Harmony Little things can really matter
2 | Harmony
Little things can really matter Like a biscuit . It’s not just a tasty little way to get energy; it’s a precious moment – for myself or to share with others. Or a bee. It’s only small but it’s responsible for making our global food system work. At Mondelez International , we know it’s really important to take care of the little things – particularly when they’re as delicious as our biscuits, or as essential as bees. Our global food system is facing a complex set of challenges. From climate change, to biodiversity loss, to resource shortages, it’s harder than ever to provide tasty, nutritious, food in a sustainable way for the world’s growing population . As one of the world’s biggest food and drink companies – and Europe’s largest biscuit baker – Mondelez International has a role to play, both in understanding these challenges, and in overcoming them . Wheat is the main ingredient in our biscuits. Through Harmony – our sustainable wheat program – we’re taking action to improve the sustainability of our biscuits, and our business.
This document will tell you all about Harmony: where it started , how it works and what it’s achieved so far. And , on page 13, you can discover how Harmony fits into Mondelez International’s Well-being strategy, which includes our two other agricultural programs – Cocoa Life and Coffee Made Happy. If you don’t have much time, turn to the next page to read our two-minute summary of Harmony. Otherwise, we recommend you grab a drink and a biscuit , and tuck in !
3 | Harmony in 2 minutes
Harmony in 2 minutes What is Harmony?
Harmony and biodiversity
Harmony is Mondelez International’s sustainable wheat program . The Harmony Charter is the tool we use to put that program into action in our wheat fields. It’s a set of 49 agricultural practices that address issues such as wheat variety selection , soil rotation , farmers’ safety, traceability, biodiversity and pesticides. Farmers become part of Harmony by signing up to the Charter, which is renewed and improved every year.
Our global food supply depends on biodiversity. Pollinators – like bees and butterflies – help many plants reproduce. They’re responsible for 70% of agricultural crops1 – including fruits (like apples, cocoa , strawberries and melons) and vegetables (like eggplant and zucchini).
Harmony is about … 1
P artnering with farmers as close as possible to our factories.
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M ore sustainable agricultural practices.
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M aking a positive impact on local biodiversity.
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T raceable wheat from grain to biscuit .
Harmony helps preserve and enhance local biodiversity: every Harmony farmer dedicates at least 3% of every wheat field to specially chosen flowers that give pollinators the food they need .
What next for Harmony? Today, about 1700 farmers have partnered with Harmony across Europe. That means, in 2015, we can use Harmony wheat for 75% of Mondelez International biscuits sold in Western Europe. That’s a big change from when we started in 2010, with 68 farmers producing Harmony wheat for only 2% of our biscuits.
Highlights of achievements so far:
20%
reduction in pesticide use in Harmony fields* *versus the national average Treatment Frequency Index in France².
In 2013, we observed 7 million bees 32 species of butterfly
1700 farmers in France, Spain , Poland and the Czech Republic 190,000 tonnes of flour for the 2014 harvest
In 2013, our farmers sowed 30,000 hectares Harmony wheat
900 hectares flowers
The principles of the Harmony Charter The Harmony Charter is based on a set of 49 sustainable agriculture practices, which fit under the following four principles:
Partners We prioritise partnerships with farmers as close as possible to our factories and our factories’ mills.
Practices A Harmony farmer applies respectful agricultural practices – including choosing more resistant wheat varieties, soil management , limiting the use of pesticides and fertilizers, and caring for water resources.
Biodiversity 70% of the fruits and vegetables we eat depend on bees and other pollinators. So, 3% of every Harmony field is dedicated to growing the flowers that attract and support them .
Traceability Every Harmony field has a Crop Sheet , which includes its location , the previous crop, the wheat variety chosen and a record of any intervention on the field (including which pesticide was used , how much and the justification). 10% of our farmers are audited at random by third party professionals for all 49 practices of the Harmony Charter. 100% of our millers are also audited on traceability every year.
5 | Introducing Harmony
Introducing Harmony
The Harmony Charter Step by Step
Wheat is the main ingredient in our biscuits. Harmony is our sustainable wheat program .
Choose wheat varieties that are best suited to the land and more resistant to disease.
Dedicate 3% of every wheat field to an action for biodiversity – wild flowers, hedgerows, or inter-culture.
It all started in 2007, when we asked 200 employees to help us create a vision that would improve our business, our biscuits and our impact on the environment . Together, we came up with the idea of working with farmers to grow our wheat in a way that respects biodiversity and improves the quality and traceability of our biscuits.
Select fields according to the previous crop to enhance fertility and limit risk of disease.
Cooperatives are groups of farmers as close as possible to our millers and factories. They provide technical advice to farmers and store Harmony wheat in dedicated silos to ensure traceability.
The Harmony Charter, focusing on sustainable agriculture and biodiversity protection , is what brings our vision to life. We know wheat is important because a life cycle analysis of our biscuits showed that 70% of our environmental impact comes from agricultural raw materials. But it’s also important that we tackle the remaining 30% of our impact . This means everything from reducing waste, energy and water consumption in our factories, through to encouraging our consumers to recycle packaging. You can find out more about our wider impact , and the steps we’re taking as a business to reduce it , on page 13.
Take preventative action to prevent pests and disease – such as observing climate and soil , and favouring integrated actions.
Millers grind the Harmony wheat and mix specific blends to get the best flour for each type of biscuit .
When necessary, use precision agriculture to intervene – such as targeted irrigation , fertilizer and treatment .
The wheat harvest changes every year. Millers and our factories adapt their processes to consistently deliver the best quality biscuits.
Keep a Crop Sheet for every field and record all relevant information , such as wheat variety, any interventions taken , and the reason for them .
Harmony places the highest possible value on the safety and security of everyone connected to the program – from farmer through to consumer.
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Harmony is much more than an agreed set of guidelines. It’s an approach that means we can connect people across our supply chain and with external stakeholders. By making these connections, we can act as a catalyst for positive change. For example, by bringing NGOs and farmers together to work on biodiversity we can create a realistic plan for improving practices. We then use the insights from these kinds of sessions to review and improve the Harmony Charter every year.
When we were devising Harmony in the first place, our partners told us that tackling the often-neglected issue of local biodiversity was essential , and they helped us design the right practices. Every year, we run workshops with all our stakeholders to find new ways to progress: • In 2012, we organised a panel of experts to identify new ideas to explore in the year ahead : these included , for example experimenting with soil biodiversity actions at some pilot farms.
A stakeholder-led approach
• In 2013, the decision was made to limit the use of storage insecticide to exceptional cases, in order to accelerate the progress of a preventative approach .
We’ve been working collaboratively with our stakeholders since 2008. These include NGOs – like Noé Conservation – agronomists, environmental specialists, research organisations, and workers from along our supply chain – like farmers, farmer cooperatives and millers.
• In 2014, Harmony organised four roundtables to discuss some of the biggest issues facing tomorrow’s agriculture: Pesticide transfer in water, Soil and territory biodiversity, Biscuit wheat properties and Storage best practices.
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FRB is the Foundation for Research on Biodiversity. In total , Harmony funded six innovative research projects, for example, on the rehabilitation of a green corridor on agriculture landscape and agro-forestry impact on domestic bees.
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More than a rule book
Arnaud Greth Noé Conservation
Jean-François Silvain FRB
“ Sonia Le Masne, Mondelez International
Harmony is a journey, and success is down to the passion and the dedication of the people involved – both inside and outside our business. They are committed , open to change and ready for the challenge of on-going progress.
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Building Harmony together
We think the Harmony program is really innovative. It means we can mobilise farmers to take action for local biodiversity, and it raises awareness of these issues for other audiences, like consumers and Mondelez International employees.
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6 | Introducing Harmony
7 | Introducing Harmony
Spotlight on biodiversity Mondelez International created Harmony to spread sustainable agricultural practices across our biscuit supply chain. We asked our stakeholders to make our program as strong as possible and they identified biodiversity as a crucial issue to tackle.
What is biodiversity? Biodiversity is the variety of species in our natural environment. It encompasses humans, animals, flora, bacteria, their habitats, and interactions between them all.
Why is biodiversity important for the food chain? Our global food system is entirely dependent on pollinators – 70%1 of the world’s agricultural production for human consumption depends on bees and other pollinators, and it’s estimated they’re worth €153 billion to our global food system3. Pollinators make it possible for plants to reproduce and fruits to be produced by transporting pollen. So without them we wouldn’t have tomatoes, apples, strawberries, avocadoes, onions, pumpkins, almonds... the list goes on and on.
70% of the world’s agriculture depends on pollinators1
In order to thrive, these pollinators need to find pollen and nectar, which can be scarce in monoculture landscapes.
pollinator s with
What can Harmony do to help? Agriculture depends on biodiversity, but the reverse is also true. The way we grow our food can either damage local biodiversity, through things like intensive monoculture, or improve it, through actions like planting flower zones to attract pollinators and responsible use of pesticides.
hout pollinators wit
Today, every Harmony farmer dedicates at least 3% of every wheat field to flowers. The flower mix is carefully chosen to attract a wide variety of pollinators and to have a long flowering time. We’re measuring the number and variety of pollinators in Harmony fields using two scientific methods: the Propage Protocol is for counting butterflies; the Foraging Intensity Protocol is for bees. We share results with the Museum of Natural History in France, who consolidate similar measurements from across the country. In 2013, we observed 7 million bees and 32 different butterfly species on Harmony fields4.
and many more
and many more
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8 | Introducing Harmony
I’m looking forward to explaining to my grandchildren that the biscuits they love have been made with their grandpa’s wheat .
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Jacky Beaulant , Farmer
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We work closely with Harmony farmers to make sure they have everything they need to follow the Charter’s practices.
Our position on pesticides The Harmony Charter encourages farmers to develop more sustainable techniques for limiting the use of chemicals on their fields.
Philippe Florentin , Farmer cooperative
This starts with a preventative approach that’s based on agronomics. The farmer cooperatives we work with use their expertise and experience of the local context to help farmers observe, anticipate and prevent disease.
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For example, cooperatives will make sure that the right field is selected according to the previous crop, soil work or wheat sensitivity to reduce the risk of disease. They’ll also choose the wheat variety most likely to thrive in the region . This approach will help reduce the need for pesticide use later on .
We are responsible for the traceability of the Harmony wheat – from grain to flour to factory.
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Christophe Duchez, Miller
When treatment is required , we encourage the use of GPS systems, which allows for great precision . It means only the portion of a field that is affected will be treated , and that exactly the right dose is used . The Harmony Charter also contains a list of forbidden pesticides and other chemicals. We have been using this approach for four years in France, along with several other techniques, and have already seen a 20% reduction in pesticide use versus the national average2.
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Seven years ago, we asked 200 employees to participate in building our biscuit category’s corporate vision . One that would improve our business and our biscuits, that would give pride and meaning to what we do everyday, and that would bring us closer as a team . Together, we came up with the idea of working with farmers to grow our main ingredient – wheat – in a way that better preserves the environment and secures the quality and traceability of our biscuits. Harmony is an innovative, practical approach that will help us fulfil our purpose. Today, thanks to the commitment and collaboration of thousands of people across the biscuit supply chain , and across our organisation , the Harmony program continues to thrive. The program has had a big effect on how many of these people work – it’s a journey we’re on to become both more expert and more fulfilled .
For example, our wheat buyers aren’t only commodity traders; they’re responsible for building long-lasting relationships with our suppliers because we now book wheat almost two years in advance. In the same way, our Quality team now works on the Charter with Harmony partners and external advisors, organises audits and biodiversity counting protocols.
Harmony is made up of: 1700 farmers
13 millers
32 farmer cooperatives
40+ Mondelez International employees
5+ R&D
millions of happy consumers
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Since the program started five years ago, we’ve facilitated dialogue and encouraged collaboration along the wheat chain – between farmers, NGOs, scientific experts and our biscuit makers.
Elodie Parre Harmony Program
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To make good biscuits we need good wheat flour. Every year, we invite farmers to visit our factories. By building relationships with them , we can work even better together.
Javier Aguilera Factory
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Our purpose is to provide the best for our consumers and for the environment .
Alfredo Pimper, R&D
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People at the heart of Harmony
We work with breeders, millers and farmer cooperatives to select the right varieties and blends of wheat for the biscuits. For example, we use Bagou for a soft cake and Arkeos for a dry biscuit … it’s an art !
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9 | People at the heart of Harmony
10 | People at the Heart of Harmony
How Harmony works
Annual factory visits for farmers to see how their wheat is used .
Luis Miguel 1
Farmers
We favour farms that are as close as possible to our mills and factories. Elisabeth
Harmony looks at the whole biscuit supply chain , and helps the people acting along it to work together to make it more sustainable.
Our farmers: • apply the Charter • sow bee-friendly flowers in their fields to support local pollinators.
Farmer cooperatives help us select new Harmony farmers.
Philippe
Auditors
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• visit a random 10% of our farmers. • visit 100% of our millers to verify traceability from biscuit flour to grain .
Farmer cooperatives are Harmony’s eyes on the field . Our farmer cooperatives: • store Harmony wheat in dedicated silos or cells to secure traceability. • train and support farmers in following the Harmony Charter.
Did you know? We need different wheat varieties for different biscuits, like our soft Barni cakes and our harder Belvita breakfast biscuits.
Farmer cooperatives
Fabrice
4 3
Christophe
Hugues
To factories and consumers › › ›
Millers
Millers are our entry point into the wheat chain – they identify the right cooperatives and farmers for Harmony to partner with .
Our millers: • use separate storage areas for Harmony wheat and flour to ensure traceability of our biscuits. • grind the different Harmony wheat blends we need for our biscuits.
Marie
11 | Harmony results
Harmony results Harmony is a success for our business, for people along our supply chain , and for our local environment .
Delphine Farmer Maciej Breeder
Fabrice Miller
Results for farmers When we ask our farmers what Harmony means to them , the overwhelming response is that it makes them feel proud . This comes down to two things: knowing where their wheat is going (we run factory visits every year), and receiving recognition for their efforts. We also often hear how a Harmony farmer sees nature as his or her working tool . That means it makes sense for them to protect and improve it wherever possible. So that they can be sure of leaving the best possible legacy.
Javier Factory
Philippe Farmer cooperative
PRINCE Biscuit
Our environme n
t
Results for our consumers
Results for nature
Results for our business
People want to know more about what they eat – the ingredients, where they come from , and how they’ve been grown . The more we can tell the story of what’s in our products, the more our consumers will trust their quality.
In 2015, Harmony farmers will supply the wheat flour for 75% of Mondelez biscuits sold in Europe. That means 190,000 tonnes of wheat flour that’s grown in a way that is better for nature – from fewer pesticides to greater biodiversity. We’re learning more about sustainable agriculture every year, and improving the Charter as we go.
Harmony continues to be a great success for our business.
Our consumers trust the Harmony logo because they understand it stands for quality and traceability. We include further information about the main commitments of Harmony on-pack.
In a field survey in 2013, experts reported 7 million bees and 32 different species of butterflies on Harmony farmer land4. • Over the last three years, we’ve tracked a 20% reduction in pesticide use versus the national average on Harmony farms in France2.
• In 2010, Petit LU (the first brand to put Harmony on pack) saw a sales turnaround in the space of one year, from -7% to +9%. • In 2013, LU was one of the only brands among its competitors that became more trusted by consumers. • In 2014, our Fontaneda brand in Spain has started to tell its consumers about Harmony. • In 2015, 75% of Mondelez International’s biscuits sold in Western Europe will be made with Harmony flour.
12 | Harmony Results
Key
Where next for Harmony? The first Harmony wheat harvest took place in 2009. In 2010, the first Harmony biscuits were launched on shelf. Thanks to 68 farmers, there was enough wheat to supply Petit LU in France, which accounts for 2% of Mondelez biscuits in Europe. The following year, with 650 farmers now signed up, that number rose to 13%. In 2012, 930 farmers signed the Harmony Charter, and we started supplying wheat for Prince and Lulu L’ourson .
Country where we grow Harmony wheat . Biscuit factory where we use Harmony wheat .
have partnered with Harmony. That means, in 2015, we should be able to use Harmony wheat for 75% of the Mondelez biscuits sold in Western Europe. The next big step is working with farmers in Poland and other countries in Central Europe to help them implement the 49 guidelines of the Charter and start growing Harmony wheat .
75%
Because Harmony has been so successful at taking care of the little things in France, today about 1700 farmers across Europe
60% 44%
32% 2%
13%
2010
2011
2012
2013
2014
2015
68 farmers
650 farmers
930 farmers
1000+ farmers
1700 farmers
Western EU
13 | The call for Well-being
The Call For Well-being At Mondelez International , we’ve seen that the growth of our business is directly linked to the well-being of the people who make and enjoy our products and the communities we serve. The Call For Well-being is a callto-action for ourselves, our suppliers and our partners to work together to drive growth by developing new approaches that have a positive impact on the well-being of our planet . Our Call For Well-being is focused on four areas that are critical to the well-being of the world and where Mondelez International can make the greatest impact : mindful snacking, sustainability, community and safety. This is no small task and one that we cannot do alone. Working with others, we can pave a new path forward and bring innovative ways of addressing well-being to the world . To learn more about our Well-being strategy, including a video from Chairman and CEO Irene Rosenfeld , please visit http://www. mondelezinternational .com /well-being.
Empowering consumers to snack mindfully by 2020 As the world’s largest snack company, we have a critical role to play in empowering consumers to snack mindfully. By offering more “Better Choice” products and portioncontrol options, as well as putting calorie labelling front of pack, we can help people become more mindful about what they’re taking in . We’re taking a comprehensive approach to help consumers through two objectives. 1. Transform our portfolio over time to offer more nutritious products. By 2020, increase “Better Choices” to 25% of our revenue and increase the availability of satisfying, portion-control products by 25%. 2. Improve the nutrition profile of our portfolio by reducing sodium and saturated fats by 10% and increasing whole grains by 25% by 2020.
Securing sustainable agricultural supplies and reducing environmental footprint Our ability to create delicious tasting snacks starts with the community of farmers who grow our ingredients. Working with governments, suppliers, and experts in economic development, community management and more, we are using our reach to give a voice to farmers and their communities. Together, we can create a sustainable supply chain by doing what’s right for the farmer, their communities and for our business. Our work on securing our supply chains has been recognised by leading organisations, such as the Dow Jones Sustainability Index. • We’re helping farmers create thriving communities with a 10-year, $600 million investment in Cocoa Life and Coffee Made Happy. • We’re promoting biodiversity and environmental agricultural practices through Harmony. • We’re reducing our footprint by cutting energy and water use, waste and greenhouse gas emissions from manufacturing by 15 percent by 2015. We also have plans to have 60 percent of our production in zero-waste-to-landfill sites by 2015. We’re also embedding similar practices into other commodities – for example, in 2013 we bought all of our palm oil from the Roundtable for Sustainable Palm Oil (RSPO) – two years ahead of schedule.
Partnering with communities to promote healthy lifestyles We’re empowering communities to answer the Call For Well-being by working with knowledgeable partners on programs that help families adopt healthy habits in small ways - that lead to big changes. We’ve committed $50 million over the next several years to community partnerships across thirteen countries, reaching millions of children and families worldwide.
Keeping our employees and consumers safe Responsible growth depends on ensuring the foods we make are safe to eat and our employees work in a safe environment . We work tirelessly to achieve world-class safety standards for the foods we make and sell , and the environment in which our people work.
14 | Harmony FAQs
Harmony FAQs Is Harmony organic? The Harmony Charter represents a middle ground between conventional and organic agriculture. We allow for some pesticide use – but only as a last resort and with each use requiring justification . The Harmony Charter is improving every year, with a more restrictive list of authorised products, and more proactive actions that support local biodiversity.
What is the proportion of Harmony wheat in your biscuits? Biscuits with packaging that have the Harmony logo always have more than 70% of Harmony wheat flour. In normal climatic conditions (ie. if there are no major climatic incidents), we harvest enough wheat for 100% of the wheat in our biscuits to be cultivated according to the Harmony Charter.
How are you sure the Harmony charter is respected?
Do you pay your farmers extra for becoming part of Harmony?
Farmers receive technical support from their cooperative at every key step of wheat cultivation . Each treatment is recorded on the Crop Sheet and shared with Mondelez International . External audits are organised by an external organisation every year on 10% farmers (all 49 practices of the Harmony charter are checked) and 100% millers (to check traceability).
Yes, we pay farmers a premium for any wheat we buy from them that has been grown in accordance with the 49 practices of the Harmony Charter, including dedicating 3% of their wheat field to flowers attractive to pollinators.
We’ve also seen results – there’s been a 20% reduction in pesticide use in Harmony fields versus the national average in France.
Beyond this premium , farmers partner with Harmony because it values their work, makes them proud of their purpose, and respects their environment .
Do you use palm oil in your biscuits?
I am a wheat farmer. How can I join Harmony?
We use palm oil in some of our biscuits. We’re purchasing RSPO palm oil , covering 100% of our use since 2013 through a combination of RSPO-certified oil and Greenpalm certificates that support sustainable production .
We recommend you speak to your farmer cooperative. We rely on our historic millers to select the right cooperatives, who in turn select farmers who are close to our factories and can deliver the right quality of wheat .
We work to continuously improve the nutritional profile of our biscuits, so whenever possible we replace palm oil with alternatives like sunflower or rapeseed oil , which contain less saturated fat .
Are there GMO in your biscuits? No, we do not use genetically modified ingredients in our European products.
15 | Harmony Story
About Mondelez International
References
Mondelez International , Inc. (NASDAQ: MDLZ) is a global snacking powerhouse, with 2013 revenue of $35 billion . Creating delicious moments of joy in 165 countries, Mondelez International is a world leader in biscuits, chocolate, gum , candy, coffee, and powdered beverages, with billiondollar brands such as Oreo, LU and Nabisco biscuits; Cadbury, Cadbury Dairy Milk and Milka chocolate; Trident gum ; Jacobs coffee and Tang powdered beverages. Mondelez International is a proud member of the Standard and Poor’s 500, NASDAQ 100 and Dow Jones Sustainability Index. Visit www.mondelezinternational .com and www.facebook.com /mondelezinternational .
1: The Food and Agriculture Organisation of the United Nations (FAO) estimates that out of 100 crop species which provide 90% of food worldwide, 71% of these are bee-pollinated .
Developed and designed by:
2: Average Frequency Treatment Index of Harmony campaigns 2009-2012 vs. national average 2008 published by the French Ministry of Agriculture. 3: 2005 economic valuation of the vulnerability of world agriculture confronted with pollinator decline are published in the journal “ECOLOGICAL ECONOMICS”. 4: The foraging intensity of bees is measured according to the Bees Biodiversity Network NGO and Butterflies according to Propage Protocol from Museum National History http://propage.mnhn .fr/ sites/propage.mnhn .fr/files/FicheProtocole.pdf