The Circular Strategies Behind the Mondelēz Supply Chain

Mondelēz International has published its 2025 sustainability progress report.

The document details how procurement decisions and technology investments are reshaping the company's operations across cocoa sourcing, packaging materials and climate targets.

According to the report, Mondelēz generated net revenues of approximately US$38.5bn in 2025. The company operates in more than 150 countries with brands including Oreo, Cadbury Dairy Milk and Toblerone.

Cocoa procurement system expansion

The Cocoa Life programme now covers approximately 100% of cocoa volume sourced for Mondelēz's chocolate business. This means the company has visibility across its entire cocoa supply chain for these products.

More than 257,000 registered farmers participate in the Cocoa Life initiative. The programme focuses on forest protection and restoration while working to build what the company describes as more profitable businesses and resilient communities.

Mondelēz is pursuing what it calls an enhanced enterprise-wide sourcing strategy for cocoa. This includes securing supply through geographic flexibility and large-scale farming operations.

The company has formed partnerships with food-tech start-ups to develop alternatives such as lab-grown cocoa. This could show an attempt to diversify ingredient sources beyond traditional agricultural methods.

Mondelēz is making investments in enhanced crop forecasting processes. These predictive technology tools are designed to improve supply accuracy across its cocoa procurement operations.

The company is updating its smallholder programmes to align with evolving regulatory landscapes and consumer expectations. Mondelēz is also a founding member of the TogetherCocoa Foundation, which collaborates with governments and other companies.

"Focus, innovation and impact at scale have always been at the heart of our sustainability work," says Christine Montenegro McGrath, SVP Chief Impact & Sustainability Officer at Mondelēz International.

"Ever humble, but determined, we remain focused on contributing to the future of more sustainable snacking and delivering sustainable business growth."

Emissions reduction through sourcing

The company has a 2030 target to reduce end-to-end CO₂e emissions by 35% against a 2018 baseline. The Cocoa Life programme contributes to progress against this target, according to the report.

Mondelēz exceeded a target of a 10% reduction in absolute water usage in priority sites by 2025. The company realised an approximately 18% reduction versus the 2018 baseline.

The multinational has introduced recycled content packaging for Cadbury in Australia. This contributes to progress achieved against its 2030 recycled plastic content target as part of what the company describes as a commitment to a more circular economy for plastic.

Local sustainability initiatives and global partnerships continue to reduce the environmental footprint, according to the report. The company frames these efforts as part of broader decarbonisation work across its supply chain.

Recycled plastic material sourcing

Mondelēz has shifted its procurement strategy to source more recycled plastic materials. This has enabled an annual reduction of approximately 1,000 tonnes of virgin plastic across the European market.

The company completed a transition from sourcing rigid plastic trays to procuring alternatives that contain approximately 80% recycled plastic. This change applies to several of its European flagship brands.

Mondelēz aims to deploy these packaging improvements at scale across major European markets. The company specifically identifies the UK, France, Spain, Germany, Austria and Switzerland as target regions.

This achievement demonstrates the company's commitment to scaling recyclable materials and piloting circularity solutions within its supply chain, according to the report. Mondelēz has also joined The 100+ Accelerator, an initiative providing access to eco-entrepreneurs to further scale environmental solutions.

"Our path forward is grounded in long-term, sustainable business growth – shaping, creating and accelerating the future of snacking for generations of consumers to come," adds Dirk Van de Put, Chair & Chief Executive Officer at Mondelēz International.

"We remain focused on innovating with excellence, implementing long-term structural actions intended to enhance business resilience, embedding sustainability into our everyday work and delivering long-term value for our many stakeholders."