Mars, Incorporated, in partnership with strategic consultancy Guidehouse and founding members PepsiCo and McCormick & Company, Monday announced the addition of nine new global brands to the Supplier Leadership on Climate Transition (Supplier LoCT), a consortium created to accelerate action throughout the supply chains in the march towards net-zero greenhouse gas (GHG) emissions.
Established in April 2021, the coalition has 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, General Mills, Keurig Dr Pepper, Mondelēz International, Nestlé, Restaurant Brands International, and Yum! Brands. Brand members of Supplier LoCT sponsor the participation of their suppliers in a series of Guidehouse-led instructional seminars on developing a GHG footprint, setting a science-based target, adopting GHG abatement measures, and disclosing progress.
It comes as Mars makes progress to mobilize 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 mobilizing its largest 200 suppliers to maximize impact and catalyze change through its broader supply chain.
“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,” Barry Parkin, Chief Procurement & Sustainability Officer at Mars, Incorporated said.
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.