kweekland aangeeft. Je kan hem afdrukken en meenemen naar de win- kel om zeer gewetensvol en bewust de “uitstekende keuze“-producten te kiezen. Jouw rol is belangrijk!
SAMEN VOOR DUURZAME VISVANGST
1/5
Although sustainable seafood may not be top “This project is securing our business Belgium. “If we want to continue to sell of mind for customers yet, more and more for the future,” says Katrien Verbeke, seafood to our customers, then we have are expressing appreciation for the work. Sustainability Manager for Delhaize to ensure it is being sourced sustainably.”
What’s Next? to stakeholders. For example, Delhaize for all of its private brand fish products. Belgium plans to launch a new website Working with Sustainable Fisheries Part- Delhaize America and Delhaize Belgium that highlights its sustainable fish assort- nership, it is developing a sustainable will continue to work with their scientific ment, detailing the fishing area, catching seafood policy - and planning to work partners to follow developments in sus- methods and sustainable alternatives toward Marine Stewardship Council cer- tainable fisheries and take measures for specific endangered species, in June tification - for its private brand fish prod- to ensure the sustainability of seafood 2013. ucts. Building on the successful associate sold in their stores. They plan to inform education programs at Delhaize America customers when they stop selling a spe- Elsewhere, the Group’s operating compa- and Delhaize Belgium, Delhaize Group cies - and offer trustworthy alternatives. nies in Southeast Europe and Indonesia is committed to educating associates And they will share their policies and suc- are at the beginning of their journeys throughout the Group to help support cesses through media campaigns, in- toward sustainable seafood. Mega Image sustainable fisheries worldwide. store communications and presentations in Romania has identified the sourcing
www.delhaizegroup.com/sustainabilityreport/2012 SUSTAINABILITY PROGRESS REPORT 2012 // case studies // sustainable private brands // 71 Case studies zero waste
A New Recipe for Waste Reduction
When our banners think about waste reduction, they don’t just focus on the end goal of sending less trash to landfill. They look for solutions that will avoid the creation of waste in the first place. A significant part of our waste comes from perishable food - particularly fruits and vegetables. As a result, two of our European banners set out to find ways to prevent spoilage, and extend the life of produce before it hit its expiration date. Here are the creative programs they developed.
Finding a Solution in Fresh Promising Results Lead Juices to Rollouts
Inventory shrink - the loss of product due The new products - seven mixed juices, to error, theft, or product damage - is nine mixed fruit salads, and five mixed an inevitable problem in retailing. Mega vegetable salads - appeared on shelves Image in Romania looked at its overall in a large store in Bucharest in July. While losses from shrink and found that from the new product line doesn’t have a for- mid-2011 through early 2012, 21% came mal name, Mega Image displayed it in from fruits and vegetables. So the ban- a separate corner of the store. And in a ner’s associates asked themselves a big move that proved critical, it appointed a question: Could they prevent fresh food dedicated associate to run the project. from turning into garbage? They realized they could - by turning it into something “Our operational manager came up else before it expired. with the idea of trying to transform the produce into another product, so we did some testing in one store, mixing fruits and vegetables,” says Project Manager Emil Aringhe.
The test used a mix of 80% prime qual- ity fruits and vegetables and 20% lower quality but still good produce to create a line of freshly made juices and fruit and vegetable salads. When it came time to sample the recipes, the company con- “The associate was specifically trained by vened a panel of taste-testers that in- the equipment supplier, and then trained cluded associates from operations, legal, internally on food safety issues,” says food safety, purchasing, warehousing Retail Operations Director Mircea Moga. and headquarters. “That person was the owner of that fresh production corner.” “We wanted all of our colleagues to par- ticipate,” says Aringhe.
www.delhaizegroup.com/sustainabilityreport/2012 SUSTAINABILITY PROGRESS REPORT 2012 // case studies // zero waste // 74 A project manager from Mega Image headquarters supervised the pilot, track- ing daily sales and losses. At the end of August, the banner analyzed the results. Customer reaction was positive, and sales were strong. After another prom- ising test in a smaller store in a differ- ent area of the city, Mega Image began rolling out the program more broadly. By the end of 2012, 19 stores offered the new juices and mixed salads. Early sales figures are good: In the first two months of 2013, the line of 21 products produced the equivalent of more than EUR 62 000 in revenue. The most popular product was carrot juice, which made up 19% of the new product line’s total sales.
At the same time, Mega Image developed a program to reduce waste from deli, pastry, dairy and meat products, which together made up 65% of the banner’s overall food waste as of early 2012. The banner created and advertised a promo- tion for items that were reaching their expiration dates or were overstocked: Buy two items, and pay half the regular “Now it’s possible to follow and evalu- amount. ate the program more accurately,” says Moga. The associate in charge of the new mixed juices and salads line was also respon- Focusing on Best Practices sible for proposing which produce was and Local Suppliers past its peak and should be included in the markdown; the store manager made In Bulgaria, Piccadilly focused on train- the final decision. In addition, the associ- ing as a way to reduce food waste. The ate designated products that could not banner’s goal was to reduce the amount be marked down and sold, but would of shrink in the fresh departments, so instead be recycled as animal feed. it began with the people closest to the problem and the solution: Department Combined, the two initiatives reduced associates. fruit and vegetable waste by 40% in the pilot stores that implemented them - The banner realized that many associ- significant progress toward meeting the ates weren’t handling or storing fruits “Now, store associates know the best banner’s waste-diversion target of 75% and vegetables properly, which resulted practices, and we check that they are fol- by 2015. To more accurately measure the in unnecessary damage and decay. In lowing them,” says Konstantin Atanasov, success of its waste-reduction programs response, Piccadilly launched a series Piccadilly’s Supply Chain and Logistics moving forward, Mega Image created of trainings throughout its stores focused Director. an online tracking system that associ- on procedures for receiving and storing ates use to record the exact amount and products, including maintaining appropri- type of garbage the stores send to landfill ate temperatures in the refrigerators to every day. reduce spoilage.
www.delhaizegroup.com/sustainabilityreport/2012 SUSTAINABILITY PROGRESS REPORT 2012 // case studies // zero waste // 75 Another effort addressed a different source of shrink that started before produce even reached the stores. Prior to 2012, many of Piccadilly’s fruits and vegetables came from the Varna region of Bulgaria, some 450 kilometers from the capital city of Sofia. Trucking produce over those long distances increased the incidence of damage and spoilage. Last year, the banner started using more local suppliers, which improved product quality and reduced greenhouse gas emissions from transportation.
In the first half of 2012, Piccadilly reduced waste to the very low levels it had expe- rienced in 2010, saving the equivalent of EUR 557 000.
Those efforts also included training by same time, Piccadilly cut prices for foods the quality assurance department, and approaching their expiration dates by as a series of meetings among regional much as 50%. It also created fresh salads, managers, store managers and store similar to the program at Mega Image, associates to discuss the environmen- out of the quality parts of fruits and veg- tal and financial impact of waste. At the etables that were no longer saleable.
What’s Next? Meanwhile, Piccadilly will open its first ropean operating companies, which will centralized warehouse in 2013, which will consider how to implement similar waste In 2013, Mega Image will roll out its pro- improve quality control and reduce shrink reduction programs tailored to their local duce program to 36 more stores, includ- that occurs from damage and spoilage. markets. ing all of its new stores as well as existing It also will continue all of its waste reduc- stores that have enough physical space tion efforts, moving toward its ultimate to prepare the products. The banner is objective of reducing waste expenses also looking into the feasibility of a pro- by 16% between 2010 and 2015. gram to turn fruit and vegetable waste into compost that the stores can sell for Mega Image and Piccadilly shared the gardening purposes. results of their efforts with the other Eu-
www.delhaizegroup.com/sustainabilityreport/2012 SUSTAINABILITY PROGRESS REPORT 2012 // case studies // zero waste // 76 Case studies Healthy Lifestyles
Our Latest Efforts to Encourage Healthy Lifestyles
When Delhaize Group made a commitment to improving the health and wellness of our associates and customers, we understood that it meant addressing a wide range of issues. Health and wellness concerns among our stakeholders include everything from basic physical fitness and nutrition to managing chronic diseases. The fact that no single approach can address all of these health and wellness issues is a challenge - but it is also an opportunity. It means our banners and operating companies can continually test ideas, launch pilot programs and experiment with new tools. And when an initiative proves its value, other companies within the Group can adapt that approach for their own circumstances. This cycle of experimentation and improvement continued in 2012. Here are highlights of several health and wellness initiatives from across Delhaize Group that took different routes to the same goal: Helping associates and customers live healthier lifestyles.
Helping Associates Make Healthy Choices
Healthy associates are a key factor in our business’s success. For that reason, our operating companies and banners offered a range of programs to help as- sociates live healthier lifestyles: • Delhaize America built upon its exist- ing health and wellness programs by developing new initiatives that matched the needs and resources at each of its banners. For example, Hannaford focused on improving the nutritional value of meals offered in the cafeteria at its headquarters. Food Lion adapted a program that had been successful at Hannaford locations by providing an on-site dietitian and nurse at its corporate office to answer associates’ ties to improve the environment while ticipants with a series of tasks aimed at questions about health and nutri- increasing their physical fitness. Food improving physical fitness, hydration, tion. Food Lion also ran a four-week Lion followed that campaign with a sleep habits and stress management. program in the spring called “EcoFit,” four-week program in the fall called which engaged participants in activi- “Healthy Habits,” which challenged par-
www.delhaizegroup.com/sustainabilityreport/2012 SUSTAINABILITY PROGRESS REPORT 2012 // case studies // Healthy Lifestyles // 77 31 ΜΑΪΟΥ
ΠΑΓΚΟΣΜΙΑ ΗΜΕΡΑ ΚΑΤΑ ΤΟΥ ΚΑΠΝΙΣΜΑΤΟΣ • In Greece, nutrition is one of the four Nutritionists in Harokopio University are Αναπνευσε pillars of Alfa Beta’s health and wellness now analyzing that data, and will use ελευθερα program. In 2012, Alfa Beta continued the results to recommend strategies for its partnership with nutritionists from improvement in 2013 and beyond. Alfa Zησε καλυτερα Harokopio University, who provided Beta may also use this survey data to counselling to associates. Twice a week, generate ideas for educational articles nutritionists came to Alfa Beta head- in its internal newsletter, and to create quarters to meet with associates and a new nutrition guidebook. Additionally, Με αφορμή την Παγκόσμια Ημέρα κατά του Καπνίσματος, offer personalized advice. The service Alfa Beta is looking at associates’ nu- τα νοσοκομεία ΥΓΕΙΑ & ΜΗΤΕΡΑ του Ομίλου ΥΓΕΙΑ, σας παρέχουν τη δυνατότητα διενέργειας μιας Κλινικής Εξέτασης από ειδικούς Πνευμονολόγους was so popular that the banner ex- tritional needs based on the jobs they στη συμβολική τιμή των 20€. panded it to two of its largest stores in perform, and is considering a plan to Η εξέταση περιλαμβάνει: 2012. The nutritionists also provided offer high-energy meals to warehouse Έλεγχο αναπνευστικής λειτουργίας (σπιρομέτρηση) Μέτρηση εξάρτησης από τη νικοτίνη/ηλικία πνεύμονα feedback on the nutritional value of associates.
Κατά τη διάρκεια της εξέτασης θα ενημερωθείτε meals available in the headquarters’ για τις σύγχρονες ιατρικές μεθόδους που θα σας βοηθήσουν να σταματήσετε το κάπνισμα. cafeteria and helped associates make healthier choices. Η επίδειξη του παρόντος είναι απαραίτητη. Η παροχή ισχύει, μόνο κατόπιν ραντεβού, για όσους τηλεφωνήσουν Alfa Beta also surveyed all its associates από 31 Μαΐου έως 15 Ιουνίου 2012, στο 210 9307737 about eating habits and health status.
“We will continue investing in our nutritional pillar because we believe it is worth it for our associates’ quality of life and our children’s future,” says Costas Kalargyros, Human Resources/Organizational Development and Sustainability Director, Delhaize Bulgaria, and member of Alfa Beta’s Sustainability Team and head of its Health & Wellness Program.
Bringing Nutrition Advice While neither pilot proved to be the right to the Store Floor and the model to roll out to all stores, Delhaize Shelves Belgium will apply the lessons it learned to future initiatives. For example, cus- We have a unique opportunity to help tomer feedback from both programs customers make healthier choices by revealed strong demand for practical providing nutrition and wellness advice advice on eating healthier foods, such right in our stores: as recipes or tutorials on how to use unfamiliar ingredients. • Delhaize Belgium had hosted events with dietitians in its stores in the past, but wanted to provide access to these “We now better understand customers’ nutrition experts on a regular basis. expectations for health information,” So in 2012, it tested two approaches says Olivia Capot, Health and Nutri- to providing access to dietitians in its tion Specialist at Delhaize Belgium. “We stores. One program invited customers discovered which subjects interest them by mail to sign up for a guided tour of and how they want to be informed.” a store with a registered dietitian. The 45-minute tours ran each hour, de- pending on the day. They were limited to 10 people to allow each participant to ask questions and get practical advice on how to select healthy food options. The second program placed booths in three stores, where a registered dieti- tian could answer customers’ questions and provide handouts on nutrition in- formation and healthy recipes.
www.delhaizegroup.com/sustainabilityreport/2012 SUSTAINABILITY PROGRESS REPORT 2012 // case studies // Healthy Lifestyles // 78 • Delhaize America’s Hannaford banner provided helpful tips on healthy eat- ing with a new initiative called “Guid- ing Stars Good Ideas.” The program places small displays throughout the stores that feature a simple, healthy, inexpensive recipe idea - for example, combining a bagged salad, dried cran- berries and pecans into a cranberry- pecan salad.
“Shoppers say they want to make changes to the way they eat, but they are time starved, or they don’t know how to cook healthy foods, or think they cost too much,” says Julie Greene, Hanna- ford’s Healthy Living Director. “The ‘Good Ideas’ initiative shows them that cooking a healthy dish doesn’t have to be difficult or expensive.”
Reaching Shoppers Outside content such as “Ask the Nutritionist,” • While all Delhaize America banners of Our Stores a feature on the Mega Image website feature healthy living sections on their that provides professional answers to websites, Hannaford added a new sec- Many of the key decisions about eating customers’ diet and nutrition questions. tion called “Eat Healthy” to its website. happen at home, where consumers plan Mega Image also created new mobile The section provides healthy recipes, their shopping lists and prepare their initiatives, including a Mega Image app product nutrition information and other meals. So our banners used new tools that featured a health and recipes sec- tools that let shoppers compare the and channels to provide nutrition informa- tion, and an in-store QR code program. nutritional value of products when mak- tion to consumers outside of our stores: For the latter, stores placed QR codes ing their shopping lists. Hannaford also • Mega Image in Romania rolled out new on select products in stores, including began using social media to connect online programs to expand upon the organic foods, healthy foods and foods customers with dietitians by launching successful health and nutrition web- for special diets. By scanning the codes weekly chats with a dietitian on its Fa- site it launched in 2009. It added more with their mobile devices, shoppers cebook page. In the chats, consumers news and articles to that website. It also could access more information about asked questions about general health focused on developing its Facebook those products, and advice for how to and nutrition, discussed specific types fan base by increasing the frequency use or prepare them. of diets and learned about foods they of posts, with two to three posts per might not otherwise know how to cook. week focused on health and nutrition topics such as healthy recipes or the “We saw the chance to expand the con- benefits of organic foods. The effort tent we could make available to the cus- helped boost the number of Mega tomers in and out of our stores,” says Image Facebook fans from 11 000 in Mirela Stefan, Digital Coordinator, Mega 2011 to 190 000 by the end of 2012. Image. “Our objective was to bring the The increased online engagement also Mega Image brand closer to the con- brought more attention to existing web sumer in a user-friendly manner.”
www.delhaizegroup.com/sustainabilityreport/2012 SUSTAINABILITY PROGRESS REPORT 2012 // case studies // Healthy Lifestyles // 79 A Focus on Preventive Health
Some banners widened the scope of their initiatives to encourage or support access to preventive health care:
• Delhaize America made preventive health a major component of its as- sociate health and wellness outreach. Because 2012 was the first year that all • Delhaize Serbia offered discount medi- “This was our opportunity to really make a U.S. banners were on the same health cal services to its associates through positive difference in our community, and plan, Delhaize America required all as- a partnership with a private health to be a good neighbor by communicating sociates to choose a primary care phy- clinic located in the same building health and nutrition information for moms sician. Then, it created a “Know Your as its headquarters. Associates, their and kids,” says Gibthi Ihda Suryani, Sus- Numbers” campaign that encouraged spouses and their children could have tainability Head for Super Indo. associates to visit their physician for basic preventive medical examinations important tests, such as cholesterol and tests performed for half price. and blood sugar screening, which can uncover signs of major health problems • Super Indo in Indonesia partnered with like heart disease and diabetes. a community health organization called Posyandu to host monthly clinics for moth- ers and infants. The clinics were held in 22 Super Indo store parking lots and pro- Associates who got tested became eli- vided immunization for infants, along with gible for a health insurance plan with breastfeeding and healthy eating advice additional benefits. “As a result of this for mothers. The program addressed a biometrics testing, our associates know significant health concern in Indonesia: what their health risks are,” says Joanne A decline in breastfeeding rates that is Abate, Director of Delhaize America’s causing problems with infant growth and Health and Wellness Strategy. “Now we nutrition. It also provided much-needed can move on to the next phase: helping support to Posyandu, which had faced a them mitigate those risks.” decline in government funding.
What’s Next? to create more partnerships with outside people they need to eat better or reduce experts, such as dietitians and health their health risks - we need to help them Building on these programs, we will con- clinics. They also are focused on pro- change their behavior and support them tinue to seek creative ways to promote viding more practical information and in creating new habits. health and wellness to our associates direct support that helps customers and and customers. Associates at our ban- associates lead healthier lifestyles. We ners are enthusiastic about the potential understand that it is not enough to tell
www.delhaizegroup.com/sustainabilityreport/2012 SUSTAINABILITY PROGRESS REPORT 2012 // case studies // Healthy Lifestyles // 80 Case studies associate diversity
Welcome to the Neighborhood: Bottom Dollar Food’s Local Approach to Diversity
Whenever we enter a new market, we tailor our stores to the unique characteristics of that location. That process includes gaining a good picture of people who live in that community, so we can staff our stores with a mix of associates that reflects the same diversity as the customers who shop with us. This element of our Diversity and Inclusion efforts was especially important in 2012, when Bottom Dollar Food expanded its footprint in inner-city neighborhoods of Philadelphia and Pittsburgh, Pennsylvania, in the U.S. Because these markets featured a different and more diverse customer base than the banner’s other stores, the Bottom Dollar Food team developed an outreach strategy centered on Diversity and Inclusion to ensure the new stores were well matched to their neighborhoods. Here’s how they did it.
tions, the Bottom Dollar Food team incor- porated a Diversity and Inclusion agenda into its development plans.
Bottom Dollar Food collaborated with internal resources such as the African American Business Resource Group (read more about BRGs in the Associate Diversity section of this report), and reached out to external community partners to assess the Introducing a New Brand needs and interests of those communities. to the Inner City It also developed a recruiting strategy to hire associates from the local community. Bottom Dollar Food’s 2010 expansion to the Philadelphia market was the first time In 2012, the banner expanded its Phila- the banner had opened stores in inner- delphia footprint with 11 new stores and “To be a community store, we have to re- city neighborhoods. Understanding that opened two new stores in the Pittsburgh flect the community that we operate in,” these communities had a different racial, market. This expansion provided an oppor- says Don Ciotti, Bottom Dollar Food’s Di- ethnic and economic mix than some of tunity to further refine Bottom Dollar Food’s rector of Operations for the Northeast the banner’s rural and suburban loca- blueprint for successful store launches. Region.
www.delhaizegroup.com/sustainabilityreport/2012 SUSTAINABILITY PROGRESS REPORT 2012 // case studies // Associate Diversity // 81 Pre-Launch Outreach
Bottom Dollar Food began its community groundwork at least a year before open- ing any inner city store. For example, the banner reached out to local leaders such as city council members, state legislators and heads of neighborhood groups, as well as community organizations such as the Philadelphia Urban League and the Allentown Hispanic Society.
This first goal of this outreach was to learn more about the communities and neighborhoods they were entering. The second goal was to explain to community leaders the commitments that Bottom Dollar Food was making to Diversity and Inclusion - such as recruiting local associ- ates and bringing low prices and fresh, healthy food to underserved neighbor- hoods known as “food deserts” for their “I always say at these meetings that we’re out to community leaders for referrals of lack of access to grocery stores. For ex- looking for great talent, and I challenge talented people, many of whom were ample, Bottom Dollar Food worked with the folks who attend to help us find that hired as new associates. Those new hires Philadelphia Mayor Michael Nutter and talent in the local community,” says Ciotti. were also encouraged to refer friends and City Council President Darrell L. Clarke to family. That strategy has been particularly bring a store to Philadelphia’s Brewery- successful in Philadelphia, where new town neighborhood, which hadn’t had a Living Up to Promises associates are often recruited by a friend grocery store in more than two decades. who works at another Bottom Dollar Food That project followed similar “food desert” location in the city. store openings just over the Pennsylvania border in Youngstown, Ohio. Youngstown The human resources team also recruit- ranked fifth among all U.S. cities for dif- ed using strategies such as a “second ficulty in accessing or affording fresh fruits chance” program that gave people with and vegetables, according to a 2011 study minor criminal records the opportunity to by the Food Research and Action Center. work at Bottom Dollar Food. The program excluded individuals convicted of violent Outreach continued with frequent com- crimes or for stealing. But a person who munity meetings prior to a store opening, committed a minor crime earlier in life at which leaders such as Don Ciotti an- and had otherwise stayed out of trouble swered community members’ questions Once a new store had opened, local would not be rejected simply because of about the store and explained the ban- managers nurtured the community his or her record. ner’s commitments to value, healthy food relationships they had formed prior to and an inclusive hiring strategy. launch. For example, in 2012 Bottom Dol- lar Food marked the opening of each new “People appreciate our willingness to store with USD 500 donations to multiple understand that when a young individual schools in the surrounding neighborhood. makes a mistake, it shouldn’t haunt them In the summer, the banner collected do- for the rest of their lives,” says Ciotti. “We nations for Feeding America food banks know people are looking for an oppor- that provided the equivalent of 110 000 tunity, and they appreciate that we will meals for families in the Philadelphia and have that conversation with them.” Pittsburgh areas.
The stores also worked hard to live up to their commitment to hire from within the community. For example, stores reached
www.delhaizegroup.com/sustainabilityreport/2012 SUSTAINABILITY PROGRESS REPORT 2012 // case studies // Associate Diversity // 82 The Benefits of a Diverse Bottom Dollar Food’s local hiring strat- generating sales that are 5.6% higher Workforce egy has produced a particularly satisfied than the average for the overall banner. workforce: Associates in the banner’s Thanks to these efforts, Bottom Dollar central Philadelphia district reported the Diversity creates engagement with the Food stores in inner city neighborhoods highest rate of overall job satisfaction in community. It means we provide a place hire about 98% of their associates from the 2012 Bottom Dollar Food Associate that people are happy to shop in and local communities. Experience Survey. And 90% of the survey excited to recommend to their friends, responders from that district said that the as well as a place where people really company respects the value of diverse feel good about working. “It’s all about building trust in these com- associates. munities, both in how we serve them and in demonstrating that we mean what we What’s more, the Diversity and Inclusion say,” says Gene Faller, Vice President of strategy has enhanced the success of Retail Operations for Bottom Dollar Food. these new stores. Some locations are
What’s Next? And having recruited so much local talent, Bottom Dollar Food is excited to nurture Bottom Dollar Food will continue its Diver- and develop these associates into the sity and Inclusion outreach as it expands banner’s next generation of leaders. to other urban and inner city locations.
www.delhaizegroup.com/sustainabilityreport/2012 SUSTAINABILITY PROGRESS REPORT 2012 // case studies // Associate Diversity // 83 Case studies Everyday practices
A Fast Turnaround for Food Donations
As a food retailer, we have a unique opportunity to help address the problems of hunger and food insecurity. For years, we have supported organizations that feed the needy in all our operating areas, through programs such as fundraising campaigns, customer food drives and direct food donations. But we are always looking for ways to do more - especially in recent years when the combination of rising global food prices and economic troubles in some of our market areas has put more people at risk of going hungry. This desire to make a difference led Delhaize Belgium to create an innovative system that allowed individual stores to speed surplus food donations to local community organizations.
Answering a Growing Need help. Continuing sluggishness in Europe’s economy was causing more people to Delhaize Belgium has long supported need food aid, just as the European Union local nonprofit organizations with do- was discussing a plan to cut subsidies for nations of surplus, non-perishable food food banks and other nonprofits. delivered via its warehouses, as well as with an annual campaign to encourage Delhaize Belgium wanted to increase its customers to donate money to national engagement with food banks to address food banks. But in spring of 2012, those this growing need. It saw an opportunity food-aid organizations needed more to develop a surplus food donation pro- gram at the local store level, allowing each store to identify products it could no longer sell - such as fresh products ap- proaching their sell-by date - and donate them to local organizations that could quickly redistribute the products to needy people in the community. Such a program would also help stores limit the amount of food that might otherwise have to be thrown away, reducing food waste and saving money on waste disposal. “We knew there was an issue with food banks not having enough products - especially fresh products,” says Jona- than Martens, Environmental Project Manager, Delhaize Belgium. “We saw that we could give them a new source of food to combine with canned and dry products that typically make up their food packages.”
www.delhaizegroup.com/sustainabilityreport/2012 SUSTAINABILITY PROGRESS REPORT 2012 // case studies // Everyday practices // 84 A System for Daily the necessary facilities to handle fresh Daily contact between volunteers, cus- Donations food donations, and an organized volun- tomers and store associates also created teer base that could manage collection a strong dialogue. Volunteers could share Delhaize Belgium selected three stores and redistribution duties. In addition to information about other critical needs, for a pilot donation program. Working in food banks, partners included community such as diapers or blankets, which moti- collaboration with a local organization kitchens that used the donated products vated associates and customers to further that distributes food to people in need to prepare meals for the needy, and a help through store donations. in each of the three cities, they created worker retraining program that used the a system to have surplus food collected products to train unemployed individuals from each store, every day. for new careers in food service industries. “Because it’s local, store associates feel more involved. They might be helping the person living next door,” says Marc First, store associates were trained to iden- Making an Impact tify potential donations among the prod- Dyselinck, Retail Process Improvement Coordinator at Delhaize Belgium. ucts that needed to be removed from the The well-organized system provided shelves, such as fresh food approaching enough surplus food to make 150 meals its sell-by date, fruit with small blemishes, a day for people in the local communities. edible products in damaged packaging, or And while the quantity of food was greatly holiday-related items that shoppers were appreciated, so was the variety and quality. less interested in once the holiday was over. Certain products, such as previously Because the donations varied from day frozen foods and some seafood, could not to day, food banks that typically relied on be donated for safety reasons. boxed or canned food could now add a range of fresh products, such as fruit, Then, volunteers from the nonprofit vegetables and meat. food-aid organizations would arrive at the stores to collect the surplus food for quick re-distribution in the community. “This variety can make the meals healthier, These volunteers also received training and the beneficiaries feel less stigmatized, to formalize and streamline the process: which got a good response from our local They wore badges identifying themselves entities,” says Hubert Servaes, Director and worked with store associates to of the St. Vincent de Paul Society. document all of the products they were taking. That way, the store could track how much food was donated and re- cord those products as “unsold” in the store’s inventory management system. If volunteers had less experience working with fresh food, Delhaize associates also provided them with training on safe food handling procedures.
The three-store pilot program ran for three months and was so successful that Del- haize Belgium quickly decided to expand the project to eight stores. In each city, Delhaize Belgium found a partner with
What’s Next? media and the public, which will help with pact on Delhaize Group’s goal to reduce the sometimes challenging process of waste, and our commitment to make Delhaize Belgium will continue refining finding the right partner organizations to a positive impact on the communities and expanding the donation system, and expand the program to additional stores. we serve. plans to roll out the program to more stores in 2013. The innovative approach By expanding the program, surplus food generated significant interest from the donations can have an even bigger im-
www.delhaizegroup.com/sustainabilityreport/2012 SUSTAINABILITY PROGRESS REPORT 2012 // case studies // Everyday practices // 85 Cool Technology: Advancing the Use of Natural Refrigerants
Refrigerants make up 32% of our carbon footprint - a figure we are working hard to reduce. Nearly half of our refrigeration systems use hydrofluorocarbons (HFCs), which don’t harm the ozone layer but can have substantial negative impact on climate change. We are committed to replacing those systems with ozone- friendly and climate-friendly natural refrigerants. However, switching to natural refrigerants is complicated and expensive. While several of our operating companies tackled the issue head-on in 2012, Delhaize America and Delhaize Belgium in particular gained valuable experience and insights to share across the Group.
a new Hannaford Supermarket planned in North America offer transcritical CO Pioneering Transcritical CO2 2 in the U.S. in Turner, Maine. systems. In early 2012, it selected a Ca- nadian firm and began designing the Delhaize America invested significant Transcritical systems have different build- refrigeration system. Hannaford ordered time and resources in 2012 to build its ing and design requirements than other the system in October 2012, and broke first store to use a transcritical system systems, which affect everything from ground on the new store - slated to open equipment decisions to construction in July 2013 - around that same time. with 100% CO2. Transcritical systems are regarded as the most promising natural considerations. For instance, because refrigerant solution, especially in colder the natural refrigerant creates higher The experience of designing and building climates. Using a transcritical system also pressure, the system requires the use a store with CO2 refrigerants has given meant that Delhaize America could build of steel or high-grade copper piping and Hannaford knowledge to share with its on its experience with cascade systems, specialized valves as safety measures. peers. which are part CO2 and part HFC. The development process for the ground- Hannaford faced the added challenge breaking project began in 2011, when the of finding the right equipment supplier company decided to test the refrigerant in for the new store, since few companies
“We spent a lot of 2012 telling our story to industry organizations,” says Harrison Horning, Hannaford’s Director of Energy and Facilities. “We realized we had a lot of information that we hadn’t shared with our colleagues before. We are excited to continue the natural refrigerant discussion across the Group.”
www.delhaizegroup.com/sustainabilityreport/2012 SUSTAINABILITY PROGRESS REPORT 2012 // case studies // Everyday practices // 86 Testing, and Taking “We are getting good technical support Precautions, in Europe from our suppliers,” says Patkos. “We also have in-house technical know-how. We Delhaize Belgium also worked in 2012 have some experience with transcritical installation, but we have a lot to learn on developing a transcritical CO2 system, which it will pilot at a new store in Brus- once this bigger installation is operating.” sels in the spring of 2013. The company will evaluate the system, and if the results Noting that transcritical CO2 is only one of are positive it could become standard the alternatives under evaluation across practice, according to Georgios Patkos, the Group, Patkos adds, “CO2 is unlikely to Director of the Technical Department at be the only solution. Chemical companies Delhaize Belgium. will also come up with a new generation of refrigerants.”
Patkos’ team also continues to focus on reducing the leakage of HFC refrigerants in existing systems. In order to insure that leaks are caught and repaired quickly, the team revised its contracts with sup- pliers and service contractors to include a leakage fee in the cost of the contract. “We wanted to make them responsible for reacting quickly,” says Patkos.
Part of a Larger Effort Goods Forum (CGF), a global industry net- the ozone layer and climate change. In work for consumer goods manufacturers all of our efforts, we share what we learn Other operating companies tested ad- and retailers. As active members of the across the Group, as well as with our ditional natural refrigerant alternatives. Sustainability Steering Group, we are par- peers and partners in the industry. In Romania, Mega Image evaluated its ticipating globally with the CGF in adopt- rollout of propane as a refrigerant in ing the resolution to begin phasing-out freezer cases. And in Luxemburg, Del- HFC refrigerants as of 2015 and replace haize piloted ammonia as a refrigerant them with non-HFC refrigerants where in two of its stores. these are legally allowed and available. In the U.S., we are participating in the Envi- As we continue our work to replace HFCs, ronmental Protection Agency’s GreenChill we have partnered with a number of partnership, which is aimed at reducing organizations, including The Consumer the impact of refrigerant emissions on
What’s Next? major steps towards reaching our goal of reducing greenhouse emissions by 20% In 2013, Delhaize America and Delhaize and towards fulfilling the CGR resolution Belgium will each open a store that will to begin phasing out HFCs. pilot the use of transcritical CO2 systems -
www.delhaizegroup.com/sustainabilityreport/2012 SUSTAINABILITY PROGRESS REPORT 2012 // case studies // Everyday practices // 87 Creative Routes to Sustainable Commuting
Thousands of customers and associates come and go from our locations every day. As a result, we have a role to play in reducing the pollution and traffic congestion caused by those trips. What’s more, both Delhaize Belgium and the Group are headquartered in Brussels, which is the fourth most congested city in Europe, and ranks 34th in the world for carbon emissions. That made Brussels a natural place to launch a series of innovative programs to reduce traffic congestion, air pollution and greenhouse gas emissions.
Promoting Two Wheels Instead of Four
To promote bicycle use over car use, Del- haize Belgium created a three-legged program. In one initiative, the company offered free bikes - regular and electric - along with helmets and rain gear to all associates at stores and distribution centers who signed a contract pledging to ride to work 75% of the time. If they failed to comply with the terms of the agreement, people in the program had to return everything.
Meanwhile, to encourage customers to bike to the supermarket, Delhaize Bel- gium piloted a program in three stores Delhaize Belgium wanted to increase “It was an honor system,” says Delhaize that made significant improvements in internal awareness of the need for sus- Belgium Mobility Coordinator Davy De- bike infrastructure. The company added tainable transportation at all levels of cock. “We wanted to distribute bikes to 16 new bike racks, replacing the old ones the company - and also to make it fun. people who are motivated to use them with state-of-the art models that provide In addition to offering free bicycles and every day, not just in good weather or extra security and greater convenience. It equipment, during Mobility Week the on the weekend.” also positioned the racks closer to store company parked a handful of electric entrances. bikes at headquarters and at a distribu- tion center. Roughly 80 associates tried Since rolling out in May 2012 with a well- In the third leg of its bicycle program, them out. Delhaize Belgium also provided received pilot test, the program has at- Delhaize Belgium entered into partner- free tickets for associates who wanted to tracted roughly 600 associates, according ship agreements with Belgian cycling try using public transportation. to Decock. organizations to promote cycling as a form of sustainable transportation. It also contracted with a manufacturer to produce an exclusive shopping pack that attaches to a rack on the back of a bike. The packs, which are available at a re- duced price, debuted at stores in early September, in time for Mobility Week, a weeklong sustainable transportation campaign that runs across Europe.
www.delhaizegroup.com/sustainabilityreport/2012 SUSTAINABILITY PROGRESS REPORT 2012 // case studies // Everyday practices // 88 The company also held a 5km race Associates submitted guesses about Of all the incentives, however, one stood between Delhaize Belgium headquar- who would win, and how long the trip out as a real winner, according to Decock: ters in Molenbeek and Delhaize Group would take. The racer on the bike won free breakfasts for associates who used headquarters in Anderlecht. Three top by seven seconds. The three associates sustainable transportation to get to work. managers competed - one on a bike, who guessed correctly each received two The results were clear. Attendance at one in an electric car, and one by metro. train tickets to Paris. breakfast increased 100% in 2012, from 800 participants in 2011 to 1 600 - or more than 10% of all Delhaize Belgium associates.
New Commuting Options for Managers
At Delhaize Belgium headquarters in Brussels, the focus was on trains, not bikes. Looking to cut both greenhouse gas emissions and traffic congestion in the capital city, Delhaize Belgium piloted a small program for a group of 20 as- sociates. From September 2012 through the end of the year, the associates made a commitment to take the train or metro to work for a total 20 days, with the com- pany picking up the fare. Many of the participants ended up ar- ranging their work schedules around In another move to reduce car emissions lar option because the corporate office, their commuting plans. They grouped and traffic, Delhaize allowed managers which has limited parking, offers guar- out-of-office meetings on the days they from both the Belgian operating company anteed spots for electric cars. Other test drove to work, and saved train travel for and Group headquarters to work some programs for managers in 2012 included Tuesdays and Thursdays, when car traffic days in satellite offices that were closer the ability to work from home one day is heaviest in Brussels. At the end of the to their homes. The shorter commutes a week, and a flexible wage option that program, participants’ feedback was fa- provided another benefit: increased pro- allowed them to choose company-funded vorable, according to Decock, who notes ductivity. train travel or a higher salary instead of that all participants said they were willing the standard-issue company car. to continue the arrangement. The com- The company also provided four electric pany is discussing whether to continue cars to travel short distances, such as and expand the program. between company locations - a popu-
What’s Next? the Flanders region to occur early in the morning and late in the evening - eas- Delhaize Belgium will continue the accel- ing traffic congestion during the day and erated rollout of its bicycle rack program reducing noise levels and the amount of to more stores in 2013. It will also expand fuel used to make deliveries. In 2013, it its participation in the PIEK project, which plans to test the program in other regions. involved rescheduling store deliveries in
www.delhaizegroup.com/sustainabilityreport/2012 SUSTAINABILITY PROGRESS REPORT 2012 // case studies // Everyday practices // 89 ABOUT OUR REPORT
www.delhaizegroup.com/sustainabilityreport/2012 SUSTAINABILITY PROGRESS REPORT 2012 // ABOUT OUR REPORT // 90 about our report Sustainability Progress Report 2012
Previous Reports
Sustainability CR Report 2010 CR Report 2009 Report 2011 PDF version PDF version PDF version HTML version
CR Report 2008 CR Report 2007 PDF version PDF version HTML version HTML version
Why we report ity Strategy since 2008 with the most countable for our targets and commit- recent report being published in 2012. ments. It’s also one of the ways we live Reporting has been a valuable inter- Outside the business it has created a up to our Group values - particularly nal tool for driving and managing the strong platform for engaging stake- integrity, determination and humility - performance of our Group Sustainabil- holders, enabling them to hold us ac- and will continue to be so.
About the 2012 Report Scope Global Reporting Initiative This report covers Delhaize Group, in- We use the GRI G3.1 guidelines as a ba- This report gives a concise view of cluding individual operating compa- sis for determining relevant content and performance on our most material is- nies. Unless otherwise stated, quantita- metrics. We self-declare compliance sues over the last year. Throughout tive data refers to Delhaize Group as a with base level C+ requirements of this the report are links to more detailed whole and excludes operating compa- rigorous system. A GRI-referenced table information. We are interested to nies acquired in late 2011 (Serbia, Bos- of indicators can be found here. hear your thoughts on the report, so nia and Herzegovina, Montenegro, Bul- if you have any questions or com- garia and Albania). Information on the Information integrity ments, please get in touch by emailing detailed data scope and methodology Delhaize Group management is re- [email protected] can be found here. sponsible for all aspects of this report. With the assurances detailed below, we Reporting year Economic performance believe it is a fair and accurate repre- Unless otherwise stated, all data and This is covered in detail in our Annual sentation of our 2012 Sustainability per- activities mentioned are for the year Report. formance. 2012. This report will also provide an overview of the last three years of our Report structure and materiality Ernst & Young provided limited assur- Group’s journey to sustainability. This report is structured around our ance to a selection of key performance 2020 Sustainability Strategy. It covers indicators as well as the four spotlights the most material challenges for our stated in the Sustainable Private Brands business, which are defined on our Ma- chapter. The Ernst & Young assurance teriality Matrix. statement can be found here.
www.delhaizegroup.com/sustainabilityreport/2012 SUSTAINABILITY PROGRESS REPORT 2012 // about our report // 91 Documents Referred to in this Report
Throughout this report you will find clearly highlighted links to additional, detailed information on the areas listed below:
• Our Performance Against Goals • Our 2012 Data Table and Methodology • External Assurance Statement • GRI Cross-Reference Table • CDP - Carbon Disclosure Project Report • Sustainable Seafood Brochures • List of Awards We Won for Achievements in 2012 • Our Banners’ Sustainability Web Pages • Our Banners’ Community Programs • Our Banners’ Food Safety Tips • Our Partners • Glossary
www.delhaizegroup.com/sustainabilityreport/2012 SUSTAINABILITY PROGRESS REPORT 2012 // about our report // 92 OUR PERFORMANCE AGAINST GOALS SUSTAINABILITY PROGRESS REPORT 2012
This table gives a snapshot of our Group goals in each strategic focus area. For details of previous years’ performances, see the relevant Sustainability Reports.
We assessed our Group goals at the initiation of our 2020 Sustainability Strategy (see graphic below). Some previous goals were carried over with no change, while others were adapted to best fit the new strategy, and others still are brand new. These goals are 2020 Group goals unless otherwise stated.
Building the most sustainable private brands in our local markets.
Moving to zero waste, fostering healthy lifestyles, supporting associate diversity.
Strengthening our foundation of core sustainability practices to support our associates, our communities and the planet.
www.delhaizegroup.com/sustainabilityreport/2012 SUSTAINABILITY PROGRESS REPORT 2012 // OUR PERFORMANCE AGAINST GOALS // 93 SUSTAINABLE PRIVATE BRANDS
We will engage with our private brand suppliers to build a portfolio of nutritious, healthy, safe, affordable, and sustainable products that surpasses our competition.
GOALS 2012 PROGRESS HEALTH Continue to apply clear nutritional labeling on our private brand products 94% of European private brand products have GDA labels
Improve the nutritional quality of our private brand products, including Reformulated products to reduce fat and sodium reducing negative elements and increasing positive elements • 79% of private brand suppliers audited for food safety by a third-party auditor against GFSI standards Audit all private brand suppliers for food safety compliance • 12% of private brand suppliers audited for food safety against other food safety standards ENVIRONMENTAL • Delhaize Belgium: More than 80% of private brand food products Use only sustainable palm oil for our private brand products** evaluated - December 2015 • Delhaize Belgium: Approximately 20% of the palm oil used for our private brand food products is certified sustainable • Delhaize America: 100% fresh, frozen and canned seafood is Develop operating company-specific sustainable seafood policies and assessed against the company policy and is fully traceable to the wild implementation plans towards the Delhaize Group Sustainable Seafood fishery or farm of origin vision • Delhaize Belgium: 100% of fresh and 80% of frozen seafood is sustainably sourced, in accordance with the company policy SOCIAL Delhaize Belgium: 17% of sales of private brand products that are sourced Ensure that all our private brand suppliers in at-risk countries are audited from at-risk countries are produced in sites audited against BSCI or come against social compliance standards from suppliers that are BSCI members
** Our long term aim is to use traceable sustainable palm oil in our private brand products. ZERO WASTE
We will move our own operations to zero waste, partner with suppliers to reduce waste, and engage our customers to reduce waste.
GOALS 2012 PROGRESS • Delhaize America, Delhaize Belgium, Mega Image: 53% of waste recycled Set plans in place at each operating company for moving to zero waste in • Delhaize America: 8% reduction of waste sent to landfill and non waste- our operations - December 2013 to-energy incineration since 2011 • Delhaize America, Delhaize Belgium: 9% increase in food waste recycled over 2011
HEALTHY LIFESTYLES
We will be a leader in all of our local markets for empowering associates and customers to lead healthy lifestyles.
GOALS 2012 PROGRESS No global goals established for this locally-driven subject
ASSOCIATE DIVERSITY
We will embrace and foster Diversity and Inclusion across our business and our associates will reflect the diversity of the communities in which we operate.
GOALS 2012 PROGRESS Develop and implement Diversity & Inclusion plans across all our operat- Delhaize America: Diversity & Inclusion plan in place, initiated cultural ing companies competence training
EVERYDAY PRACTICES
We will maintain everyday sustainable business practices as a foundation for our operations.
GOALS 2012 PROGRESS ASSOCIATE DEVELOPMENT Ensure that all associates go through an annual documented performance 79% of associates received documented performance dialogues dialogue process GREENHOUSE GAS EMISSIONS Group 20% reduction in CO equivalent emissions per m² of sales area 2 7% reduction since 2008 (against 2008 baseline) Switch refrigerants from ozone-depleting substances (ODS) such as CFCs and HCFCs to ozone-friendly HFCs or other refrigerants throughout the Group, while 50% of total refrigerants used were ozone-friendly minimizing global warming potential (GWP)
www.delhaizegroup.com/sustainabilityreport/2012 SUSTAINABILITY PROGRESS REPORT 2012 // OUR PERFORMANCE AGAINST GOALS // 94 OUR 2012 DATA TABLE AND METHODOLOGY SUSTAINABILITY PROGRESS REPORT 2012
The 2012 Sustainability Progress Report is Delhaize Group’s sixth sustainability report and the third in which we moved to limited assurance for a selected number of indicators. This section aims at providing the information needed to understand our sustainability performance in 2012 and the trends from the previous two years.
It includes the following: • Our 2012 data table with the full set of indicators for 2010-2012 • Data methodology and external assurance on all sustainable data (3-year audit cycle - every KPI is audited at least once every 3 years) • Key definitions
Click here to access Ernst & Young’s 2012 External Assurance Statement
www.delhaizegroup.com/sustainabilityreport/2012 SUSTAINABILITY PROGRESS REPORT 2012 // DATA TABLE AND METHODOLOGY // 95 OUR 2012 DATA TABLE
As explained in detail in the data methodology section, each The scope refers to the percentage covered within the men- year we work on strengthening our processes for data qual- tioned geographical area or entity, indicated as follows in ity. This includes refining definitions and calculations as well the table: as correcting errors found in previous years. We therefore Scope A = data scope expressed in % of 2012 revenues re-stated 2010 and 2011 data when relevant, to enable data Scope B = data scope expressed in % of 2012 associates comparability over years. We achieved limited assurance on Scope C = data scope expressed in % of 2012 square meters several indicators, indicated as follows in the table: of sales area. *Indicators that obtained limited assurance from Ernst &Young for reporting year 2012.
ECONOMIC
SCOPE A KPI 2010 2011 2012 COMMENTS HEALTHY EATING % food sales from products that earned We use our Guiding Stars nutritional information 100% 26% 26% 27% at least 1 star system to give an at-a-glance read-out of how Delhaize America each product scores in terms of nutrition. Foods % private brand food sales from products 100% 29% 29% 28% with 1 star offer good nutritional value, 2 better that earned at least 1 star and 3 best GDAs are used across the food industry indicating on the label the energy and nutrient % of private brand products with Guide- European Operating 100% 60% 80% 94% content of a portion of food or beverage, and line Daily Amounts (GDA) labels Companies how much that represents of an adult’s daily dietary needs FOOD SAFETY % private brand suppliers audited for We are shifting our reporting in 2 KPIs as to be no food safety - against Global Food Safety more accurate: one is specific to our group goal 100% 82% 85% longer Initiative (GFSI) standard or equivalent against GFSI and the other one captures audits used strict criteria against other food safety standards % private brand suppliers audited for GFSI standards are best in class food safety food safety by a third party auditor - standards in the industry. Third party audits 100% 79% against Global Food Safety Initiative (GFSI) against GFSI standards are conducted by standards external auditors % private brand suppliers audited for food 100% 12% Delhaize Group safety against other food safety standards All stores are planned to be audited for food safety each year. New stores acquired in the % company-operated stores audited for 100% 96% 95% 98% last quarter of the reporting year and some food safety stores only going through internal audits justify the gap to reach 100% at year end 100% Number of private brand food recalls 240 170 217 Number of private brand food recalls for 100% food safety reasons (part of total recalls 45 55 83 above) RESPONSIBLE SOURCING 99% % food sales from organic products 1.8% 1.7% 1.7% Number of Marine Stewardship Council 100% (MSC) & Aquaculture Stewardship Council 42 54 81 (ASC) certified products Delhaize Group % seafood sales from Marine Steward- 100% ship Council (MSC) & Aquaculture Stew- x x 3% ardship Council (ASC) certified products % cage-free eggs on total number of 100% 18% 22% 25% eggs products
www.delhaizegroup.com/sustainabilityreport/2012 SUSTAINABILITY PROGRESS REPORT 2012 // DATA TABLE AND METHODOLOGY // 96 SOCIAL
SCOPE B KPI 2010 2011 2012 COMMENTS OCCUPATIONAL HEALTH AND SAFETY The rate is calculated as follows: Accident severity rate, days lost per 1000 [Number of days lost due to accidents 99% 0.24 0.24 0.29 Delhaize Group hours worked / (number of hours worked during the reporting period)] x 200 000 The rate is calculated as follows: European Operating 100% Absenteeism rate 3.4% 3.7% 3.3%* Absenteeism hours/ (hours worked + Companies absenteeism hours) CAREER DEVELOPMENT % of associates who received a perfor- Percentage is calculated on total num- 99% 73% 79% 79%* Delhaize Group mance dialogue ber of associates at the end of the year 99% % of managers positions filled internally 79% 83% 82% ASSOCIATE SATISFACTION Formula used: [(Number of associ- ates at the beginning of the reporting period + External Hires during the reporting period) – total departures] / Delhaize Group 99% Total retention rate 73% 71% 72%* [Number of associates at the begin- ning of the reporting period + External Hires during the reporting period ] x 100 ASSOCIATE TRAINING % of associates who received an 95% 44% 59% 66% instructor-led training % of associates who received a computer 99% 47% 59% 62% based training 95% Number of instructor-led training hours 1 619 197 1 620 686 2 337 513 Delhaize Group Number of computer based training 99% 242 879 322 779 399 564 hours Average number of instructor-led training 95% 19 14 18 hours per trained associate Average number of computer based 99% 3 3 3 training hours per trained associate DIVERSITY 100% % associates who are part-time 56% 56% 56%* 100% % associates who are female 51% 51% 51%* Percentages are calculated on total Delhaize Group number of associates at the end of 99% % of associates over 50 years old 19% 19% 20%* the year 99% % of associates below 30 years old 43% 43% 43% Delhaize America 100% % of associates from ethnic minorities 26% 27% 27%*
SCOPE A KPI 2010 2011 2012 COMMENTS COMMUNITY INVOLVEMENT Products donated, thousand metric Includes direct food donations, ex- 98% 20 22 22 tonnes cludes customers’ donations Includes cash donations from our Direct cash donations to charities, million charitable foundations, sponsorships Delhaize Group 98% 4 4 3 EUR of community programs, and cash donations from store budgets % of direct cash donations on 98% 0.5% 0.7% 0.9% pre-tax profit
www.delhaizegroup.com/sustainabilityreport/2012 SUSTAINABILITY PROGRESS REPORT 2012 // DATA TABLE AND METHODOLOGY // 97 ENVIRONMENTAL
SCOPE C KPI 2010 2011 2012 COMMENTS TOTAL CLIMATE CHANGE IMPACT IN CO2 EQUIVALENT EMISSIONS Total carbon equivalent All years adjusted for 2011 revised refrig- 99% 2 940 150 2 899 983 2 616 213* emissions, tonnes CO2e erant Global Warming Potentials (GWP) Delhaize Group Total carbon equivalent emissions 99% 0.639 0.613 0.592* per m² sales area, tonnes CO2e/m²
BUILDING FACILITIES - ENERGY CONSUMPTION, RENEWABLE ENERGY AND RELATED CO2 EQUIVALENT EMISSIONS Facilities energy consumption 99% 1 828 992 1 791 036 1 603 682* equivalent emissions, tonnes CO2e Facilities energy consumption 99% equivalent emissions per m² sales 0.398 0.378 0.363*
area, tonnes CO2e/m² 99% Facilities energy consumption, MWh 3 741 155 3 721 861 3 575 141* Facilities energy consumption per Delhaize Group 99% 813 786 809* m² sales area, kWh/m² Total renewable electricity con- 99% 240 473 237 087 235 696* sumed on site, MWh % renewable electricity on total 99% 7% 7% 7%* electricity consumed Avoided grid electricity CO emis- 99% 2 62 854 54 521 56 697* sions, tonnes CO2e
SCOPE A KPI 2010 2011 2012 COMMENTS
TRANSPORT - ENERGY CONSUMPTION AND RELATED CO2 EQUIVALENT EMISSIONS Transport includes both transport of our Transport equivalent emissions, 99% 196 030 185 279 177 557* products from distribution centers to tonnes CO e 2 stores and associates business travel Transport equivalent emissions per 99% 0.043 0.039 0.04* m² sales area, tonnes CO2e/m² Delhaize Group Total distance traveled by owned 99% 162 156 152* and by third party trucks, million km Distance traveled by owned trucks, 99% 113 111 102* million km Fuel consumed per 100 km by our 99% 36 35 35* owned trucks, liters/100km
SCOPE C KPI 2010 2011 2012 COMMENTS REFRIGERANTS - CO2 EQUIVALENT EMISSIONS AND OZONE-FRIENDLY REFRIGERANTS Refrigerants equivalent emissions, 99% 915 128 923 668 834 972* tonnes CO2e Refrigerants equivalent Delhaize Group 99% emissions per m² sales area, kg 199 195 189*
CO2e/m² % of ozone friendly refrigerants 98% 42% 49% 50%* used on total refrigerants used
www.delhaizegroup.com/sustainabilityreport/2012 SUSTAINABILITY PROGRESS REPORT 2012 // DATA TABLE AND METHODOLOGY // 98 ENVIRONMENTAL (CONTINUED)
SCOPE A KPI 2010 2011 2012 COMMENTS WASTE AND RECYCLING Total amount of waste sent to 90% landfill and non waste-to-energy 196 835 180 234 166 102 incinerated , metric tones Delhaize Group Total amount of waste 90% 433 430 411 721 404 291 generated, metric tonnes 92% % of waste recycled 52% 53% 53% WATER CONSUMPTION 98% Total water consumption, million m³ 3 485 3 477 3 246* Delhaize Group Total water consumption per m² 98% 0.77 0.75 0.76* sales area, m³/m² CARRIER BAGS Non-reusable carrier bags include Number of non-reusable 2 396 Delhaize Group 99% 2 404 2 414* photodegradable, oxo-biodegradable, carrier bags distributed, in millions biodegradable, paper and plastic bags
www.delhaizegroup.com/sustainabilityreport/2012 SUSTAINABILITY PROGRESS REPORT 2012 // DATA TABLE AND METHODOLOGY // 99 DATA METHODOLOGY
Data systems work performed by the Delhaize Group Carbon footprint methodology Internal Audit to substantiate their con- • As in 2011, local data collection and and data scope clusions. Group consolidation are managed via ERM’s methodology follows the guide- a professional web-based data collec- lines of the World Business Council for Click here to access Ernst tion software and database, Enablon. Sustainable Development (WBCSD)/World & Young’s 2012 External The system facilitates the collection Resources Institute (WRI) Greenhouse Assurance Statement process, and supports data consistency Gas (GHG) Protocol regarding corpo- and consolidation rate greenhouse gas accounting and reporting. The carbon footprint takes • Our carbon footprint measurement is Scope and consolidation into account Scope 1, Scope 2 and Lim- supported by Environmental Resources We specified the relative scope of each ited Scope 3. Management (ERM), an international indicator in our 2012 data table to ease provider of environmental consulting the readers’ understanding of the cover- • Scope 1 (direct GHG emissions): these services. ERM collected and consolidat- age of our data. The scope for 2012 data are emissions from sources that are ed all the energy data and refrigerant collection includes operating companies owned or controlled by Delhaize Group, usage from our operating companies, from the United States, Belgium, Greece, i.e. due to fuel combustion in buildings then calculated the footprint (see below Romania and Indonesia. It excludes op- and company-owned vehicles as well for methodology) erating companies acquired in late 2011 as refrigerants leakage. (Serbia, Bosnia & Herzegovina, Montene- • Scope 2 (indirect GHG emissions): gro, Albania, Bulgaria). Depending on the Data governance accounts for GHG emissions from the indicator, the relative scope is provided in generation of purchased electricity, In 2010, we established a Sustainabil- terms of revenues, number of associates heat or steam consumed by the com- ity Data Review Committee made of six or square meters sales area. pany. They are not “direct” emissions members from different Corporate de- in that they arise from third party in- partments, including Financial Planning Geographic scope stallations but are attributed to the & Analysis, Investor Relations, Internal • Group data covers all operating com- Group’s operations as the end user Audit, IT, Sustainability, Compliance panies when available, excluding 5 of the electricity and Ethics. The Committee is headed Balkans countries (mentioned above). by Nicolas Hollanders, Executive Vice Group consolidated data might, how- • Limited Scope 3 (other indirect emis- President Human Resources, IT and ever, exclude specific operating com- sions) where Delhaize Group still has Sustainability, a member of the Execu- panies due to data unavailability. significant influence: trucking emissions from subcontracted trucks that deliver tive Committee. This structure provided • U.S. data includes all our U.S. operating Delhaize Group products from oper- a review of our 2012 data and related companies, unless specified otherwise processes. The purpose of the Commit- ated distribution centers to stores; and • European operating companies’ data tee is to strengthen our performance in fuel combustion by planes for execu- includes data from Delhaize Belgium, sustainability tracking and reporting, and tive and associates travel, including Alfa Beta, and Mega Image, unless to support the integration of our sustain- commercial flights and leased aircraft. otherwise specified ability data processes into the financial data processes. Operational scope The Group’s total CO2 equivalent emis- sions and energy figures include all • Company-operated stores only (most energy and related emissions data as Data assurance sustainability data from affiliated stores defined by the scopes above, including All reported sustainability indicators are are not tracked) data from facilities that closed or opened audited once every 3 years. • Distribution centers during 2011, with the exception of recently Delhaize Group contracted Ernst & Young • Office buildings acquired operations in Serbia, Bosnia to perform a limited assurance engage- & Herzegovina, Montenegro, Albania, • Products transportation and associates ment on a set of 27 indicators including Bulgaria. travel (owned and third party trucks the carbon emissions related indicators and vehicles) (marked as * in the 2012 data table), in ERM’s methodology uses the latest emis- order to increase the reliability of the sion factors for countries and fuel types data gathering procedures and the ac- from the Intergovernmental Panel for countability level of the relevant business Climate Change (IPCC), the International managers. E&Y partially relied on the Energy Agency (IEA), and other appropri-
www.delhaizegroup.com/sustainabilityreport/2012 SUSTAINABILITY PROGRESS REPORT 2012 // DATA TABLE AND METHODOLOGY // 100 ate sources. For refrigerants leakage, Data trends Ethnic minorities it uses the Global Warming Potentials We use 2010 as our baseline for compari- Racial and ethnic categories are reported (GWP) factors for refrigerants available son. We had to re-state some of the 2010 as defined by the United States Census from Bitzer International 2011. and 2011 data to make it comparable Bureau: Asian, Hispanic or Latino, Na- with 2012. Re-statements are mainly due tive American, African American, Native We did not extend the exercise to include to corrections to previous years’ errors Hawaiian and Pacific Island. all Scope 3 emissions but we are work- and refinement in calculation methods Food ing with the industry (mainly through and definitions. This process ensures All edible products we sell (excludes non the Consumer Goods Forum) to better quality and comparability of our data edible grocery items) understand our climate change impact over years. throughout our entire value chain. Scope Normalization per sales area 3 defined by the GHG Protocol accounts CO emissions, energy and water ab- Definitions and calculations 2 for all the remaining emissions that result solute data cover all our facilities – in- To support data consolidation, we adopt from our activities, ranging from prod- cluding the ones that opened or closed common definitions of indicators on sus- ucts transportation to affiliated stores to during the reporting year. To normalize tainability across the Group. Below are emissions from our supply chain, which those, we divide the absolute emissions notes on specific definitions to add con- includes growing and packaging the or consumption by the sales area (square text to the ‘2012 data table’ as needed food we sell. meters) of our stores in operation on and facilitate comparison with other December 31st. companies. Relevance of performance Retention rate Absenteeism rate indicators and data trends It is the measure of our ability to retain Number of hours lost for absenteeism on associates during the reporting year, Relevance of performance total number of hours scheduled to be in percentage of our total number of indicators worked by our associates. Absenteeism associates. Associate departures are To improve our performance reporting includes an associate absent from work considered, including both voluntary and in 2012, we assessed the relevance and because of incapacity of any kind, not non-voluntary departures. materiality of the indicators we had pub- just as a result of work-related accident lished in our previous reports - against or disease. Our definition is based on the Sales area / gross area the Global Reporting Initiative principles European Work Council. Sales area is the sum of the store areas and framework, against stakeholders’ Specifications: where products are sold and services requests and against our Group sustain- • Excludes leave absences such as holi- provided. ability strategy. This process has led to days, study, maternity/paternity leave The store gross area includes the sales the following main adjustments: and compassionate leave area but also the storage, office, and preparation spaces. The sales areas • Our Sustainability Report focuses on the • Includes absence because of illness used in the report are based on stores key performance indicators that were or accidents assessed as best to show our progress in operation on December 31st. • Includes unjustified absence against our strategy in sustainability Distribution distance of owned and and other material issues under our Accident severity rate third party trucks reporting scope. When relevant and Number of days lost due to accidents The total distance made by owned and possible a 3-year trend is provided, per 1 000 hours worked. The number of third party trucks, between distribution using a graph where appropriate. days are days scheduled to be worked centers and company-operated stores • A separate ‘2012 data table’ includes according to each associate’s schedule. (to go and return), is calculated. Excep- the full set of indicators we report on. It An accident is a non-fatal or fatal injury tion for Delhaize Belgium that includes contains indicators that were assessed arising in the course of work or on the also the total distance made by trucks as second priority indicators but still rel- way from home to work and from work between distribution centers and affili- evant for our progress reporting and for to home. Our formula is based on the ated stores. external stakeholders. We for instance Global Reporting Initiative (GRI) guide- included more absolute data as to fit lines. different analysts’ methodologies. CO emissions / CO equivalent (CO e) While we value consistency in our report- 2 2 2 CO emissions data reported stand for ing, we will continue to assess the best 2 a calculated CO equivalent: actual CO indicators for disclosure and to strength- 2 2 emitted plus equivalent emissions from en the methodology behind them. other greenhouse gases.
www.delhaizegroup.com/sustainabilityreport/2012 SUSTAINABILITY PROGRESS REPORT 2012 // DATA TABLE AND METHODOLOGY // 101 external Assurance Statement Sustainability Progress Report 2012
Delhaize Group contracted Ernst & Young to perform a limited assurance engagement on a set of 27 indicators including the carbon emissions related indicators, in order to increase the reliability of the data gathering procedures and the accountability level of the relevant business managers. E&Y partially relied on the work performed by the Delhaize Group Internal Audit to substantiate their conclusions.
www.delhaizegroup.com/sustainabilityreport/2012 SUSTAINABILITY PROGRESS REPORT 2012 // external Assurance Statement // 102 www.delhaizegroup.com/sustainabilityreport/2012 SUSTAINABILITY PROGRESS REPORT 2012 // external Assurance Statement // 103 www.delhaizegroup.com/sustainabilityreport/2012 SUSTAINABILITY PROGRESS REPORT 2012 // external Assurance Statement // 104 www.delhaizegroup.com/sustainabilityreport/2012 SUSTAINABILITY PROGRESS REPORT 2012 // external Assurance Statement // 105 GRI CROSS-REFERENCE TABLE SUSTAINABILITY PROGRESS REPORT 2012
This index is based on the Global Reporting Initiative (GRI) Standard Disclosures and Reporting Principles, version 3.1. To communicate to what extent the G3 Guidelines have been utilized in our report, GRI publishes “Application Levels”. We self-declare compliance with base level requirements (Level C+). Application Levels and G3.1 guidelines can be found www.globalreporting.org
www.delhaizegroup.com/sustainabilityreport/2012 SUSTAINABILITY PROGRESS REPORT 2012 // GRI CROSS-REFERENCE TABLE // 106 Key Partial stands for : Partially Reported - Full stands for : Fully Reported
PROFILE
GRI REFERENCE DISCLOSURE 2012 Sustainability Report website links* 1. STRATEGY AND ANALYSIS 1.1 CEO and Chairman's statement full Approach / Interview with P-O Beckers and M. Jansson Approach / 2012 Highlights Approach / The Big Picture Approach / Our Material Issues Performance / Sustainable Private Brands (Risks and Opportunities) 1.2 Key impacts, risks, and opportunities full Performance / Zero Waste (Risks and Opportunities) Performance / Healthy Lifestyles (Risks and Opportunities) Performance / Associate Diversity (Risks and Opportunities) Performance / Everyday Practices (Risks and Opportunities)
2. ORGANIZATIONAL PROFILE 2.1 Name of the organization full Approach 2.2 Primary Brands full Annual Report 2.3 Operational structure full Annual Report 2.4 Location of headquarters full Annual Report 2.5 Countries of operation full Annual Report 2.6 Nature of ownership and legal form full Annual Report 2.7 Markets served full Annual Report 2.8 Scale of the organization full Annual Report 2.9 Significant changes in operation full Annual Report 2.10 Awards received full List of Awards
3. REPORT PARAMETERS 3.1 Reporting period full About Our Report 3.2 Date of most recent previous report full About Our Report 3.3 Reporting cycle full About Our Report 3.4 Contact point full About Our Report Approach / Our Strategy 3.5 Defining content full Approach / Our Material Issues About Our Report 3.6 Boundary of the report full Annual Report About Our Report 3.7 Limitations on report scope full Our 2012 Data Table and Methodology 3.8 Subsidiaries full Annual Report 3.9 Data measurement techniques full Our 2012 Data Table and Methodology 3.10 Restatements full Our 2012 Data Table and Methodology Significant changes in scope and 3.11 full Our 2012 Data Table and Methodology methods About Our Report 3.12 GRI content index full GRI Cross-Reference Table About Our Report 3.13 Assurance statement full External Assurance Statement Our 2012 Data Table and Methodology
* Note: These links might not work properly on all browsers
www.delhaizegroup.com/sustainabilityreport/2012 SUSTAINABILITY PROGRESS REPORT 2012 // GRI Cross-Reference Table // 107 PROFILE (CONTINUED)
GRI REFERENCE DISCLOSURE 2012 SUSTAINABILITY REPORT WEBSITE LINKS* 4. GOVERNANCE, COMMITMENTS AND ENGAGEMENTS Approach / Sustainability Governance & Management 4.1 Governance structure full Annual Report 4.2 Chair / Executive Officer status full Annual Report 4.3 Board structure full Annual Report 4.4 Board: mechanisms for feedback full Annual Report 4.5 Remuneration linkage full Annual Report 4.6 Conflicts of interest full Annual Report 4.7 Board: qualifications and expertise full Annual Report 4.8 Code of ethics full Approach / Compliance & Ethics 4.9 Board: oversight of performance partial Annual Report 4.10 Board: evaluating own performance full Annual Report 4.11 Precautionary principles full Annual Report Approach / Sustainability Timeline Performance / Sustainable Private Brands 4.12 External charters or initiatives endorsed partial Performance / Greenhouse Gas Emissions / Refrigerants Our Partners 4.13 Memberships in industry associations full Our Partners Approach / Our Stakeholders 4.14 List of stakeholders full Our Partners Approach / Our Strategy Identification and selection of stake- Approach / Our Stakeholders 4.15 full holders Approach / Our Material Issues Our Partners Approaches to stakeholder engage- Approach / Our Strategy 4.16 full ment Our Partners Approach / The Big Picture Approach / Our Strategy Performance / Sustainable Private Brands Key topics and concerns through 4.17 full Performance / Healthy Lifestyles engagement Performance / Zero Waste Performance / Associate Diversity Performance / Everyday Practices
* Note: These links might not work properly on all browsers
www.delhaizegroup.com/sustainabilityreport/2012 SUSTAINABILITY PROGRESS REPORT 2012 // GRI CROSS-REFERENCE TABLE // 108 MANAGEMENT APPROACH & PERFORMANCE INDICATORS
GRI REFERENCE DISCLOSURE 2012 SUSTAINABILITY REPORT WEBSITE LINKS* ECONOMIC Management approach full Annual Report Annual Report Performance / Everyday Practices / Community EC1 Economic profile full Our 2012 Data Table and Methodology Case study / Everyday practices / A Fast Turnaround for Food Donations Risks and opportunities due to climate EC2 partial Performance / Everyday Practices / Greenhouse Gas Emissions change EC3 Defined benefit plan obligations full Annual Report EC7 Local hiring: procedures and proportion partial Performance / Everyday Practices / Community EC9 Indirect economic impacts full Approach / The Big Picture EC4-EC6, none - EC8
ENVIRONMENTAL Approach / Our Strategy Approach / Our Material Issues Management approach full Our Performance Against Goals Performance / Everyday Practices / Greenhouse Gas Emissions Our 2012 Data Table and Methodology EN3, EN4, Performance / Everyday Practices / Greenhouse Gas Emissions / Energy EN5, EN6, Energy usage and efficiency initiatives full Our 2012 Data Table and Methodology EN7 EN8 Water consumption partial Our 2012 Data Table and Methodology Performance / Everyday Practices / Greenhouse Gas Emissions / Energy EN14 Managing impact on diversity full Performance / Sustainable Private Brands / Environmental EN16, EN17, Performance / Everyday Practices / Greenhouse Gas Emissions Greenhouse gas emissions full EN18, Our 2012 Data Table and Methodology EN19 Performance / Zero Waste EN22 Waste partial Our 2012 Data Table and Methodology Performance / Zero Waste / Reducing, Reusing, Recycling Environmental impacts of products and Performance / Zero Waste / Food Waste EN26 partial services Performance / Everyday Practices / Greenhouse Gas Emissions Our 2012 Data Table and Methodology Environmental impacts of transporting Performance / Everyday Practices / Greenhouse Gas Emissions EN29 full products Our 2012 Data Table and Methodology EN1-EN2, EN9-10, EN11-13, EN15, EN20-EN21, none - EN23-25, EN27, EN28, EN30
* Note: These links might not work properly on all browsers
www.delhaizegroup.com/sustainabilityreport/2012 SUSTAINABILITY PROGRESS REPORT 2012 // GRI CROSS-REFERENCE TABLE // 109 MANAGEMENT APPROACH & PERFORMANCE INDICATORS (CONTINUED)
GRI REFERENCE DISCLOSURE 2012 SUSTAINABILITY REPORT WEBSITE LINKS* LABOR PRACTICES AND DECENT WORK Approach / Our Material Issues Our Performance Against Goals Performance / Healthy Lifestyles (Risks and Opportunities) Management approach full Performance / Associate Diversity (Risks and Opportunities) Performance / Everyday Practices / Associate Development Our 2012 Data Table and Methodology Annual Report LA1 Employment data full Our 2012 Data Table and Methodology Annual Report Performance / Everyday Practices / Associate Development / LA2 Employee turnover - retention rate partial Training and Talent Development Our 2012 Data Table and Methodology Occupational health and safety LA7 partial Our 2012 Data Table and Methodology indicators Performance / Healthy Lifestyles / Associates LA8 Prevention regarding serious diseases full Case study / Health and Wellness Check-Up: Our Latest Efforts to Encourage Healthy Lifestyles Performance / Everyday Practices / Associate Development / LA10 Average hours of training per associate partial Training and Talent Development Our 2012 Data Table and Methodology Performance / Everyday Practices / Associate Development / LA11 Skill management and lifelong learning partial Creating a Performance Culture Our 2012 Data Table and Methodology Performance / Everyday Practices / Associate Development / Performance and career development LA12 partial Creating a Performance Culture reviews Our 2012 Data Table and Methodology Performance / Associate Diversity / Diversity & Inclusion LA13 Diversity and equal opportunity partial Our 2012 Data Table and Methodology LA3-LA6, LA9, LA14, LA15 none -
HUMAN RIGHTS Approach / Our Material Issues Approach / Compliance & Ethics Management approach partial Our Performance Against Goals Our 2012 Data Table and Methodology HR3 Employees trained on HR policies partial Our 2012 Data Table and Methodology Approach / Our Material Issues Freedom of association and collective HR5 partial Performance / Sustainable Private Brands (Risks & Opportunities) bargaining Performance / Sustainable Private Brands / Social / Social compliance Approach / Our Material Issues HR6 Child labor partial Performance / Sustainable Private Brands (Risks & Opportunities) Performance / Sustainable Private Brands / Social / Social compliance Approach / Our Material Issues HR7 Forced and compulsory labour partial Performance / Sustainable Private Brands (Risks & Opportunities) Performance / Sustainable Private Brands / Social / Social compliance HR1, HR2, HR4, HR8-H11 none -
* Note: These links might not work properly on all browsers
www.delhaizegroup.com/sustainabilityreport/2012 SUSTAINABILITY PROGRESS REPORT 2012 // GRI CROSS-REFERENCE TABLE // 110 MANAGEMENT APPROACH & PERFORMANCE INDICATORS (CONTINUED)
GRI REFERENCE DISCLOSURE 2012 SUSTAINABILITY REPORT WEBSITE LINKS* SOCIETY Approach / Our Material Issues Approach / Compliance & Ethics Management approach partial Our Performance Against Goals Performance / Everyday Practices / Community Our 2012 Data Table and Methodology S05 Public policy positions partial Approach / Compliance & Ethics S01-S04, S06-S010 none -
PRODUCT RESPONSIBILITY Approach / Our Material Issues Management approach partial Performance / Sustainable Private Brands / Health / Labeling Our 2012 Data Table and Methodology PR1 Customer product safety assessments partial Our 2012 Data Table and Methodology PR2 Non-compliance partial Our 2012 Data Table and Methodology PR3 Product information requirements full Performance / Sustainable Private Brands / Health / Labeling PR4-9 none -
* Note: These links might not work properly on all browsers
www.delhaizegroup.com/sustainabilityreport/2012 SUSTAINABILITY PROGRESS REPORT 2012 // GRI CROSS-REFERENCE TABLE // 111 CDP - CARBON DISCLOSURE PROJECT REPORT SUSTAINABILITY PROGRESS REPORT 2012
Since 2008, we have worked with Environmental Resources Management (ERM) to measure our Greenhouse Gas (GHG) emissions from global operations. Since 2012, we employed Ernst & Young to provide external data assurance. We submitted our first report to the CDP (Carbon Disclosure Project) in 2010. Since then, we submit a report on a yearly basis.
In 2012, Delhaize Group entered in the Carbon Disclosure Leadership Index (CDLI) of companies from the Benelux.
Click on the link below to access the report www.cdproject.net/en-US/Pages/HomePage.aspx
www.delhaizegroup.com/sustainabilityreport/2012 DELHAIZE GROUP SUSTAINABILITY REPORT ‘12 // CDP - CARBON DISCLOSURE PROJECT REPORT // 112 SUSTAINABLE SEAFOOD BROCHURES SUSTAINABILITY PROGRESS REPORT 2012
As part of their effort to promote sustainable seafood, Delhaize America and Delhaize Belgium published brochures to enhance customer awareness. Included here are two examples. The U.S. brochure, created for Sweetbay customers, explains Sweetbay’s approach to sustainable seafood, answers common questions, and directs customers to where to find more detailed information on the seafood sourcing policy. The Belgian “Fish Guide” uses a traffic-light system to clearly indicate which fish species are sustainably harvested, those to be consumed moderately and those to be avoided. The Guide also indicates which species can be purchased at Delhaize stores (note that “red” species of fresh fish are no longer sold by Delhaize).
Frequently Asked Questions
What does Sweetbay’s sustainable seafood Are all seafood products sold at Sweetbay SweetbaySupermarket.com/seafood policy mean? stores traceable?
We will sell products harvested using legal Every seafood product in the store is fully means in regulated environments and will work traceable, whether it’s located in the fre proactively with the industry to encourage frozen or grocery departments. sh, investment in gear and farming technologies that reduce seafood production’s impact on the Why doesn’t Sweetbay ban the sale of certa environment. Sweetbay will aim to prioritize its species? sourcing to fisheries that are harvested to ensure in long-term sustainability. Every wild- Sweetbay recognizes that there are fisheries seafood item will come from a fisherycaught protected and farms that are well managed, and others by an enforceable science-based management that aren’t. To encourage the producers plan. These management plans govern that act responsibly, Sweetbay won’t ban an amount, timing and method of harvesting to the entire species due to problems with a specific ensure that seafood populations will continue fishery. Instead, we’ll work with our suppliers to be healthy well into the future. Farmed items to find sources that comply with our policy for are required to be Best Aquaculture Practices sustainable practices and traceability. If we c (BAP) certified. All products are requir find those sources, we won’t sell the product. Information about an’t traceable back to the source fishery ored farm. to be Sweetbay’s policy for Where does the Sweetbay seafood sourcing How can I tell which products meet Swe policy rank compared to other grocers? sustainability criteria? etbay’s Sweetbay’s sustainable seafood policy covers Sustainable All food products in our seafood depart the widest range of products among major grocery aisles, and frozen department, where ment, U.S. grocery companies with more than seafood is the primary ingredient, wi seafood items in compliance with our policy. 2,500 standards outlined in our policy. ll meet the Seafood How does Sweetbay know whether t ...... it sells complies with its policy? he seafood Sweetbay is requiring full traceability for all the Want to learn more about Sweetbay’s seafood it sells to ensure we know where it was sustainable seafood policy and where harvested. We also work with the Gulf seafood products sold at Sweetbay came from? specific La mer a besoin de vous ! Research Institute to confirm the fisheries of Maine that supply our seafood are responsibly managed. Our complete sustainable seafood For farmed products, we are requiring purchasing policy is available at certification to the Global Aquaculture Alliances SweetbaySupermarket.com/seafo Best Aquaculture Practices (BAP) standard. with more information and frequentlyod , askedalong questions. To learn where a specific product we sell comes from, customers can ema Vous aimez les produits de la mer et ils vous le rendent bien. Mais la through our “Ask the Seafood Expert” link on il us pêche, et même l’élevage, de certaines espèces posent problème : sur- SweetbaySupermarket.com/seafood. pêche, menace de disparition de certaines espèces, répercussions sur l’environnement… la situation est préoccupante. SSF_BROCHURE.indd 1 En tant qu’entreprise responsable, nous avons pris toute une série de TE VERMIJDEN mesures en collaboration avec le WWF. C’est un engagement de notre Productiewijze Visvangst part, mais vous êtes également concernés. C’est pourquoi nous vous VERSE SCHAAL- EN SCHELPDIERENHerkomst Visvangst proposons ce conso-guide des produits de la mer afin de vous guider Stille & Indiaanse Oceaan Soort 11/16/12 11:35 AM Visvangst dans vos achats, de vous aider à choisir ! Roze garnalen Andere plaatsen UITSTEKENDE KEUZE Productiewijze Tijger garnalen, gambas N-W & N-O Atlantische Oceaan Aquacultuur Pourquoi ce guide ? Herkomst St Jacobsschelp Aqua. + visvangst Pour vous aider à mieux consommer, de façon plus Wereld Soort responsable et de profiter de façon durable de tous Aquacultuur les bienfaits des produits de la mer. Roze garnalen Bio Europa C’est un guide pratique qui vous indique les espèces Aquacultuur Nederland, Frankrijk, Engeland à privilégier, à consommer avec modération ou à évi- Mosselen Visvangst ter ainsi que la méthode de production et la zone de Oesters China pêche ou le pays d’élevage. Visvangst (pot) Vous pouvez l’imprimer et l’emporter avec vous en Rivierkreeft Canada, Noord Atlantische Oceaan Via dit logo herken je in één oogopslag magasin pour choisir les produits à privilégier en de vissoorten die bij Delhaize te koop zijn. Normandie UITSTEKENDE KEUZE: toute connaissance de cause. Votre rôle est capital ! St Jacobsschelp Geen overbevissing, goed beheerste Wulken kweek. Minimale of beperkte schade Het keurmerk MSC garandeert aan het milieu. dat deze vis op duurzame wijze is MET MATE TE GEBRUIKEN Productiewijze gevangen.
ENSEMBLE POUR Visvangst UNE PÊCHE Dit product voldoet aan wereld- DURABLE Herkomst Visvangst wijde standaard van de ASC voor Noord-West Atlantische Oceaan MET MATE TE GEBRUIKEN: 1/5 Soort duurzame gekweekte zeeproducten. Visvangst Visbestand staat onder druk of er loopt www.asc-aqua.org Noordse garnalen Azië, Ecuador, Brazilië een verbeteringstraject voor de vangst- Visvangst (hand) methode. Tweede keuze na de soorten Tijger garnalen, gambas Noordzee uit de “uitstekende keuze“-tabel. Visvangst Grijze garnalen Noordzee Visvangst Kokkels Noordzee fr.delhaize.be/fr-be/-/media/ Visvangst TE VERMIJDEN: Krab Noord-Oost Atlantische Oceaan Overbeviste soorten, waarvan sommige Visvangst N-O Atlantische Oceaan + Noordzee met uitsterven zijn bedreigd. Hun kweek en files/about/documents/ Kreeft bevissing zijn schadelijk voor het milieu. Langoestienen Noordzee 4/5 corporatesustainability/guide%20poisson.pdf Messen-zwaardschede
nl.delhaize.be/nl-be/-/media/ files/about/documents/ corporatesustainability/viswijzer.pdf
www.delhaizegroup.com/sustainabilityreport/2012 SUSTAINABILITY PROGRESS REPORT 2012 // SUSTAINABLE SEAFOOD BROCHURES // 113 List of Awards We Won for Achievements in 2012 Sustainability Progress Report 2012
Sustainable Zero Private Brands Waste Delhaize Serbia: “Najbolje iz Srbije” (Best of Serbia) Delhaize Belgium: Greener (David Vander Schueren, COO Delhaize Serbia) Packaging Award From: Serbia Chamber of Commerce and Ministry of Trade From: Fost Plus and Gondola and Telecommunications Delhaize Belgium was awarded Delhaize Serbia private brand “Premia” was awarded the a prize for the new packaging for prize of best private brand in Serbia. “Premia” was recog- a range of dry fruits private brand nized as best private brand in the region. Over 800 food products. The award is presented products are produced for Delhaize Serbia by 80 domestic annually to put companies in the producers. The products are exclusively available in Delhaize spotlight who do efforts to reduce the Serbia’s stores. ecological impact of their packaging.
Hannaford: Environmental Leaders (11 Hannaford stores) From: Maine Department of Environmental Protection (DEP) “Environmental Leaders” is Maine’s DEP Award to supermar- kets that achieve a level of environmental accomplishment. Stores are audited by DEP officials and scored based on green practices and building aspects.
Mega Image: Waste Management From: Green Business Index Mega Image was awarded 3rd place for its effective waste management program.
www.delhaizegroup.com/sustainabilityreport/2012 SUSTAINABILITY PROGRESS REPORT 2012 // List of Awards We Won // 114 Everyday Greenhouse Gas Emissions Practices Alfa Beta: 2012 BREEAM Certificate (Alfa Beta’s Green Store) Food Safety From: BRE Organization Alfa Beta: 2012 Excellence Award Alfa Beta’s Green store in for Quality Assurance Systems Stamata was awarded with the From: Self Service Magazine Awards Building Research Establishment Environmental Assessment The “Agrodiasfalisi” quality assurance system was awarded Method (BREEAM) international certification, an environmental for its effective and innovative nature. It was created and is assessment method and rating system for buildings. BREEAM applied only at Alfa Beta. sets the standard for best practice in sustainable building design, construction and operation. Alfa Beta’s Stamata store is the first BREEAM certified commercial building in Greece. See also: http://blog.delhaizegroup.com/2012/08/good- Associate Development news-from-greece-abs-green-store-goes-breeam/ Alfa Beta: 2012 “Change Management” Award From: KPMG This award by KPMG - a global network of professional firms Alfa Beta: 2012 Excellence providing Audit, Tax and Advisory services was attributed for Award for Bioclimatic Store the “Value Diffusion” program applied at Alfa Beta. (Alfa Beta’s Green Store) From: Self Service Magazine Excellence Awards Alfa Beta’s Green store was awarded community for being an innovative, effective and Alfa Beta: 2012 Excellence social responsible store. Award for Social Responsibility From: Self Service Magazine Alfa Beta: 2012 Environmental Awards Award for Bioclimatic Store Corporate Social Responsibility pro- (Alfa Beta’s Green Store) gram implemented in cooperation From: Self Service Magazine with Elais (Unilever Hellas). During Environmental Awards the program Alfa Beta and Unilever Self Service Magazine awards inno- organized a Facebook competition. vative environmental friendly, energy The winners were awarded products producing and saving projects. for Easter Day lunch.
Alfa Beta: 2012 2nd European Environmental Hannaford: 2012 Hon. Edmund S. Muskie Award (Alfa Beta’s Green Store) Access to Justice Award (Beth Newlands From: Greek Association of Environmental Campbell, President Hannaford) Protection Companies (PASEPPE) From: The Muskie Fund for Legal Services Awards best practices and companies involved in all stages The award is presented annually to recognize individuals of waste management such as construction management, in the community who demonstrate a strong commitment technology companies, industries, companies engaged to the public good. in energy saving, as well as, specialized consultants and product suppliers.
www.delhaizegroup.com/sustainabilityreport/2012 SUSTAINABILITY PROGRESS REPORT 2012 // List of Awards We Won // 115 Alfa Beta: 2012 Green Leader Award Hannaford: LEED-EB: O&M, silver From: Center of Sustainability (CSE) (Hannaford store in Bennington, Vermont) and the Research Marketing From: U.S. Green Building Council This award was presented for the energy producing and Hannaford’s store in Bennington is the first establishment in energy saving methods that Alfa Beta applied in its store Vermont to be recognized with this certification. network. The award promotes companies, products and The LEED for Existing Buildings: Operation & Maintenance services that have proven to reduce greenhouse gas emis- Rating System is a set of voluntary performance standards sions in their operations. for the sustainable ongoing operation of buildings not un- dergoing major renovations. It is intended to provide existing buildings an entry point into the LEED certification process. Alfa Beta: 2012 Energy Mastering - Energy Class From: Self Service Magazine Environmental Awards Alfa Beta was awarded for the en- ergy producing and saving methods applied in its store network. Self Service Magazine awards inno- vative environmental friendly, energy producing and saving projects.
Food Lion: 2013 Energy Star Award From: Energy Star EPA
Food Lion won the 2013 Energy Star award for its energy Hannaford: LEED-EB: O&M, certified reduction efforts in 2012. (Hannaford store in Skowhegan, Maine) The Environmental Protection Agency (EPA) and the De- From: U.S. Green Building Council partment of Energy (DOE) has honored businesses and or- The LEED for Existing Buildings: O&M Rating System is a set of ganizations for their outstanding contribution to reducing voluntary performance standards for the sustainable ongoing greenhouse gas emissions through energy efficiency at the operation of buildings not undergoing major renovations. It 2012 ENERGY STAR Awards ceremony. is intended to provide existing buildings an entry point into the LEED certification process.
Delhaize Belgium: Green Truck Award (silver) From: MMM Business Media This annual award puts the spotlight on the initiatives of companies that contribute to more environmentally friendly transport.
Food Lion: Duke Energy’s Power Partner Award From: Duke Energy Food Lion was recognized by Duke Energy as Power Partners for its individual efforts in energy efficiency, sustainability. The award was won for Food Lion’s LED retrofit program, which resulted in rebates totaling more than USD 600 000 in 2012.
www.delhaizegroup.com/sustainabilityreport/2012 SUSTAINABILITY PROGRESS REPORT 2012 // List of Awards We Won // 116 Other Awards Mega Image: Best Retailer in the Modern Trade From: Piata Magazine The competition is open to all retailers from all formats (dis- counters, hypermarkets, supermarkets,etc.) and the prize is awarded based on the votes of all suppliers. Three criteria are taken into account: the policy for listing/ delisting products, the services offered to supplliers and sales. Receiving the prize represents not only a recognition for outstanding business results, but also a vote of trust from suppliers.
Picadilly: “Mystery Shopper” Customer Experience Excellence Award (The Picadilly retail chain) From: Progressive Magazine The “Mystery Shopper” prize highlights the high quality ser- vices provided to customers at Piccadilly stores. Mystery Shoppers evaluated all retailers in the country using criteria such as the aspect of the goods sold and the presentation of the products and services.
www.delhaizegroup.com/sustainabilityreport/2012 SUSTAINABILITY PROGRESS REPORT 2012 // List of Awards We Won // 117 OUR BANNERS’ SUSTAINABILITY WEB PAGES SUSTAINABILITY PROGRESS REPORT 2012
Our sustainability approach aims to set Group goals that drive us forward together but we believe in the strength of local go-to-market strategies and allow for flexibility to meet local priorities. Visit the websites of our banners to read about their local sustainability activities:
United States Romania Food Lion Mega Image www.foodlion.com/Corporate/CorporateResponsibility www.mega-image.ro/corporate/proiecte.php Hannaford www.hannaford.com/content.jsp?pageName=CorpResp &leftNavArea=AboutLeftNav Serbia Sweetbay Maxi www.sweetbaysupermarket.com/content.jsp?pageNam www.maxi.rs/code/navigate.php?Id=337 e=CorpResp&leftNavArea=AboutLeftNav
Bulgaria Belgium Piccadilly Delhaize www.piccadilly.bg/csr.php Flemish nl.delhaize.be/nl-be/over-delhaize/ duurzaam-ondernemen Indonesia French fr.delhaize.be/a-propos-de-delhaize/ Super Indo developpement-durable www.superindo.co.id/galeri
Greece Alfa Beta English www.ab.gr/en/index.php/responsibility Greek www.ab.gr/gr/index.php/responsibility
www.delhaizegroup.com/sustainabilityreport/2012 SUSTAINABILITY PROGRESS REPORT 2012 // OUR BANNERS’ SUSTAINABILITY WEB PAGES // 118 OUR BANNERS’ COMMUNITY PROGRAMS SUSTAINABILITY PROGRESS REPORT 2012
Community programs are managed locally. The links below provide an overview of the programs in place at each of our banners.
United States Romania Food Lion Mega Image www.foodlion.com/CommunityOutreach www.mega-image.ro/corporate/proiecte.php?c=1 Hannaford www.hannaford.com/content.jsp?pageName=Communi ty&leftNavArea=AboutLeftNav Serbia Sweetbay Maxi Serbia www.sweetbaysupermarket.com/content.jsp?pageNam English e=Community&leftNavArea=AboutLeftNav www.maxi.rs/code/navigate.php?Id=66 Harveys Serbian www.harveys-supermarkets.com/OurCommunity www.maxi.rs/code/navigate.php?Id=49
Belgium Indonesia Delhaize Super Indo French www.superindo.co.id/tentang_kami/ //fr.delhaize.be/fr-BE/A-propos-de-Delhaize/ Sponsoring-et-mecenat/Mecenat Flemish //nl.delhaize.be/nl-BE/Over-Delhaize/ Sponsoring-en-Mecenaat/Mecenaat
Greece Alfa Beta English www.ab.gr/en/index.php/responsibility/people Greek www.ab.gr/index.php/responsibility/people
www.delhaizegroup.com/sustainabilityreport/2012 SUSTAINABILITY PROGRESS REPORT 2012 // OUR BANNERS’ COMMUNITY PROGRAMS // 119 OUR BANNERS’ FOOD SAFETY TIPS SUSTAINABILITY PROGRESS REPORT 2012
Informing our consumers on safe food handling is an important element of our food safety approach. The links below give an overview of the food safety tips each of our banners provide to our consumers online. Food safety tips are also communicated in stores and leaflets.
United States Greece Food Lion Alfa Beta www.foodlion.com/NutritionWellBeing/FoodSafety English Hannaford www.ab.gr/en/index.php/responsibility/products www.hannaford.com/content.jsp?pageName=FoodSafet Greek y&leftNavArea=HealthLeftNav www.ab.gr/index.php/responsibility/products Sweetbay www.sweetbaysupermarket.com/content.jsp?pageNam e=FoodSafety&leftNavArea=HealthyLivingLeftNav Serbia Bottom Dollar Food Maxi www.bottomdollarfood.com/About/FoodSafety English Harveys www.maxi.rs/code/navigate.php?Id=97 www.harveys-supermarkets.com/HealthWellness/ Serbian FoodSafety www.maxi.rs/code/navigate.php?Id=26
Belgium Romania Delhaize Mega Image Flemish www.mega-image.ro/corporate/siguranta.php nl.delhaize.be/gezondheid-en-welzijn/voedselveiligheid French fr.delhaize.be/sante-et-bien-etre/securite-alimentaire Indonesia Super Indo www.superindo.co.id/resep_dan_tips/tips_dan_trik/ lima_kunci_keamanan_pangan
www.delhaizegroup.com/sustainabilityreport/2012 SUSTAINABILITY PROGRESS REPORT 2012 // OUR BANNERS’ FOOD SAFETY TIPS // 120 our partners Sustainability Progress Report 2012
While we continue to strengthen our sustainability governance internally, we also develop partnerships with expert organizations and industry associations. We strongly believe that continuing our own education, sharing best practices, and encouraging synergies are critical to addressing sustainability challenges within our company and across our industry. Below, you’ll find a list of the main organizations we worked with in 2012, as a member or a partner at global and/or regional levels.
Memberships
Business Social Compliance Initiative (BSCI) The Consumer Goods Forum (CGF) www.bsci-intl.org www.theconsumergoodsforum.com
• Sustainability Steering Group sustainability.mycgforum.com/
EuroCommerce • Global Food Safety Initiative (GFSI) www.eurocommerce.be www.mygfsi.com
• Global Social Compliance Programme (GSCP) European Retail Roundtable (ERRT) www.gscpnet.com www.errt.org
• Health & Wellness Core Team healthandwellness.mycgforum.com
www.delhaizegroup.com/sustainabilityreport/2012 SUSTAINABILITY PROGRESS REPORT 2012 // OUR PARTNERS // 121 Memberships (continued)
Food Marketing Institute (FMI) Round Table on Responsible Soy Association www.fmi.org www.responsiblesoy.org
• Sustainability Executive Committee
• Sustainable Seafood Working Group
GlobalGAP License number RTRS-TMLA-M-RET-00018 www.globalgap.org
The Forest Trust www.tft-forests.org
U.S. Green Building Council (USGBC) www.usgbc.org
The Sustainability Consortium www.sustainabilityconsortium.org
Retailers’ Palm Oil Group (RPOG) Independent group of international retailers committed to using certified sustainable palm oil
Roundtable on Sustainable Palm Oil www.rspo.org
www.delhaizegroup.com/sustainabilityreport/2012 SUSTAINABILITY PROGRESS REPORT 2012 // OUR PARTNERS // 122 Partnerships
Forum for the Future U.S. Environmental Protection Agency (EPA) www.forumforthefuture.org www.epa.gov
• EnergyStar www.energystar.gov
• GreenChill Advanced Partnership Gulf of Maine Research Institute (GMRI) www.epa.gov/greenchill www.gmri.org
• SmartWay Transport Partnership www.epa.gov/smartwaylogistics King Baudouin Foundation www.kbs-frb.be
• WasteWise www.epa.gov/epawaste/conserve/smm/wastewise/ index.htm
World Wide Fund for Nature (WWF) www.worldwildlife.org
www.delhaizegroup.com/sustainabilityreport/2012 SUSTAINABILITY PROGRESS REPORT 2012 // OUR PARTNERS // 123 GLOSSARY SUSTAINABILITY PROGRESS REPORT 2012
Affiliated Store Company-Operated Store A store operated by an independent retailer to whom Delhaize A store operated directly by Delhaize Group. Group sells its products at wholesale prices and who benefits from the trade name and knowhow of Delhaize Group. Another The Consumer Goods Forum (CGF) terminology used for an affiliated store is a franchised store. www.ciesnet.com/
ASC (Aquaculture Stewardship Council) Compost www.asc-aqua.org/ A mixture of decayed or decaying organic matter used to ferti- lize soil. Compost is usually made by gathering plant material, Biodegradable Bags such as leaves, grass clippings, and vegetable peels, into a Bags made from plastics derived from renewable resources pile or bin and letting it decompose as a result of the action that decompose when exposed to biological agents (such of aerobic bacteria, fungi, and other organisms. as bacteria). Dow Jones Sustainability Index (DJSI) Business Social Compliance Initiative (BSCI) The Dow Jones Sustainability World Index was launched in www.bsci-intl.org/ 1999 as the first global sustainability benchmark. More information on: Carbon Disclosure Leadership Index (CDLI) www.sustainability-index.com/ Companies that have the highest disclosure to the CDP ques- tionnaire enter the CDLI. To enter the CDLI, a company must Earth Hour make their responses public and submit them via CDP’s Online Earth Hour is the single, largest, symbolic mass participation Response System before the deadline and they must achieve event in the world. Born out of a hope that we could mobilize a score within the top 10% of the total Benelux 150 population. people to take action on climate change, Earth Hour now inspires More information on: a global community of millions of people in 7 001 cities and www.cdproject.net/en-US/Results/Pages/ towns across 152 countries and territories, to switch lights off CDP-2012-disclosure-scores.aspx for an hour as a massive show of concern for the environment. More information on: CDP (Carbon Disclosure Project) www.earthhour.org/ www.cdproject.net/en-US/Pages/HomePage.aspx Ecological products Carbon Footprint Products characterized by environmentally-friendly properties, A measurement of the amount of greenhouse gases produced, ensuring minimized environmental impact during production and use. Examples of properties include the use of non-toxic measured in equivalent units of carbon dioxide (CO2), for a given activity or process. This is also known as Greenhouse substances and the use of environmentally-friendly materials Gas (GHG) Footprint. – such as recycled or FSC-certified materials.
CFC Energy Star® Chlorofluorocarbons are chemical products formerly used Energy Star is a joint program of the U.S. Environmental Protec- widely in industry, particularly as refrigerants and cleaning tion Agency (EPA) and the U.S. Department of Energy (DOE) that solvents. Their manufacture is being phased out due to their identifies, promotes, and provides a label for energy efficient contributions to ozone depletion. products, buildings, and practices. More information on: www.energystar.gov/index.cfm?c=about.ab_index
www.delhaizegroup.com/sustainabilityreport/2012 SUSTAINABILITY PROGRESS REPORT 2012 // GLOSSARY // 124 Environmental Resources Management (ERM) Greenhouse Gases (GHG) www.erm.com/About-Us/ Gases that when accumulated in the atmosphere in sufficient quantity can have an effect on the earth’s temperature regulat- Ernst & Young ing processes. Industrially produced greenhouse gases add to the natural greenhouse gases in the atmosphere. GHGs www.ey.com/BE/en/Home are measured in terms of carbon dioxide equivalent (CO2e). Fairtrade Greenhouse Gas Protocol An alternative approach to conventional trade based on a A widely used international accounting tool by government and partnership between producers and consumers. Fairtrade business organizations to understand, quantify, and manage offers disadvantaged producers a better deal and improved greenhouse gas emissions. The Protocol uses the term ‘scope’ terms of trade. Products carrying the Fairtrade mark have met to distinguish between different greenhouse gas emissions Fairtrade standards. sources. There are three categories: Scope 1, Scope 2, and More information on: Scope 3. Each scope is defined in the ‘Our 2012 Data Summary www.fairtrade.net and Methodology’ of this report. The GHG Protocol was initi- ated by the World Resources Institute and the World Business FAO Council for Sustainable Development. Food and Agriculture Organization of the United Nations www.fao.org/index_en.htm Global Reporting Initiative (GRI) www.globalreporting.org Feeding America feedingamerica.org/how-we-fight-hunger.aspx Gulf of Maine Research Institute (GMRI) www.gmri.org/ GDA Guideline Daily Amount guidelines provide the approximate GWP amount of calories, fat, saturated fat, carbohydrate, total sugars, The Global Warming Potential measures how much a given protein, fiber, salt and sodium required for a balanced diet. mass of greenhouse gas is estimated to contribute to global GDAs are designed to help consumers make sense of the warming. It is a relative scale which compares the gas in nutrition information provided on food labels. question to that of the same mass of carbon dioxide (whose More information on: GWP is by convention equal to 1). gda.fooddrinkeurope.eu/asp2/gdas_explained.asp HCFC Global Aquaculture Alliance (GAA) Hydrochlorofluorocarbons are a type of CFCs, chlorinated An international, non-profit trade association dedicated to ad- gases often used as refrigerants which have a damaging vancing environmentally and socially responsible aquaculture. effect on the ozone layer. More information on: www.gaalliance.org/ HFC Hydrofluorocarbons are non-ozone depleting alternatives to CFCs and HCFCs. Global Food Safety Initiative (GFSI) www.mygfsi.com/about-gfsi.html Human Rights Campaign Corporate Equality Index Global Social Compliance Program (GSCP) Human Rights Campaign Foundation’s 2013 Corporate Equality The Global Social Compliance Programme is a business-driven Index is the national benchmarking tool on corporate policies programme for the continuous improvement of working and and practices related to LGBT employees. environmental conditions in global supply chains. More information on: More information on: www.hrc.org/corporate-equality-index www.gscpnet.com/ International Graduate Trainee Program www.dreamjobdelhaize.com
www.delhaizegroup.com/sustainabilityreport/2012 SUSTAINABILITY PROGRESS REPORT 2012 // GLOSSARY // 125 ISO 22000:2005 National Salt Reduction Initiative (NSRI) A standard that specifies requirements for a food safety man- A partnership coordinated by the New York City Health Depart- agement system where an organization in the food chain needs ment to promote voluntary sodium reduction program. to demonstrate its ability to control food safety hazards in order More information on: to ensure that food is safe at the time of human consumption. www.nyc.gov/html/doh/html/living/cardio-sodium.shtml More information on: www.iso.org/iso/home/store/catalogue_tc/ National Technical University catalogue_detail.htm?csnumber=35466 www.ntua.gr/index_en.html
LED (Light-Emitting Diodes) Lighting NGO (Non-Governmental Organization) Electronic components that emit visible light powered by elec- A legally constituted organization that operates independently tricity. LED lighting presents many advantages over traditional from any government. The term is usually used by governments light bulbs including lower energy consumption, longer lifetime, to refer to entities that have no government status. improved robustness, smaller size and faster switching.
The North Sea Foundation (Stichting De Noordzee) LEED® (Leadership in Energy and Environmental Design) rating system www.ecomare.nl/index.php?id=4512&L=2 A third-party certification program for the design, construction and operation of high performance green buildings, developed Organic Products and managed by the U.S. Green Building Council (USGBC). It Products that follow either the standards for USDA Organic encourages and accelerates the adoption of sustainable green in the U.S. or standards for European Council for Agricultural building and development practices through the creation and Ministers Council Regulation in the EU. implementation of universally understood and accepted tools and performance criteria. Ozone Depleting Substances (ODS) More information on: Substances that weaken the ozone layer (making it thinner and www.usgbc.org causing a “hole” at the polar regions) that protects the planet from harmful ultra violet sunlight. CFCs and HCFCs (typical Local Products refrigerants) are ozone depleting substances. Products considered as local by our banners – boundaries are defined differently by countries. Oxo Biodegradable Plastic Made by blending a pro-degradent additive into the plastic Materiality during the extrusion process. The additive causes the mo- lecular structure of plastic to break down when exposed to The process of identifying a company’s most significant eco- heat or sunlight. nomic, environmental, and social impacts by ranking them in accordance with criteria both external and internal to the company. Information and indicators in a sustainability report PAS221 should cover a company’s most material impacts. Sponsored by Delhaize Group and is intended for use by food retailers of all sizes to assist with the development and im- MSC (Marine Stewardship Council) plementation of a prerequisite programme as required by ISO 22000. www.msc.org/?set_language=en More information on: National Brand Product www.bsigroup.com/en-GB/standards/ A product that is distributed widely throughout a nation. Some national brands are also sold on an international scale, in ad- PET dition to being widely available in their home nations. This is Polyethylene terephthalate. It is a plastic resin and the most in contrast with private brands and regional or local brands, common type of polyester. which are only available from certain sellers and only sold in certain regions. National brands are usually owned and promoted by large manufacturers.
www.delhaizegroup.com/sustainabilityreport/2012 SUSTAINABILITY PROGRESS REPORT 2012 // GLOSSARY // 126 Posyandu Roundtable on Sustainable Palm Oil (RSPO) In Indonesia, a community-based vehicle to improve the health www.rspo.org/?q=page/9 status of women and children that involves increased coverage in health care and intersectoral collaboration. The Sustainability Consortium More information on: An organization of diverse global participants that work col- posyandu.org/ laboratively to build a scientific foundation that drives innovation to improve consumer product sustainability. Private Brand Product More information on: Refers to a product that is labeled with a retailers’ name or www.sustainabilityconsortium.org/ with a brand name created exclusively by a retailer, but is manufactured or provided by supplier companies. UNICEF The leading advocate for children’s rights, active in more REAL Skills (Refrigeration Emissions than 190 countries, territories and areas through country pro- and Leakage Skills) grammes and National Committees. A two-year project that has built on the achievements of a More information on: UK programme developed in 2009 to achieve reductions in www.unicef.org/ refrigerant leakage through improved awareness, education and training. WWF More information on: World Wide Fund for Nature. www.realskillseurope.eu/ More information on: www.worldwildlife.org Renewable Energy The production of energy based on the use of resources that are regularly renewed through natural processes; these re- YMCA (Young Men’s Christian Association) sources include solar, wind, biomass, hydrogen, geothermal, An inclusive organization of men, women and children joined tidal, and hydropower. together by a shared commitment to nurturing the potential of kids, promoting healthy living and fostering a sense of social responsibility. Retail Management Trainee (RMT) programs Programs are led by Delhaize Group’s operating companies More information on: to identify, prepare and develop high potential college gradu- www.ymca.net/ ates and young internal associates from multiple disciplines, diversity, and backgrounds. The goal is to ensure a pipeline of talent for retail managers and future leaders.
Retailers’ Environmental Action Programme (REAP) A voluntary initiative aimed at helping reduce the environmen- tal footprint of the retail sector and its supply chain, working towards the promotion of more sustainable products and providing better information to consumers. More information on: ec.europa.eu/environment/industry/retail/reap/
Roundtable for Responsible Soy (RTRS) A multi-stakeholder initiative which aims to facilitate a global dialogue on soy production that is economically viable, socially equitable and environmentally sound. More information on: www.responsiblesoy.org/index.php?lang=en
www.delhaizegroup.com/sustainabilityreport/2012 SUSTAINABILITY PROGRESS REPORT 2012 // GLOSSARY // 127 This is a summary report, providing a concise view of our Sustainability performance over the last year, with clear links to more detailed information for those that want it.
Company information Company number About the people included in the Registered office 0402 206 045 pictures in this report Delhaize Group SA Most of the people portrayed in the pictures Rue Osseghemstraat 53 Delhaize Brothers and Co. in this Sustainability Progress Report are our 1080 Brussels “The Lion” (Delhaize Group) SA associates or associates’ family members. Belgium is a Belgian company formed Tel +32 2 412 21 11 in 1867 and converted into a Credits Fax +32 2 412 21 94 limited company on February Concept, design and production 22, 1962. CHRIS - Communication Agency Company support office www.chriscom.be Publisher Delhaize Group and Globule Bleu Catherine Alexandre Square Marie Curie 40 www.globulebleu.com Vice President Internal and 1070 Brussels Cover and back cover picture Sustainability Communication Belgium Jean-Michel Byl Square Marie Curie 40 Tel +32 2 412 22 11 1070 Brussels Fax +32 2 412 22 22 Contact Belgium www.delhaizegroup.com If you have any feedback or questions on this report, please contact us at: [email protected]
Caution Concerning Forward-Looking Statements All statements that are included or incorporated by reference in this Sustainability Progress Report or that are otherwise attributable to Delhaize Group or persons acting on behalf of Delhaize Group, other than statements of historical fact, which address activities, events or developments that Delhaize Group expects or anticipates will or may occur in the future, including, without limitation, statements regarding expected financial performance; expansion and growth of Delhaize Group’s business; anticipated store openings and renovations; future capital expenditures; projected revenue growth or synergies resulting from acquisitions and other transactions; efforts to control or reduce costs, improve buying practices and control shrink; contingent liabilities; future consumer spending; forecasted currency exchange rates or inflation; expected competition; and business strategy, are “forward-looking statements” within the meaning of the U.S. federal securities laws that are subject to risks and uncertainties. These forward-looking statements generally can be identified as state- ments that include phrases such as “believe,” “project,” “target,” “predict,” “estimate,” “forecast,” “strategy,” “may,” “goal,” “expect,” “anticipate,” “intend,” “plan,” “foresee,” “likely,” “will,” “should” or other similar words or phrases. Although Delhaize Group believes such statements are based on reasonable assumptions, actual outcomes and results may differ materially from those projected. Accordingly, all forward-looking statements should be evaluated with the understanding of their inherent uncertainty. Important factors that could cause actual results to differ materially from expectations of Delhaize Group include, but are not limited to, those factors described in the annual report 2012 in the chapter entitled ”Risk Factors” on page 58 and under Item 3 under Part 1 of Delhaize Group’s Annual Report on Form 20-F for the fiscal year ended December 31, 2012, filed with the U.S. Securities and Exchange Commission on April 26, 2013. Delhaize Group undertakes no obligation to update forward-looking statements, whether as a result of new information, future develop- ments or otherwise, and disclaims any obligation to do so.
For more info, see also www.delhaizegroup.com