Reducing our impact on climate change
External experts have stated and you may have heard: The climate of our earth is changing. The planet is getting warmer. Sea levels are rising. Weather patterns are shifting. The planet’s natural resources are being depleted faster than they can be replenished. Clean water and fertile, arable land are becoming particularly constrained.
There are many points of view and perspectives on how to tackle a complex issue like climate change. Everyone needs to contribute - governments, businesses and individuals. At Mondelēz International we know we have a role to play and that we can have a meaningful impact.
We communicate our strategy on climate change through the Carbon Disclosure Project (CDP). You can review our submissions from 2004 to 2011 on the CDP site.
Palm oil and deforestation:
We source palm oil predominantly from Malaysia and Indonesia, and to a lesser degree from Colombia, Brazil, Mexico and West Africa. Currently, we purchase less than 0.6% of worldwide production as the market is very fragmented.
We are concerned about the potential long-term environmental and social impacts of palm oil production, including deforestation and human rights.
We are taking steps to ensure that the palm oil we buy is produced on legally held land, does not lead to deforestation or loss of peat land, respects human rights, including land rights, and does not use forced or child labor.
Specifically, palm oil development should not take place in Primary Forest, High Conservation Value (HCV) areas, High Carbon Stock (HCS) forests, or use of fire in plantation operations.
We have reviewed our approach with our palm oil suppliers and expect them to provide us transparency on the proportion of their supplies traceable to plantations meeting these principles by the end of 2013.
During early 2014, we will review these results and publish an action plan during Q2 2014 to give priority to supplies that meet these principles, and eliminate supplies that do not, by 2020 at the latest.
We work with WWF to evaluate options and will report on our progress and findings annually.
While we recognize its limitations, the Roundtable for Sustainable Palm Oil (RSPO) provides the most widely supported approach to developing and enforcing standards for sustainable palm oil production. We're purchasing RSPO certified palm oil (covering about 70% of our use in 2012*) and plan to cover 100% of our requirements by 2015*.
We are also working with United Nations Development Programme (UNDP), the Government of Indonesia, and other partners to develop the Indonesia Sustainable Palm Oil (SPO) Initiative. The initiative aims to develop national capacity to promote and scale up sustainable palm oil by strengthening smallholder farmers, supporting national policy reform and reducing deforestation through public-private partnerships. The SPO has established a national multi-stakeholder palm oil platform to develop strategies to address smallholder capacity building; environmental management and monitoring; governance and mediation for land titles; and strengthening the ISPO standard.
* Through RSPO segregated and mass-balance oil, as well as Greenpalm certificates which support sustainable production.