Inside Mars' $250m Investment in Sustainable Supply Chains

Mars is pumping US$250m into its goal to reduce supply chain emissions, announced alongside the Mars Sustainable in a Generation report. 

The Mars Sustainability Investment Fund represents a further step on the organisation's journey to net zero, outlining plans for change in its supply chain, from raw ingredients and agriculture to packaging.

Through the fund, Mars hopes to help farmers improve their efficiency and cut down on waste, sourcing ingredients in a more sustainable manner.

Supply chains under pressure

Mars reports that more than 70% of its total greenhouse gas emissions stem from what it purchases – mainly agricultural goods and services. This includes farming inputs such as fertiliser and animal feed, as well as the processes involved in sourcing ingredients and producing packaging.

Its Sustainability Investment Fund will back tools and technologies designed to slice such emissions, and has been introduced in tandem with the company's Sustainable in a Generation report, which outlines how Mars plans to reach net zero.

Alastair Child, Chief Sustainability Officer at Mars, is leading the charge: "It is imperative that we continue to perform on our promises and, in doing so, prove that sustainability is good for business."

Mars’ strategy includes investment in digital platforms for farmers that allow tracking of farming practices and optimise resource use, thus improving yields while reducing carbon output.

The fund will also be directed towards monitoring tools like satellite data and remote sensing technology. These help detect deforestation and changes in land use, which are critical in managing the environmental impact of Mars’ global sourcing.

In parallel, the company wants to explore ways of sourcing raw ingredients from lower-emission regions or by switching to materials that carry less environmental weight.

It's an approach reflects a shift in how Mars manages its ingredient procurement, making emission intensity a core metric.

Tackling the packaging challenge

Mars is also using the fund to invest in low-carbon alternatives for packaging and ingredients.

Packaging – particularly flexible plastics – remains a hard-to-solve issue for manufacturers. They are lightweight and low-cost but difficult to recycle in standard facilities.

Mars claims more than 60% of its consumer-facing packaging is now recyclable, reusable or compostable. This progress is mainly due to replacing some plastic types with paper and cardboard and removing materials that are not compatible with recycling systems.

Developing alternatives to animal-based ingredients is another area of focus. The fund supports plant-based proteins that can be sourced locally and processed using methods that emit less carbon, meaning changes are not only cutting emissions but also tie into wider nutritional goals within the business.

Marc Carena, Regional President of Mars Wrigley Europe, says the company’s approach is deliberate.

"Sustainability at Mars is part of our strategy and an intentional focus in our execution," he says.

"I’ve met many associates who are deeply passionate about sustainability, and it is precisely this commitment to doing good while doing well that has helped us reduce emissions by 16.4% against a 2015 baseline, while growing the global Mars, Incorporated business 69% in the same period."

Meeting realistic targets

Although Mars continues to make headway, it has pushed its target to make all packaging recyclable, reusable or compostable to 2030. The company says this extension reflects the reality of infrastructure constraints in recycling systems globally.

Alastair believes making real and lasting progress across supply chains requires more than internal investment.

"We’re firmly committed not just to targets in a distant future but to delivering progress now. In order to do this, societal impact goals have to be built into business decision making," he says. "To continue to deliver progress consistently, we need systemic change across our supply chains, with governments, industry and farmers all playing a role.

"We know we can’t do this alone and so we want to bring our partners and peers along, as only large-scale change will deliver on our collective goals."

With sustainability initiatives being implemented throughout the supply chain, from agriculture to packaging, Mars stands well placed to deliver a significant reduction in GHG emissions.