Mondelez Issues CPG Industry's Largest Green Bond Ever

The funds are dedicated toward sustainable sourcing, reducing packaging waste and tackling climate change.

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CHICAGO — Mondelēz International, Inc. announced Sept. 3the successful pricing of its group’s first green bond, the largest ever green bond in the Packaged Foods and Consumer Goods Industry. The green bond issuance by Mondelēz International, Inc.’s wholly-owned subsidiary, Mondelez International Holdings Netherlands B.V., totals €2.0 billion and consisted of $770 million of 0.250% notes due September 2029, $770 million of 0.625% notes due September 2032 and $823 million of 1.250% notes due September 2041. The notes are fully guaranteed by Mondelēz International, Inc.

“I am proud to announce that we successfully placed our first green bond offering – the largest issuance to date within our industry,” said Dirk Van de Put, Chairman and Chief Executive Officer. “Our purpose – to empower people to snack right – guides our company and the impact we seek to have on people and the planet. We remain laser focused on building a more sustainable snacking company and this green bond issuance is an important testament to our commitment to advancing our ESG agenda.”

Mondelēz International intends to allocate the net proceeds from the offering to eligible projects that further the company’s commitment to more sustainably sourced ingredients, reducing waste in packaging, and tackling climate change. The eligible project categories – environmental management of living natural resources and land use, more sustainable water and wastewater management, pollution prevention and control, renewable energy, energy efficiency, and clean transportation – are designed to protect and regenerate the environment and are in alignment with the United Nations Sustainable Development Goals. Within these categories, focus areas that are aligned to Mondelēz International’s ESG priorities include:

Sourcing Sustainable Ingredients
Mondelēz International is focused on the resilient supply of key raw materials. As one of the world’s largest chocolate manufacturers, the company’s signature sustainable sourcing program, Cocoa Life, invests in innovation, collaboration and on-the ground support for nearly 200,000 farmers to address the root issues cocoa farming communities face.

Reducing Waste in Packaging
Mondelēz International aims to find new, smarter plastic packaging solutions that use less virgin material and to advance harmonized approaches to recycling systems and infrastructure. Funds will go toward efforts to create a more circular economy where packaging, including flexible film, is reused or recycled.

Tackling Climate Change
Last year Mondelēz International joined the Science Based Targets Initiative (SBTI) and set greenhouse gas emissions reduction targets consistent with helping keep global warming well below 2°C. These goals extend to reducing the environmental impact of growing the commodities essential to the business.

“Snacking Made Right is part of everything we do at Mondelēz International. Now more than ever is the time for companies to do what’s right and drive more sustainable business growth, and ESG investment is a critical element of that mission,” said Chris McGrath, VP & Chief of Global Impact & Sustainability. “This offering reflects our commitment to doing business the right way to reduce our impact on the environment, have a positive influence on society, and advance sector-wide lasting change. We look forward to working with our stakeholders to continue advancing these initiatives.”

Institutional Shareholder Services ESG (ISS ESG), a leading global provider of environmental, social, and corporate governance research and ratings, has published a Second Party Opinion (SPO) on Mondelēz International’s green bond framework. ISS ESG reviewed Mondelēz International’s green bond framework and found that the planned use of proceeds is consistent with Mondelēz International’s sustainability strategy and material ESG topics. ISS ESG’s SPO offers investors additional insight into the alignment of Mondelez International’s green bond framework with the Green Bond Principles.

Mondelēz International will publish annual updates on the allocation of the proceeds until the proceeds have been fully allocated to projects meeting the eligibility criteria. These updates will be reported publicly on Mondelēz International’s website at www.mondelezinternational.com and may include additional descriptions of select projects, and, where possible, their environmental and/or social impacts.

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