Mars announces US$250M sustainability fund amid reductions in GHG emissions
Mars has achieved a reduction of 1.9% in absolute greenhouse gas (GHG) emissions in 2024 compared to its 2015 baseline, according to its latest Mars Sustainable in a Generation Report. The snacking giant has established the Mars Sustainability Investment Fund with a total capital commitment of up to US$250 million for science and innovation to address the challenges ahead.
The fund will invest in technologies that target the company’s portfolio’s agricultural emissions, innovative ingredients that can lower emissions or support “better-for-you” alternatives, and circular packaging that’s recyclable, compostable, or otherwise bio-benign replacements for flexible plastics.
“I’m pleased to see our ability to decouple our business growth from our carbon footprint while simultaneously investing in innovation and getting behind start-ups that will be creating new solutions and advancing breakthroughs to help companies address resilience challenges,” says Poul Weihrauch, Mars CEO.
“These are important areas to make meaningful progress in helping us to reduce exposure to future environmental risks, and eventually, turn it into profit and competitive advantage.”
The US multinational shares that in 2024, its agricultural partnerships to advance deforestation-free supply chains grew to 60 last year, covering 13 crops in 29 countries. Its focus remains on increasing energy efficiency in direct operations and helping partners adopt regenerative farming practices.
Dairy emissions and water efficiency
The company’s latest project updates include the Livelihoods Fund for Family Farmers, through which 932 farmers in North Sumatra, Indonesia, received Roundtable on Sustainable Palm Oil certification.
As a result, 2,031 hectares of land have transitioned to innovative agriculture practices, with enhanced forest conservation efforts.
Additionally, the company has committed US$47 million over three years to help reduce GHG emissions in its dairy supply chain.
Mars estimates that it nearly doubled the acreage of its test pilot under the Kind Almond Acres Initiative, while water data from year one of the study indicated a 17% increase in water efficiency with subsurface irrigation.
As multiple challenges impact the cocoa industry, Mars says its Restore project addresses sustainable farming by increasing tree cover and establishing landscape management boards, creating additional livelihood streams in cocoa-growing communities.
Rice farming in Thailand also gained from the company’s Sustainable Aromatic Rice Initiative, which reportedly reached 1,445 farmers across Roi Et and the Central Plain, increasing rice production by 43% in the former.
“We’re committed not just to targets in a distant future but to delivering progress now. 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,” says Alastair Child, chief sustainability officer at Mars.
