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Mondelēz 2023 Snacking Made Right Report: Energy

MDLZ | August 14, 2024

NORTHAMPTON, MA / ACCESSWIRE / August 14, 2024 / Driving down our energy emissions is an important part of reaching our long-term goal relating to net-zero carbon. And we're focusing on three key areas to make it happen.

First, we're working hard to improve energy efficiency within our internal operations.

Next, we're taking action to electrify our operations and aiming for all the electricity we're using across our manufacturing sites by 2030 to be renewable by transitioning from fossil fuels to renewable electricity and electrification. Third, we're increasing our use of renewable electricity.

2023 PROGRESS	2018	2021	2022	2023
Total energy consumed (GJ) (22)	17,252,000	17,382,000	17,134,000	16,771,000
Total renewable electricity (%) (22)	-	33 %	40 %	48 %
Manufacturing CO2e emissions from energy (CO2e market-based metric tonnes) (8)	1,325,000	1,077,000	1,005,000	871,000
CO2e emissions reductions across our manufacturing operations (vs. 2018) (8)	-	(19) %	(24) %	(34) %

OUR OPERATIONS

Improving Energy Efficiency
Focusing in our operations, we are working to make our manufacturing plants more efficient by continuously investing in advanced energy-management systems and energy efficient technologies. We're drawing on the "eliminate, substitute, reuse, recycle" principles of the circular economy to progressively reduce our operations' carbon intensity and drive carbon absolute reduction. Solutions already in place are energy efficiency improvements to biscuit ovens and steam boilers, including heat recovery. We also invest in higher-efficiency equipment.

Transition to Renewable Electricity and Electrification
We have been working towards shifting away from fossil fuels as the primary source of the power we use and transferring to biofuels and renewable electricity. Electrification combined with our transition to renewable-sourced electricity are drivers of our decarbonization strategy. We implemented onsite solar panels, and signed long-term wind and solar Power Purchase Agreements (PPAs) in several sites globally supporting new project implementation.

Increasing the Use of Renewable Electricity
We're working closely with governments and suppliers to promote renewable energy wherever we operate - either bought using PPAs or generated on our facilities with onsite solar panels. This approach is working. About half of the electricity we used in 2023 came from various renewable sources, increasing from the approximately 40% achieved in 2022 (22).

2023 IN REVIEW

Throughout 2023, we continued to make the important changes needed to help drive down our energy-related emissions. Our aim to deploy renewable electricity solutions aligns seamlessly with the broader sustainability agenda in our long-term growth strategy by driving decarbonization across our manufacturing footprint, making a major step forward in working towards achieving our sustainability goals.

Collaborations are vital to help deliver our carbon reduction goals and build a more sustainable snacking company and that's why in 2023 we continued and increased our efforts to make the shift to renewable electricity for both on- and off-site, grasping new opportunities as they emerged.

For solar and wind renewable electricity, we are excited to have entered into agreements in several countries where we have invested in onsite solar panels in countries like India, Vietnam, Poland, Thailand, Egypt, Bahrain, Pakistan and Malaysia. For instance, the electricity generated from the solar panel installation at our Skarbimierz plant in Poland is fully consumed by the site. And we continue to maintain approximately 100% renewable energy sources for Khon Kaen plant in Thailand and Sucat plant in the Philippines.

As part of our focus on increasing the use of renewable electricity, we signed 10 to 12-year PPAs with multiple partners. These included contracts in Spain and in Finland. These will start to deliver additional renewable electricity over the next three years.

In 2023, we also invested in several programs to improve energy efficiency with a combined total of approximately $140 million in our European supply chain network, refurbishing ovens and introducing advanced new alternatives to decrease the impact of our outsourced manufacturing activities. This continued to help drive reductions in our Scope 1 and Scope 2 emissions during the year as the proportion of electricity from renewable sources continued to grow.

In Bahrain, we have an agreement to utilize thousands of solar panels for both rooftop and carport applications helping our plant to reduce and offset CO2 emissions.

In Egypt, we have been reducing our emissions by building and measuring an energy management system and integrating energy efficiency projects and cleaner energy projects into operations.

In Morocco, we signed an energy agreement in March 2023 to equip our production site with hundreds of solar panels supporting Mondelez Morocco's ambition to utilize more of its energy needs.

"Electrification combined with our transition to renewable electricity are key drivers of our energy efficiency strategy, further expanding the sustainability of our operations."

Ken Sparkman
Senior Director, Supply Chain Sustainability,
Mondelez International

GLOBAL LIGHTHOUSE NETWORK IN AMEA

In China, in 2023, three of our four plants joined the esteemed league of manufacturers recognized as the Global Lighthouse Network by the World Economic Forum (WEF). This prestigious label signifies their status as trailblazers in implementing Fourth Industrial Revolution technologies (4IR). These factories have reached meaningful milestones and demonstrated exceptional ability in amplifying productivity, promoting sustainability, and fortifying resilience, setting them apart as leaders in their field. In January 2023 Mondelez Suzhou factory which includes two plants (East Suzhou and West Suzhou plant) became the world's first "end-to-end lighthouse factory" for the snack biscuit industry, and also achieved a third-party verified Carbon Neutrality (40). Also in December 2023, Mondelez Beijing plant joined the Lighthouse Network implementing an AI-powered dough-making lights-off workshop and gas consumption optimization with machine learning.

Also, early in 2023 Mondelez India's state-of-the-art Sri City factory became one of the first Indian FMCG plants awarded with the Advanced 4IR Digital Lighthouse Award by the World Economic Forum.

(8) Please see the Carbon Accounting Manual for conversion factors applied. Reported information excludes developed-market gum brands, which were divested as of October 1, 2023 (which differs from previous years). We have recalculated our base year 2018 (where applicable) and most recent years 2021, 2022 and 2023 for year-over-year comparison. Reported information based on latest estimate; independent, third-party verification in-progress. Any updates, if needed, will be included in the ESG Datasheet. Once completed, SGS verification can be found in our ESG Reporting & Disclosure Reporting Archive.

(22) Reported information excludes developed-market gum brands, which were divested as of October 1, 2023 (which differs from previous years). We have recalculated our base year 2018 (where applicable) and most recent years 2021, 2022 and 2023 for year-over-year comparison. Reported information based on latest estimate; independent, third-party verification in-progress. Any updates, if needed, will be included in the ESG Datasheet. Once completed, SGS verification can be found in our ESG Reporting & Disclosure Reporting Archive.

(40) Carbon neutrality is 3rd party verified and includes carbon offsets. Carbon offsets are excluded from the corporate end to end CO2e footprint inline with the Greenhouse Gas Protocol Standard.

View the full 2023 Snacking Made Right Report