Mondelēz prices inaugural green bond offering amid improved sustainable sourcing strategies

06 Sep 2021 --- Mondelēz International has successfully placed its first green bond, the largest ever green bond in the Packaged Foods and Consumer Goods Industry. 

The green bond issuance totals €2 billion (US$2.3 billion) and consisted of €650 million (US$771 million) of 0.250 percent notes due September 2029, €650 million (US$771 million) of 0.625 percent notes are due September 2032 and €700 million (US$830 million) of 1.250 percent notes due September 2041. 

“Our purpose – to empower people to snack right – guides our company and the impact we seek to have on people and the planet. We remain laser-focused on building a more sustainable snacking company, and this green bond issuance is an important testament to our commitment to advancing our ESG agenda,” says Dirk Van de Put, chairman and CEO.

Part of a wider strategy
Mondelēz intends to allocate the net proceeds from the offering to eligible projects that further its commitment to more sustainably sourced ingredients, reducing waste in packaging and tackling climate change. 

The eligible project categories – environmental management of natural resources and land use, more sustainable water and wastewater management, pollution prevention and control, renewable energy, energy efficiency, and clean transportation – are designed to protect and regenerate the environment and are in alignment with the UNs Sustainable Development Goals. 

Within these categories, focus areas that are aligned to Mondelēz International’s ESG priorities include:

• Sourcing Sustainable Ingredients

Mondelēz International is focused on the supply of key raw materials. As one of the world’s largest chocolate manufacturers, the company’s signature sustainable sourcing program, Cocoa Life, invests in innovation, collaboration and on-the-ground support for nearly 200,000 farmers to address the issues cocoa farming communities face.

• Reducing Waste in Packaging

Mondelēz aims to find new, smarter plastic packaging solutions that use less virgin material and advance harmonized approaches to recycling systems and infrastructure. Funds will go toward efforts to create a more circular economy where packaging, including flexible film, is reused or recycled.

• Tackling Climate Change

Last year Mondelēz International joined the Science Based Targets Initiative (SBTI) and set greenhouse gas emissions reduction targets consistent with helping keep global warming well below 2°C. These goals extend to reducing the environmental impact of growing the commodities essential to the business.

Proceeds from €2 billion (US$2.3 billion) will lend support to crucial sustainability initiatives, says the global snacks business.“Now more than ever is the time for companies to do what’s right and drive more sustainable business growth. ESG investment is a critical element of that mission,” adds Chris McGrath, vice president and chief of global impact and sustainability. 

“This offering reflects our commitment to doing business the right way to reduce our impact on the environment, have a positive influence on society and advance sector-wide lasting change. We look forward to working with our stakeholders to continue advancing these initiatives.”

A bold framework
Institutional Shareholder Services ESG (ISS ESG), a leading global provider of environmental, social, and corporate governance research and ratings, has published a Second Party Opinion (SPO) on Mondelēz International’s green bond framework. 

ISS ESG reviewed Mondelēz International’s green bond framework and found that the planned use of proceeds is consistent with Mondelēz International’s sustainability strategy and material ESG topics. 

ISS ESG’s SPO offers investors additional insight into the alignment of Mondelez International’s green bond framework with the Green Bond Principles.

Mondelēz will publish annual updates on the allocation of the proceeds until the proceeds have been fully allocated to projects meeting the eligibility criteria. 

In June, Mondelēz began a food transparency program with the Triscuit brand. Consumers can discover the journey of the white-winter wheat baked into Triscuit crackers from a cooperative of farmers’ fields in Michigan, US, to where the product is made.

Meanwhile, Mondelēz’s innovation and venture hub, SnackFutures, launched CoLab, a start-up engagement program for early-stage snack brands with a well-being positioning.

Edited by Elizabeth Green