Mondelez International, Inc. | Annual benchmarks for achieving company's 2025 cage-free eggs at Mondelez International, Inc.

Status
8.96% votes in favour
AGM date
Previous AGM date
Proposal number
6
Resolution details
Company ticker
MDLZ
Lead filer
Green Century Capital Management, Inc.
Resolution ask
Set targets or plans
ESG theme
  • Environment
  • Social
ESG sub-theme
  • Animal welfare
Type of vote
Shareholder proposal
Filer type
Shareholder
Company sector
Consumer Staples
Company HQ country
United States
Resolved clause
RESOLVED: Shareholders ask Mondelez to disclose any annual glidepath benchmarks the company may have for achieving its global cage-free egg goal. If the company does not have any such glidepath, shareholders ask it to develop and disclose one. This should be done within three months of the 2023 shareholder meeting, at a reasonable cost, and omitting proprietary information.
Whereas clause
Whereas: Proponents seek updated disclosure from Mondelez regarding one of its longtime environmental, social, governance (ESG) commitments. Corporate accountability for significant policy commitments, particularly those relating to ESG matters, is being subjected to increasing public and stakeholder scrutiny.

Shareholders may recall that in 2022, irregularities in what McDonald’s was publicly reporting (compared to its actions) on one of its animal welfare commitments were thrust into the global spotlight. This controversy was featured in the Wall Street Journal, New York Times, Washington Post, Bloomberg, Financial Times, and more. Two board members were challenged in a proxy contest by Carl Icahn, and when Institutional Shareholder Services (ISS) evaluated the issue, it concluded that only “cautionary support” was warranted for the two existing directors, pointing out that it, “serves as a reminder to shareholders to demand greater specificity from corporate leaders seeking to address ESG concerns[.]”

It is precisely that “greater specificity” which this proposal calls for. Mondelez has touted to shareholders a commitment regarding animal welfare in its supply chain: that it will switch to 100 percent cage-free eggs worldwide by 2025. Mondelez reports that between 2018 and 2021, it increased sourcing from 15 to 39 percent cage-free eggs — representing an increase of 24 percent over those four years. With the company’s 2025 deadline two years away, shareholders are concerned about whether Mondelez will actually reach its goal.

Meanwhile, other consumer packaged goods companies with similar commitments have disclosed annual glidepath benchmarks indicating how they plan to reach their cage-free egg goals. For example:
• General Mills discloses that, “by the end of 2022, 75 — 80 percent of the eggs we purchase for our operations globally will come from cage-free chickens, 80 — 85 percent by the end of 2023, 85 — 90 percent by the end of 2024 and 100 percent by the end of 2025.”
• And Conagra Brands has “plans to convert approximately....45 — 50 percent to cage-free by the end of 2022; approximately 60 to 70 percent to cage-free by the end 2023; and directly source 100 percent cage-free eggs by the end 2024.” Target, Cracker Barrel, Royal Caribbean Cruise Lines, Norwegian Cruise Lines, Carnival Corporation, Jack in the Box, Denny’s, Dine Brands, Bloomin’ Brands and other companies have all disclosed similar cage-free egg glidepaths to their shareholders. However, Mondelez has not.

How other organisations have declared their voting intentions

Organisation name Declared voting intentions Rationale
Rothschild & co Asset Management For

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