Mars, Incorporated, in partnership with sustainability consultancy Guidehouse, has formed a new coalition, the Supplier Leadership on Climate Transition (Supplier LoCT), to mobilize suppliers on climate action. 

The partnership aims to drive industry-wide movement by providing suppliers with the knowledge, resources and tools to develop their own climate plans to reduce their impact on the planet.

In its first year, the program 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. Mars is a founding partner of Supplier LoCT, with global businesses PepsiCo and McCormick also joining and enrolling suppliers to take part.

Mars has made steady progress to cut emissions in its own operations by switching to renewables – which now accounts for 54 percent of the company’s global electricity use. It is now on track to reach its interim 2025 target early. Within the next three years, Mars will have cut over 42 percent of emissions in direct operations (compared to a 2015 baseline), building momentum towards net-zero in direct operations by 2040.

“As the world looks to rebuild from the pandemic, this will be a critical year in altering the trajectory of climate change,” said Barry Parkin, chief procurement and sustainability officer at Mars, Inc. “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 percent 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.”

It 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. 

Mars is focused on engaging its largest 200 suppliers to maximize impact and catalyze change through its broader supply chain. So far, 23 of its major suppliers have set science-based targets or joined the RE100, and Mars has since engaged another 30 suppliers to set their own climate targets or to enroll in the Supplier LoCT program.

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 percent by 2025 and 67 percent by 2050.