Mondelēz International goes for “green” with 2050 net-zero emissions pledge

02 Nov 2021 --- In solidarity with the COP26 summit in Glasgow, snacking giant Mondelēz International is planning net-zero greenhouse gas (GHG) emissions across its value chain by 2050. This move aligns its mitigation targets with that of the Paris Agreement to reduce rising global temperatures.

Dirk Van de Put, chairman and CEO of Mondelēz International, says: “We’re transforming how we do business across our operations and with the suppliers and farmers we work with – from seeking to improve cocoa farming practices in West Africa to promoting regenerative agriculture in wheat fields in the Midwest United States.” 

As part of its commitment, Mondelēz signed the Science-Based Targets Initiative’s Business Ambition for 1.5 degrees celsius and joined the United Nations Race to Zero Campaign to build momentum toward a decarbonized economy.

This follows  Mondelēz’s work in the last few years to reduce its emissions footprint and create a more sustainable snacking company.

Mondelēz International will source all its cocoa for chocolate brands.

Recyclable packaging for snacks
Food and beverage brands are set to play a significant role in efforts to mitigate global warming. Global leaders warn that failure to curb the rising temperatures to 1.5 degrees will result in fierce competition for resources such as food and water.

Mondelēz will initiate interim targets to achieve their zero GHG emissions targets and provide annual progress reviews.

The company will source all its cocoa for chocolate brands via the Cocoa Life Program by 2025 and its wheat volume for EU biscuits via the Harmony Program by next year.

Another important goal for Mondelēz is that its packaging be “recycle ready” in the coming four years. This includes overall virgin plastic use, which should be reduced by 5% and virgin rigid plastic by up to 25% for the same period.

Green energy to power confectionery operations
Switching to green alternative fuels is essential for Mondelēz to achieve its zero GHG emissions target. The company has replaced thermal fuels such as natural gas, diesel and gasoline with renewables. 

In addition to this, the company will convert its global manufacturing electricity footprint to renewable energy, reduce food waste by 15% in the manufacturing process and by 50% in distribution.

Mondelēz also plans to realize energy efficiency for biscuit ovens and steam boilers.

Chris McGrath, vice president and chief of global impact and sustainability, explains: “While we’ve already made significant progress, the road to net-zero will require further transformation of our business as well as global collaboration across industries, sectors and landscapes.”

In the coming years, the company will invest in mobility concepts, including electric and hydrogen trucks. The distribution networks will be streamlined to be efficient by improving transport routes, truck and container use and by increasing intermodal options.

“We will 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,” says McGrath.

Consumer demand drives how brands are positioned. Innova Market Insights concurs that one of the most significant shifts it observes is that the planet's health is a top concern for consumers – even outpacing personal health.

Lu Ann Williams, global insights director of Innova, says: “Sustainability is no longer just a Wall Street issue. It might not be the top purchase driver for all consumers, but for many, it clinches the deal when it comes to choosing between products.”

By Inga de Jong

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