Mars Pledges Fresh Climate Action to Achieve Net Zero Emissions Across Full Value Chain
PR92119
MCLEAN, Va., Oct. 5, 2021 /PRNewswire=KYODO JBN/ --
-- The company sets new science-based climate target to achieve net zero
greenhouse gas (GHG) emissions across its full value chain by 2050,
including all scope 3 emissions (as defined by SBTi) such as those created
by agriculture and suppliers, through to emissions from consumers using
its iconic household brands such as Ben's Originals, M&M's & Royal Canin.
-- The new pledge accelerates the existing long-term goals Mars set reducing
absolute emissions from its entire business footprint, eliminating
deforestation from its supply chain, and transitioning to 100% renewable
energy. Executive pay will be strongly linked to climate action and the
20,000+ suppliers in the Mars value chain are being challenged to step up
and set their own commitments.
-- Mars CEO Grant F. Reid says net zero ambitions can only be "fit for
purpose" by covering the entire GHG footprint - warns industry that long
term targets must not be an excuse for "inaction and delay."
-- It comes as the company's largest brand, Royal Canin, commits to become
certified carbon neutral by 2025, embarking on a major new initiative to
reduce greenhouse gas emissions and take immediate climate protection
action.
Mars, Incorporated today announced its commitment to achieve net zero
greenhouse gas (GHG) emissions across its full value chain by 2050, aligning
with the most ambitious aim of the Paris Agreement to limit global temperature
rises to 1.5 degrees C.
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This stepped-up commitment follows findings in the July Intergovernmental Panel
on Climate Change (IPCC) report which reinforced the urgency of achieving net
zero globally to prevent the worst impacts of global warming - a critical focus
of next month's COP26 Climate Conference in Glasgow. Mars is joining the
Science Based Targets Initiative's "Business Ambition for 1.5C pledge" (
) and the Race to Zero, as the company accelerates its work to achieve net zero
emissions by focusing on:
-- Absolute emissions reductions across its entire GHG footprint including
all scope 3 emissions such as indirect emissions (e.g., business travel,
retail customer emissions, use of sold products, and product end-of-life)
and setting 5-year milestones to drive action and track progress
-- Eliminating deforestation in its supply chain - particularly in key raw
materials that have the greatest impact on emissions
-- Linking executive pay to delivering GHG value chain emission reductions
-- Challenging 20,000+ suppliers in the Mars value chain to take climate
action and to set meaningful targets
Mars Chief Executive Officer Grant F. Reid said: "The scale of global
intervention must be bolder and faster. Climate change is already impacting the
planet and people's lives.
"To mitigate this real and tangible threat, the science tells us net zero
targets must be broad in their reach, capturing emissions across the entire
value chain and plans need to have material, interim targets. We can't wait
decades to see progress.
"However, all too often, this simply isn't the case - and the gaps that exist
in some net zero commitments risks undermining their credibility, and even more
importantly, the climate action movement. We can't allow that to happen.
"To deliver meaningful impact and ensure it is fit for purpose, our net zero
target covers our entire GHG footprint, from how we source materials through to
how consumers use our products and, we're mobilizing our entire business around
taking action now and hitting interim targets every five years.
"This is going to be a significant challenge, and it we won't be able to
achieve net zero without the collaboration of our associates, suppliers,
customers, consumers and industry partners. It's so important that we work
together to drive scale and reach.
"We need to overhaul the supply chains which power global business and put an
end to deforestation and the conversion of natural ecosystems to drive
meaningful change now.
We can't use long-term ambitions as an excuse for inaction and delay."
Mars has been driving climate action on emissions for more than a decade with
an existing commitment - set in 2009 - to achieve net zero in direct operations
by 2040.
Today's announcement builds on the company's existing Sustainable in a
Generation Plan (
), advancing its previous pledge to cut emissions in its full value chain by
67% by 2050 and reaffirming an ambitious near-term target to cut GHGs in its
full value chain by 27% by 2025.
Since 2015, Mars has cut emissions in its full value chain by 7.3% despite the
business continuing to grow. In its direct operations, Mars has already reduced
emissions 31% and is on-track to achieve is interim 2025 target (42%
reduction).
The company's largest brand, Royal Canin, is a global leader in supporting pet
health through nutrition. Royal Canin will pursue carbon neutrality for its
full portfolio in 2025, with its first product range aiming to be certified
carbon neutral in 2022. This will be achieved through: projects financed by an
internal price on carbon, a science-based methodology to calculate each
product's carbon footprint, adhering to the PAS 2060 standard for carbon
neutrality, a mutual approach with value chain partners to minimize GHG
emissions and by supporting high-quality carbon credit initiatives for
remaining emissions.
Reid added: "Our brands play a crucial role in driving progress and especially
in connecting this issue with consumers. I'm pleased that we can make this
commitment to a more sustainable future for people, pets and the planet."
Delivering net zero
A full net zero roadmap will be developed and published in 2022 to align with
the anticipated Science-Based Target Initiative rules on net zero commitments,
expected by the end of 2021.
To achieve net zero, some of the numerous initiatives active across Mars
include:
-- Transitioning to 100% renewable energy. Mars has already made strong
progress towards its commitment to reach zero GHG emissions in its direct
operations by 2040 (including factories, offices, and veterinary
practices). It now sources 100% renewable electricity for the entirety of
its direct operations in 11 countries, accounting for more than 54% of its
global electricity needs, with plans to make the switch in another 8
countries by 2025. This includes accounting for the growth of the business
- such as in the U.S. where Mars recently announced a new power purchase
agreement with the Ford Ridge Wind Farm (
)
in Illinois, which will not only cover the recent growth of the Mars
Veterinary Health business in the U.S., but also includes two of its U.S.
suppliers.
-- Urgently redesigning its supply chains to stop deforestation. Mars is
redesigning its supply chains to help stop deforestation and conversion of
natural ecosystems in five key raw materials identified as having the
greatest risk: cocoa, beef, palm oil, pulp and paper and soy. Action will
include a continued shift away from purchasing ingredients based on cost
alone - and will focus on enhanced transparency and traceability around
the commodities it sources. Mars recently delivered a deforestation-free
palm oil supply chain (
),
reducing the number of palm mills from 1,500 to less than 90 mills this
year to enable the implementation of strict standards and satellite
monitoring. Additionally, it has a goal for all its high-forest risk
commodities (beef, palm oil, pulp and paper, and soy) and cocoa to be
deforestation-free by 2025.
-- Scaling up initiatives in sustainable and regenerative agriculture. Mars
will strengthen its programs with farmers to limit GHG emissions and move
towards regenerative agriculture. This includes working with farmers and
suppliers to promote improved agricultural practices, to promote
sustainable land use and to support science and technology, such as
genomics research, that pinpoints how to produce more resilient and higher
yielding crops. Mars will also take further action to improve soil health
to unlock crop yield potential and provide other environmental and climate
change benefits. Projects underway include the Cool Soil Initiative (
),
which is supporting resilience in wheat production in Australia, the
Sustainable Dairy Partnership, which is scaling up collaboration between
dairy suppliers and buyers around the globe, and Oryzonte, a program to
improve rice agriculture in Spain, reducing both water use and methane
emissions.
-- Challenging its 20,000 suppliers to take climate action. Mars is
prioritizing collaboration and partnership with suppliers to drive change
through the full value chain. This includes its Pledge for Planet program
and the recently announced Supplier Leadership on Climate Transition
(S-LoCT) (
)
which aims to encourage suppliers to calculate their own GHG footprints
and to set their own science-based targets. The program provides training
and capability building with the ambition to sign up other brands to join
and scale the project throughout the supply chain.
Barry Parkin, Mars Chief Sustainability and Procurement Officer, said
mobilizing action in the extended supply chain would be critical to delivering
emissions reductions in the coming years.
He said: "More than three quarters of our impacts are embedded in the materials
that we purchase - so we must change what we buy or where we buy it or, perhaps
more importantly, how we buy it.
"It is also clear that further transformation of agriculture is needed. We will
push the boundaries of what is possible through regenerative agriculture, and
this will require an acceleration of our work, along with deeper and more
integrated partnerships with our suppliers, and stronger government frameworks
that incentivize sustainable practices."
Mars is also committed to ensuring that any residual emissions the business
cannot get to zero are neutralized with real, durable, and socially beneficial
carbon credits based on removing carbon from the atmosphere, aligned with the
SBTi Net Zero Foundations paper. This will include identifying and investing in
projects that are focused on the highest ecological, social and carbon impact,
such as its recent investment in the EUR 150m Livelihoods Carbon Fund 3, along
with 13 other investors and companies.
Parkin added: "Our roadmap to net zero clearly prioritizes reducing our own
emissions but there is a recognition within the science community that the
agricultural sector will be particularly hard to completely decarbonize.
Therefore, carbon removal credits will have to play a part in helping us to
neutralize any remaining emissions. In doing this, we will apply a high level
of rigor so that any credits we buy are removing carbon from the atmosphere and
that is tracked with strong science and monitoring."
Limiting global warming to 1.5C will also require transformational change
across industry, government, and wider society. Mars will continue its advocacy
for policies to help deliver against the ambitions of the Paris Agreement. For
example, Mars will advocate for a simple, clear, and transparent price on
carbon. This could make the business case even more compelling and drive a
greater number of companies to take more decisive action to reduce emissions.
For further information on the Mars Sustainable in a Generation Plan and
climate commitments, visit www.mars.com/sustainability-plan.
ABOUT MARS, INCORPORATED
For more than a century, Mars, Incorporated has been driven by the belief that
the world we want tomorrow starts with how we do business today. This idea is
at the center of who we have always been as a global, family-owned business.
Today, Mars is transforming, innovating and evolving in ways that affirm our
commitment to making a positive impact on the world around us.
Across our diverse and expanding portfolio of confectionery, food, and pet care
products and services, we employ 133,000 dedicated Associates who are all
moving in the same direction: forward. With $40 billion in annual sales, we
produce some of the world's best-loved brands including DOVE(R), EXTRA(R),
M&M's(R), MILKY WAY(R), SNICKERS(R), TWIX(R), ORBIT(R), PEDIGREE(R), ROYAL
CANIN(R), SKITTLES(R), BEN'S ORIGINAL(TM), WHISKAS(R), COCOAVIA(R), and 5(TM);
and take care of half of the world's pets through our nutrition, health and
services businesses, including AniCura, Banfield Pet Hospitals(TM),
BluePearl(R), Linnaeus, and VCA(TM).
We know we can only be truly successful if our partners and the communities in
which we operate prosper as well. The Mars Five Principles - Quality,
Responsibility, Mutuality, Efficiency and Freedom - inspire our Associates to
take action every day to help create a world tomorrow in which the planet, its
people and pets can thrive.
For more information about Mars, please visit www.mars.com. Join us on Facebook
(
), Twitter (
), LinkedIn (
), Instagram (
) and YouTube (
).
SOURCE: Mars, Incorporated
CONTACT: Dan Strechay, +1 914 733 6579, dan.strechay@effem.com
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