FDBusiness.com

Mondelez International has published its sustainable palm oil action plan, which prioritizes suppliers that meet the company’s sustainability principles and requires suppliers to achieve traceability by the end of 2015. In addition, suppliers must publish sustainable sourcing policies and implementation timelines by the same date.

The action plan – unveiled during the recent Roundtable for Sustainable Palm Oil’s (RSPO) European Roundtable conference in London- was developed in consultation with World Wildlife Fund (WWF) and the United Nations Development Programme (UNDP).  The plan bolsters Mondelez International’s long-term commitment to only buy palm oil that’s produced on legally held land; that doesn’t lead to deforestation or loss of peat land; respects human rights, including land rights; and doesn’t use forced or child labor.  Mondelez International plans to eliminate supplies that do not comply. The company will report progress annually.

“Sustainable palm oil is important for the long-term growth of our business and should be universal and accessible to all,” says Dave Brown, Vice President of Global Commodities and Strategic Sourcing.  “So, rather than pursue a segregated supply from an existing pool of certified plantations, our priority has been to add momentum to efforts to transform the entire palm oil sector.  We’re driving change to make sustainable palm oil a reality by embedding this policy into our commercial negotiations with suppliers.”

Mondelez International’s sustainable palm oil action plan builds on several years of engaging numerous stakeholders, including WWF, UNDP and national governments, as well as challenging its suppliers. In 2013, the company conducted a survey to determine suppliers’ ability to trace palm oil supplies to known sources.  Also that year, the company achieved RSPO coverage for 100 percent of the palm oil it bought, two years ahead of its commitment.

The palm oil action plan is part of the company’s Call For Well-being to urge its employees, suppliers and community partners to join together to develop innovative approaches that can have a positive impact for the planet and its people.  The call to action focuses on four areas critical to the well-being of the world and where the company can make the greatest impact: sustainability, mindful snacking, community and safety. 

The palm oil action plan complements Mondelez International’s wider commitment to sustainably source key agricultural commodities.  Its 10-year, $600 million investments in signature programs Cocoa Life and Coffee Made Happy are helping farmers create thriving communities.  In addition, Harmony, the company’s successful European wheat-sourcing program, is promoting biodiversity and good environmental practices.