Mondelēz invests in compostable packaging, regenerative agriculture

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Dive Brief:

• Oreo maker Mondelēz International announced investments in companies working on scaling compostable packaging and regenerative agriculture through its sustainability-focused venture arm.
• Mondelēz's Sustainable Futures Impact Investment platform said the capital “further advance[s] scalable, high-impact solutions at the nexus of climate, community, and circularity.”
• The companies receiving investment include Pack2Earth, which looks to replace plastic packaging with bio-based materials; eAgronom, an agricultural technology company that helps farmers transition to more sustainable practices; and Ziro, a fintech startup providing small merchants with inventory financing.

Dive Insight:

Mondelēz's investments in sustainability and innovation come as several of its food competitors rethink those commitments amid declining sales and shifting government policy.

General Mills, for example, shut down its venture arm in March as it adjusts “how we pursue new growth initiatives.” PepsiCo, meanwhile, reduced the scope of some of its climate goals last month as it looks to become more “pragmatic” around making the most impact while still preserving profits.

Mondelēz also changed some of its sustainability and innovation commitments, including a shift in how it makes investments through its SnackFutures venture arm. It also joined other food giants in exiting the U.S. Plastics Pact, an initiative that seeks to unite large companies in a pledge to advance packaging sustainability.

The Clif Bar and belVita biscuit owner reported a 12% reduction in emissions last year compared to 2018, according to its latest sustainability report. While it made progress on many of its goals around ingredient sourcing and manufacturing emissions, the company acknowledged headwinds in its ability to reduce the use of virgin plastic.

“While we believe we have a strong pipeline of projects for 2025, we anticipate facing challenges in sourcing new materials and overcoming technical challenges to qualify and implement new solutions,” the report said.