Mondelez wraps up first set of sustainability goals

by Eric Schroeder
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Mondelez 2015 progress report
Mondelez reported that it achieved seven of its sustainability goals and is on target on another.

EAST HANOVER, N.J. — For Mondelez International, Inc., 2015 marked the end of measurement for sustainability goals that have guided the company’s progress since 2010. Overall, the company is pleased with the progress it has made since 2013 when it launched its global “Call for Well-Being.”

“In 2014, we were a year ahead of schedule in accomplishing our 2015 goals for packaging, greenhouse gas emissions and net waste,” the company noted in its “The Call for Well-Being” 2015 progress report issued June 22. “We also made considerable progress against our other sustainable agriculture and environmental footprint goals — including meeting and exceeding our waste to landfill and water goals. While we didn’t meet our energy reduction goal as planned, we exceeded our greenhouse gas reduction goal for manufacturing, in line with our strategic focus on climate change.”

In 2014, Mondelez indicated it had achieved its progress goal in four areas, was on target to achieve three and still had work to do on two others. By the end of 2015, though, the company said it had achieved its progress goals in seven areas, failed to meet its goal in one area and was on target in a ninth area.

One of the goals Mondelez achieved in 2015 was 75% of Western European biscuit volume made with Harmony wheat. At the end of 2014, the company only was at 60%, but it was able to make up 15 percentage points to achieve its goal by the end of 2015.

Mondelez biscuits made with Harmony wheat
Mondelez achieved its 2015 goal of having 75% of its Western European biscuit volume made with Harmony wheat.

Mondelez in 2008 launched Harmony, a sustainable partnership in Europe with stakeholders who are considered key links in the wheat production chain. The initial group of 68 farmers in France is now a partnership of more than 2,269 farmers, 13 millers and 37 cooperatives across Europe.

Mondelez said Harmony farmers have achieved a 25% reduction in pesticide use, and in 2015, 14.3 million bees and 16 species of butterflies were observed in Harmony fields.

“Harmony is a choice our farmers are proud to make because they share our commitment to a thriving environment and believe in the quality of biscuits grown with their wheat,” the company said. “It’s a way of bringing local communities together. The quality of the biscuits we bake fuels a growing business. We are sourcing the best wheat for the consistency of our flour. We know where the wheat in every biscuit comes from, and consumers can feel good about choosing our delicious brands. This makes Harmony sustainable for the long term.”

Other goals that Mondelez reached by the end of 2015 included reducing water in manufacturing by 15% (reached 17%) and achieving 60% production from Zero Waste to Landfill sites by the end of 2015 (reached 68%).

Mondelez manufacturing facility
One goal Mondelez did not achieve was to reduce energy in manufacturing by 15%.

One goal the company did not achieve was to reduce energy in manufacturing by 15%. At the end of 2015, Mondelez said it only was at 11% reduction in energy per tonne at manufacturing sites worldwide.

“While we missed our energy goal, we exceeded our greenhouse gas reduction goal, in line with our strategic focus on climate change,” the company said.

As the largest buyer of cocoa in the world, Mondelez has pledged to lead the transformation of the cocoa supply chain. The company has set a goal to sustainably source all its cocoa and remains on target to achieve its goal. In 2015, 21% of Mondelez’s cocoa was sustainably sourced (up from 12% in 2014), a percentage that the company said it expects to grow substantially as more farmers join the Cocoa Life program. Cocoa Life was launched in 2012 with a $400 million, 10-year commitment to empower more than 200,000 farmers and more than one million people in the company’s six key cocoa growing origins by 2022.

Mondelez sustainable cocoa
In 2015, 21% of Mondelez’s cocoa was sustainably sourced (up from 12% in 2014).

Mondelez met its pledge to make all of its palm oil 100% R.S.P.O. (Roundtable for Sustainable Palm Oil) in 2013, but the company continues to increase the percentage of palm oil that is traceable back to the mill. At the end of 2014, 70% of the palm oil sourced by the company was traceable back to the mill, a percentage that increased to 90% at the end of 2015.

“Traceability to the mill is a powerful step,” the company noted in the report. “Mill data will enable us to use technology such as World Resources Institute’s Global Forest Watch system to monitor deforestation, identify risk areas and focus suppliers’ efforts on deforestation hotspots. While traceability to the mill is a good first step, more needs to be done. We continue to call for the sector to go beyond by achieving traceability to the grower and for transparency of concession maps. We will also update our Palm Oil Action Plan in the second half of 2016 to reflect the progress that has been made on the ground.”

 For the full report, click here
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