To address its largest emissions source (Scope 3), Mars goes beyond farmer engagement by re-engineering its products. Scientists use a dedicated IT system to reformulate pet food, optimizing for both animal nutrition and environmental impact by prioritizing lower-impact proteins like poultry over beef, tackling the problem at the R&D level.
To counter political backlash against ESG, Mars' CEO reframes sustainability as a fundamental business imperative. For a food company reliant on agriculture, climate change directly threatens crop viability and affordability. This makes environmental action a matter of operational resilience and risk management, completely separate from political debate.
While a major contributor to emissions, the agricultural industry is also more vulnerable to climate change impacts than almost any other sector. This dual role as both primary cause and primary victim creates a powerful, intrinsic motivation to innovate and transition from a "climate sinner to saint," a dynamic not present in all industries.
To operationalize its commitment to sustainability, Mars initially moved responsibility for the function into its Finance department. This organizational design choice ensured that sustainability investments and progress were reviewed with the same scrutiny and integrated into the same planning cycles as the company's core financial P&L.
Over the past 50 years, Americans have reduced per capita beef consumption by a third by substituting it with chicken. This seemingly simple dietary shift has inadvertently cut more emissions than any other climate action before the rise of solar power, highlighting the massive climate leverage in reducing beef production and its associated land use.
To ensure accountability for societal impact, Mars directly links 40% of its CEO's compensation to non-financial metrics, including sustainability goals. This structure challenges the conventional, finance-only incentive models prevalent in public companies and hardwires long-term purpose into executive performance.