This presentation contains a number of forward-looking statements. Words, and variations of words, such as "will," "expect," "may," "believe," "plan" and similar expressions are intended to identify our forward-looking statements, including, but not limited to, statements about our long-term environmental, social and governance (ESG) targets and goals, and snacks category growth. These forward-looking statements are subject to a number of risks and uncertainties, many of which are beyond our control, including those set forth in our risk factors, as they may be amended from time to time, in our filings with the SEC, including our most recently filed Annual Report on Form 10-K and Quarterly Report on Form 10-Q. Mondelēz International disclaims and does not undertake any obligation to update or revise any forward-looking statement in this presentation, except as required by applicable law or regulation.
2
Dirk Van de Put
Chairman & Chief Executive Officer,
Mondelēz International
Shep Dunlap
Vice President,
Investor Relations
3
Christine Montenegro McGrath
Vice President & Chief of Global Impact
Board DirectorWorld Cocoa Foundation
Co-LeaderConsumer Goods Forum Forest
Positive Coalition
Jonathan Horrell
Director, Sustainability
Co-LeaderConsumer Goods Forum Palm Oil Coalition
- ESG at MDLZ - Snacking Made Right
- Our Commitment and Approach
- Right Snack, Right Moment
- Well-beingStrategy
- Made The Right Way
- Sustainability at Mondelēz International
- Performance Dashboard & Disclosure
- Q&A
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- Protecting thewell-being of our employees is first priority
- Strict health & safety protocols
- Enhanced benefits & support forfront-line colleagues
- Supporting the communities where we operate
- Over $20 million donations to community partners
- Participating in World Cocoa FoundationCOVID-19 response
- Repurposed facilities to produce health & safety equipment
- Remaining committed to ourlong-term ESG agenda
- Protect and support employees, suppliers, partners
- Remain agile, ready to adapt and committed tolong-term sustainability targets
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• | Sustainable ingredients | • | Consumer well-being | • | Human capital |
• | Environmental footprint | • | Social sustainability | management | |
• | |||||
• | Packaging innovation | • | Safety & quality | Diversity & inclusion | |
• | |||||
Compliance |
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- Be informed by materiality
- Prioritize where we can have the largest impact
- Mitigate most significant risks
- Focus on sustainable outcomes for thelong-term
- Take a holistic approach: signature programs & partnerships
- Integrate sustainability &well-being into strategic planning
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- Commitment embedded in organization
- Ingrained in Purpose and Values
-
Board of Directors & Mondelēz Leadership
Team engagement - Enterprise strategy integration
- Incorporate sustainability into compensation program
- Acceleration of transparency & dialogue
- Enhancing disclosure
- Evolving engagement
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the
for the made the
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- +18%increase in average number of snacking occasions globally from 2015 to 2017
- 6 in 10global adults prefer multiple small meals versus fewer large ones (7 in 10 Millennials)
- Gen Zsnacks more times a day than anyone else
12 | Source: Mondelēz State of Snacking: 2019 Global Consumer Snacking Trends Study, November 2019 |
Packaged Snacks Category $ Growth 2019-20221
+$100B
+4-5% | +$50B | ||
2019-22 CAGR | |||
4%+ | |||
2019-22 CAGR | |||
3%+ | |||
2019-22 CAGR | |||
Total Packaged Snacks | MDLZ Core Categories & | ||
Close-In Adjacencies2 |
Growing $
+$20B +6-7%
2019-22 CAGR
Predominantly
Well-being Categories3
Market Size: | ~$700B | ~$410B | ~$100B | ||
13 | MDLZ Core Categories | ||||
Close-In Adjacencies | |||||
- Dark chocolate
- Permissible inclusions
- Portion control
- Reduced sugar
- Gluten free
- All natural
- Locally sourced
- Organic
- Protein / energy
- Superfood
- Functional fortified
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- Encourageportion-controlled consumption
- Promote mindful snacking
- global snacks net revenue from portion control snacks
• | Snack Mindfully |
labeling across brands |
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Cocoa Life
• | Invest | by 2022 |
• | Source | volume for |
chocolate brands by 2025 |
Harmony Wheat
- EU Biscuits (Harmony) by 2022
Palm Oil
-
Supportsector-wide action towards consistent policies;
maintain RSPO sourcing
CO2 Emissions
- reduction
(end-to-end) by 2025
Water Reduction
- (manufacturing) by 2025
Food Waste
- reduction in manufacturing waste by 2025
- reduction in distribution by 2025
Recyclability
- of MDLZ packaging designed to be recyclable & labeled with recycling information by 2025
Ecosystem
- Advancing packaging waste infrastructure & consumer education
Human Rights
- human rights due diligence system coverage in own operations & Tier 1 suppliers
Child Labor
- Cocoa Life communities in West Africa have Child Labor monitoring & remediation measures by 2025
17 | All 2025 targets versus a 2018 baseline |
- Environmental footprint and social risk assessment guides us
- Identifies greatest risks
- Drives focus
- Informs priorities
- Aligned to key external frameworks
- United Nations Sustainable Development Goals (UN SDGs)
- Informed by stakeholder expectations
- Consumer insights
- NGOs and advocacy groups engagement
- Investor views
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Formed enduring | Began reporting | Adopted new | Aligning to | |||||||||
stakeholder | against key | frameworks to | further reporting | |||||||||
relationships | frameworks | drive transparency | trends | |||||||||
Established | Launched | First to raise issue | Founding member | Announced |
environmental | 10-year Cocoa Life | of deforestation | of public-private | end-to-end |
footprint | program | in cocoa sector | partnership | CO2 targets |
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$400 million commitment leading a sustainable future for cocoa
-Secure cocoa supply imperative to growth
-Opportunity to address sourcing challenges and reduce deforestation, child labor risks
-Empowering 200,000 farmers
2025 Target
Focus Areas
-cocoa for chocolate brands sustainably sourced
2019 Progress
- cocoa for chocolate brands
sustainably sourced
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- Driving systemic actionindustry-wide
- Sustainable palm oil is efficient ingredient
- Sector needs consistent supply practices to protect forests and people
- 2025 Target
- Supportsector-wide action towards
consistent policies; maintain | RSPO |
sourcing |
- 2019 Progress
- from suppliers with aligned policies across entire supply
- RSPO sourcing
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Partnerships & Coalitions
and supplier engagement
Focus Areas
- Partnering with 1,600 European farmers on sustainable farming approaches
- Wheat 3rd biggest contributor to our raw material CO2 emissions
- 2022 Target
- EU wheat sourced sustainably
through Harmony | Focus Areas |
2019 Progress |
- EU wheat sourced sustainably through
Harmony
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CO2 Target | CO2 Target | ||
- | reduction in CO2 emissions across | - | reduction in CO2 emissions across |
manufacturing operations | manufacturing operations | ||
Water Target | Water Target |
- reduction in priority water usage in areas where water is most scarce
- reduction in priority water usage in areas where water is most scarce
- Waste Target
- reduction in total waste from manufacturing
- Waste Target
- reduction in total waste from manufacturing
23 | 1. 2013 baseline against all 2020 Goals and 2019 Progress |
- Setscience-based targets for meaningful impact on climate change
- SBTI
- Independently verified targets consistent with reductions necessary to keep global warming well below 2oC
- Approach goes beyond own operations to address ourend-to-end carbon footprint
- Water and Waste targets drive efficiency and reduce cost
- 2025 CO2 Target
- emissions reduction across value chain, over and above business growth
- 2025 Water Target
- reduction water usage in priority areas where water is most scarce
- 2025 Waste Target
- reduction in food waste in manufacturing
24 1. Baseline 2018
- Transforming packaging and encouraging recycling
- We don't want our packaging ending up in the environment
- The issue of plastic pollution is larger than the recyclability of our packaging
- 2025 Goal
- packaging designed to be recycled and labeled with recycling information
- 2019 Progress
- packaging designed to
be recycled
1
25 | 1. 2019 vs 2013 |
Innovations & Partnerships
Sector-Wide
Partnership to
Tackle Plastic
Waste
Focus Areas
- Focus on operations and key commodity growing areas
- We respect people's rights by identifying and mitigating risks
- Labor risks challenge cocoa and palm oil supply chains
- 2025 Goal
- adoption of child labor monitoring and remediation in Cocoa Life West Africa
- 2019 Progress
- adoption of child labor monitoring and remediation systems in Cocoa Life Ghana
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Signature Programs & Partnerships
Focus Areas
Focus Area | 2020 Goals (2013 baseline) | 2019 Status | Focus Area | 2025 Goals (2018 baseline) | 2019 Status | ||||
Well-being | Well-being snacks grow 2xrate of | More needed | Well-being | Renovate & innovate portfolio to meet | Roadmap | ||||
traditional snacks | consumers well-being needs | developed | |||||||
Portion Control, | 15%global snacks revenue from portion | Exceeded: 16% | Portion Control, | 20%global snacks revenue from portion | On track: 16% | ||||
Mindful Snacking | control snacks | Mindful Snacking | control snacks | ||||||
100%Snack Mindfully labeling across | Roadmap in | ||||||||
brands | progress | ||||||||
Sustainable | Palm oil: 100%RSPO sourcing | Achieved | Sustainable | Palm oil: Support sector-wide action | On track: 100% | ||||
Ingredients | Ingredients | towards consistent policies; maintain | |||||||
100%RSPO sourcing | |||||||||
Cocoa: 100%volume for chocolate | On track: 63% | ||||||||
sourced through Cocoa Life | |||||||||
Wheat: 100%wheat for EU biscuits | On track: 65% | ||||||||
sourced through Harmony by 2022 | |||||||||
Environmental Impact | 15%reduction in CO2 emissions across | Achieved | Environmental Impact | 10%reduction in end-to-end CO2 | Roadmap in | ||||
manufacturing operations | emissions | progress | |||||||
10%reduction in priority water usage | Exceeded: 27% | 10%reduction in priority water usage | Roadmap in | ||||||
areas where water is most scarce | progress | ||||||||
20%reduction in total waste from | Exceeded: 21% | 15%reduction in food waste from | Roadmap in | ||||||
manufacturing | manufacturing; 50%from distribution | progress | |||||||
Packaging Innovation | 65,000tonnes packaging elimination | On track | Packaging Innovation | 100%of packaging designed to be | On track: 93% | ||||
recyclable, labeled with recycling info | |||||||||
Social Sustainability | 100%priority tier-1 suppliers covered by | Achieved | Social Sustainability | 100%human rights due diligence system | On track | ||||
27 | human rights due diligence | coverage in own operations & tier-1 suppliers | |||||||
Child labor monitoring & remediation measures | On | track: 27% | |||||||
at 100%Cocoa Life communities in West Africa | |||||||||
- Committed to transparency & disclosure
- Enhancing engagement frequency
- Dedicated to annual reporting
Annual:CDP Climate & Water Submissions
April 2020:2020 Annual Proxy Statement
May 2020:2019 Snacking Made Right Report
- Materiality Assessment
- Alignment to UN Sustainable Development Goals
May 2020:Alignment of existing disclosures to TCFD & SASB frameworks
28
Dirk Van de Put
Chairman & Chief Executive Officer,
Mondelēz International
Shep Dunlap
Vice President,
Investor Relations
29
Christine Montenegro McGrath
Vice President & Chief of Global Impact
Board DirectorWorld Cocoa Foundation
Co-LeaderConsumer Goods Forum Forest
Positive Coalition
Jonathan Horrell
Director, Sustainability
Co-LeaderConsumer Goods Forum Palm Oil Coalition
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Mondelez International Inc. published this content on 08 May 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 08 May 2020 21:28:13 UTC