Wednesday 12th Dec 2018 - Logistics Manager Magazine

Mondelēz fires 12 palm oil suppliers

Mondelēz International has fired 12 of its palm oil suppliers, which it says are not acting fast enough to eliminate deforestation.

The company, which owns Cadbury’s, said it wants its palm oil supply chain to be 100 per cent sustainable and transparent.

It wants suppliers to commit to palm oil concession mapping which enables Mondelēz and its suppliers to identify and focus on areas of highest risk for deforestation.

“Unfortunately, publication of concession maps is not progressing fast enough. In 2016, Mondelēz International asked its suppliers to map all the mills they buy from on Global Forest Watch, as well as their own concessions, and engage their upstream suppliers to publish concession maps on GFW. Although strong progress has been made on first two, the company is now requiring them to provide universal, group-wide concession maps for upstream suppliers as a condition of doing business.

It also wants suppliers to act faster to eliminate deforestation in their palm oil supply through time-bound remediation plans or Mondelēz International will cease contracts with upstream suppliers engaged in deforestation. While Mondelēz International supports efforts to identify companies growing palm oil unsustainably and provide an opportunity to reform, engagement must deliver results. Therefore, Mondelēz International is excluding of 12 upstream suppliers as a result of breaches.

“Mondelēz International remains fully committed to driving change in the palm oil sector and today’s actions against 12 upstream suppliers reflect that commitment,” said Jonathan Horrell, global director of sustainability.