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.
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.
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.
With societal and political issues increasingly entering the workplace, the most critical leadership skills have shifted. Mars' CEO argues that empathy—to listen and connect with employees on a human level—and self-awareness—to navigate sensitive topics without personal bias—are now paramount for maintaining a civil and productive corporate culture.
Contrary to the belief that private ownership removes short-term pressure, Mars' CEO argues that long-term, generational goals are achieved by delivering strong short-term results. He uses the analogy of a marathon, which is ultimately won by running a series of sprints, highlighting that both time horizons are critical for sustainable business.
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.