Mondelez

FAIRR Commentary

• Mondelez’s exposure to animal proteins is unclear; it is likely segments that comprise nearly 77% of the company’s revenues in 2017 are exposed to animal proteins (this revenue split was not reported in 2018). While they source multiple animal ingredients, the company is most exposed to eggs and dairy. Animal agricultural commodities and ingredients constitute 31% of scope 3 emissions and 27% of their total emissions.
• The company does not seem to think sustainable proteins is a material issue for their business because their products typically do not come with protein claims.
• We acknowledge that as a predominantly confectionery/snacking business, Mondelez has a limited role to play in shifting diets. However, plant-based snacking and dairy-free chocolates are a growing market; further, the company’s portfolio is highly exposed to animal ingredients, but the company does not seem to be addressing the sustainability impacts of dairy in a meaningful way. We believe that this is a material issue for the business, given the growing market interest and innovation in plant-based snacking as well as the fact that nearly one-third of the company’s current emissions are linked to animal agriculture.
• However, we do believe that Mondelez’s recent work to expand its innovative snacking portfolio through their SnackingFutures venture demonstrates their interest in increasing their portfolio of plant-based products.
• We encourage the company to externally articulate what forms of protein they plan to focus on in the future, and how these will impact its sourcing and emissions targets. Further, we would encourage the company to strengthen its sustainability work in dairy and explore alternatives to dairy ingredients. As the company seeks to expand its protein portfolio, it must do so as part of a strategic plan to ensure any exposure to animal proteins is in line with a low-carbon strategy.

Company Comment

Overall, the remarks and assessment reflect our discussion.
We appreciate the feedback and our ongoing dialogue with FAIRR. We we’ll take your suggestions into consideration as we continue to move forward on our 2025 impact strategy. In the meantime, please let me us know if you have any questions.