Receive free Mars Inc updates
We’ll send you a myFT Daily Digest email rounding up the latest Mars Inc news every morning.
Mars has committed to investing $1 billion in the next three years to achieve net zero emissions by 2050, following a failure to meet its previous emissions reduction target.
The US snack and pet food company, known for its carbon footprint equivalent to Finland, now aims to halve its emissions by 2030, aligning itself with competitors Nestlé and Danone.
Mars had previously aimed to reduce emissions by 27% by 2025, but has only achieved an 8% reduction to date.
During this period, the company experienced 60% growth. Mars reported annual revenues increasing from $28 billion to $45 billion under its previous CEO Grant Reid, largely due to acquisitions such as the $9.1 billion purchase of pet hospitals group VCA in 2017.
“The financial and greenhouse gas performance are equally important,” said Barry Parkin, Mars’s chief sustainability and procurement officer. “It’s the performance that holds us all accountable.”
For the past year, 20% of the company’s senior executive long-term incentive plan has been tied to reducing greenhouse gas emissions.
The otherwise publicity-shy company has been more vocal about its emission reduction efforts. CEO Poul Weihrauch previously stated that companies backing away from environmental commitments risk alienating young talent.
The $1 billion investment will focus on transitioning to 100% renewable energy, improving supply chain traceability, scaling up climate smart agriculture, adjusting recipes, and enhancing logistics.
Mars anticipates approximately 80% of its emissions can be reduced within its own operations, while the remaining 20% will be offset through the carbon credit market.
Parkin assured that the company will only use “reduction credits from very high-quality projects,” addressing concerns over the effectiveness of carbon offset projects.
One of the biggest challenges for Mars, like other food manufacturers, is reducing Scope 3 emissions, which account for a significant portion of their total footprint.
Parkin stated that Mars factories and veterinary clinics make up just 4% of the company’s emissions, with over 80% embedded in the goods and services it purchases.
“Significant amounts of this are related to raw materials and agriculture… We need to change what and how we buy,” Parkin explained, noting that Mars sources raw materials from 100 countries worldwide.
The new emissions reduction target has been reviewed and approved by the Science Based Targets initiative, an authority in corporate climate targets that recently revamped its structure to address concerns of potential conflicts of interest.
Denial of responsibility! Vigour Times is an automatic aggregator of Global media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, and all materials to their authors. For any complaint, please reach us at – [email protected]. We will take necessary action within 24 hours.
