Mondelez International issued a call for its suppliers of palm oil to embrace its goal of 100 percent sustainability and 100 percent 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.
Mondelez continues to raise the bar for itself and its suppliers by implementing sustainability policies and improving traceability. Nevertheless, there is more the industry needs to do in the palm oil supply chain to prevent deforestation. The company's suppliers have led in traceability efforts with its Palm Oil Action Plan, but there still remains a gap between the current state and its goal of 100 percent sustainability and 100 percent transparency.
In order to close that gap, Mondelez is calling on suppliers to:
- Commit to palm oil concession mapping as a vital step to accountability and change. Concession mapping enables Mondelez International and its suppliers to identify and focus on areas of highest risk for deforestation. In 2016, Mondelez asked 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. While progress has been made, the company is now requiring suppliers 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 the company will cease contracts with upstream suppliers engaged in deforestation. While Mondelez supports efforts to identify companies growing palm oil unsustainably and have given opportunities to reform, the company will exclude 12 supstream suppliers as a result of breaches.
“Mondelēz International remains fully committed to driving change in the palm oil sector and today’s actions against 12 upstream suppliers reflect that commitment,” says Jonathan Horrell, global director of sustainability at Mondelēz International. “We will continue to pursue existing and new initiatives that seek to drive effective change across palm oil-growing communities. The company understands that this complex challenge can only be solved through collaboration with all actors in the palm oil supply chain, from growers to suppliers and buyers, as well as local and national government and non-governmental organizations.”