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Climate NGOs to cite Ahold to Dutch regulator over reporting on plastics -Breaking

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© Reuters. FILE PHOTO – The Ahold Delhaize logo can be seen in the headquarters of Ahold Delhaize, Zaandam (Netherlands), August 23, 2018. REUTERS/Evaplevier

By Anthony Deutsch

AMSTERDAM, (Reuters) – Two environmental organizations will file a complaint to Ahold Delhaize before the Dutch market regulator on Thursday. They claim that the supermarket chain fails to comply with EU reporting guidelines by failing to disclose how many plastic containers it uses.

ClientEarth (an environmental charity) and Plastic Soup Foundation (a Dutch NGO), said that the Dutch first complaint of this type will be filed with the Authority for the Financial Markets.

Ahold has “failed to disclose key information regarding its use of plastics” and failed to report any risk related to plastic to investors in violation of its legal requirements, according to a statement they sent to Reuters.

Ahold responded to Reuters by telling Reuters that it reported on environment matters to the Ellen MacArthur Foundation in UK, and is making steps to reduce plastic usage at its stores. It also stated that “will work towards disclosing quantitative advances on plastics, packaging, and other related issues in its annual reports.”

With more than 7,000 stores in 10 countries, Ahold Delhaize is a leading supermarket operator in the Benelux and U.S. east coast, where it owns the Stop & Shop, Food Lion, Giant and Hannaford chains.

Large companies are required to disclose material information about environmental problems that could pose financial risks to their businesses under the EU’s 1995 Non-Financial Reporting Directive.

AFM released a statement to Reuters stating that since 2013, it encourages companies to report non-financial matters to Reuters. It also oversees compliance with EU directives.

It stated that public companies employing more than 500 people “have been required to report non-financial matters in management reports since 2017 as part of annual reporting.”

AFM claimed it has the ability to order a company’s public correction of a “material defect” in reporting. However, AFM does not have power to impose any fines.

The United Nations Environment Programme estimates that around 300 million tons annually of plastic trash are generated each year. That’s almost the same amount as the human body.

Ahold must be transparent with its plastic usage, as more companies are asked to do more for the environment. This is in violation of EU law. “Yet Ahold Dehaize has not made this disclosure to investors.

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