Confectionery giant Mars to invest $1bn to cut greenhouse gases from its supply chain

Mars Incorporated has made a significant commitment to combat climate change, pledging to reduce its carbon footprint by half - equivalent to approximately 15 million metric tons - by 2030, spanning its entire value chain. This pledge will be upheld even in the face of a challenging global economic environment.

The US-based conglomerate, known for its snacks and pet food products, has unveiled an open-source strategy named the Net Zero Roadmap, aimed at expediting efforts to achieve Net Zero emissions. Termed a 'Shareholder Objective,' Mars will allocate $1 billion in investment over the next three years to drive climate action, encompassing activities from agricultural production to consumption at both human and pet levels.

The Mars Net Zero Roadmap encompasses a new target, scrutinized by the Science Based Targets Initiative, to slash emissions by 50% by 2030, based on a 2015 benchmark, with a clear trajectory towards achieving Net Zero emissions by 2050.

Poul Weihrauch, CEO of Mars, emphasized the urgency of taking action now, even though 2050 may seem distant. He stressed that the progress made in the next seven years is crucial. Weihrauch asserted that the current generation of CEOs holds the power and responsibility to achieve tangible reductions in emissions and set businesses on a definitive course towards Net Zero by 2050. He reaffirmed Mars' commitment to achieving a 50% reduction in greenhouse gas emissions by 2030. Weihrauch emphasized that waiting for economic conditions to improve is not an option, and that investments in sustainability are essential to safeguarding the business in both the present and the future. He reiterated that profit and purpose are not mutually exclusive, and that investing in emissions reduction is not a trade-off between environmental goals and business productivity. Weihrauch believes that it is a sound business strategy that is not only achievable and affordable but also absolutely imperative. Both consumers and associates are in alignment with this dual commitment, and Mars is fully dedicated to meeting these objectives.

The company reached its highest level of emissions in 2018. Since then, it has successfully reduced greenhouse gas emissions by 8%, equivalent to 2.6 million metric tons, compared to the 2015 baseline. Remarkably, this reduction was achieved while the business experienced a remarkable 60% growth. Christiaan Prins, owner of LOOP Communications, commended Mars for its exemplary leadership, setting a high standard for companies in addressing critical societal challenges like climate change. He also noted that to fulfil its ambitious commitment, Mars would greatly benefit from supportive policy measures. This could include initiatives to expand the availability of renewable energy, the implementation of EU deforestation regulations, and the advancement of policies promoting climate-smart agriculture.

'To drive meaningful progress and make a real impact, companies should move away from attempting to single-handedly overhaul supply chains and instead identify areas where they could benefit from public support. For businesses, the emphasis should not solely be on doing more, but rather on doing things differently.'

Sustainable future

As outlined in the action plan, Mars has pledged to invest more than $1 billion over the next three years, with an ongoing commitment to allocate financial resources as necessary until the goal of achieving Net Zero is realized. This investment will target emissions reduction across all facets of the business, spanning from the cultivation of food for both humans and pets on farms to the provision of care for pets in veterinary clinics. Mars is taking immediate and proactive steps towards mitigating GHG emissions, contributing to the creation of a more sustainable and prosperous future for all. The term 'Net Zero' denotes a state in which greenhouse gas emissions are substantially lowered, while any remaining emissions that cannot be eliminated are offset by corresponding removals, as clarified in the statement.

Barry Parkin, Chief Sustainability and Procurement Officer at Mars, emphasized the company's commitment to aligning with scientific recommendations. He stated, 'Mars has always followed science, and science says we must cut our emissions across our full value chain by 50% by 2030.' Parkin highlighted five key principles based on scientific insights that Net Zero roadmaps should incorporate for meaningful impact. This includes the absence of exclusions or exceptions, and the prioritization of actual performance over mere promises. He further noted that through the development of their roadmap, they have discovered that achieving these targets is entirely feasible using existing science and technology, and is also economically viable.

'We have the capacity to expand our business while simultaneously reducing emissions. I trust that our roadmap effectively showcases Mars' actions and, importantly, underscores the need for widespread efforts to combat the most severe consequences of climate change.'

The release of this roadmap follows recent stark warnings from the UN-backed Intergovernmental Panel on Climate Change (IPCC), emphasizing the critical need for immediate and comprehensive action on climate change to avert potential catastrophe.

This comes alongside the publication of a significant Ipsos survey, commissioned by Mars and accessible on its website, which reveals that, despite current economic challenges, an average of 69% of adults across the world's seven largest economies believe that businesses should prioritize addressing climate change to the same extent (32%) or even more (37%) than economic concerns.

The survey, which involved 14,468 respondents in the USA, UK, China, Japan, Germany, France, and India, also highlighted that nearly half of those surveyed in these major economies believe that multinational corporations and governments bear a significant responsibility for instigating changes to combat climate change.

Weihrauch emphasized, 'Companies must be judged – Mars included – on the actual results we deliver against our climate plans, not just the scale of the commitment we make – just as we are judged by our boards and investors on the delivery of financial results, not the quality of our financial forecasts.'