Differentiated approach creates long-term value for business
Bangkok, 17 September 2021 – Global snacks maker, Mondel?z International, continues to create long-term value for the business and its stakeholders with its unique approach to ESG (Environmental, Social and Governance), as highlighted in its global 2020 Snacking Made Right Report and the latest initiatives in Southeast Asia region.
ESG is one of Mondel?z International’s long-term value drivers integrated throughout its business strategy and is core to its purpose – to empower people to snack right by delivering the right snack, at the right moment, made the right way. And deliver lasting change at scale by prioritizing areas of greatest impact, focusing on innovative and measurable solutions, and collaborating to drive sector-wide transformation.
“Snacking Made Right is part of everything we do. It drives us to take care of our people, to protect our resources, and provide moments of comfort and connection for our consumers across Southeast Asia,” Glenn Caton, President, Southeast Asia, Mondel?z International, said. “Our purpose is more important than ever and pushes us to continue to advance our ESG commitments and expand our robust goals. We are focused on building a sustainable snacking company, minimizing our impact on the environment while being a more diverse, equitable, inclusive and transparent organization. We are dedicated to accelerating our efforts to lead the future of snacking.”
In the past year, the company made meaningful progress in its sustainability and well-being goals, and even exceeded multiple targets, including:
- 68% of cocoa sourced sustainably via its signature sourcing program Cocoa Life
- 98% of palm oil sourced from suppliers aligned with MDLZ’s 2020 Palm Oil Action Plan
- Since 2013, the Cocoa Life program has been operating in Indonesia. In 2020, nearly 40,000 farmers in 336 communities were reached.
- In support of these communities in Southeast Asia in 2020, the company purchased 86,000 cocoa seedlings from local nursery owners to create income and provided to farmers to support continued cocoa production.
- In October 2020, Mondel?z International opened its global cocoa crop science technical center in Pasuruan, Indonesia. The center enables them to develop and promote better cocoa farming practices, continuing their work with farming communities, suppliers, and partners around the world to secure a sustainable future for high-quality cocoa.
- Recently, Mondel?z International and Olam International committed to create the world’s single largest sustainable commercial cocoa farm – a 2,000-hectare cocoa farm in Seram, Indonesia. The farm is expected to be fully planted by the end of 2021.
Environmental Impact *vs 2013 baseline
- 20+% reduction in CO2 from manufacturing globally, exceeding the target of 15% and 30+% reduction in total carbon emissions for Mondel?z International in Southeast Asia, saving more than 25,712 tons of carbon
- 30+% reduction in priority water usage globally, exceeding the target of 10%, and 28% reduction in water usage in Southeast Asia
- 30+% reduction in total waste from manufacturing globally, exceeding the target of 20%, and 35% increase in waste reuse and upcycling rate in Southeast Asia over the past two years
- In Southeast Asia, Mondel?z International utilizes 100% renewable energy at Khon Kaen plant in Thailand and plant and office in Sucat, the Philippines
- Planted 2,000 mangrove trees in Muara Bahagia, Indonesia and 700 trees near Ladkrabang and Khonkaen plants in Thailand
- 94% of packaging designed to be recyclable
- In Southeast Asia, Mondel?z International saved 407 metric tons in packaging material in 2020 and reduced its logistics carbon footprint by more than 62,000 tons in the past two years through route optimizations, less road and sea shipments, and pallet configuration changes, less container usage and better warehouse utilization.
Reducing Plastic Waste
- Invested in a pilot partnership with social enterprise The Plastic Flamingo in the Philippines to collect 1 metric ton (1,000 kilograms) of plastic waste during late 2020. The collected plastic is turned in to planks, which will be used to build shelters for disaster relief operations
- Kicked off pilot programs to improve education about waste recycling and collection for primary school students in Indonesia and Malaysia
- 16% of revenues coming from portion control snacks
- Introduced more portion control snacks such as 37-gram pack of Cadbury Dairy Milk bar, 28-gram pack of Chipsmore Oat, 30-gram pack of Oreo Socola Pie and 120-calorie pack of Tiger Crackers in Southeast Asia
- On pack Snack Mindfully portion icon included on products like Cadbury Dairy Milk chocolate and AFC savory crackers in Vietnam
- Continued to reduce sugar, sodium and fat progressively in its portfolio. In 2020 we did this in Solite cakes and Chipsmore Oats and included more fiber and calcium in AFC crackers.
- Continued to activate Snack Mindfully to engage consumers with education campaigns in Philippines, Malaysia (#JomsnekBijak) and Indonesia (#NgemilBijak)
- Established the Sustainable Futures platform to amplify long-term positive impact for people and the planet through innovative social investment and partnerships, starting with Plastic Flamingo in the Philippines
- Delivered more than $30 million globally for COVID-19 relief efforts, including the donation of cash and in-kind with the total value of $2.5 million to support countries in Southeast Asia to fight against the pandemic
Accelerating Diversity, Equity & Inclusion
- In 2020, the company announced robust commitments, including spending $1 billion with women- and minority-owned businesses annually and doubling U.S. Black representation in management by 2024, while also appointing its first Chief Diversity & Inclusion Officer
Glenn Caton, President Southeast Asia, Mondel?z International said, “Across Southeast Asia, Mondel?z International is on a mission to lead the future of snacking by creating snacks the right way for both people and planet to love. We are focused on making our snacks more sustainably by using less energy, water and waste, with ingredients consumers know and trust. Moving forward, we will continue to target our efforts, prioritizing where we can have the greatest impact, tackling root causes, measuring our progress, and investing in scalable solutions, while remaining flexible and open to new ideas so we can drive lasting and meaningful change at scale.”
With an aim to drive substantial change, Mondel?z International’s Snacking Made Right report also reaffirms the company’s 2025 environmental goals, including:
- 100% of cocoa for chocolate brands sourced through MDLZ’s signature sustainable sourcing program, Cocoa Life
- 10% reduction in science-based, end-to-end C02 emissions
- 100% of packaging designed to be recyclable and labeled with recycling information
- 25% reduction in the use of virgin rigid plastic