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Module: Introduction CDP 2017 Climate Change 2017 Information Request CDP Mars Module: Introduction Page: Introduction CC0.1 Introduction Please give a general description and introduction to your organization. Mars, Incorporated has been a private, family-owned company for more than 100 years. Headquartered in McLean, Virginia, USA, with annual net sales of more than $35 billion, we have more than 85,000 Associates in 80 countries. Being a private, family-owned company gives us the freedom to invest in the long-term and to make sustainable business decisions that will help us endure for generations to come. We have a diverse global business comprised of six segments: Petcare, Chocolate, Wrigley, Food, Drinks, and Symbioscience. Our portfolio of brands offers quality and value to consumers around the world and includes PEDIGREE®, WHISKAS®, M&M’S®, SNICKERS®, MARS®, EXTRA®, ORBIT®, UNCLE BEN’S® and many more. Our business objective, first expressed by Forrest E. Mars, Sr. in the early 1930s, is the manufacture and distribution of food products in such a manner as to promote a mutuality of services and benefits among all stakeholders. This objective, and the stewardship of the Mars Family, inspire us to put our Five Principles – Quality, Responsibility, Mutuality, Efficiency and Freedom – into action every day to make a positive difference for people and the planet through our performance. CC0.2 Reporting Year Please state the start and end date of the year for which you are reporting data. The current reporting year is the latest/most recent 12-month period for which data is reported. Enter the dates of this year first. We request data for more than one reporting period for some emission accounting questions. Please provide data for the three years prior to the current reporting year if you have not provided this information before, or if this is the first time you have answered a CDP information request. (This does not apply if you have been offered and selected the option of answering the shorter questionnaire). If you are going to provide additional years of data, please give the dates of those reporting periods here. Work backwards from the most recent reporting year. Please enter dates in following format: day(DD)/month(MM)/year(YYYY) (i.e. 31/01/2001). Enter Periods that will be disclosed Fri 01 Jan 2016 - Sat 31 Dec 2016 CC0.3 Country list configuration Please select the countries for which you will be supplying data. If you are responding to the Electric Utilities module, this selection will be carried forward to assist you in completing your response. Select country Argentina Australia Austria Belgium Brazil Canada China Colombia Czech Republic Egypt France Germany Hungary India Select country Indonesia Japan Kenya Lithuania Mexico Netherlands New Zealand Philippines Poland Russia South Africa Spain Taiwan Thailand United Arab Emirates United Kingdom United States of America CC0.4 Currency selection Please select the currency in which you would like to submit your response. All financial information contained in the response should be in this currency. USD($) CC0.6 Modules As part of the request for information on behalf of investors, companies in the electric utility sector, companies in the automobile and auto component manufacturing sector, companies in the oil and gas sector, companies in the information and communications technology sector (ICT) and companies in the food, beverage and tobacco sector (FBT) should complete supplementary questions in addition to the core questionnaire. If you are in these sector groupings, the corresponding sector modules will not appear among the options of question CC0.6 but will automatically appear in the ORS navigation bar when you save this page. If you want to query your classification, please email [email protected]. If you have not been presented with a sector module that you consider would be appropriate for your company to answer, please select the module below in CC0.6. Further Information Module: Management Page: CC1. Governance CC1.1 Where is the highest level of direct responsibility for climate change within your organization? Board or individual/sub-set of the Board or other committee appointed by the Board CC1.1a Please identify the position of the individual or name of the committee with this responsibility Job title of the individual or name of the committee: The highest level of direct responsibility for climate change is the Technology Committee of the Mars Board. Description of its/their position in the corporate structure: The Technology Committee is a Committee of the Board of Directors of Mars, Incorporated. Richard Ware, Vice President Manufacturing, Research & Development and Procurement, is Secretary of the Committee and a direct report of the President of Mars, Incorporated. CC1.2 Do you provide incentives for the management of climate change issues, including the attainment of targets? Yes CC1.2a Please provide further details on the incentives provided for the management of climate change issues Who is entitled to Incentivized The type of benefit from these performance incentives incentives? indicator Comment Emissions A percentage of the bonus for our top 100 executives is based on performance against a target for Corporate executive Monetary reduction target reducing absolute Scope 1 and 2 greenhouse gas emissions from our operations. The emissions team reward reduction goal and the percentage of the bonus linked to this is the same for all executives. Emissions A percentage of the bonus for our top 100 executives is based on performance against a target for Chief Executive Monetary reduction target reducing absolute Scope 1 and 2 greenhouse gas emissions from our operations. The emissions Officer (CEO) reward reduction goal and the percentage of the bonus linked to this is the same for all executives. Emissions A percentage of the bonus for our top 100 executives is based on performance against a target for Monetary Executive officer reduction target reducing absolute Scope 1 and 2 greenhouse gas emissions from our operations. The emissions reward reduction goal and the percentage of the bonus linked to this is the same for all executives. Emissions A percentage of the bonus for our top 100 executives is based on performance against a target for Chief Operating Monetary reduction target reducing absolute Scope 1 and 2 greenhouse gas emissions from our operations. The emissions Officer (COO) reward reduction goal and the percentage of the bonus linked to this is the same for all executives. Emissions A percentage of the bonus for our top 100 executives is based on performance against a target for Chief Financial Monetary reduction target reducing absolute Scope 1 and 2 greenhouse gas emissions from our operations. The emissions Officer (CFO) reward reduction goal and the percentage of the bonus linked to this is the same for all executives. Further Information Page: CC2. Strategy CC2.1 Please select the option that best describes your risk management procedures with regard to climate change risks and opportunities Integrated into multi-disciplinary company wide risk management processes CC2.1a Please provide further details on your risk management procedures with regard to climate change risks and opportunities How far into Frequency To whom are the future of Geographical areas considered Comment results reported? are risks monitoring considered? We assess the feasibility of renewable energy when selecting factory sites, and of using renewable energy at existing sites. Our Responsible Sourcing program involves risk assessments for thousands of tier-1 suppliers that cover climate change vulnerability, to help evaluate risks and due Our risk management process applies to our diligence measures. Our water stewardship manufacturing operations in 32 countries across six program prioritizes sites in water-scarce areas, Board or continents, to tier-1 suppliers, and origins for key including those predicted to become water stressed individual/sub-set of commodities. At operational level, we evaluate due to climate change. In some cases, we work the Board or climate risks including weather-related and Annually > 6 years with insurance brokers to assess site flood risks. committee geophysical risks at all manufacturing sites. We For instance, sites highly likely to flood have appointed by the manage risks relating to tier-1 suppliers through our purchased temporary flood barriers. We are Board Responsible Sourcing program. Assessments of our reducing risks from rising energy costs and supply value chain-wide emissions take into account origin insecurity by increasing energy efficiency and countries for key raw materials. reducing reliance on fossil fuels. Making agriculture more sustainable is key to protecting our business. Around 85% of our scope 3 emissions and 80% of total GHG emissions relate to the production of the goods and services we purchase, agricultural raw materials in particular. CC2.1b Please describe how your risk and opportunity identification processes are applied at both company and asset level Company Level: most of our environmental impacts occur outside of our direct operations. Planetary Boundaries is a highly-respected analysis that identifies 10 environmental impacts and the point at which each one will cause catastrophic harm to human wellbeing. We used this concept, coupled with information about our value chain, to identify three broad areas of environmental impact most relevant to our business: land use, water use, and greenhouse gas (GHG) emissions. We have worked with various external partners and used peer-reviewed, publicly-available data to quantify these impacts throughout our value chain. We identify risks and opportunities in our supply chain based on a comprehensive assessment of our GHG emissions. This combines supply chain data including raw material type, origins and tonnes purchased, with external data from the UN Food & Agriculture Organisation and Ecoinvent, among others. We carry out further impact assessments for raw materials at risk. For example, in 2016 we ran a pilot project to investigate the climate change resilience and adaptive capacity of rice growers in Spain over the next 10-20 years, to inform our sourcing strategies.
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