You Want Lower Emissions? Try Attaching It To Pay, Says Mars Sustainability Chief – CoffeeTalk
Mars, one of the largest privately held firms in the U.S., has made its sustainability goals as important to its executives as its financial goals. The company revealed in its sustainability report that it had reduced its carbon footprint by 8% in 2023, a significant achievement compared to most businesses seeing only increases in emissions numbers. The company has also reduced its total emissions by 16%, or 5.7 million metric tons, in that time while growing the business 60% to more than $50 billion annually.
Mars has worked closely with its suppliers to lower their emissions, which are what Mars reports as its Scope 3 emissions. The company estimates that 96% of its total carbon footprint in 2023, or around 29 million metric tons, came from its indirect operations, including suppliers, 65% of which were related to agriculture and changing land use. Mars has made strong progress on GHG reduction, delivering an 8% reduction last year, and is now at minus 16% against a 2015 baseline.
To get to net zero, Mars must completely redesign and reimagine its supply chains. With a big supply chain and over a million farmers in over a hundred countries around the world, this is an all-in effort across the whole organization. Mars has made its sustainability goals as important as its financial goals, with 20% of its overall executive remuneration attached to sustainability goals. This move has made senior executives more aware of the importance of reducing greenhouse gas emissions and investing more than a billion dollars over the next few years on climate and overall sustainability.
In conclusion, Mars has made its sustainability goals as important to its executives as its financial goals, and they have made it as important as their financial goals.
Mars Inc., a leading pet-food company, is committed to transforming its supply chains and greenhouse gas footprint by focusing on net zero goals. The company’s Chief Sustainability Officer and Chief Procurement Officer emphasize the importance of aligning suppliers with these goals and holding them accountable for their performance.
Mars has a detailed roadmap to achieve a net-zero carbon footprint by 2030, which is affordable and achievable with existing technology. However, post-2020, the journey will be more challenging due to technological advancements in transport and technology, as well as the need for different fuels for ships and packaging materials. The last 10%-20% of net-zero emissions will likely require high-quality carbon credits, which will be achieved through high-quality carbon credits at the end of the journey.
Mars also aims to have 100% renewable electricity in its operations by 2040. To achieve this, the company has been implementing large-scale off-site renewable projects, such as wind or solar, at a national scale. Offtake agreements are typically 20 years long, and the developer builds a wind or solar farm for Mars. This approach offsets electricity usage in factories and operations, making it cost-parity with fossil fuels.
Mars is also investing in coral reef restoration programs, which are crucial for its pet-food business. The company’s pet-food business relies heavily on fish, which are often spawned on coral reefs. Over 10 years ago, Mars developed a process for rebuilding destroyed reefs using interlocking “hexapods” to create new reef infrastructure. Within three years, a completely new reef is created, and the ecosystem starts working again.
Mars has completed the largest coral reef restoration project in the world in Indonesia, but it requires substantial funding. The company needs around 200 times the amount of money being invested in coral reef restoration globally, and they are seeking funders to work alongside them on coral reef restoration.
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Source: Coffee Talk