Swedish Investor AP7 to Back Study on Mondelez Russia Business

Original Author: Jessica DiNapoli
Publication: Reuters
Published Date: 15/05/2024

At least one Mondelez investor, Swedish pension fund AP7, will back a resolution calling for the Oreo cookie maker to conduct an independent study of the risks of continuing to do business in Russia, which faces a vote at the company’s annual meeting this month.

The resolution requests that the study assess whether the company should take steps to reduce the risks of doing business in Russia and other conflict-affected areas. Such risks include a Russian order that requires companies to facilitate the conscription of staff and consumer backlash, the resolution states.

In a statement, Mondelez said its human rights standards, policies and disclosures to shareholders make an additional report unnecessary. The company also said it has ways for employees to submit grievances and conducted a third-party risk assessment on human rights in its value chain last year. The company’s board recommends shareholders vote against it.

Wespath, a pension fund for the United Methodist Church, had discussed the Russia business with the company, said Jake Barnett, a managing director for sustainable investment strategies at the firm, in an email.

“These engagements did not leave us with confidence that the company is adequately disclosing how they are addressing the various risks,” Barnett said.