The FINANCIAL — Mondelēz International amplified its call for suppliers of palm oil to embrace its goal of 100% sustainability and 100% transparency across the industry. The company has challenged its supply chain and the entire sector to be sustainable and transparent in the production of palm oil since 2010.
Throughout the years, Mondelēz International has continuously raised the bar for itself and its suppliers and there has been substantial progress in suppliers implementing sustainability policies and improving traceability. Nevertheless, there is more the industry needs to do in the palm oil supply chain to prevent deforestation. Mondelēz International’s suppliers have achieved industry leading levels of traceability with its Palm Oil Action Plan but there remains a gap between the current state and our goal of 100% sustainability and 100% transparency.
To close that gap, urgent action is needed across the entire supply chain to improve performance and deliver benefits to people, eco-systems and the economies in producing countries. Ahead of the 16th Annual Roundtable Conference on Sustainable Palm Oil this week, Mondelēz International is calling on suppliers to:
Commit to palm oil concession mapping as a vital step to accountability and change. Concession mapping enables Mondelēz International and its suppliers to identify and focus on areas of highest risk for deforestation. Unfortunately, publication of concession maps is not progressing fast enough. In 2016, Mondelēz International asked its suppliers to map all the mills they buy from on Global Forest Watch, as well as their own concessions, and engage their upstream suppliers to publish concession maps on GFW. Although strong progress has been made on first two, the company is now requiring them to provide universal, group-wide concession maps for upstream suppliers as a condition of doing business.
Act faster to eliminate deforestation in their palm oil supply through time-bound remediation plans or Mondelēz International will cease contracts with upstream suppliers engaged in deforestation. While Mondelēz International supports efforts to identify companies growing palm oil unsustainably and provide an opportunity to reform, engagement must deliver results. Therefore, Mondelēz International is excluding of 12 upstream suppliers as a result of breaches.