Turning Net Zero Commitments into Action: Insights from Ahold Delhaize & Kerry Group

Making the Case for Net Zero: risk and opportunity

Net zero targets are no longer optional in the food industry – they’re essential for managing risk and staying competitive.

Companies that fail to act face supply chain disruptions, increasing regulatory pressure, and investor scrutiny, while those that take proactive steps strengthen customer relationships and future-proof their operations. João noted that businesses stuck in “wait-and-see” mode often struggle when new regulations or customer demands force rapid, unplanned transitions.

For Kerry Group, aligning with customer expectations was a critical driver in making the case for net zero. As a major solutions provider, their ability to help partners achieve sustainability commitments reinforced the business case. “The science told us we had to be more ambitious. We saw climate change as both a business risk and an opportunity. Our customers expect us to help them meet their own sustainability goals,” said Pádraig.

At Ahold Delhaize, the focus was on integrating sustainability into long-term business strategy. “Setting the net zero target was the easiest part. The real challenge is embedding it into operations, aligning teams, and collecting reliable data,” shared Grant. With Scope 3 emissions accounting for as much as 80–90% of the food industry’s total carbon impact, it’s not enough to set a target, companies must have a clear transition plan. Yet, despite the growing number of net zero commitments, only 31% of companies have published one.

Scope 3 emissions and supplier engagement

For food companies, Scope 3 emissions - those generated across the supply chain - often account for the vast majority of their carbon footprint. Tackling these emissions requires more than just requesting data from suppliers; it demands collaboration and actionable solutions.

Rather than waiting for perfect data, companies must take an iterative approach.

Ahold Delhaize has adopted a hands-on strategy, actively working with suppliers to co-develop decarbonization initiatives. “Scope 3 emissions are the hardest. We’ve had to rethink supplier engagement. Instead of just requesting data, we need to work with them on solutions,” said Grant.

This shift is critical, as many suppliers experience survey fatigue, inundated with sustainability data requests from multiple buyers without clear guidance on how to reduce emissions. By fostering collaboration instead of compliance-driven reporting, Ahold Delhaize has seen stronger supplier engagement and meaningful progress.

Kerry Group has also taken a proactive stance, working directly with farmers and ingredient suppliers to implement regenerative agriculture practices that reduce emissions at the source. 

“A big lesson: Just start. Data won’t be perfect, and methodologies will evolve, but waiting won’t help. Piloting projects and learning as you go is crucial,” said Pádraig.

Both companies recognize that achieving Scope 3 reductions isn’t just about measurement, it’s about providing suppliers with the support and incentives needed to drive real change.

Tying net zero to business incentives

A key to success in achieving net zero goals is ensuring that sustainability efforts are not siloed but instead embedded within core business processes. One effective strategy is linking sustainability performance to executive compensation.

“We’ve tied net zero roadmaps to financial planning cycles and executive bonuses. This ensures accountability. When carbon reductions are tied to compensation, leaders pay attention,” explained Grant.

By making net zero performance a financial priority, Ahold Delhaize has created stronger internal motivation for meeting sustainability targets. Transparency also plays a crucial role.

João noted that “More companies are achieving reductions, but transparency is key. Only 31% of companies with net zero targets have published a transition plan. Having a roadmap is essential.”

A well-structured transition plan helps stakeholders – including investors, customers, and internal teams – track progress and maintain confidence in the company’s sustainability strategy.

A continuous process of improvement

“Net zero isn’t about a single initiative, it’s a continuous process of improvement, engagement, and collaboration across the supply chain,” shared João.

Achieving net zero isn’t a one-time project, it’s a long-term transformation. Companies must be prepared for the evolving nature of carbon accounting and regulatory landscapes. Ensuring that leadership, finance teams, and procurement understand these shifts can prevent setbacks and maintain commitment to long-term goals.

Grant added, “Don’t underestimate the internal effort required. Carbon accounting is not like financial accounting – your numbers will evolve as methodologies improve. Communicating that internally is crucial.” Sustainability is a team sport.

Partnerships are key to success

Whether engaging suppliers upstream or aligning with customer expectations downstream, companies cannot achieve net zero alone. One of the strongest takeaways from the discussion was the importance of collaboration. 

“Success lies in partnerships. Whether upstream or downstream, working together on incentives and solutions is how we move forward,” shared Pádraig.

By taking a collaborative approach, companies can overcome the challenges of supply chain complexity and make meaningful progress toward net zero. And by viewing it as both a risk and an opportunity, embedding it into business operations, tying it to financial incentives, and prioritizing supplier collaboration, companies can move from commitment to action.

As the discussion in this webinar highlighted, the work is complex, but the path forward is clear: act now, refine as you go, and leverage partnerships to accelerate impact.

Watch the full recording