Mondelēz International reports gains on core sustainability goals, including cocoa sourcing
Mondelez at Sweets & Snacks. Pic: Neill Barston
US-headquartered Mondelēz International, Inc has reported gains against its core sustainability goals in its latest Snacking Made Right Report, including improving its Cocoa Life scheme now covering 91% of its supplies, writes Neill Barston.
The company’s annual performance review has served as a critical barometer for performance within the business, as it aims to make further headway on reducing its global carbon footprint, enhancing recycling policies, as well as addressing ongoing child labour within supply chains, across a business delivering $36 billion in revenues.
As the business asserted, it has continued to place sustainability as its fourth pillar in its long-term strategies, sitting alongside priorities of growth, execution of its strategies and development of its operating culture.
Furthermore, its latest report explores its work on transparency, showcasing meaningful progress toward its efforts to drive more sustainable and mindful snacking.
Among its core attainments are continuing its Cocoa Life programme, which helps farmers regenerate landscapes, which has now been extended to cover 91% of its cocoa volume (up from 75% in 2021).
The company, which will be represented at our World Confectionery Conference on 11 September with a keynote from its senior director of global public affairs in his capacity as president of Caobisco European industry trade association, also reported a 12% reduction in end-to-end GHG emissions across the Company’s value chain compared to 2018, as well reporting that 96% of its packaging is now designed to be recyclable.
As the business noted in its latest report, the company had previously been focused on reducing the carbon emissions across its manufacturing operations by 10% from a 2018 base year, which it achieved through collaborative strategies. The company confirmed that its focus moving forward will be shifting to the reduction of absolute Scope 1 & 2 emissions by 50.4% by 2030 against its base start date seven years ago.
In terms of addressing the core trend of a move to healthier snacking, it has developed its Mindful Portion Snacks portfolio, with over 84% of revenue now derived from individually wrapped mindful portions or clear portion guidance on packs.
ESG performance
Notably, as the company stated, its 2024 Snacking Made Right report has been informed by its ESG reporting standards throughout its business, including delivering its Cocoa Life scheme, which has allocated a total of $1 billion into improving its operations between 2012 and 2030.
This year is particularly critical for this topic, as 2025 is the deadline it set itself for attaining 100% of its cocoa supplies to be covered by the scheme – which operates in eight countries including Ecuador, Brazil, Ivory Coast, Ghana, Nigeria, Cameroon, India and Indonesia. Its scope includes a focus on growing more profitable cocoa farming businesses for communities to help increase the number of farming households reaching a living income.
It has also been designed to enhance child protection systems and improve access to quality education, as well as Helping to protect and restore forests within its supply chains.
Speaking in the Snacking Made Right Report, Dirk Van de Put, Chairman and CEO, Mondelēz International, hailed the company’s employee base of around 90,000 employees around the world as being instrumental in delivering progress against its goals.
However, he acknowledged that issues remained in the sector that have posed major tests for the global trading ecosystem. As Confectionery Production has recently reported from Chocoa in Amsterdam, Mondelez noted that tests remained for the business, and the wider market surrounding reducing and remediating instances of child labour and fully delivering on environmental targets
However, the company’s chairman noted that “despite continued market and geopolitical uncertainty, stubborn inflation, and record input costs for key ingredients like cocoa,” it remained committed to its core values of seeking to source as sustainably as possible.
He said: “We continue to prioritise Sustainability as the fourth pillar in our long-term Strategy, as we believe that a more sustainable business adds value over the long-term. With the right strategy, the right brands, the right geographic footprint, and the right people – I’m confident that we remain solidly positioned for long-term, sustainable growth.”
Moreover, the business noted its approach to delivering progress is two-pronged, including working closely upstream and downstream across the supply chain and playing a leadership role in industry and sector initiatives.
In addition, Christine Montenegro McGrath, Chief Impact & Sustainability Officer, Mondelēz International, shared the chairman’s optimism on its progress.
“Despite immense challenges facing the cocoa sector, in 2024 we continued to advance our leadership in more sustainable sourcing of critical ingredients.
“Today about 91% of the cocoa volume used in our chocolate brands is sourced through Cocoa Life (through a mass balance approach), our signature cocoa sourcing program, which aims to help lift up the people and restore landscapes where cocoa grows.
She added: “I’m proud of the consistency of our approach and the strong progress we continue to achieve against our Sustainability goals in 2024,” said “We remain focused on making an impact where we think people and our planet need it most, and I am encouraged by the results of this focus.”
