Mondelēz asks: How can Procurement Boost Sustainability?
Mondelēz International has released its 2024 ‘Snacking Made Right’ report, exploring how the company uses procurement to catalyse sustainability transformation, creating positive outcomes for communities, climate and long-term business resilience.
The report provides measurable updates on targets related to climate action and responsible sourcing and details how Mondelēz is preparing for compliance through enhanced reporting systems and risk controls.
With 70% of the company’s carbon footprint linked to raw materials, procurement is key to reaching its net-zero emissions goal by 2030.
“I’m proud of our team for staying focused and agile in challenging times," comments Dirk Van de Put, Chair and CEO of Mondelēz International.
"The progress detailed in this report would not be possible without our dedicated and passionate people; our strong partnerships with suppliers, customers and non-governmental organizations (NGOs); and our multiple collaborations with industry coalitions, including the Consumer Goods Forum (CGF) and the World Cocoa Foundation (WCF).
“As we progress in 2025, we remain focused on executing with excellence against our long-term growth strategy, including continuing to invest in our focused approach to creating a more sustainable business at scale.”
Responsible sourcing embedded in business strategy
Mondelēz sources key ingredients through sustainability-focused programmes, such as:
- Cocoa Life: This US$1bn programme focuses on tackling child labour, improving farmer livelihoods and promoting agroforestry. In 2024, 91% of cocoa for chocolate brands was sourced via Cocoa Life, to reach 100% by 2025
- Harmony Wheat: This promotes regenerative practices and biodiversity protection, with mandatory and best-practice farming standards, by covering 100% of wheat for European biscuit production.
The company views sustainable ingredient sourcing as vital to the resilience of the communities and environments from which it sources and to its business success.
Not only does Mondelēz have a dedicated Procurement Policy and Supplier Code of Conduct that outlines environmental and social expectations, but its strategic sourcing decisions are guided by sustainability, service and cost. Responsible sourcing is overseen by board committees to monitor ESG goals and a Chief Impact & Sustainability Officer who leads the strategy execution.
Christine Montenegro McGrath, Chief Impact & Sustainability Officer at Mondelēz, says: “Focusing on collaboration across all stakeholders remains at the heart of our sustainability strategy. I’m grateful to work alongside talented, dedicated teams at Mondelēz International, as well as passionate partners in the supplier, customer and NGO communities.
“I’m proud of the opportunity to learn from each other, challenge ourselves and co-create impactful solutions. Together, I’m confident that we will continue to deliver sustainable business growth and long-term value for our many stakeholders."
Supplier engagement and procurement tools
Mondelēz is committed to building mutually-beneficial partnerships with suppliers that align with the company’s sustainability and ethical standards.
Suppliers are expected to adhere to public policies, including the Corporate Social Responsibility Requirements and the Supplier Code of Conduct.
Both the expenditure approval process and procurement policy govern procurement actions to ensure these maintain supply security, value for money and ethical compliance. Buyers also received training on managing and identifying supply chain sustainability risks.
Mondelēz supports suppliers in improving their sustainability performance through programmes such as Supplier LOCT, EcoVadis Partnership and Partnering for People and Planet.
In 2024, the company sponsored 52 suppliers to participate in Supplier LOCT courses, recognised 39 suppliers sponsored by peer companies and achieved its enterprise wide Economic Inclusion and Supplier Diversity (EISD) spending goal by the end of 2024.
- 96% of packaging is designed to be recyclable
- 91% of cocoa used in chocolate brands is sourced through Cocoa Life
- 12% greenhouse gas emissions reduction across the value chain (vs 2018)
- 84% of net revenue came from Mindful Portion snacks
- 37% CO2 emissions reductions across manufacturing operations (vs 2018)
- 54% of electricity used in manufacturing sites (vs 45% in 2023)
By combining supplier training and support, industry collaboration and governance, Mondelēz ensures sustainability can enhance supplier performance and procurement decisions across the value chain.
Integrating ESG into procurement governance
Mondelēz integrates ESG considerations into its procurement governance framework to ensure sustainability impacts decision-making across every stage of procurement.
The company’s Expenditure Approval Process and Procurement Policy help guide buyers to make procurement decisions that are aligjed with security of supply and ESG compliance.
The Sourcing Recommendation Committee (SRC) also offers structured oversight of sourcing decisions. It is comprised of procurement leaders and reviews spend decisions to ensure that they align with both business and sustainability priorities.
Procurement staff receive training and access to tools to help them identify and evaluate sustainability risks in supply chains. Tools include resources such as Global Forest Watch to support climate and deforestation risk assessments.
Mondelēz International’s procurement governance maintains a strong focus on sustainability through buyer governance, internal controls, strategic governance structures and supplier requirements to integrate ESG holistically.
This ensures ESG goals impact how sourcing decisions are measured and made.
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