Mondelēz International Advances Sustainable Palm Oil Sourcing with Enhanced Traceability
September 03 2020 - 4:00PM
Mondelēz International, Inc. (NASDAQ:MDLZ) today announced
significant progress in advancing requirements for traceable,
forest-monitored palm oil and confirms strong progress against
sustainable sourcing goals.
The new requirements include traceability to
plantation and satellite monitoring covering all palm oil
concessions* supplying mills attributed to the company, against the
deforestation criteria set out in its Palm Oil Action Plan. All
mills must be identified on Global Forest Watch, with no active
grievances against concessions in their direct supply, or operated
by the same producer groups elsewhere. In addition, suppliers must
have third-party assurance of their monitoring process and systems
used and be subject to cross-check by Mondelēz International.
From Q1 2021, the company expects 80% of its palm
oil to meet these enhanced expectations with strong supplier
partnership, working to increase coverage as quickly as
possible.
The enhanced sourcing requirements will improve
transparency across the sector by requiring suppliers to confirm
sustainable sourcing practices across their entire supply chain by
2025, not just the portion supplied to Mondelēz International. They
form part of Mondelēz International long-term ambition to eliminate
deforestation and forced labor in the palm oil supply chain and
support the aims of the Consumer Goods Forum #Forestpositive
Coalition.
“We have a unique opportunity to help create a
future where sustainable practices are universal across the palm
oil sector,” said Quentin Roach, Chief Procurement Officer at
Mondelēz International. “As a company we are continuing to pioneer
partnership and action with our suppliers to ensure they share and
actively support not only our commitment, but the larger collective
commitment to realize a forest positive future where a highly
efficient ingredient like palm oil is sustainably sourced across
the sector.”
Any supplier to Mondelēz International will be
required to:
- Take full responsibility for eliminating deforestation
in their own operation and upstream supply chain by
providing traceability to plantation and satellite monitoring
covering all palm oil concessions* supplying mills attributed to
the company.
- Improve traceability and transparency by
identifying all mills attributed to the company on Global Forest
Watch, with no active grievances against concessions in their
direct supply, or operated by the same producer groups
elsewhere.
- Demonstrate implementation of supplier
progress via third-party assurance of their monitoring
process and systems.
- Take action against exploitation of workers in
the palm oil supply chain by strengthening our supplier
expectations on Human Rights – spelling out the due diligence steps
we expect them to follow in order to identify and mitigate risks in
their own operations and supply chain.
“AAK is delighted that Mondelēz International has
enhanced its commitment to sustainable palm oil, and is committed
to working with Mondelēz International to achieve its
goals. Sustainability is key to AAK’s future, including palm
oil sustainability in particular. It is critical that
representatives along the supply chain join forces to continue the
momentum towards a fully sustainable palm oil industry. As one of
the key leaders in the market, Mondelēz International sends a
strong message with its new announcement, joining AAK as a catalyst
for change,” said Jan Lenferink, Vice President AAK AB.
“We are supplying traceable palm oil from areas
covered by our in-house land use change monitoring program to
Mondelēz International and have always been impressed with their
passion and sense of urgency for sustainability. We have
appreciated their collaborative approach in setting high standards
and utilizing industry frameworks that can be leveraged by all
suppliers. We share the belief that close engagement with our
customers and suppliers is key, as our sustainability goals can
only be achieved through the commitment and collaboration of all
stakeholders. We are proud to be able to support Mondelēz
International in advancing their sustainable palm oil sourcing and
deliver a positive impact together,” said Ben Vreeburg, Sr.
Director Sustainability for Tropical Oils, Bunge Loders
Croklaan.
Despite representing around 0.5% of demand for palm
oil, Mondelēz International has taken a leadership position on palm
oil sustainability and recognizes that all actors have a role to
play in achieving a solution to this complex problem. The
company has maintained 100% RSPO palm oil coverage since 2018, 98%
of the company’s palm oil comes from suppliers with aligned-to
policies across their entire supply chain and the company takes
action against groups who don’t comply, including the suspension of
89 mills in 2019.
“Many corporations are working hard to address
deforestation and achieve better transparency in their supply
chains. We are proud to work together with MDLZ to further reduce
the environmental impact of the palm oil sector, and make
meaningful progress more visible using the combination of daily
satellite analytics and granular supply chain data,” said Niels
Wielaard CEO of Satelligence.
For further information, refer to our website
www.mondelezinternational.com for more
information. Specific links follow to our:
- Palm Oil Action Plan
- Published Mill List
- Grievance Process
- 2019 Snacking Made Right Report
*Concessions: corporate plantations on
government-licensed land (in SE Asia), typically attached to mills
and part of larger producer groups.
About Mondelēz
InternationalMondelēz International, Inc. (NASDAQ: MDLZ)
empowers people to snack right in over 150 countries around the
world. With 2019 net revenues of approximately $26 billion, MDLZ is
leading the future of snacking with iconic global and local brands
such as OREO, belVita and LU biscuits; Cadbury Dairy Milk, Milka
and Toblerone chocolate; Sour Patch Kids candy and Trident gum.
Mondelēz International is a proud member of the Standard and Poor’s
500, Nasdaq 100 and Dow Jones Sustainability Index. Visit
www.mondelezinternational.com or follow the
company on Twitter at www.twitter.com/MDLZ.
Contacts: |
Maggie McKerr+1-847-943-5678news@mdlz.com |
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