Dive Brief:
- Mondelez announced Monday it has cut ties with 12 palm oil suppliers, claiming they are engaged in deforestation practices.
- The food giant said "there remains a gap" between the current state of its palm oil supply chain and its goal of 100% transparency and sustainability.
- Mondelez called on suppliers to map their palm oil concessions, which helps to identify areas at risk of deforestation.
Dive Insight:
With controversy surrounding the palm oil industry, large food companies using the ingredient need to ensure their supply chains are free from poor environmental and labor practices.
Greenpeace published a scathing report on Mondelez's palm oil supply chain practices, accusing the food giant of clearing rainforests and destroying orangutan habitats, despite its stated commitment to transparent and sustainable palm oil sourcing.
"If Mondelez is serious about 'building the best snacking company in the world,' then it needs to drop dirty palm oil and stop sourcing from destructive producer groups," the report said.
Mondelez's announcement of cutting ties with 12 suppliers did not mention the Greenpeace report, but it's clear the company doesn't want anything standing in the way of its goal of 100% sustainability and transparency in its palm oil supply chain.
"While Mondelez International supports efforts to identify companies growing palm oil unsustainably and provide an opportunity to reform, engagement must deliver results," the company said.
The food giant said progress on concession mapping has not advanced at a fast enough pace and said maps for upstream suppliers will be a requirement going forward and a "condition of doing business."
