Mars Launches $250 Million Sustainability Fund

Interconnected snack, food, and animal care conglomerate Mars has set history in the quest for environmental innovation by introducing a new $250 million investment vehicle—the Mars Sustainability Investment Fund (MSIF). Intended to tackle the most critical issues of sustainability in its value chain, the fund is a milestone in the way big consumer goods firms are repositioning themselves for climate resilience and sustainability.

The fund will invest both directly and indirectly through other investment funds. Its biggest areas of focus cover the whole Mars operating and supply chain universe, from ingredient sourcing and the environmental impact of its packaging. By making this strategic financial investment, Mars is aiming to make a tangible difference in food and pet care product production, packaging, and consumption, establishing itself as a climate leader among consumer goods companies.

From Mars' view, the MSIF is to be driving innovation in three large categories. The first of these is Advanced Agriculture, which it aims at technologies and practices that lower emissions from crop and animal inputs and maximize the resilience of agricultural production. Since most of Mars' emissions footprint is derived from raw material extraction, the investments of the fund in the sector are likely to drive the uptake of intelligent and regenerative farm practices, water conservation projects, and low-carbon fertilization schemes.

The second is Innovative Ingredients and Raw Materials. The program will discover and scale up healthier or lower-carbon alternatives to conventional ingredients. These include substitute plant-based, bioengineered, or local that save on transportation emissions and provide greater supply chain transparency. It is also part of Mars' overall ambition to reimagine the nutritional profile of its brands while not diminishing on quality or taste.

The third focus area is Next Generation Packaging, where the company will focus on efforts to transition away from traditional plastic packaging. Investments will be directed towards innovation in recyclable, compostable, or biodegradable materials, and circular-based designs to facilitate reusability and material recovery. Flexible plastics, an ever-green environmental bane, are a specific area of focus of the innovation effort of the company.

This record-breaking fund raising came as the company released its newest "2024 Mars Sustainable in a Generation Report," which reported on Mars' ambitious sustainability targets. Among the highlight-line achievements is the reduction of greenhouse gas emissions in its value chain by 16.4% against its 2015 baseline. This record is so significant because Mars continues to grow its business, proving that the company has decoupled economic growth from environmental decline.

Mars credits this advance to a combination of strategic alliances, especially in agriculture, and an effort to create deforestation-free supply chains. Cocoa, soy, and beef—three of the most carbon-intensive ingredients on the Mars shelf—have been brought under heightened scrutiny, with investment flowing into enhanced traceability, transparency, and sustainability from farm to factory.

The firm restated its 2023 commitment to reduce carbon emissions from its entire value chain by 50% by 2030, with a sweeping plan that encompasses increasing use of renewable energy—not just in its buildings but in its upstream suppliers and downstream customers as well. Mars is also restructuring supply chains to avoid deforestation, helping farmers shift to regenerative agriculture, and transforming its logistics network to lower emissions and boost efficiency.

Mars CEO Poul Weihrauch stressed the two-fold role of such investments as posing not just risk reduction potential but also generating long-term value. "I am pleased to see our ongoing capability to decouple our business growth from our carbon footprint while, at the same time, investing in innovation and backing start-ups that will be developing new solutions," he added. "These are priority areas in a bid to achieve substantial milestones towards minimizing exposure to future environmental risks, and ultimately convert it to profitability and competitiveness.".

In another indication of integrating sustainability into its business model, Mars has also extended its climate action governance model. As of 2024, 2,000 senior company leaders have their long-term pay linked to greenhouse gas reductions, compared to 400 previously. The company is also embedding climate metrics into variable remuneration plans, investment plans, and M&A, reflecting a growing convergence of financial and environmental performance.

Mars’ Chief Sustainability Officer Alastair Child reiterated the company’s commitment to immediate, measurable action rather than distant promises. “We’re firmly committed not just to targets in a distant future but to delivering progress now,” he said. “In order to do this, societal impact goals have to be built into business decision making. And in order to continue to improve year by year, we require systemic change in all our supply chains, and the involvement of governments, industry and farmers alike.

Mars recognizes that climate and sustainability solutions cannot be solved in isolation. Through the fund, the company aims to invest in technology along with forming coalitions and partnerships in facilitating faster change. As the company drives towards its 2030 climate goal, it is positioning itself not only as a good corporate citizen but also as an enabler in shaping the future of food systems sustainability.