Mondelēz International, a global leader in snacking, has shown considerable progress in its Environmental, Social, and Governance (ESG) commitments as detailed in their 2023 Sustainability Report. The company’s efforts are aligned with global sustainability trends and stakeholder expectations, making significant strides in environmental conservation, social responsibility, and ethical governance.
Environmental Initiatives
Carbon Emissions Reduction: Mondelēz has set a formidable target to reduce its absolute CO2 emissions by 10% by 2025 from a 2018 baseline. As of 2022, the company has achieved a 7.6% reduction, signaling strong progress toward this goal. This reduction is part of a broader strategy that involves enhancing energy efficiency across operations and increasing reliance on renewable energy sources.
Water Usage: In response to the global water crisis, Mondelēz targets a 25% reduction in water usage by 2025, focusing particularly on water-stressed areas. By 2022, the company reported a 7% reduction compared to the 2018 levels, showing a responsible approach to water management.
Waste Management: With a commitment to sustainability, Mondelēz aims to make 100% of its packaging recyclable by 2025. Impressively, by the end of 2022, 93% of its packaging was recyclable. Additionally, the company has reduced total waste from its manufacturing sites by 21% since 2013, emphasizing its commitment to environmental stewardship.
Social Contributions
Community Engagement: Mondelēz engages in various community programs, particularly those aiming to enhance food security and socio-economic development. These programs are integral to the company’s strategy to support sustainable development in the communities where it operates.
Farmer Support: Through its Cocoa Life program, Mondelēz has set ambitious goals to support 200,000 cocoa farmers and one million community members. By 2022, the initiative had reached approximately 175,000 farmers and 900,000 community members, providing training and resources to improve farming practices and livelihoods.
Health and Well-being: Recognizing the growing consumer focus on health, Mondelēz aims to increase the volume of its ‘Better Choices’ products to 25% of total revenue by 2025. In 2022, these products made up 17% of the total revenue, indicating a shift towards offering healthier snack options.
Governance Practices
Corporate Governance: Mondelēz is committed to maintaining high standards of corporate governance with regular audits, compliance training, and adherence to international standards and regulatory requirements.
Ethical Standards: The company places a strong emphasis on ethical practices, particularly in its supply chains. For example, 80% of its cocoa was sourced through the Cocoa Life program by 2022, highlighting its commitment to ethical sourcing.
Stakeholder Engagement: Mondelēz prioritizes transparency and regular dialogue with stakeholders to ensure that its business practices align with broader societal values and expectations.
Future Aspirations
Sustainability Goals: Looking forward, Mondelēz plans to set even more rigorous sustainability benchmarks, though specific targets beyond 2025 are still being formulated.
Innovation in Sustainability: The company continues to invest in R&D to develop innovative solutions that advance its ESG goals, including sustainable packaging solutions and new product formulations that cater to health-conscious consumers.
Expansion of Community Programs: Mondelēz intends to expand its impact through more extensive community programs, further supporting economic and educational development in the communities it serves.
Conclusion
Mondelēz International’s 2023 Sustainability Report outlines a clear and structured approach to ESG that not only addresses the immediate impacts of its operations but also sets the stage for long-term commitments. As the company moves forward, its ongoing efforts to balance economic success with environmental stewardship and social responsibility are likely to continue shaping its global strategy, reinforcing its position as a leader in sustainable business practices in the snack food industry.
Source: https://www.mondelezinternational.com/snacking-made-right/reporting-and-disclosure/
