Mondelēz International Advances Progress Toward 2050 Net Zero Emissions Goal
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From a sustainability perspective, Mondelēz International's submission of a Net Zero roadmap to the Science Based Targets Initiative signifies a strong commitment to environmental stewardship. The alignment with the 1.5°C protocol not only adheres to international climate goals but also positions the company as a leader in corporate responsibility within the food industry. The focus on deforestation-free supply chains and regenerative agriculture practices reflects a growing consumer demand for sustainability and can potentially lead to long-term cost savings due to more efficient resource use and resilience against climate-related supply chain disruptions.
Moreover, the transition towards renewable energy in manufacturing and logistics indicates an operational shift that may reduce long-term energy costs while mitigating regulatory risks associated with greenhouse gas emissions. These strategic investments in sustainability can enhance Mondelēz's brand image, potentially resulting in increased market share among eco-conscious consumers. However, the upfront costs for implementing such initiatives and the scalability of regenerative practices across global supply chains remain a challenge that could impact short-term financial performance.
Analyzing the financial implications, Mondelēz International's strategy to achieve net zero emissions could lead to both increased expenses and long-term savings. The initial capital outlay for renewable energy installations, sustainable sourcing and efficiency improvements in manufacturing and logistics will likely impact short-term earnings. However, these investments could be offset by government incentives for sustainable practices and by future savings on energy costs and potential carbon taxes.
Investors should note that the shift towards a sustainable business model may also open up new revenue streams through the development of eco-friendly products and services, which could appeal to a growing segment of consumers. Furthermore, as environmental regulations tighten globally, Mondelēz's proactive approach may afford it a competitive advantage over peers that are slower to adapt, potentially leading to favorable long-term shareholder returns.
Within the supply chain domain, the commitment to no deforestation and the advancement of regenerative agriculture practices are particularly noteworthy. These efforts can lead to a more resilient supply chain, as diversified crop rotation and soil health improvement can reduce dependency on single crops and enhance yield stability. Mondelēz's investment in farmer training and technology, such as the Harmony Academy app, demonstrates an innovative approach to supplier engagement that can improve the sustainability of agricultural inputs.
Additionally, the optimization of logistics through intermodal initiatives and distribution efficiencies can result in significant cost reductions and emission savings. However, the complexity of transforming global supply chains to meet these ambitious goals should not be underestimated. Collaboration with suppliers, investment in local infrastructure and alignment with international standards will be critical to achieving the desired outcomes without compromising supply chain efficiency or product availability.
- Submits Net Zero roadmap to Science Based Targets Initiative (SBTi)
- Confirms goal to seek no deforestation across primary commodities by 2025
- Accelerates regenerative agriculture practices, advances renewable energy at manufacturing sites and reduces CO2e emissions through efficiencies and innovations
CHICAGO, IL / ACCESSWIRE / January 11, 2024 / Mondelēz International (Nasdaq:MDLZ) announced a significant milestone toward its goal of net zero greenhouse gas emissions across its full value chain by 2050. After joining the Science Based Targets Initiative (SBTi)'s Net Zero Carbon Ambition two years ago, the Company has submitted a time-bound plan within SBTi's timeframe, consistent with the 1.5°C protocol. Achieving this milestone includes providing documentation of the company's carbon accounting, aligning to new standards, continuing to transform its business operations and supply chains, and transparently reporting progress. Furthermore, Mondelēz International confirms a goal to seek no deforestation across the company's primary commodities by 2025, in accordance with European Union Deforestation Regulation and SBTi guidance.
Mondelēz has made targeted investments and progress in three key areas1:
- More Sustainable Ingredient Sourcing: Working to advance deforestation-free supply chains, reduce carbon emissions, accelerate regenerative agriculture practices and support biodiversity.
- Cocoa - The company continues to invest in regenerative farming practices by further scaling farm mapping, farmer training and tree distribution. As part of the Cocoa Life program, the company trained ~220,000 farmers in Good Agricultural Practices, distributed ~6.7 million trees and mapped ~246,000 farms across Cocoa Life communities (as of 2022). As a founding company of the Cocoa and Forests Initiative (CFI) in Ghana, the company has been an active industry member of the landscapes initiative in the Asunafo Region collaborating to implement climate-smart cocoa production practices as well as agroforestry models.
- Wheat - Mondelēz International implemented a strengthened charter of farming practices in Europe, deeply rooted in regenerative agriculture, as part of the company's Harmony Ambition 2030. This includes working with partner farmers to diversify crop rotation and integrating decision tools to help optimize fertilizer use while piloting trainings for farmers through the Harmony Academy platform, a smartphone application encouraging the adoption of regenerative agriculture practices and promoting soil health as well as through the first-ever Harmony Tour, a dedicated training program on the ground.
- Dairy - In Europe, the company is working with several dairy suppliers on greenhouse gas reduction programs at the farm level, already achieving reductions of ~6
-10% CO2e vs. their baselines.
- Operations: Reducing the company's global manufacturing footprint by transitioning towards renewable electricity, improving manufacturing plant efficiencies, and substituting cleaner energy.
- Renewable Electricity - Advanced the use of renewable electricity across Company-owned manufacturing facilities through power purchase agreements (PPAs), on-site solar panels and renewable energy credits (REC) sourcing from wind and solar power sources.
- Manufacturing Plant Efficiencies - Initiated investments in several of the Company's European operations to expand state-of-the-art manufacturing facilities and invest in newer technologies such as electric ovens to reduce natural gas use.
- Transition to Bioenergy - Substituted cleaner energy at some of the Company's operations.
- Logistics: Focusing on investing in new mobility concepts, reducing warehouse emissions by converting to renewable sources, and improving efficiency of distribution networks by optimizing routes, improving truck and container utilization, and reducing travel distances.
- Intermodal and Mobility Concept Initiatives - Partnered with Indian Railways and utilized coastal waterways network to improve distribution, enabling CO2e emission reductions for select routes.
- Warehouse Emission Reductions - Achieved CO2e emission reductions in one of the Company's largest distribution centers by installing solar rooftop panels connecting to an existing electricity grid.
- Distribution Efficiencies - Reduced Direct Store Delivery transport idle time and improved vehicle fill rate across U.S. Mondelēz distribution networks.
"We are actioning business transformation and making strong progress, but the road to Net Zero requires global collaboration across industries, sectors and landscapes to unlock innovative and collaborative solutions allowing us all to go further, faster," said Christine Montenegro McGrath, Senior Vice President and Chief Global Impact and Sustainability Officer at Mondelēz International. "We remain focused on leveraging proven models and available solutions, while at the same time using our scale and influence to help drive technical advancement, public-private collaboration and investment to incubate innovation."
In addition to these accomplishments, Mondelēz International continues to explore collaborative financing and innovation incubation through platforms like Sustainable Futures, the Company's impact investment platform, while advancing research and development in climate-smart technology and practices to implement at the sourcing level, across supply chain and in owned operations and through to brand, packaging and consumption.
About Mondelēz International
Mondelēz International, Inc. (Nasdaq: MDLZ) empowers people to snack right in over 150 countries around the world. With 2022 net revenues of approximately
Contacts: Maggie McKerr
1-847-943-5678
news@mdlz.com
1 Additional detail about our ESG goals and progress against our goals can be found in our recently published 2022 Snacking Made Right report under "Our ESG Progress" and "About Our ESG Goals" on pages 10-11 and 78.
View additional multimedia and more ESG storytelling from Mondelēz International on 3blmedia.com.
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SOURCE: Mondelēz International
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