Why Mars and PepsiCo are partnering to mobilise suppliers

20 April 2021

Mars has joined forces with PepsiCo and McCormick in a coalition to mobilise suppliers on climate action.

The Supplier Leadership on Climate Transition (Supplier LoCT) coalition has also partnered with sustainability consultancy Guidehouse to provide suppliers with knowledge, resources and tools to develop climate impact reduction plans.

In its first year the programme will focus on helping suppliers understand the foundations of greenhouse gas (GHG) reductions in their own businesses, including core knowledge of how to calculate their own GHG footprints and to set their own science-based targets.

The move comes as the UK government announced it would step up efforts to cut GHG emissions with a new target for a 78% reduction by 2035.

Mars hopes to build on progress in cutting emissions in its own operations. Renewable energy now accounts for over half (54%) of the firm’s global electricity use.

It said it was on track to meet its target, initially set for 2025, to cut over 42% of emissions in direct operations within the next three years.

By actively engaging suppliers on climate action, Mars aims to accelerate progress towards its commitment to reduce GHG emissions across its extended value chain by 27% by 2025 and 67% by 2050.

Barry Parkin, chief procurement and sustainability officer at Mars, said: “As the world looks to rebuild from the pandemic, this will be a critical year in altering the trajectory of climate change. It's never been more vital for global businesses and their suppliers to come together and protect the health of our planet and global communities for generations to come.

“Mars is making strong progress to cut emissions in our direct operations and will hit our 2025 target well ahead of our goal. However, with our extended supply chain accounting for over 94% of our emissions, it's crucial we also partner with our suppliers to drive broad transformations and mitigate our collective impact on climate change. 

“By forming this partnership and actively engaging our suppliers on sustainability, we hope we can drive truly meaningful, global impact."

The new coalition comes as part of the Mars #PledgeforPlanet initiative. As part of the initiative Mars is engaging its largest 200 suppliers to maximize impact throughout its supply chain. So far 23 of its major suppliers have set science-based targets or joined the RE100, an initiative committing to 100% renewable energy. 

Britt Harter, Guidehouse's sustainability lead, said: “Emissions reductions are now essential and global supply chains contain some of the most significant and difficult-to-reduce emissions. While organisations across the world have made bold commitments to science-based climate reductions, most are struggling to deliver progress and the clock is ticking.”

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