Mars' Supply Chain Strategy Cuts Emissions and Boosts Growth

One third of all global greenhouse gas emissions are related to the global food industry, according to the World Economic Forum.

The latest insights into Mars' supply chain operations offer a glimpse of how the company is tackling these issues head-on for both climate and economic gains.

The Sustainable in a Generation Report reveals that, by the end of 2024, Mars – one of the world's largest confectionary firms – had reduced emissions by 16.4%, while simultaneously increasing its revenue by US$55bn. This dual achievement underscores the strategic alignment of operational goals with sustainability milestones.

Alastair Child, Mars’ Chief Sustainability Officer, stated: “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. And 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.” 

Supply chain redesign and emission reduction

Mars has adopted various strategies to achieve these impressive results.

The company's efforts include redesigning supply chains to mitigate deforestation impacts, scaling climate-smart agricultural practices, fine-tuning product recipes, enhancing logistics and embedding climate-conscious actions throughout its operations.

Significantly, Mars has tied 20% of its executives' remuneration to the attainment of sustainability objectives. This incentivises leadership to align ecological goals with financial achievements.

The company's transformative interventions in its supply chain are considerable:

• Sourcing 58% of its energy needs from renewable electricity sources, with an ambitious target to shift to 100% by 2024.
• Ensuring that 64% of its consumer packaging is recyclable or compostable.
• Launching "Moo'ving Dairy Forward," a sustainable dairy plan committing US$47m over three years with a goal to cut greenhouse gas emissions within the dairy supply chain.

Amanda Davies, Chief R&D, Procurement and Sustainability Officer at Mars Wrigley, highlights the role of partnerships in these efforts: “I’m super proud of the progress we’re making and, importantly, of the critical role partnerships continue to play in helping us contribute to a healthier planet and thriving communities.

"We know there’s more to be done and we know we can't do it alone. Here’s to continuing this important work together.

"This year's report features our continued efforts to decouple growth from emissions. In Mars Snacking, we're bringing that to life through programmes like Moo'ving Dairy Forward investing millions of dollars with our partners.”

Addressing agricultural emissions

Despite these successes, challenges remain – notably agricultural emissions.

Mars is transitioning to climate-smart practices and supports some 60 projects that embrace these methods. In the report, the company reflects on water usage, acknowledging that “our full value chain goal to halve our gap to sustainable water usage levels by 2025 is ambitious, we continue to anticipate that we will fall short of the 50% target we have been aiming for.”

Nevertheless, Mars recorded a 36% reduction in the gap to sustainable water use since 2015, signifying notable progress.

The report reveals Mars' active development of water stewardship programs targeting high-impact locations and high-stress water areas. Although challenges persist, this focused approach is yielding distinct improvements.

Impact on communities

The company also prioritises community livelihoods, illustrated by its Livelihoods Ecosystem Advancement Program (LEAP). One target of LEAP is to ensure that at least 30% of participating farmers reach a living income by 2027.

Meanwhile, the Sustainable Aromatic Rice Initiative (SARI) supports dual goals: enhancing farmer incomes and minimising environmental impact. This initiative has helped 1,445 Thai farmers boost rice production by 10-43%, with reduced water usage by 41-56%.

Beyond its supply chain, Mars delivered 3.5 billion healthy meals in 2024, with a 5% reduction in sodium, probing the symbiosis of health and sustainability for the food industry.

CEO Poul Weihrauch emphasises the interconnectedness of business and sustainability: “Business makes much possible. It is an essential part of our communities and countries. It is the lifeblood of our economies and societies.

I’m proud to lead an evergrowing and changing Mars, Incorporated. Leadership is about delivering powerful results for people, pets and the planet while harnessing the power of business as a force for good. Mars is committed to sustainable, generational growth.

"We take this responsibility seriously and we believe we don’t have to sacrifice performance to operate sustainably. In our new 2024 Sustainable in a Generation Report, we demonstrate how this is both true and makes good business sense.

"The power of the efforts listed in this report remains in our relentless focus on making progress through tangible actions. A lot of it is down to the varied and inspiring achievements of our incredible 150,000 Associates, who in collaboration with our suppliers, customers and partners are making a positive difference every day.”