Mondelēz International announced today a stronger set of expectations and principles on direct suppliers of palm oil to improve transparency and speed the transition to sustainable practices across the sector.
In the Palm Oil Action Plan released today, the company embeds firmer supplier sourcing requirements while calling for 100 percent transparency and 100 percent sustainability across the sector.
Despite progress made, Mondelēz International believes the industry needs to move faster to eliminate deforestation and forced labor in the palm oil supply chain. Since 2014, the company has called for sector-wide change. In this updated Palm Oil Action Plan, Mondelēz International takes a further step to close the gap to its goal of full transparency and sustainability by strengthening expectations on supplier companies, and their entire upstream supply chains.
“We have a unique opportunity to reform palm oil once and for all and to make this ingredient truly sustainable,” said Alex Turolla, Vice President, Procurement at Mondelēz International. “As a company we are shifting gears and taking action with our suppliers to ensure they share and actively support our commitment. The success of the approach we’re taking to combat deforestation through improved traceability and transparency does require action across the entire sector.”
In the future, any supplier to Mondelēz International will be required to:
Take full responsibility for eliminating deforestation in their own operation and upstream supply chainby mapping and monitoring all plantations and adopting a “suspend and engage” approach requiring immediate suspension of companies involved in deforestation.
Improve traceability and transparencyby maintaining universal mill lists with group level owners clearly indicated, and publishing them regularly, as well as using satellite technology to map and monitor sources of palm.
Demonstrate implementation of supplier progressagainst this updated Palm Oil Action Plan as a prerequisite of doing business with Mondelēz International.
Despite representing around 0.5 percent of demand for palm oil, Mondelēz International has taken a leadership position on palm oil sustainability and recognizes that all actors have a role to play in achieving a solution to this complex problem.
In order to create truly sustainable palm oil, the company believes suppliers must take responsibility across their footprint and be held accountable for not only the physical supply of the oil they source but also the group-level companies that supply them. Mondelēz International also calls on its suppliers to strengthen their knowledge, sustainability strategy and implementation, and to continue to build transparency and confidence in palm oil.