In 2017, Mondelēz International engaged 3Degrees for assistance meeting an ambitious goal: reducing its absolute greenhouse gas emissions vs. a historic base year in each of its four global operating regions. The company thinks of emissions reductions in a virtuous cycle, progressing through usage reduction, on-site consumption from low and zero carbon sources, cost effective solutions that don’t require a change in the supply chain and, finally, off-site renewable solutions to help close any remaining gap. Mondelēz International had been making steady progress through energy efficiency and other on-site solutions, but needed additional reductions to achieve its goals. 3Degrees was hired for a three-year engagement to establish a strategy to achieve the company’s goals across all regions and to support the regional teams’ resulting implementation.
Challenges
We knew that Mondelēz International’s needs were complex, but we were up to the task and readily accepted the challenge. The company’s ambitious requirements included: the reductions needed to be in place for calendar year 2020 reporting; each region must meet the goal independently; each implementation solution must have a cost-neutral or cost-saving economic profile; and no unbundled instruments such as RECs or GOs could be used.
How we helped
3Degrees began the engagement by identifying emissions hotspots across Mondelēz International’s global operations, then assessed specific countries where it could get the “best bang for their carbon buck”. For example, we looked for opportunities where one solution could address multiple issues, thus optimizing the company’s resources. We honed in on four areas that looked to be the most promising in meeting Mondelēz International’s goals:
- On-site solar
- Green retail (in deregulated markets)
- Combined heat and power solutions (CHP)
- Off-site renewable solutions
For each one of these prospective solutions, 3Degrees conducted a comprehensive analysis that was specific to each region and its target reduction goals. The analysis also included an assessment of specific facilities in the region whose emissions profiles were sufficiently large to allow for a meaningful contribution to the goal should a reduction solution be pursued. We then mapped solutions to each facility, taking into account regional policy environments, resource availability, vendor landscape, project economics, and other factors.
“This was an ambitious assignment because Mondelēz International’s needs were complex and global in nature. But we were up to the challenge and feel very positive about the global strategy road map we were able to deliver and the significant emissions reductions that will come as a result.”
– ERIN CRAIG, VP ENERGY AND CLIMATE PRACTICE, 3DEGREES
Results
3Degrees delivered a global strategy roadmap that will enable Mondelēz International to meet its emissions reduction goals in all four regions by the company’s 2020 target, with solutions that are cost-neutral or better. In some regions, multiple implementation options are available and the company’s regional teams are engaged in final alignment discussions; in other regions, implementation work has already begun. 3Degrees is supporting these implementations, as well as needed changes in Mondelēz International’s greenhouse gas accounting practices to correctly quantify the resulting reductions.
Read about Mondelēz International’s new VPPA
