The American Mondelez, which promised to reduce business in Russia in 2022, likely changed its plans, prompting shareholders to call for increased transparency of the company’s decisions. This was reported by Bloomberg.
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In 2024, Mondelez, owner of the brands Oreo, Alpen Gold, Milka and others, removed from the statement submitted to the United States Securities and Exchange Commission (SEC), the formulation of the intention to make Russian production be autonomous, the agency writes. The company also removed two documents from its site, which outlined plans to reduce activities in Russia.
Bloomberg noted that the cause of these steps remains unclear, but the company’s shareholders are not happy with the lack of transparency in its decisions. In 2025, shareholders will likely require more detailed information from Mondelez, Johan Floren, chief ESG specialist (environmental, social and corporate governance) and communications from the Swedish Pension Fund AP7, which is a Mondelez investor.
The removal of wording related to Russia’s departure may indicate that Mondelez is backing off from its previous promises to reduce presence in the country, Bloomberg writes. Although in the third quarter of 2024, Russia accounted for only 2.9% of the company’s consolidated pure revenue, a year earlier this share was 2.7%, and the profitability of Russian businesses remains “higher than historical levels “, follows from Mondelez’s latest quarterly report.
The company representative told the agency that Mondelez “strives for transparency and interacts with a wide circle of stakeholders in business and activities.” “As the situation develops, we continue to optimize external communications, relying on our annual report on sustainable development as a key milestone for our policy,” he added.
Mondelez’s 2023 report does not mention the activities of its Russian business during a military operation in Ukraine. The report on sustainable development for 2024 will be published in spring 2025, the company representative added.
Author:
Bogdan Muzychenko
Source: RB

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