DEFA14A: Mondelz International Focuses on Sustainability and Growth in Latest Shareholder Engagement Report

Mondelz International's Spring 2025 Shareholder Engagement report highlights the company's commitment to sustainability, growth strategy, and corporate governance.

Summary

• Mondelz International's Shareholder Engagement report for Spring 2025 outlines the company's strategic pillars: growth, execution, culture, and sustainability.
• The company reported $36.4 billion in net revenues for 2024.
• Mondelz aims to champion more sustainable snacking through environmental and social initiatives.
• The company is making progress towards its 2025 sustainability goals, including sourcing cocoa via Cocoa Life and reducing CO2e emissions.
• The Board of Directors recommends voting for all company proposals, including the election of director nominees and the approval of executive compensation.
• Mondelz has robust due diligence procedures to assess supplier human rights risks and promote compliance with its Supplier Code.
• The company is working towards net-zero emissions by 2050 and has transparent lobbying disclosures.
• Mondelz is committed to respecting human rights across its value chain and has scaled down activities in Russia while supporting Ukrainian people and refugees.
• The company aims to advance a circular economy for packaging and has partnered with Amcor to invest in advanced recycling technology.

Sentiment

Score: 8

Explanation: The document presents a positive outlook on Mondelz International's performance, sustainability efforts, and corporate governance, indicating a favorable sentiment.

Positives

• Mondelz International has shown strong, consistent results since the 2018 long-term strategy launch.
• The company is making significant progress towards its sustainability goals, particularly in cocoa sourcing and emissions reduction.
• Mondelz has robust governance and oversight of lobbying activities.
• The company is committed to human rights and has implemented due diligence processes in its supply chain.
• Mondelz is actively working to advance a circular economy for packaging.

Negatives

• The company's annual incentive financial performance metrics earned at 74% of target (Corporate).
• Strategic Progress Indicator Goals earned at 105% (corporate), 105% (Europe), and 88% (North America) of target.

Risks

• Historical, current and forward-looking sustainability related information and statements may be based on standards for measuring progress that are still developing, internal controls and processes that continue to evolve, and assumptions that are subject to change in the future.
• The company's goals are aspirational in nature and are not intended to create legal obligations or rights.
• The company cautions that this information is approximate, that these statements and information are not guarantees of future performance, nor promises that our goals will be met, and are subject to numerous and evolving risks and uncertainties that we may not be able to predict or assess.
• In some cases, the company may determine to adjust its commitments or goals or establish new ones to reflect changes in its business, operations or plans.

Future Outlook

Mondelz International aims to continue its growth strategy, focusing on sustainability and consumer-centric innovation, while navigating inflationary pressures and macro volatility.

Management Comments

• Effective execution of our long-term strategy under our current leadership has led to strong, consistent results.
• The company is committed to respecting the human rights of people, including freedom of association and collective bargaining, in our value chain.

Industry Context

Mondelz International's focus on sustainable packaging and ethical sourcing aligns with growing consumer and investor demand for environmentally and socially responsible practices in the food industry.

Comparison to Industry Standards

• Mondelz's commitment to sustainable packaging aligns with industry initiatives like the Ellen MacArthur Foundation's Global Commitment.
• The company's human rights due diligence processes are in line with the UN Guiding Principles on Business and Human Rights.
• Mondelz's emissions reduction targets are science-based and validated by the Science Based Targets initiative (SBTi).

Management Changes

Stakeholder Impact

• Shareholders: The company's performance and governance practices impact shareholder value.
• Employees: The company's workplace culture and employee stock purchase plan affect employee engagement and retention.
• Customers: The company's sustainability efforts and product quality impact customer perception and loyalty.
• Suppliers: The company's supplier code of conduct and due diligence processes affect supplier relationships and ethical sourcing.
• Communities: The company's social initiatives and support for Ukrainian refugees impact communities.

Next Steps

• Shareholders are encouraged to vote on the company's proposals.
• Mondelz will continue to implement its sustainability initiatives and report on its progress.
• The company will continue to monitor and address human rights risks in its value chain.

Key Dates

Keywords

sustainability, shareholder engagement, corporate governance, financial performance, human rights, packaging, emissions reduction, Cocoa Life, Mondelz International