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Our Path to Sustainability 2010 Review T His Might Be Our First Review but It Is Not the Start of Our Path to Sustainability

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Our Path to Sustainability 2010 Review T His Might Be Our First Review but It Is Not the Start of Our Path to Sustainability our path to SuStaINaBIlIty 2010 Review t his might be our first review but it is not the start of our path to sustainability ABOUT THIS REvIEw 06 Sourcing more sustainably This is Mars Drinks’ first sustainability review. it describes our approach and performance in managing our social, economic and environmental impacts and covers all our operations worldwide. we describe our performance throughout our value chain: how we source our ingredients; the design, manufacture, use and disposal of our products 12 r educing and packaging; and how we encourage our our operational Associates to get involved. impacts we do not discuss the impact of our drinks on health and nutrition or the experience of working at Mars, as this information is available in the Mars, incorporated Principles in Action Summary, available at www.mars.com. 16 Developing responsible Because this is our first review, we have products included additional information about our company and its history, to introduce ourselves and provide some background to the way we do business. The data provided includes all Mars Drinks operations for the 2010 calendar year, unless 20 Supporting otherwise stated. environmental data from our customers our factories is accurately recorded, and we estimate the data for our offices. in addition, some case studies and examples include information from 2009 and 2011, to better illustrate our approach. 22 Engaging our in 2011, we changed the way we measure our associates performance in some areas. we are unable to report 2010 data against these new measures, as we were not recording the required information at the time. instead we report against our previous metrics in these areas. A mESSAgE fROm OUR PRESIdEnT w elcome to Mars Drinks’ first i am excited to be joining Mars Drinks as we sustainability review. in it we describe begin the next leg of our sustainability journey. our progress so far on our path to we made good progress against the targets we set in 2007 for 2010, and we also learned sustainability, and discuss where we a great deal. As a result, we have changed the expect that journey to take us next. way we measure some of our impacts and set clearer targets for driving positive change. This may be our first review, but 2010 was For example, we now measure the proportion certainly not the beginning of our journey. of ingredients we buy, rather than product we we hope the following pages will demonstrate sell, that comes from certified sources. This our longstanding commitment to doing the has enabled us to set clear, ambitious targets right thing for our business and its stakeholders. for buying 100% of our key ingredients from Our parent company, Mars, incorporated, sources certified by our partners the Rainforest ™ ™ was built on the belief that, to endure, Alliance Certified and UTZ CeRTiFieD – by 2013 a business must create shared benefits for for coffee and 2015 for tea and cocoa. all its stakeholders. This belief is enshrined in One sizeable challenge – one we will not shy our principle of mutuality, one of Five Principles away from – will be to meet and maintain our that have guided the way we do business for targeted performance levels during a period decades. For us, making our business more of planned double-digit sales growth. Achieving sustainable is a natural next step in putting absolute reductions in operational energy our Principles into action. use and greenhouse gas emissions while Taking action to become more sustainable our business grows rapidly will not be easy. is not a choice for a company like ours. And even once 100% of our key ingredients it is our responsibility and will ensure our are coming from certified sources, we will 1bn + business is successful in the long term. have to work hard to ensure that remains the case as the volumes we need increase. dI R nKS SERvEd Becoming more sustainable involves creating positive social impacts for all those involved in our Please read on to learn more about our business, while minimizing our environmental path to sustainability, our past successes, impacts and delivering economic performance. lessons learned and future plans and targets. importantly, it also means integrating all three Most of all, please join me in recognizing the 35,000 + elements into each aspect of our daily business, efforts of our Associates, whose passion busi nESS cUSTOmERS from how we source our ingredients to the and commitment are the driving force design, manufacture, use and disposal of our behind our achievements, and who make products and packaging. we can only achieve a difference to people and the planet through this by building a thorough understanding of their performance at work each day. sustainability among all our Associates and Yours, 650 + inspiring them to apply this knowledge in their work. A SSOciates andrew Clarke President, Mars Drinks September 2011 01 ABOUT mARS OUR HISTORY Mars, incorporated is one of the world’s largest in 1911, Frank C. Mars began making candies 1911 privately owned companies. with more than in his Tacoma, washington kitchen. in the 65,000 Associates worldwide, it has business 1920s, his son, Forrest e. Mars, Sr., joined him segments producing pet foods, family meals, and together they launched the MiLKY wAY® gums and confections and, of course, hot drinks. bar. in 1932, Forrest, Sr. moved to the United Kingdom and founded his own company Mars Chocolate based on his philosophy of a “mutuality of ® ® ® ® ® 1955 MarS , SNICkErS , twIx ,E DoV , M&MS benefits” for all stakeholders. This vision Mar k S DrIn S SIngle Serve® serves as the foundation of the Mars, a ™ S at l Erra CoffEE roaStErS , incorporated we know today. u thE BrIGht tEa Co.™,E and DoV ®/ Galaxy® are served through the flaVIa® SfrE h rElEaSE™ system Forrest, Sr. began to expand and diversify and available in uk, uSa, Canada, the company. in 1935, Mars entered the pet france, Germany, Japan, China, 1973 Singapore, Malaysia, taiwan, care industry, and in 1943 we entered the food korea and australia business. in the United Kingdom in 1955, Four klIx® Square – now Mars Drinks – began to provide h ot and cold drinks vending machines, beverages for office workers. And in the late serving leading third-party brands in 1960s, Forrest, Sr. acquired the business uk, Germany and france founded by his father, and named the combined Mars Food 1983 ® ® ® company Mars, incorporated. The business Mars, Incorporated Mars, uC N lE BEN’S ,lI Do M o , SEEDS of ChaNGE continued to expand and, as recently as 2008, Mars Petcare became a leader in gum and confections with ® ® ® ® p EEDIGrE ,Sa whI k S ,B ShE a , r CESa the purchase of the wrigley Company. Mars Symbioscience Global headquarters in Maclean, Virginia, Virginia, Maclean, in headquarters Global ci rku®,aI CoCo V a™ During this time, Mars Drinks continued to grow ® Wrigley and innovate. in 1973, KLiX became the first 2010 orI B t®, Extra®, r StarBu St®, S SkIttlE ® ever in-cup drinks vending machine, with all the ingredients ready mixed in the cup to ensure each drink is of a consistently high standard. THE mARS fIvE PRIncIPLES A decade later, we introduced MARS DRinKS Mars, incorporated was built on the belief that, SingLe SeRve®, an innovative system that to endure, a business must create shared makes hot drinks using fresh ground coffee benefits for all its stakeholders, including and leaf teas in single packs. Associates, customers, suppliers and communities. Throughout Mars, we are Mars Drinks expanded into europe, with guided in doing this by applying Five Principles: operations in France and germany, before Quality, Responsibility, Mutuality, efficiency launching MARS DRinKS SingLe SeRve® and Freedom. we aim to put these principles in Japan in 1992 and the United States in into action every day to make a difference 1996, where we opened our second factory for people and the planet through our in west Chester, Pennsylvania. business performance. Today, KLiX® provides well-known third-party Quality The consumer is our boss, quality brands including neSCAFe™ coffee, Pg tips™ tea is our work and value for money is our goal. and BRiTA™ filtered water in France,g ermany, Responsibility As individuals, we demand total and the UK. in the last quarter of 2010 in the responsibility from ourselves; as Associates, United States, we relaunched our own fresh we support the responsibilities of others. hot drinks available through the FLAviA® FReSh ReLeASe™ system with new brands ALTeRRA Mutuality A mutual benefit is a shared benefit; COFFee ROASTeRS™ eand Th BRighT TeA CO.™. a shared benefit will endure. we are introducing these new brands in the efficiency we use resources to the full, waste rest of our markets during 2011. nothing and do only what we can do best. Freedom we need freedom to shape our future; we need profit to remain free. 02 HOw wE dO BUSInESS Being a privately-owned company gives Mars, ensure we stay true to the values that made incorporated the freedom to take a long-term Mars, incorporated a successful global company. view. we can make decisions based on what’s best for all our stakeholders, rather than just we coordinate with other Mars segments to the short-term interests of shareholders. Our share resources and best practices and work approach is focused on creating lasting, mutual toward common goals. For example, we are benefits for our business and all those involved collaborating with other segments to align our in its success. sourcing programs in areas such as sustainable agriculture. we have a representative on the Throughout Mars, incorporated, we aim to Mars, incorporated Sustainability Leadership develop credible and effective strategies in areas Team and Sustainability working group, which as diverse as product development, operational develop company-wide sustainability policies efficiency and responsible sourcing.
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