Mars: Building Renewable Supply Chains with Enel's Energy

Mars is making steps with its Renewable Acceleration programme, having teamed up with energy partner Enel.

The manufacturing company is dedicated to implementing sustainable practices, considering everything from building partnerships with NGOs to responsible sourcing of raw materials. 

Since introducing its Generation Plan in 2017, it has been actively working to ensure it is a positive force for the world.

Supply chain decarbonisation

The multinational manufacturer is most known for its confectionery and pet food, but it's also been known for its integration of sustainable practices.

Mars has taken a major step towards its decarbonisation journey by joining forces with energy partner Enel.

Under its new programme, Renewable Acceleration, the company is aiming to speed up its clean energy movement.

“Many large companies are well on their way to sourcing renewable electricity for their own operations, but that’s just a part of the picture,” Kevin Rabinovitch, Global VP Sustainability at Mars says.

“For Mars, Renewable Acceleration is a performance accelerator, cutting emissions at a scale and speed we could never achieve through traditional value chain engagement approaches. It lets us bring demand for all the electricity used in our value chain to the clean energy market in a highly efficient manner."

The switch from fossil fuels to clean energy will take place across Mars' entire value chain by turning towards the renewables market for its entire electricity usage.

Suppliers will be switching to renewable energy and trucks transporting both ingredients and finished products will be EVs.

"[The partnership with Enel] means sourcing renewable electricity to cover everything from the farms that grow our ingredients to the trucks that deliver products, and even the energy used by consumers at home to enjoy their favorite Mars products, like Ben’s Original and SNICKERS Ice Cream, or at their BANFIELD veterinarian’s office," says Alastair Child, Chief Sustainability Officer at Mars. 

"By implementing this strategy, we could cut around 3 million tons of carbon emissions from the Mars full value chain amounting to an estimated 10% of our current total footprint. This is a huge unlock for decarbonisation and we’re just getting started." 

Renewable electricity is the go-to decarbonisation strategy, as it is low cost and widely accepted by the general public and businesses alike. 

Direct operations (those purely under the Mars name) throughout the business globally use approximately 2 terawatt-hours (TWh) of electricity each year, but when considering the whole Mars value chain (suppliers, customers and consumers), this number quadruples to 8-9TWh.

The Renewables Acceleration programme considers the entire Mars value chain, so this will significantly reduce emissions.

Developing sustainable value chains

The first contract within the programme is between Mars and Enel North America, an energy provider which is part of the Enel Group.

The company is committed to shaping a better future through sustainable power, reducing environmental impact with clean and innovative energy solutions.

This partnership marks their biggest-ever global power purchase agreement (PPA) with a commercial and industrial customer. It is also Mars' largest contract. 

“Renewable Acceleration is a bold initiative to support the buildout of more clean energy capacity, which we know is among the fastest and most economical ways to decarbonise,” adds Michele Di Murro, CEO of Enel North America.

“Mars is raising the bar for corporate sustainability strategies, taking a comprehensive and direct approach to addressing emissions across its entire value chain. Enel is proud to partner with Mars in launching this new program.”

Mars is also developing further renewable energy contracts with other global companies to support its suppliers in the decarbonisation journey. 

Through its diversified renewable energy partnerships, Mars is demonstrating its dedication to building strong, impactful chains.

It is building energy resilience for itself and its suppliers by forming global relationships rather than relying on one provider.

By having multiple suppliers, it will also be able to generate a larger amount of sustainable energy, making it able to hit its decarbonisation goals faster.

In the first three contracts with Enel, Mars is set to generate a combined total of 1.8TWh every year, which means it will avoid approximately 700ktCO₂e annually. 

Each additional contract is predicted to create a 10% reduction of Mars' total carbon footprint by 2030. 

Through these contracts, it is transforming its supply chain for the better and may even encourage other manufacturers to do the same.