01 Sustainable development is the mission of our generation

Since the 17 Sustainable Development Goals were formally adopted at the United Nations Sustainable Development Summit in 2015, countries around the world have responded positively and spared no effort to meet global challenges to achieve the goals. At present, the global human race is experiencing a critical stage, with only six years left before the scheduled deadline for the realization of these goals.

Today is the 53rd World Environment Day. This year, China has set the theme of World Environment Day as "Comprehensively Promote the Construction of a Beautiful China", calling on all sectors of society to actively participate in building a beautiful China and promoting modernization in which people and nature coexist in harmony. We have long reached a consensus that sustainable development is a must-answer question, not just a one-day plan, but also a long-term action. Among them, companies, especially pioneers in the industry, play a key leading role--Mars, a family-owned company with a century-old heritage, uses the "Sustainable Development Plan for One Generation" as a starting point, hoping that through the efforts of our generation, we can usher in a future where all things will flourish and grow forever for generations.

02 Taking "The Future Starts Now" as the Corporate Vision

Many mature companies tend to integrate sustainable development into their vision and business model. Mars, which takes "The Future Starts Now" as its corporate vision, is an example. In response to global challenges, Mars upgraded its "Sustainable Development Plan for a Generation" in 2017. This plan mainly focuses on three areas: protecting the health of the earth, helping human development, and building a harmonious home for people and pets. In 2023, Mars announced that it would increase its investment in the plan to US$2.7 billion to create mutual value for stakeholders in the value chain. So far, the "Mars Sample" of sustainable development has gradually taken shape.

Protecting the Health and Prosperity of the Earth

Protecting the health and prosperity of the earth starts with saving resources. This is not only China's basic national policy, but also can effectively alleviate resource shortages and environmental pressures and achieve high-quality development. Therefore, every step of the enterprise from production to transportation must be lower carbon and more energy-efficient.

In 2022, Mars China's Beijing Huairou Chocolate Factory was awarded the "National Green Factory" certificate issued by the Ministry of Industry and Information Technology, which means that the factory has achieved intensive land use, harmless raw materials, clean production, waste resource utilization, and low-carbon energy. In addition, through ten water-saving technical reforms, the factory saves 116,000 cubic meters of water each year, equivalent to the annual living water consumption of 1,000 families, and has therefore won the honorary title of "Beijing Water-Saving Unit" many times.

(Solar panels at Mars China's Beijing Huairou Chocolate Factory)

(The factory was awarded the "National Green Factory" certificate)

(The factory was awarded the honorary title of "Beijing Water-Saving Unit")

In the field of transportation, to achieve China's "dual carbon" goals, it is necessary to seize the key breakthrough point of heavy trucks. According to data from the International Energy Agency¢Ù, China's total carbon emissions in 2022 will be about 12.1 billion tons, of which the transportation sector accounts for about 10.4%. Among them, carbon emissions from road freight account for more than 60%, while carbon emissions from heavy trucks account for more than 85% of road freight. At present, Mars Wrigley and Royal Pet Food have taken the lead in using new energy electric heavy trucks. More than 50% of Mars Wrigley's logistics distribution network has used electric vehicles, and Royal Pet Food has a total of 22 electric vehicles for the management and construction of sustainable supply chains.

(Mars Wrigley will use the first new energy electric heavy truck in March 2024)

(Royal Pet Food will take the lead in using new energy electric heavy trucks in 2023)

Under the wave of sustainable consumption, how companies can drive consumers to participate more actively and efficiently has become a core issue. As a company that directly faces consumers, Mars has proposed a "Packaging Sustainability Plan", promising to gradually achieve 100% recyclable, reusable or compostable global product packaging, so that changes can happen in packaging that can be seen everywhere. The plan focuses on three major areas, including: reducing unnecessary packaging and reducing packaging pollution from the source; redesigning to make packaging more conducive to recycling; advocating a circular economy and supporting closed-loop construction.

At present, Mars has successfully developed and launched a series of packaging that is conducive to recycling. For example, in 2023, M&M'S® officially launched the first degradable composite paper packaging in China¢Ú. Snickers® and Dove® chocolates have also used paper bowl packaging, and their bowl lids will be replaced with recycled plastic (rPET) by the end of 2023. When environmental protection becomes a daily routine and continues at the lowest cost, the circular economy can truly circulate.

(Sustainable packaging of Mars China's products (M&M'S® degradable composite paper packaging, Snickers® and Dove® chocolate paper bowl packaging))

Helping mankind flourish

The future of sustainable development is the future of common prosperity, and strengthening rural characteristic industries and increasing the disposable income of rural residents have laid the foundation for achieving common prosperity. To help people in the value chain improve their living standards, Mars improves upstream rights and interests by understanding the needs of different groups, and provides development opportunities for groups such as women and start-up youth.

¡°This kind of peanut has achieved a balance between quality and health, and is very popular.¡± More than a decade ago, Mars supported the launch of high-oleic peanut breeding in China. Through joint development and promotion with relevant departments, the planting area of high-oleic peanuts in China has been greatly increased, helping farmers increase production and income. In 2019, the high oleic peanut sustainable project won the China Agriculture, Animal Husbandry and Fishery Harvest Award, and Mars also transformed from an incubator to a beneficiary. The M&M"S peanut chocolate product, which uses domestic high oleic peanuts for the first time, was launched.

(High Oleic Peanuts)

(The high oleic peanut sustainable project won the China Agriculture, Animal Husbandry and Fishery Harvest Award)

People often say that "women hold up half the sky", and this is even more true in rural areas. The changes of every rural woman will bring about changes in the family and ultimately promote changes in the countryside. In March 2023, Dove joined hands with the China Rural Development Foundation to officially launch the Dove "Her Academy" project in China, providing women with customized training courses such as homestay services, folk cultural activities and promotion of local specialties. Miao Jiagu, who was born and raised in Qiandongnan Prefecture, Guizhou Province Yang Shuangzhi is a representative. Now she stays in her hometown and regards embroidery as a career. She runs a homestay and does embroidery live broadcasts, realizing the integration of interest, work and life. By the end of 2023, more than 5,000 Chinese rural women have successfully graduated from Dove's "Her Academy".

(Dove "Her Academy" student--Yang Shuangzhi)

Promote the welfare of people and pets

Care about humans, and care about humans' best friends. According to the data of the "White Paper on China's Pet Industry 2023-2024 (Consumer Report)", China's pet market has maintained rapid growth, and dogs and cats are still the preferred pets. When more dogs and cats enter the family, the city should also become their home.

Since 2018, Royal China has been for six consecutive years In 2019, Mars Pet Nutrition launched the "Take Your Pet to the Hospital" project. This year, Royal China joined hands with the Shanghai Municipal Government to donate 300,000 free physical examination coupons to the police stations in all streets and towns in Shanghai, the Municipal Civilized Pet Raising Demonstration Station, and the Municipal Xiaojudeng City Stray Cat Management Center. The event also entered more than 600 Chinese pet hospitals to provide professional free physical examination services for pet owners.

(Royal China held the sixth "Take Your Pet to the Hospital" project)

In 2019, Mars Pet Nutrition launched the "Pet Enjoy Trendy Life" project, using professional knowledge and scientific concepts in the pet field, working with the government, community grassroots, public welfare organizations, commercial real estate and other business partners to promote the construction and development of a harmonious community environment for people and pets. Now, everyone can bring their beloved pets and experience the convenience brought by pet-friendly business districts in some cities.

(Mars Pet Nutrition "Pet Enjoy Trendy Life" Project)

In addition, stray animals should also have their own place to return to. Starting from September 2022, Alkena, a brand of Mars Champion Pet Food, will donate pet food to Baoen Temple in Shanghai every month to care for stray animals. By the end of 2023, Alkena has donated nearly 10 tons of Alkena cat and dog pet food.

(Alkena donates pet food to Baoen Temple)

The ideal city is a more inclusive city, but the premise of a happy life is peace of mind. Ensuring food safety and reducing food waste are the basic driving forces for sustainable development. According to the Food and Agriculture Organization of the United Nations, 14%¢Ü of the world's food (worth about US$400 billion) is lost in the global supply chain. As a global food manufacturer, Mars has increased its investment in preventive management, just to take the lead, sustainably reduce the risk of food waste, and protect the bottom line of food safety.

It is reported that mycotoxins can be detected in up to 80%¢Ý of common crops, which greatly increases the risk of food waste. In order to effectively solve this problem, Mars Global Food Safety Center cooperated with Cambridge University and the United Nations World Food Program to develop and verify the mycotoxin prediction model. This model can use weather and climate data to help reduce food waste.

(Mycotoxin Prediction Model)

03 The mission of one generation is for the common future of several generations

Since coming to this land, Mars has been deeply involved in the Chinese market for 35 years, always caring about the good life of people and pets. The mission of one generation is for the common future of several generations. This is the answer Mars handed in on the question of sustainable development.

Reference sources:

¢ÙThe data are all from the International Energy Agency's "Carbon Emissions 2022" report

¢ÚUnder industrial composting conditions, more than 90% is degraded within 6 months (data comes from a third-party test report), decomposing into non-toxic products such as water and carbon dioxide

¢ÛNews source: "This American century-old food giant, Beijing production line uses Chinese peanuts for the first time"

¢ÜData source: United Nations Food and Agriculture Organization 2019 data

¢ÝData source: Paper Eskola et al., 2020

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