w iiffl Value chain continued r-r £3 Material topics along our value chain Partnering to source sustainably from the Greek seas A - Overview Business review Governance Financials Investors Ahold Delhaize Annual Report 2016 o r •i For more detail, see Material sustainability topics. Some of the material challenges associated with the production of food are product safety, working conditions, human rights, food waste, climate change and transparency. Ahold Delhaize identified these as material areas to address because of their importance to us as a company, but also to our customers, the industry and our wider group of stakeholders. At home, our customers use the products they buy from us. Consumption impacts the health and well-being of our customers, as well the broader communities we serve. Relevant material topics at this phase of the value chain include food waste, healthy lifestyles and product safety and quality. Value chains are complex and they are different for every product we sell. In the case of food, the first step in the chain takes place on the farms where the raw materials are grown. During the next step, these raw materials are turned into the products we sell. Sometimes we simply wash and package the product, and sometimes it takes more than one step and multiple ingredients. Within our own direct distribution and retail operations we bring products together, move them efficiently, and sell them to our customers. Relevant material topics at this stage are: product safety and quality; an affordable and healthy assortment; compliance and regulation; clean and safe stores; associate development and diversity; and the management of food waste within our operations. At the same time, a second collaboration with WWF Greece and others is driving toward more responsible aquaculture. Through adapting the standards of the Aquaculture Stewardship Council (ASC) to the requirements of Mediterranean species, the project aims to reach ASC certification for three farms supplying AB with sea bream and sea bass. Case study AB Vassilopoulos, in collaboration with WWF Greece, fishermen, seafood suppliers, scientists, and other partners since 2011, is creating sustainable options for wild caught and farmed fish from the Mediterranean Sea. The multi-year Fishery Improvement Project for the Kavala sardine fleet is well on its way to bringing the local fleet to the sustainability level of the Marine Stewardship Council standards, and ultimately to certification. In the end, AB will be able to provide customers with traceable and sustainable seafood, while supporting the long-term viability of the fish stocks and local fishing economy.

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