Corporate Social Responsibility Report - Ahold

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Corporate Social Responsibility Report - Ahold

Corporate SocialResponsibility Report2007Respondingto changesin societywith inspiringsolutions


Cover photoThis photograph contains everything we believe is relevantin CSR. Amel Sabeh works for one of our suppliers in Africa.She is holding salads made from freshly cut fruit, packed onlocation in Nsawam, Ghana and sent to the Netherlands everynight. This fruit is part of the healthy diets we work to promote.The photo shows how, through sustainable trade, we cansuccessfully keep the processing of commodities – and theextra income it provides – at the source, to improve thestandard of living in these communities. It also illustrates thedilemmas we face as we work to balance the importance ofadvancing economies in developing countries by transportingproducts from far away while working to address issuesrelated to climate change. Finally, this photo shows ourcommitment to community engagement, because AmelSabeh is part of the Blue Skies community, which issupported by the Albert Heijn Foundation in Africa.In remembranceCasper van Zijl, who had responsibility for CSR at Ahold until lastyear, passed away on July 16, 2007 after an illness. Casper will beremembered by all at Ahold for his passionate dedication to doing theright thing and for the gentlemanly way with which he encouragedothers to do the same.


Our business impacts the lives of millionsof people every day. We believe thatmaking this impact a positive one is notjust the right thing to do – it also makesgood business sense.2007 highlights 2Chief Executive’s introduction 3Our approach to CSR 4Our approach to CSR | Gaining insight by listening to others |Sharing best practices | Our objectives | CSR Coordinating Committee |Managing our activities | Target settingHealthy living 8Developing insight | Sharing best practices | Objectives |Making it easy to choose healthy products | Providing customerinformation and education | Employee health and wellness programsSustainable trade 16Developing insight | Sharing best practices | Objectives |Product safety | Responsible sourcing | Buying close to homeClimate action 28Developing insight | Sharing best practices | Objectives |Developing a common understanding of our impact |Reducing greenhouse gas emissions | Pursuing otherenvironmentally responsible strategiesCommunity engagement 40Developing insight | Sharing best practices | Objectives |Supporting the communities we serveOur people 48Developing insight | Sharing best practices | Objectives |Highly qualified and customer-oriented employees |A great place to work | Practical and innovative people managementGRI cross-reference table 56Glossary 58About our CSR report 59Visit us online 60Ahold at a glance 61Ahold CSR Report 2007 1


Dear stakeholderAs one of the largest food retailers inthe world, we recognize that we haveto act in a responsible manner forthe benefit of our millions of customers,our employees, our business and thegood of our planet.As you can read in this year’s report, we are making progresswith our company-wide corporate social responsibility (CSR)strategy and initiatives. In 2007, we established four key areasof focus: healthy living, sustainable trade, climate action andcommunity engagement. These are areas where we believe wecan make the greatest contribution to the lives of our customers,employees and suppliers and have a positive impact on theenvironment and communities we serve.Our operating companies in Europe and the United States haveprograms underway in each area, and have integrated CSR intotheir daily business practices. To measure our performance, weare developing business targets as well as indicators in line withthe internationally-recognized Global Reporting Initiative (GRI)framework.Starting this year, we will publish our CSR report annuallyinstead of every second year, and at the same time as ourAnnual Report. As CSR issues become more important in ourbusiness and our industry, we are devoting more resources toaddressing the challenges we face. As a result, I have assignedresponsibility for CSR at Ahold to Peter Wakkie, our ChiefCorporate Governance Counsel and member of the CorporateExecutive Board. We share learnings across Ahold, formally andinformally, and participate enthusiastically with industryorganizations and others to seek solutions to complex problemssuch as climate change.We still have a great deal to do – and a lot to learn. We areworking hard to meet the needs of society. We are committedto operating in a way that will improve the quality of life for ourstakeholders, now and in the future.I hope you find this report useful and I look forward to updatingyou on the progress we make this year in next year’s report.John RishtonCEOAhold CSR Report 2007 3


We are committed to offering inspiringsolutions that meet the evolvingchallenges faced by society. We operateethically and work to improve the qualityof life for those who are touched by ourbusiness, now and for future generations.Our approach to CorporateSocial ResponsibilityOur companies in the United States and Europe have along heritage in the food retail business, and deep connectionswith the communities and societies in which we operate.We believe the key to being successful is to continuously tracktrends in society and translate them into relevant informationand inspiring solutions for our customers. Our businesses havebeen doing this for more than a century and we apply that samecapability to CSR. We see this as one of our major strengths,now and for the future.As a large food retailer, our business impacts the lives of millionsof customers every day who come to us to fulfill one of their mostbasic needs. We have a significant opportunity, and responsibility,to make our impact a positive one for our customers as well as ourother key stakeholders – our employees, suppliers, the financialcommunity, and the communities we serve.As with every area of our business, our CSR approach is basedon our insight into the needs and concerns of our stakeholderswith whom we work to develop mutually beneficial, long-termrelationships. We focus on initiatives that make a difference intheir lives.Our approach to CSRAhold’s mission as a company is to make it easy for customersto choose the best. We believe that we can make our offeringrelevant by giving people the opportunity to choose frominspiring solutions based on solid information. We are continuallyimplementing solutions in CSR to meet the changing needs ofconsumers and society.Our CSR objectives need to be relevant, achievable and fullyintegrated into the business in order to be successful. We workaccording to the “Triple P” concept, integrating the interests ofpeople, planet and profit.4Gaining insight by listening to othersThe challenges of CSR are highly complex, and we recognizethat we have much to learn from others, both inside and outsideof our business. Our CSR objectives grow from externalresearch, studies on global trends, and dialogue with our keystakeholders. This dialogue takes the form of formalpartnerships with organizations and governments as well asinformal communications that happen at conferences or otherevents, or in the course of everyday business.We see the Global Reporting Initiative as an important sourceof information on stakeholder priorities regarding CSR. We arecommitted to publishing an annual CSR report based on GRIguidelines and, beginning with the 2007 report, will publish itsimultaneously with our annual report.“ CSR is closely linked to goodcorporate governance and benefits allour stakeholders. We are committedto making CSR a lasting componentof running our business.”Peter Wakkie, Member of the Executive Board, ExecutiveVice President and Chief Corporate Governance CounselAhold CSR Report 2007


InsightSharingbest practicesSettingobjectivesHealthy livingThe well-being of our customers is critical to us. Our goal is tooffer them an inspiring selection of quality products and servicesto make it easier to choose a healthier lifestyle.Sustainable tradeWe are building long-term relationships with suppliers who shareour conviction that economic success should be balanced withsocial and environmental responsibility.Climate actionWherever we operate, we are working to improve our ecologicalfootprint and making our operations more efficient.CommunityengagementWe build relationships with customers, employees, suppliersand other stakeholders by actively supporting the needs ofcommunities in our market areas and beyond.Our CSR objectives grow from externalresearch, studies on global trends anddialogue with our key stakeholders.We find out what is important to consumers through dailydealings with customers in all of our local markets, consumerinsight and other external research. This enables us to anticipatetrends and develop simple, inspiring solutions to our customers’needs. Being a responsible company fulfills a basic expectationof customers.There is an increasing awareness about CSR in the financialcommunity, and among our investors, as a result of growingconsensus that there is a relationship between CSR andprofitability. It is becoming apparent that CSR control systemsto help limit the environmental, social and ethical risks toa business.We work to develop long-term relationships with our suppliers.Sharing our CSR ambitions with them leads to bettercooperation in terms of volume, quality and pricing.Ahold actively participates in industry organizations andpartnerships with non-governmental organizations (NGOs) andother relevant bodies such as the World Health Organization(WHO) and the World Wide Fund for Nature (WWF). Our localcompanies strive to be good citizens and contributing membersof the communities they serve.Employees put increasing value on working for a responsiblecompany. A commitment to CSR makes it easier for Ahold andits operating companies to attract, develop and retain talent.Sharing best practicesOur ability to tap and share expertise among our operatingcompanies helps us to efficiently provide solutions that addresstrends in our markets. We apply this same model to ourapproach to CSR.Our operating companies have varying levels of expertise indifferent areas related to CSR; as a result, companies with moreexperience can act as initiative leaders and develop solutions toour shared challenges. Initiatives that prove successful can thenbe applied to our other operating companies, with adjustmentsfor the local market.Our objectivesAt the start of 2007, Ahold reorganized its CSR activities aroundfour main themes we believe address the trends that are now,and will be for years to come, most relevant to our business,important to our key stakeholders and where we see the mostopportunity to make a positive impact. All of our current activitiesin CSR fall under one or more of these main themes:Healthy livingWe want to make a positive contribution to the health of ourcustomers, employees and other stakeholders by offeringhealthy choices in our assortment as well as information,activities, and educational resources promoting the benefitsof a healthy diet and lifestyle.Sustainable tradeWe cooperate with suppliers to systematically improve theintrinsic, social and environmental quality of productsthroughout the supply chain, particularly those sold underAhold brand names. In the long run, we favor those supplierswhose values and principles are aligned with our own.Ahold CSR Report 2007 5


CSR Coordinating CommitteeSaskia AalbersDirector of Public Affairs,Albert HeijnOnno FranseDirectorHealthy Living& Climate Action,AholdLibor KytyrDirectorPR & Communications,Albert/HypernovaTony StalloneVice Presidentof Merchandisingand Food Safety,PeapodHugo ByrnesDirector Product Safety& Consumer Affairs,AholdSimone HertzbergerVice PresidentQuality Assurance& Product Integrity,Albert HeijnKerstin LindvallManagerEnvironment andSocial Responsibility,ICAKerry UnderhillSenior Vice PresidentCommunications,AholdPetr ChadrabaManagerCommunications,Albert/HypernovaJames JoyVice PresidentLegal and Compliance,AholdDeanne PettinelliProject Consultant,Strategy & PlanningDepartment,Stop & Shop/Giant-LandoverRoland WaardenburgVice PresidentCorporate SocialResponsibility,AholdRobert FrappierDirector of QualityAssurance CorporateBrands,Ahold USALisbeth KohlsSenior Vice PresidentCorporate Responsibility,ICADavid SmallVice PresidentFood Safety & RiskManagement,Stop & Shop/Giant-LandoverLaura WilliamsVice President& General Counsel,Giant-CarlisleClimate actionWe rely on efficient logistics to provide the broad andcontinuously available assortment of fresh, safe, high-qualityproducts that consumers demand. We are focused onimproving energy efficiency and reducing greenhouse gasemissions, by making our operations as efficient as possible tolimit their negative impact on the climate and the environment.Community engagementCommunity involvement and charitable giving are part of ourcustomer focus. As active members of the communities weserve, we have the means and the responsibility to make adifference in the lives of our stakeholders.CSR Coordinating CommitteeIn 2007, we created the CSR Coordinating Committee to helpguide our CSR strategy. Made up of specialists from each of ouroperating companies and the Corporate Center, its purpose is toaid Ahold’s Corporate Executive Board in driving and prioritizingCSR activities across the group.The CSR Coordinating Committee, which meets on a regularbasis, also works to maximize the impact of our CSR efforts andmake the most of Ahold’s scope and scale by ensuring thatexpertise and information about our CSR activities are widelyshared throughout the operating companies.6Ahold CSR Report 2007


Compliance with GRI standardsAhold has decided to use the standardsdeveloped by the Global ReportingInitiative (GRI) as the framework toguide our approach to and reportingon CSR.The GRI is a global, multi-stakeholdernetwork of business people,representatives from labor and civilsociety, investors, accountants andothers, working together to developan internationally accepted standardfor CSR reporting, called theSustainability Reporting Framework.This provides a universally applicable,comparable framework in which tounderstand disclosed informationabout sustainability performance.The vision behind the framework isthat reporting on CSR is as routine andcomparable as financial reporting.Ahold is adapting its reportingaccording to the GRI standards.In the GRI cross-reference table inthis report, we provide a summaryof our compliance. We are alsodiscussing the implementationof more GRI indicators for the reportnext year. The GRI frameworkoutlines several levels of reportingcompliance, depending on acompany’s capabilities andambitions. We are targeting theachievement of the entry levelof reporting standards with thisyear’s report.“ Respecting people, the environmentand the communities we serve isbecoming more important toinvestors and ultimately supportscorporate profitability.”Kimberly Ross, Executive Vice President andChief Financial Officer (Acting member of andnominee to the Corporate Executive Board)Managing our activitiesMost of Ahold’s CSR activities are managed locally, withoperating companies responsible for developing their ownprograms and activities to address the specific needs oflocal stakeholders.Our operating companies have also established, or are in theprocess of establishing, committees dedicated to making furtherprogress on each of the main themes in Ahold’s CSR strategy.Target settingNow that we have defined our focus areas for CSR, the CSRCoordinating Committee is putting processes in place tocollect information that we can use to track and evaluateour performance.The coordinating committee is also working with our operatingcompanies and their senior management to help us establishCSR performance targets and indicators.In line with our commitment to integrate CSR into our business,the targets will become part of our regular business reviews withoperating company management teams.Ahold CSR Report 2007 7


Healthy livingInspiring healthy livesThe well-being of our customers is criticalto us. Our goal is to offer them an inspiringselection of quality products and services tomake it easier to choose a healthier lifestyle.8Ahold CSR Report 2007


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Healthy livingOur approachWe want to make a positive contributionto the health of our customers, employeesand other stakeholders by offeringhealthy choices in our assortment as wellas information, activities, and educationalresources promoting the benefits ofa healthy diet and lifestyle.Healthy living is one of the most vital elements in our vision of howto operate as a socially responsible company. Our companies arecommitted to providing healthier product alternatives, expertadvice and innovative shopping experiences that inspire ourcustomers to make healthy choices. As a food provider, we seesignificant opportunities to further develop our approach tohealthy living in a way that benefits customers while differentiatingour offering and strengthening our brands.Developing insightOur companies have always provided quality, variety (including awide range of healthy choices) and information to our customers.In the 1980s, ICA had already put in place a healthy productlabeling system that later formed one of the fundamentals of anationwide standard adopted by the Swedish government.At the start of the new millennium, the World Health Organization(WHO) concluded that the impact of an unhealthy lifestyle wasone of the main threats facing the world, and brought awarenessaround the globe to a problem our companies were alreadystarting to address.We are bringing together experts from both inside and outside thecompany to share insight on how we can contribute to promotinghealthy lifestyles. We now work closely with universities, industrybodies, expert scientists and nutritionists to find ways to providehealthy choices based on scientific research, technologicaladvances and good social practices.Sharing best practicesIn 2004, Ahold’s healthy living team, made up of experts fromacross the company, was officially formed. Today, the teamhelps Ahold make the most of its internal expertise and createsbroad programs that our operating companies can adapt fortheir local consumers.HighlightsLearning to live healthierThe class lunch program demonstrates to childrenthat a healthy lunch can be tasty and fun ⁄page 11Crazy about cookingThe “Healthy Madness” cookbook is aimedat getting children and parents to cook together⁄page 13Expert adviceAt Giant-Carlisle’s Camp Hill store a nutritionistadvises customers, supporting a focus onhealthy living ⁄page 15Buying the good lifeICA Gott liv! (ICA Good life!) brand of products,containing less sugar, fat and salt and morefiber, has become one of the largest privatebrand ranges in Sweden ⁄page 13More mattersStop & Shop/Giant-Landover, along with Giant-Carlisle, won the Produce for Better HealthFoundation award for efforts to promote a dietrich in fruit and vegetables ⁄page 1210Ahold CSR Report 2007


Learning to live healthierAhold’s operating companies arededicated to educating childrenabout the value of a healthy dietand lifestyle. ICA and Albert Heijnbring that message right into theclassroom. In 1999, ICA launcheda program named “Buddy with yourBody – Five a Day” to underline theimportance of eating at least fivefruits and vegetables a day. AlbertHeijn’s “Class Lunch” demonstrateshealthy lunches can be both tastyand fun. It targets children in thelast year of primary school, becausewhen they move to high school theybegin to choose their own lunches.75,000 children took part in theprogram in 2007.Photographer: Frank van BeekICA, with its years of experience in healthy product labeling, andGiant-Landover, with a long history of consumer education,served as Ahold’s best practice leaders in the area of healthyliving. Albert Heijn, using knowledge from these operatingcompanies along with the power of its brand, was able toaccelerate the implementation process in the Netherlands.ObjectivesIn 2007, the CSR Coordinating Committee formalized anAhold-wide strategy for healthy living. Our overall objectiveis to achieve a high awareness of healthy living among ourstakeholders, and in this way promote healthier choices and,eventually, lifestyle shifts towards healthier habits. We haveagreed to focus on activities that fall under three categories:1. Making it easy to choose healthy products.2. Providing information and education to motivate customerstowards healthy lifestyle choices.3. Offering health and wellness programs for employees.Making it easy to choose healthy productsAs a retailer, we have a unique opportunity to interact withcustomers in our stores. We help them make healthy choicesthrough the range of products we carry, the services andinformation we provide, and the way we present our offering.Our operating companies offer a full range of products in theirassortments to meet the needs of a healthy lifestyle. We focus onfresh foods – particularly fruit and vegetables – and we carryspecial, healthy product lines. We offer healthy alternatives to allcustomers in every pricing tier. We are also reformulating someof our products, such as certain prepared foods, to make themhealthier by, for example, eliminating trans fats or reducingsaturated fat, salt and sugar content.Product labelingProduct labeling is a key tool in helping customers to makehealthy choices. Our operating companies have developed logosto help customers identify products that are appropriate for ahealthy diet.Corporate brand natural and organic products 1at year-end 2007 2006Stop & Shop/Giant-Landover 384 270Giant-Carlisle 270 221Albert Heijn 176 185Albert/Hypernova 2 0 0ICA Sweden 100 100ICA Norway 10 101Corporate brand natural and organic products are defined as private brand or private label productsthat meet specific criteria in relation to natural or organic food and as a result are labeled as natural ororganic products.2Albert/Hypernova’s natural and organic selection includes only A-brand products.Ahold CSR Report 2007 11


Spreading the word thatmore mattersFor 15 years, the Produce forBetter Health Foundation (PBH)has encouraged U.S. consumers toeat more fruit and vegetables. It’s amessage that Stop & Shop/Giant-Landover and Giant-Carlisle aredelighted to support. They’re activelypromoting PBH’s new More Matterscampaign, which has one clear, easyto understand message: “Fruits andVeggies – More Matters”. In 2007,Ahold USA companies were theonly retailers to win a PBH NationalExcellence Award for their efforts.12Ahold CSR Report 2007


Crazy about cookingAhold’s Hypernova stores in the CzechRepublic and Slovakia have publisheda cookbook called “Healthy Madness”,aimed at getting parents and childrento cook together and discuss theimportance of a healthy diet. Filledwith tips for fun and easy meals basedon fruits and vegetables, the bookwas launched at the end of 2006.“Healthy Madness” contains recipeswith illustrations and detaileddescriptions that make it possible forchildren to help in their preparation.The Swedish “green keyhole” was based on a labeling systemdeveloped by ICA more than two decades ago and adopted bythe Swedish National Food Administration in 1989. Thekeyhole symbol denotes products that are high in fiber and/orlow in fat, salt and sugar content. It appears now on more than900 ICA private label products in Sweden and was alsointroduced in ICA’s stores in Norway in 2006.Based on the success of the keyhole symbol, Albert Heijncollaborated with the Netherlands Nutrition Center to developits Healthy Choice Clover symbol. Introduced on Albert Heijnprivate label products in 2005, the symbol helps customersidentify foods low in saturated fat, sugar and salt, and highin fiber. By the end of 2007, the symbol appeared on1,575 products.Our operating companies offer a fullrange of products in their assortmentsto meet the needs of a healthy lifestyle.Special product rangesOur companies are continually working to introduce specialproducts to satisfy the needs or health concerns of ourcustomers. Organic choices and special private label productranges are two ways we are helping to make healthy food asimple, affordable choice for customers.In the United States, our natural and organic Nature’s Promiseprivate label brand was introduced in 2004. This line ofproducts features special health icons that make it easy tospot and understand health and allergen information, suchas lactose-free or low-fat.In the Netherlands, the Albert Heijn Biologisch line hasbeen credited with helping drive a significant rise in theconsumption of organic products in recent years.ICA launched its ICA Gott liv! (ICA Good life!) product range,containing less sugar, less fat, less salt and more fiber, inMarch 2005. This has rapidly become one of the largestprivate brand ranges in Sweden. Like Nature’s Promise, theICA Gott liv! range uses a special labeling system to give clearinformation on the fat, sugar, salt and fiber content of the food.In the Czech Republic, we are working to build an organicoffering, helping suppliers reach the volumes we require forthe 300 Albert and Hypernova stores there.Ahold CSR Report 2007 13


Give me five!Albert and Hypernova are fightingobesity and other diet-related problemsin Central Europe with Healthy Five, aprogram that educates children aboutgood nutrition, including the need forfruit and vegetables fives times a day.Healthy Five surveys confirm thatschoolchildren in Central Europe don’teat enough fruit and vegetables –most just once or twice a day. HealthyFive travels from city to city in theCzech Republic and Slovakia. Morethan 10,000 schoolchildren havetaken part in Healthy Five since thelaunch of the project.“ At Albert and Hypernova we arecommitted to playing an importantrole in the communities we serve.Corporate social responsibility is anintegral part of the way we managethe business.”Johan Boeijenga, President and CEO, Albert /HypernovaProviding customer information and educationOur companies provide a wide range of information resources,services and educational opportunities to help customers andemployees make healthy choices. Customer magazines,websites, in-store computers and nutritional advisors are justsome of the ways we offer customers advice on healthy living.Our U.S. chains Giant-Carlisle, Stop & Shop and Giant-Landover were honored in 2007 by the Produce for BetterHealth Foundation (PBH) for their ongoing, innovativeconsumer health initiatives created to encourage people toeat more fruit and vegetables. They were among the firstsupermarket chains in the country to launch the “Fruits &Veggies – More Matters” program – a national health initiativegeared toward eating more fruits and vegetables. The PBHpraised Ahold USA’s dedication to increasing awareness ofthe health benefits of fruit and vegetables, and helpingconsumers turn that awareness into action.In Europe, Albert Heijn was given high marks by researchagency GfK in its 2007 summer report for the information itprovides to customers on healthy eating. The agency said thiswas particularly important as obesity is starting to become aserious problem in the Netherlands. Albert Heijn received thehighest grade among Dutch supermarkets.Many of our efforts are dedicated to teaching children healthyeating habits that will serve them throughout their lives. InSeptember 2007, Albert Heijn launched an interactive websiteto teach children about various foods and their origins. AlbertHeijn also organizes “Class Lunch”, an in-school educationalprogram that explains the benefits of a healthy diet.14Ahold CSR Report 2007


Expert adviceAt Giant-Carlisle’s state-of-the-artGiant Super Food Store, an in-storenutritionist advises customersand supports the store’s strongfocus on healthy living. Having anutrition expert in the supermarketgives customers another resourcethey can use to address a numberof health and wellness concerns.Giant’s nutritionist offersone-on-one consultations,educational store tours, and otherservices such as health-relatedclasses and on-the-spot nutritionaltalks to educate customers duringshopping trips.In the Czech Republic and Slovakia, Albert and Hypernova offera Healthy Five project, set up in the produce department andaimed at educating children on the importance of eating fruitsand vegetables. At this Healthy Five “school”, children cantake part in a one-hour program that includes games andcompetitions aimed at fostering a positive attitude toward fruitsand vegetables.Many of our efforts are dedicated toteaching children healthy eating habitsthat will serve them throughout their lives.Stop & Shop/Giant-Landover sponsors “Kids Corner”, whichuses popular television characters to deliver the healthy livingmessages to children.Giant-Carlisle cooperates with Produce for Kids, a U.S. nationalprogram that promotes the importance of adding more fruitand vegetables to children’s daily diets. In November 2007,Giant-Carlisle held a children’s health fair at which health andsafety experts talked to children and families about healthyeating and the importance of exercise. The event, featuringPBS KIDS characters, included several informative andinteractive activities.In 2007, Giant-Carlisle adopted the Stop & Shop/Giant-Landover school tour program. Giant-Carlisle conducted “KidHealthy Ideas” store tours in 10 stores, hosting 132 tours thattouched the lives of 3,300 youngsters. These educational storetours promote healthy eating habits to children aged five to tenyears old. The initial launch was so successful that it has beenexpanded to an additional 50 stores in 2008.Employee health and wellness programsWe provide healthy working environments for our employeesand are committed to ensuring our suppliers are doing thesame. We work to promote health in the communities we serve.We have introduced health and wellness programs foremployees at our Corporate Center and our operatingcompanies to help them address problems ranging fromobesity and being overweight to tobacco and alcohol addiction.We are continually improving how we motivate employees tomake choices that positively affect their health, for example,sponsoring sporting events, athletic facilities and groupssuch as Weight Watchers (for weight management). Often,we link these efforts to special causes that our employees areinterested in, sponsoring walks, marathons and other physicalactivities that raise money to support deserving organizationsin the communities we serve.Ahold CSR Report 2007 15


Sustainable tradeShared ambitionsWe are building long-term relationshipswith suppliers who share our convictionthat economic success should be balancedwith social and environmental responsibility.16Ahold CSR Report 2007


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Sustainable tradeOur approachWe cooperate with suppliers tosystematically improve the social andenvironmental quality of productsthroughout the supply chain, particularlythose sold under Ahold brand names.In the long run, we favor those supplierswhose values and principles are alignedwith our own.We know that customers expect safe and responsibly-producedproducts in our stores. They consider this a basic requirementin the food retail business. We also have customers who ask forand are interested in buying products produced in a specificsocially- or environmentally-responsible way such as organicor Fairtrade.Developing insightWe gain insight on the complicated issues of product safety andresponsible production through our active participation inorganizations such as the Global Food Safety Initiative (GFSI),Business Social Compliance Initiative (BSCI) and roundtablesfor responsible soy and palm oil, two products that havesignificant implications for the supply chain. Our increasingfocus on understanding the value chain is also giving us moreinsight into sustainable trade.Sharing best practicesWe have a company-wide consensus on product safety and anagreed protocol at each operating company that is in line with bestpractices in the retail industry. Our Product Safety SteeringCommittee, made up of experts from around the company, meetson a regular basis to exchange views and share ideas on how toimprove our approach.The CSR Coordinating Committee formulates policies andpriorities related to responsible sourcing and local buying for thecompany as a whole, based on global and local trends. We thengenerally determine or create a best practice at one operatingcompany. We roll it out further, based on local market needs.Some practices in these areas are also initiated at a local level.HighlightsAlbert Heijn in AfricaAlbert Heijn has established a foundation tofinance projects to improve living conditions andprospects for employees of our suppliers in Africa⁄page 24Sustainable catchAlbert/Hypernova is working with our otherEuropean operating companies to build asustainable seafood program ⁄page 25Connecting with local suppliersGiant held its first Supplier Diversity/Regionaland Small Business trade show to strengthenthe connection between agricultural, minorityand retail industries ⁄page 26One more reason to love rosesICA introduced its own private label Fairtraderoses purchased from certified farms ⁄page 23Choice catchStop & Shop/Giant-Landover has been workingwith the New England Aquarium on a programcalled Choice Catch ⁄page 2318Ahold CSR Report 2007


Sustainable strawberriesAlbert Heijn partnered with theWorld Wide Fund for Nature(WWF) to encourage sustainablestrawberry growing in Spain. SinceFebruary 2007, customers buyingSpanish strawberries in AlbertHeijn stores have found a smallbooklet embossed with the WWFPanda attached to the packaging.It tells them that by buying thosespecific strawberries at AlbertHeijn, they are helping to protectan important wetland naturereserve, the Coto Doñana in thesouth of Spain. The wetland ishome to many migratory and waterbirds, as well as rare plants andanimals, including the Iberianlynx, one of the world’s mostendangered species.ObjectivesOur objectives in sustainable trade fall into three areas:1. Product safety: providing safe products to customers in allour markets is non-negotiable. It is the foundation for helpingto safeguard our customers’ health and well-being.2. Responsible sourcing: we take steps to ensure that oursuppliers respect the rights of their workers and provide safeworking conditions while at the same time preserving theenvironment.3. Buying close to home: buying locally can be good for theenvironment and help communities and small and localbusinesses to develop.Our companies apply stringent foodsafety policies and procedures, whichmeet the highest international standards.Product safetyAll products at Ahold companies need to meet the highest levelsof food safety. In order to secure this, all of our companiesmaintain a food safety policy based on: Product safety starts where products are made or grown.We require our private label product suppliers to follow properproduct safety practices and to demonstrate compliance withinternationally accepted standards, and we support them inmaking improvements.Our companies apply stringent food safety policies andprocedures that meet the highest international standards.We provide our employees with extensive communication andtraining on product safety. We have established appropriaterecall procedures and respond rapidly to crisis situations. Manyof our companies have implemented food safety standards intheir logistics and store operations. In order to achievecontinuous improvement in the way we manage food safety,compliance with these standards is assessed on a regular basisby qualified auditors. We have introduced clearer food allergenlabeling on our products in response to customer concerns andlegal requirements.Ahold has been the first global retailer to specify acceptanceof any food safety certification endorsed by the GFSI for oursuppliers of private label food products. In addition, we alsorequire GlobalGAP certification as an assurance of appropriatefood safety management at farm level.In Europe, we are implementing the British Retail Consortium(BRC) Consumer Products certification for private labelsuppliers of higher risk non-food products. In the United States,we are implementing a strict third-party testing program for highrisk non-food private label products.Ahold CSR Report 2007 19


Making coffee okayThe Ahold Coffee Company teamed upin 2007 with Albert Heijn and Aholdsubsidiary Schuitema to launch CaféOké, a new brand of Fairtrade coffee.Developed with Solidaridad, a groupthat focuses on programs that promotesocial justice, the brand carries theseal of approval from the Max HavelaarFoundation, which launched theworld’s first Fairtrade certification markin 1988. Café Oké is one of a numberof initiatives by Ahold companiesto help increase the market shareof Fairtrade coffee products andaddress concerns in the coffeesupply chain. The introduction ofCafé Oké is expected to help doublethe market share of Fairtrade coffeein the Netherlands in the next fewyears from a current market shareof 2.5%–3%.We are continually seeking improvement in product safety.Under the supervision of our Product Safety SteeringCommittee, a single compliance model has been developedat Ahold and it was implemented in 2007 to further standardizethe way we manage food safety. Based on this experience,we are putting in place a similar compliance model to managethe safety of non-food goods.Responsible sourcingConsumers are more aware than ever about how their choicesaffect global, social and environmental conditions. As a result,value chain participants are increasingly expected to submitevidence of responsible production. Our goal is to provide ourcustomers with choices that satisfy their concerns. We do thisby broadening our assortment and working with supplierswho share our values to improve the way products are made.Workers’ rights and labor conditionsContracts that we sign with private label suppliers contain“Ahold standards of engagement” that establish clear minimumstandards regarding issues such as working conditions for theiremployees with respect to the International Labour Organization(ILO) guidelines. We are focused primarily on suppliers of ourprivate label products because this is the area where we havethe most influence. But we are also committed to taking partin discussions and joining organizations that work towardimprovements across the entire food industry.Ahold is in the process of implementing the BSCI programwith all of its private label suppliers in high-risk countries.In 2007, third-party audits were performed in Asia and Africa.20“ Albert Heijn buys many fruits andvegetables from Africa. We want toensure the continued high volumeof these products from Africa, whilehelping to improve the lives of localproducers, suppliers, employeesand their families. The Albert HeijnFoundation is the first step.”Dick Boer, Member of the Executive Board,Chief Operating Officer Ahold Europe, President andCEO Albert Heijn“ During its partnership with us,Albert Heijn has demonstrated itscommitment by continually workingto improve the living and workingconditions for farmers and workersin Africa.”Jack van Ham, General Manager of ICCOAhold CSR Report 2007


Certified palm oil in the futurePalm oil is an important raw materialfor both food and non-food industries,and is used in a wide variety ofproducts including margarine andcandles. Ahold recognizes that thereare environmental pressuresconcerning the expansion of palmoil plantations to eco-sensitive areas,particularly as palm oil can only becultivated in tropical areas of Asia,Africa and South America. As aresult, it is vital that palm oil isproduced and used in a sustainablemanner based on economic, socialand environmental viability. Aholdtakes part in the Roundtable forSustainable Palm Oil (RSPO) thatis working to address the problemsof palm oil production.Our companies are involved in other projects that protect andfurther the rights of employees and third-world suppliers. Forexample, the Swedish NGO Fair Trade Center said in 2007 thatICA was one of the few companies importing canned tuna fromThailand that enforce on suppliers a code of conduct coveringwages, working hours and UN working rights conventions.Critical commoditiesOur efforts in working towards socially acceptable productionare mainly focused on the products sold in our stores, not theingredients in these products. However, for certain criticalcommodities, we are engaged in initiatives that drive particularsocial or environmental issues connected with thesecommodities.We participate in organizations that promote responsibleproduction, such as the Roundtable for Sustainable Palm Oil(RSPO), which promotes the growth and use of sustainablepalm oil through cooperation within the supply chain and opendialogue with its stakeholders. We are also members of theRoundtable on Responsible Soy (RTRS) that aims to set up amulti-stakeholder and participatory process promotingeconomically viable, socially equitable and environmentallysustainableproduction, processing and trading of soy.We also sell products certified by independent standards forsocially- and environmentally-responsible production. Forexample, all “Perla” private label coffee sold at Albert Heijn andall ICA coffee is Utz Certified. This standard seeks to provide anindependent and credible system for assuring good practices incoffee production. 100% of the coffee produced by the AholdCoffee Company is Utz Certified. This standard drivesimprovements by awarding farmers with certification if theypledge to adhere to a code that includes fair wages and healthcare for workers and environmental standards.FairtradeThe Fairtrade movement is gaining increasing attention asgrowing numbers of customers express a preference forproducts that meet the highest standards for socially responsibleproduction and trade. In response to customer demand, all ofour supermarket companies carry a selection of Fairtradecertified products and continue to add new ones.In 2007, Albert Heijn cooperated on the launch of a newFairtrade coffee brand, Café Oké, developed jointly with theAhold Coffee Company and the development organizationSolidaridad.Our goal is to provide our customers withchoices that satisfy their concerns aboutresponsible production.In 2007, ICA in Sweden introduced a private label brand ofFairtrade roses, building on years of work with certified rosegrowers, while Giant-Carlisle became one of the only grocery storechains in the United States to carry Fairtrade roses.Ahold CSR Report 2007 21


Banding together forresponsible cocoaAhold joined with several otherfood industry players in 2007 toinitiate a program to create a moresustainable cocoa supply chainin Ivory Coast. Launched withpartners including organizationsUtz Certified, Cargill andSolidaridad, the program aims tobuild capacity at farm level and,through independent certification,guarantees improved socialand environmental practices.Developing communitiesWe are committed to working with smaller suppliers indeveloping economies to help grow their businesses and givethem access to wider markets. Our goal is to provide ourcustomers with choices that satisfy their concerns aboutresponsible production while working to meet the needs of ourother stakeholders.The Ahold Sustainable Business Development (ASBD)program is an example of how we couple business withsocial responsibility. The program aims to help suppliers inthe developing world, particularly in Africa, to meet minimumstandards for production and quality so that they can accessmore developed markets. Several tropical products soldin Albert Heijn and ICA stores were facilitated by theASBD program.Through the project, our people are transferring knowledge andexpertise to African producers and manufacturers, and creatingsustainable business relationships. At the same time, our accessto organic and Fairtrade fruit and vegetables is enhanced. Forexample, Albert Heijn is targeting the ability to offer the consumera year-round assortment of combined fresh organic and Fairtradeproducts, often identifying vendors through the ASBD program.In September 2007, Albert Heijn and development organizationICCO expanded their cooperative efforts in Africa, announcing anew partnership with the organization FairMatch Support, whichencourages European companies to adopt more sustainabletrade practices. The partnership focuses on improving the livingconditions and future prospects for African fruit and vegetablegrowers. Through the newly established Albert Heijn Foundation,the company is financing projects in Africa.Albert Heijn, ICCO and FairMatch Support are working tostrengthen African fruit and vegetable purchasing in threeways: giving financial support to projects focusing on education,housing and health for fruit and vegetable growers; ensuringthat fruit and vegetable production for Albert Heijn in Africameets internationally accepted social standards; and, whereverpossible, supporting small-scale producers in providingfruits and vegetables to Albert Heijn’s African suppliers andsupply chains.Through the Ahold Sustainable BusinessDevelopment program, our people aretransferring knowledge and expertise toAfrican producers and manufacturers,and creating sustainable businessrelationships.22Ahold CSR Report 2007


One more reasonto love rosesICA handed out 10,000 roses instores around Sweden ahead ofValentine’s Day to publicize theintroduction of the company’s ownprivate label brand of Fairtraderoses. ICA has worked with certifiedrose growers for several years.But from now on ICA will purchaseroses for its private label from farmsin Kenya certified according to theMilieuproject Sierteelt (MPS) –a Dutch standard for environmentaland working conditions. Most oftheir roses have been produced inline with Fairtrade requirements.Giant-Carlisle has followed suit,and has also introduced Fairtraderoses to its assortment, makingthese flowers even more attractiveto customers.In 2006 and 2007, Ahold and Albert Heijn worked together ona trial program, sending experts to work with a mango-packingplant in Bamako, Mali. The goal of the program was to teachpeople how mangos need to be handled and packed forWestern markets, thus giving them access to these markets.Albert Heijn’s logistics partner, Bakker, cooperated in thisprogram by delegating a warehouse manager from South Africato support the program during the season.Sustainable seafoodDemand for seafood has doubled over the last 30 years, raisingconcerns among many people about the associated impactsduring production and harvest. By working together to promotesustainable seafood, Ahold’s operating companies are meetingcustomer demand while helping to protect a precious resourceand an important global industry.Sustainable seafood is an important topic to many of Ahold’sstakeholder groups. Increasingly, the issue is gainingimportance for the investment community as well asenvironmental organizations, such as Greenpeace and theWorld Wide Fund for Nature (WWF), which have begun ratingseafood producers’ ecological sustainability levels. Growingnumbers of customers and employees are asking directlyabout the sustainability of the products we sell in stores –including seafood.For many years we have been carrying out activities to addressthese concerns. Since 2000, Ahold USA has been working withthe New England Aquarium (NEAq) on a program called ChoiceCatch. The Aquarium’s scientific experts assess thesustainability of seafood sources. It helps Ahold USA identifysustainable sources and work with suppliers to improve theirperformance. Both ICA and Albert Heijn have strongrelationships with the WWF and also work with the MarineStewardship Council (MSC), which runs a sustainable fisheriescertification program.The Ahold Sustainable Seafood Initiative comprises all of ourcompany’s policies and actions regarding seafood sustainability,and is managed and driven by the Ahold Sustainable SeafoodGroup. This team consists of senior cross-disciplinarysustainability experts from around Ahold. It is supported andadvised by external experts from the WWF and the NEAq.Our mission is to provide our customers with the highestachievable level of sustainability in seafood products offered.In doing so, our operating companies cope flexibly andresponsibly with the complex task of securing sustainableseafood production.Ahold CSR Report 2007 23


Building communities far awayAlbert Heijn, development organizationICCO, and FairMatch Support createda partnership to improve livingconditions and prospects for Africanfruit and vegetable growers. Thenewly-established Albert HeijnFoundation is financing projects inKenya, Ghana and South Africa thatfocus on education, housing andhealth. Albert Heijn, ICCO andFairMatch Support are workingtogether to strengthen African fruitand vegetable purchasing. Projectsfocusing on education, housing andhealth are receiving financialsupport. These projects are aimed atlocal fruit and vegetable growers forAlbert Heijn, their employees, theirfamilies and the surroundingcommunities.Our goals for delivering sustainable seafood into our stores are: environmentally-responsible way; in jeopardy; to monitor and improve long-term viability.We have developed and are implementing a group-wideseafood sustainability policy, rules for the sourcing and sale ofsustainable seafood, and a supplier assessment tool to achievemeasurable, continuous improvement.Animal welfareWe respect local regulations on animal welfare and oftenimplement even stricter controls. We seek to improve livingconditions for animals while at the same time deliveringcustomers the safe, quality products they demand. Forexample, in Europe we require producers of meat and seafoodto demonstrate compliance with audit standards that includefood safety, animal health and welfare issues.Our goal is to balance the need for a controlled environment,which must be maintained to meet our regulatoryresponsibilities, with the desire to provide conditions that meetthe needs of the animals. To this end, we are involved in aEuropean research project aimed at accommodating societalconcerns and market demands and developing reliable on-farmmonitoring systems, product information systems and practicalstrategies to improve animal welfare based on scientificresearch. The forthcoming animal-based welfare indicators canbe used to assess compliance during routine food safetysupplier audits at relevant points in the supply chain.24“ The World Wide Fund for Natureis very pleased that Albert Heijn,being the largest seafood retailerin the Netherlands, is committedto supporting us in increasing thesustainability of fisheries.”Johan van de Gronden, General Manager of WWF,the NetherlandsAhold CSR Report 2007


A sustainable catchAhold’s operating companies aredefining ways to increase thesustainability of sourcing seafood.Since 2000, Ahold USA hasworked with the New EnglandAquarium on the Choice Catchprogram. The Aquarium’sacademic section audits seafoodsources for environmental impactand makes recommendations thathelp drive purchasing decisions.Both ICA and Albert Heijn havestrong relationships with the WWFand the Marine StewardshipCouncil (MSC). Albert Heijn andICA are sourcing more MSCproducts and encourage suppliersto become certified against theMSC standard for well-managed,wild capture fisheries. Albert/Hypernova is working with our othercompanies to build a sustainableseafood program.This will provide our consumers with assurance where animalwelfare issues are concerned when deciding to buy private labelmeat and seafood products.Ahold does not commission any animal testing. No currentprivate label Health and Beauty products are tested on animalsexcept where legally required.Our companies are engaged in dialogue with variousstakeholders about animal welfare-related issues and aremaking continual improvements to address the concerns ofstakeholders. We have supported the establishment of aEuropean Animal Welfare Platform to address issues of concernwith suppliers, researchers, NGOs and other retailers.Buying close to homeWe are also committed to working with local and Women andMinority Business Enterprise (WMBE) business owners to helpgrow their businesses and give them access to wider markets.These initiatives also enable us to differentiate our companiesby providing products that are attractive to our increasinglydiverse customer base and those interested in supportinglocal producers.Supporting small, minority-, and womenownedbusinesses helps improve theeconomic health of the communities weserve and benefits our customers.Supplier diversityWe have organized several supplier diversity programs,particularly in the United States. Ahold USA’s Supplier DiversityDevelopment Program/Regional and Small Business Initiativedepartment is dedicated to promoting an all-inclusive businessenvironment, which is beneficial to our company and oursuppliers and their communities.The program assists regional, small, minority-, and womenownedbusinesses to develop innovative, low cost, efficientsolutions that drive mutual growth. Through it, we developpartnerships with these suppliers that support them in gainingaccess to a wider market and joining the group of world-classsuppliers serving our customers. Supporting such businessesin turn helps improve the economic health of the communitieswe serve and benefits our customers, particularly inmulticultural communities, by bringing them products that theymight not otherwise see on store shelves.In 2007, Ahold USA demonstrated its commitment to supplierdiversity by bringing on board 16 new vendors, divided equallybetween Giant-Carlisle and Stop & Shop/Giant-Landover.Giant-Carlisle alone has brought in 40 new WMBE vendorsin the past three years. Ahold USA spent approximately90 million on goods and services from minority- and womenownedbusinesses in 2007.Ahold CSR Report 2007 25


Partners in educatingconsumersThe World Wide Fund for Natureand Albert Heijn have joined forcesin the Netherlands to increase thesale of sustainable seafood to Dutchconsumers. In September 2007,both organizations signed a three-yearcooperation agreement. The goal is toincrease the sale of sustainable typesof fresh and frozen seafood. AlbertHeijn is also educating itscustomers about the importanceof sustainable seafood production.All private label seafood productscarry the message “We are puttingan effort into seafood sustainability”and display detailed informationabout the sustainability status ofthe product.As part of its commitment to supplier diversity, in 2007 Giant-Carlisle held its first Supplier Diversity/Regional and SmallBusiness trade show designed to strengthen the connectionbetween agricultural, minority and retail industries. More than50 members of the PA (Pennsylvania) Preferred program hadthe opportunity to market their products at this trade show.(For more information on this program see “Local buying”).Stop & Shop/Giant-Landover organized and hosted four supplierdiversity Not-for-Resale vendor fairs in 2007, targetingpurchases ranging from construction services to shoppingcart maintenance. More than 100 WMBEs participated.The largest contract awarded to a minority- or women-ownedenterprise in the Not-for-Resale category in 2007 was in excessof 18 million.Local buyingExtending the range of our supplier diversity initiatives are“buy local” programs that support the economic developmentof many of our local communities by giving small businessesaccess to a wider market for their goods. Both in the UnitedStates and in Europe, our stores’ connection to the localcommunity is often reinforced by having locally produced freshand specialty foods included in their offerings.Giant-Carlisle’s support of the PA Preferred Program – designedto identify locally sourced Pennsylvania products and educateconsumers on where to find them – has been recognized forgiving opportunities to hundreds of small companies across itsmarket area and the state.ICA and Albert Heijn have initiatives that not only give localsuppliers a more significant presence in stores, but also bring awider range of choice to customers. For example, ICA launchedthe “Local Tastes” project in 2007. During the year, thecompany met with a series of small local suppliers and workedwith them to help find opportunities to grow their businesses.26Ahold CSR Report 2007


Going the distance in AfricaFor eight weeks in 2007 AlbertHeijn supermarket manager andformer Ahold management traineeSimon-Jan Terpstra worked inBamako, Mali to support themanagement of a mango packagingfactory. He worked together withKoot Nel, warehouse manager fromUniveg. This project marked thesecond time mangos from Maliwere exported to the Netherlandsfor Albert Heijn. The programstarted in 2006 with 20,000tonnes of mangos. After favorableresults in both 2006 and 2007,the project is expected to continuein 2008.Committed to diversityLarry Vereen is a living exampleof Giant-Carlisle’s commitment tosupplier diversity. During more thantwo decades with the company,Vereen has demonstrated thatdiversity is part of Giant-Carlisle’sgoals, strategy and core values.Currently the manager of theSupplier Diversity Development/Regional & Small BusinessInitiative at Giant-Carlisle, Vereenhas been recognized for hisprofessional efforts. In 2006,he was given the “Award ofDistinction” by the NationalMinority Supplier DevelopmentCouncil of Pennsylvania, NewJersey and Delaware.Ahold CSR Report 2007 27


Climate actionLess is moreWherever we operate, we are workingto improve our performance byreducing our ecological footprint andmaking our operations more efficient.28Ahold CSR Report 2007


Ahold CSR Report 2007 29


Climate actionOur approachWe rely on efficient logistics to providethe broad and continuously availableassortment of fresh, safe, high-qualityproducts that consumers demand.We are focused on improving energyefficiency and reducing greenhouse gasemissions, by making our operationsas efficient as possible to limit theirnegative impact on the climate andthe environment.We continue to work to reduce energy usage and emissions.This supports cost reduction and improvements to ourcompetitiveness and at the same time helps us to meet ourenvironmental goals.We are working to better understand the impact of ouroperations on the environment and the climate. Our goal is todevelop inspiring solutions that address the concerns of ourcustomers and other stakeholders in the area of climate action.We believe that to have a lasting impact on climate change it isnecessary to partner with suppliers and other retailers to ensurethat best practices are implemented throughout the supplychain and our industry.Developing insightIn 2007, the issue of climate change continued to gainmomentum, awareness and concern around the world andamong our customers. We are aware of the strategic impactclimate change will have on our business and industry.Our understanding of this issue has been, and continuesto be, informed by internal experts, external developmentsand discussions with our stakeholders. We are workingwith a consultancy firm to ensure we benefit from externalbest practices.Some of the questions we are currently addressing are: Whatdoes climate change mean to our business? What is the scopeof the problem and what are the main impacts from ouroperations? What are customers’ main concerns? What arethe risks and rewards to our business? What is our role as aresponsible retailer in responding to climate change?HighlightsPiloting changeAlbert Heijn is running pilots of several energysavingsystems, which include the reuse of heatgenerated by refrigeration units to heat stores⁄page 35Recognition for green initiativesAlbert/Hypernova was recognized by theenvironmental association Arnika for its progressin reducing the environmental impact of itsoperations ⁄page 36Efficient deliveryA disciplined approach to backhauling means that95% of the time Giant-Carlisle’s trucks return to thedistribution center with products on board ⁄page 35Waste notICA has launched a website for customersdedicated to explaining the environmental impactof wasting food ⁄page 38Star powerStop & Shop/Giant-Landover was named anEnergy Star Leader in 2007 by the U.S.Environmental Protection Agency ⁄page 3230Ahold CSR Report 2007


Measuring our impactIn May 2007, ICA began a projectaimed at better understanding theimpact its private label products– and food in general – have onour climate. ICA focused onapproximately 100 of its privatelabel products, analyzing themfrom a life-cycle perspective. Theinitiative, carried out in associationwith the Swedish Institute forFood and Biotechnology (SIK),provided data on the greenhousegas emissions of each productfrom field to store, among otherthings. Data will be used in futuredecision-making on decreasing theclimatic impact of food production.Sharing best practicesTo date, we have focused on environmental efficiency andenergy management in our operations. ICA, Stop & Shop andGiant-Landover have been initiative leaders in these areas. In2007, our CSR Coordinating Committee identified climate actionas one of our four CSR priorities going forward. We have put aprogram director in place to manage our Ahold-wide approachto this issue. Our operating companies have each establisheda climate action committee to analyze their local situation andapproach. We are already having discussions on climate actionin industry bodies such as the European Retail Round Table(ERRT), Eurocommerce and the Food Marketing Institute (FMI).We also discuss the topic frequently with governments andNGOs in the regions where our operating companies are active.ObjectivesOur objectives in the area of climate action are to:1. Develop a common understanding of our impact anda roadmap for climate action.2. Reduce greenhouse gas emissions in our stores,distribution centers and transport.3. Continue to pursue other environmentally-responsiblestrategies.Developing a common understanding of our impactWe are currently working to develop a common understandingwithin our company of how we can best address the issue ofclimate action.This involves first understanding our impact on climate change.We have started to investigate this complex issue. In general,retailers have a relatively low environmental impact, whencompared with the effect of the manufacture of products andthe refrigeration, preparation, consumption and disposal of foodby customers. We believe it is our responsibility to first addressthe direct impacts of our operations, and then reach out tosuppliers and customers to help reduce the indirect impacts.Our goal is to develop a state-of-the-art climate action program,based on internationally recognized guidelines (including GRI’sG3 Guidelines, Greenhouse Gas Protocol and the CarbonDisclosure Project). We plan to have this strategy in place,including our approach to reporting, by the time we publish ournext year’s CSR report.Good alignment of stores, distributioncenters and suppliers contributes toproduct quality and sales, enhancesefficiency and reduces waste.Reducing greenhouse gas emissionsEnergy use in refrigeration and food preparation is necessaryto provide safe, fresh, quality food and an attractive shoppingenvironment. It is one of our most significant directenvironmental impacts. Another impact is transportation anddistribution, which consumes fuel and produces CO 2 emissions,air pollution and noise. Our companies are also phasing outozone-damaging refrigerants, managing refrigerant use andmaintaining refrigeration systems to minimize leakage.Ahold CSR Report 2007 31


Star powerStop & Shop/Giant-Landover wasnamed an Energy Star Leader inOctober 2007 by the U.S.Environmental Protection Agency(EPA) in recognition of its superiorenergy performance. The companyoperates more than 575 storescovering more than three millionsquare meters. The Energy Starrecognition is awarded to companiesthat have achieved significant energysavings through portfolio-wide energyefficiency improvements. Stop &Shop/Giant-Landover was one of onlya few U.S. supermarket companiesto be named an Energy Star Leader.Energy-efficient attributes at thecompany include daylighting,T5 fluorescent lighting systems,automatic dimmers and occupancysensors, and refrigeration systemswith high-efficiency fan motors.Diesel consumption and CO 2 emissionsfrom transporting products between warehouses and storesDiesel consumption in millions of liters CO 2emissions 1 in thousands of tonnes2007 2006 2007 2006Stop & Shop/Giant-Landover 2 16 17 43 48Giant-Carlisle 3 14 14 43 40Albert Heijn 18 15 49 42Albert/Hypernova 6 6 17 17ICA 24 22 65 591Calculation based on IPCC conversion data.2Does not include any third-party diesel consumption.3Does include major third-party diesel consumption.Electricity consumption in warehouses and storesWarehousesStores (sales area)in kWh/sq.m 2007 2006 2007 2006Stop & Shop/Giant-Landover 372 519 821 868Giant-Carlisle 329 323 801 748Albert Heijn 145 154 463 480ICA Sweden 247 249 500 522ICA Norway 234 249 556 568Refrigerants installed in storesCFCs HFCs HCFCsin thousands of kilograms at year end 2007 2006 2007 2006 2007 2006Stop & Shop/Giant-Landover 4 5 448 416 383 409Giant-Carlisle 0 0 135 124 77 82Albert Heijn 0 0 157 142 24 2832Ahold CSR Report 2007


“Good” energyIn April 2007, Stop & Shopannounced it would purchaseSterling Planet Green-e certifiedrenewable energy certificates tomatch 100% of its electricity useat a new store in Kennebunk,Maine. Sterling Planet will annuallysupply 2,700 megawatt hoursof renewable energy for the store.With this purchase, Stop & Shopwill avoid nearly two kilotons ofCO 2 pollution in the next year.All of ICA Sweden’s warehousesuse only Good EnvironmentalChoice-labeled electricity.This has helped to reduce CO 2emissions from energy productionby approximately five kilotons, orabout 8% of emissions from ICA’sdistribution transport action.“ We at ICA are working extensivelyto reduce the impact of ouroperations on the environment –from our products, warehouses,transports and stores. Throughprograms aimed at long-termprevention, ICA is contributingto sustainable development.”Kenneth Bengtsson, President and CEO, ICA ABTracking energy and refrigerant useSaving energy is accomplished through tracking andbenchmarking energy consumption and refrigerants used,investing in energy-efficient equipment, developing innovativesolutions with vendors, exchanging best practices amongoperating companies, and training staff in energy-savingpractices. Any reduction in energy use represents an economicas well as environmental opportunity.Stop & Shop/Giant-Landover have implemented with energysavinginnovations in dozens of stores successful elements tolarger groups of stores. We’ve installed closed doors on dairycoolers, lighting reduction during off-hours, reflective white roofmembranes to reduce heat absorption and use less airconditioningin the summer, and reflective shields on lightingin parking lots to reduce light pollution. The company hasintroduced skylights to help illuminate the sales floor, andspecial dimming systems that dim conventional lighting,depending on the amount of daylight harvested. Barriers toenergy-saving features include cost, customer resistance(on issues such as open versus closed coolers) and impacton food quality.ICA uses the CoolICA system in around 340 of its Norwegianstores to monitor energy consumption and temperaturesin all refrigerated display cases and freezers. CoolICA hasreduced energy use and service costs and achieved betterfood quality through more accurate monitoring oftemperatures. ICA warehouses in Sweden are also takingenergy-conservation measures such as reusing waste energyfrom cooling systems and sending this energy back into thelocal public heating network.Ahold CSR Report 2007 33


Partners in powerIn August 2007, Stop & Shop andenergy solutions developer EnerNOC,Inc. sealed a partnership for a programto help reduce stress on the electricpower grid during high peak demand.Under the program, when the gridoperator reports a peak in electricitydemand, EnerNOC can remotelymonitor and control dozens of Stop& Shop sites, reducing powerconsumption to help preventblackouts. Stop & Shop alone cancontribute enough “negawatts” –a term that is defined as energy thatis conserved rather than consumed– to keep the lights on in more than40,000 typical households.34Ahold CSR Report 2007


The best way to get thereEco-friendly driving is one wayAhold’s companies can reduce theenvironmental impact of theiroperations. For example ICA and Stop& Shop/Giant-Landover are trainingdrivers in methods that reduce fuelusage and CO 2 output. Improvingdriving habits at Stop & Shop/Giant-Landover meant that in oneyear the company was able to increasethe fleet fuel economy by 5% throughdriver training and feedback.In addition, Ahold companies usebackhauling, in which goods froma supplier are picked up on a truck’sreturn trip to a distribution center,thereby reducing the number ofempty kilometers driven. That meansthat 95% of Giant-Carlisle’s trucksare filled on return trips to thedistribution center.Albert Heijn has lighting systems that change in intensityaccording to the store’s needs during various parts of the day,saving energy through dimmer lights at night. Albert Heijn is alsorunning pilots of several energy-saving systems, which includethe reuse of heat generated by refrigeration units to heat stores,LED lighting, automatic light switching and measurementsystems to track energy use.“Good” energyStop & Shop announced that it is purchasing Sterling PlanetGreen-e certified renewable energy certificates for its newstore in Kennebunk, Maine. Stop & Shop is also taking partin a program in which utilities and grid operators encouragecustomers to turn off inessential equipment, shift schedules ortake other steps toward greater energy efficiency – especiallyduring periods of peak demand when the power grid threatensto be overburdened. The company is able, through variousmeasures, to cut energy use by 40 megawatts when asked.This is equal to the power output of a plant that otherwise mightbe fired up to meet high demand.Water consumptionin millions of liters 2007 2006Stop & Shop/Giant-Landover 2,063 2,081Giant-Carlisle 816 740Albert Heijn 322 319That means that 95% of Giant-Carlisle’s trucks return to thedistribution center with products on board. 2007, Stop & Shopand Giant-Landover were the only supermarket chains in theUnited States selected to participate in the US Green BuildingCouncil (USGBC) Portfolio Program pilot for LEED-EB volumecertification for existing buildings. The company was selected asa result of its environmental innovation and early commitment toand success in developing green and energy-efficient stores.Efficient transport and distributionEfficient distribution systems are key to food retail – fromjust-in-time product ordering systems to making optimal use oftruck capacity. By working to reduce the environmental impactsof transportation and distribution we are often also reducingcost. Good alignment – of stores, distribution centers andsuppliers – contributes to product quality and sales, enhancesefficiency and reduces waste.We believe that working to reduce wasteis a significant aspect of environmentallyresponsible behavior.Our companies use continuous replenishment, integrating storeordering systems with distribution centers and suppliers tominimize the transport of unwanted goods. This cuts fuelconsumption, reducing CO 2 emissions and lowering costs.To minimize emissions and costs, we maximize the load factor,ensuring that trucks carry as much product as possible on everytrip. Computer systems enable us to plan the most efficienttrucking routes and loading procedures. Our companies are alsointroducing even more fuel-efficient trucks into their fleets.Ahold CSR Report 2007 35


Albert/Hypernova recognizedfor environmental initiativesThe environmentalist associationArnika in 2007 recognized Albert/Hypernova for initiatives dedicatedto reducing the environmental impactof its operations. The company hasimplemented energy-efficientsolutions in the stores and has beengradually replacing the PVCpackaging with alternative materials.The company has also announcedplans to promote waste-sorting inthe stores.A number of our companies, including ICA and Stop & Shop/Giant-Landover, are training drivers in methods that reduce fuelusage and CO 2 output. Improving driving habits at Stop & Shop/Giant-Landover enabled the company to improve its fleet fueleconomy by 5% in one year’s time.In addition, our companies use backhauling, in whichgoods from a supplier are picked up on a truck’s return tripto a distribution center, to reduce the number of emptykilometers driven.Albert Heijn has silent trucks that allow the company to deliverto stores at night and in the early morning without disturbingneighbors. This enables the company’s trucking fleet to avoidtraffic during peak daytime hours, reducing travel time andenergy use.To reduce their fuel-consumption, Giant-Carlisle, Stop & Shopand Giant-Landover have introduced a truck idling system thatswitches the truck engine off if it has been left running longerthan five minutes. Also, Giant-Carlisle uses recycled automotiveoil in special furnaces to help heat its distribution centers.In Sweden, ICA has outsourced all transport to independenthaulers. ICA requires that transport companies have a plan onhow to reduce emissions of carbon dioxide and carcinogens inrelation to the miles they drive. All drivers must receive trainingon conservative driving techniques, which can reduce fuelconsumption by 10–15%.ICA continually scrutinizes other steps it can take to reduce C0 2output, including limiting business travel whenever practical.ICA has guidelines for meetings that clearly encourageemployees, whenever possible, to connect using telephone andvideo conferencing instead of traveling to meet in person.Pursuing other environmentally-responsible strategiesWe believe that working to reduce waste is a significant aspectof environmentally-responsible behavior. We are also aware ofthe indirect impact of our operations on the climate. In addition,recycling often benefits our businesses. Reducing waste createscost savings and recycling can provide additional income. Someof the money generated by our recycling programs is donated tocharitable causes.We are applying consumer insight todevelop incentives for using reusablebags, information campaigns andattractive and affordable alternativesto traditional plastic bags.36Ahold CSR Report 2007


Piloting changeIn 2007, Giant-Landover and Stop& Shop were the only supermarketchains selected to participatein a pilot program for retailersintegrating “green” technologyinto existing buildings. The U.S.Green Building Council, whichdevelops and administers thenationally accepted LEED-EBstandard for green buildings,is running the pilot. Stop & Shophas implemented a number ofenvironmentally friendly measuresthat have reduced the new stores’electrical loads by 28% comparedto similar stores built prior to 2001.RecyclingWe take a proactive approach to recycling and have abroad range of programs in place throughout our operatingcompanies. We use recyclable packaging whenever possible.We recycle cardboard and plastic and are increasingly recyclingpaper products. Giant-Carlisle, Stop & Stop/Giant-Landoverand Albert Heijn have highly successful recycling programsand continue to explore new opportunities for recyclingadditional types of waste. For example, Giant-Carlisle has beenable to generate extra income by recycling plastic corners thatare used in the shipping of crates of bananas. Giant-Carlisle isalso reducing paper through an internal print reduction programthat promotes online viewing of reports and other documents.A number of our businesses audit their stores and distributioncenters to verify that recyclable waste is not included inthe waste stream when recycling facilities are available.For example, Albert/Hypernova carries out central processingof waste in order to better regulate its waste system.Recycling organic waste is more complicated as it requiresa special infrastructure and hauling. Developing effectiveprograms to deal with organic waste is particularly significant insome areas where it may be banned from the waste stream incoming years. Massachusetts is a case in point: Stop & Shop,which operates in this market, is helping state officials toestablish the necessary infrastructure and set standards fororganic recycling. In 2005, as a result of its efforts, Stop & Shop/Giant-Landover received the WasteWise Very Large Businessaward for recycling from the Environmental Protection Agency.“ We have many people in thisorganization who are energized bythe idea of doing everything theycan to take a leadership role inour communities and to makeenvironmentally sound choices. I’mextremely proud of our people and ofthe ethos we have as a company.”José Alvarez, President and CEO,Stop & Shop/Giant-LandoverAhold CSR Report 2007 37


Throw-away educationICA is working to educateconsumers on what they can do toreduce their impact on the climateand the environment. As part ofthis, ICA has created a specialwebsite (http://www.ica.se/klimat)to inform Swedish consumersabout the environmental impactof wasting food. For example, theenvironmental impact of throwingaway a banana is the equivalent ofburning a low-energy light bulb for12 hours. Two greenhouse-growntomatoes burn 24 hours of thesame bulb. ICA’s message is thatpeople throw away 10% of the foodthey buy. By helping to reducewaste, ICA is helping communitiesaddress a wide range of CSRchallenges from hunger toclimate action.Our European companies work with suppliers to reducepackaging waste in line with the EU Packaging Directive.Plastic bagsThe use of plastic bags by supermarkets has become anincreasingly relevant topic in all of our markets, particularlyin the United States where they are being banned in somecommunities. The issue has slightly less resonance in Europewhere supermarket consumers are more accustomed toreusable bags or paying for plastic shopping bags, particularlyat Albert Heijn.All of our supermarket companies offer reusable shoppingbags and numerous opportunities to recycle plastic bags.In the United States, all of our stores have collection points forcustomers to return used bags to be recycled. For example,bags collected at Giant-Carlisle stores are recycled into materialto build decks and railings, by Trex, the leading manufacturerof alternative decking lumber in North America.For the last 10 years, many of those plastic bags have beenturned into park benches, which are donated by Giant-Carlisleto help beautify local communities.Although recycling plastic shopping bags helps reduce thenegative impact on the environment, our goal is to encouragethe widespread use of reusable bags. This will require changingcurrent consumer perceptions about the impact shopping bagshave on the environment.As part of the introduction of low-cost reusable bags in its storesin 2007, Giant-Carlisle conducted significant research intocustomer attitudes on recycling and reusability. This researchshowed that large numbers of consumers place a low priorityon the plastic bag issue, for reasons that included reducedconvenience, uncertainty about alternatives and extra costs.To overcome such barriers, our operating companies areapplying consumer insight to develop information campaigns,incentives for using reusable bags, and attractive and affordablealternatives to traditional plastic bags.WastePlastic recycled Cardboard recycled 1 Organic recycled Non-recycledin tonnes 2007 2006 2007 2006 2007 2006 2007 2006Stop & Shop/Giant-Landover 1,720 1,622 147,714 126,205 9,969 8,198 158,776 151,504Giant-Carlisle 1,260 1,034 42,344 37,957 1,796 1,671 46,049 46,416Albert Heijn 2,731 2,070 51,488 45,840 28,000 28,518 13,000 10,523Albert/Hypernova 1,000 1,081 12,143 11,255 3,637 2,618 14,276 14,505ICA Sweden 1,525 1,444 1,480 1,380 2,717 4,182 327 304ICA Norway 697 465 9,511 10,396 NA NA NA NA1ICA Sweden only from warehousing operations.38Ahold CSR Report 2007


Waste reduction –it’s in the bag!Fashion statements, park benches– it’s amazing what you can makewith a plastic bag (see page 38).Creative ideas like these arehelping Ahold companies reducetheir environmental impact.In August 2007, Giant-Carlislelaunched a reusable bag programto give customers an affordableand eco-friendly alternative topaper or plastic. By selling the bagsfor an affordable 99 cents, thecompany is giving customers anenvironmentally friendly option.ICA introduced a reusable bag inSeptember 2007. This stylish bag(pictured at right) can carry up to20 kilos. ICA teamed up withfashion house, Whyred, to createthe design.Just whisperIn 2007, Albert Heijn tested anew type of “whisper” deliverytruck for its stores in a projectaimed at reducing noise pollution,particularly in inner-cityneighborhoods where supermarketdeliveries can sometimes bedisruptive. The feedback after theearly morning tests, which included700 deliveries with “whispertrucks” along with two other Dutchretailers, was extremely positive.Making deliveries outside of rushhours also resulted in a decreasein driving time of up to 60%,meaning less diesel fuel wasburned. That in turn meant lowerCO 2 emissions. Starting in 2010,Albert Heijn intends to make alldeliveries to its stores usingwhisper trucks.Ahold CSR Report 2007 39


Community engagementBeyond givingWe build relationships with customers,employees, suppliers and otherstakeholders by actively supporting theneeds of communities in our marketareas and beyond.40Ahold CSR Report 2007


Ahold CSR Report 2007 41


Community engagementOur approachCommunity involvement and charitablegiving are part of our customer focus.As active members of the communitieswe serve, we have the means andthe responsibility to make a differencein the lives of our stakeholders.We listen to our customers and are committed to supportingcauses that they, as well as our employees and otherstakeholders, believe are important. We work to be active,contributing members of society, particularly the localcommunities where our stores are located. To make the mostimpact, we focus on our strengths as a food retailer, our storelocations, which are the focal points of many communities,and on our employees’ expertise on food-related topics.Developing insightIn all of our markets our stores are an integral part of thecommunity. Our employees work in the neighborhoods weserve, and many customers may visit our stores several timesa week. These close ties enable us to appreciate local needs.Our operating companies have a trackrecord in choosing the right causes andputting programs in place to effectivelybenefit stakeholders.Our approach to community engagement has historicallydiffered in our European and U.S. markets. The charitable givingaspect of community engagement has been more prevalent inthe United States, where government social welfare programsare not as comprehensive as in many of our European markets.More consumers than ever before, particularly in the UnitedStates, expect companies to be good corporate citizens in thecommunities in which they operate. A recent cause-relatedsurvey 1 found that more than 90% of U.S. consumers say it isimportant for companies to support local causes and charities.1PR Week/Barkley PR Cause Survey 2007HighlightsHealth in communitiesAlbert Heijn raised more than 100,000 forcancer research in just one week ⁄page 46A place to call homeAlbert stores raised a record sum of more than300,000 in 2007 to help needy children ⁄page 44Top grades for school rewardsGiant’s A+ School Rewards program celebrated itsmost successful year ever, with over 1.2 milliondonated to support education ⁄page 43Important to customers means important to usDuring breast cancer awareness month, ICA’s“pink” fundraising campaign raised 650,000⁄page 47Combatting childhood cancerStop & Shop/Giant-Landover reached its 2007goal of raising almost 4 million to fight childhoodcancer ⁄page 4642Ahold CSR Report 2007


Top grades for schoolrewardsGiant-Carlisle’s A+ SchoolRewards program celebrated itsmost successful year yet in 2007,with over 1.2 million donatedto 1,405 schools to spendon anything from playgroundequipment to computers.The A+ School Rewards programcreates a special bond with localcommunities. It’s not just teachersand parents who are keen to raisemoney for schools. The programreaches large numbers of peoplewho want to support the educationand development of children intheir communities. Schools arefree to spend the money as theywish: from equipping science labsor sports teams to helping withbasics such as chairs and clocks.While we don’t know how many customers choose to shop in ourstores solely as a result of our charitable giving, we believe thatlocal community support is an important part of being a sociallyresponsible company. We work to be active, contributingmembers of society, particularly in the communities where ourstores are located.Sharing best practicesCommunity engagement through charitable giving is particularlystrong in our U.S. companies. Our employees here are engagedin supporting numerous causes in their communities andhave a track record in choosing the right causes and puttingprograms in place to effectively benefit stakeholders. Theycombine financial donations and promotions with strong localpartnerships and solicit donations from customers andemployees on behalf of worthy causes.In Europe, our companies carefully select causes related to ourbusiness and make significant investments in financial supportand management capacity. Often this giving has been targetedtowards communities outside Europe.Our companies are able to learn from the different approacheswe take in each country. We are also able to test an approachin one market before rolling it out to other operating companies.We started to formally share best practices in communityengagement during our most recent CSR CoordinatingCommittee meeting in the fall of 2007.Donations 1in thousands of euros 2007 2006Stop & Shop/Giant-Landover 10,516 11,849Giant-Carlisle 8,923 9,138Albert Heijn 228 121Albert/Hypernova 418 37ICA 1,352 2,758in thousands of U.S. dollars 2007 2006Stop & Shop/Giant-Landover 14,392 14,877Giant-Carlisle 12,212 11,4731Contributions to charity, from Ahold companies, our customers, vendors and employees.ObjectivesOur objectives in community engagement are to support andengage in the communities we serve by:1. Integrating our community activities into our daily businessoperations for maximum customer awareness.2. Focusing programs on the operating company or local level,where we are closest to the communities we serve.All of our activities in community engagement are designedto meet these two objectives. Many of our programs alsocomplement Ahold’s commitment to CSR goals such aspromoting healthy lifestyles, sustainable sourcing andenvironmental responsibility.As food providers, hunger relief initiativesare a natural focus for our operatingcompanies.Ahold CSR Report 2007 43


A place to call homeAlbert stores in the Czech Republicare urging customers to help needychildren with the Bertíci project. Albertdonates funds based on the number ofBertíci tokens the customers depositin special boxes in stores. These fundsare divided among around 100institutions, including orphanages,social welfare organizations, andhomes for needy mothers. The projecttakes place in 130 towns in the CzechRepublic and 243 Albert stores acrossthe country are involved. Money raisedis used primarily for education andother programs to support the furtherdevelopment of children in stateinstitutions. It is also used to helpolder children to build careers andindependent lives after they leaveorphanages. In addition, the Bertíciproject supports the “Foundation ofMrs. and Mr. Klaus” – founded by theCzech President and First Lady tohelp children and others in need.In 2007, the Bertíci project raised arecord sum of more than 300,000.Some of our awards“ Building healthier communities isan integral part of the Giant corporatemission. From the stores to thecorporate office, we act upon thatmission every day by working with localcharities and organizations to extendour reach deep into the communityand lend a helping hand.”Carl Schlicker, President and CEO, Giant-Carlisle Walk Team in the United States, National MultipleSclerosis Society (Giant-Carlisle)Miracle Network (Giant-Carlisle)of PR Agencies for Healthy Five (Hypernova)GMA/FPA Merchandising, Sales and Marketing Conference(Stop & Shop/Giant-Landover)Health Foundation (Stop & Shop/Giant-Landover andGiant-Carlisle)VP of Consumer Affairs (Stop & Shop/Giant-Landover)of retail, Retail Knowledge (ICA)44Ahold CSR Report 2007


A long traditionFighting hunger is part of Ahold’scommitment to communityengagement, particularly in the UnitedStates, and with some programsstretching back as much as 30 yearsit’s also a long tradition.The numbers give a sense of the scaleof those efforts:over 1.3 million in cash and food toregional food banks through its GiantBags Hunger campaign, hams andturkey donations around the holidayseason, and daily donations of bakeryitems.over 700,000 annually anddonates 20,000 frozen turkeysto families in need.Hunger program raises 150,000each year. Its Good Neighbor Foodand Funds Drive aims to raise200,000 and 70,000 kilogramsof food.Giant-Landover give thousandsof cans of food each year to“Canstruction”, which uses themto build giant sculptures to attractattention for hunger initiatives andthen donates the cans to localfood banks.“ Giant Food Stores is a leaderin supporting hunger relief effortswith food and financial donations.Its commitment to reducinghunger represents one of themost comprehensive and uniquepartnerships in the CentralPennsylvania Food Bank’s25-year history.”Kendall Hanna, Executive Director, CentralPennsylvania Food BankSupporting the communities we serveOur companies participate directly in community events,sponsor charitable causes and organize fundraising activitiesto meet the needs of their individual markets.Hunger reliefAs food providers, hunger relief initiatives are a natural focusfor our operating companies. All of our U.S. supermarketbusinesses are involved in supporting local food banks as well asAmerica’s Second Harvest, the national network of food banks.For example, Stop & Shop raised 900,000 for local hungerrelief organizations in the company’s 18th annual “Food forFriends” campaign.Youth-focused activitiesAhold USA supports local schools and youth groups. It makesmany smaller donations within each community, sponsoringathletic teams, and after-school activities.Ahold CSR Report 2007 45


Combatting childhoodcancerStop & Shop/Giant-Landoverreached its goal of raising3.8 million in the 2007 TripleWinner Game, a program designedto gather money to care for thosewith childhood cancer and help finda cure. Over the 17 years that Stop& Shop/Giant-Landover hassponsored the Triple Winner Game,employees, customers andsuppliers have raised more than$42 million to directly supportcancer research and care forchildren. The program distributedtickets to customers who madea $1 donation to fight pediatriccancer. Of the 3.8 million raisedin 2007, Stop & Shop raised2.7 million while Giant-Landoveremployees raised 1.1 million.Health in our communitiesIn 2006, Albert Heijn launcheda program to raise money for theWorld Cancer Research Fund andto educate consumers in ourcommunities about the role ofa good diet in reducing the risk ofcancer. During the Fund’s CancerPrevention week, Albert Heijn anda group of five manufacturersdonated to research 5% of thesales of certain products that maycontribute to the prevention ofcancer. In 2007, the programraised more than 100,000 forcancer research in just one week.46Ahold CSR Report 2007


Important to customers meansimportant to usDuring Breast Cancer AwarenessMonth in October 2007, Ahold’soperating companies joined in thefight, helping to raise awareness andmoney to find a cure for the disease.Breast cancer – and the Pink Ribbonsymbol – is an issue with particularresonance for customers in a numberof Ahold’s markets. Stop & Shop/Giant-Landover and Giant-Carlisleteamed up with General Mills to raise100,000 for Susan G. Komen forthe Cure by turning the packagingpink on a number of its brands fora limited time to raise awareness forbreast cancer.ICA turned the label on its organiccarrots pink to raise money for andcreate awareness about the disease.ICA also sold pink ribbons as part ofa fundraising campaign that raised650,000.“ Giant Food Stores has taken aleadership role in supporting thebrave children who are fighting dailyfor good health. We appreciate whatGiant associates have done to helpfund the life-saving work of children’shospitals affiliated with Children’sMiracle Network.”Brian Hazelgren, Chief Development Officer,Children’s Miracle NetworkHealth-related programsMany forms of community involvement by our companies arerooted in Ahold’s commitment to encourage customers to makethe right choices for a healthy lifestyle.In 2006, Albert Heijn launched a program to raise money for theWorld Cancer Research Fund. The company’s supermarketsand a group of five manufacturers donated 100,000.Other health-related programs described in the Healthy Livingchapter in this report, such as Albert and Hypernova’s HealthyFive program, also have significant elements of communityengagement.Many forms of community involvementby our companies are rooted in Ahold’scommitment to encourage customersto make the right choices for a healthylifestyle.Global outreachThe Albert Heijn Foundation and its work in Africa and our AholdSustainable Business Development program, described in thechapter on Sustainable Trade in this report, have dual objectivesin sustainable sourcing and community engagement.Ahold CSR Report 2007 47


Our peopleOur approachAs one of the largest food retailers inthe world, our employees serve millionsof people each day. Their interactionwith our customers is a criticallyimportant part of how customers viewthe experience in our stores. Each Aholdcompany strives to provide a greatworking environment and opportunitiesfor employees to develop, in their currentroles and for the future.Our employees are passionate about being in the food business.As a company, we are committed to offering fulfilling careers,treating staff fairly, and rewarding success. We strive to providea safe working environment where employees are treated withdignity and respect.Across Ahold, we aim to select, develop and retain the very besttalent and create an environment that encourages innovation.We are dedicated to developing people and giving themopportunities to grow.Developing insightOur approach to managing and developing people is basedon our company-wide and operating companies’ core values.These are the principles we all share. Our values expressour commitment to the customer and to creating a workenvironment where people who share a passion for the foodbusiness are able to grow and develop, and find ever better waysof serving the people who shop in our stores. They highlight theimportance of principles such as open communication, workingas a team and acting with integrity.Though many of our human resource policies are set at a locallevel, our core values guide the overall approach, decisionmakingprocesses, and the way we handle challenges –across Ahold.As food retailers, all of our companies face certain challenges.We operate in a labor-intensive, low-margin business, wherecontrolling labor costs is crucial to being competitive. Thesecharacteristics make it even more important for us to provide anattractive working experience, to attract and retain great peoplewho will serve our customers well.Safety first and foremostGiant-Carlisle and Stop & Shop/Giant-Landover’s SafetyDepartments provide employeeswith direction, support andresources to help them work safelyand responsibly. Through activitiesincluding training, specializedprograms, reporting and audits,employees are taught about safetyand develop skills and knowledgethey can apply in their everydaywork processes. A number ofresources are also available on theStop & Shop/Giant-Landoverintranet. The companies’ goal is toensure a safe working environmentfor all of its employees.48Ahold CSR Report 2007


Our core valuesAct customerCustomers are our lifeblood. We make every dayeasier for them, bringing innovative and interestingshopping experiences.Engaged associatesWe value our diversity and are committedto developing our people and giving themopportunities to grow.Integrity alwaysWe act openly and honestly. We say what we meanand we do what we say.One teamWe are greater than the sum of our parts. Wecooperate to leverage our capabilities, scale,strengths and knowledge.Innovative mindsetWe constantly challenge ourselves to find betterways and better results.Passion for our businessWe love being in the food business. We set highstandards and are never satisfied in our searchfor excellence.At the same time, our businesses operate in different countriesand labor markets, all of which have their own attributes andchallenges, and different legal and tax structures. Localknowledge plays a significant role in developing our HumanResources objectives.Our ultimate responsibility is to thecustomers in our stores. We thereforestrive to attract, retain, develop andmotivate the best people at all levels.Each of our operating companies has local programs in placeto train, develop and motivate employees, promote employeehealth and well-being, and to encourage them to actively engagewith our communities. They are committed to consistent andopen communications with employees, through intranets andnewsletters, two-way dialogue, and opportunities to interactwith management.Employee informationAverage number of employees in full-time equivalents 1 2007 2006Stop & Shop/Giant-Landover 58,275 60,313Giant-Carlisle 15,578 14,750Albert Heijn 23,437 22,076Albert/Hypernova 2 14,272 15,023Schuitema 5,022 4,975Corporate Center 483 590Discontinued operations 24,813 46,148Ahold Group 141,880 163,875Ahold Group total employee benefitexpenses (EUR millions) 3 3,742 3,8701Consolidated, excluding joint ventures and associates, including discontinued operations.2Including our operations in Slovakia.3Source: Annual Report 2007. Excluding discontinued operations.Ahold CSR Report 2007 49


Measuring satisfactionAlbert Heijn recognizes the criticalrole of employees in the success ofthe company, and therefore regularlymeasures their satisfaction withthe company and their workingenvironment. In 2007, 15,026employees participated in the annualemployee satisfaction survey,providing a solid base for Albert Heijnto make decisions about what itcan do to keep employees happyand engaged in the business.Sharing best practicesWe coordinate our efforts, where possible, and learn fromeach other. The Human Resources Leadership Team developsglobal policies and facilitates closer coordination among ouroperating companies. The role of this cross-company team isto improve synergies by sharing best practices, working towardsstandardization of certain processes and collectively developingcompany-wide initiatives.ObjectivesAs a company, we have agreed to the following principles:1. Our people will be highly-qualified and customer-oriented.2. Ahold will be a great place to work.3. Our people management practices support the achievementof practical results in the short term while building a talentedworkforce for long-term success.Highly-qualified and customer-oriented employeesOur ultimate responsibility is to the customers in our stores.We therefore strive to attract, retain, develop and motivate thebest people at all levels.Performance and management developmentOur management development practices, at all levels,encourage employees to grow within the company, throughchallenging assignments, targeted training, and rewards basedon performance. We have a group-wide performancemanagement process and system in place to give us astreamlined, transparent approach across the company.“ At Ahold our people are the face of ourbusiness to the customer and one ofour greatest strengths as a company.That’s why we are committed toproviding them with a workingenvironment in which they can growand prosper.”Lawrence Benjamin, Chief Operating Officer Ahold USA50Ahold CSR Report 2007


Checking the pulseIn 2007, Ahold conducted theLeadership Pulse Survey to gaugeunderstanding of the company’sstrategy, obtain views about its corevalues and measure employeeengagement. A total of 80% oftargeted employees respondedto the survey, providing acomprehensive reflection of thegroup’s opinions and a solid basison which to build plans to addressareas employees identified asbeing important.Career progression is based on an employee’s capabilities,performance and behavior consistent with our core values.We focus on developing our people to ensure we have the rightmanagement potential to meet our future needs. The majority ofour vacancies are filled by internal promotion. When necessary,we recruit externally to bring in additional skills, perspectivesand experience.We work to be a company that reflectsand supports the communities we serve:where people are treated fairly and cangrow and have fulfilling careers.We expect that all key employees receive performanceappraisals to support their professional development. For allemployees our goal is to develop skills and ensure that we havethe best processes, tools and innovative solutions in place to runour business in the simplest and most efficient manner possible.TrainingSince most of our employees have direct contact withcustomers, they need to have the right knowledge and skills tomake a visit to our stores an excellent experience. Training is oneof the tools that support our customer focus and our employees’professional growth. Every position in the company has aspecified training offer.Most formal training activities in our companies are handledlocally and focus on store-level jobs, since these employeesmake up the largest group in our employment base. However,we have a computer-based learning management system inplace that provides training opportunities to both store andcorporate employees, Ahold-wide. This learning tool givesemployees access to web-based training and educationalprograms targeted to their positions. It enables us to quickly andefficiently distribute training programs to a wide audience,ensure consistency, and monitor compliance with mandatorytraining. At Giant-Carlisle, for example, over 15,000 employeescompleted web-based training programs in 2007. In 2008, Stop& Shop and Albert Heijn will implement this learning system forstore-level employees.A great place to workWe work to be a company that reflects and supports thecommunities we serve: where people are treated fairly, can growand have fulfilling careers.Measuring employee satisfactionMeasuring employee satisfaction and encouraging dialogueare increasingly important. We have found that customersatisfaction is strongly linked to employee satisfaction andcommitment. Each of our operating companies has formaland informal methods of gauging employee satisfaction.Ahold CSR Report 2007 51


What we shareAhold’s annual Gerrit-Jan Heijnfellowship in 2007 gave a groupof Dutch managers the chance togo to the United States and see thework done by Ahold USA companies.The store and distribution centermanagers from Albert Heijn, Etosand Gall & Gall visited Giant-Carlisleand observed not only the differencesin the way Ahold’s U.S. operatingcompanies work, but also what theyhave in common with their U.S.counterparts.Ahold Leadership Pulse SurveyThe Ahold Leadership Pulse Survey is how we formally measureemployee satisfaction of managers, from director level and up,across the company.In 2007, the study found that managers are highly engaged,even beyond external benchmarks, and value Ahold’s focusedand results-driven culture. The study also showed that thereis room for improvement in how we recognize personalcontributions to our successes, performance in some of our keycapabilities, and how we reduce complexity in our business.We shared the detailed results of the survey with our operatingcompany CEOs and started to put in place plans to address thefeedback given during the survey. We will continue to monitorour progress on these initiatives.“ We strive to provide a satisfyingand great place to work.”John Rishton, CEO AholdOne of our most important challenges forthe future will be to attract, retain andenergize retail talent.Occupational health and safetyOur companies manage occupational health and safety issueslocally. We promote the health and well-being of our employeesin a variety of ways and work to ensure that they have a healthyand safe working environment. All our operating companieshave programs in place to train employees on safety and healthrisk issues. We monitor compliance with local regulationsand address the prevention of accidents and injuries in apro-active way.52Ahold CSR Report 2007


Doing our partIn 2006, at the request of theDutch Minister of Social Affairs,the Albert Heijn Labor AffairsDepartment took part in agovernmental taskforce thatdiscussed equal pay issues forspecific groups of employees, suchas women and ethnic minorities,and developed a series ofrecommendations. Early in 2007the taskforce shared preliminaryrecommendations developed withthe assistance of Albert Heijn andother relevant groups. A reportproduced by the taskforce waspresented later in the year to theMinistry of Social Affairs.We also have specific programs in place at our operatingcompanies to promote employee health, which you can readabout in the Healthy Living section of this report.Practical and innovative people managementOur people management practices will support the company’score values, including the attainment of near time resultsthrough capacity building and long-term strategic resultsthrough the creation of an innovative mindset.Leadership and diversityOne of our most important challenges for the future will be toattract, retain and energize retail talent. In order to continue toimprove the way we leverage the talent in our organization andour knowledge base across both continents, and meet thechallenges of a changing industry, we are putting a focus onleadership and diversity across Ahold.We are working to build a strong team of leaders, who share acommon understanding of the business and a leadership stylealigned with Ahold’s core values. In 2007, we improved ourperformance management and talent management processesto help build the talent pools for the future. We are also providingformal opportunities for management across Ahold to interact,get to know each other better and learn to value the diversityof culture, knowledge and thought across our company. As themarkets we serve become increasingly diverse, fosteringan open attitude to differing perspectives will strengthenour business.Talent and knowledge exchangeWe seek business-driven opportunities to exchange employeesin and across our operations and Corporate Center. Thissupports the exchange of business knowledge and builds apipeline of candidates with international experience suitable tofill top executive positions over the long term. For example, welook for opportunities to bring people from our Corporate Centerto the operating companies on temporary assignments to workon projects in their functional areas.We have made knowledge sharing an integral part of how we dobusiness. In addition, we have several formal programs in placethat bring people together from all over the business.At the executive level, top managment from around the companymeets twice each year for a two-day Global LeadershipConference. Our 2007 conference focused on aligningexecutive management towards our strategic challenges,and the implementation of Ahold’s strategy for sustainableprofitable growth.Ahold CSR Report 2007 53


How we do businessAhold manages business ethics andintegrity at a global level for a numberof reasons. The company’s businessethics are aligned with its core value“Integrity Always”. Ahold must meetgroup-wide legal requirements.Managing this issue globally is in linewith current best practices.Ahold’s approach to CSR is in linewith its internal control practices.The company takes a structuredand consistent approach to internalcontrol by aligning strategy, policies,procedures, instructions, guidelinesand processes, people and technology,for the purpose of identifying,evaluating and managing theuncertainties that the company faces.Ahold’s Code of Professional Conductand Ethics is based on the company’ssix core values. It is intended to helpeach employee understand and followrelevant compliance and integrityrules, and to know when and whereto ask for advice. It applies to Ahold,its operating companies andmanagement-level employees, aswell as to independent third partieshired by or acting for and on behalfof Ahold. It coexists with the codesof conduct at each of Ahold’soperating companies.The Ahold Retail Academy provides a group of approximately30 talented director-level employees the opportunity to cometogether with peers from around Ahold for an intensive oneweekcourse of study, in cooperation with Cornell Universityin the United States. The program’s aim is to increaseunderstanding of the strategic issues and industry trends facingAhold and promote knowledge sharing.Ahold strives to have a workforce thatreflects the customers and communitieswe serve.Local diversity programsAhold strives to have a workforce that reflects the customers andcommunities we serve. In 2007, Albert Heijn was named thebest multicultural employer in the Netherlands. Our companiesalso actively participate in local diversity initiatives.Giant-Carlisle Diversity Representative Deborah Vereen,received a Woman of Excellence Award from the YWCA ofGreater Harrisburg in March of 2007 for her leadership insupporting inclusion in the workplace and ensuring that Giantis engaged with its diverse customer base.The Ahold Management Program is designed, in cooperationwith Nyenrode Business University, to prepare Dutch Aholdemployees in the early managerial phase for the next steps intheir careers. The focus is on developing personal leadershipand broadening retail knowledge, in four three-day modulesthat use a variety of working methods including businesssimulations, project assignment, intervision and coaching.The Gerrit-Jan Heijn fellowship provides an annual exchangeopportunity for employees at the store and distribution centermanagement level.54Ahold CSR Report 2007


A better place to workThrough its Fitpoint corporatemedical services, Ahold offersemployees at Corporate Centerin Amsterdam, the Ahold CoffeeCompany and the headquartersof Albert Heijn, Etos and Gall& Gall a range of medical andhealth services. Fitpoint personnelconduct physicals for employeeswho are 40 years of age or older andcan give advice on healthy living.Employees can also receive travelor flu vaccinations as well as minormedical attention such as bloodpressure checks. Physiotherapistsalso conduct reviews of employees’work stations to ensure they areergonomically set up.Celebrating diversityGiant-Carlisle offers employeesa variety of resources aimed atcelebrating the diversity withinthe company and fostering aprogressive, diverse environmentcentered on mutual respect,dignity, equality, opencommunications, and an emphasison excellence in personalcontributions to company goals.The ALANA Resource Groupfor employees of various ethnicbackgrounds meets regularlyto network and makerecommendations on thedirection of company policiesrelated to diversity.Ahold CSR Report 2007 55


Global Reporting Initiative (GRI) cross-reference tableAhold is adapting its reporting according to the GRI standards.Below is a summary of Ahold’s compliance.AR: Annual Report 2007CSR: Corporate Social Responsibility Report 2007Assurance3.13 Policy and current practice with regard to seekingexternal assurance for the report.CSR: About ourCSR report1 Strategy and Analysis1.1 Statement from the most senior decision-makerof the organization (e.g., CEO, chair, or equivalentsenior position) about the relevance of sustainabilityto the organization and its strategy.CSR: ChiefExecutive’sintroduction2 Organizational Profile2.1 Name of the organization. CSR: Cover,Back cover2.2 Primary brands, products, and/or services. CSR: Our brands2.3 Operational structure of the organization, includingmain divisions, operating companies, subsidiaries,and joint ventures.CSR: Our brands,AR: Corporategovernance.2.4 Location of organization’s headquarters. Back cover2.5 Number of countries where the organizationoperates, and names of countries with either majoroperations or that are specifically relevant to thesustainability issues covered in the report.CSR: Our brands,AR: Business Review2.6 Nature of ownership and legal form. AR: Corporategovernance2.7 Markets served (including geographic breakdown,sectors served, and types of customers/beneficiaries).CSR: Our brands2.8 Scale of the reporting organization, including:number of employees, net sales, totalcapitalization, etc2.9 Significant changes during the reporting periodregarding size, structure, or ownershipCSR: Our people& Ahold at a glance,AR: Financialstatements Note 6AR: Financialstatements Note 52.10 Awards received in the reporting period. CSR: Communityengagement3 Report ParametersReport Profile3.1 Reporting period (e.g., fiscal/calendar year)for information provided.CSR: About ourCSR report3.2 Date of most recent previous report (if any). CSR: About ourCSR report3.3 Reporting cycle (annual, biennial, etc.) CSR: About ourCSR report3.4 Contact point for questions regarding the reportor its contents.CSR: Back coverReport Scope and Boundary3.5 Process for defining report content CSR: About ourCSR report3.6 Boundary of the report (e.g., countries, divisions,subsidiaries, leased facilities, joint ventures,suppliers).3.7 State any specific limitations on the scope orboundary of the report3.8 Basis for reporting on joint ventures, subsidiaries,leased facilities, outsourced operations, and otherentities that can significantly affect comparabilityfrom period to period and/or between organizations.3.10 Explanation of the effect of any re-statements ofinformation provided in earlier reports, and thereasons for such re-statement (e.g., mergers/acquisitions, change of base years/periods, natureof business, measurement methods).3.11 Significant changes from previous reporting periodsin the scope, boundary, or measurement methodsapplied in the report.GRI Content Index3.12 Table identifying the location of the StandardDisclosures in the report.CSR: About our CSRreport, Our brandsCSR: About ourCSR reportCSR: About ourCSR reportCSR: About ourCSR reportCSR: About ourCSR reportCSR: GRI crossreferencetable4 Governance, Commitments & EngagementGovernance4.1 Governance structure of the organization, includingcommittees under the highest governance bodyresponsible for specific tasks, such as settingstrategy or organizational oversight.4.2 Indicate whether the Chair of the highestgovernance body is also an executive officer4.3 For organizations that have a unitary boardstructure, state the number of members of thehighest governance body that are independentand/or non-executive members.4.4 Mechanisms for shareholders and employees toprovide recommendations or direction to the highestgovernance body.4.5 Linkage between compensation for members ofthe highest governance body, senior managers,and executives (including departure arrangements),and the organization’s performance (includingsocial and environmental performance).4.6 Processes in place for the highest governancebody to ensure conflicts of interest are avoided.4.8 Internally developed statements of mission orvalues, codes of conduct, and principles relevant toeconomic, environmental, and social performanceand the status of their implementation.4.9 Procedures of the highest governance body foroverseeing the organization’s identification andmanagement of economic, environmental, andsocial performance, including relevant risksand opportunities, and adherence or compliancewith internationally agreed standards, codes ofconduct, and principles.4.10 Processes for evaluating the highest governancebody’s own performance, particularly with respect toeconomic, environmental, and social performance.Commitments to External Initiatives4.11 Explanation of whether and how the precautionaryapproach or principle is addressed by theorganization.4.12 Externally developed economic, environmental,and social charters, principles, or other initiativesto which the organization subscribes or endorses.4.13 Memberships in associations (such as industryassociations) and/or national/international advocacyorganizations.Stakeholder Engagement4.14 List of stakeholder groups engaged by theorganization.4.15 Basis for identification and selection of stakeholderswith whom to engage.4.16 Approaches to stakeholder engagement, includingfrequency of engagement by type and bystakeholder group.4.17 Key topics and concerns that have been raisedthrough stakeholder engagement, and how theorganization has responded to those key topicsand concerns, including through its reporting.AR: CorporategovernanceAR: CorporategovernanceNot applicableAR: CorporategovernanceAR: RemunerationAR: CorporategovernanceAhold’s Code ofConduct, CSR: Ourapproach to CSRAR: RiskManagement andinternal controlAR: SupervisoryBoard reportCSR: SustainabletradeCSR: SustainabletradeCSR: About ourCSR reportCSR: About ourCSR reportCSR: Our approachto CSRCSR: Our approachto CSRCSR: Our approachto CSR56Ahold CSR Report 2007


EconomicEconomic PerformanceEC1 Economic value generated and distributed,including revenues, operating costs, employeecompensation, donations and other communityinvestments, retained earnings, and paymentsto capital providers and governments.Market PresenceEC6 Policy, practices, and proportion of spendingon locally-based suppliers at significant locationsof operation.Indirect Economic ImpactsEC8 Development and impact of infrastructureinvestments and services provided primarily forpublic benefit through commercial, in-kind,or pro bono engagement.CSR: Communityengagement,Financial highlights,AR: FinancialstatementsCSR: SustainabletradeCSR: SustainabletradeEnvironmentalEnergyEN3 Direct energy consumption by primary energy CSR: Climate actionsource.EN4 Indirect energy consumption by primary source. CSR: Climate actionEN6 Initiatives to provide energy-efficient or renewableenergy based products and services, and reductionsin energy requirements as a result of theseinitiatives.CSR: Climate actionWaterEN8 Total water withdrawal by source. CSR: Climate actionEmissions, Effluents, and WasteEN16 Total direct and indirect greenhouse gas emissions CSR: Climate actionby weight.EN18 Initiatives to reduce greenhouse gas emissions and CSR: Climate actionreductions achieved.EN22 Total weight of waste by type and disposal method. CSR: Climate actionTransportEN29 Significant environmental impacts of transportingproducts and other goods and materials used forthe organization’s operations, and transportingmembers of the workforce.CSR: Climate actionSocial Performance: Human RightsFreedom of Association and Collective BargainingHR5 Operations identified in which the right to exercisefreedom of association and collective bargainingmay be at significant risk, and actions taken tosupport these rights.Child LaborHR6 Operations identified as having significant riskfor incidents of child labor, and measures takento contribute to the elimination of child labor.Forced and Compulsory LaborHR7 Operations identified as having significant riskfor incidents of forced or compulsory labor, andmeasures to contribute to the elimination of forcedor compulsory labor.Public PolicySO5 Public policy positions and participation in publicpolicy development and lobbying.Social Performance: Product ResponsibilityCustomer Health and SafetyPR1 Life cycle stages in which health and safetyimpacts of products and services are assessedfor improvement, and percentage of significantproducts and services categories subject tosuch procedures.Products and Service LabelingPR3 Type of product and service information requiredby procedures, and percentage of significantproducts and services subject to such informationrequirements.Other: Non-GRI Ahold specific informationAssortmentCorporate brand natural and organic productsCSR: SustainabletradeCSR: SustainabletradeCSR: SustainabletradeCSR: About ourCSR reportCSR: SustainabletradeCSR: SustainabletradeCSR: Healthy livingSocial Performance: Labor Practices & Decent WorkEmploymentLA1Total workforce by employment type, employmentcontract, and region.Diversity and Equal OpportunityLA13Composition of governance bodies and breakdownof employees per category according to gender,age group, minority group membership, and otherindicators of diversity.CSR: Our peopleAR: Board andmanagement,Supervisory BoardreportAhold CSR Report 2007 57


GlossaryASBDAhold Sustainable Business Development.BSCIBusiness Social Complianace Initiative.CFCsChlorofluorocarbons – stable chemical products containingchlorine and fluoride used as refrigerants (freon) or propellantsin aerosol products.CIES – The Food Business ForumInternational food retail association.C0 2Carbon dioxide.CSRCorporate social responsibility.EPAEnvironmental Protection Agency.EuroCommerceEuropean commercial trade association.ERRTEuropean Retail Round Table.FairtradeFairtrade contributes to sustainable development by offeringoptimal trade conditions to disadvantaged producers (essentiallyin the countries of the southern hemisphere) and by protectingtheir rights.FMIFood Marketing Institute.FSCForest Stewardship Council: the FSC label guarantees consumersthat their wood products come from sustainably-managed forests.FTEFull Time Equivalent.GFSIGlobal Food Safety Initiative.GRIGlobal Reporting Initiative – an international multi-stakeholderinitiative that provides an international standard for environmentaland social reporting and defines guidelines and key performanceindicators.HCFCsHydrochlorofluorocarbons – chemical products containingchlorine and fluoride as well as hydrogen, which makes them lessstable and thus less harmful to the ozone layer than CFCs.HFCsHydrofluorocarbons – chemical products containing fluoride andhydrogen, but not chlorine or bromide, and thus not harmful tothe ozone layer.ILOInternational Labour Organization.IPCCIntergovernmental Panel on Climate Change.58LEED-EBLeadership in Energy and Environmental Design. An acceptedbenchmark for the design, construction and operations of highperformance green buildings.MPSMilieuproject Sierteelt – a Dutch standard for environmentallysound forms of ornamental plant cultivation.MSCMarine Stewardship Council – independent non-profit globalorganization created in order to find a solution to the problemof overfishing that has developed an international standardfor sustainable, well-managed fishing.NEAqNew England Aquarium.NGONon-governmental organization.NANot Available.NegawattA unit of energy saved.Organic productAgricultural product produced by organic farming methods andcertified as such by an independent organization.PBHProduce for Better Health Foundation.RSPORoundtable on Sustainable Palm Oil – a global, multipartyinitiative concerned with the production of sustainable palm oil.RTRSRound Table on Responsible Soy – a global, multiparty initiativeconcerned with the production of sustainable soy.SIKSwedish Institute for Food and Biotechnology.StakeholdersAll of the various groups that participate in the economic lifeof the company (employees, customers, suppliers andshareholders), who monitor the company (unions, NGOs)or who are more or less directly influenced by it (civil society, localgovernment and more).Sustainable development“Development that meets the needs of the present withoutcompromising the ability of future generations to meet their ownneeds”. Bruntland Commission, “Our Common Future”, 1987.UNUnited Nations.USGBCUS Green Building Council.WHOWorld Health Organization.WMBEWomen and Minority Business Enterprise.WWFThe World Wide Fund for Nature.Ahold CSR Report 2007


About our CSR reportThe purpose of Koninklijke Ahold N.V.’s (“Ahold”) 2007 CSRReport (“this CSR Report”) is to provide stakeholders with a fairand balanced picture of Ahold’s corporate social responsibilitystrategy, practices and results for the period from January 1,2006 through December 31, 2007.The preparation of thisCSR Report was overseen by the Ahold CSR CoordinatingCommittee.Following the publication of the Interim Corporate SocialResponsibility Report 2005 published in 2006, this CSR reportis the sixth CSR report published by Ahold. Ahold strives tofollow the guidelines of the Global Reporting Initiative G3(C level). From this CSR Report onwards, Ahold has committeditself to publish a CSR report annually, in conjunction with itsAnnual Report.Ahold’s reporting system permits the collection of qualitative andquantitative information from the various countries and retailbanners and reporting on best practices. This CSR report coversAhold’s operating companies, including ICA. It does not coverSchuitema, Peapod, Etos, Gall & Gall, Albert.nl, Albert Heijnfranchise stores and our operations in Slovakia.At the quantitative level, assigned content owners at eachoperating company are responsible for coordinating theCSR reporting of those companies. They ensure that thoseresponsible for reporting in accordance with various indicatorsare familiar with the procedures, definitions and guidelines.In addition, internal reviews on reported data are performed.These reviews are focused on both the reported data as well asthe reporting process.The scope of the reported indicators is primarily based on theexisting data gathering procedures. Ahold aims to expand thescope in the future. Compared to the Interim Corporate SocialResponsibility Report 2005, U.S. Foodservice, Albert/Hypernova in Poland and Tops are out of scope due to thedivestment of these operating companies.This CSR Report presents data on Corporate brand natural andorganic products, refrigerants installed in stores, dieselconsumption and CO2 emissions from transport betweenwarehouses and stores, electricity consumption in warehousesand stores, water consumption, waste and donations. We arecurrently working to augment our corporate social responsibilityreporting abilities and are developing systems to enhance ourcapacity to provide consistent group-wide information in futurereports. Data sourced from the Ahold Annual Report 2007 andincluded in that report as audited or unaudited information, arereferred in this CSR Report as Source: Ahold Annual Report2007. The other data in this CSR Report has not been auditedand, in some cases, is based on extrapolations or estimates.Dialogue with decision-makersAhold is a consumer-oriented companywith a focus on supporting customersin making healthy, inspired andresponsible choices. We engage intransparent and constructive dialoguewith decision-makers, NGOs and otherplayers in the value chain. We canbetter react and anticipate consumerexpectations by creating a dialoguewith them and by sharing our expertisewith public policy makers. Publicauthorities will likely increaseregulatory requirements as a resultof economic, socio-demographicand ecological developments. It isimportant for Ahold to anticipate thesechanges. An effective interdependencybetween public authorities, businessand consumers can help to inform andchange consumer behavior and reducethe need for government intervention.Ahold is a committed member of themain trade associations in thecountries where it operates.Membership in associations:Initiative (BSCI)(ECR)(ERRT)Agricultural Practice (GLOBALGAP)(RTRS)Palm Oil (RSPO)Ahold CSR Report 2007 59


Visit us onlineFor more information about Aholdand our businesses, visit our website.There you will find press releases,reports, more on our Corporate SocialResponsibility programs and otherimportant stakeholder information.www.ahold.comNoticeThis CSR Report contains forward-looking statements, which do not refer to historical facts but referto expectations based on management’s current views and assumptions and involve known and unknownrisks and uncertainties that could cause actual results, performance or events to differ materially from thoseincluded in such statements. Many of these risks and uncertainties relate to factors that are beyond Ahold’sability to control or estimate precisely, including but not limited to, Ahold’s ability to augment its corporatesocial responsibility reporting abilities and to develop systems to enhance its capacity to provide consistentgroup-wide information in future reports, Ahold’s ability to implement and complete successfully itsplans and strategies and to meet its targets, the benefits from Ahold’s plans and strategies being less thanthose anticipated, the effect of general economic or political conditions, the actions of Ahold’s shareholders,competitors, customers, and other third parties, increases or changes in competition, Ahold’s abilityto retain and attract personnel who are integral to the success of the business, Ahold’s IT outsourcingand information security, Ahold’s ability to address corporate social responsibility issues, fluctuationsin exchange rates or interest rates, Ahold’s liquidity needs exceeding expected levels, compliance andregulatory risks and other factors discussed in Ahold’s Annual Report 2007, Risk management and internal60control, Risk factors and in Ahold’s other public filings. Accordingly, this CSR Report is subject to this noticeand the About this report section in this CSR Report and qualified by the assumptions, qualifications andthe risk factors detailed in Ahold’s publicly filed reports. Readers are cautioned not to place undue relianceon these forward-looking statements, which speak only as of the date of this CSR Report. Ahold doesnot assume any obligation to update any public information or forward-looking statement in this CSRReport to reflect events or circumstances after the date of this CSR Report, except as may be required byapplicable laws. Outside the Netherlands, Ahold presents itself under the name of “Royal Ahold” or simply“Ahold”. For the reader’s convenience, “Ahold or “the Company” is also used throughout this CSR Report.The Company’s registered name is “Koninklijke Ahold N.V.”The main corporate social responsibility principles as discussed in this CSR Report imply obligationsto perform to the best of one’s ability and do not imply obligations to guarantee a certain result.Copyright © 1998-2008 Koninklijke Ahold N.V. All rights reserved. Certain products and services namedin this report are trademarks owned by Koninklijke Ahold N.V., its subsidiaries, joint ventures or associates.Ahold CSR Report 2007


Ahold at a glanceFinancial highlightsNet sales(Euros in millions)Operating income(Euros in millions)26,29826,89427,82628,1521,0631,1348841722004¹2005¹2006¹20072004¹2005¹ , ²2006¹20071Comparative figures have been adjusted from amounts previously reported to reflect the effectof discontinued operations1Comparative figures have been adjusted from amounts previously reported to reflect the effectof discontinued operations2Includes the settlement of the securities class action (EUR 803).Net sales growth at constant exchange rates (%)4.2% 1.8% 3.9% 6.1%Our brandsIn the United StatesStop & Shop/Giant-LandoverIn EuropeGiant-Carlisle Albert Heijn Albert/Hypernova Unconsolidatedjoint venturesStop & ShopStop & Shop operates food retailstores in Massachusetts, Connecticut,Rhode Island, New Jersey, Maine,New York and New Hampshire.Formats: supermarkets and superstoresGiant Food StoresGiant operates food retail storesin Pennsylvania, Maryland, Virginiaand West Virginia.Formats: supermarkets and superstoresAlbert Heijn SupermarketsAlbert Heijn operates food retailstores in the Netherlands.Formats: supermarkets andconvenience storesAlbertAlbert operates supermarketsin the Czech Republic and Slovakia.ICA ABICA is an integrated food retail andwholesale group, operating in Sweden,Norway and the Baltic states.Formats: supermarkets, neighborhoodstores, hypermarkets and discount stores.Giant FoodGiant operates food retail storesin Maryland, Virginia, Delawareand the District of Columbia.Formats: supermarkets and superstoresAlbert.nlAlbert.nl provides internet-based homeshopping and grocery delivery in theNetherlands as an integrated serviceof Albert Heijn.HypernovaHypernova operates stores inthe Czech Republic and Slovakia.Formats: hypermarkets and/or compacthypermarketsJMRPingo Doce and Feira Nova operatefood retail stores in Portugal. Theyare both part of Jerónimo MartinsRetail (JMR).Formats: supermarkets and hypermarketsSchuitemaPeapodPeapod.com provides internet-basedhome shopping and grocery deliveryas an integrated element of Stop&%Shop/Giant-Landover, along withservice to the metropolitan areas ofChicago, Illinois and Milwaukee,Wisconsin.Gall & GallGall & Gall operates wine and liquorstores in the Netherlands.EtosEtos operates stores in theNetherlands specializing in healthand beauty care and, in certainstores, prescription drugs.C1000C1000 operates supermarketsin the Netherlands. C1000 is partof Schuitema, a retail and wholesalecompany and a consolidatedsubsidiary of Ahold.Ahold CSR Report 2007 61


Cert no. SGS-COC-2531Ahold Corporate CenterPiet Heinkade 167–1731019 GM AmsterdamThe Netherlandswww.ahold.comAhold Corporate Social ResponsibilityTelephone +31 (0)20 509 5100Fax +31 (0)20 509 5110Email: communications@ahold.comZaandam Trade Register No 35000363This Corporate SocialResponsibility report is printedon FSC-certified paper.Designed and producedby greymatter williams and phoa.Printed by Hollandia Printing,Heerhugowaard, the Netherlands.

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