Mondelēz International advances sustainable palm oil sourcing with enhanced traceability

Starting next year, the snacks company will expect traceable, forest-monitored palm oil from mills across supply chain.

Mondelēz International has advanced its sustainable sourcing goals with new requirements set out for traceable, forest-monitored palm oil.

The new requirements include traceability to plantation and satellite monitoring covering all palm oil concessions supplying mills attributed to the company, against the deforestation criteria set out in its Palm Oil Action Plan. It will be compulsory for all mills to be identified on Global Forest Watch, with no active grievances against concessions in their direct supply, or operated by the same producer groups elsewhere. In addition, suppliers must have third-party assurance of their monitoring process and systems used, and be subject to cross-check by Mondelēz International.

Quentin Roach, chief procurement officer for Mondelēz International, commented: “As a company, we are continuing to pioneer partnership and action with our supplier to ensure they are 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.”

From Q1 2021, the company will expect 80% of its palm oil to meet these enhanced expectations with improved supplier partnership, working to increase coverage as quickly as possible.

Mondelēz International is confident that the enhanced sourcing requirements will improve transparency across the sector by requiring suppliers to confirm sustainable sourcing practices across their entire supply chain by 2025, not just the portion supplied to Mondelēz International. They form part of Mondelēz International long-term ambition to eliminate deforestation and forced labour in the palm oil supply chain, and support the aims of the Consumer Goods Forum #Forestpositive Coalition.

Jan Lenferink, vice-president of AAK, added: “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. Sustainability is key to AAK’s future, including palm oil sustainability in particular. It is critical that representatives along the supply chain join forces to continue the momentum towards a fully sustainable palm oil industry.”