Global food company Mars Incorporated says it will halve carbon emissions across its entire value chain by 2030 and invest $1 billion over the next three years to accelerate its progress to Net Zero emissions.
On the release of its Roadmap to Net Zero, Mars CEO Poul Weihrauch said, “My generation of CEOs has the ability and responsibility to deliver actual emission reductions and put business on a clear path to Net Zero by 2050. That’s why Mars is committed to delivering a 50 per cent reduction in greenhouse gases (GHG) by 2030.”
“We cannot wait for the economy to improve; we must push forward with investments that protect our business today and in the future.”
The company has an emissions footprint of a country the size of Finland. Reducing its emissions by half equals around 15 million tonnes. It has achieved an eight per cent GHG reduction so far.
“As I have said before, profit and purpose are not enemies. Investment in climate is not a trade-off between planet and productivity, or between environment and employment. Investing in emissions reductions is sound business policy, it is achievable, affordable, and it is absolutely necessary.”
For Mars, only four per cent (1.1Mt CO2e) of its carbon footprint comes directly from operations. The largest sources are agriculture (38 per cent, 11.6Mt CO2e) and land use change (deforestation/conversion to farming, 27 per cent, 8.2Mt CO2e). Retail accounts for 11 per cent, 3.2Mt; Logistics – 10 per cent, 2.9Mt; Packaging – five per cent, 1.5Mt; and other (including emissions from co-manufacturing, customers cooking its products, employees travel and capital assets) – six per cent, 1.8Mt CO2e.
The company estimates that a 50 per cent GHG reduction will cost around one per cent of annual sales.
“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.
“To be a truly successful business, we have to invest in sustainability; and to be a truly sustainable business, we have to be financially successful to make those investments possible,” Weihrauch said.
The Roadmap not only outlines the company’s plan but Mars said it is an open-source strategy document that companies across sectors can implement for meaningful Net Zero action using the Five Fundamental Elements of Net Zero:
- Include all emissions across the value chain;
- Prioritise performance over promises;
- Mark progress with milestones;
- Remember that some decisions today reverberate tomorrow; and
- Cover what you can't cut with high quality carbon removal credits.
Mars said it is accelerating action on:
Transitioning to 100 per cent renewable energy – by changing how it powers its factories, offices, and veterinary hospitals, addressing energy used by farmers, how it sources ingredients, and even the energy used by customers (retailers), consumers, and pet owners at home.
Redesigning its supply chains to stop deforestation – by enhancing transparency and traceability of key ingredients such as cocoa, soy, and beef.
Scaling up initiatives in climate smart agriculture – by working with farmers on regenerative agriculture, optimising sourcing, and switching to renewables.
Optimising recipes – developing new lower GHG-footprint ingredients for snacks and human-food dishes, as well as alternative proteins for pet food.
Improving and optimising logistics – redesigning networks, the type of transport Mars relies on, and the energy sources used, e.g., electrification of vehicles or potential green hydrogen.
Embedding climate action in the business – embedding climate reductions into its governance and business planning, including it as a shareholder objective, in variable remuneration plans of senior executives, investment planning processes, and its merger and acquisition strategy.
For Mars, its Australian operations have been on the front foot of sustainability innovation for some time.
In an Australian first and a world first for the company, Mars Australia Petcare installed a commercial Electric Thermal Energy Storage (eTES) system at its Wodonga factory.
The eTES system, supplied by Graphite Energy, uses low-cost renewable electricity to generate and store heat, which can then be used by the factory to generate 24/7 ‘Green Steam’.
The system cuts the factory’s use of gas by 20 per cent, with a corresponding reduction in emissions. It is the first major commercial application in Australia of an 100 per cent renewable eTES system.
Mars Petcare Australia GM, Craig Sargeant, said, “Mars Australia is proud to be the first Australian company to introduce Graphite Energy’s Green Steam technology in our factory and launch paper-based packaging on our Australian-made chocolate bars.
“These are tangible actions that are reducing emissions and are important steps on our Net Zero journey. They matter to Mars, and we know they matter to Australians, with over 54 per cent saying they expect businesses like us, to make changes that influence climate change.”
Earlier this year, Mars Petcare also announced a $112.6 million investment in its Wodonga plant, creating 60 new jobs and bringing pet food manufacturing onshore.
The site is also developing packaging that is 100 per cent renewable, recyclable, or compostable while decreasing virgin plastic use by 25 per cent. Its water usage has dropped by 31 per cent since 2015, and it has reduced waste by 20 per cent since 2016. The company also has a long-term power purchase agreement with the Kiamal Solar Farm in Victoria.
At Mars Wrigley Australia’s facility in Ballarat, its R&D team developed a recyclable paper-based packaging for Mars Bar, Snickers, and Milky Way chocolate bars. The three-year project and $2.5 million investment, which was developed and tested at the factory in partnership with packaging supplier Amcor – was a pioneering shift for the global group.
Mars Wrigley GM Andrew Leakey said, “I’m proud that we are leading world-class innovation in packaging and sustainability from Australia in what is a world-first for us as a business.
“We are the first Mars Wrigley market in the world to launch a recyclable paper-based packaging at this size and scale, and it speaks volumes to the commitment of our team locally who have been working on this project for almost three years.
The company has invested more than $95 million at Mars Wrigley since 2021, upgrading equipment and materials to showcase innovation across the entire value chain.
For its Australian operations, Mars transitioned all manufacturing facilities and sales offices to be offset by renewable electricity. The switch to solar energy has reduced carbon emissions at manufacturing sites by 75 per cent.
A recent Ipsos survey commissioned by Mars found three quarters of Australians adults (76 per cent) are concerned about climate change, with a third (34 per cent) ‘very concerned’.
More than half of Australian adults (54 per cent) said that large businesses in Australia have a ‘great deal’ of responsibility to make changes that influence climate change, with 59 per cent saying the Australian government also has a ‘great deal’ of responsibility to make changes the influence climate change.
Climate change is expected to be as much of a priority for businesses as economic challenges, with a third of Australian adults (31 per cent) believing that businesses should focus more on climate change, 28 per cent think they should focus more on economic challenges, and a third (34 per cent) think businesses should focus on them equally.
