Mars: Harnessing Procurement to Accelerate Sustainability
The Mars Sustainability Investment Fund represents a strategic manoeuvre in Mars' procurement strategy, aligning with its Sustainability in a Generation Plan that targets sustainability within critical areas of agriculture, packaging and procurement of raw materials.
This initiative is announced in conjunction with the company’s detailed report, which outlines Mars' commitment to reducing emissions through targeted investments in sustainable practices.
The aim is to address emission sources primarily arising from agriculture, packaging and the use of raw materials, all integral to Mars' supply chain management.
From a procurement perspective, focusing on sustainable agriculture is vital for ensuring a stable supply of resources, protecting environmental balance and enhancing social equity.
The new fund explicitly addresses these elements, pushing for innovations that will reshape the procurement landscape at Mars.
Packaging, particularly involving single-use plastics, poses a considerable procurement challenge, as improper disposal can lead to pollution and greenhouse gas emissions during production.
Mars is focusing on sustainable packaging solutions that hold the potential to revolutionise procurement policies globally.
Alastair Child, Chief Sustainability Officer at Mars, emphasises this integrated approach, stating: “Societal impact goals have to be built into business decision making.”
This philosophy is pivotal as Mars steps up their efforts to embed sustainability in each procurement decision.
How the fund impacts agriculture procurement
The Mars Sustainability Investment Fund aims to mitigate farming-related emissions, a central challenge in Mars’ supply chain. This will be achieved through the support of advanced technologies, including:
- Digital tools and systems for farmers to optimise and enhance yield
- Satellite and remote-sensing technology to prevent deforestation
- Innovations in sourcing practices to find climate-resilient ingredients
Procurement professionals at Mars recognise that purchased agricultural goods are the primary source of the company's greenhouse gas emissions, comprising over 70% of the total. Thus, reforming procurement strategies in agriculture is essential for Mars to achieve its sustainability targets.
Initiatives in packaging and materials procurement
Mars plans to invest in alternative ingredients and materials that offer lower-carbon and more nutritious options as part of its packaging strategy. Key goals include transitioning from animal products to plant-based proteins, sourced with lesser energy consumption.
The transition away from flexible plastics to recyclable or compostable packaging is another significant challenge faced in procurement.
Given that over 60% of Mars’ customer-facing packaging is now recyclable, reusable or compostable, thanks to increased use of paper and strategic elimination of certain plastics, procurement processes continue to evolve towards ecological responsibility.
Marc Carena, Regional President of Mars Wrigley Europe, asserts: “Sustainability at Mars is part of our strategy and an intentional focus in our execution.”
“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.”
This includes motivating associates to integrate sustainability into their daily operations and procurement decisions, helping Mars achieve a substantial reduction in emissions.
Future directions
In extending its timeline to 2030 for achieving fully sustainable packaging, Mars acknowledges the challenges in scaling up infrastructure.
The company stresses the importance of systemic change in procurement and supply chain practices, with active involvement from governments, industries and suppliers.
“We’re firmly committed not just to targets in a distant future but to delivering progress now,” adds Alastair.
“This requires a shift in procurement frameworks, necessitating a collective effort for large-scale industry change.” The emphasis on collaboration underscores the procurement strategy at Mars, building partnerships to see through sustainability objectives.
