Mondelez Updates Palm Oil Supplier Requirements

Palm Fruit

Chicago —Mondelez International, Inc. is enhancing requirements for its palm oil suppliers to improve traceability, monitoring and action against deforestation and forced labor, the CPG company reports. From 2021, the supplier will require traceable, forest-monitored palm oil from mills across its supply chain.

Under the new requirements, suppliers will have to take full responsibility for eliminating deforestation in their own operations and upstream supply chain; improve traceability and transparency by identifying all mills attributed to the company on Global Forest Watch, and have no active grievances against concessions in their direct supply chain, or operated by the same producer groups elsewhere; leverage third-party monitoring to demonstrate implementation of supplier progress; and take action against exploitation of workers in the supply chain and mitigate risks in their own operations, Mondelez reports.

“AAK is delighted that Mondelez International has enhanced its commitment to sustainable palm oil, and is committed to working with Mondelez International to achieve its goals,” says Jan Lenferink, vice-president of AAK AB. “Sustainability is key to AAK’s future, including palm oil sustainability in particular. It is critical that representatives along the supply chain join forces to continue the momentum towards a fully sustainable palm oil industry. As one of the key leaders in the market, Mondelez International sends a strong message with its new announcement, joining AAK as a catalyst for change.”