MDLZ HRDD and Modern Slavery Report 2021
MDLZ HRDD and Modern Slavery Report 2021
MDLZ HRDD and Modern Slavery Report 2021
MODERN SLAVERY
preventing and addressing associated risks. Servitude, forced labor
and human trafficking (“modern slavery”) are issues of increasing
Report
global concern, affecting many sectors around the world. Modern
slavery is fundamentally unacceptable, and our rejection of modern
slavery is a key element of our commitment to respect human rights.
2021
“We are committed to protecting the
planet and respecting the human
rights of people in our value chain”
enter
Board of Directors of Mondelēz
International, Inc. on 18 May 2022.
1
hese UK subsidiaries are Mondelez UK Limited, Mondelēz UK R&D Limited, Cadbury UK Limited and
T
Dirk Van de Put, Mondelēz UK Confectionery Production Limited, and the board of directors of each company has
Chairman & CEO of Mondelēz International approved this statement or will have approved this statement by end of the month.
Special Update on Special Update About Mondelēz Policies and Stepping Governance Due Diligence Systems and Upstream Other Communities Collaborating for Change and Measuring Progress
Our Response to on the War International: Our Business Governance Up on Structure for Actions to Address Identified Supply Chains Supply Chains Where we Advocating for Human Rights and Effectiveness of
the COVID-19 Crisis in Ukraine and Supply Chains Living Wage Human Rights Human Rights Risks Matter Most Due Diligence Legislation our Actions
In response, we have prioritized the safety In Russia, we are continuing to support our
of our employees in the region and taken a employees and manufacture food, but scaling back
number of steps to protect them. Although our activities in this market to focus only on basic
our manufacturing facilities in Ukraine have offerings, and stopping all new capital investment,
been closed since the start of the hostilities, advertising, commercial sponsorships, and new
we are continuing to pay our employees and product launches.
working hard to make food available in Ukraine,
Furthermore, we are continuing to comply with
including by donating product and working
existing sanctions, and focused on understanding
with distributors. We also are providing strong
and ensuring our compliance with new sanctions
financial support, border-crossing assistance, and
applicable to our business that both the US and
help with finding safe housing.
other governments have imposed on Russia in
In addition, we are stepping up our commitment to recent weeks.
relief efforts by dedicating $10 million to support
As the situation in Ukraine is highly dynamic,
humanitarian activity and food security. This
we are assessing developments on an ongoing
assistance includes donations to international and
basis, so we can address and respond to them
local aid organizations that are providing broad
as they arise.
support to all the people of Ukraine, as well as to
Around 89% of our annual revenue is generated in snacks categories. And we hold
the No. 1 position globally in biscuits, as well as the No. 2 position in chocolate,
gum and No.3 in candy (Source: Euromonitor, total global categories 2021). 71% of
our business is outside of the United States, with a strong presence in emerging
markets which represents 32% of our business.
Over 79,000 employees bring our brands to life by making and baking our delicious
products, which are enjoyed in approximately 150 countries around the world.
Across the globe, we have a powerful value chain. We touch millions of stores
and combine this with state-of-the-art manufacturing. To create our snacks,
our business depends on a steady and high-quality supply of agricultural crops
including wheat, cocoa, vegetable oils (including palm oil), hazelnuts, sugar, milk
and eggs.
Through our signature programs Cocoa Life and Harmony, Cocoa supply chain Wheat supply chain
we strive to make a positive impact on the farms,
communities and environment where our most important At the end of 2021, 75% of the cocoa volume for We source most of our wheat from Europe and
our chocolate brands was sourced sustainably North America. In Europe, through our Harmony
raw materials – cocoa and wheat – are grown. through our Cocoa Life program, and we aim program we partner with 1,525 farmers across
to deliver 100% by 2025. The program invests seven countries (Belgium, the Czech Republic,
in cocoa farming communities in Côte d’Ivoire, France, Italy, Poland, Spain and Hungary). In
Ghana, Indonesia, Brazil, the Dominican Republic 2021, they produced 255,535 tons of wheat flour,
and India, and already works with more than representing 91% of the volume needed for biscuit
200,000 farmers. Our main cocoa suppliers production in our EU business unit. In North
are listed as partners on our Cocoa Life America, we partner with the wheat supplier of
website, and the full list of our tier 1 and tier our Triscuit brand, the Cooperative Elevator, their
2 suppliers is also available. We have mapped growers, and Michigan State University to gather
78% of Cocoa Life farms in an effort to gain a data on farming, analyze levels of input and
deeper understanding of the needs of farming practices (i.e., fertilizers, pesticides, reduced tilling,
communities and the boundaries of farms. Our cover crops) and report back to help growers
interactive farm map is available here. identify opportunities of optimization.
We purchase around 0.5% of worldwide palm oil production We source most of our
and source it predominantly from Malaysia and Indonesia, hazelnuts from Turkey.
and to a lesser degree from other countries. In 2021, we To address human rights
maintained our goal of sourcing 100% Roundtable for risk in that supply
Sustainable Palm Oil (RSPO) palm oil. And as of the end of the chain, we have joined a
year, in line with our Palm Oil Action Plan, we have achieved multistakeholder initiative
the traceability of 99% of our palm oil to the mill and 99% led by the International
of the palm oil we buy was sourced from suppliers with Labor Organization.
policies aligned to our Palm Oil Action Plan and Corporate
Responsibility Expectations For Direct Suppliers. The list
of suppliers and mills that make up our palm oil supply is
available on our website.
Governance Structure
for Human Rights
CASE STUDY
Due diligence systems and Turning insight into
actions to address identified action in South East Asia
human rights risks
Building on learnings from
Human Rights Impact
Own operations and tier-1 suppliers Assessments carried out
in 2019, our South East Asia
We undertake practical, business minded, proactive, In 2021, many of our manufacturing sites had to postpone (SEA) team strengthened
ongoing human rights due diligence to identify, mitigate audits to respect local COVID-19 restrictions, strict health recruitment practices in our
and reduce the likelihood of potential and actual human and safety protocols to protect the health of auditors and manufacturing plants across
rights impacts within our own operations, and work of our people. As a result, as the pandemic entered its third the region. The team implemented
with our business partners throughout our supply chain year, 38% of our global manufacturing sites have completed safeguards, including formal interviews
to achieve the same. a SMETA audit over the past three years. In the AMEA (Asia, with all incoming workers, a self-declaration process
Middle East & Africa) and Latin America regions, 50% of and capability building to deepen awareness of our
For our own operations and prioritized strategic tier 1
our plants have completed a SMETA audit over the past Human Rights Policy and Speak Up line. They reviewed
suppliers, we use the SMETA audit protocol to evaluate
three years. Our suppliers experienced similar disruptions. the recruitment agencies we work with in the region,
our internal manufacturing sites and direct suppliers
As a result, 49% of the 190 suppliers we prioritized in strengthened contractual agreements to incorporate
against a common set of corporate social responsibility
2021, performed a SMETA audit. In 2021, we started a new elements on forced labor prevention where relevant,
standards developed for the consumer goods
auditing cycle using Sedex’s Radar risk assessment tool and terminated the partnership with one supplier, where
industry. In addition, before engaging in new business
to prioritize suppliers based on human rights related risk. engagement did not lead to necessary improvement in
relationships – and during the course of business, we
their recruitment practices.
conduct appropriate and risk-based due diligence, which Despite the continued pandemic and related constraints,
includes screening potential suppliers against restricted we are working hard to execute audits of our remaining As we work towards our goal to implement robust
party lists from authorities worldwide, which may global manufacturing sites and supply chain. Beyond our Human Rights due diligence across our own operations
include human rights related information. These systems audit program, we continued to strengthen our human and supply chain by 2025, we will continue to learn from
support the identification of potential risks, help guide rights due diligence systems: building internal capability, the team in SEA to strengthen our recruitment practices
our approach for impact mitigation and monitoring, and embedding good practices within the relevant functions globally – informed by emerging industry best practice
inform our procurement practices. and local business units, and prioritizing key risks. and our practical experience.
As part of our continued membership The safety of all colleagues working on our sites – The global benchmark for a world-class Total Incident Rate (TIR)
of the Human Rights Coalition of Action whether they are direct employees, contractors, or is 0.5. We compare our performance against this benchmark and
within the Consumer Goods Forum, in temporary workers – is a top priority. Every day, we strive continue to perform well below the 0.5 level, currently operating
2021 we joined the Human Rights Due to ensure all our employees feel safe, and are able to at 0.21, with 38% of our facilities operating with a zero TIR in 2021,
Diligence Project. This project is key in work in an accident-free environment. We strive to build despite the challenges posed by the COVID-19 pandemic, which
supporting our progress towards our a safety culture that promotes our goal of zero incidents required us to hire temporary help.
goal of having forced labor focused and zero defects by eliminating risks across four key
Through ongoing capability building, enhanced protocols and safety
Human Rights Due Diligence (HRDD) areas:
measures, we’ve improved our safety performance year after year.
systems in 100% of our own operations
1) Occupational Health: To safeguard our employees TIR as a primary indicator has been helpful to drive this reduction
by 2025.
against long-term health issues related to the in incidents. To also monitor and work to prevent high-severity
The Human Rights Coalition of Action workplace; incidents, we revised our primary metrics in 2020 to include Severity
is dedicated to working to end forced 2) Personal Safety: To entrench safe working tools and and Total Accident Rate (TAR).
labor in the consumer goods industry, standards that promote the personal safety of every
This allows us to focus on all incidents including first aid cases
and will drive individual member individual within our company;
and high severity. In 2021, we recorded a 21% reduction in Severity
company and collective action towards
3) P
rocess Safety: To improve the design, implementation, incidents vs our 2020 baseline year. This included zero work-
the implementation of the Priority
management and control of any identified hazardous related fatalities and zero severity incidents across 57 of our
Industry Principles in own operations
process within our operations; and manufacturing facilities. We also reduced our Total Recordable
and supply chains.
4) Vehicle Safety: To improve driver safety and vehicle- Accidents by 17% year-on-year. Our continued focus on safety has
related activities in all of our functions and operations. resulted in a 62% reduction in TIR since 2013.
At Mondelēz International, our goal is to create and larger community. A broad concept of sustainability
sustain a workplace where differences are valued and corporate responsibility that embraces women’s
and where everyone can be themselves. We are all empowerment is one of our key goals.
unique in ways one can and cannot see, and we aim
We annually review our global gender pay equity
to attract, develop and nurture talent wherever it
and take deliberate actions to eliminate the gap and
exists, embedding Diversity, Equity & Inclusion in all
ensure pay equity for women. We provide consistent
our People processes and nurturing a culture where
gender-neutral minimum standards for parental
everyone is treated with integrity and respect. As part
leave within each geography and have a global
of our Diversity, Equity & Inclusion agenda, we are
philosophy on flexible working. In addition, we
taking a stance for gender equity within our operations
ensure balanced slates and interview panels for all
with ambitious goals to close our senior-level gap of
leadership roles.
women in leadership and ensure pay equality.
These initiatives are delivering progress. Our
These goals are supported by a variety of initiatives
last global analysis in 2021 encompassed 81
focused on building inclusive leadership behaviors
countries and over 32,000 employees. From this
to harness diversity of thought and holding people
analysis, we noted our pay gap between male and
accountable for creating a culture that values
female employees was less than 1%. At the end of
differences. Our goal is to spend $1 billion with
2021, women held 39.3% of global management
minority and women-owned businesses by 2024. We
roles (defined as Director and above) and 27.3%
are advocating for the full participation and equal
of executive leadership roles (defined as the
treatment of women in our enterprises and in the
Management Leadership Team plus one level below).
Upstream
supply chains
Drawing on nearly ten years of experience Child labor is a symptom of underlying systemic
working with farmers to help improve their net issues in the cocoa supply chain such as poverty
income, in November 2021, in partnership with and slow rural development. Our Cocoa Life
Wageningen University & Research (WUR) we program’s holistic approach addresses these root
published a new paper, Balancing the Living causes through interventions to increase income,
Income Challenge, outlining the need for the empower communities to advocate for their
cocoa sector to take a multi-actor approach for development, and the empowerment of women
more farmers to achieve a living income. This at household and community level. Our goal is to
follows the executive summary paper, No Silver set up a Child Labor Monitoring and Remediation
Bullets, which we co-published with WUR System (CLMRS) in all Cocoa Life communities
in 2020. in West Africa by 2025, including Côte d’Ivoire
and Ghana, where third-party studies including
We are calling for greater collaboration across
independent assessments commissioned by
the sector to approach the income challenges
Mondelēz International confirmed a significant
facing cocoa farmers. Mondelēz International
risk of child labor.
drives positive, measurable change on the ground
through Cocoa Life, yet we know that more action In 2021, we made significant progress in rolling
is needed as a sector. We need all stakeholders out CLRMS, expanding coverage to 1,548
from the cocoa sector – governments, producers, communities, bringing us to 61% coverage in West
suppliers, investors, farmers and more – to come Africa. A Cocoa Life community is considered
together to build a shared understanding of the “We are calling for greater collaboration across covered by a CLMRS, when people have been
living income challenge, so that every actor can sensitized to the dangers of child labour and
the sector to approach the income challenges
determine where they can have the most impact remediation is under way for identified vulnerable
and develop coordinated strategies to do so.
facing cocoa farmers.” children. The local school is also involved, children
then learn about their rights, and a committee Mondelēz International is investing CHF
of community volunteers is put in place to serve 3 million to address children’s inadequate
as the focal point on child protection issues. access to quality education in cocoa-growing
This committee then takes action when a child regions: a key root cause of child labor, which
is found to be in a situation involving child labor, can only be addressed systemically. The goal
working in partnership with the local authorities is to improve access and quality of education
and with the support of our local NGO partner. for 5 million children, reaching 90% of rural
primary schools in Côte d’Ivoire through the
Ending child labor across the West African cocoa
construction of 2,500 classrooms, and tested
sector is more than Mondelēz International can
interventions to improve teaching quality.
do alone, so we collaborate with a number of
stakeholders across the cocoa supply chain.
Through our involvement with the World Cocoa These initiatives will strengthen the Ivorian
Foundation (WCF) and the International Cocoa educational system and benefit children of
Initiative (ICI), we support a systemic approach cocoa farmers across the sector, including
to address the root causes of child labor and those in our supply chain. Building on the
call for strong public private partnerships with success of this public-private initiative, we are
governments, development partners and civil encouraging the Jacobs Foundation to partner
society organizations. with the Ghanaian government to expand
this initiative to our other key cocoa sourcing
On the key topic of education, we also work
country, Ghana. “Mondelez International is investing
together with the Ivorian government,
CHF 3 million to address children’s
foundations, peers and suppliers in the CLEF and
ELAN initiatives led by the Jacobs Foundation.
inadequate access to quality education
Through these two initiatives, which aim to raise For more on our actions to address in cocoa-growing regions: a key root
child labor through Cocoa Life
a total of CHF 150 million (~USD $150 million), cause of child labor.”
Independent reports show a risk of forced labor Cocoa Life also addresses the striking gender
affecting both adult and children in the West inequality in cocoa-growing communities, where
African cocoa supply chain. Research by Verité women farmers have lower incomes and less
commissioned by the International Cocoa Initiative access to financing, inputs, and land ownership.
(ICI), concluded that poverty, price volatility in In October 2018, we published renewed Women’s
cocoa, low levels of education, the nature of small- Empowerment Action Plans for four of our
scale farming and limitations in law enforcement key origins. The action plans show how, in each
are root cause factors that drive forced labor. origin, we empower more women through all
areas of our approach – how we help them: run
Informed by Verité’s findings and
more successful farms; take a more active role in
recommendations, ICI is developing practical
community decision making; be able to give their
tools to identify and mitigate forced labor risks,
children a quality education; make cocoa farming
put in place preventive measures, and allow
more attractive for young people; become
people in situations of forced labor to raise the
more entrepreneurial; and protect their natural
alarm and access support. As part of our Cocoa
environment.
Life activities in Cote d’Ivoire and Ghana, we are
using the learnings from these activities to guide
our response to forced labor risk, and to inform For more on our actions to empower
women through Cocoa Life
the necessary industry collective action and
collaboration with governments to effectively
mitigate this risk systemically. For more information on the progress and impact
of Cocoa Life take a look at pages 63-66 of our
2021 Snacking Made Right Report.
Other
supply chains
Beyond our signature programs, we’re embedding sustainability into our sourcing Through this work we are addressing cross-cutting themes such as good agricultural
practices for other raw materials. We’re seeking more transparency, raising expectations practices, deforestation, human rights (including labor rights such as forced and child
of our suppliers, and seeking to catalyze sector-wide change. labor), land rights, gender, and environmental footprint.
Achieving widespread change across whole supply a multi-stakeholder platform, whose mission is to
“We welcome the EU
chains is more than Mondelēz International can do help eliminate child labor and forced labor in the
Commission’s proposed
alone, so we collaborate with peer companies and cocoa sector. Through these platforms, we also call
Corporate Sustainability Due
expert organizations to help us on the journey. for industry and governments to join forces to create
Diligence directive (issued in February 2022), which will
comprehensive, systemic solutions that address the
require companies to identify and address human rights
Consumer Goods Forum (CGF) root causes of child and forced labor.
and environmental risks in their value chain.”
As a board member of the Consumer Goods Forum Advocating for Human Rights Due
(CGF) we have reiterated our commitment to help Diligence Legislation
“It’s very significant that Mondelēz International was
eradicate forced labor, and to work collaboratively
prepared to stick their head above the parapet and say:
with others as these are issues we cannot resolve Beyond our active participation and leadership in
‘actually, we need human rights due diligence to become
alone. We are a core member of the CGF’s Human collective action platforms, Mondelēz International
mandatory, so that we can level the playing field
Rights Coalition of Action and support CGF’s Priority has been a vocal advocate in favor of mandatory and that all businesses start upholding human
Industry Principles on Forced Labor. human rights due diligence legislation. Recognizing the rights standards in their supply chain’.
systemic nature of human rights issues in global supply This kind of engagement with the
Multistakeholder collaboration chains and the need for all actors along the supply European Union played an important
in the cocoa supply chain chain to work together to address them. We support role in bringing about the new due
legislative efforts aimed at enabling practical, proactive, diligence law in one of the biggest
We join forces with partners in a range of initiatives ongoing human rights due diligence, and welcome the markets in the world.”
to support sustainable cocoa production including EU Commission’s proposed Corporate Sustainability Dr. Aidan McQuade,
the World Cocoa Foundation where we serve on the Due Diligence directive (issued in February 2022), which Human Rights Expert and author
Board of Directors. We also serve on the Board of will require companies to identify and address human of Ethical Leadership: moral
Directors of the International Cocoa Initiative (ICI), rights and environmental risks in their value chain. decision-making under pressure
Child labor: monitoring and remediation measures at 10% Cocoa Life communities in On track
West Africa by 2025*** 61%
Palm oil supply chain
Achieved
Palm oil RSPO certified: 100% by 2025 (since 2013)
100%
Palm from suppliers aligned with Palm Oil Action Plan/policy: 100% by 2025 On track
(since 2014) 100%
Communities where Invest in innovative Sustainable Futures ventures and funds On track
we matter most
* 2013 baseline **2012 baseline ***2020 baseline