US confectionery and snacks giant Mondelēz International will only accept palm oil that is ‘traceable’ and ‘forest-monitored’ from its supply chain from 2021, the company announced on 3 September.
The owner of Oreo cookies and Cadbury chocolates said it expected that 80% of its palm oil would be sustainably sourced by the first quarter of 2021.
The new requirements included traceability to plantation and satellite monitoring covering all palm oil concessions and supplying mills attributed to the company. This was in line with the deforestation criteria set out in the company’s Palm Oil Action Plan.
In addition, suppliers would have to have third-party assurance of their monitoring process and systems used and be subject to cross-check by Mondelēz.
The enhanced requirements would require suppliers to confirm sustainable sourcing practices across their entire supply chain by 2025, not just the portion supplied to Mondelēz.
“We have a unique opportunity to help create a future where sustainable practices are universal across the palm oil sector,” the company’s chief procurement officer Quentin Roach said.
“As a company we are continuing to pioneer partnership and action with our suppliers to ensure they share and actively support not only our commitment, but the larger collective commitment to realise a forest-positive future where a highly efficient ingredient like palm oil is sustainably sourced across the sector.”
Suppliers to the company would also be required to take action against exploitation of workers in the palm oil supply chain.
Mondelēz International has operations in more than 80 countries, producing and selling primarily snacks, including biscuits, chocolate, chewing gum and confectionery, as well as cheese and powdered beverage products.
