Mondelēz International Advances Sustainable Palm Oil Sourcing With Enhanced Traceability

Mondelēz International, Inc. announced significant progress in advancing requirements for traceable, forest-monitored palm oil and confirms strong progress against sustainable sourcing goals.

The new requirements include traceability to plantation and satellite monitoring covering all palm oil concessions supplying mills attributed to the company, against the deforestation criteria set out in its Palm Oil Action Plan. All mills must be identified on Global Forest Watch, with no active grievances against concessions in their direct supply, or operated by the same producer groups elsewhere. In addition, suppliers must have third-party assurance of their monitoring process and systems used and be subject to cross-check by Mondelēz International.

From Q1 2021, the company expects 80 percent of its palm oil to meet these enhanced expectations with strong supplier partnership, working to increase coverage as quickly as possible.

The enhanced sourcing requirements will improve transparency across the sector by requiring suppliers to confirm sustainable sourcing practices across their entire supply chain by 2025, not just the portion supplied to Mondelēz International. They form part of Mondelēz International long-term ambition to eliminate deforestation and forced labor in the palm oil supply chain and support the aims of the Consumer Goods Forum #Forestpositive Coalition.

“We have a unique opportunity to help create a future where sustainable practices are universal across the palm oil sector,” said Quentin Roach, Chief Procurement Officer at Mondelēz International. “As a company we are continuing to pioneer partnership and action with our suppliers to ensure they share and actively support not only our commitment, but the larger collective commitment to realize a forest positive future where a highly efficient ingredient like palm oil is sustainably sourced across the sector.”

Any supplier to Mondelēz International will be required to:

• Take full responsibility for eliminating deforestation in their own operation and upstream supply chain by providing traceability to plantation and satellite monitoring covering all palm oil concessions supplying mills attributed to the company.
• Improve traceability and transparency by identifying all mills attributed to the company on Global Forest Watch, with no active grievances against concessions in their direct supply, or operated by the same producer groups elsewhere.
• Demonstrate implementation of supplier progress via third-party assurance of their monitoring process and systems.
• Take action against exploitation of workers in the palm oil supply chain by strengthening our supplier expectations on Human Rights – spelling out the due diligence steps we expect them to follow in order to identify and mitigate risks in their own operations and supply chain.

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