Ahold Delhaize publishes its second annual Green Bond Allocation and Impact Report which provides details on the use of proceeds and related environmental impact of the Green Bond issued in March 2024.
The implementation of Ahold Delhaize’s transition plan to reduce emissions requires significant investments in clean, low-emissions and zero-emissions technologies. Part of the proceeds of its green finance instruments are used to invest in the actions mentioned in this transition plan, according to a press release.
2024 Allocation and Impact
Ahold Delhaize raised €500 million in March 2024 by issuing its second Green Bond under its Green Finance Framework. The largest portion of the Green Bond proceeds were allocated to the Green Buildings and Energy Efficiency categories. Throughout 2024, the bond proceeds have allowed to add 30 new buildings in Europe with EPC Label A or higher. Dutch local brand Albert Heijn also converted 20 stores to gas-free stores, increasing its share of gas-free supermarkets to 97%.
The retailer is implementing energy efficiency measures across all its local brands. Examples include the installation of heat pump systems and other heat recovery technologies, installation and replacement of air-conditioning systems, LED lighting and energy-efficient doors on refrigerated cases in stores and distribution centers. Additionally, further progress was made in the replacement of refrigerants with lower Global Warming Potential alternatives and in minimizing refrigeration leakages.
Green Project Portfolio
On December 29th, 2024, Ahold Delhaize had a total eligible Green project portfolio of €864 million, to which proceeds of two Green Bonds issued in 2023 and 2024 were allocated. 100% of the portfolio was allocated to two Green Bonds issued in 2023 and 2024. The net proceeds of the €500 million bond issued in April 2023 were fully allocated with the eligible expenditures of 2022 and 2023. Out of the net proceeds of the €500 million bond issued in March 2024, €80 million, or 16%, were allocated to refinance existing projects with expenditures in 2023, and €284 million, or 57% of the portfolio, were allocated to finance new projects with expenditures in 2024.
Sustainalytics, an independent provider of ESG research and ratings, delivered a second-party opinion on the Framework. The bonds issued in 2023 carry a coupon of 3.50% and mature on April 4th, 2028. The bonds issued in 2024 carry a coupon of 3.375% and mature on March 11th, 2031. The subsequent Green Bond Allocation and Impact Report, and the second-party opinion, are available for viewing on Ahold Delhaize's website. KPMG Accountants N.V. provided Limited Assurance on the Allocation Report.
