Mars 'Principles in Action' Highlights 2013 en Report

8/12/2019 Mars 'Principles in Action' Highlights 2013 en Report

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Principles in ActionSummary 2013

www.mars.com


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Contents

Our Approach to Business 08

Governance 10

Responsible Sourcing 11

Our Approach to Sustainability 12

Defining Our Impacts 13

Addressing Our Impacts 15

Mars and Science 16

Quality and Food Safety 17

Working with Others 18

Health and Wellness 19

Our Approach 20

Nutrition 21

Developing Partnerships 21

Progress in 2013 22

Targets 22

Our Supply Chain 23

Our Approach 24

Toward a SustainableSupply Chain 25

Progress in 2013 26

Targets 28

Sourcing Seafood Sustainably 29

Our Operations 30

Our Approach 31

Sustainable in a Generation 32

Progress in 2013 33

Targets 33

Sustainable in a GenerationProgress Charts 35

Our Brands 38

Sustainable Innovation 39

Cause Marketing 40

Communicating Responsibly 41

Targets 41

Case Studies 42

Working at Mars 44

Our Approach 45

Associate Demographics 46

The Mars Volunteer Program 47

Progress in 2013 48

Targets 48

Introduction

Readers Guide 03Mars in a Moment 04A Letter from the Office ofthe President 05

Our Stakeholders Views 07

Health & Wellness Supply Chain Operations Brands Working at MarsIntroduction Our ApproachMARS Principles in Action Summary 2013 Introduction


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ReadersGuide

Welcome to our 2013 Principlesin Action Summary, a reviewof our progress during the yeartoward our business objective:to create a mutuality of benefitsfor all stakeholders. This reportprovides examples of how we areputting our Five Principles of Quality,Responsibility, Mutuality, Efficiencyand Freedom into action to make adifference to people and the planetthrough performance.

Visit the Mars website to learnmore about our wider effortsto improve health and wellness,sustainability and why Mars issuch a great place to work.

We commission externalassurance of our reportingand data to give stakeholderscon dence that what we sayis accurate, and to garnerrecommendations for furtherimproving our strategiesand performance.

Our annual Principlesin Action Summary has

been externally assuredby Corporate Citizenshipin keeping with theAccountability AssuranceStandard (AA1000AS-2008).Corporate Citizenshipsassurance statementdetails their review of ourperformance and reporting.

Selected environmental datahave been assured by Lloyds

Register Quality Assurance,Inc. (LRQA).

Both assurance statementsare available on our website.

ReportingScope and Data

Our Principles in ActionSummary covers theglobal activities of Mars,Incorporated and itsbusiness segments: Petcare,Chocolate, Wrigley, Food,Drinks, and Symbioscience.It describes our performance

in the 2013 calendaryear. Where appropriate,we include examples ofactivities and case studiesfrom other years to providea more complete pictureof our work.

Our most recent performancedata is for the 2013calendar year in all cases.All environmental data for

our factories is based onactual gures, though datafor some of ces is estimated.Estimates comprise nomore than ve percent ofthe volume data providedfor raw materials andpackaging materials.

We measure all volumesin metric tonnes (1,000 kg),which we refer to simplyas tonnes throughout.

Financial values are UnitedStates dollars (US$) unlessotherwise stated.

http://mars.com/http://mars.com/http://mars.com/http://mars.com/http://www.mars.com/global/about-mars/people-planet-performance.aspxhttp://www.mars.com/global/about-mars/people-planet-performance.aspxhttp://www.mars.com/global/about-mars/people-planet-performance.aspxhttp://www.mars.com/global/about-mars/people-planet-performance.aspxhttp://mars.com/http://mars.com/http://mars.com/http://mars.com/


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Paul S. Michaels -Co-President Mars,Incorporated.

Almost every second of every day, someonebuys a Mars product. That might surprisepeople. But, the fact is that we operate in 74countries, have diverse consumer businessesin petcare, chocolate, gum and confections,food, and drinks, and make some of the best-loved brands in the world. Everyday consumerschoose our brands because they trust they willget the very best quality and value.

But earning trust as a business requires more.

Almost 70 years ago, Forrest E. Mars, Sr.clearly and simply set out his objective forMars, Incorporated. His de nition of successwas manufacturing and distributing our foodproducts in a way that created a mutuality

of bene ts among all of our stakeholders.He was a man ahead of his time.

Since then, it has been our challenge tolive up to this ambition, by putting our FivePrinciples; Quality, Ef ciency, Responsibility,Mutuality and Freedom into action in ourinteractions and operations and in theprocess generating genuine, mutual bene tsfor people, pets and the planet.

Mutual and Enduring Benefits

Our consumers both people and theirpets get both nutrition and pleasurefrom our products. Our Associates thrivein an uncommon work place built on acommitment to collaboration, developmentand responsibility. Our communities bene tfrom our investments in our operations,the jobs we create and the difference thatMars Associates make in their own hometowns. The suppliers and farmers in ourvalue chain derive bene t from our economicrelationships and our partnerships to adoptmore sustainable practices that improvequality of life, and safeguard valuablenatural resources.

For example, in 2014, we opened a newChocolate manufacturing plant in the U.S..In doing so, we created more than 200 jobs.In the past three years weve created similaropportunities around the globe by opening sixnew sites for Wrigley, Petcare and Chocolateacross China, Russia, and Saudi Arabia.

In addition, across our communities in 2013,Mars Associates gave nearly 70,000 volunteerhours through our Mars Volunteer Program,positively impacting nearly 28,000 peopleand over 5,000 pets around the globe.

Addressing our Challenges

Of course, Mars is also facing substantive

challenges in our efforts to be a sustainablebusiness. To that end, we focus ourattention and long-term investment onthose areas of challenge that Mars shareswith society and where we can make ameaningful difference in driving positivechange based on our resources andcapabilities. As Ive noted in previous yearspublications, these include: reducing theenvironmental footprint of our operations,ensuring sustainable sourcing of ouringredients and, looking at the role of our

portfolio in addressing nutrition and obesity.

We believe that collaboration is key tonding solutions to the challenges Mars and

society share. So, Mars programs are builton partnerships with Governments, NGOs,academic institutions and industry peers.We are, for example, working with partnersto build a comprehensive sourcing strategythat will include impact-based targets,such as eradicating deforestation completelywithin our supply chain and improvinglong-term economic conditions for thefarmers we rely on for many of our inputs.

The suppliers and farmers in our valuechain derive benefit

from our economicrelationships and ourpartnerships to adopt

more sustainablepractices that improvequality of life, andsafeguard valuablenatural resources.

A Letter from theOffice of the President



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Another key goal is eliminating100 percent of our operationalgreenhouse gas emissions by 2040.Im pleased to say we have takena big step forward on that throughinvestment in a new wind farm

in Texas. This wind farm has thepromise of generating electricityfrom renewable sources equivalentto all electricity needs of our U.S.operations, comprised of 70 sites,including 37 factories and 25,000Associates. In doing so, it representsthe biggest long-term commitmentto renewable energy use of anyfood manufacturing business in theUnited States and we hope we willbe joined by many others.

On the nutrition front, we continueto re ne the pro le of our products,ensuring they can be enjoyedas part of a balanced diet. Thisincludes reformulating brands toreduce sodium and unhealthy fats,as well as expanding our offeringsto include more healthy options.At the same time, we are workingwith governments and academicinstitutions on food security andimproving health and wellnesson a global scale.

We do not always achieve what weset out to do. We are disappointed

to have missed 2013 targets incerti cation of coffee, and weare re-evaluating our packagingsustainability work streams. And,while we are close to bringing allour confectionery products down

below 250 kcal per serving, westill have work to do there to fullymeet that goal. Were workinghard to learn and improve fromthese missed opportunities.

In other areas, we can proudlydeclare real progress. In fact, werecently launched a Global FoodSafety Center expected to open inHuairou, Beijing, China, mid-to-late2015. The state-of-the-art food

safety center will be the rst of itskind for Mars and one of the rstfacilities dedicated to food safetyresearch and training in the regionand the industry.

Looking to the Future

Mars, Incorporated has taken somebig steps over the past 10 years.Exciting new developments in 2014will accelerate this progress. Our75,000 Associates make our progresspossible, as they work tirelessly todevelop, re ne and implement thestrategies that are critical to ensuringour success as a sustainable business.

Earlier this year, I announced myretirement, planned for the endof 2014. I am very proud of theprogress weve made while I wasPresident. I am also very con dentthat my successor, Grant F. Reid,

will be fully committed toadvancing our progress.

As our company grows, so willthe social and environmentalchallenges it faces. We mustcontinually use our inherentstrengths our Five Principles, ourexpertise in areas like science andfood security, our passionate andcommitted Associates, our networkof external partners and our

freedom as a successful, privatecompany to live up to the missionand purpose set by Forrest E.Mars, Sr. so many decades ago andcarried forward by the Mars Familyand Mars Associates today.

We sincerely believe that aprincipled business can makethe world a better place anddeliver long-term performance.We appreciate your interest inunderstanding our business and ouraspirations, and challenging andcollaborating with us, so that wecan be the business we want to be.

Wrigleys U.S. team transformed two local parks in partnershipwith Keep Chicago Beautiful. Associates built raised ower beds,laid paths in the childrens garden, cleared debris, and restoredtwo organic gardens that grow fruits, vegetables and native plants.

Our 75,000Associates makeour progresspossible, as theywork tirelesslyto develop, refineand implementthe strategiesthat are criticalto ensuringour success asa sustainablebusiness.



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In January 2014, we invited 11external experts to give us theirperspectives and guidance ondeforestation during a three-day workshop. ParticipatingMars Associates included ourChief Agricultural Of cer, ChiefSustainability Of cer, our VicePresident of Innovation, businesssegment representatives andmembers of our commodityprocurement teams.

The session improvedour understanding of themacroeconomic, social anddemographic drivers ofdeforestation, as well as potentialstrategies for Mars to combatdeforestation in our value chain.The lessons from the sessionalso informed the developmentof our Deforestation Policy.

Deforestation is a highly complexissue that intersects with ourmaterial environmental and socialimpact areas. Its causes range fromcutting down trees for products,such as timber and pulp and paper,to clearing forests for agriculture.

Forests serve as importantreservoirs of carbon, and reducingprimary forest cover resultsin increased greenhouse gas

concentrations. Deforestationalso affects local rainfallpatterns, biodiversity, and peoplewho depend on forests for theirlivelihoods. The challenge for Mars,and the broader food industry, isto eliminate deforestation withinour supply chains, while tacklingits underlying causes.

Our Stakeholders Views

I have been struckby how realisticand honest Marshas been aboutthese issues andthe contribution itcan make. Becauseit is a privatecompany, it has the

freedom to take agenerational viewand an opportunityto be very strategic.There is potential

for Mars to makea major strategiccontributioncomplementingthe efforts of othercompanies working

in this space overthe long-term.

Nigel Sizer,

World ResourcesInstitute

If you are buyingcocoa from areas

that are also beingtargeted for palm oilproduction, such asin Africa, you musttake the opportunityto go beyond theusual solutions andtake a leadershiprole, because noother company isworking there withsuch intensity.

Bastien Sachet,

The Forest Trust

The workshop focused on helpingMars develop an understandingof region and commodity-speci cissues relating to deforestation.We know from our own riskassessments, as well as the workof external organizations suchas the Consumer Goods Forum(CGF), that the biggest threats toforests lie in the beef, palm oil,paper and pulp, and soy supplychains. Experts presented on thesecommodities as well as onthe legal, economic and socialfactors in uencing regionaldeforestation rates.

Next Steps

Mars published its company-wideDeforestation Policy in March 2014.The policy is guided by our FivePrinciples, and prioritizes the fourraw materials that are aligned with

the CGFs priority raw materials(beef, palm oil, paper/pulp andsoy), and where deforestation is amaterial issue. Our procurementteams are developing strategies forimplementing the policy for thesepriority raw materials.

Our stakeholders urged usto focus on high-impact,pragmatic solutions, and toarticulate our vision and goals

clearly. Given Mars leadership inthe cocoa supply chain, we wereadvised to build our approachto preventing deforestation byleveraging our strengths, i.e.,using science-based strategiesinformed by practical experience.This external stakeholder input andthe practical knowledge gainedfrom this workshop will be criticalto informing our future strategiesin this area.

Stakeholders Attendingour DeforestationWorkshop Jason Clay,Senior Vice President,World Wildlife Fund

Leslie Durschinger,Founder, Managing Director,Terra Global Capital

Jonathan Foley,Director, Instituteon the Environment,University of Minnesota

James Grif ths,Managing Director,Natural Capital,World Business Council forSustainable Development

Lars Laestadius,Senior Associate,World Resources Institute

Daniel Nepstad,Executive Directorand President, EarthInnovation Institute

Janet Ranganathan,Vice President forScience and Research,

World Resources Institute

Bastien Sachet,Director, The Forest Trust

Frances Seymour,Senior Fellow, Center

for Global Development

Nigel Sizer,Director, Global Forest Initiative,World Resources Institute

Lloyd Timberlake,Writer, Environment andsustainable development

http://www.mars.com/deforestationhttp://www.mars.com/deforestation


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Our Approachto Business

In thisSection:

Our Five Principles of Quality,Responsibility, Mutuality,Efficiency and Freedomare the foundation of ourculture and our approachto business. They uniteus across geographies,languages, cultures andgenerations.

Governance 10

Responsible Sourcing 11

Our Approach to Sustainability 12

Defining Our Impacts 13

Addressing Our Impacts 15

Mars and Science 16

Quality and Food Safety 17Working with Others 18

Health & Wellness Supply Chain Operations Brands Working at MarsIntroduction Our ApproachMARS Principles in Action Summary 2013 Our Approach


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The rst Mars candies were madein a kitchen in Tacoma, Washingtonin 1911. Since then, we have grown

into a company working across74 countries, delivering over 116brands to our consumers. We areowned by the Mars family, and theFive Principles remain core to ourculture and decision-making.

Our growth brings many bene tsto our stakeholders. Our morethan 75,000 Associates work for acollaborative and forward-thinkingbusiness that nurtures diversity

and intellectual curiosity. Ourcommitment to creating mutualbene ts generates economicopportunities for the communitieswhere we operate, including thesuppliers and farmers in our valuechain. Our consumers bene t fromour brands, from the nutritionalvalue of our food products and themoments of joy derived from ourchocolate to the oral care bene tsof sugar-free gum and the highquality products and services thatkeep pets happy and healthy.

We know that to grow responsibly wehave to expand our business without

increasing our environmentalfootprint. In particular, Mars isconcerned with reducing our

greenhouse gas (GHG) emissionsand the impacts of our land andwater use. Our many challengesinclude improving the economicopportunities associated with ourgrowth more universallyand tackling the problems ofmalnutrition and obesity. Given ourcommitment to Mutuality, theseconcerns are important for Mars; ourfuture success is integrally connectedto our ability to make a positive

impact on people and the planet.

As a private, family-owned company,Mars has the freedom to seeklong-term solutions that arebased on our Five Principles andare informed by collaborativepartnerships and science. Ourambitious goals aim to minimizethe environmental footprint of ouroperations, and we are working toimprove the social and economicprosperity of farmers in our supplychain. We are innovating to enhancethe nutritional content of ourproducts. Mars is also leveragingthe skills and expertise of our

Our Approachto Business

Mars approach to business is guided byour Five Principles of Quality, Responsibility,Mutuality, Efficiency and Freedom. In 1947,Forrest E. Mars, Sr. expressed his goal tobuild a business that creates a mutuality ofbenefits for all stakeholders. Through ourPrinciples, we are committed to his vision,and to growth that is responsibleand mutually beneficial.

As a private, family-ownedcompany, Marshas the freedomto seek long- term solutionsthat are basedon our FivePrinciples andare informedby collaborativepartnershipsand science.

The Five Principles unite all Mars Associates, from factory oor to our of ces to the salesman on the street. They connect usacross geographies, languages, cultures and generations.

Watch The Story of Mars animation online.

Associates to amplify our positivesocial impact beyond our valuechain for example, by investing in

scienti c research and sharing ourndings publicly to drive sustainable

practices within our industry.

Our performance is not perfect;we have missed our targets in someareas such as coffee certi cation.We are working hard to learnand improve from these missedopportunities so that we canmake quick progress. Driven by ourPrinciples and our commitment to

partnership, we will continue towork with all our stakeholders toaddress the challenges we sharewith society.

Read more about Our Approachto Business on the Mars website .

http://www.youtube.com/watch?v=qwoWIqN_sr4http://www.mars.com/global/about-mars/mars-pia/our-approach-to-business.aspxhttp://www.mars.com/global/about-mars/mars-pia/our-approach-to-business.aspxhttp://www.mars.com/global/about-mars/mars-pia/our-approach-to-business.aspxhttp://www.mars.com/global/about-mars/mars-pia/our-approach-to-business.aspxhttp://www.youtube.com/watch?v=qwoWIqN_sr4


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GOVERNANCEMars, Incorporated is governedby a Board of Directors whoare members of the Marsfamily, and who receive advicefrom independent externalBoard Advisors.

Day-to-day operations atMars are directed by a globalmanagement team, led by

Co-Presidents Paul S. Michaelsand Grant F. Reid. Our leadershipstructure is aligned along oursix business segments (Petcare,Chocolate, Wrigley, Food,Drinks, and Symbioscience) inan effort to continue to growand sustain improvement incompany performance.

Learn more aboutour management team .

The Global Public Policy Group,led by our Vice President ofPublic Affairs, ensures thatMars has globally consistent

positions, policies andstandards across allaspects of public policy.

Learn more about MarsGovernance .

Business Integrityand Compliance

Our business practices arerooted in our Five Principles,

which de ne the essentialculture of our corporation.Our Associates embed thesePrinciples in every aspect oftheir work, and the Principlesnurture a culture of ethicsand integrity throughout ourorganization, regardless ofwhich part of the world wedo business.

Training programs, such asthe Essence of Mars guideall our Associates on how toincorporate our Five Principlesinto everyday decision-making,whether they are new to the

company or already have asuccessful career at Mars.We also require Associates toundergo issue-speci c trainingto support compliance withthe laws and regulations thatgovern our business operationsworldwide. For example, ourImproper Payments Policy(IPP) and Competition LawCompliance Program reaf rmour commitment to comply

with anti-corruption andcompetition laws around theworld. The IPP, which includesguidelines for governmentrelations and a tailored third-party due diligence program,also establishes robust reviewprocedures for corporate giftsand donations.

We expect all those who wedo business with, such as oursuppliers, to understand andcomply with our policies. OurSupplier Code of Conduct wasdeveloped and implemented in2011. It includes 10 workplace

standards that meet orexceed International LabourOrganization guidelines.

In 2013, this Code was updatedto include and address emergingindustry challenges such asmigrant labor. The Code,and our Responsible Sourcingprogram, apply to all our directand indirect suppliers. Thisincludes small raw material

producers, service providers,manufacturers as well asmultinational corporations.All Mars suppliers are expectedto align with, and areencouraged to exceed, thestandards included in our Code.It also requires our suppliersto implement similar standardsin their own supply chains. Weonly work with those suppliersthat demonstrate a commitmentto meet the standards includedin our Code and operate in amanner that is compatible withour Five Principles.

MUTUALITYRESPONSIBILITY EFFICIENCY FREEDOMQUALITY

Board of Directors

Global Mars Leadership Team

Mars Associates

FIVE PRINCIPLES

Governance

The Five Principles ground ourdecision-making and unite ourAssociates across geographies,languages, cultures and generations.

http://www.mars.com/global/about-mars/mars-pia/business-summaries.aspxhttp://www.mars.com/global/about-mars/global-leadership.aspxhttp://www.mars.com/global/about-mars/global-leadership.aspxhttp://www.mars.com/global/about-mars/mars-pia/our-approach-to-business/governance.aspxhttp://www.mars.com/global/about-mars/mars-pia/our-approach-to-business/governance.aspxhttp://www.mars.com/global/about-mars/mars-pia/our-supply-chain/supplier-relationships.aspxhttp://www.mars.com/global/about-mars/mars-pia/our-supply-chain/supplier-relationships.aspxhttp://www.mars.com/global/about-mars/mars-pia/our-approach-to-business/governance.aspxhttp://www.mars.com/global/about-mars/mars-pia/our-approach-to-business/governance.aspxhttp://www.mars.com/global/about-mars/global-leadership.aspxhttp://www.mars.com/global/about-mars/global-leadership.aspxhttp://www.mars.com/global/about-mars/mars-pia/business-summaries.aspx


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Mars Recognized for itsSustainability Efforts

Mars was named Best Private Companyby Ethical Corporation Responsible

Business Awards 2013.

The Best Private Company category acknowledgesprivately-held companies that have excelledat embedding sustainable business practicesacross their operations. The award was inrecognition of the progress we have made inreducing our energy use, water use and wastein our operations through the Sustainable in aGeneration program, as well as our industry-leading work in improving cocoa sustainability.

OUR APPROACHTO SUSTAINABILITYAt Mars, we are proud of ourgrowth and the bene ts it brings,but we are also concerned aboutthe impacts and vulnerabilitiesassociated with our business thatcontribute to global challenges,such as climate change, waterscarcity, and deforestation. As aPrinciples-led company, we wantto do our part to improve thesocial and economic conditions of

farming communities, protect theenvironment, and tackle resourcescarcity. The scale of our businessgives us the necessary in uenceto make a positive difference insolving these challenges.

This is our approachto sustainability:

We prioritize the greatestimpacts across our value chain.

We develop the mostscienti cally credible metricsto measure these impacts.

We set long-term targets.

We track our progressinternally and publicly.

We set our targets based on whatis needed to solve the overarchingproblem, rather than what can beachieved in the short-term.

We want to do our part to put farmers rst, improve thesocial and economic conditions of farming communities,and protect the environment.



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I S S I O N S

IMPACTSOF LAND USE

Across our value chain, 97.8percent of our total land use

is for growing raw materials,with packaging (2.2 percent)and factory use (0.05 percent)accounting for the rest.Unsustainable farming practiceshave degraded soil quality,ecosystems and biodiversity a particular threat for key Marscrops in the tropics, such ascocoa, coffee, tea and palm oil.

Learn more about our continuing work to quantify our land use.

IMPACTSOF WATER USE

According to the World HealthOrganization, globally, one in

three people lacks suf cientclean water. Water is a vitalresource, and responsible wateruse is essential to our licenseto operate. Our raw materialsaccount for 96.6 percent ofour total water use, whilepackaging (2.6 percent) andfactories (0.8 percent) accountfor the rest.

Learn more about how wequantify our water use .

Environmental Impacts:

The majority of our environmentalimpacts occur outside our directoperations. Planetary Boundaries

is a highly-respected analysis thatidenti es nine environmentalimpacts and the point at whicheach one will cause catastrophicharm to human wellbeing. 1 Weused this concept and informationabout our value chain to identifythree broad areas of impact mostrelevant to our business: land,water, and greenhouse gas (GHG)emissions. We work with variousexternal partners to quantifythese impacts throughout ourvalue chain the rst step inmeasuring and reducing them.

1. A set of nine planetary limits withinwhich humanity can continue and thrivefor future generations, developed by agroup of 29 scientists from institutionsaround the world in 2009.

DEFINING OUR IMPACTS

The Planetary Boundaries Model Safe operation levels Current operating levelsSafe Unsafe

Social Impacts:

We have used stakeholderfeedback and credible externaltools and data sources, such

as Oxfams model of planetaryand social boundaries , toidentify the material socialimpacts that meet an urgentsocietal need and are mostimpacted by our business.Our focus for 2014 is todevelop associated strategiesto address these impact areasin our supply chain.

Learn more about how weprioritize Mars social impacts .

http://www.mars.com/global/about-mars/mars-pia/our-approach-to-business/defining-our-approach/land-use.aspxhttp://www.mars.com/global/about-mars/mars-pia/our-approach-to-business/defining-our-approach/land-use.aspxhttp://www.mars.com/global/about-mars/mars-pia/our-approach-to-business/defining-our-approach/water-use.aspxhttp://www.mars.com/global/about-mars/mars-pia/our-approach-to-business/defining-our-approach/water-use.aspxhttp://www.oxfam.org/sites/www.oxfam.org/files/dp-a-safe-and-just-space-for-humanity-130212-en.pdfhttp://www.oxfam.org/sites/www.oxfam.org/files/dp-a-safe-and-just-space-for-humanity-130212-en.pdfhttp://www.mars.com/global/about-mars/mars-pia/our-approach-to-business/defining-our-approach/mars-and-society.aspxhttp://www.mars.com/global/about-mars/mars-pia/our-approach-to-business/defining-our-approach/mars-and-society.aspxhttp://www.mars.com/global/about-mars/mars-pia/our-approach-to-business/defining-our-approach/mars-and-society.aspxhttp://www.mars.com/global/about-mars/mars-pia/our-approach-to-business/defining-our-approach/mars-and-society.aspxhttp://www.oxfam.org/sites/www.oxfam.org/files/dp-a-safe-and-just-space-for-humanity-130212-en.pdfhttp://www.oxfam.org/sites/www.oxfam.org/files/dp-a-safe-and-just-space-for-humanity-130212-en.pdfhttp://www.mars.com/global/about-mars/mars-pia/our-approach-to-business/defining-our-approach/water-use.aspxhttp://www.mars.com/global/about-mars/mars-pia/our-approach-to-business/defining-our-approach/water-use.aspxhttp://www.mars.com/global/about-mars/mars-pia/our-approach-to-business/defining-our-approach/land-use.aspxhttp://www.mars.com/global/about-mars/mars-pia/our-approach-to-business/defining-our-approach/land-use.aspxhttp://www.mars.com/global/about-mars/mars-pia/our-approach-to-business/defining-our-approach/land-use.aspx


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SCOPE2

SCOPE1

SCOPE3

Downstreamtransportation

and distribution

19%Upstream

transportationand distribution

6%Associate

commuting

1%Business

travel

0.4%

~6% ~8% ~86%

Purchasedgoods andservices

56%End-of-life

treatment of sold products

2%Use of sold

products

2%Capitalgoods

0.4%

MALL

To find lasting and scalable ways to reduce emissions, we areworking with partners, universities and the scientific community.

The consequences of climate change, such aschanging temperatures and rainfall patterns,floods, droughts, and the spread of pestsand diseases, are putting whole habitatsand communities at risk. This has seriousimplications for the supplies of key Mars crops,as well as for the farmers who produce them.Using the Greenhouse Gas Protocol, and otherrelevant data sources, we have calculated ourGHG emissions as follows:0.8 million tonnes:

Emissions from direct energyand fuel consumption in Marsfactories, of ces and vehicles.

12 million tonnes:Emissions from purchased raw materials,packaging and other goods and services,plus other aspects of our value chain, such astransportation of raw materials and products,business travel, Mars products in use andwaste generated in our operations.

1 million tonnes:Emissions from purchased electricityused in Mars factories and of ces.

IMPACTS OFGREENHOUSEGAS EMISSIONS

Learn more about our targetsand performance on reducingscope 1 and 2 emissions.



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ADDRESSINGOUR IMPACTSThe rst step to managingour impacts is to focus on ouroperations (factories and of ces),

where we have direct control.Our ambitious Sustainable ina Generation program aims toeliminate GHG emissions fromour operations by 2040.

Learn more about Mars Operations.

We want to improve theenvironmental sustainability ofour raw materials, boost farmersincomes, and create mutual

bene ts for their communities.In 2014, we will expand the numberof priority raw materials for whichwe will set targets that focuson mitigating our impacts.Our Deforestation Policy is the rststep to tackling these impacts inour supply chain and representsthe early stages of our enhancedsustainable sourcing strategy.

Learn more about our sourcingstrategy in Mars Supply Chain .

Our strategiesaim to help

farmersreduce their

environmentalimpacts,improve theirlivelihoods andensure a securesupply for Mars.

2. Laven, A.,& Verhart, N. (2012). Contributingto a sustainable cocoa sector: Improvingthe CLP Outreach to female cocoa farmers .

Amsterdam: Royal Tropical Institute

3. Chan, M.-K.,& Barrientos, S. (2012).Improving Opportunities for Womenin Smallholder-based Supply Chains. Seattle: Bill and Melinda Gates.

We are also using our iconic brands to educate, encourage and partnerwith consumers to champion goodcauses and promote the purchaseof products that are better forpeople and planet.

Learn more about Mars Brands .

Mars respects human rightsthroughout our value chain andrecognizes the principles of theUnited Nations Declaration ofHuman Rights and the InternationalLabour Organizations Declarationon Fundamental Principlesand Rights at Work. Our workto combat the worst forms of

child labor and traf cking in thecocoa supply chain has been inpartnership with governments,non-governmental organizations(NGOs) and industry. We sharethe widely held view that childlabor, while abhorrent, is rooted incomplex economic, political, andsocial issues; Mars must tackle thisproblem in a similarly diverse andcomprehensive way.

Learn more about our policyon child labor .

Empowering Women inthe Cocoa Supply Chain

We are committed to empoweringwomen in farming communities.Women provide nearly 45 percent

of the labor on cocoa farms investing in their training canlead to an improved quality oflife for their families. 2 Researchshows that women often producea better product; helping womenfarmers leads to greater cocoaproductivity and quality, and amore secure supply chain. 3 In 2013,Mars Chocolate signed the UnitedNations Womens EmpowermentPrinciples as a demonstration of

our commitment to empoweringwomen in the cocoa sector.Our new gender assessment ofwomen cocoa farmers in CotedIvoire available on our website provides a roadmap for how wecan enhance existing efforts toengage women through the Visionfor Change program.

Women provide nearly 45 percent of the labor on cocoa farms investing in theirtraining can lead to an improved quality of life for their families.

http://www.mars.com/global/about-mars/mars-pia/our-operations/sustainable-in-a-generation.aspxhttp://www.mars.com/global/about-mars/mars-pia/our-operations/sustainable-in-a-generation.aspxhttp://www.mars.com/global/about-mars/mars-pia/our-brands.aspxhttp://www.mars.com/nochildlaborhttp://www.mars.com/nochildlaborhttp://cocoasustainability.com/http://cocoasustainability.com/http://cocoasustainability.com/http://www.mars.com/nochildlaborhttp://www.mars.com/nochildlaborhttp://www.mars.com/global/about-mars/mars-pia/our-brands.aspxhttp://www.mars.com/global/about-mars/mars-pia/our-operations/sustainable-in-a-generation.aspxhttp://www.mars.com/global/about-mars/mars-pia/our-operations/sustainable-in-a-generation.aspx


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In early 2013, we completed our participation in apan-European research project known as FLAVIOLA.FLAVIOLA explores the cardiovascular health bene tsof avanols, a class of plant nutrients found infoods such as tea, grapes, and cocoa. The three-year program, funded by a grant from the EuropeanCommission, involved Mars as the only corporatemember among several universities. The goal of thisproject was to use a comprehensive, evidence-basedapproach to the development of innovative foodproducts that will improve health.

Our scientists participated in the 2013 LindauNobel Laureate Meetings on chemistry, attended by34 Nobel laureates and 625 top young researchers.Mars co-sponsored the meetings, organized specialsessions, and funded the attendance of 15 youngscientists, known as the Mars Fellows, so they couldbene t from the meetings mission of connect,educate, inspire.

In October 2013, the WALTHAM Centre forPet Nutrition and the BANFIELD Pet Hospital

co-hosted a three-day state-of-the-art nutritionalsciences symposium, where nutritional scientistsand veterinary specialists participated in scienti csessions that bridged current human and pet careissues, including aging, healthy weight managementand macronutrient selection.

In 2013, the Wrigley Science Institute wasrestructured to form the Wrigley Science AdvisoryCouncil (WSAC) to advance and share Wrigleysscienti c research by establishing advisory boardsand peer reviews as needed. The WSAC operates inconjunction with the Mars Science Advisory Council,providing guidance on research and quality issues,as well as access to a vast external networkthat keeps the company abreast of advances,opportunities and challenges.

MARS AND SCIENCE

At Mars, our decisions are based on our FivePrinciples, and are informed by science.Evidence of our contribution to scienti c leadershipcan be found in our pursuit of research programs,policy development, product developments and waysof doing business throughout our value chain.

This work is performed by a team of scientists withinevery segment of Mars, and often in collaborationwith leading scientists and institutions. The qualityand objectivity of this work is enhanced by advicereceived from the Mars Science Advisory Council,comprised of leading external and internal scientistsin elds relevant to the Mars business. Here are somerecent examples of our scienti c work:

The Mars Advanced Research Institute (MARI) helpeddevelop the African Orphan Crops Consortium (AOCC), an effort by African governments, NGOs,companies and international agencies to boostnutrition, particularly among rural African children,by improving the crops grown in their gardens.In December 2013, the AOCC, co-chaired by Mars,opened an institute in Nairobi to train Africanscientists and technicians in using genomics tobreed better food crop varieties. In addition toproviding scienti c leadership and guidance for thisunique collaboration, MARI is helping to secure thefunding, equipment and infrastructure required toachieve the ambitious goals of the project.

A atoxin is released by a fungus found in graincrops all over the world, but particularly inthe humid tropics. Working with IBM, we havedeveloped a model to understand the a atoxinrisks from various farms and ecosystems. Becausewe use grains in our products, this model hasbene ts for Mars, but it will also help othercompanies purchase safer grains.

Mars sources rice for our range of UNCLE BENS rice products. We are encouraging our contract ricegrowers to adopt the alternate wetting and drying(AWD) irrigation approach, based on our pioneering

work with University of California, Davis, Universityof Arkansas and the USDA Agricultural ResearchService, which found that AWD saves water andreduces methane emissions from rice elds. We arealso exploring ways to use this method in Europeand the Mississippi Delta, where current water usefor irrigation is unsustainable.

Our scientists and collaborators published acomprehensive map of the genome of cacao(the tree that produces cocoa beans). We are usingthe cacao genome sequence, developed in 2010, inefforts to develop new varieties of disease-resistantand highly productive trees that can contribute toa more sustainable cocoa farming community. We arealso investing in mapping the peanut genome, whichwill allow breeders to develop higher-quality yields.

Our work isperformedby a largeand diversecommunityof scientistswithin everysegment of

Mars, and oftenin collaborationwith leadingscientists andinstitutions.

Mars scientists are developing new varieties of disease-resistant,highly productive trees to improve cocoa productivity.

http://www.mars.com/global/african-orphan-crops.aspxhttp://www.mars.com/global/african-orphan-crops.aspx


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QUALITY ANDFOOD SAFETYAs the rst of our Five Principles,Quality is the basis of the brandloyalty and consumer trust in Mars,and has underpinned our growthfor generations. We manufacture

most of our products ourselves,and work closely with suppliersto maintain our exceptionallyhigh standards.

Our Quality Management Process(QMP) framework is a comprehensiveprogram that ensures we consistentlydeliver high-quality and safe products.We recently extended the scope ofour QMP, which includes all businessunits and manufacturing sites, to ourcorporate unit, and have begun toroll out the framework into all ourglobal market units.

We develop robust speci cations forour ingredients and packaging, andbuild long-lasting and collaborativerelationships with a small numberof trusted suppliers. Our MaterialQuality Management Standardguides our proactive and risk-based approach to supplier qualityassurance, and we partner with

suppliers to help them develop their

quality capabilities. We regularlyaudit the manufacturers of theingredients that we use in ourfactories, which helps us maintainhigh quality and food safetythroughout the supply chain.

A number of notable food safety

issues have impacted consumersaround the world and we believethat industry has a crucial roleto play in helping emerging anddeveloping markets identifyrisks and solutions. We havecollaborations with Global Alliancefor Improved Nutrition and theWorld Bank, and we are looking todo more, especially in the area ofmycotoxins. In 2015, we will openour new Mars Global Food SafetyCenter in Huairou, China. We havea long and well-established historyof collaboration and partnershipacross the globe and consider thecenter an important investment infood safety research and capabilitybuilding. Leveraging the skills andknowledge of a global networkof universities and researchinstitutions, this world-class facilitywill improve our ability to respondto new challenges in food safetyand quality, and support learning

across the globe.

We buildlong-lastingand collaborativerelationshipswith a smallnumber

of trustedsuppliers.

StandardizingOur Approach toConsumer Care

We depend on our consumersfor our success, and we have tounderstand their needs. Consumercare plays a critical role inamplifying consumer feedbackwithin the business, and we havebegun an ambitious programto standardize our approachto consumer care globally. TheVoice of the Consumer projectwill provide clear, universalstandards for listening to andacting on consumer feedback sothat we may continually improveour relationship with consumersand identify ways to bettermeet their needs.

Quality and Food Safety are of the highest priorityat Mars. Experts around the globe, like this WrigleyQuality Assurance Technician in Yonghe, China,ensure our consumers get our very best.

Watch the Mars and Scienceanimation online.

http://www.youtube.com/watch?v=phCy7V0j0jchttp://www.youtube.com/watch?v=phCy7V0j0jchttp://www.youtube.com/watch?v=phCy7V0j0jc


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WORKINGWITH OTHERSAs a private company, we workclosely with independent expertsto seek their input on issuesrelevant to our business.For example, our senior

management team is guided byan advisory-only group of externalexperts Mars Global Advisors onthe impact of major public policy,geopolitical, and macroeconomicissues and trends on businessstrategies and priorities.

We are a founding member of theBusiness Platform for NutritionResearch (BPNR), a multi-stakeholderplatform of 10 companies withthe Global Alliance for ImprovedNutrition. BPNR seeks to de ne, fundand disseminate new research toimprove nutrition in the developingworld. Mars leads the Platforms foodsafety work stream, and our internalfood safety team works with externalexperts to help frame the keyresearch areas that will help improveglobal food security.

We are a member of Bonsucro, aglobal multi-stakeholder initiative

with over 175 manufacturers,retailers and farmer communities,whose vision is to reduce theenvironmental and social impactsof sugarcane production. Our aimis to work with Bonsucro to engagewith and learn from the broaderindustry to improve certi cationand sustainability practices inthe sugarcane sector.

Mars has also joined BICEP (Business

for Innovative Climate & EnergyPolicy), an advocacy coalition ofbusinesses committed to workingwith policy makers to tackleclimate change. We are amongthe signatories of its ClimateDeclaration, which brings togetherU.S. business and citizens in acommitment to ensure the countryleads the world in a coordinatedeffort to combat climate change.

Our business segments also workwith external partners on issuesspeci c to their segments andbrands. Mars Food collaborateswith an international group of

external experts, the Food Scienti cAdvisory Council (FSAC), on foodnutrition and sustainability. Forexample, the FSAC was one ofour leading partners in researchfocused on alternative wetting anddrying (AWD), a farming techniquethat saves water and reduces

methane emissions from rice elds.Our collaboration with the FSACalso aims to increase resistantstarch and other health bene tsin rice and whole grains, both ofwhich are known to add to theirnutritional content.

Wrigley collaborates with thePlatform for Better Oral Health inEurope to raise awareness on oraldisease prevention. In 2013, thePlatform, of which Wrigley is aco-founder and member, proposed2020 targets that focus onimproving data collection systems,prioritizing the creation ofdedicated oral disease preventionpolicies in Europe, and reinforcingoral care awareness among childrenand teens.

In 2013, we published ourstatement of intent on deforestation,which commits us to taking action

on deforestation, with a focus onthe areas where we can deliver thegreatest bene t. We are a memberof the Consumer Goods Forum(CGF), a global industry networkthat brings together CEOs and seniorcorporate managers to collaborateon sustainability and consumerissues. CGF has committed tomobilizing its resources to achievezero net deforestation by 2020.Our Chief Sustainability Of cer is

on the Forums Sustainabilitysteering team, and in 2013, ourGlobal Chief Customer Of cerbecame the co-chair of theOperational Excellence steeringteam. In January 2014, Marsinvited 11 expert stakeholders to aworkshop on deforestation to helpus develop a vision and strategyfor our Deforestation Policy.

See page 7 for a summaryof the worksho p.

More examples of how we workwith others can be found in thisdocument and on the Mars website.

CASE STUDY

Improving EducationThrough Partnership

The Wrigley Company Foundation is working

with Indias largest non-governmentaleducation organization, Pratham, on aninitiative to help improve education in topmint farming districts in the country.

The three-year, $1 million educational partnershipaims to provide quality education and addresslearning gaps faced by 40,000 children in 1,000villages. Pratham Books will also publish a seriesof mint story cards, which will follow thejourney of mint from planting to end-productuse, helping children to read while also providinga real and relevant story for them to follow.

Education is one of the best ways to touch peopleslives, said Michael Yeung, Wrigley CompanyFoundation board member and President, WrigleyAsia-Paci c, and we are happy to create avenuesfor children in India to learn and grow through thisWrigley Company Foundation/Pratham partnership.

The partnership will encourage parents to takean active part in their childs education. Theprogram was piloted in 2013 in 300 mint farmingvillages, and will scale up over the next two years.

Wrigley uses mint to avor 70 percent of its gumformulas, including some fruit- avored products.

Strategic partnerships and open dialogue withstakeholders help Mars address the issues andopportunities we face as a business.

http://http//www.mars.com/deforestationhttp://www.mars.com/global/about-mars/mars-pia/our-approach-to-business.aspxhttp://www.mars.com/global/about-mars/mars-pia/our-approach-to-business.aspxhttp://www.mars.com/global/about-mars/mars-pia/our-approach-to-business.aspxhttp://www.mars.com/global/about-mars/mars-pia/our-approach-to-business.aspxhttp://www.mars.com/global/about-mars/mars-pia/our-approach-to-business.aspxhttp://www.mars.com/global/about-mars/mars-pia/our-approach-to-business.aspxhttp://www.mars.com/global/about-mars/mars-pia/our-approach-to-business.aspxhttp://http//www.mars.com/deforestation


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Health andWellness

We make products thatpeople enjoy eating, feelconfident about feeding totheir families and pets, andthat contribute to overallhealth and wellbeing. As aglobal food company, weare committed to meetingthe challenges of nutrition,food security and foodsafety through research andcollaborative partnerships.

In thisSection:

Our Approach 20

Nutrition 21

Developing Partnerships 21

Progress in 2013 22Targets 22

Health & Wellness Supply Chain Operations Brands Working at MarsIntroduction Our ApproachMARS Principles in Action Summary 2013 Health & Wellness


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We are proud of our products from healthy and nutritious foodsuch as rice and sauces to indulgentpleasures such as chocolate. Westrive to make products that notonly taste great, but can also bringbenefits to our consumers, whetherthrough improved nutrition, improvedoral health, or healthier pets.

OUR APPROACH

Our challenge is to provideaffordable and tasty foodthat helps feed the worldsgrowing population, whileat the same time addressingconcerns about rising obesitylevels. Our approach is basedon helping people make theright choices, improvingthe nutritional value of ourproducts, conducting scienti c

research into nutrition, andworking to promote active,healthy lifestyles. We work withpartners to tackle challengesthat we share with the widerfood industry, such as improvingglobal food security, safetyand quality.

Helping People Choose

Providing clear and meaningfulinformation about theingredients in our productshelps people make informedchoices for themselves,their families and their pets.

By adding more nutritional

information front of pack andmore ingredient statementsthan ever before, we arebuilding and maintainingconsumer trust by makingit easier for them to obtainnutritional informationabout our products.

We were the rst companyto commit to using GuidelineDaily Amounts (GDA) labeling

on confectionery and foodproducts worldwide. Nutritionalinformation is prominentlydisplayed on the front andback of our packaging.

Improving Our Products

According to the WorldHealth Organization, over 1.4billion adults worldwide areoverweight, with over 500million people classi ed asobese. Obesity is a risk factorfor heart disease, stroke andtype 2 diabetes. 4

We strive to give consumers

a wide choice of products,allowing them to choose thefoods that best t into theirown diet and lifestyle. Weare continually improving thenutritional content of ourproducts without compromisingtaste, convenience, quality oraffordability. In recognition ofthe increasing consumer demandfor enjoyable options that tinto a balanced diet, Mars,

Incorporated has committed tono more than 250 calories perportion and reduced saturatedfat in our confectionery brands.

For example, many of ourpopular brands, such as MARS ,TWIX , SNICKERS , MILKY WAY and TOPIC bars, have reducedsaturated fats and meetour 250 calories per portioncommitment in the UK, U.S.,and other major markets.

Mars has worked to improvethe nutritional value ofits food portfolio globally

through voluntary partnerships

with government and non-governmental initiatives.In 2012, we achieved ourcommitment to reduce sodiumlevels by 25 percent, from a2007 baseline. By December2013, all Mars food productssold in the UK met the UKDepartment of Healths sodiumtargets. In France, UNCLEBENS was recognized bythe French government for

reformulating its express riceand sauces to meet reducedsodium commitments. InAustralia, we reformulated anumber of our products to meetthe National Heart FoundationsTick of Approval standard.Similarly, in South Africa, ourROYCO brand launched thecountrys rst low-fat saucerange, which has been endorsedby the Heart and StrokeFoundation of South Africa.

Health and Wellness

4. World Health Organization, Obesity andoverweight , Last Updated March 2013,

http://www.who.int/mediacentre/factsheets/fs311/en/index.html

Mars portfolio of brands includes a widevariety of products that consumers enjoy andfeel con dent about feeding their families.

http://www.who.int/mediacentre/factsheets/fs311/en/index.htmlhttp://www.who.int/mediacentre/factsheets/fs311/en/index.htmlhttp://www.who.int/mediacentre/factsheets/fs311/en/index.htmlhttp://www.who.int/mediacentre/factsheets/fs311/en/index.html


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Nutrition

We use scienti c research both in-house and throughexternal partnerships to improve nutrition forpeople and pets, and to tackle food security issues.Improving food security and safety addresses a globalchallenge, and is crucial to protecting our reputationand the continued enjoyment of our products globally.

Mars leverages the knowledge of international expertsto inform and guide us on the research we support orconduct, including:

Food Security: Mars is working with industrypartners and the Global Alliance for ImprovedNutrition to advance access to nutritional researchfor the developing world. We are collaboratingwith the University of Cambridge to discover newtechnologies that will progress our sustainabilityperformance, boost our supplies of sustainableraw materials and enhance the nutritional pro leof our products. We have taken a leading role inthe African Orphan Crops Consortium, which aimsto map the genomes of some of Africas mostimportant food crops to boost yield, nutrition andresilience. We are also investing in a Global FoodSafety Center in China, which will conduct researchto gain early warning of new food safety threatsand develop robust food safety and quality systems.

HEALTH IN GUM : CAFOSA, the worlds leadingsupplier of gum bases that is owned by Wrigley, hasdeveloped an innovative concept in the areaof medicated chewing gum called HEALTH IN GUM ,

a ready-to-use powdered mix of gum base andsweeteners that makes medicated chewing gumeasier and more cost-effective for pharmaceuticalcompanies to produce. For patients, medicatedchewing gum can be a preferred alternative tooral drug delivery, such as swallowing pills.

Pet Health and Ownership: We want to advanceresearch on pet nutrition and the bene ts ofpet ownership. We do this primarily through theWALTHAM Centre for Pet Nutrition (WALTHAM ),a leading scienti c authority on pet nutrition and

wellbeing for over 50 years. In 2013, we published39 peer-reviewed papers, including ve new studiesexamining the bene ts of human-animal interaction.One of these studies revealed that more than athird of children believe their pets understandhow they feel, demonstrating the pivotal role thatanimals play in the lives of young children. Anothershowed that structured interaction with dogs mayhelp people with dementia.

We arecontinuallyimproving thenutritionalcontent ofour products

withoutcompromisingtaste,convenience,quality oraffordability.

Developing Partnerships

We work with governments, research institutions andNGOs at the local and national level to promote healthand wellbeing in our communities.

In the U.S., we support the Lets Move! campaign,launched by First Lady Michelle Obama in 2009, whichencourages parents and children to make healthychoices. As a founding member of the Healthy WeightCommitment Foundation (HWCF), we are doing ourpart to reduce the calories in a range of our products.In 2014, HWCF announced that member companies hadexceeded HWCFs 2015 goal of reducing 1.5 trillioncalories from the marketplace by removing over 6.4

trillion calories from their products.

In 2013, Mars Food continued its partnership with theUK Department of Health through its support of thelatest Change4Life campaign Be Food Smart withUNCLE BENS Ready to Heat Rice. Be Food Smart helpsconsumers make healthier meal choices, and featurestelevision advertisements as well as a range of healthyrecipes and money saving vouchers.

In Europe, we partner with EPODE, the worlds largestobesity prevention network, and support their efforts

to combat childhood obesity. Through the Al HarakaBaraka program (movement is a blessing) in theMiddle East, we are helping educate students on theimportance of physical activity.

Wrigley has long conducted and supported researchthat shows that chewing sugar-free gum for 20 minutesafter meals can help protect your teeth. Thesebene ts are widely accepted and endorsed by dentalprofessionals and included in the health policies ofseveral national governments. In 2013, the Frenchand German dental associations committed to includechewing sugar-free gum in their recommendationfor better oral health. The German Association forPreventative Dentistry issued a noti cation to alldentists on this inclusion and announced its intentionto develop a scienti c guideline on this matter.

Veterinarians at our BANFIELD Pet Hospitalexamine a small dog. Today, BANFIELD has more than 800 pet hospitals in the U.S.,providing high-quality care for pets.

Watch MarsHealth andNutritionanimationonline.

http://www.mars.com/hnvideohttp://www.mars.com/hnvideohttp://www.mars.com/hnvideohttp://www.mars.com/hnvideohttp://www.mars.com/hnvideohttp://www.mars.com/hnvideo


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Many of our popular chocolate brands, such as MALTESERS ,have GDA labels, allowing consumers to quickly and easily knowthe calorie (or nutritional) content of their favourite brands.

PROGRESS IN 2013

To help consumers nd theproducts that best t into theirlifestyles, we have continuedto implement GDA labelingacross our confectionery andfood brands. At least 90 percent

of our confectionery productsare labeled in all the marketswhere we operate, with somemarkets already at 100 percentlabel implementation. In mostmajor markets, we havealso met our 250 calorieper portion target.

In 2013, nearly 85 percent ofour products across our globalfood portfolio had GDA labelson them. In addition, MarsFood achieved the 25 percentaverage salt reduction threeyears ahead of the target date.We further strengthened ourcommitments by pledging tomeet voluntary targets setlocally by government agencies.For example, we adopted theUK Department of Healths

sodium targets, succeededin meeting our commitmentsmade in France on our rice andsauce portfolio, and have metthe targets in the New York CityHealth Departments NationalSalt Reduction Initiative. Inaddition, we now use local

sodium targets in our productdesigns for new products.

For pet owners, understandingthe ancestry of their mixed-breed dogs can help them makeappropriate nutrition and dietchoices, and provide a bettertraining program for their dogs.Mars has been a leader in dogDNA sequencing technology.In 2013, we launchedWISDOM PANEL 2.0, the nextgeneration in dog DNA testing,which now covers 100 percentof the formally recognizedAmerican Kennel Club breeds,and offers consumers over100,000 DNA markers for thesame or lower cost, up from320 DNA markers previously.

NUTRITIONALLABELING

100%

SODIUM/SALT

CALORIES

GDA LabelingWe will implement GDA nutritionallabeling on most of our chocolate andconfectionery globally by year-end

2013, and continue to roll out GDAlabeling across our food portfolio byyear-end 2014.

PROGRESS:

We have implemented GDAnutritional labeling on at least 90%of our chocolate and confectioneryportfolios. Within our food portfolio,85% of our products carry a GDA label.

25% ReductionWe have already removed salt froma number of our products, havingreduced sodium/salt levels in MarsFood products globally by an averageof 25%, from a 2007 baseline.We achieved this through participationin government initiatives and agreeingto voluntary reduction commitmentsin different regions.

PROGRESS:

We currently measure our performanceby tracking the percentage of MarsFood portfolio that meets regionaltargets or de nitions of responsiblesodium/salt levels.

Target achieved in 2013

250kcal Per PortionWe will not offer any Mars Chocolate

products that exceed 250 calories perportion by the end of 2013.

PROGRESS:

Many of our popular bars, such asSNICKERS , MARS , and M ILKY WAY ,have reduced their saturated fatcontent and meet our target to notexceed 250 calories per portion.

Target not achieved in 2013

TARGETS



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Our Supply Chain

We are committed tosourcing raw materialsin ways that reduce ourenvironmental footprint,improve farmer prosperity,and ensure reliable andaffordable supplies ofraw materials to helpour business grow.We are setting ambitioustargets that will combatthe challenges of climatechange, deforestationand water quality andscarcity, while improvingfarmer livelihoods.

In thisSection:

Our Approach 24

Toward a SustainableSupply Chain 25

Progress in 2013 26

Targets 28Sourcing Seafood Sustainably 29

Health & Wellness Supply Chain Operations Brands Working at MarsIntroduction Our ApproachMARS Principles in Action Summary 2013 Supply Chain


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CASE STUDY

Our Deforestation Policy

As one of the worlds leading food companies,we recognize the need to demonstrateexemplary sourcing practices and commit tothe protection of forests and biodiversity.As a priority for tackling our land useimpacts, we are focusing on deforestation.We worked with internal and externalstakeholders to help us develop a company-wide Deforestation Policy, published in 2014.

See page 7 for a summary of the worksho p.

Our new Deforestation Policy commits usto sourcing raw materials with the greatestimpact on forests (beef, palm oil, pulp and

paper, and soy) from producers and supplierswho comply with the following: produce orpurchase all raw materials from legal sources;no deforestation of primary forest or areasof high conservation value; no developmentin high carbon stock forest areas or onpeatlands regardless of depth; no burning toclear land; respect the right of all affectedcommunities to give or withhold their free,prior and informed consent for plantationdevelopments on land they own legally,communally or by custom; resolve land rights

disputes through a balanced and transparentdispute resolution process; comply with ourCode of Conduct; and support farmers andplantation owners to comply with this policy.

Our Palm Oil Policy is available on ourwebsite , and we plan to issue policiesfor pulp and paper, beef and soy by theend of 2014. Mars will also monitor thedeforestation risk of other raw materials,and partner with industry, governmentsand civil society on broader efforts toprotect forests and ensure mutual bene tsfor the workers and communities thatrely on them for their livelihoods.

TOWARD A SUSTAINABLESUPPLY CHAIN

We are building on our existing strategy to developa more comprehensive sustainable sourcing strategy.

We partnered with World Wildlife Fund (WWF) and

Maplecroft and mapped our supply chain to evaluateour next set of priority raw materials, based onthe size of their impact, our business prioritiesand Mars Principles. As the next step, we areassessing the most signi cant impacts for the rawmaterials we source, and we will set targets againstthese impact areas. The emphasis on impacts ischaracteristic of Mars unique approach to globalchallenges: derived from science, research andcollaboration, and focused on tackling long-termchallenges that face agricultural supply chains,rather than short-term goals.

For example, our priority within one of the keyenvironmental impacts we have identi ed (land)is eliminating deforestation. We analyzed the dataprovided by external partners such as Maplecroftand evaluated the Consumer Goods Forums priorityraw materials where deforestation is a materialissue. Our stakeholder meeting in January soughtexternal input on our focus areas. This process ledto the launch of our Deforestation Policy in March2014, prioritizing palm oil, beef, paper and pulp,and soy (see case study). We will continue to usethis approach evaluating our impacts, seeking

stakeholder input and setting long-term targets to help us build on our existing programs andpolicies as we develop a more comprehensivesourcing strategy.

Mars understandsthat the long- term viability oftheir businessdepends on

sustainablesourcing.WWFs SupplyRisk Analysishelped thecompany identifyenvironmentalrisks andprioritize wherethey can have the

greatest impact.

Dave McLaughlin,

Vice Presidentof Agriculture,World Wildlife Fund

We aim to source 100 percent of our black tea from certi ed sources by 2015.

http://www.mars.com/deforestationhttp://www.mars.com/palmoilhttp://www.mars.com/palmoilhttp://www.mars.com/palmoilhttp://www.mars.com/palmoilhttp://www.mars.com/palmoilhttp://www.mars.com/palmoilhttp://www.mars.com/deforestation


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COCOA:

We have increased ourpurchase of certi edcocoa to 30 percent oftotal volumes, making

us the worlds largestbuyer of certi edcocoa. In June 2013,the journal GenomeBiology published thelatest ndings on ourcocoa research, whichidenti ed key geneticmarkers that will help usdevelop more productivecocoa trees throughtraditional breeding.

Mars also published agender assessment onwomen cocoa farmers,and we are in theprocess of developinga comprehensivegender outreach plan,strengthening ourcommitment to women inthe cocoa supply chain.

Read the entireassessment atcocoasustainability.com .

RICE:

We are working inpartnership with theInternational RiceResearch Institute and

basmati rice farmersin Pakistan to optimizefarming practices. Theobjective is to minimizethe use of chemicals,optimize water useand improve farmerproductivity. Throughthis engagement,farmers receive apremium price overtypically grown

basmati, ensuring abetter product forMars, better incomesfor farmers and moreef cient utilization ofnatural resources.

TEA:

Our aim is to source 100percent of our black teafrom certi ed sourcesby 2015. Currently 32

percent of our supplyis certi ed, and weremain on track to reachour 2015 goal of 100percent. Partnershipis vital in sustainablesourcing. We seek tocollaborate with othersin our sector to amplifythe mutual bene ts wecan create. We are amember of the Ethical

Tea Partnership, amembership body fortea packers that aims toensure tea is producedunder positive socialand environmentalconditions, with thevision of creating asustainable tea industry.

COFFEE:

Our aim was to source100 percent of ourcoffee through certi edsources by 2013. By

the end of 2013, only73 percent of ourglobal market volumewas certi ed. Throughour work, we havelearned about thechallenges associatedwith sourcing certi edcoffee, including thatlead times to procurethese beans can belonger than anticipated

and the importanceof setting up effectiveinternal processes tomeet this timeline. Wewill incorporate theselessons to help us reachour future certi cationcommitments, and weare con dent of meetingour target by yearend 2014.

PACKAGING:

Quality packaging iscritical to preventingour products fromspoiling, enabling

ef cient transport,and helping consumersidentify our brands. Weare working to tacklethe environmental andsocial impacts associatedwith our packaging. Ourshort-term targets havefocused on reducingmaterial use and onincreasing the recycledcontent and recyclability

of our packaging. Ourprogress, however,has been slower thanexpected. In 2013,primarily driven bygrowth, our packagingweights increased by4.1 percent from thebaseline in 2007. We arecurrently undertakinga deeper review of ourpackaging strategy andtargets to understandhow we can accelerateour performance inthis area.

PROGRESS IN 2013

In 2013, we made significant progress in developing our sustainable sourcingstrategy. Our challenge in 2014 will be to define specific policies and goals.

We have also progressed on building sustainable supply chains for some of ourkey agricultural commodities, including:

http://cocoasustainability.com/http://cocoasustainability.com/http://cocoasustainability.com/http://cocoasustainability.com/http://cocoasustainability.com/http://cocoasustainability.com/


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MINT: We are identifying best practicesto reduce environmentalimpacts of mint farming relatedto productivity, water usage,distillation ef ciency andreduction of GHG emissions.For example, Wrigleycollaborated with the MintIndustry Research Council

to educate North Americanfarmers on the environmentaland economic bene ts of usingnatural gas over diesel fuel.Over the last four years, thesefarmers converted 18 percentof total mint production fromdiesel to propane or naturalgas, resulting in a reductionof over 8,000 tonnes of carbondioxide. In India, another keymint growing region, Wrigley

is developing a sustainableagriculture plan. This assessesour environmental and socialimpacts, and sets strategiesagainst these impacts to ensurewe secure a vibrant Indian mintindustry for the future.

FISH:

The United Nations estimatesthat 87 percent of global

sheries are already shedat or beyond capacity. 5 As aleading petcare company, wehave committed to sourcing 100percent sustainable sh by 2020.Our strategy is to reduce thetotal amount of sh used in our

pet food, replace any vulnerablesh sources, and source from

third-party recommendedsheries to assure the

sustainability of our products.

In 2013, Mars Petcare continuedto offer consumers an expandedrange of sustainable pet foodproducts. In the U.S., we havereplaced over half of our shsupply with Monterey Bay

Aquarium approved sources.In Europe, we have threeMarine Stewardship Council(MSC) certi ed production sitesand 40 MSC-certi ed productsfrom SHEBA and WHISKAS .In Asia-Paci c, we havereduced our tuna usage (whole

sh equivalent) by nearly30 percent by making moreef cient use of every shand reducing waste.

CASE STUDY

ImprovingPalm OilSustainability

Most palm oil production isin Southeast Asia (primarilyIndonesia and Malaysia), aregion with the worlds third

largest tropical forests.Much of this expansion hasoccurred at the expenseof virgin tropical forests,which has resulted inincreased GHG emissionsand biodiversity loss.

Mars uses only 0.2 percentof global palm oil supplies,and we purchase 100percent of our palm oil

from RSPO-certi ed sourcesvia the mass balanceprogram. Building on this,we are working toward fullysustainable and traceablesources of palm oil thatare free of deforestation,limit expansion on carbon-rich peatlands, and rejectthe violation of human andlabor rights.

In 2013, we surveyed oursuppliers to understandtheir commitment tocerti cation standards(RSPO and other certi cationprograms), and their plansto establish full supplychain traceability.

In early 2014, we developed

a sourcing charter thatrequires all our suppliers toestablish fully sustainableand traceable palm oilsupply across all theiroperations by the endof 2015. We are alsopartnering with The ForestTrust (TFT) to help millsand plantations buildtraceability, and verifythat their fresh-fruit bunch

supply, including supplyfrom smallholders, meetsMars sourcing charter.These measures willhelp ensure a genuinelysustainable pipeline whereall material is sourced fromcompanies whose mills onlyproduce sustainablepalm oil.

Learn more about ourupdated Palm Oil Policy .

60%of pet dogs and catsin the developed worldare fed by Mars Petcareproducts (includingROYAL CANIN), whichinclude fish and

fish by-products.

5. Food and Agricultural Organizationof the United Nations, The State ofWorld Fisheries and Aquaculture, 2012, available at: http://www.fao.org/docrep/016/i2727e/i2727e00.htm

http://www.mars.com/palmoilhttp://www.mars.com/palmoilhttp://www.fao.org/docrep/016/i2727e/i2727e00.htmhttp://www.fao.org/docrep/016/i2727e/i2727e00.htmhttp://www.fao.org/docrep/016/i2727e/i2727e00.htmhttp://www.fao.org/docrep/016/i2727e/i2727e00.htmhttp://www.fao.org/docrep/016/i2727e/i2727e00.htmhttp://www.fao.org/docrep/016/i2727e/i2727e00.htmhttp://www.fao.org/docrep/016/i2727e/i2727e00.htmhttp://www.fao.org/docrep/016/i2727e/i2727e00.htmhttp://www.fao.org/docrep/016/i2727e/i2727e00.htmhttp://www.mars.com/palmoilhttp://www.mars.com/palmoil


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100 % 2013 10 %

2013

32 % 2013

TARGETS:

We have ambitious targets to source100 percent of ve key raw materialsusing more sustainable approaches.For packaging, our short-term targetsfocus on reducing material use andon increasing the recycled content

and recyclability.

30 %2013

73 % 2013

10 %2011

0 %2013

84 %2013

100% of cocoa from certi ed sources -an industry rst.

100% of palm oil from certi ed sources. 100% of sh and seafood products fromsustainable sources.

100% of coffee beans from certi ed sources.

100% of black tea from certi ed sources.

Increase the level of recycled content inour packaging by 10%.

In 2013, our packaging contained 41.2% recycled content, a 20.2% increase fromthe 2007 baseline.

Target achieved in 2011.

Reduce packaging weights by 10% from a2007 baseline.

Design our packaging to be100% recyclable or recoverable.

In 2013, our packaging weight increased by 4.1% from the 2007 baseline.

Learn more about the actions we are taking to achieve the 10% target.




Learn more about the actions we aretaking to achieve the 100% target.

Learn more about the actions we aretaking to achieve the 100% target.

Learn more about how we achievedthe 100% certi cation target in 2013.

2020 TARGET

2015 TARGET

2013 TARGET (not achieved)

2015 TARGET (achieved)

2015 TARGET (achieved)

2020 TARGET

2015 TARGET

2015 TARGET



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The year bywhen scientistsbelieve global

fish populationsmay collapse .

NORTH AMERICABased on

1,000 tonnes

EUROPEBased on

6,000 tonnes

ASIA PACIFIC*Based on

16,000 tonnes

8%SUSTAINABLE

IN 2013

70%SUSTAINABLE

IN 2013

10%

47%

70%

2011

2012

2013

OUR COMMITMENT

sustainable fish and fishby-productsby 2020.

100%-30%

WHOLETUNA USAGEIN 2012/13

2011

2012/13

100%

70%

2011

2012

2013

2%

4%

8%

We will only use fish from wild stocks that are not threatened, or are responsibly farmed.We will replace all wild whole fish and fish fillets with fish by-products and responsibly-farmed

seafood products. We will develop and use alternatives to marine fish ingredients.

OUR PROMISE

REPLACE

REDUCE

REASSURE

2050



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In thisSection:

Our Approach 31

Sustainable in a Generation 32

Progress in 2013 33

Targets 33

Sustainable in a GenerationProgress Charts 35

Our Operations

We are determined togrow our business withoutexpanding our environmentalfootprint. Decoupling growthfrom environmental impactsis essential to ensuring ourgrowth is a force for good.We are using our influenceand our investments tosupport the development ofsustainable projects that willhave long term benefits forour operations and beyond.

Health & Wellness Supply Chain Operations Brands Working at MarsIntroduction Our ApproachMARS Principles in Action Summary 2013 Operations


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Our Operations

Mars growth benefits communitiesin which we operate by creating new

jobs and supporting local suppliersand small businesses. Through ourcommunity engagement and Associatevolunteering, we make a positivedifference to the lives of those wholive and work near our facilities.Pursuing sustainability and reducingthe negative impacts of our operations is a natural extension of our vision tocreate a mutuality of benefits for allthose involved in our business.

Our goal is to reduce our env ironmental impacts,even as our production volumes increase.

We have the most controlover the impacts of ourfactories and of ces (whichwe call our operations).Working from robustscienti c data, we have setambitious goals to makeour operations Sustainablein a Generation (SiG).

OUR APPROACHOur goal is to reduce ourenvironmental impacts,even as our productionvolumes increase. We aim toeliminate fossil fuel energyuse and GHG emissions fromour operations by 2040. Weare working on similar long-term commitments for waterand waste.

These ambitious goals,implemented through theSiG program, re ect ourbelief that decreasing

carbon-based energy andwater use are essential tomitigating the consequencesof climate change andsecuring our sustainabilityas a business. Similarly,by driving a zero wasteto land ll agenda, weare emphasizing wastespotential as a valuable

resource.

Because we outsourceproduct transport, its impacton our GHG emissions andlocal air quality is notincluded in our SiG programand targets. We are,however, applying a similarapproach to eliminatingtransport-related GHGemissions by 2040.

Learn more about how weare reducing emissions fromproduct transport .

CASE STUDY

Mars will becomethe first major foodbusiness to generateelectricity fromrenewable sourcesequivalent to allelectricity used byits U.S. operations

Mars, in partnership withSumitomo Corporation,is building a new 200megawatt wind farm Mesquite Creek Wind in Lamesa, Texas. Theprojects annual generationwill exceed 100 percentof the electricity needs ofMars U.S. operations.

This output enoughto power 61,000 U.S.households is equivalentto 24 percent of Mars,Incorporateds total factoryand of ce carbon footprintand 12 percent of our globalenergy use. The project,

which is scheduled to golive in the rst quarterof 2015, is an importantcomponent of our strategyto meet our ambitious goalof eliminating fossil fuel useand GHG emissions from ouroperations by 2040. Withthis 20-year contract, Marswill be making the biggestlong-term commitment torenewable energy use of anyfood manufacturing businessin the United States.

The Mesquite Creekdevelopment will haveenough capacity to supportMars projected growthin the U.S. market, sothat we will be able toremain at 100 percentrenewable energy, even

as we continue to investin new operations andinstallations. It is anotherexample of how weare making long-terminvestments to tackleglobal challenges suchas climate change.

Health & Wellness Supply Chain Operations Brands Working at MarsIntroduction Our ApproachMARS Principles in Action Summary 2013 Operations
http://www.mars.com/global/about-mars/mars-pia/our-operations/sustainable-in-a-generation.aspxhttp://www.mars.com/global/about-mars/mars-pia/our-operations/sustainable-in-a-generation.aspxhttp://www.mars.com/global/about-mars/mars-pia/our-operations/sustainable-in-a-generation.aspxhttp://www.mars.com/global/about-mars/mars-pia/our-operations/energy-and-climate/product-transport.aspxhttp://www.mars.com/global/about-mars/mars-pia/our-operations/energy-and-climate/product-transport.aspxhttp://www.mars.com/global/about-mars/mars-pia/our-operations/energy-and-climate/product-transport.aspxhttp://www.mars.com/global/about-mars/mars-pia/our-operations/energy-and-climate/product-transport.aspxhttp://www.mars.com/global/about-mars/mars-pia/our-operations/energy-and-climate/product-transport.aspxhttp://www.mars.com/global/about-mars/mars-pia/our-operations/energy-and-climate/product-transport.aspxhttp://www.mars.com/global/about-mars/mars-pia/our-operations/sustainable-in-a-generation.aspxhttp://www.mars.com/global/about-mars/mars-pia/our-operations/sustainable-in-a-generation.aspx


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NEWTECHNOLOGY:

We are developing anddeploying innovations toimprove the ef ciency of ouroperations. For example,we are now using advancedmodeling techniques that haveled to more ef cient coatingprocesses for confectioneryproducts.

RENEWABLEENERGY:

We are exploring the use ofrenewable energy when buildingnew operations, and installingrenewable energy sourcesat existing operations. Forexample, several Mars facilitiesin Brazil use hydropower froma supplier to meet their energyneeds, and in the U.S., we arebuilding a wind farm that willgenerate enough electricity to

power all our U.S. operations.

Learn more about our renewable energy program in the case study on theprevious page .

SUSTAINABLE IN A GENERATION

OPERATIONALEFFICIENCY:

Improving our operationalef ciency is the most immediateand cost-effective way to reduceour GHG emissions. Acrossour business, we are drivingdown energy use, water use,and waste through changes inAssociate behavior and smarteruse of our existing equipment.We engage our Associatesthrough local SiG workshops

where they can share bestpractices and identifysegment-speci c improvementsto help meet targets.

CAPITALEFFICIENCY:

We are investing in technologyand processes that use lesspower, leading to more ef cientequipment and proce

Documents

Mars 'Principles in Action' Highlights 2013 en Report