Snacking Made RighT 2020 ESG Report - Mondelez International

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Snacking Made RighT 2020 ESG Report - Mondelez International
Snacking Made RighT
2020 ESG Report
Snacking Made RighT 2020 ESG Report - Mondelez International
Performance            Right Snack        Right Moment         Right Way           Sustainable Ingredients            Governance
Overview    Table of contents   CEO Q&A    About us   Our purpose   Our approach       Materiality   ESG priorities    Our ESG progress

From global favorites such as Cadbury                                                                                               Leading the future of snacking
                                                                                                                                    We’ve been leading the future of snacking and have our
Dairy Milk chocolate, Oreo cookies and                                                                                              eyes and energies firmly set on the years to come. Guided
                                                                                                                                    by our purpose, we are forging ahead in our own distinctive
Trident gum to new go-tos such as Hu’s                                                                                              way to make snacking right for everyone. Our way is
plant-based, paleo snacks – at Mondelēz                                                                                             characterized by progress, priorities and partnerships. We
                                                                                                                                    are building a sustainable snacking company and putting
International, we’re here to empower                                                                                                our focus on long-term sustainable business outcomes.
people to snack right.                                                                                                              To this end, we prioritize for biggest impact, advocate for
                                                                                                                                    and invest in transformational approaches, and collaborate
                                                                                                                                    with public and private partners – to achieve better, longer
The right snack, for the right moment,                                                                                              lasting results sooner and at scale.

made the right way, is how we say it.                                                                                               Staying true to our purpose and priorities
                                                                                                                                    2020 was an extraordinary year on this multi-year
And we’re dedicated to bringing this to                                                                                             journey. A year where we all faced the immense
life for all kinds of people, around the                                                                                            challenges of the global COVID-19 pandemic. Throughout,
                                                                                                                                    we stayed true to our purpose and priorities, and close to
world, every day. This is what guides and                                                                                           our colleagues, consumers and communities. We worked
galvanizes us, and how we live up to our                                                                                            together like never before to tackle the challenges, and
                                                                                                                                    above all put people first, as we continued to safely and
Environmental, Social and Governance                                                                                                smartly do what we do best – bring consumers much-
                                                                                                                                    needed moments of sustenance, comfort and indulgence.
(ESG) responsibilities.
                                                                                                                                    Focusing on key issues
                                                                                                                                    Through the year, a number of key issues came to
                                                                                                                                    the fore. Issues such as the increasing importance to
                                                                                                                                    consumers of health and well-being; the growing focus
                                                                                                                                    on the realities of living incomes for cocoa growing
                                                                                                                                    communities; the need to address root causes of systemic
                                                                                                                                    issues like deforestation and diversity, equity and
                                                                                                                                    inclusion (DE&I); and the importance of working toward
                                                                                                                                    collective action and advocating for public-private
                                                                                                                                    partnership to tackle some of the biggest problems
                                                                                                                                    challenging our world today, including climate change
                                                                                                                                    and plastic pollution

                                                                                                                                    This report shines a light on the issues as we share the
                                                                                                                                    story of how we empower people to snack right, the
                                                                                                                                    progress we’re making and the impact we are having
                                                                                                                                    along the way.

                                                                                                                                    We hope you enjoy the report. (We’ve certainly done our
                                                                                                                                    best to make it good enough to eat…)

MONDELĒZ INTERNATIONAL SNACKING MADE RIGHT 2020 ESG REPORT                                                                                                                                         2
Snacking Made RighT 2020 ESG Report - Mondelez International
Performance                Right Snack        Right Moment            Right Way            Sustainable Ingredients                   Governance
Overview
Overview        Table of contents
                Table of contents   CEO Q&A    About us      Our purpose    Our approach       Materiality          ESG priorities    Our ESG progress

Table of contents

Performance                                         Right Moment                                             Right Way
CEO Q&A                                        4    Overview                                       17        Overview                                    26   Cocoa Life                                  43
About us                                       5    Landscape & Insights                           18        Landscape & Insights                        27   Conserving and restoring cocoa-landscapes   44
Our purpose                                    6    Mindful snacking                               19        Diversity, Equity & Inclusion               28   Improving the economics of cocoa farming    46
Our approach                                   7    Portion control                                20        Workplace safety                            30   Creating empowered cocoa communities        47
Materiality                                    8    Labeling & Marketing                           21        Workplace wellness                          31   Our progress                                48
ESG priorities                                 9    Nutrition partnerships                         22        Human rights                                32   Continuing to make cocoa right              49
Our ESG progress                              10    Making a difference where it counts            23        Climate                                     34   Wheat                                       50
                                                    Impact Investing                               24        Energy                                      35   Harmony Wheat                               51
Right Snack                                                                                                  Packaging                                   36   Palm oil                                    52
Overview                                      11                                                             Waste                                       38   Leading a forest positive future            53
Landscape & Insights                          12                                                             Water                                       39   Looking forward                             54
Innovating for consumers                      13
Broad portfolio & Well-being                  14                                                             Sustainable Ingredients                          Governance
Evolving our portfolio                        15                                                             Overview                                    40   Overview                                    55
Food safety & Quality                         16                                                             Ingredients                                 41   Compliance & Governance                     56
                                                                                                             Cocoa                                       42   UN SDGs                                     58
                                                                                                                                                              Closing letter                              59

Right Snack                                         Right Moment                                             Right Way                                        Sustainable Ingredients
FIND OUT MORE                                       FIND OUT MORE                                            FIND OUT MORE                                    FIND OUT MORE

MONDELĒZ INTERNATIONAL SNACKING MADE RIGHT 2020 ESG REPORT                                                                                                                                                 3
Snacking Made RighT 2020 ESG Report - Mondelez International
Performance                           Right Snack                 Right Moment             Right Way             Sustainable Ingredients                   Governance
Overview
Overview               Table of contents                CEO Q&A
                                                        CEO Q&A    About us       Our purpose     Our approach       Materiality          ESG priorities    Our ESG progress

An Interview                                                            Laura: The past year has been one of the most
                                                                        challenging. How did Mondelēz International
                                                                                                                                   Sustainable Futures is just that – an impact
                                                                                                                                   investment platform funding the innovation,
                                                                                                                                                                                       Cocoa sourcing is clearly a big focus of
                                                                                                                                                                                       ours given our portfolio. Our $400 million

with Dirk
                                                                        continue to drive positive change and                      incubation and collaboration that will unlock       Cocoa Life program delivers measured
                                                                        advance its ESG strategy?                                  long-term, self-sustaining solutions in our key     impact on the ground in our cocoa growing

Van De Put
                                                                                                                                   areas of focus: addressing climate change,          communities, leading to improved farmers’
                                                                        Dirk: Snacking Made Right is the lens through              eliminating plastic waste and thriving building     livelihoods, more sustainable use of land and
                                                                        which we define ESG, and our strategy is                   ingredient sources.                                 women’s empowerment.

and Christine
                                                                        focused on lasting, meaningful and positive
                                                                                                                                   We also supported those struggling from the         We believe greater diversity of perspectives,
                                                                        impact on the world. It drives us to take care of
                                                                                                                                   impacts of COVID-19, donating $30 million           approaches, partners and diverse employees

McGrath
                                                                        our people, protect our resources and empower
                                                                                                                                   globally to relief efforts.                         bring about better business outcomes. We
                                                                        and respect the people our business touches
                                                                                                                                                                                       established bold goals for Economic Inclusion
                                                                        around the world.
                                                                                                                                   Laura: How does ESG impact our long-                and Supplier Diversity, including spending
                                                                        Last year our purpose, empower people to                   term success?                                       $1 billion with women and minority-owned
EVP & General Counsel Laura Stein sits                                  snack right, was more important than ever.                                                                     businesses by 2024.
with CEO Dirk Van de Put and Chief of                                   Our purpose alongside our sustainable growth               Dirk: Our purpose – empower people to snack
                                                                                                                                   right – drives everything we do. ESG is core        Looking ahead, we have focused 2025 goals
Global Impact Christine Montenegro                                      strategy is tied intrinsically to our ESG strategy.
                                                                                                                                                                                       including 100% of our packaging designed
                                                                        With our global size and scale, we have the                to our purpose. ESG metrics are integrated
McGrath to discuss our distinctive way                                                                                                                                                 to be recyclable, and 100% of cocoa volume
                                                                        ability and responsibility to deliver on our               across our organization to enhance and drive
of making snacking right.                                               commitments, look ahead to the future and                  stakeholder value.                                  for chocolate brands sourced through Cocoa
                                                                                                                                                                                       Life, and achieving our Science Based Target
                                                                        enhance transparency in our progress.                      Our ESG efforts play a direct role in the success   Initiative (SBTi) climate goals in line with expert
                                                                        2020 was indeed difficult but it brought out the           of our business and are directly embedded           recommendations to keep global warming well
                                                                        best in Mondelēz International. We accelerated             within our financial measures. Through this         below 2 degrees.
                                                                        our commitments. I am incredibly proud of the              approach we are able to achieve significant,
                               Dirk Van de Put                                                                                     business-impacting results.                         We prioritize where we can have the greatest
                               Chairman & CEO
                                                                        strong progress our people delivered driving
                                                                                                                                                                                       impact, focus on measurable outcomes, and
                               Mondelēz International                   positive change and I am excited about the
                                                                                                                                   Clear long-term goals, measurable progress          seek partnerships to drive scale.
                                                                        lasting impact we are leading for the future.
                                                                                                                                   and transparency are vital to building trust
                                                                                                                                   with our stakeholders, and this trust must          Laura: What does the future of Snacking
                                                                        Laura: Has Mondelēz International changed
                                                                                                                                   be earned through action and maintained             Made Right look like?
                                                                        its approach to ESG in light of the pandemic?
                                                                                                                                   through enhanced disclosure and dialogue.
                                                                                                                                                                                       Dirk: I envision a future company that is more
                               Christine                                Chris: As part of our business strategy our                Our consumers, our customers, our colleagues,
                                                                                                                                                                                       sustainable, diverse, transparent and one that
                               Montenegro McGrath                       ESG strategy focus is where we can make the                and our investors want to support a company
                               Vice President and                                                                                                                                      offers an array of choice to consumers.
                                                                        biggest difference. We continually review and              they trust and that’s why ESG is woven into the
                               Chief of Global Impact
                               and Sustainability                       evolve our initiatives as we work to emerge                fabric of our business.                             The importance of well-being will only continue
                               Mondelēz International                   stronger and create a future where people                                                                      to grow.
                                                                        and planet thrive. Our ESG strategy has                    Laura: What were you particularly proud of
                                                                                                                                                                                       We have work to do in accelerating our
                                                                        not changed, but we remain collaborative,                  last year, and what do you want to continue
                                                                                                                                                                                       progress in diversity, equity and inclusion,
                                                                        innovative and transformative in our                       to accomplish?
                                                                                                                                                                                       but we are making good progress. A big step
                                                                        approaches to make strong progress and define
                               Laura Stein                                                                                         Chris: I am incredibly proud of our teams,          forward was expanding our commitments,
                                                                        our future focus.
                               EVP Corporate & Legal                                                                               whose work led us to exceed our 2020                including the commitment to double U.S. Black
                               Affairs, General Counsel                 The pandemic highlighted the immediate need                                                                    representation in management by 2024.
                               Mondelēz International                                                                              Snacking Made Right goals in key areas like CO₂,
                                                                        to accelerate efforts to empower communities               water and waste reduction. Moving forward, we       Snacking Made Right will guide us to this future,
                                                                        – especially underprivileged communities our               will continue to target our efforts where we can    and it will evolve as we deliver the right snack,
                                                                        business touches. We rolled up our sleeves and             and should affect meaningful change at scale,       for the right moment, made the right way.
                                                                        created approaches that can be part of holistic            such as in cocoa, plastics, and diversity, equity
                                                                        solutions to some of the biggest challenges                and inclusion.
                                                                        our world faces today. The 2020 launch of
Reference page 10 of this report for baseline figures

MONDELĒZ INTERNATIONAL SNACKING MADE RIGHT 2020 ESG REPORT                                                                                                                                                                               4
Snacking Made RighT 2020 ESG Report - Mondelez International
Performance                        Right Snack               Right Moment             Right Way               Sustainable Ingredients                            Governance
Overview
Overview              Table of contents            CEO Q&A     About us
                                                               About us     Our purpose        Our approach       Materiality              ESG priorities           Our ESG progress

About us
What we do                                                                                                             Our impact
We love consumers. And we love snacks—they’re our world, and we want                                                  Empowering people to snack right—it’s our way to grow well as a
                                                                                                                      business, and do well for people and the planet, and it’s about real
                                                                                                                                                                                                                                             $1B+
to make that world right for everybody.                                                                                                                                                                                                      We are investing over $1B to positively
                                                                                                                      lasting and positive impact.                                                                                           impact people and the planet in local
                                                                                                                                                                                                                                             communities.1
2020 NET REVENUES BY CATEGORY                                                      Beverages
                                                                                   4%                                  2020 ACHIEVEMENTS

                                                                                                                       99%                                                      68%                                                       20+%
                                                                                                                       palm oil sourced from suppliers                                                                                    reduction in CO₂ emissions from
                                                                                                                                                                                of our cocoa volume for our chocolate
                                                                                                                       aligned to our Palm Oil Action Plan.                                                                               manufacturing. (baseline 2013)
                                                                                                                                                                                brands sourced sustainably via Cocoa
                                                                                                                                                                                Life, and 100% cocoa volume for global
Biscuits
48%
                                                     Chocolate
                                                     31%
                                                                            Gum
                                                                            & Candy
                                                                                           Cheese
                                                                                           & Grocery
                                                                                                                       67%                                                      chocolate brands.
                                                                                                                                                                                                                                          16%
                                                                                                                       child labor due diligence via Child                                                                                snacks revenue from portion control
                                                                                                                                                                                30+%
                                                                            10%            7%                          Labor Monitoring and Remediation                                                                                   options.
                                                                                                                       Systems (“CLMRS”) across Cocoa Life
                                                                                                                                                                                reduction in priority water usage.
                                                                                                                                                                                                                                          $1B
                                                                                                                       communities in Ghana.
MARKET SHARE

                                                                                                                       94%                                                      30+%                                                      announced global DE&I public
                                                                                                                                                                                                                                          commitments including spending
                                                                                                                                                                                reduction in total waste from
                                                                                                                       packaging designed to be recyclable.                                                                               $1B with women and minority-

             #1                                #2                   #2                      #2
                                                                                                                                                                                manufacturing. (baseline 2013)
                                                                                                                                                                                                                                          owned businesses annually and
                                                                                                                                                                                                                                          doubling U.S. Black representation in
             biscuits*                         chocolate            candy                   gum                                                                                                                                           management by 2024.

                                                                                                                       1
                                                                                                                        Includes $450 million in donations, both cash and products, since 2012, and a $400 million investment in our Cocoa Life program
                                                                                                                       Reference page 10 of this report for baseline figures

Our reach                                             2020 NET REVENUES BY REGION                                      Our brands
We are a global snacking                                                                                               Oreo and Chips Ahoy! cookies,
                                                      North America         Europe
business with a strong                                31% ($8.2B)           38% ($10.2B)                               belVita and RITZ biscuits, Cadbury
local presence.                                                                                                        Dairy Milk, Milka, and Toblerone
                                                                                                                       chocolate, Sour Patch Kids candy,
79K+        We have approximately
            79,000 employees
                                                                                                                       and Trident gum to name a few –
                                                                                                                       from global brands to local jewels,

>150        Our snacks are enjoyed                                                                                     we make and bake great snacks
            in over 150 countries                     Latin                       AMEA                                 for millions of people around the
                                                      America                     22% ($5.7B)                          world every day.
                                                      9% ($2.5B)

*2020 category position. Source: Euromonitor

MONDELĒZ INTERNATIONAL SNACKING MADE RIGHT 2020 ESG REPORT                                                                                                                                                                                                                     5
Snacking Made RighT 2020 ESG Report - Mondelez International
Performance              Right Snack         Right Moment             Right Way            Sustainable Ingredients                  Governance
Overview
Overview      Table of contents    CEO Q&A     About us       Our purpose
                                                                  purpose   Our approach       Materiality        ESG priorities       Our ESG progress

Our purpose
We empower people to snack right.
We do it by offering…
                                                                                                                 Right Snack                                  Right Moment
                                                                                                                 BROAD PORTFOLIO + WELL-BEING                 EASY ACCESS + MINDFUL SNACKING

                                                                                                                 Make a broader                               Offer a range of snacks from
                                                                                                                 assortment of delicious,                        indulgent to wholesome
The right snack…                                                                                                 high-quality snacks,                                and everything in
This is about giving people a wide range of high-quality snacks                                                  iconic global and local                               between, convenient
                                                                                                                 brands that nourish                                     and innovative
so they can make great informed choices. From indulgent treats
                                                                                                                 life’s moments.                                          formats, always
to wholesome bites, we want to create snacks that people truly                                                                                                             locally relevant.
love and feel good about.

…for the right moment…
This is about making it easy for people to enjoy snacks
wherever they are in the world, whatever time of day and to do
so mindfully.
                                                                                                                                        Right Way
…made the right way                                                                                                                     SUSTAINABLE SNACKING + TAKE A STAND

This is about taking the lead in making sure our snacks are not                                                                         Celebrate our proud heritage as
only right for people but also right for the planet – from the raw                                                                      makers and bakers, advance our
                                                                                                                                        sustainable sourcing and
materials we rely on, to the communities we live in and work                                                                            packaging and obsess over
with and the climate we all need to care for.                                                                                           consumer-inspired quality.

Our values                                                                     Our ESG ambition: building a sustainable snacking company
Our three values guide how we make snacking right.
Across Mondelēz International around the world, we
all do everything we can to:

                                                                                Sustainably                  Minimal impact                 Diverse, inclusive               Products that meet   Zero packaging
                                                                                sourced ingredients          on climate &                   & engaged                        evolving consumer    waste & circular
                                                                                from empowered               landscape                      workforce                        snacking needs       pack economy
                                                                                communities
Love our consumers        Grow every day        Do what’s right
  and our brands

 FIND OUT MORE                                                                                                                     Strong governance

MONDELĒZ INTERNATIONAL SNACKING MADE RIGHT 2020 ESG REPORT                                                                                                                                                           6
Snacking Made RighT 2020 ESG Report - Mondelez International
Performance               Right Snack         Right Moment                Right Way          Sustainable Ingredients                   Governance
Overview
Overview       Table of contents    CEO Q&A      About us        Our purpose      Our approach
                                                                                      approach     Materiality        ESG priorities    Our ESG progress

Our Approach
As part of living our purpose and values, we have a clear and                                                                                        Spotlight on business strategy
distinctive approach to ESG. It is aligned to our business strategy
and we have set public commitments to achieve meaningful                                                                                             At Mondelēz International, we are focused on our
                                                                                          Prioritize where
progress and drive positive, lasting change.                                              we can have the                                            three strategic priorities: growth, execution and
                                                                                           largest impact                                            culture. We’re accelerating consumer-centric growth;
Our approach is informed by our understanding of the issues that                                                                                     we’re driving excellence in execution; and we’re
are most material to us as a business and to the communities we                                                                                      building a winning growth culture.
touch, and in turn by the priorities we have set for ourselves along                Focus on           Take a
our value chain – from cocoa bean to chocolate bar, from biscuit                   long-term       collaborative                                       FIND OUT MORE
bake to happy belly. Working together in collaboration with                       sustainable        approach
partners, external advisors, regulators and stakeholders, we focus                 outcomes
on maximizing our long-term positive impact.

                        Right Snack                                                              Right Moment                                                                Right Way

       Broad portfolio                        Well-being                           Easy access                       Mindful snacking                       Sustainable snacking              Take a stand
    We offer a wide range                  We renovate and                      We help consumers                    We inspire mindful                      We strive to create a      We stand up for what we
   of delicious, high-quality           innovate our portfolio                   with easy access                   ways of snacking, to                   future where people and      believe and do business
    snacks from indulgent                to satisfy consumers’                  to the right snacks                help people savor each                        planet thrive.              the right way.
        to wholesome.                   current and changing                   throughout their day.                bite and experience
                                           well-being needs.                                                         more satisfaction.

MONDELĒZ INTERNATIONAL SNACKING MADE RIGHT 2020 ESG REPORT                                                                                                                                                        7
Snacking Made RighT 2020 ESG Report - Mondelez International
Performance               Right Snack           Right Moment               Right Way                           Sustainable Ingredients                 Governance
Overview
Overview       Table of contents     CEO Q&A      About us        Our purpose                   Our approach         Materiality
                                                                                                                     Materiality      ESG priorities    Our ESG progress

Materiality                                                                                                  We have identified four social and environmental issues that
                                                                                                             are most material to building a successful sustainable snacking
                                                                                                             company and have a clear focus of action for each one:
At Mondelēz International, we are committed
to focusing where we can make the biggest
difference and deliver the greatest long-term
positive impact. We go about this in a disciplined
and determined way.
Since 2012, we have worked with internal and external                                                                                                                             1. Safety
experts to review the impact of major environmental and                                                                                                         Promote the safety of our people and products.
societal issues on our business and shape our strategic
                                                                                                                                                                              2. Supply security
response and action plans.                                                                                                                                    Focus on key agricultural commodities and social
                                                                                                                                                             challenges in the supply chain, including sustainable
Our Board of Directors and the Governance, Membership                                                                                                         agriculture and human rights management within
and Public Affairs Committee of the Board are actively                                                                                                         our signature programs for cocoa and palm oil
involved in our environmental and social agenda as part of                                                                                                                      and operations.
the Governance, Membership and Public Affairs Committee,
the Mondelēz International Leadership team, as well as our                                                                                                               3. Environmental footprint
regional business units and global functions.                                                                                                               Improve environmental impact across our operations,

                                                                                Importance to Stakeholders
                                                                                                                                                               supply and communities. Covering our primary
We validate our long-term targets and associated action                                                                                                      ingredients, product packaging and manufacturing.
plans with external experts including Quantis and gather
                                                                                                                                                                          4. Consumer well-being
feedback from various investment groups. Additionally,                                                                                                        Promote improved health and well-being through
we consider perspectives from our ongoing stakeholder                                                                                                         portfolio enhancements, package messaging and
engagement, as well as actively engage with various ESG                                                                                                                   community partnerships.
ratings and indices and we advance our disclosure.

This two-way dialogue informs our ESG ambition, which
defines our concept of social and environmental materiality.
Our Board actively oversees this concept.

Materials and processes that guide our assessment include
our Enterprise Risk Management (ERM) program for
identifying, measuring, monitoring and managing risks;
external affairs analysis of stakeholder and regulatory issues;
the greenhouse gas, land and water footprint of our total
company; proprietary consumer insight data; and publicly
available data on societal issues, including statistics and
reports from authorities, NGOs and peer companies.

                                                                                                                                              Influence on Business Success

MONDELĒZ INTERNATIONAL SNACKING MADE RIGHT 2020 ESG REPORT                                                                                                                                                           8
Snacking Made RighT 2020 ESG Report - Mondelez International
Performance              Right Snack           Right Moment            Right Way              Sustainable Ingredients                   Governance
Overview
Overview      Table of contents   CEO Q&A       About us      Our purpose      Our approach       Materiality          ESG priorities
                                                                                                                       ESG priorities    Our ESG progress

ESG                                                         ENVIRONMENTAL
                                                            Reducing Our Environmental Impact
                                                                                                                       SOCIAL
                                                                                                                       Empowering People & Communities
                                                                                                                                                                               GOVERNANCE
                                                                                                                                                                               Promoting Strong Governance

Priorities
                                                            & Sourcing Sustainably                                                                                             Throughout The Company
                                                                                                                • Social Impact – Promoting human rights
                                                     • Ingredients – Transformational signature                   across our business and empowering              Implementing governance supporting
                                                        sourcing programs across key raw materials                 underprivileged communities                     and driving our public commitments to
We do everything we can to                              including Cocoa (Cocoa Life), Wheat (Harmony                                                               environmental and social progress enabled by:
                                                                                                                • Well-being – Empowering consumers with
                                                        Wheat), and Palm Oil (Palm Oil Action Plan)                                                                • Strong board oversight
make snacking right for everyone                        with a focus on holistic approaches to
                                                                                                                   choices, mindful snacking habits and portion
our business touches — from                                                                                        control                                         • A culture of accountability and compliance
                                                        building resilience in these supply chains by
the farmers and communities                             implementing and innovating approaches to               • Diversity, Equity & Inclusion – Championing     • Aligned incentives across our business
we work closely with to source                          grow more efficiently in a way that enhances               progress for our colleagues, culture &          • Proactive two-way dialogue with stakeholders
                                                        the land and improves the economics of                     communities
key ingredients through to the
                                                        farming these raw materials                             • Quality & Safety – Providing high-quality,
consumers who enjoy our snacks.
                                                     • Climate – Combating climate change with                    safe food and fostering a culture of zero
To be effective, particularly in the fight              an end-to-end, science based, and third                    incidents and zero defects
against climate change, plastic pollution               party verified approach focused on reducing
and human rights infringements, we need                 emissions in our operations and our sourcing
to recognize our impact on the world,                   of key raw materials
prioritize and focus our programming on              • Packaging – Creating zero net waste
action we know is transformational and                  packaging by investing collaboratively in
attainable – so we can have a measurable                the innovation of materials, education and
and lasting long-term impact, faster.                   infrastructure to improve recycling globally
To this end, our priorities flow from our
materiality evaluation.

Our strategic focus areas and 2025 goals
                                                     2025 Goals
map to the areas of our business that                We focus on achieving meaningful, clearly-                 Packaging                                          Diversity, Equity & Inclusion
account for our greatest opportunity to              defined, long-term sustainable business goals              • 1 00% packaging designed to be recyclable and   • Double representational percentage of
make a positive lasting impact on the                against which we measure our ESG progress.                   labeled with recycling information                  women in executive leadership (2024)
environment and communities. They are
also aligned to what is most material to our                                                                    •5
                                                                                                                  % reduction in overall virgin plastic           • Double representational percentage of Black
long-term business success. By focusing              ENVIRONMENTAL                                              •2
                                                                                                                  5% reduction in virgin rigid plastic               colleagues in U.S. management (2024)
our efforts in these areas, we can drive             Ingredients                                                                                                   • $1 billion spent annually with minority- and
sustainable business growth and deliver              • 100% cocoa volume needed for our chocolate                                                                    women- owned businesses (2024)
                                                        brands sourced through Cocoa Life                        SOCIAL
meaningful progress in reducing our                                                                                                                                Quality & Safety
                                                                                                                Social Impact
environmental impact and empowering                  • 100% EU wheat sourced through Harmony                                                                      • 100% Global Food Safety Initiative certification
                                                                                                                 •H
                                                                                                                   uman rights due diligence for 100% Cocoa
people and communities.                                 (by 2022)                                                                                                     for manufacturers and suppliers
                                                                                                                  Life communities in West Africa
                                                     • 100% palm oil continued RSPO certified,                 •C
                                                                                                                  ontinued investment in Sustainable Futures      • 0.5 World-Class Total Incident Rate
                                                        traceable to mill, sourced from suppliers                ventures and funds                                   consistently achieved
  FIND OUT MORE ABOUT OUR                               with Mondelēz Palm Oil Action Plan (POAP)
  ENVIRONMENTAL FOOTPRINT
                                                        policy compliance                                       Well-being
                                                                                                                •2
                                                                                                                  0% global net revenue from portion control
                                                     Climate                                                     snacks
                                                     • 10% end-to-end CO₂ emissions reduction
  FIND OUT MORE ABOUT OUR                                                                                       • 100% mindful snacking labeling across
  MATERIALITY ASSESSMENT                             • 10% water reduction                                        packaging globally
                                                     • 15% food waste in manufacturing reduction                                                                  Reference page 10 of this report for baseline figures

MONDELĒZ INTERNATIONAL SNACKING MADE RIGHT 2020 ESG REPORT                                                                                                                                                                 9
Snacking Made RighT 2020 ESG Report - Mondelez International
Performance                     Right Snack        Right Moment         Right Way                    Sustainable Ingredients                        Governance
Overview
Overview             Table of contents   CEO Q&A    About us   Our purpose          Our approach              Materiality          ESG priorities      Our ESG
                                                                                                                                                           ESG progress
                                                                                                                                                               progress

Our ESG
                                                                         TOPIC                                    GOALS                                                                       2020 PROGRESS            ESG
                                                                         Right Snack

Progress
                                                                                                                                                                                              On track
                                                                         Well-being                               Grow well-being snacks by 2X core***
                                                                                                                                                                                              Roadmap developed

                                                                         Right Moment
We are committed to regularly and                                                                                 20% snacks net revenue from portion control snacks by 2025*
                                                                                                                                                                                              On track
                                                                                                                                                                                              16%
transparently reporting our progress.                                    Portion control
                                                                                                                                                                                              On track
                                                                                                                  Mindful Snacking: Snack Mindfully portion icon on all packs by 2025***
                                                                                                                                                                                              14%
We have achieved or exceeded all
                                                                         Right Way
but one of our 2020 goals; indeed we
                                                                                                                  Cocoa Life: 100% volume for chocolate brands sourced through                On track
achieved a number of them ahead of                                                                                Cocoa Life by 2025*                                                         68%
schedule. We are on track against our                                                                             Harmony Wheat: 100% wheat for EU biscuits sourced through                   On track
2025 goals.                                                                                                       Harmony by 2022*                                                            76%
                                                                                                                                                                                              On track
                                                                         Sustainable ingredients                  Palm oil forest monitored: 100% by 2025****
                                                                                                                                                                                              to report in 2021
We have communicated that we are tracking
                                                                                                                                                                                              Achieved
adoption of standards such as those published                                                                     Palm oil RSPO certified: 100% by 2025 (since 2013)
                                                                                                                                                                                              100%
by the Sustainability Accounting Standards                                                                        Palm from suppliers aligned with Palm Oil Action Plan/policy:               On track
Board (“SASB”) and the Task Force on Climate-                                                                     100% by 2025 (since 2014)                                                   99%
related Financial Disclosures (“TCFD”). We will                                                                   CO₂: 15% reduction in CO₂ emissions across manufacturing                    Exceeded
reflect shareholder feedback as we continue to                                                                    operations by 2020**                                                        -24%
align our sustainability reporting with evolving                                                                                                                                              Exceeded
                                                                         Environmental impact                     Water: 10% reduction in priority water usage by 2020**
standards. For more information on the areas                                                                                                                                                  -33%
of alignment between those standards and                                                                                                                                                      Exceeded
                                                                                                                  Waste: 20% reduction in total waste from manufacturing by 2020**
                                                                                                                                                                                              -31%
our current disclosure please visit our website
                                                                                                                                                                                              Exceeded
where we have published SASB and TCFD                                                                             Reduction: 65,000 tonnes packaging elimination by 2020**
                                                                                                                                                                                              68kT
indices and further data.                                                Packaging innovation
                                                                                                                  Recycability: 100% of packaging designed to be recycled, labeled with       On track
                                                                                                                  recycling info by 2025                                                      94%
LONG-TERM GOALS DRIVING SUSTAINABLE
BUSINESS GROWTH THE RIGHT WAY FOR                                                                                 Human Rights: 100% human rights due diligence system coverage in own        Achieved
PEOPLE AND PLANET                                                                                                 operations & tier-1 suppliers by 2025                                       100%
Reducing environmental impact &                                                                                   Child labor: monitoring & remediation measures at 100% Cocoa Life           On track
                                                                         Social sustainability
sourcing sustainably, empowering people                                                                           communities in West Africa by 2025***                                       28%
and communities.                                                                                                  Invest in innovative Sustainable Futures ventures and funds                 On track

Promoting accountability, strong board                                                                            Double representation percentage of Black colleagues in
                                                                                                                                                                                              On track
oversight, transparency, stakeholder                                                                              U.S. management ***
engagement, aligned incentives.                                          Diversity, Equity
                                                                                                                  $1 billion in diverse supplier spend globally by 2024****                   On track
                                                                         & Inclusion
                                                                                                                  Increase representation percentage of women in executive leadership roles   Strong
CATEGORY KEY:                                                                                                     by 2024**                                                                   34%
                                                                                                                  Consistently achieve 100% Global Food Safety Initiative certification for   On track
      Environmental
                                                                                                                  manufacturers and suppliers                                                 100%
                                                                         Quality & Safety
      Social                                                                                                                                                                                  Strong
                                                                                                                  Consistently achieve world-class Total Incident Rate of 0.5
                                                                                                                                                                                              10% TIR reduction 2020
      Governance
                                                                                                                  Cage Free Eggs: 100% N.A. by 2020***; 100% global by 2025                   On track
                                                                         Other
                                                                                                                  (excl. Russia and Ukraine)***                                               100% N.A., 27% global
* 2012 baseline
** 2013 baseline                                                        KPI reporting excludes acquisitions
*** 2018 baseline
**** 2020 baseline

MONDELĒZ INTERNATIONAL SNACKING MADE RIGHT 2020 ESG REPORT                                                                                                                                                                   10
Performance             Right Snack         Right Moment                Right Way           Sustainable Ingredients   Governance
Overview   Landscape        Innovating      Broad portfolio   Evolving        Food safety
           & Insights       for consumers   & Well-being      our portfolio   & Quality

                                                                                                                                   We’re committed to offering a wide
                                                                                                                                   range of delicious, high-quality snacks
                                                                                                                                   that make people feel good, and to
                                                                                                                                   keep improving and innovating to
                                                                                                                                   meet our consumers’ evolving well-
                                                                                                                                   being needs.

RIGHT
SNACK
                                                                                                                                   GOAL PROGRESS
                                                                                                                                   We created five new well-being
                                                                                                                                   brands across the U.S. and EU.

                                                                                                                                   UN Sustainable
                                                                                                                                   Development Goals
                                                                                                                                   Top tier: We focus on a priority SDG
                                                                                                                                   where we can make the biggest impact:

                                                                                                                                   Additional tier: We also seek to positively
                                                                                                                                   impact the following SDGs:
                                                                                                                                   9 – Industry, Innovation and Infrastructure
                                                                                                                                   17 – Partnership for the Goals

MONDELĒZ INTERNATIONAL SNACKING MADE RIGHT 2020 ESG REPORT                                                                                                                        11
Performance             Right Snack         Right Moment                Right Way           Sustainable Ingredients   Governance
Overview   Landscape        Innovating      Broad portfolio   Evolving        Food safety
           & Insights       for consumers   & Well-being      our portfolio   & Quality

Landscape & Insights
As consumer needs continue to change, we keep evolving
and innovating to offer the right range of snacks.

                                                    TUNING INTO THE EVOLVING ROLE                                                  HELPING PEOPLE TO FEEL GOOD
                                                    SNACKING PLAYS IN PEOPLE’S LIVES                                               Moreover, people increasingly want to feel
                                                    Snacking has always had a role in people’s                                     good about the snacks they eat – knowing
                                                    lives but that role is expanding and evolving                                  that they not only taste delicious but also
                                                    as they become busier than ever (at home                                       mindful of the implications to mind, body,
                                                    or on the go), as the definition of snacking                                   and planet.
                                                    continues to expand, and as people become
                                                    more conscious of the overall well-being of
                                                    self and planet.

                                                    EVOLVING MUCH-LOVED FAVORITES                                                  CREATING NEW WINNERS
                                                    People are keen to keep enjoying the                                           More than ever, innovations in snacking
                                                    traditional snacks they have loved for so                                      can make a big difference in providing the
                                                    long, but they are also increasingly concerned                                 right snacks for all kinds of consumer needs.
                                                    about well-being and environmental impacts.                                    These can take many forms, from inventing
                                                    So they are open to having their favorite                                      completely new snacks, to adding new
                                                    snacks evolved, for example by reducing sugar                                  variations for an existing portfolio.
                                                    or adding nutrition.

MONDELĒZ INTERNATIONAL SNACKING MADE RIGHT 2020 ESG REPORT                                                                                                                         12
Performance                           Right Snack              Right Moment                Right Way           Sustainable Ingredients         Governance
Overview               Landscape               Innovating      Broad portfolio   Evolving        Food safety
                       & Insights              for consumers   & Well-being      our portfolio   & Quality

INNOVATING FOR                                                         SNACKFUTURES™
                                                                       SnackFutures™ is our innovation and venture        SnackFutures™ is a key pillar of our

CONSUMERS
                                                                       hub dedicated to creating a portfolio of snacks    consumer-centric growth strategy. It seeks to
                                                                       that is good for people, kind to the planet        accelerate innovation and support incremental
                                                                       and deliciously fun. It is deliberately designed   growth against three key strategic areas:
                                                                       to push the boundaries of what’s possible in       invent new brands and businesses, invest in
To keep up with consumers’ evolving                                    snacking by focusing on consumer trends and        early stage entrepreneurs, and amplify the
needs, we have established a dedicated                                 unlocking emerging growth opportunities            SnackFutures™ impact with the CoLab startup
team that is focused on creating and                                   around the world.                                  engagement platform.
investing in unlocking the future of new
Well-being snacking offerings.

GOAL PROGRESS
Since its launch in 2019, SnackFutures™ has
launched five new well-being brands in the
U.S. and Europe (NoCOé, Dirt Kitchen Snacks,
CaPao, Millie Gram and Ruckus and Co), made                            GLOBAL CASE STUDY                                  GLOBAL CASE STUDY                                   GLOBAL CASE STUDY

minority investments in Uplift Food, Torr                              INTRODUCING CONSUMERS TO                           CREATING SNACKABLY                                  SNACKIFYING CLIMATE
and Hu (which was recently acquired by                                 THE WONDER OF CACAOFRUIT                           DELICIOUS VEGGIES WITH                              CHANGE WITH NOCOÉ
Mondelēz International), and established a                             WITH CAPAO                                         DIRT KITCHEN SNACKS                                 Millennial and Gen Z consumers
global footprint.                                                      As one of the world’s largest                      Dirt Kitchen Snacks is a                            are eager to play an active role
                                                                       producers of chocolate, we have                    new brand created by                                in protecting the planet and are
                                                                       done a great deal to achieve a                     SnackFutures™ to help solve consumers’ veggie       increasingly doing so through
“SnackFutures™ plays an important role in                             sustainable supply of key ingredients              dilemma. Consumers are trying to get more           the food choices they make. Given they are
  our company’s innovation pipeline and our                            with initiatives such as our Cocoa                 vegetables into their lives (91% according to a     also a generation of snackers, we saw the
  position as the leader in snacking, especially                       Life sustainable program. We discovered that       consumer survey) but there are barriers, like the   opportunity to create a brand that could enable
  as consumers’ needs are continually evolving.                        after the cocoa beans are extracted to make        time it takes to prepare them and convenient
  We are hyper consumer-centric and dedicated                                                                                                                                 this group to make a snackable impact on one
  to understanding those changing needs                                chocolate, the rest of the cacaofruit – about      ways to consume them. Importantly, consumers        of their top priorities – climate change.
  and developing snacking solutions to suit                            70% – is wasted. Through SnackFutures™ we          want more excitement when it comes to snacks.
  consumers’ lifestyles and values, such as                            were able to incubate a new brand built on         Dirt Kitchen Snacks are made by air drying real,    NoCOé is our first brand built by design to have
  reducing waste, seeking out functional                               the promise of rescuing and reimagining that       recognizable vegetables such as green beans,        a neutral carbon footprint. We do this in how
  benefits, and making products that are better                                                                                                                               we create the plant-based snack itself – using
  for the planet and deliciously fun!”                                 wasted cacaofruit. The outcome was CaPao.          and giving them some culinary love. Moreover,
                                                                       CaPao was created using upcycled cacaofruit        one of the product lines is created from upcycled   organic, local-first growing and production
                                                                       pulp and combining it with other simple, real,     produce, which helps to both reduce food waste      practices, short distribution circuits and
                                                                       plant-based ingredients into a completely new      and support farmers. Dirt Kitchen Snacks entered    sustainable packaging, and by offsetting our
                                                                       type of snacking experience. After the initial     into its pilot stage just before the pandemic       remaining impact 100% through partnerships.
                                                                       consumer testing in the UK, we pivoted to          hit and quickly pivoted to direct-to-consumer       The first product we created was a cracker
                                                                       pilot CaPao in about 15 stores throughout Los      and a dedicated influencer strategy to optimize     to cater to the highly popular French aperitif
                                                                       Angeles. In 2020, we made several product and      learnings, visibility and consumer experience.      occasion. We launched three varieties in 100
                                                                       packaging improvements based on consumer           The brand is seeing steady growth as it begins      stores in Paris in 2019 in strategic partnership
Brigette Wolf,                                                         and customer feedback. We are now in the           expanding distribution.                             with Franprix, one of the major retailers
Head of SnackFutures™                                                  process of scaling throughout southern                                                                 in France, as well as through e-commerce.
                                                                       California, and direct-to-consumer, while being                                                        To make the most of its potential, we are
                                                                       one of the first brands to pursue Upcycled                                                             focusing on growing the NoCOé portfolio and
                                                                       Certification.                                                                                         distribution.

Reference page 10 of this report for baseline figures

MONDELĒZ INTERNATIONAL SNACKING MADE RIGHT 2020 ESG REPORT                                                                                                                                                                   13
Performance                           Right Snack              Right Moment                Right Way           Sustainable Ingredients            Governance
Overview               Landscape               Innovating      Broad portfolio   Evolving        Food safety
                       & Insights              for consumers   & Well-being      our portfolio   & Quality

BROAD                                                                 OFFERING A BROAD PORTFOLIO
                                                                      We offer a broad range of delicious, high-quality
                                                                                                                            Better for You
                                                                                                                            This is about understanding and responding

PORTFOLIO &
                                                                      snacks – from indulgent bites to wholesome            to consumers’ dietary needs, for example by
                                                                      bars. We want to make sure our range keeps            offering reduced-sugar options or alternatives

WELL-BEING
                                                                      satisfying the diverse needs of millions of           with good ingredient swaps. For example:
                                                                      consumers around the world. For example, we are
                                                                      continuing to evolve our portfolio – innovating       • Cadbury Dairy Milk almond milk
                                                                      and renovating to broaden our offerings while         •G
                                                                                                                              ood Thins Gluten Free (US/Canada)
To meet the needs of our many                                         improving the nutritional credentials of snacks
                                                                                                                            •b
                                                                                                                              elVita Bakes and Bites – gluten free source of
different consumers, we offer a broad                                 our consumers have grown to love. We are also
                                                                                                                             fiber (Australia)
                                                                      living up to our responsibility to increase portion
range of snacks, with an increasing
                                                                      control options, and enhancing our focus on           Authentic, Natural, and Simple
focus on well-being.                                                  encouraging mindful snacking to empower               This is about making the most of nature’s           • Bournvita Crunchy wholegrain biscuits (India)
                                                                      consumers to enjoy more of our portfolio in ways      pure, potent and raw goodness harnessed and         • Oral B sugar free gum with fluoride (Europe)
                                                                      they can feel good about.                             untouched to give maximum taste and health
                                                                                                                                                                                • Clorets gum with activated charcoal (Japan)
                                                                      INCREASING OUR FOCUS ON WELL-BEING                    value. For example:
BROAD PORTFOLIO
& WELL-BEING PROGRESS                                                 We are increasing our focus on well-being.                                                                Permissible Indulgence

19
                                                                                                                            • L U BIO – organic biscuits (France)
                                                                      This involves a broader, more holistic approach                                                           This is about offering indulgent snacks with
                                                                      – one that takes in people’s emotional                •P
                                                                                                                              hiladelphia Intense – 100% natural ingredients   more permissible recipes, in smaller sizes or
                                                                      and functional needs. That’s why we keep               (Europe)                                           portion-controlled, so you don’t have to feel
                                                                      innovating, renovating and extending our                                                                  guilty about treating yourself now and then.
new well-being product                                                range of snacks to satisfy consumers’ current         Functional Nutrition                                For example:
launches in 2020                                                      and changing well-being needs. We focus on            This is about offering snacks that not only
                                                                      four key areas of opportunity here: Better for        taste good and give you sustenance but do           • Cadbury Simply Smooshed bars and Really
                                                                      You; Authentic, Natural, and Simple; Functional       good too. Snacks with fortification or positive        Nutty mixes (Australia)
GOAL PROGRESS                                                         Nutrition; and Permissible Indulgence.                nutritional benefits to protect, rebalance,
                                                                                                                                                                                • Lacta Intense Dark chocolate (Brazil)
                                                                                                                            recharge. For example:
Well-being
Our goal is to grow our well-being
snacks at two times the rate of our
traditional snacks by the end of
2020 and beyond. In 2020, our well-                                   GLOBAL CASE STUDY                                     GLOBAL CASE STUDY                                   GLOBAL CASE STUDY

being snacks grew 3%, 0.8x versus                                     WELCOMING HU TO THE FAMILY                            EMBEDDING BETTER ALL-ROUND                          CREATING A DELICIOUS
our traditional snacks. This was due                                  We’re excited to welcome Hu Products to               In Australia, The Natural Confectionary Company     GLUTEN-FREE OREO
to the strong performance of our                                      the Mondelēz International family of brands           (TNCC) launched reduced sugar and vegan             To give our existing Oreo customers more
traditional snacks, especially in the                                 following our acquisition of Hu Master Holdings.      options, with portion-control packs. The launch     options as well as open up the world of Oreo
U.S., and also COVID-19 lockdowns,                                                                                                                                              to new customers, we expanded the product
                                                                                                                            has been a big success, with $13m sales and +6%
which impacted performance in                                         Hu Products is a fast-growing snacking company                                                            portfolio to include two gluten-free offerings:
other countries.                                                                                                            growth in year one. Looking ahead, there are
                                                                      in the U.S. with a strict focus on Ultrasimple™                                                           Oreo Gluten-Free and Oreo Double Stuf Gluten-
                                                                                                                            plans to go further in 2021 with more options
Growth in traditional snacks                                          ingredients. It has been recognized with various                                                          Free cookies. These new versions give the same
                                                                                                                            including kombucha (added prebiotics).
outpaced growth in well-being                                         gold, silver and bronze medals in the “2019 Best                                                          great Oreo taste, gluten-free. With the addition
snacks year-on-year. Consumers’                                       Vegan Chocolate Awards.” In addition to its                                                               of these new offerings, the growing number
contemporary well-being definition                                    popular chocolate bars, Hu’s full product range                                                           of people with a gluten intolerance, gluten
is broader than in the past, so there                                 includes snacking and baking chocolate (Gems),
is a clear opportunity for health                                                                                                                                               sensitivities or those pursuing gluten-free diets
                                                                      chocolate-covered nuts and berries (Hunks), and                                                           can now enjoy our Oreo snacks, too.
and wellness-driven renovation and                                    grain-free crackers.
growth in our core categories.
                                                                      A pioneer in purpose-led paleo-friendly snacks –
                                                                      Hu is a great new addition to our well-being offer.
Reference page 10 of this report for baseline figures

MONDELĒZ INTERNATIONAL SNACKING MADE RIGHT 2020 ESG REPORT                                                                                                                                                                        14
Performance                           Right Snack              Right Moment                Right Way           Sustainable Ingredients          Governance
Overview               Landscape               Innovating      Broad portfolio   Evolving        Food safety
                       & Insights              for consumers   & Well-being      our portfolio   & Quality

EVOLVING OUR                                                           As well as creating new well-being
                                                                       snacks, we also focus on improving
                                                                                                                           • Reducing or removing ingredients people
                                                                                                                              don’t want
                                                                                                                                                                             SUGAR
                                                                                                                                                                             Sugar plays an important part in many of our

PORTFOLIO
                                                                                                                           • Changing and adding ingredients people         snacks, for example giving them great taste and
                                                                       the nutrition and ingredients of the                                                                  texture. We know some people want to limit
                                                                                                                              do want
                                                                       global brands and local jewels already                                                                their sugar intake as part of reducing calories.
                                                                       in our broad portfolio. In essence, this            • Sourcing ingredients locally, and more
                                                                                                                                                                             This aligns with the World Health Organization
To help people lead healthy lives,                                     is about reducing or removing what
                                                                                                                              sustainably
                                                                                                                                                                             and other health agencies’ advice to limit added
we focus on improving the nutrition                                    people don’t want and adding more of                REDUCING SODIUM, SATURATED FAT                    sugar to no more than 10% of daily calories. We
and ingredients of our snacks.                                         what they do.                                       AND TRANS FAT                                     have launched and continue to expand options
                                                                                                                           As part of our ambition to offer more options     with less sugar.
                                                                       Our evolution efforts come in many shapes and       and help people snack mindfully, we continue
                                                                                                                                                                             WHOLEGRAINS
PROGRESS % CHANGE OF                                                   sizes. In particular, we focus on:                  to reduce the amount of saturated fat and
                                                                                                                                                                             Most consumers do not get enough
WEIGHTED AVERAGE IN                                                                                                        sodium in our biggest-selling global brands
                                                                                                                                                                             wholegrains in their diet, so we try to provide
SNACKS PORTFOLIO                                                       • Enhancing communication, so consumers            and local jewels. We are also launching
                                                                                                                           new products and line extensions with less        them in our snacks. For example, our offers
                                                                          are super-clear about how to enjoy our                                                             with wholegrains include a new belVita variety
Sodium            -6.0% in     Sodium weighted                            snacks mindfully and responsibly (for more       saturated fat and salt without sacrificing the
                                                                                                                           quality, flavor or texture people have grown to   in China and new Chipsmore cookies with twice
                  2020 vs 2012 average in Snacks                          information on this see pages 19, 21 and 22 of
                               was essentially flat in                                                                     trust and love in our brands.                     as many oats in Malaysia. Over 25% of our
                                                                          this report)                                                                                       snack/biscuit products include wholegrains,
                               the last year (-0.3% in
                               2020 vs 2019)                           • Resizing products, so people can enjoy the                                                         but we continue to add more wholegrains to
Saturated         -6.7% in     We reduced saturated                       right portions (for more information on this                                                       our portfolio.
fat               2020 vs 2012 fat average in Snacks                      see page 20 of this report).
                               portfolio by 2.8% in
                               2020 vs 2019
Sugars            We kept sugars average flat (-0.3% in
                  2020 vs 2019 due to volume changes
                  between categories)
Wholegrain >9.5 billion servings of whole grain
           provided by our products in 2020, a
                                                                       GLOBAL CASE STUDY
           6% increase vs. 2019
                                                                       PUTTING MORE GOODNESS INTO
                                                                       A BREAKFAST FAVORITE
                                                                       A longstanding favorite at many an Italian          • We resized the product
                                                                       breakfast table, Oro Saiwa was nevertheless         • We removed palm oil, replacing it
                                                                       beginning to lose out to fierce competition.           with sunflower oil
                                                                       Undaunted, we turned this iconic morning snack
                                                                                                                           • We reduced salt by 31%, and fat by 1%
                                                                       around – giving it new life and winning back
                                                                       consumers’ hearts and appetites.                    • We updated the ingredients, with a new
                                                                                                                              recipe boosting taste and texture
                                                                       The turnaround touched on all our key
                                                                       renovation action points while staying true to      • We began to use local ingredients: 100%
                                                                       the brand’s core DNA and much-loved taste:            Italian wheat
                                                                       • We enhanced communication, with new              It has been a resounding success – Oro Saiwa
                                                                          advertising addressing modern society and        has gained +900k families and grown sales
                                                                          embracing diversity and inclusion                +20% since the refresh.
                                                                       • We reformatted the pack, with a fresh new
                                                                          look and feel

Reference page 10 of this report for baseline figures

MONDELĒZ INTERNATIONAL SNACKING MADE RIGHT 2020 ESG REPORT                                                                                                                                                                15
Performance                           Right Snack                   Right Moment                Right Way           Sustainable Ingredients         Governance
Overview               Landscape               Innovating           Broad portfolio   Evolving        Food safety
                       & Insights              for consumers        & Well-being      our portfolio   & Quality

FOOD SAFETY                                                                 We know how critical it is to offer our
                                                                            consumers safe, high-quality snacks
                                                                                                                                LEADING FOOD SAFETY SCIENTISTS
                                                                                                                                Our food safety scientists are world experts

& QUALITY
                                                                                                                                who are on the Boards of leading global
                                                                            they can really enjoy and feel good                 standard setting organizations such as
                                                                            about. We do everything we can to                   the International Commission for the
                                                                            meet this imperative and in turn, earn              Microbiological Specifications for Foods
Making sure our consumers can                                               people’s trust.                                     (ICMSF), Food Allergy Research and Resource
enjoy safe, high quality snacks is                                                                                              Program (FARRP), and the Global Food Safety
at the heart of everything we do.                                           MAINTAINING HIGH STANDARDS                          Initiative (GFSI).
                                                                            Safety begins with each recipe we make.
                                                                            We set high standards with a comprehensive          CHAMPIONING GLOBAL FOOD SAFETY
                                                                            quality management system to promote the            We are proud to be part of the Global Food
                                                                            integrity of our snacks and the ingredients         Safety Initiative (GFSI) as it continues to
PRODUCT SAFETY AND                                                                                                              benchmark and raise food safety standards
                                                                            we use. Our science-based risk identification
QUALITY PROGRESS                                                                                                                around the world. Since joining the GFSI in
                                                                            and management processes help us assess
                                                                            and control factors that could potentially          2006, we have implemented it at all our plants,
                               2017 2018 2019 2020
                                                                            compromise ingredients, packaging,                  expect our suppliers to follow it and promote
Internal                      100% 100% 100% 100%                           manufacturing processes or finished products.       it more widely with our other stakeholders and
manufacturing                                                                                                                   the industry.
certified
                                                                            We design consumer safety into all our
External                        94%       94%           91%   94%           products right from the outset. We have high        This commitment is supported at the highest
manufacturing                                                                                                                   levels of our organization, as our Chairman and
certified                                                                   Quality Management Standards covering our
                                                                            raw materials, product and process design and       CEO co-chairs the CGF Food Safety coalition,
Raw material                    97%       98% 99.8% 99.9%                   manufacturing. Our food safety systems are          stewarding the food safety agenda.
supplier certified
                                                                            based on the internationally recognized and
Food contact                     NA       57%       90%       97%           recommended Hazard Analysis and Critical
packaging
                                                                            Control Point (HACCP) system. We use leading-
suppliers certified
                                                                            edge science to identify and manage risk so our
                                                                            consumers can trust our products when they
                                                                            eat them.

                                                                            REGULAR TRAINING AND REVIEWS
GOAL PROGRESS                                                               Regularly training staff is an important part of
                                                                            embedding our standards in our business. In
In 2020, we continued to make
                                                                            2020, 4,500 colleagues were trained on our
strong progress toward our goal of
having all our manufacturers and                                            standards. Auditors of our manufacturers and
suppliers certified to one of the                                           suppliers review training records to confirm that
Global Food Safety Initiative (GFSI)                                        all relevant training is carried out and records
benchmarked food safety schemes.                                            kept. Additionally, 2,000 employees of our
In particular, we continued to step-                                        suppliers were trained on our quality aspects.
up the certification of our food
contact packaging suppliers.                                                We review all our quality policies annually,
                                                                            based on benchmarking with our peers, and
                                                                            keep them up-to-date in terms of best practice.
                                                                            We make our own supplier quality expectations
                                                                            publicly available.

Reference page 10 of this report for baseline figures

MONDELĒZ INTERNATIONAL SNACKING MADE RIGHT 2020 ESG REPORT                                                                                                                        16
Performance             Right Snack       Right Moment         Right Way        Sustainable Ingredients            Governance
Overview   Landscape        Mindful    Portion   Labeling      Nutrition      Making a difference   Community   Impact
           & Insights       snacking   control   & Marketing   partnerships   where it counts       Impact      investing

                                                                                                                                We want to help consumers easily
                                                                                                                                enjoy the right snacks throughout
                                                                                                                                their day, and inspire them to snack
                                                                                                                                mindfully so they can savor and feel
                                                                                                                                good about each and every snack.

RIGHT
                                                                                                                                GOAL PROGRESS

                                                                                                                                16%
                                                                                                                                                           of snacks' net revenue from

MOMENT
                                                                                                                                                           portion control products

                                                                                                                                14%
                                                                                                                                                           of packs globally included
                                                                                                                                                           the Mindful Snacking icon

                                                                                                                                UN Sustainable
                                                                                                                                Development Goals
                                                                                                                                Top tier: We focus on a priority SDG
                                                                                                                                where we can make the biggest impact:

                                                                                                                                Additional tier: We also seek to positively
                                                                                                                                impact the following SDGs:
                                                                                                                                4 – Quality Education
                                                                                                                                9 – Industry, Innovation and Infrastructure
                                                                                                                                17 – Partnership for the Goals

                                                                                                                                Reference page 10 of this report for baseline figures

MONDELĒZ INTERNATIONAL SNACKING MADE RIGHT 2020 ESG REPORT                                                                                                                               17
Performance                          Right Snack                      Right Moment            Right Way        Sustainable Ingredients            Governance
Overview              Landscape               Mindful             Portion       Labeling      Nutrition      Making a difference   Community   Impact
                      & Insights              snacking            control       & Marketing   partnerships   where it counts       Impact      investing

Landscape & Insights
Snacks are meeting an increased and varied set of needs
in consumers’ lives, and we are endeavoring to meet more
of those snacking moments.

                                                                             AN INCREASING BEHAVIOR                                                            AN IMPORTANT SOURCE OF COMFORT
                                                                             Snacking around the world, which was                                              Consumers see snacking as an important
                                                                             already a rapidly increasing behavior, has                                        source of comfort, connection and
                                                                             only accelerated as consumers spend more                                          community, especially during the past year.
                                                                             time at home. According to our 2020 State of                                      Comfort has been the top driver of snacking
                                                                             Snacking™ Report, 88% of respondents have                                         through the year – 52% of respondents said
                                                                             been snacking more than before or the same                                        snacking has been a “lifeline” during the
                                                                             during the pandemic. Moreover, the majority                                       pandemic. Snacking also offers bite-sized
                                                                             of respondents see snacking as a growing part                                     moments of satisfaction and peace, with a
                                                                             of their everyday lives in the future.                                            majority of respondents noting it has helped
                                                                                                                                                               distract them from a trying year.

                                                                             A SOURCE OF NOURISHMENT, TOO                                                      A RISE IN ONLINE SNACK SHOPPING
                                                                             Our report also highlighted the important                                         Almost half of respondents are now buying
                                                                             nourishing role snacking plays in people’s                                        snacks online, and this is only likely to
                                                                             lives, with 54% of respondents relying on                                         increase. Indeed, 69% of respondents plan to
                                                                             snacks for nourishment during the pandemic.                                       continue shopping for snacks online once the
                                                                             As we highlight in Right Snack, as snacking                                       pandemic ends.
                                                                             increases, so too does the focus on healthy
                                                                             products and ingredients.

All data on this page from our 2020 State of Snacking™ Report available at
https://www.mondelezinternational.com/stateofsnacking

MONDELĒZ INTERNATIONAL SNACKING MADE RIGHT 2020 ESG REPORT                                                                                                                                                    18
Performance                             Right Snack                         Right Moment                             Right Way            Sustainable Ingredients                   Governance
Overview                Landscape                 Mindful               Portion              Labeling                    Nutrition      Making a difference      Community       Impact
                        & Insights                snacking              control              & Marketing                 partnerships   where it counts          Impact          investing

MINDFUL                                                                                 We put a big emphasis on mindful
                                                                                        snacking – it's our distinctive
                                                                                                                                                              HELPING PEOPLE SNACK MINDFULLY
                                                                                                                                                              To help people get it right, our Snack

SNACKING
                                                                                                                                                                                                                     GLOBAL CASE STUDY
                                                                                                                                                              Mindfully website provides resources, tips and
                                                                                        approach to helping consumers                                         information on mindful snacking. We have               COMBINING THREE BRANDS INTO ONE
                                                                                        snack better. So what do we mean by                                   also partnered with renowned mindful eating            SNACK MINDFULLY STORY
                                                                                        mindful snacking? It is about eating                                  expert, Dr. Susan Albers, Psy.D., on consumer-         In Canada, to build on our different
We want to inspire mindful snacking                                                                                                                                                                                  mindful snacking options and amplify
                                                                                        with intention and attention, focusing                                friendly videos that explain mindful snacking
behaviors, so the consumers we                                                                                                                                and how to practice it.                                the message for consumers, we took
                                                                                        on the present moment, and savoring                                                                                          the simple innovative step to bundle our
care about can savor each bite and
                                                                                        how the food tastes so you really                                     A FEW SIMPLE STEPS                                     three top cracker brands together into
experience more satisfaction from the
                                                                                        enjoy it. In short, it’s about making                                 Snacking mindfully involves a few simple               one well-being-themed story.
brands we and our consumers love.                                                                                                                             steps that add up to fully enjoying the
                                                                                        the most of snacking in-the-moment.                                                                                          We brought Good Thins, TRISCUIT and
                                                                                                                                                              snacking experience.
                                                                                        We want to educate consumers                                                                                                 Wheat Thins together and inspired
                                                                                        about how to snack mindfully to                                       • Know what you want                                  consumers with ideas how to create
                                                                                        encourage them to get the most out                                    • Be aware of portion and moderate it                 delicious snacking moment by combining
MINDFUL SNACKING                                                                                                                                                                                                     nutritious crackers with other healthy
PROGRESS                                                                                of snacking and inspire satisfying                                    • Be present in the moment

14%
                                                                                                                                                                                                                     categories, such as dips, fruits and
                                                                                        snacking experiences.                                                 • Enjoy and appreciate the snacks with                vegetables or more practical tips how to
                                                                                                                                                                 all your senses                                     snack more mindfully. This combination
                                                                                        We are big fans of mindful snacking. It’s:                            • Be aware of your hunger, fullness and               enabled us to take the brands beyond
                                                                                        Relevant                                                                 satisfaction level                                  the cracker aisle of a store to the fresh/
By the end of December 2020, 14%                                                        More and more people are using mindfulness                                                                                   produce section as part of a broader well-
                                                                                                                                                              • Reflect on your whole eating experience
of packs globally included the Mindful                                                                                                                                                                               being story.
                                                                                        for well-being and balance.
Snacking icon.                                                                                                                                                THE BENEFITS
                                                                                        Sustainable                                                                                                                  Timed for January, during the key well-
We also plan to invest in a digital                                                                                                                           • A positive relationship with food by making
                                                                                        Mindful eating can be practiced by anyone,                                                                                   being season when 70% of Canadians
consumer education campaign to reach                                                                                                                             deliberate and conscious food choices*
even more people with practical tips and                                                anywhere, and by all ages.                                                                                                   make New Year's resolutions and
                                                                                                                                                              • More satisfaction and pleasure from the food        improving eating is a top topic, the
tools to help them snack mindfully.                                                     Effective                                                                by savoring with all the senses**                   campaign included generating awareness
                                                                                        Research shows multiple benefits of
                                                                                                                                                              • Less likely to overeat and lose control by paying   on social media, creating a microsite with
                                                                                        mindful eating.
                                                                                                                                                                 attention to hunger and fullness feelings***        recipes and tips on snacking mindfully,
                                                                                                                                                                                                                     and a new merchandising display.

                                                                                                                                                                                                                     GLOBAL CASE STUDY

                                                                                                                                                                                                                     MINDFUL SNACKING IN INDONESIA
                                                                                                                                                                                                                     In Indonesia, to help promote mindful
                                                                                                                                                                                                                     snacking during the pandemic, we created
                                                                                                                                                                                                                     a campaign partnering with Clinical
                                                                                                                                                                                                                     Psychologist, Ms Tara de Thouars, BA, M.
                                                                                                                                                                                                                     Psi through articles across regular and
                                                                                                                                                                                                                     social media. It included a virtual session
                                                                                                                                                                                                                     for mom-blogger community “Ibu-ibu
                                                                                                                                                                                                                     doyan nulis” to share mindful snacking
                                                                                                                                                                                                                     tips for parents.

Source:
 *Alberts et al., 2012; Katterman et al., 2014; Hendrickson et al., 2017; Camillieri et al., 2015; Gravel et al., 2014
**Hong et al., 2014; Arch et al., 2016; Cornil & Chandon, 2015; Hetherington et al., 2018
***Oldham-Cooper et al., 2011; Higgs et al., 2011; Mittal et al., 2011; Robinson et al., 2014; Daubenmier et al., 2016
Reference page 10 of this report for baseline figures

MONDELĒZ INTERNATIONAL SNACKING MADE RIGHT 2020 ESG REPORT                                                                                                                                                                                                   19
Performance                           Right Snack               Right Moment             Right Way         Sustainable Ingredients                  Governance
Overview               Landscape               Mindful        Portion      Labeling       Nutrition      Making a difference      Community      Impact
                       & Insights              snacking       control      & Marketing    partnerships   where it counts          Impact         investing

PORTION                                                                 We continue to focus on expanding
                                                                        our range of portion control options
                                                                                                                               Looking ahead, we are committed to driving our
                                                                                                                               portion control growth more actively to meet
                                                                                                                                                                                  We are mindful of balancing our growth in
                                                                                                                                                                                  portion control with our commitment to

CONTROL
                                                                                                                               our 2025 target.                                   reducing waste and plastic packaging. We focus
                                                                        – snacks that are 200 calories or                                                                         on optimizing and reducing packaging as well
                                                                        less and are individually wrapped.                     In 2020 we committed to bring all of our           as using post-consumer materials wherever
                                                                        Portion control is recognized as one                   Cadbury chocolate bars sold as part of a           possible and enabling recycling. Find out more
To help people enjoy their snacks                                                                                              multipack under 200 calories by the end of
                                                                        effective way to help people manage                                                                       about our packaging on page 36 of this report.
mindfully we focus on enhancing our                                                                                            2021. This move will see over 2 billion calories
                                                                        their calorie intake. Individually
portion control options.                                                                                                       removed from the UK market each year. It           As well as expanding our portion control
                                                                        wrapped products enable people to                      builds on our pledge to bring all Cadbury          options, we are placing a visual portion icon on
                                                                        enjoy the treats they love, become                     chocolate and biscuit products typically bought    all packs, globally by 2025.
                                                                        more mindful when they eat, and help                   by parents for children to under 100 calories by
PORTION CONTROL                                                         manage their calories.                                 the end of 2020. The much-loved Cadbury bars,
                                                                                                                               Fudge, Curly Wurly and Chomp, as well as Barny
PERFORMANCE                                                                                                                    Sponge Bears and Cadbury Mini Fingers and
                                                                        We are committed to growing our portion
                                    2017 2018 2019 2020                 control products to 20% of our global snacks           Cadbury Animals are now all under 100 calories.
                                                                        net revenue by 2025. In 2018, we achieved our
Percentage of snacks                 13%        15%     16%   16%
net revenue in portion                                                  2020 target of 15% and increased it to 16% in
control options                                                         2019. We maintained this 16% level in 2020, as
                                                                        the pandemic slowed overall portion control
                                                                        growth, to 1%, and affected consumer demand
                                                                        in different ways across chocolate, biscuits
                                                                        and candy. Portion control in chocolate grew
                                                                        10% year-on-year in 2020 to 15.5% of snacks
                                                                        net revenue, while biscuits decreased 6% to
GOAL PROGRESS                                                           18%. Overall, our portion control offerings as
                                                                        a percentage of our snacks net revenue have
At 16%, we are on track to reach our 2025
goal of 20% of global snacks net revenues                               risen from ~10% in 2012 to 16% in 2020.
from portion control products.

Reference page 10 of this report for baseline figures

MONDELĒZ INTERNATIONAL SNACKING MADE RIGHT 2020 ESG REPORT                                                                                                                                                                     20
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