Mars, the provider of snacks, food, and pet care products, has announced the creation of the Mars Sustainability Investment Fund (MSIF), a $250 million initiative aimed at supporting companies that develop solutions to key sustainability challenges within the industry. The fund will allocate capital through investment funds and direct investments, focusing on sustainability issues across Mars’ value chain, including ingredient sourcing, product health, and circular packaging solutions.
The fund’s investment areas include “Advanced Agriculture,” which targets technologies to reduce emissions from agricultural inputs, “Innovative Ingredients and Raw Materials,” focusing on alternatives with lower emissions or improved health benefits, and “Next Generation Packaging,” emphasising packaging circularity with recyclable or compostable substitutes for flexible plastics.
Coinciding with the fund’s launch, Mars released its “2024 Mars Sustainable in a Generation Report,” highlighting a 16.4% reduction in greenhouse gas emissions from its value chain since 2015. The report attributes much of this progress to partnerships that promote innovative agricultural practices and deforestation-free supply chains.
In 2023, Mars committed to halving carbon emissions across its entire value chain by 2030. To achieve this, the company has outlined several initiatives, such as transitioning to renewable energy, redesigning supply chains to prevent deforestation by enhancing transparency of ingredients like cocoa, soy, and beef, and collaborating with farmers on regenerative agriculture.
Mars CEO Poul Weihrauch expressed satisfaction with the company’s ability to separate business growth from its carbon footprint while investing in innovation. He emphasised the importance of systemic change to reduce environmental risks and gain competitive advantage.
As part of its 2023 objectives, Mars plans to integrate climate action into its governance and business strategies, including executive remuneration plans. The company has expanded the number of leaders with compensation tied to greenhouse gas emissions reductions from 400 to 2,000 by 2024.
Mars Chief Sustainability Officer Alastair Child reiterated the company’s commitment to immediate progress rather than distant targets, stressing the need for societal impact goals to be embedded in business decisions. He called for collaboration across supply chains with governments, industries, and farmers to achieve large-scale change.