Mondelēz International Commits to 2050 Net Zero Emissions Target
- Commits to a net zero emissions target across Scopes 1, 2 and 3
- Will establish near-term emissions-reduction targets in the next two years, in line with the Science Based Targets Initiative (SBTi) "Business Ambition for 1.5°C Pledge"
- Marks bold step forward in ambition to build a more sustainable snacking company
CHICAGO, Nov. 01, 2021 (GLOBE NEWSWIRE) -- Mondelēz International, Inc. (Nasdaq: MDLZ) today announced it is committing to a 2050 target of net zero greenhouse gas emissions across its full value chain. As part of its commitment, Mondelēz International has signed the Science Based Targets Initiative's Business Ambition for 1.5°C, aligning its long-term emissions mitigation targets with the ambitious aim of limiting temperature rise in accordance with the Paris Agreement. Mondelēz International has also joined the United Nations Race to Zero Campaign to help build momentum towards a decarbonized economy. These commitments mark a bold step forward in Mondelēz International's differentiated approach to sustainability that is helping drive lasting progress at scale and create long-term value for the business and its stakeholders.
"For the last several years, we've worked with the Science Based Targets initiative to reduce our emissions footprint and our announcement today will help accelerate our existing efforts to create a more sustainable snacking company," said Dirk Van de Put, Chairman and Chief Executive Officer. "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."
This new commitment builds on the company's existing science-based targets set in 20201 developed to contribute to combatting climate change. Over the next two years, the company will lay out a time-bound plan including interim targets for its key emissions sources consistent with the 1.5°C protocol and will provide annual progress reviews for transparency as laid out by the Science Based Target initiative.
End-to-End Approach to Net Zero Target
Mondelēz International's approach to ESG is designed with the goal of enabling the company to deliver lasting change at scale by prioritizing where it can have the greatest impact, focusing on innovative and measurable solutions, and collaborating to drive sector-wide transformation. The company will take an end-to-end approach in its aim to reach its net zero emissions target by focusing efforts across key areas and delivering against its existing goals and targets:
Sustainably Sourced Ingredients2 and Packaging:
- Source 100% cocoa volume for chocolate brands through Cocoa Life Program by 2025
- Source 100% wheat volume for EU biscuits through the Harmony Program by 2022
- Design 100% of packaging to be recycle ready by 2025
- Reduce overall virgin plastic use by 5% and reduce overall virgin rigid plastic by 25% by 20253
Mondelēz International Operations:
- Continue to convert global manufacturing electricity footprint to renewable energy
- Reduce food waste by 15% in manufacturing and 50% in distribution by 20254
- Work toward achieving energy efficiency for biscuit ovens and steam boilers
- Start replacing thermal fuels (e.g., natural gas, diesel, gasoline) with "green" alternatives
- Invest in new mobility concepts including electric and hydrogen trucks
- Reduce warehouse emissions at both owned and third-party facilities by converting to renewable energy sources
- Improve efficiency of distribution networks by optimizing routes, improving truck & container utilization, increasing intermodal solutions and reducing traveled distances
Building on Existing Commitments and Actions
"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," said Chris McGrath, VP & Chief of Global Impact & Sustainability. "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."
To date, the company's continuous efforts to drive meaningful change at scale have led to significant progress in the sustainable sourcing5 of key ingredients and energy, water and waste reductions across company-owned manufacturing operations that the net zero target will build upon and accelerate. In the past year, the company made significant progress against, and exceeded many, of its existing 2020 and 2025 targets, including:
Sustainable Ingredients6 2025 Targets:
- 68% of cocoa volume for chocolate brands sourced through Cocoa Life Program
- 99% palm oil sourced from suppliers aligned to the company's 2020 Palm Oil Action Plan
Environmental Impact 2020 Achievements7:
- 24% reduction in CO2e from manufacturing, exceeding the target of 15%
- 33% reduction in priority water usage, exceeding the target of 10%
- 31% reduction in total waste from manufacturing, exceeding the target of 20%
For further information on Mondelēz International's sustainability strategy, goals and progress, please see the company's 2020 Snacking Made Right Report.
About Mondelēz International
Mondelēz International, Inc. (Nasdaq: MDLZ) empowers people to snack right in over 150 countries around the world. With 2020 net revenues of approximately $27 billion, MDLZ is leading the future of snacking with iconic global and local brands such as Oreo, belVita and LU biscuits; Cadbury Dairy Milk, Milka and Toblerone chocolate; Sour Patch Kids candy and Trident gum. Mondelēz International is a proud member of the Standard and Poor's 500, Nasdaq 100 and Dow Jones Sustainability Index. Visit www.mondelezinternational.com or follow the company on Twitter at www.twitter.com/MDLZ.
This press release contains forward-looking statements. Words, and variations of words, such as "will," "may," "expect," "intend," "plan," "commitment," "target" and similar expressions are intended to identify these forward-looking statements, including, but not limited to, statements about transformation of Mondelēz International's business and creation of long-term value for Mondelēz International's business and its stakeholders; Mondelēz International's target of net zero greenhouse gas emissions; Mondelēz International's efforts to create a more sustainable snacking company; and Mondelēz International's other environmental, social and governance strategies, goals, targets and initiatives. These forward-looking statements are subject to a number of risks and uncertainties, many of which are beyond Mondelēz International's control, which could cause Mondelēz International's actual results to differ materially from those indicated in Mondelēz International's forward-looking statements. Please also see Mondelēz International's risk factors, as they may be amended from time to time, set forth in its filings with the U.S. Securities and Exchange Commission ("SEC"), including its most recently filed Annual Report on Form 10-K. Mondelēz International disclaims and does not undertake any obligation to update or revise any forward-looking statement in this press release, except as required by applicable law or regulation. In addition, historical, current and forward-looking sustainability-related statements may be based on standards for measuring progress that are still developing, internal controls and processes that continue to evolve, and assumptions that are subject to change in the future. The information included in, and any issues identified as material for purposes of, this document may not be considered material for SEC reporting purposes. In the context of this disclosure, the term "material" is distinct from, and should not be confused with, such term as defined for SEC reporting purposes.
2 Sustainably sourcing principles found at CocoaLife.org and Harmony.info
3 Baseline 2020 and assuming constant portfolio mix
4 Baseline 2018
5 Sustainable sourcing defined at CocoaLife.org and Harmony.info
6 2020 Actuals
7 Baseline 2013
|Contacts:||Maggie McKerr (Media)||Shep Dunlap (Investors)|