Mondelēz International has advanced its requirements for sustainable palm oil sourcing with enhanced traceability, monitoring and action against deforestation and forced labour.
As part of its new requirements, any supplier to Mondelēz must provide satellite monitoring that covers all palm oil concessions which supply mills attributed to the company, ensuring traceability.
All mills must be identified on Global Forest Watch and suppliers must have third-party assurance of their monitoring process and systems. The company also requires its suppliers to take action against exploitation of workers in the palm oil supply chain.
By its first quarter of 2021, Mondelēz expects 80% of its palm oil to be sustainably sourced under these enhanced expectations with strong supplier partnership.
Quentin Roach, chief procurement officer at Mondelēz, said: “As a company we are continuing to pioneer partnership and action with our suppliers to ensure they share and actively support not only our commitment, but the larger collective commitment to realise a forest positive future where a highly efficient ingredient like palm oil is sustainably sourced across the sector.”
Mondelēz says the enhanced sourcing requirements will improve transparency across the sector by requiring suppliers to showcase sustainable sourcing practices across their entire supply chain by 2025, not just the portion supplied to Mondelēz International.
“AAK is delighted that Mondelēz International has enhanced its commitment to sustainable palm oil, and is committed to working with Mondelēz International to achieve its goals. It is critical that representatives along the supply chain join forces to continue the momentum towards a fully sustainable palm oil industry,” said Jan Lenferink, VP of AAK AB.
In 2018, Mondelēz called upon its palm oil suppliers to act faster to eliminate deforestation and excluded 12 suppliers from its supply chain as a result of breaches against its sustainable palm oil commitments.
Earlier this year, the company released its latest Snacking Made Right report in which it stated that it would continue to honour its maintenance of 100% Roundtable on Sustainable Palm Oil (RSPO) coverage in palm oil.