Mars invites Mondelēz International, Nestlé and General Mills into key climate action group
Mars, Incorporated has alongside industry partners, invited nine major global brands including Mondelēz International, Nestlé and General Mills, to the Supplier Leadership on Climate Transition (Supplier LoCT) consortium, designed to drive action on delivering net-zero greenhouse gases, writes Neill Barston.
The company, which includes its global confectionery division, made the move with strategic consultancy Guidehouse and the initiative’s founding members PepsiCo and McCormick & Company in a bid to deliver on environmental goals.
As Mars revealed, the coalition has reportedly gained significant momentum in the past year expanding its brand participation to 12 corporations – with new joiners including Atlantic Packaging, The Coca-Cola Company, The Estée Lauder Companies, Keurig Dr Pepper, Restaurant Brands International, and Yum! Brands. The scheme involves a series of instructional seminars on developing a greenhouse gas footprint, setting a science-based target, adopting GHG abatement measures, and disclosing progress.
The initiative has been developed as Mars makes progress with its suppliers on climate action, to accelerate progress towards its commitment to achieve net zero greenhouse gas (GHG) emissions by 2050. Since joining Supplier LoCT last year, Mars has engaged over 85 suppliers to enroll in the program, representing roughly 25% of its total carbon footprint. The business is focused on engaging and mobilising its largest 200 suppliers to maximise impact and catalyse change through its broader supply chain.
As previously reported, the company has been particularly active in its wider globals surrounding greenhouse gas reduction, including Mars Wrigley’s French ice cream production facilities switching to renewable energy sourcing.
Barry Parkin, Chief Procurement & Sustainability Officer at Mars, Incorporated welcomed its latest initiative. He commented: “Effectively delivering against net zero will require a deep transformation of global supply chains, which will only be possible if companies embed climate action deep into the core of their procurement strategy.
“With more than three quarters of our emissions coming from the materials that we purchase at Mars, we recognize that supporting our suppliers on a low-carbon transition will be critical in mitigating our impact on the planet. Pre-competitive collaboration between global businesses and suppliers, such as through Supplier LoCT, will be vital in driving the scale and reach needed to overhaul global supply chains.”
As part of Supplier LoCT, supplier participants get direct mentoring and actionable instructions on how to build internal capacity and earn recognition for their accomplishments as they move through each stage. As it enters its second year, the consortium has tripled supplier enrollment in the virtual learning seminars, with more than 1,200 representatives from over 400 supplier firms now embarked in the Supplier LoCT guided journey.
Until recently, most companies have focused on measuring emissions from their own operations and electricity consumption, referred to as scope 1 and 2 emissions. “For many brands, particularly in the food, beverage and consumer goods sectors, the majority of their GHG emissions are in the supply chain referred to as scope 3 emissions,” said Britt Harter, Guidehouse’s sustainability solutions lead. “The Supplier LoCT model is proving to be both a practical and scalable approach to the complex challenge of how to drive down those supply chain emissions not directly under the brand’s control.”
The partnership comes as part of the business’ #PledgeforPlanet initiative launched in 2019, calling on its suppliers to join Mars in setting climate targets in line with the Science Based Targets Initiative, signing on to The Climate Group’s RE100 and embracing a future with renewable energy at the center of operations.
By actively engaging suppliers on climate action, Mars aims to accelerate progress towards its ambitions to achieve net zero GHG emissions, which includes all scope 3 emissions (as defined by the Science Based Targets Initiative) such as those created by agriculture and suppliers.
