Second-Party Opinion Download

Sustainalytics is of the opinion that the Ahold Delhaize Sustainability-Linked Bond Framework aligns with the Sustainability-Linked Bond Principles 2023. This assessment is based on the following:

Selection of Key Performance Indicators (KPIs)

Ahold Delhaize SustainabilityLinked Bond Framework defines three KPIs (see Table 1). Sustainalytics considers KPI 1, 2a and 2b to be very strong, and KPI 3 to be adequate based on their materiality, relevance, scope of applicability and adequacy to external benchmarking.

Calibration of Sustainability Performance Targets (SPTs)

Sustainalytics considers the SPTs to be aligned with Ahold Delhaize’s sustainability strategy. Sustainalytics further considers SPTs 1a, 1b, 2a and 2b to be highly ambitious, and SPTs 3a and 3b to be moderately ambitious based on past performance, peer performance and science-based trajectories, as applicable.

Bond Characteristics

Ahold Delhaize will link the financial characteristics of its sustainability-linked bond to achievement of the SPTs selected. The financial characteristics may include a potential coupon adjustment, such as a coupon step-up.

Reporting

Ahold Delhaize commits to report on its progress on the KPIs on an annual basis and intends to include the relevant figures in its Annual Report, published on Ahold Delhaize’s website. Ahold Delhaize may also disclose relevant information that could affect the KPIs. The reporting commitments are aligned with the Sustainability-Linked Bond Principles 2023.

Verification

Ahold Delhaize commits to have an external limited assurance conducted against each SPT for each KPI at least once a year and publish it in its Annual Report which will be available on its website.