Ahold Policy Sustainable Seafood

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1 Ahold Policy Sustainable Seafood Aldin Hilbrands Senior Manager Product Safety & Integrity Seafood Summit, Barcelona, January 27 30, 2008

2 History of Ahold 1887 Albert Heijn opens first store 1955 First supermarket opens 1977 Expansion into U.S Expansion into Asia 1996 Expansion into Latin America 2000 Acquisition of U.S. Foodservice 2003 US$ 1bn accounting scandal 2003 Road to Recovery program launched 2004 Restructuring and divestments 2005 US Class Action Settlement agreed 2006 New retail strategy launched 2007 Divestment of U.S. Foodservice & Polish operations

3 Ahold Network United States Europe Giant-Carlisle, 143 stores, $3.8 bn Stop & Shop/ Giant-Landover, 573 stores, $16.4 bn The Netherlands, 2,173 stores, 10.4 bn Czech & Slovakia, 319 stores, 1.4 bn Portugal, 240 stores, 1.9 bn Sweden. Norway & the Baltic states, 2,259 stores, 7.3 bn

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5 CSR at Ahold Customers & Society Healthy Living Sustainable Trade Climate Action Community Engagement Our People

6 Product Pyramid Product Buying Decision Hygiene Factors: Compliance Broader societal and community issues: Climate Action and Community Engagement Product Quality (Healthy Living) & Sustainable Trade Product Safety & Availability Choice of Store / Brand: Differentiation With increased compliance consumer is assured

7 Sustainable trade Shared ambitions We seek to build mutually beneficial, lasting relationships based on common values, to create attractive assortments in our stores. We work closely with suppliers who share our conviction that economic success should be balanced with social and environmental responsibility: Product safety Providing safe products to customers in all our markets is non-negotiable. It is the foundation for safeguarding our customers health and well-being. Responsible sourcing we take steps to ensure that our suppliers respect the rights of their workers and provide safe working conditions while at the same time preserving the environment. Buying close to home buying local can be good for the environment and help local communities and small and local businesses to develop.

8 Ahold Sustainable Seafood Initiative An Ahold Corporate Executive Board board-driven initiative putting seafood sustainability and CSR at the heart of Ahold and its companies The overall programme of Ahold companies policies and actions regarding seafood sustainability initiated and driven by the Ahold Sustainable Seafood Group Underpinned by 2 key elements: - Rules for Sustainable Seafood - Supplier Audit Tool

9 Ahold Sustainable Seafood Group The Group is responsible for initiating and driving the overall programme of Ahold companies actions and policies regarding seafood sustainability A senior cross-disciplinary team of seafood sustainability experts Supported and advised by external (scientific) experts: - WWF and New England Aquarium

10 Definition Sustainable Seafood Sustainability can be defined as the resultant of People (social), Planet (environmental) and Profit (economic) considerations. Profit People Profit Seeking Corporate Social Responsibility Planet Community Engagement

11 Goals Promote the best Promote sales of seafood that is produced sustainable Avoid the worst Avoid sales of seafood that is produced unsustainable Support the rest Actively work with the industry, NGOs and government to monitor and improve performance

12 Rules for Sustainable Seafood Legality Never knowingly buy illegal seafood Objective Assessment Purchase and sales (or prohibition of sales) decisions are based on objective assessment of triple P criteria Measurable Improvement Suppliers are selected and monitored based on demonstration of continuous improvement in the sustainability of their operations Labelling Seafood will be labelled with appropriate information to enable our customers to make informed buying decisions Promotion Sustainable seafood will be actively promoted

13 Rules for Sustainable Seafood (cont d) Cooperation We are involved in activities with other stakeholders involved to improve the sustainability of the seafood produced Research Scientific research linked to the sustainable production of seafood is needed and supported Traceability To ensure product integrity, the implementation of traceability systems is of crucial importance Ethics We will not do business with suppliers who cannot fulfil their ethical and/or sustainability responsibilities Communication Inform stakeholders about efforts made to improve seafood sustainability

14 Triple P supplier audit tool Two tools (wild captured and farmed) to collect information about fisheries and aquaculture operations so that the risk factors can be systematically assessed Science and factually based to give objective outputs Produces a Low, Medium or High risk assessment Allows us to identify and focus on areas of concern in the supply chain and gives clear direction for corrective actions Sourcing and sales strategies are shaped according to the outcomes of the assessments Validates sourcing and sales decisions and underpins the Ahold Sustainable Seafood Initiative

15 Example: New England Aquarium Fisheries Aquaculture Decision points Stock health DP1 Env. Impacts Outputs Fisheries management DP2 Env. Impacts Inputs Bycatch of threatened species DP3 Fish Health Bycatch of other species DP4 Impacts on other species Habitat impacts DP5 Energy Concerns

16 Decision ranking tool Environmental Impacts - Outputs Environmental Impacts Inputs Fish Health Impacts on Other Species Energy Concerns

17 Ahold s involvement Chair GlobalGAP Sector Committee Aquaculture FAO Guidelines for Aquaculture Certification WWF Aquaculture Dialogues Advisory Committee of the Animal Welfare Quality research project Management Committee of the Animal Welfare Stakeholders Platform

18 Trying to make a difference One day a father was walking along the beach with his son. His son was busy at a distance. As he got closer, he realized that his son was picking something up and gently throwing it into the ocean. Approaching his son, he asked: What are you doing? The son replied, throwing starfish in the ocean: The sun is up and the tide is going out. If I don t throw them in, they ll die. The father said: Don t you realize there are miles and miles of beach and thousands of starfish? You can t possibly make a difference!. After listening politely, the son bent down, picked up another starfish, and threw it into the surf. Then, smiling at his father, he said: I made a difference for that one!