Mondelēz excludes 12 suppliers from its palm oil supply chain
Mondelēz International has called on palm oil suppliers to act faster to eliminate deforestation, and has excluded 12 suppliers from its supply chain as a result of breaches against its sustainable palm oil commitments.
Mondelēz has called on its suppliers to map and monitor all palm oil plantations and concessions as it aims to achieve its 100% sustainability and 100% transparency across its palm oil supply chain.
To achieve this, the company has called on its suppliers to commit to palm oil concession mapping, enabling Mondelēz and its suppliers to identify and focus on areas of highest risk for deforestation, and the company claims that the publication of concession maps is “not progressing fast enough.”
In 2016, Mondelēz asked its suppliers to map all mills they buy from, as well as their own concessions, and engage their upstream suppliers to publish concession maps. The company says that it now requires suppliers to provide universal, group-wide concession maps for upstream suppliers as a condition of doing business.
The company has also called on its suppliers to act faster to eliminate deforestation in their supply through time-bound remediation plans or it will cancel their supply contracts, as demonstrated by the exclusion of the 12 suppliers.
Jonathan Horrell, global director of sustainability at Mondelēz International said: “Mondelēz International remains fully committed to driving change in the palm oil sector and today’s actions against 12 upstream suppliers reflect that commitment.
“We will continue to pursue existing and new initiatives that seek to drive effective change across palm oil-growing communities.
“The company understands that this complex challenge can only be solved through collaboration with all actors in the palm oil supply chain, from growers to suppliers and buyers, as well as local and national government and non-governmental organizations.”