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Mondelez linked to deforestation in cocoa and palm oil supply chains, report finds

A compliance assessment by Netherlands-based AidEnvironment has identified forest clearing in cocoa and palm oil supply chains potentially linked to the Cadbury chocolate owner, raising questions about the gap between the chocolate manufacturer’s sustainability commitments and implementation on the ground.
mondelez

Environmental nonprofit AidEnvironment has released a compliance checker assessment linking Mondelez International to potential forest loss across its cocoa and palm oil supply chains in Côte d’Ivoire, Cameroon, Brazil and Indonesia.

The report identified six case studies where over 4,100 hectares of native forest were cleared after both Mondelez’s own deforestation cutoff date and the European Union Deforestation Regulation’s 2020 baseline. The findings represent what AidEnvironment describes as systemic weaknesses in traceability, transparency and supplier oversight rather than isolated incidents.

Mondelez, which owns brands including Cadbury and Côte d’Or chocolate, has positioned itself as a leader in sustainable cocoa sourcing through its Cocoa Life program and has been a founding member of the Cocoa & Forests Initiative since 2017. The company has committed to investing one billion U.S. dollars in Cocoa Life from 2012 to 2030.

According to Mondelez’s 2024 Snacking Made Right ESG report, approximately 91% of cocoa volume used in its chocolate brands is sourced through Cocoa Life using a mass-balance approach, with a target to reach 100% by 2025. The program operates in Brazil, Ecuador, Côte d’Ivoire, Ghana, Nigeria, Cameroon, India and Indonesia.

Transparency concerns and EUDR advocacy

AidEnvironment’s assessment highlights declining transparency in Mondelez’s supply chain disclosure. The company has not publicly released its cocoa supplier list since 2021, according to the report. The organization also points to Mondelez’s reliance on mass-balance sourcing systems, which by design make large volumes of products untraceable as certified and uncertified materials are mixed.

“Mondelez helped build the narrative that traceability and compliance are achievable and then stepped back when accountability approached,” said Sarah Drost, senior researcher at AidEnvironment. “If the company is serious about its commitments, it should use its market position to accelerate EUDR readiness — not slow it down.”

The report notes that Mondelez supported delaying the EU Deforestation Regulation, which was postponed by one year in December 2025 and is now set to take effect in 2026. In July 2025, Mondelez called for a further delay to the regulation, stating it must be workable in practice. This stance drew criticism from 35 Ivorian NGOs, which publicly denounced the company’s position in September 2025.

The EUDR bans the sale of products linked to land deforested after December 2020 and requires companies to have full traceability of their supply chains down to the farm level for commodities including cocoa, palm oil, cattle, coffee, soy, rubber and wood.

Palm oil sourcing practices

For palm oil, Mondelez states in its ESG report that it engages with key suppliers to supply only deforestation-free palm oil. The company has been certified by the Roundtable on Sustainable Palm Oil since 2013 and publishes a mill list on its corporate website.

Mondelez’s Palm Oil Action Plan requires suppliers to be responsible for preventing deforestation in their operations and supply chains by mapping and monitoring plantations and engaging with any that fail to comply. The company accounts for approximately 0.5% of global palm oil demand.

AidEnvironment noted that Mondelez did not respond to repeated requests for clarification on the findings presented in November 2025, contrasting this with other companies that engaged constructively with the compliance checker process. Mondelez had not responded to requests for comment at the time of publication.

The organization has called on Mondelez to reinstate public disclosure of its supplier lists and establish a timebound roadmap to transition from mass-balance sourcing to segregated or identity-preserved traceable supply chains.

In West and Central Africa, where Mondelez sources significant cocoa volumes, deforestation has dramatically reshaped landscapes. Côte d’Ivoire and Ghana have lost 94% and 80% of their forest cover respectively over the past 60 years, with an estimated one-third of forest loss attributable to cocoa farming. Cameroon, which exports 80% of its cocoa to the European Union, has seen surges in forest loss in recent years as it emerges as a new cocoa frontier.

Mondelez also refused to participate in the NGO coalition Voice Cocoa Network’s Chocolate Scorecard and received the lowest ranking among chocolate manufacturers in the 2025 Cocoa Barometer’s deforestation and climate category, according to AidEnvironment.

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