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Environmental Footprint

To manage our environmental footprint, we start by understanding environmental challenges and setting our policy. Then, we focus on the areas that are most important to our business and where we can make the biggest impact. We set goals for each area, track our progress and hold ourselves accountable.

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Understanding the challenge


Lifecycle Assessment (LCA)

We measure our company's total land, air and water footprint -- from farm to fork. Based on those findings, we focused our efforts on two areas of our supply chain where we can have the greatest impact: agriculture and our operations – manufacturing and packaging materials. We update the LCA annually and insights from our annual reviews shape our priorities, goals and efforts in the upcoming years. Enhanced LCA data are helping us refine our focus on commodities that contribute the most to greenhouse gas emissions and water footprint in our supply chain. See our 2016 Impact For Growth Progress Report at page 8.To read more about our approach in agriculture, see our Agricultural Supply Chain page.

Climate Change

As a food company, we recognize that our global food system is facing a complex set of challenges – including extreme weather patterns and climate change, as well as biodiversity loss, shortages of clean water and other resources, and the growing competition for land. We focus on reducing the greenhouse gas impact of our operations and supply chains, as well securing supplies of key ingredents by helping farmers adapt to changing climate. Along with members of the Consumer Goods Forum, we support efforts to help end deforestation in key commodity supplies by 2020 and to start phasing out HFC refrigerants from 2015, as a way to fight climate change.

We communicate our strategy on climate change through the Carbon Disclosure Project (CDP). CDP is the most widely recognized disclosure framework for greenhouse gas emissions Read more in our 2017 CDP Climate submission.

Our Environmental Policy

We are committed to reducing the environmental impact of our activities, preventing pollution and promoting the sustainability of the natural resources upon which we depend, while providing quality products that meet the needs of our consumers. We also are committed to the continuous improvement of our environmental performance and to meeting or exceeding the requirements of all applicable environmental laws and regulations. We expect all of our employees to carry out their job responsibilities in accordance with this policy and to report any environmental concerns they have to management.

reducing the impact of our operations

Although the impact of our operations on the environment is much smaller compared to agriculture, the smart and sustainable use of raw materials in our own operations is an important contribution to the well-being of our planet. Our 2020 sustainability goals are an ambitious end-to-end approach to reduce our environmental footprint.

Read about our progress in reducing our environmental impact in our 2016 Impact For Growth Progress Report.

Reducing Our Manufacturing CO2 Emmissions

We adopted science-based targets to reduce our absolute CO2 emissions from manufacturing by 15 percent. This aligns with current approaches to setting science-based targets to support the global effort to limit climate change to less than 2º C. We’re on track to deliver this goal, having reduced CO2 emissions from our factories by 7 percent since 2013. We’ve reduced energy consumption by improving energy management systems and investing in energy efficient technologies in our factories.

We also cut CO2 emissions by using low-carbon renewable energy sources. For example, our powdered beverage facility at Khon Kaen, Thailand, became the first manufacturing plant in Mondelēz International to switch from grid electricity and move to 100 percent renewable energy in 2016.

In late 2015, our chocolate factory in Upplands Väsby, Sweden converted heavy oil burners to use waste vegetable oil instead, significantly reducing CO2 emissions while saving operating costs. CO2 emissions averaged 45 metric tonnes per month by the end of 2016, compared to an average of 90 metric tonnes previously.

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Saving Water

Based on a comprehensive risk assessment, we have identified priority sites in areas where water is most scarce. We target our water reductions in these locations. Our goal is to reduce absolute water use by 10 percent at priority manufacturing sites where water is most scarce.

Our U.S. bakery in Fair Lawn, New Jersey reduced incoming water consumption by 350 million liters from 2013 to 2016 by replacing water-cooled air compressors with air-cooled units and by converting from once-through to closed-loop cooling water systems.

Through 2016, 18 percent of our incoming water usage in priority locations has been reduced. Our 2020 goal of reducing water usage in priority locations by 10 percent includes the impact of new manufacturing lines and sites, which we anticipate will add to our future absolute water use.

In 2013, we expanded our disclosure to include the CDP Water assessment. Read more in our 2017 CDP Water submission.

Cutting waste

Our focus has been on reducing waste in manufacturing, where we continually search for innovative reduction solutions. We’ve raised awareness of the value of reducing waste among our factory employees and adopted lean manufacturing techniques, such as Integrated Lean Six Sigma, to ensure we use resources efficiently and reduce waste.

At the end of 2016, we reduced total manufacturing waste by 10%, vs our 2013 baseline. Our bakery in Beijing, China, which is already at best-in-class performance for minimizing waste, reduced an additional 240 tonnes of waste in 2016 by benchmarking against similar factories, building capability and implementing a site-wide zero-loss/zero-waste mindset.

Packaging

Over the years, teams have worked to optimize packaging design and source materials that perform and protect with the minimum packaging possible. Small adjustments can have a huge impact.

By continually optimizing package design, we can minimize our environmental impact. Using less packaging provides an economic benefit, not only in material costs, but also in transportation and disposal. This helps us to reduce our overall CO2 emissions and operate more efficiently. It ultimately reduces costs to the business and thus helps us to contribute to our goal to create more fuel to power our growth. By eliminating packaging, we saved an estimated 100,000 tonnes of annual CO2 emissions from 2010-14. We also reduce the amount of waste that consumers and local authorities have to handle. That’s good for people, businesses and the planet.

We also support recycling. Within Europe, our largest region, over 75 percent of our packaging is paper-based, glass or metal — all of which are either currently recycled or recyclable. Around 70 percent of our paper-based packaging is from recycled sources. The remaining 25 percent of packaging is predominately thin flexible films, which are optimized to limit food waste and spoilage. Where possible, we use single material types rather than multi-material laminates. These films are already, in principle, designed to facilitate recyclability, where facilities exist. Over 80 percent of these films already meet these criteria and we’re moving the remainder of our flexible packaging to single materials where possible.

By the end of 2016, we eliminated 46,300 tonnes of packaging, since 2013, towards our 2020 goal of 65,000 tonnes. To help us achieve our goal, we have hundreds of programs globally that contribute to packaging optimization and elimination. Highlights from 2016 are:

  • North America: 23 percent thinner packaging for Oreo biscuits eliminated 1,496 metric tonnes (MT) of cartons annually.
  • Latin America: Primary and secondary packaging redesign for Tang powdered beverages led to the following material reductions: 5 percent in flexible films, 12 percent in cartons, 19 percent in corrugate and 46 percent in trucks required to transport the finished product.