Originally published: March 1, 2024

In his FT interview, Mondelez chief executive Dirk Van de Put stated that investors do not “morally care” if the company continues to do business in Russia. He’s wrong (“Mondelez: Chief defends decision to stay in Russia”, Interview, February 23).

As one of the world’s largest faith-based asset owners, Wespath is among a broad group of investors recognizing the need for companies to address financial risks resulting from human rights concerns. These are outlined in widely accepted international frameworks, such as the UN Guiding Principles on Business and Human Rights. These call on companies and investors to scrutinize operations in conflict-affected and high-risk areas (CAHRA) where the tragedy of conflict and human suffering can quickly translate into material risks for businesses and their investors.

Faith-based asset owners have deep moral concerns about conflict anywhere. Wespath’s values call on us to “do justice, and to care for the vulnerable”. This deeply held belief is heightened in conflict areas, where innocent civilians suffer inordinately. Van de Put’s casual statement that investors don’t “morally care” about companies conducting business in Russia is tin-eared and false.

In November 2023, Wespath concluded that Mondelez did not have sufficient disclosure of its human rights policy in CAHRA. We requested a meeting with the company to discuss our concerns. Mondelez summarily rejected our request. We then filed a shareholder resolution asking the board to commission a report assessing the company’s implementation of its human rights policy, with a focus on its operations in Russia and Ukraine.

The material risks of Mondelez’s operations in Russia include seizure of assets, conscription of employees, boycotts stemming from being labelled an “international sponsor of war” by the Ukrainian government, and US government sanctions. These risks are only reinforced by the business advisory released by the US government last week, which warns companies operating in Russia of “serious legal, financial, and reputational risks”.

If Mondelez is committed to “snacking made right” — the lens through which it views “ESG and a framework for its sustainability and wellbeing agendas” — it must demonstrate an understanding of the material risks of operations in Russia.

If Van de Put requires evidence that investors care about these matters, he need only look at his company’s upcoming proxy statement.

Andrew Q Hendren
General Secretary and Chief Executive Officer
Wespath Benefits and Investments
Glenview, IL, US