Naji mwb
Eky Kurniawan
Oddy Medrian
IPMI International Business School
Amelia Naim Indrajaya
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With the goal of lessening its impact on the environment and improving social welfare, Mondelez Indonesia has put in place a strong framework for sustainability that includes a number of activities. The company's implementation of lean manufacturing techniques, industrial symbiosis methods, and resource productivity metrics—all of which enhance eco-efficiency and position the business as an environmental leader.
The organization has received multiple honors for its sustainability efforts, highlighting its leadership in eco-efficiency and commitment to going above and beyond compliance. Mondelez Indonesia employs a strategic and analytical approach to sustainability, utilizing both internal and external analyses. With the help of these assessments, the company identify identifies competitive environmental efforts.
Mondelez has implemented several ESG initiatives to reduce its environmental footprint. These include decreasing greenhouse gas emissions, managing waste, conserving water, and enhancing energy efficiency. Reduce total water use at priority sites by 10%, end-to-end CO2 emissions by 10%, and food waste in internal manufacturing sites by 15% by 2025 compared to the base year of 2018. Additionally, packaging is intended to be recyclable by 2025. Reductions of 5% in virgin plastic and 25% in virgin rigid plastic over the 2020 base are expected by 2025.
100% of the wheat volume required for commercial biscuit manufacture in Europe by 2022 will be grown under Harmony. Through its Cocoa Life and Palm Oil Action Plan programs, Mondelez Indonesia has also promoted sustainable sourcing of cocoa and palm oil; in 2019, the company sourced 100% of its cocoa from Cocoa Life and 100% of its palm oil from RSPO-certified producers.
Furthermore, Mondelez Indonesia's representative mentioned that Mondelez has incorporated a Lean Thinking Approach for waste management, Eco Energy for energy sourcing, and Industrial Symbiosis for the 4R (Reduce, Reuse, Recycle, and Recovery) strategy. By promoting financial savings and operational effectiveness and environmental sustainability, these strategies establish the business as a pioneer in environmental cost leadership.
Additionally, 100% of the cocoa sourced by Mondelez Indonesia is sourced responsibly through the Cocoa Technical Center (PCTC) in Pasuruan, East Java, and 100% of its palm oil is sourced from RSPO-certified suppliers in 2019. These actions demonstrate the company's dedication to eco-efficiency. Utilizing sustainable sourcing methods can help the business reach its overall eco-efficiency goals and lessen the impact of its supply chain on the environment.
The goal of Mondelez's sustainability programs is to create long-term value for its stakeholders while also making a positive impact on the environment and society. This dedication stems from the knowledge that environmentally friendly business practices are critical to their company's success as well as the health of the world and the communities they serve.
The necessity to supply products that are made ethically and sustainably and to live up to customer expectations of responsible business practices are further driving forces behind the company's endeavors. This involves obtaining ingredients—including cocoa and palm oil—through initiatives like the Palm Oil Action Plan and Cocoa Life, which work to establish ethical and sustainable supply chains.
Additionally, Mondelez understands the value of environmental cost leadership and eco-efficiency as ways to lessen its environmental impact and show the industry leadership in sustainability. This is accomplished by implementing techniques including waste management, water conservation, energy efficiency enhancement, and greenhouse gas emission reduction.
In general, a comprehensive approach to business that incorporates social innovation, environmental sustainability, strategic alliances, and an unwavering commitment to sustainability at every level of the organization serves as the inspiration for Mondelez's sustainability programs.
The sustainability initiatives of Mondelez Indonesia have a broad impact that includes social, environmental, and economic aspects. Here's a summary of the key impacts:
Environmental Impact:
By focusing on resource productivity, Mondelez Indonesia has reduced waste and optimized the use of energy and water, leaving a less environmental impact.
As a consequence of the company's dedication to eco-efficiency, the energy, water, waste, and CO2 intensities have been significantly decreased.
Industrial Symbiosis: To minimize waste and make the most of byproducts, Mondelez Indonesia collaborates with other businesses to share resources.
By helping to offset greenhouse gas emissions, participation in carbon credit programs supports international efforts to mitigate climate change.
The introduction of eco-labels, like the Eco Label on Cadbury packaging, encourages consumers to make environmentally friendly selections and raises their awareness of sustainable products.
Social Impact:
Programs like Cocoa Life work to improve the welfare of cocoa growers and their communities by providing training and social development interventions.
Mondelez Indonesia has demonstrated its commitment to gender equality and inclusive work practices by achieving a 40% representation of women in leadership positions.
The organization promotes a culture of social responsibility and personal growth by emphasizing employee participation and volunteerism.
Economic Impact:
Mondelez Indonesia has been able to lower energy, water, and waste management expenses by increasing eco-efficiency, which has helped to promote economic sustainability.
The company attracts more customers who respect ethical and sustainable practices thanks to its sustainability initiatives, which also improve the brand's reputation and competitiveness.
To maintain stakeholder trust, avoid legal issues, and maintain its good name, Mondelez Indonesia adheres to stringent standards pertaining to employment law, ethics, sustainability, and safety. This is made sure by the SMETA evaluation.
Utilizing instruments such as the Porter's Five Forces and VRIO analyses, Mondelez Indonesia is able to comprehend its competitive landscape and formulate strategies that capitalize on its sustainable advantages.
By incorporating sustainability into its value proposition, Mondelez Indonesia is able to innovate and differentiate itself from the competition.
Promoting sustainability initiatives offers Mondelez Indonesia several business benefits, which include:
Enhanced Brand Reputation and Consumer Trust
Consumer Preference: Mondelez's dedication to sustainability can draw and keep customers as consumers show a growing preference for items sourced ethically and sustainably.
Brand Differentiation: By making Mondelez's products stand out in a competitive market, the corporation could be able to increase its market share.
Operational Efficiencies and Cost Savings
Resource Optimization: By focusing on resource productivity and lean thinking, Mondelez can reduce waste and operating costs.
Energy and Water Savings: Over time, reduced energy and water consumption as a result of eco-efficiency improvements decreases total expenses.
Risk Management and Compliance
Regulatory Compliance: Following stringent compliance guidelines, including those evaluated by SMETA, assists Mondelez in avoiding fines and harm to its reputation.
Supply Chain Resilience: By ensuring a stable and ethical supply chain and reducing risks related to environmental and social issues, sustainable sourcing techniques, such as those found in the Cocoa Life program, help to ensure resilience.
Market Access and Growth Opportunities
Certifications and Eco-Labels: Product certifications and eco-labels are useful tools for reaching consumers that value sustainability, such as those who care about the environment.
Innovation: By placing a strong emphasis on sustainable value innovation, new products and services can be created, hence promoting economic growth.
Attraction and Retention of Talent
Employee Engagement: Having a strong sustainability plan helps attract individuals interested in working for a firm that has a positive social and environmental effect and raise staff morale.
Corporate Culture: Organizations that place a strong priority on sustainability tend to respect social responsibility, which can result in greater rates of employee retention.
Long-Term Financial Performance
Investor Appeal: Investors seeking companies with a lower risk profile and a dedication to long-term wealth development may find Mondelez more appealing as a result of its sustainability activities.
Cost Leadership: By achieving environmental cost leadership, Mondelez can maintain a competitive advantage through efficient operations and cost management.
Contribution to Global Goals
Sustainable Development Goals (SDGs): Mondelez's sustainability initiatives support the UN in achieving the SDGs by collaborating with global initiatives to address pressing concerns. In conclusion, in addition to being beneficial for the environment and society, Mondelez Indonesia's support of sustainability initiatives aids in the long-term growth and resilience of the company.
The following environmental and social advantages are essential to Mondelez Indonesia's sustainability programs:
Resilience and means of subsistence of more than 20,000 cocoa growers and their families through the Cocoa Life program. Through providing social development programs and training, this program can improve community well-being and encourage economic stability.
Healthy lives by abiding by ethical marketing standards, such as a 100% adherence to its Marketing to Children Policy.
By reducing energy, water, waste, and CO2 intensities, the company has been able to conserve natural resources and lessen the effects of climate change.
Guaranteeing the sustainability and environmental friendliness of its supply chains by procuring all of its cocoa from Cocoa Life and its palm oil from suppliers who have earned the RSPO certification.
By implementing eco-labels and eco-branding efforts, consumers can be incentivized to recognize the importance of sustainability and make more environmentally conscious purchases.
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Aji Pamungkas, Manufacturing Lead
Al Fath Ilal Haqi, HSe & Security Lead
Located in the green archipelagos of Indonesia, Mondelez Indonesia stands as a beacon of gastronomic delight, intricately weaving a tapestry of beloved brands and delectable treats into the social fabric of the nation. From the comforting embrace of Cadbury Dairy Milk to the playful crunch of Oreo, our products transcend mere snacks, transforming into cherished companions in moments of joy, cornerstones of cultural celebrations, and silent witnesses to countless shared memories.
The history of Mondelez Indonesia, however, extends well beyond the delectable symphony of flavors that grace store shelves. With our roots firmly established in the rich soil of the archipelago, we are committed to flourishing in dynamic harmony with its residents. Mondelez' vision goes beyond simple confectionery alchemy; it is driven by the desire to build a sustainable future, strengthen local communities, and encourage an innovative culture that keeps Indonesians' taste buds tingling with uncontrollably good food.