CHICAGO — Mondelez International, Inc. on Nov. 1 committed to a 2050 target of net zero greenhouse gas emissions across its full value chain, a strategy the company said marks a bold step forward in its differentiated approach to sustainability.
As part of its commitment, Mondelez 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. In addition, Mondelez has joined the United Nations Race to Zero Campaign to help build momentum toward a decarbonized economy.
Mondelez said the new commitment builds on the existing science-based targets the company established in 2020 as part of its effort to help combat climate change.
“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."
To achieve its goal, Mondelez said it plans to source 100% of its cocoa volume for chocolate brands through its Cocoa Life program by 2025, source 100% of its wheat volume for EU biscuits through the Harmony Program by 2022, design 100% of packaging to be recycle-ready by 2025, and reduce overall virgin plastic use by 5% and reduce overall virgin rigid plastic by 25% by 2025.
Operationally, the company said it intends to continue working to convert global manufacturing electricity footprint to renewable energy and to work toward achieving energy efficiency for biscuit ovens and steam boilers. Mondelez also is seeking to reduce food waste by 15% in manufacturing and 50% in distribution by 2025.
Logistically, plans call for continued investment in new mobility concepts, including electric and hydrogen trucks and a reduction in warehouse emissions at both owned and third-party facilities by converting to renewable energy sources.
“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, vice president and chief of global impact and 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.”
Mondelez’s announcement comes just a few days after Grupo Bimbo de CV made a similar pledge. Additionally, Grupo Bimbo renewed its $1.75 billion revolving credit facility of (RCF) as sustainability-linked debt, marking the company’s debut in sustainable financing.
Diego Gaxiola, chief financial officer of Grupo Bimbo, said the RCF “perfectly aligns with our philosophy of building aa sustainable, highly productive and deeply humane company.”