Our Principles in Action: Responsibility and Sustainability at Mars Our Progress 2014/2015 Mars The global business and brand universe of Mars American family-owned company Mars, Incorporated is one of the world’s leading food manufacturers with top-selling brands including PEDIGREE, ROYAL CANIN, WHISKAS, M&M’S, SNICKERS, TWIX, WRIGLEY‘S EXTRA and UNCLE BEN’S. Many of its quality brands are also produced in Germany, where about 2,600 employees work for the company in its five business segments of Petcare, Chocolate, Food, Wrigley Chewing Gum & Confectionary and Drinks. PH Petcare Chocolate 413 HQ OPERATIONS IN 73 SITES Global HQ in McLean, Virginia, USA COUNTRIES 1911 11 Food Frank C. Mars made the first Mars candies in his Tacoma, Washington kitchen $ BILLION BRANDS More than 100,000+ $33bn net sales SUPPLIERS PRIVATE FAMILY-OWNED COMPANY Symbioscience Drinks Find more online: Five Principles: http://www.mars.com/germany/en/about-mars/the-five-principles-of-mars.aspx The Story of Mars: http://www.mars.com/germany/en/about-mars/history.aspx Business Segments: http://www.mars.com/germany/en/about-mars/mars-pia/business-segments.aspx 2 Mars Our Approach to Business and Sustainability Mars in a moment The company’s objective is the manufacture and distribution of Principles for a Better Company foodFive products in such a manner as to promote a mutuality of The and Marsbenefits Five Principles services among of Quality, Responsibility, Mutuality, Efficiency and Freedom are the foundation of our culture and approach to business. They all stakeholders. uniteE.us across cultures and generations. At the same time, they reflect the — FORREST MARS, SR., 1947 commitment of Mars as a family-run company that has the freedom to make long-term investments under consideration of economic, environmental and societal challenges, and then addressing these modern issues pro-actively. Quality is the uncompromising standard for our actions. Providing the highest quality is the top priority in all the work we do. This is guaranteed by a comprehensive and end-to-end quality management of our products. C H actions and an ethically sound Responsibility for their own OC sense of responsibility is what we expect from all of our associates. In return, we give them the necessary freedom of choice to take on responsibility. P E TC A R E AT E OL TOTAL Mutuality is theSALES basis for how we do business. Our goal is to achieve a mutual benefit for all stakeholders and not to pursue activities that come at the expense of our business partners. Freedom is what we need to shape our future; this requires running our business successfully so we can sustain our freedom. Sustainability for us means actively taking responsibility to solve the social and ecological challenges affecting us, and thus create lasting mutual benefits for our business and all our stakeholders. We want to achieve this by amplifying our positive social impacts, minimizing our environmental footprint and helping to create economic prosperity. Each of our business segments has put strategies and resources in place to manage their specific impacts on people and the planet, and contribute to areas such as health and wellbeing. Efficiency for us means toE Yuse resources to the full, waste F IGL O D focus on our Rstrengths. nothing Oand W Find more online: Our Approach to Business: http://www.mars.com/germany/en/about-mars/mars-pia/our-business-approach-understanding-sustainability.aspx Our Supply Chain: http://www.mars.com/germany/en/about-mars/mars-pia/sustainability-in-our-supply-chain.aspx Our Operations: http://www.mars.com/germany/en/about-mars/mars-pia/targets-and-progress.aspx Health and Nutrition: http://www.mars.com/germany/en/about-mars/mars-pia/health-and-nutrition.aspx Working at Mars: http://www.mars.com/germany/en/about-mars/mars-pia/working-at-mars.aspx 3 Mars Our Global Targets 2020 TARGET 2020 TARGET 2015 TARGET 2013 TARGET 2015 TARGET 100 % Cocoa from certified sources – as the first company worldwide 100 % Fish and fish derivates from sustainable sources 100 % Palm Oil from certified sources 100 % Coffee Beans from certified sources 100 % Black tea from certified sources 2 0 14 2 0 14 2013 100 % 10 % 2013 2 0 14 2013 2013 26 % 30 % 100 % 2 0 14 2 0 14 2013 73 % 32 % 36 % 32 % Health and Nutrition Our Operations 25 Percent Reduction GDA-Labeling NUTRITIONAL LABELING We will implement Guideline Daily Amount (GDA) nutritional labeling on the majority of our chocolate and confectionery globally by year-end 2013, and continue to roll out GDA labeling across our entire food portfolio* by year-end 2014. WATER Progress: 99 percent of our chocolate, confectionery and food items are now labeled with additional information on nutrition (Guideline Daily Amount, GDA).* 25 % Reduction We will reduce sodium levels in Mars Food products globally by an average of 25 percent by 2015, from a 2007 baseline (excluding products that already meet regionally agreed sodium targets). We will achieve this through participation in government initiatives and agreeing to voluntary reduction commitments in different regions. SODIUM Reduce water use around 25 percent by 2015 from a 2007 baseline. Progress: In 2013 we achieved our commitment to reduce sodium levels in our products all over the world by 25 percent. Progress: Water consumption has decreased by 15 percent between 2007 and 2014. 25 Percent Reduction Reduce direct fossil-fuel energy use and greenhouse gas emissions by 25 percent by 2015 and by 100 percent by 2040 from a 2007 baseline. FOSSIL FUEL Progress: Energy consumption based on fossil fuels was reduced by 9 percent, and greenhouse gas emissions by 5 percent between 2007 and 2014. Zero Waste We have set ourselves the target of completely eliminating waste to landfill by 2015. WASTE TO LANDFILL Progress: - Waste to landfill dropped 79 percent between 2007 and 2014. - 86 of our sites achieved zero waste to landfill in 2014. 10 percent Increase < 250 kcal per Portion By the end of 2013 we stopped producing chocolate products that exceed 250 calories per portion. CALORIES Not to advertise our products to children under the age of 12 or advertise on websites aimed at those under 13. Progress: In 2014, 36.7 percent of our packaging contained recycled material, compared to 41.2 percent in 2013. Nevertheless, we are still well above the 10 percent improvement from our starting point, and we expect similar results in 2015. 10 percent Reduction PACKAGING (Weight) Reduce packaging weights by 10 percent by 2015, from a 2007 baseline, regardless of business growth. Progress: Even though we are slightly behind schedule, we have learned some valuable lessons and continue to work on a reduction. 100 percent Recyclable Progress: In 2014, we delivered on this commitment 100 percent. * Chewing gum, bubble gum, breath mints, drops, dental pastilles and medicated confectionery are exempt from GDA labeling because they contribute a negligible amount of nutrients (per serving) to the diet. Also excludes gift /promotional items. Excludes herbs and spices and condiment packs that are too small label with GDA information as well as Mars Foodservice products. 4 (Recycled) Progress: 99.8 percent of our chocolate and confectionery products already met this target in 2014. Due to labeling regulations in Canada, some products remain above 250 calories per portion. We are looking into options to address this gap. No Advertising to Children ADVERTISING PACKAGING Increase the level of recycled content in our packaging by 10 percent by 2015, where possible given regulatory and food safety requirements. PACKAGING (Recyclability) Design our packaging to be 100 % recyclable or recoverable by 2015, where infrastructure exists. Progress: In 2014, 82.5 percent of our packaging was recyclable or recoverable. Mars Global case studies We have set ambitious sustainability targets, which we aim to achieve by taking many individual steps. As to how we do business globally, we will steadily contribute to making a difference to people, pets and the planet. This engagement is based on our Five Principles, uniting us across business segments, geographic boundaries, languages, cultures and generations. This brochure is meant to inform you about our targets, progress and ongoing global initiatives. As a company, we want to be measured by the progress we make. For more details and an overview of our commitments, apart from the following summary, see our complete global sustainability report on www.mars.com/pia. Reducing added sugars Mars wants to help consumers make the right choices for a balanced nutrition. That is why we endorse the recommendation by the world‘s leading health authorities to limit the intake of added sugars to no more than 10 percent of the total calorie intake per day. This is a goal also advocated by the World Health Organization (WHO), among others. Moreover, we also support the US Government proposal to include an ‚added sugar‘ commitment in the Nutrition Facts panel on all food packaging. In this way, Mars wants to make it easier for consumers to track the amount of added sugar in their meals, so they can make informed conscious choices. Today, Mars is already providing consumers with consistent nutritional information on all food, chocolate and confectionery products through extended GDA labeling. Oral health commitment Chewing sugar-free gum after eating and drinking promotes dental health - as confirmed by dental associations across the globe. Wrigley not only produces delicious chewing gum for oral care on the go, but is also actively committed to improving dental health globally. For example, through a grant from the Wrigley Company Foundation, the Phillipines Dental Association now has 100 new portable dental units for their oral care outreach program that treats nearly six millions patients a year. The Wrigley Company Foundation also awarded the children‘s rights organization ‚Save the Children‘ a USD 3.6 million grant to enable teaching more than 300,000 students and community members across six countries about better oral health practices. Apart from this engagement, Wrigley is also supporting independent dental research through partnerships with international organizations and institutes. Fighting malnutrition in Africa This year, Mars once again organized a panel discussion as part of the 65th Lindau Nobel Laureate Meeting, which focused on the question of how to sustainably feed a global population predicted to rise to almost 10 billion by 2050. In this context, Howard-Yana Shapiro, Chief Agricultural Officer at Mars Inc., introduced the ‚African Orphan Crops Consortium‘ (AOCC) that he is leading and Mars is supporting. This initiative is aimed at sequencing the genomes of 101 orphan crops in order to improve their yields, nutrient content and climatic resilience. Through these efforts, the consortium wants to sustainably address malnutrition in Africa. Promoting women in the cocoa sector Together with the International Center for Research on Women (ICRW) and CARE International, Mars is working on projects targeted at supporting women in cocoa-producing communities. These partnerships are part of the Mars ‚Women‘s Empowerment Plan‘ that specifically focuses on strengthening the role of women in the cocoa sector, both economically and socially. Helping women to gain access to loans and capital is at the core of this cooperation with CARE International. In addition, the ICRW will support Mars by measuring progress towards strengthening the role of women. Back in 2013, Mars already signed the ‚UN Women‘s Empowerment Principles‘, and is dedicated to strengthening the role of women in cocoa-producing communities, also as part of their ‚Vision for Change‘ initiative. 5 Mars Deutschland Our local case studies In order to meet our sustainability targets we are also involved through each of our company segments in a wide range of activities across Germany. On the following pages you will find examples of initiatives and projects that we have launched or expanded in the last few months, often working with partners from business, political and public sectors. „ Ekip“ committed to promoting health of migrants Mars in Germany supports „ekip - Werkstatt Gesundheitsförderung“, a national health promotion workshop together with Plattform Ernährung und Bewegung (peb - platform for nutrition and physical activity), Deutsche Sportjugend (German youth sports) and the Turkish community in Germany. In three workshops so far, experts and practitioners from the health promotion sector gathered to share their knowledge and experience. The focus is on compiling target-group success factors and developing tangible help for projects directly where the people live. As a founding member of the initiative Lale – iss bewusst & sei aktiv! (eat healthy & stay active), Mars has long been committed to helping improve overweight prevention among migrants in North-Rhine Westphalia. This commitment has been continued in the support of ekip. To find out more go to www.ekip-werkstatt.de. Engaging with seniors and families Under the motto ‚Mars is green‘, associates from Mars Chocolate recently planted fruit trees and berry bushes in the garden of Haus Maria-Hilf, a senior citizen‘s home in Viersen. And in the end, there was still enough time for personal contacts with the residents, who are already looking forward to the first harvest. As part of the global ‚Mars Volunteer Program‘, this activity kicked off a sustainable partnership with this local senior citizen‘s home, a partnership we expect to grow along with the new plants. Our long-standing collaboration with the local food charity organization Viersener Tafel e.V. was also continued. Last winter, Mars once again invited less fortunate families to a Christmas market for the needy, and for the 10th consecutive year, will also support the Christmas festivities in 2015. Dogs at work: Pedigree cooperates with the German Animal Welfare Association Dogs can have a positive influence on the work atmosphere in a company. They reduce stress and promote communication, besides build solidarity among associates. Nevertheless, not every dog is welcome in the office. That is why Pedigree together with the German Animal Welfare Association joined forces to remove barriers and promote the co-existence of people and pets at the workplace. They called on companies to activate a day of ‚Dogs at Work‘ to see for themselves how well the co-existence with dogs at the office can work. Symposium on quality assurance of animal-supported therapies A representative Forsa survey on the Mars initiative „Zukunft Heimtier“ (the future of pets) revealed that Germans are convinced that contact with dogs, cats and other pets as part of therapeutic treatments are good for people. But what about standards for using pets in these kind of therapies? Experts from 15 countries discussed this question at a symposium in the Verden Pet Center in July 2015. The scientists exchanged information about the current state of research and shared their results. This event marked another milestone in helping Mars make further progress towards quality assurance for animal-supported therapies. Carbon-neutral transport at ROYALCANIN® ROYAL CANIN® is taking their responsibility for people, pets and planet seriously, and is shipping all products carbon-neutral. By doing this, they want to keep their environmental impact as low as possible, while making a sustainable contribution to climate protection. By shipping products climate-neutral, we support the certified environmental management program (DIN ISO 14001) of our logistics partner and help preserve our nature. We are taking a stand for a better world tomorrow. 6 „ Ben’s Beginners“ inspires families Many families do not spend enough time cooking and eating together - yet more than 70 percent of us would like to have more time doing just that, according to a survey by „ Uncle Ben‘s in 2015. The Uncle Ben‘s initiative Ben‘s Beginners“, brings together people of all ages over pots and pans, inspiring ideas. At cooking events organized with trade partners, they experience how easy it can be to make a delicious meal. Moreover, in a nationwide contest the best snapshots from family kitchens will be rewarded with a cooking course. Feedback from participants reveals how important good nutrition is to them and how much fun it is to cook and eat together. With Ben‘s Beginners, Mars Food has made a global and sustainable commitment, strongly influenced by their vision: „ Better Food Today. A Better World Tomorrow.“ Improving dental and oral health The Wrigley Company Foundation has been supporting the Special Olympics in Germany since 2011. This non-profit foundation promotes the oral health initiative ‚Special Smiles‘, in both financial terms as well as with volunteers, thus contributing to a greater awareness for oral hygiene as part of the Healthy Athletes® health program. In March, 800 athletes with mental disabilities had the opportunity to receive dental check-ups and oral care consultation free of charge at this year‘s Special Olympics. This year, 50 Wrigley associates volunteered to support this initiative. Furthermore, the Wrigley Oral Healthcare program together with the organization Landesarbeitsgemeinschaft für Zahngesundheit Bayern e.V. is actively engaged in Oral Health Days in schools. THINK TWICE and don‘t give litter a chance Most of us know waste should be disposed of correctly. But we don‘t always think about it. That is why Wrigley has been campaigning for years to promote more awareness for correct waste disposal, and is committed to education and prevention of „ litter. Another example of their commitment is the school project Gib Abfall einen Korb“ (Don‘t give litter a chance), initiated by the Chewing Gum Division of the BDSI (Association of the German Confectionery Industry). This program educates teenagers on the importance of proper waste disposal, achieving a measurable change in behavior and attitude. At some point, also chewing gum, even with long-lasting flavor, has to be disposed of correctly. The easiest and best solution: wrap the chewing gum in paper and throw it in the waste bin once you are done chewing. That is why the new logo DENK WEITER (think twice) vividly reminds chewing gum lovers of its proper disposal. Since 2014, it can be seen on almost all chewing gum packs and displays in the trade. New Verden office concept Nowadays, less than 60 percent of our work consists of time at a desk: This is the basic idea behind the new design concept of the Mars Verden office. The open-plan office - one more aspect connecting us globally across all sites - was designed like a city with different neighborhoods. With its vastness, the ‚public market place‘ allows for communication in large groups. Apart from ultra-modern meeting rooms, alternative opportunities for spontaneous meetings were also created. The complete concept is rounded off by additional break-out areas to promote creativity among associates. The goal was having an office environment where all associates are able to optimally flourish and enjoy making their meaningful contributions to achieve mutual success. At the same time, Mars is presenting themselves as an attractive employer for future colleagues. 7 Mars Mars Deutschland at a glance • 2,600 employees from 43 nations at 5 sites • National turnover in 2014: EUR 1.8 billion Information and images: www.mars.de petcare • CEO: Tom Albold • Sites: Verden Operating since: 1960 Employees in 2014: approx. 1.100 Annual tonnage in 2014: 173.000 metric tons Minden Operating since 1982 Employees in 2014: approx. 90 Annual tonnage in 2014: 97.000 metric tons food drinks • Brands in Germany Petfoods: CESAR®, CHAPPI®, DREAMIES®, FROLIC®, KITEKAT®, PEDIGREE®, PERFECT FIT®, MY PERFECT FIT®, SHEBA®, TRILL®, WHISKAS® • Cat litter: CATSAN®, NATUSAN®, THOMAS® • CEO: Tomasz Pawlowski • Site: Viersen Founded: 1979 Employees in 2013: approx. 600 Annual tonnage in 2013: 50.000 metri tons • Brands in Germany AMICELLI®, BALISTO®, BOUNTY®, CELEBRATIONS®, MALTESERS®, MILKY WAY®, MINIATURES®, M&M´S®, MARS®, SNICKERS®, TWIX® • CEO: Matthew Austin • Site: Verden Employees in 2013: • Brands in Germany MIRÁCOLI®, UNCLE BEN´S®, EBLY® • CEO: Andreas Windler • Site: Verden Employees in 2014: • CEO: Malte Hoffmann • Site: Köln Employees in 2014: • CEO: Laurence Etienne • Site: Unterhaching Employees in 2014: approx. 50 • Brands in Germany KLIX®, FLAVIA® approx. 120 • Brands in Germany ROYAL CANIN® approx. 200 more than 400 www.royal-canin.de • Brands in Germany AIRWAVES®, EXTRA®, FIVE GUM® ORBIT®, SKITTLES® www.wrigley.de 8 Imprint: Mars Deutschland I Public Relations I Industriering 17 I 41751 Viersen [email protected] I www.mars.de Photo credits: © newart-graphics/Shutterstock, © ekip – Werkstatt Gesundheitsförderung, © cbs - photography ® Registered trademark of Mars, Inc. © Mars 2015
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