Mondelēz reaches palm oil goal two years early

by Eric Schroeder
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DEERFIELD, ILL. — Mondelēz International, Inc. has achieved Roundtable for Sustainable Palm Oil (R.S.P.O.) coverage for 100% of the palm oil it bought in 2013, two years ahead of its earlier commitment. Previously, Mondelēz had set a goal of covering all requirements by 2015 through a combination of R.S.P.O.-certified oil and GreenPalm certificates that support sustainable production.

“Achieving 100% R.S.P.O. is an important milestone toward our long-term commitment to only buy palm oil that’s produced on legally held land, doesn’t lead to deforestation or loss of peat land, respects human rights, including land rights, and doesn’t use forced or child labor,” said Dave Brown, vice-president of global commodities and strategic sourcing. “We recognize the need to go further, so we’ve also challenged our palm oil suppliers to provide transparency on the levels of traceability in their palm oil supply chains. Knowing the sources of palm oil supplies is an essential first step to enable scrutiny and promote improvements in practice on the ground.”

Mondelēz said it will spend the first few months of this year reviewing results from suppliers. The company then will publish an action plan during the second quarter of 2014 to give priority to supplies that meet the company’s sustainability principles, and eliminate supplies that do not, by 2020 at the latest.

The company’s effort in palm oil is part of a wider commitment to sustainably source key agricultural commodities. Mondelēz also is involved in a 10-year, $600 million investment in signature programs Cocoa Life and Coffee Made Happy, which were established to help farmers create thriving communities, and Harmony, a successful European wheat sourcing program that promotes biodiversity and good environmental practices.
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