Wednesday, December 13, 2023

We have announced a significant milestone toward our goal of net zero greenhouse gas emissions across our full value chain by 2050. After joining the Science Based Targets Initiative (SBTi)’s Net Zero Carbon Ambition two years ago, we have submitted a time-bound plan within SBTi’s timeframe, consistent with the 1.5°C protocol. Achieving this milestone includes providing documentation of our carbon accounting, aligning to new standards, continuing to transform our business operations and supply chains, and transparently reporting progress. Furthermore, Mondelēz International confirms a goal to seek no deforestation across our primary commodities by 2025, in accordance with European Union Deforestation Regulation and SBTi guidance.

Mondelēz has made targeted investments and progress in three key areas¹:

• More Sustainable Ingredient Sourcing: Working to advance deforestation-free supply chains, reduce carbon emissions, accelerate regenerative agriculture practices and support biodiversity.
  
  • Cocoa – We continue to invest in regenerative farming practices by further scaling farm mapping, farmer training and tree distribution. As part of the Cocoa Life program, we trained ~220,000 farmers in Good Agricultural Practices, distributed ~6.7 million trees and mapped ~246,000 farms across Cocoa Life communities (as of 2022). As a founding company of the Cocoa and Forests Initiative (CFI) in Ghana, MDLZ has been an active industry member of the landscapes initiative in the Asunafo Region collaborating to implement climate-smart cocoa production practices as well as agroforestry models.
  • Wheat – We implemented a strengthened charter of farming practices in Europe, deeply rooted in regenerative agriculture, as part of our Harmony Ambition 2030. This includes working with partner farmers to diversify crop rotation and integrating decision tools to help optimize fertilizer use while piloting trainings for farmers through the Harmony Academy platform, a smartphone application encouraging the adoption of regenerative agriculture practices and promoting soil health as well as through the first-ever Harmony Tour, a dedicated training program on the ground.
  • Dairy – In Europe, we are working with several dairy suppliers on greenhouse gas reduction programs at the farm level, already achieving reductions of ~6-10% CO₂e vs. their baselines.
• Operations: Reducing our global manufacturing footprint by transitioning towards renewable electricity, improving manufacturing plant efficiencies, and substituting cleaner energy.
  
  • Renewable Electricity – Advanced the use of renewable electricity across owned manufacturing facilities through power purchase agreements (PPAs), on-site solar panels and renewable energy credits (REC) sourcing from wind and solar power sources.
  • Manufacturing Plant Efficiencies – Initiated investments in several of our European operations to expand state-of-the-art manufacturing facilities and invest in newer technologies such as electric ovens to reduce natural gas use.
  • Transition to Bioenergy – Substituted cleaner energy at some of our operations.
• Logistics: Focusing on investing in new mobility concepts, reducing warehouse emissions by converting to renewable sources, and improving efficiency of distribution networks by optimizing routes, improving truck and container utilization, and reducing travel distances.
  
  • Intermodal and Mobility Concept Initiatives – Partnered with Indian Railways and utilized coastal waterways network to improve distribution, enabling CO₂e emission reductions for select routes.
  • Warehouse Emission Reductions – Achieved CO₂e emission reductions in one of our largest distribution centers by installing solar rooftop panels connecting to an existing electricity grid.
  • Distribution Efficiencies – Reduced Direct Store Delivery transport idle time and improved vehicle fill rate across U.S. Mondelēz distribution networks.

"We are actioning business transformation and making strong progress, but the road to Net Zero requires global collaboration across industries, sectors and landscapes to unlock innovative and collaborative solutions allowing us all to go further, faster," said Christine Montenegro McGrath, Senior Vice President and Chief Global Impact and Sustainability Officer at Mondelēz International. "We remain focused on leveraging proven models and available solutions, while at the same time using our scale and influence to help drive technical advancement, public-private collaboration and investment to incubate innovation."

In addition to these accomplishments, we continue to explore collaborative financing and innovation incubation through platforms like Sustainable Futures, our impact investment platform, while advancing research and development in climate-smart technology and practices to implement at the sourcing level, across supply chain and in owned operations and through to brand, packaging and consumption.

¹ Additional detail about our ESG goals and progress against our goals can be found in our recently published 2022 Snacking Made Right report under "Our ESG Progress" and "About Our ESG Goals" on pages 10-11 and 78.