MARS Principles in Action Summary 2013 Introduction Our Approach Health & Wellness Supply Chain Operations Brands Working at Mars Contents

Principles in Action Summary 2013

www.mars.com MARS Principles in Action Summary 2013 Introduction Our Approach Health & Wellness Supply Chain Operations Brands Working at Mars Contents

Introduction

Reader’s Guide 03 Mars in a Moment 04 A Letter from the Office of the President 05 Our Stakeholders’ Views 07

Our Approach to Business 08 Health and Wellness 19 Our Supply Chain 23

Governance 10 Our Approach 20 Our Approach 24 Responsible Sourcing 11 Nutrition 21 Toward a Sustainable Our Approach to Sustainability 12 Developing Partnerships 21 Supply Chain 25 Defining Our Impacts 13 Progress in 2013 22 Progress in 2013 26 Addressing Our Impacts 15 Targets 22 Targets 28 Mars and Science 16 Sourcing Seafood Sustainably 29 Quality and Food Safety 17 Working with Others 18

Our Operations 30 Our Brands 38 Working at Mars 44

Our Approach 31 Sustainable Innovation 39 Our Approach 45 Sustainable in a Generation 32 Cause Marketing 40 Associate Demographics 46 Progress in 2013 33 Communicating Responsibly 41 The Mars Volunteer Program 47 Targets 33 Targets 41 Progress in 2013 48 Sustainable in a Generation Case Studies 42 Targets 48 Progress Charts 35

Reader’s Guide

We commission external Reporting Welcome to our 2013 Principles assurance of our reporting Scope and Data and data to give stakeholders in Action Summary, a review confidence that what we say Our Principles in Action is accurate, and to garner Summary covers the of our progress during the year recommendations for further global activities of Mars, improving our strategies Incorporated and its toward our business objective: and performance. business segments: Petcare, to create a mutuality of benefits Chocolate, Wrigley, Food, Our annual Principles Drinks, and Symbioscience. for all stakeholders. This report in Action Summary has It describes our performance been externally assured in the 2013 calendar provides examples of how we are by Corporate Citizenship year. Where appropriate, in keeping with the we include examples of putting our Five Principles of Quality, Accountability Assurance activities and case studies Standard (AA1000AS-2008). from other years to provide Responsibility, Mutuality, Efficiency Corporate Citizenship’s a more complete picture assurance statement of our work. and Freedom into action to make a details their review of our difference to people and the planet performance and reporting. Our most recent performance data is for the 2013 through performance. Selected environmental data calendar year in all cases. have been assured by Lloyd’s All environmental data for Register Quality Assurance, our factories is based on Visit the Mars website to learn Inc. (LRQA). actual figures, though data for some offices is estimated. more about our wider efforts Both assurance statements Estimates comprise no are available on our website. more than five percent of to improve health and wellness, the volume data provided for raw materials and sustainability and why Mars is packaging materials. such a great place to work. We measure all volumes in metric tonnes (1,000 kg), which we refer to simply as tonnes throughout.

Financial values are United States dollars (US$) unless otherwise stated.

MARS IN A MOMENT “The company’s objective is the manufacture We strive to do this by putting our Five and distribution of food products in such Principles into action every day to make manner as to promote a mutuality of services a difference to people and the planet and benefits among all stakeholders” through our performance.

– Forrest E. Mars, Sr. 1947

PH Petcare Chocolate

OPERATIONS IN

HQ 394 SITES 74 Global HQ COUNTRIES in McLean, Virginia, USA 1911 11 Frank C. Mars made the first Mars candies Food $ BILLION in his Tacoma, BRANDS Washington kitchen

More than 100,000+ $33bn SUPPLIERS net sales PRIVATE FAMILY-OWNED COMPANY

Symbioscience Drinks

TOTAL SALES PETCARE CHOCOLATE WRIGLEY

MORE THAN 90%

A Letter from the The suppliers and farmers in our value Office of the President chain derive benefit from our economic relationships and our partnerships to adopt more sustainable practices that improve quality of life, and safeguard valuable natural resources.

Almost every second of every day, someone For example, in 2014, we opened a new buys a Mars product. That might surprise Chocolate manufacturing plant in the U.S.. people. But, the fact is that we operate in 74 In doing so, we created more than 200 jobs. countries, have diverse consumer businesses In the past three years we’ve created similar in petcare, chocolate, gum and confections, opportunities around the globe by opening six food, and drinks, and make some of the best- new sites for Wrigley, Petcare and Chocolate loved brands in the world. Everyday consumers across China, Russia, and Saudi Arabia. choose our brands because they trust they will get the very best quality and value. In addition, across our communities in 2013, Mars Associates gave nearly 70,000 volunteer But earning trust as a business requires more. hours through our Mars Volunteer Program, positively impacting nearly 28,000 people Almost 70 years ago, Forrest E. Mars, Sr. and over 5,000 pets around the globe. clearly and simply set out his objective for Mars, Incorporated. His definition of success Addressing our Challenges was manufacturing and distributing our food products in a way that created a mutuality Of course, Mars is also facing substantive of benefits among all of our stakeholders. challenges in our efforts to be a sustainable He was a man ahead of his time. business. To that end, we focus our attention and long-term investment on Paul S. Michaels Since then, it has been our challenge to those areas of challenge that Mars shares Office of the President live up to this ambition, by putting our Five with society and where we can make a Mars, Incorporated. Principles; Quality, Efficiency, Responsibility, meaningful difference in driving positive Mutuality and Freedom into action in our change based on our resources and interactions and operations – and in the capabilities. As I’ve noted in previous years’ process generating genuine, mutual benefits publications, these include: reducing the for people, pets and the planet. environmental footprint of our operations, ensuring sustainable sourcing of our Mutual and Enduring Benefits ingredients and, looking at the role of our portfolio in addressing nutrition and obesity. Our consumers – both people and their pets – get both nutrition and pleasure We believe that collaboration is key to from our products. Our Associates thrive finding solutions to the challenges Mars and in an uncommon work place built on a society share. So, Mars programs are built commitment to collaboration, development on partnerships with Governments, NGOs, and responsibility. Our communities benefit academic institutions and industry peers. from our investments in our operations, We are, for example, working with partners the jobs we create and the difference that to build a comprehensive sourcing strategy Mars Associates make in their own home that will include impact-based targets, towns. The suppliers and farmers in our such as eradicating deforestation completely value chain derive benefit from our economic within our supply chain and improving relationships and our partnerships to adopt long-term economic conditions for the more sustainable practices that improve farmers we rely on for many of our inputs. quality of life, and safeguard valuable natural resources.

Wrigley’s U.S. team transformed two local parks in partnership with Keep Chicago Beautiful. Associates built raised flower beds, laid paths in the children’s garden, cleared debris, and restored two organic gardens that grow fruits, vegetables and native plants.

Another key goal is eliminating to have missed 2013 targets in Earlier this year, I announced my 100 percent of our operational certification of coffee, and we Our 75,000 retirement, planned for the end greenhouse gas emissions by 2040. are re-evaluating our packaging Associates make of 2014. I am very proud of the I’m pleased to say we have taken sustainability work streams. And, progress we’ve made while I was a big step forward on that through while we are close to bringing all our progress President. I am also very confident investment in a new wind farm our confectionery products down possible, as they that my successor, Grant F. Reid, in Texas. This wind farm has the below 250 kcal per serving, we work tirelessly will be fully committed to promise of generating electricity still have work to do there to fully to develop, refine advancing our progress. from renewable sources equivalent meet that goal. We’re working to all electricity needs of our U.S. hard to learn and improve from and implement As our company grows, so will operations, comprised of 70 sites, these missed opportunities. the strategies the social and environmental including 37 factories and 25,000 that are critical challenges it faces. We must Associates. In doing so, it represents In other areas, we can proudly to ensuring continually use our inherent the biggest long-term commitment declare real progress. In fact, we strengths – our Five Principles, our to renewable energy use of any recently launched a Global Food our success as expertise in areas like science and food manufacturing business in the Safety Center expected to open in a sustainable food security, our passionate and United States and we hope we will Huairou, Beijing, China, mid-to-late business. committed Associates, our network be joined by many others. 2015. The state-of-the-art food of external partners and our safety center will be the first of its freedom as a successful, private On the nutrition front, we continue kind for Mars and one of the first company – to live up to the mission to refine the profile of our products, facilities dedicated to food safety and purpose set by Forrest E. ensuring they can be enjoyed research and training in the region Mars, Sr. so many decades ago and as part of a balanced diet. This and the industry. carried forward by the Mars Family includes reformulating brands to and Mars Associates today. reduce sodium and unhealthy fats, Looking to the Future as well as expanding our offerings We sincerely believe that a to include more healthy options. Mars, Incorporated has taken some principled business can make At the same time, we are working big steps over the past 10 years. the world a better place and with governments and academic Exciting new developments in 2014 deliver long-term performance. institutions on food security and will accelerate this progress. Our We appreciate your interest in improving health and wellness 75,000 Associates make our progress understanding our business and our on a global scale. possible, as they work tirelessly to aspirations, and challenging and develop, refine and implement the collaborating with us, so that we We do not always achieve what we strategies that are critical to ensuring can be the business we want to be. set out to do. We are disappointed our success as a sustainable business.

6 © 2014 Mars, Incorporated and its Affiliates. All Rights Reserved. MARS Principles in Action Summary 2013 Introduction Our Approach Health & Wellness Supply Chain Operations Brands Working at Mars Our Stakeholders’ Views

In January 2014, we invited 11 The workshop focused on helping Stakeholders Attending external experts to give us their Mars develop an understanding our Deforestation perspectives and guidance on I have been struck of region and commodity-specific Workshop deforestation during a three- by how realistic issues relating to deforestation. day workshop. Participating and honest Mars We know from our own risk Mars Associates included our has been about assessments, as well as the work Jason Clay, Chief Agricultural Officer, Chief these issues and of external organizations such Senior Vice President, Sustainability Officer, our Vice as the Consumer Goods Forum World Wildlife Fund the contribution it President of Innovation, business (CGF), that the biggest threats to can make. Because segment representatives and forests lie in the beef, palm oil, Leslie Durschinger, it is a private members of our commodity paper and pulp, and soy supply Founder, Managing Director, procurement teams. company, it has the chains. Experts presented on these Terra Global Capital freedom to take a commodities as well as on The session improved generational view the legal, economic and social Jonathan Foley, our understanding of the and an opportunity factors influencing regional Director, Institute macroeconomic, social and to be very strategic. deforestation rates. on the Environment, demographic drivers of There is potential University of Minnesota deforestation, as well as potential for Mars to make Next Steps strategies for Mars to combat a major strategic James Griffiths, deforestation in our value chain. contribution Mars published its company-wide Managing Director, The lessons from the session Deforestation Policy in March 2014. Natural Capital, complementing also informed the development The policy is guided by our Five World Business Council for the efforts of other of our Deforestation Policy. Principles, and prioritizes the four Sustainable Development companies working raw materials that are aligned with Deforestation is a highly complex in this space over the CGF’s priority raw materials Lars Laestadius, issue that intersects with our the long-term. (beef, palm oil, paper/pulp and Senior Associate, material environmental and social soy), and where deforestation is a World Resources Institute impact areas. Its causes range from Nigel Sizer, material issue. Our procurement cutting down trees for products, World Resources teams are developing strategies for Daniel Nepstad, such as timber and pulp and paper, Institute implementing the policy for these Executive Director to clearing forests for agriculture. priority raw materials. and President, Earth Innovation Institute Forests serve as important Our stakeholders urged us reservoirs of carbon, and reducing to focus on high-impact, Janet Ranganathan, primary forest cover results If you are buying pragmatic solutions, and to Vice President for in increased greenhouse gas cocoa from areas articulate our vision and goals Science and Research, concentrations. Deforestation that are also being clearly. Given Mars’ leadership in World Resources Institute also affects local rainfall targeted for palm oil the cocoa supply chain, we were patterns, biodiversity, and people production, such as advised to build our approach Bastien Sachet, who depend on forests for their in Africa, you must to preventing deforestation by Director, The Forest Trust livelihoods. The challenge for Mars, leveraging our strengths, i.e., take the opportunity and the broader food industry, is using science-based strategies Frances Seymour, to go beyond the to eliminate deforestation within informed by practical experience. Senior Fellow, Center usual solutions and our supply chains, while tackling This external stakeholder input and for Global Development its underlying causes. take a leadership the practical knowledge gained role, because no from this workshop will be critical Nigel Sizer, other company is to informing our future strategies Director, Global Forest Initiative, working there with in this area. World Resources Institute such intensity. Lloyd Timberlake, Bastien Sachet, Writer, Environment and sustainable development The Forest Trust

Our Five Principles of Quality, Responsibility, Mutuality, Efficiency and Freedom are the foundation of our culture and our approach to business. They unite Our Approach us across geographies, languages, cultures and generations. to Business

In this Governance 10 Section: Responsible Sourcing 11 Our Approach to Sustainability 12 Defining Our Impacts 13 Addressing Our Impacts 15 Mars and Science 16 Quality and Food Safety 17 Working with Others 18

8 © 2014 Mars, Incorporated and its Affiliates. All Rights Reserved. MARS Principles in Action Summary 2013 Introduction Our Approach Health & Wellness Supply Chain Operations Brands Working at Mars Our Approach to Business

Mars’ approach to business is guided by our Five Principles of Quality, Responsibility, Mutuality, Efficiency and Freedom. In 1947, Forrest E. Mars, Sr. expressed his goal to build a business that creates a “mutuality of benefits” for all stakeholders. Through our Principles, we are committed to his vision, and to growth that is responsible and mutually beneficial.

The Five Principles unite all Mars Associates, from factory floor to our offices to the salesman on the street. They connect us across geographies, languages, cultures and generations.

The first Mars candies were made increasing our environmental Associates to amplify our positive in a kitchen in Tacoma, Washington footprint. In particular, Mars is As a private, social impact beyond our value in 1911. Since then, we have grown concerned with reducing our family-owned chain – for example, by investing in into a company working across greenhouse gas (GHG) emissions company, Mars scientific research and sharing our 74 countries, delivering over 116 and the impacts of our land and findings publicly to drive sustainable brands to our consumers. We are water use. Our many challenges has the freedom practices within our industry. owned by the Mars family, and the include improving the economic to seek long- Five Principles remain core to our opportunities associated with our term solutions Our performance is not perfect; culture and decision-making. growth more universally that are based we have missed our targets in some and tackling the problems of areas such as coffee certification. Our growth brings many benefits malnutrition and obesity. Given our on our Five We are working hard to learn to our stakeholders. Our more commitment to Mutuality, these Principles and and improve from these missed than 75,000 Associates work for a concerns are important for Mars; our are informed opportunities so that we can collaborative and forward-thinking future success is integrally connected by collaborative make quick progress. Driven by our business that nurtures diversity to our ability to make a positive Principles and our commitment to and intellectual curiosity. Our impact on people and the planet. partnerships partnership, we will continue to commitment to creating mutual and science. work with all our stakeholders to benefits generates economic As a private, family-owned company, address the challenges we share opportunities for the communities Mars has the freedom to seek with society. where we operate, including the long-term solutions that are suppliers and farmers in our value based on our Five Principles and Read more about Our Approach chain. Our consumers benefit from are informed by collaborative to Business on the Mars website. our brands, from the nutritional partnerships and science. Our value of our food products and the ambitious goals aim to minimize moments of joy derived from our the environmental footprint of our chocolate to the oral care benefits operations, and we are working to of sugar-free gum and the high improve the social and economic quality products and services that prosperity of farmers in our supply keep pets happy and healthy. chain. We are innovating to enhance the nutritional content of our We know that to grow responsibly we products. Mars is also leveraging Watch The Story of Mars animation online. have to expand our business without the skills and expertise of our

Governance

The Five Principles ground our decision-making and unite our Associates across geographies, languages, cultures and generations. FIVE PRINCIPLES

Board of Directors

Global Mars Leadership Team

Mars Associates

QUALITY RESPONSIBILITY MUTUALITY EFFICIENCY FREEDOM

Our objective as a company is to create a mutuality of benefits for all of our stakeholders through our operations

GOVERNANCE Mars has globally consistent whether they are new to the 2011. It includes 10 workplace positions, policies and company or already have a standards that meet or Mars, Incorporated is governed standards across all successful career at Mars. exceed International Labour by a Board of Directors who aspects of public policy. We also require Associates to Organization guidelines. are members of the Mars undergo issue-specific training family, and who receive advice Learn more about Mars’ to support compliance with In 2013, this Code was updated from independent external Governance. the laws and regulations that to include and address emerging Board Advisors. govern our business operations industry challenges such as Business Integrity worldwide. For example, our migrant labor. The Code, Day-to-day operations at and Compliance Improper Payments Policy and our Responsible Sourcing Mars are directed by a global (IPP) and Competition Law program, apply to all our direct management team, led by the Our business practices are Compliance Program reaffirm and indirect suppliers. This Office of the President, Paul rooted in our Five Principles, our commitment to comply includes small raw material S. Michaels and Grant F. Reid. which define the essential with anti-corruption and producers, service providers, Reid. Our leadership structure culture of our corporation. competition laws around the manufacturers as well as is aligned along our six business Our Associates embed these world. The IPP, which includes multinational corporations. segments (Petcare, Chocolate, Principles in every aspect of guidelines for government All Mars suppliers are expected Wrigley, Food, Drinks, and their work, and the Principles relations and a tailored third- to align with, and are Symbioscience) in an effort nurture a culture of ethics party due diligence program, encouraged to exceed, the to continue to grow and and integrity throughout our also establishes robust review standards included in our Code. sustain improvement in organization, regardless of procedures for corporate gifts It also requires our suppliers company performance. which part of the world we and donations. to implement similar standards do business. in their own supply chains. We Learn more about We expect all those who we only work with those suppliers our management team. Training programs, such as do business with, such as our that demonstrate a commitment the “Essence of Mars” guide suppliers, to understand and to meet the standards included The Global Public Policy Group, all our Associates on how to comply with our policies. Our in our Code and operate in a led by our Vice President of incorporate our Five Principles Supplier Code of Conduct was manner that is compatible with Public Affairs, ensures that into everyday decision-making, developed and implemented in our Five Principles.

In 2012, we introduced a program to increase supplier alignment with CASE STUDY the Code. We also participate in the Leadership and Advisory Boards of AIM- Responsible Sourcing PROGRESS, an industry forum to enable Mars has steadily improved its rank, and promote responsible sourcing. from 8th in 2012, to 5th in 2013, and 4th In March 2014, Mars conducted the in 2014. This has been achieved through Learn more about our responsible third annual independent benchmarking demonstrated improvements in training sourcing program on Mars’ website. of its responsible sourcing program. Associates and suppliers, conducting The benchmarking, completed by supplier risk assessments, and more Maplecroft, a risk analytics and advisory robust targets and data reporting. company, compares Mars’ performance The launch of the Responsible Sourcing Governance for with 24 peer companies. We evaluate section on Mars’ global website has Sustainability at Mars areas such as supplier risk assessment enhanced reporting and disclosure and compliance management, on areas of responsible sourcing As a private family-owned company, the stakeholder engagement, Associate performance. We will continue to Mars family’s commitment to principled and supplier training and capacity work with our suppliers to responsibly growth is the catalyst for integrating building, transparency, and disclosure. source materials across our global sustainable value creation into everyday Beyond compliance, the benchmarking supply chain. business. For example, the Board’s focus also focuses on initiatives relating to on improving sustainability led Mars to poverty and human development. link long-term incentive plans for eligible executives with the achievement of strategic objectives, such as Associate engagement and the reduction of GHG emissions.

Mars’ sustainability strategy and policies are implemented and governed by the Sustainability Leadership Team (SLT), which is chaired by the Chief Sustainability Officer (CSO), and includes senior representatives from all major functions and business segments. A Sustainability Working Group, also chaired by the CSO, supports the SLT and is comprised of corporate- level sustainability directors, plus representatives from each segment.

Mars is working to improve the social and economic conditions of farming communities. Pictured: Tea harvesters in Kenya.

We want to do our part to put farmers first, improve the social and economic conditions of farming communities, and protect the environment.

OUR APPROACH This is our approach TO SUSTAINABILITY to sustainability:

At Mars, we are proud of our growth and the benefits it brings, ▪▪We prioritize the greatest but we are also concerned about impacts across our value chain. the impacts and vulnerabilities associated with our business that ▪▪We develop the most contribute to global challenges, scientifically credible metrics Mars Recognized for its such as climate change, water to measure these impacts. Sustainability Efforts scarcity, and deforestation. As a Principles-led company, we want ▪▪We set long-term targets. to do our part to improve the Mars was named Best Private Company social and economic conditions of ▪▪We track our progress by Ethical Corporation Responsible farming communities, protect the internally and publicly. Business Awards 2013. environment, and tackle resource scarcity. The scale of our business We set our targets based on what The Best Private Company category acknowledges gives us the necessary influence is needed to solve the overarching privately-held companies that have excelled to make a positive difference in problem, rather than what can be at embedding sustainable business practices solving these challenges. achieved in the short-term. across their operations. The award was in recognition of the progress we have made in reducing our energy use, water use and waste in our operations through the Sustainable in a Generation program, as well as our industry- leading work in improving cocoa sustainability.

DEFINING OUR IMPACTS

Social Impacts: Environmental Impacts: IMPACTS IMPACTS OF LAND USE OF WATER USE We have used stakeholder The majority of our environmental feedback and credible external impacts occur outside our direct Across our value chain, 97.8 According to the World Health tools and data sources, such operations. Planetary Boundaries percent of our total land use Organization, globally, one in as Oxfam’s model of planetary is a highly-respected analysis that is for growing raw materials, three people lacks sufficient and social boundaries, to identifies nine environmental with packaging (2.2 percent) clean water. Water is a vital identify the material social impacts and the point at which and factory use (0.05 percent) resource, and responsible water impacts that meet an urgent each one will cause catastrophic accounting for the rest. use is essential to our license societal need and are most harm to human wellbeing.1 We Unsustainable farming practices to operate. Our raw materials impacted by our business. used this concept and information have degraded soil quality, account for 96.6 percent of Our focus for 2014 is to about our value chain to identify ecosystems and biodiversity – our total water use, while develop associated strategies three broad areas of impact most a particular threat for key Mars packaging (2.6 percent) and to address these impact areas relevant to our business: land, crops in the tropics, such as factories (0.8 percent) account in our supply chain. water, and greenhouse gas (GHG) cocoa, coffee, tea and palm oil. for the rest. emissions. We work with various Learn more about how we external partners to quantify Learn more about our continuing Learn more about how we prioritize Mars’ social impacts. these impacts throughout our work to quantify our land use. quantify our water use. value chain – the first step in measuring and reducing them.

The Planetary Boundaries Model Safe operation levels Current operating levels Safe Unsafe

IM d) PA fie C ti TS n limate change a C OF u G q R t n Oc E e io ea E y t n N t lu a H o ol c O N p id U l S ( a if c ic E i a G m ti A e o S h n C E M I S S I O ) S N d t r S e i a f g t i o c n t i i d s n r d e p e a a p h h u o l e l p e q r s l t i t o i c o

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e ) y B g e r o l i a o r c d t y d i i c n v N u e o r b s s it w u o y r l l o f o l s h e a s p l s c ic o y m I h c e M P h c E P io S A B U C L ( R T a se E S nd u T O s er A F ys at W tem hw F LA ch fres O N ange Global S D CT US PA E IM 1. A set of nine planetary limits within which humanity can continue and thrive for future generations, developed by a group of 29 scientists from institutions around the world in 2009.

IMPACTS OF GREENHOUSE GAS EMISSIONS

The consequences of climate change, such as changing temperatures and rainfall patterns, floods, droughts, and the spread of pests and diseases, are putting whole habitats and communities at risk. This has serious implications for the supplies of key Mars crops, as well as for the farmers who produce them. Using the Greenhouse Gas Protocol, and other relevant data sources, we have calculated our 0.8 million tonnes: GHG emissions as follows: SCOPE Emissions from direct energy 1 and fuel consumption in Mars’ factories, offices and vehicles. 12 million tonnes: Emissions from purchased raw materials, 1 million tonnes: SCOPE packaging and other goods and services, SCOPE 3 plus other aspects of our value chain, such as 2 Emissions from purchased electricity transportation of raw materials and products, used in Mars’ factories and offices. business travel, Mars’ products in use and waste generated in our operations.

~6% ~8% ~86%

MALL

56% 19% 6% 2% 2% 1% 0.4% 0.4% Purchased Downstream Upstream Use of sold End-of-life Associate Capital Business goods and transportation transportation products treatment of commuting goods travel services and distribution and distribution sold products

To find lasting and scalable ways to reduce emissions, we are Learn more about our targets working with partners, universities and the scientific community. and performance on reducing scope 1 and 2 emissions.

Women provide nearly 45 percent of the labor on cocoa farms – investing in their training can lead to an improved quality of life for their families.

ADDRESSING We are also using our iconic brands Empowering Women in Our strategies OUR IMPACTS to educate, encourage and partner the Cocoa Supply Chain aim to help with consumers to champion good The first step to managing farmers causes and promote the purchase We are committed to empowering our impacts is to focus on our reduce their of products that are better for women in farming communities. operations (factories and offices), people and planet. Women provide nearly 45 percent where we have direct control. environmental of the labor on cocoa farms – Our ambitious Sustainable in impacts, Learn more about Mars’ Brands. investing in their training can a Generation program aims to improve their lead to an improved quality of eliminate GHG emissions from livelihoods and Mars respects human rights life for their families.2 Research our operations by 2040. throughout our value chain and shows that women often produce ensure a secure recognizes the principles of the a better product; helping women Learn more about Mars’ Operations. supply for Mars. United Nations Declaration of farmers leads to greater cocoa Human Rights and the International productivity and quality, and a We want to improve the Labour Organization’s Declaration more secure supply chain.3 In 2013, environmental sustainability of on Fundamental Principles Mars Chocolate signed the United our raw materials, boost farmers’ and Rights at Work. Our work Nations Women’s Empowerment incomes, and create mutual to combat the worst forms of Principles as a demonstration of benefits for their communities. child labor and trafficking in the our commitment to empowering In 2014, we will expand the number cocoa supply chain has been in women in the cocoa sector. of priority raw materials for which partnership with governments, Our new gender assessment of we will set targets that focus non-governmental organizations women cocoa farmers in Cote on mitigating our impacts. (NGOs) and industry. We share d’Ivoire – available on our website Our Deforestation Policy is the first the widely held view that child – provides a roadmap for how we step to tackling these impacts in labor, while abhorrent, is rooted in can enhance existing efforts to our supply chain and represents complex economic, political, and engage women through the Vision the early stages of our enhanced social issues; Mars must tackle this for Change program. sustainable sourcing strategy. problem in a similarly diverse and comprehensive way. 2. Laven, A.,& Verhart, N. (2012). Contributing Learn more about our sourcing to a sustainable cocoa sector: Improving strategy in Mars’ Supply Chain. Learn more about our policy the CLP Outreach to female cocoa farmers. Amsterdam: Royal Tropical Institute on child labor. 3. Chan, M.-K.,& Barrientos, S. (2012). Improving Opportunities for Women in Smallholder-based Supply Chains. Seattle: Bill and Melinda Gates.

MARS AND SCIENCE

At Mars, our decisions are based on our Five Principles, and are informed by science. Evidence of our contribution to scientific leadership can be found in our pursuit of research programs, policy development, product developments and ways of doing business throughout our value chain. This work is performed by a team of scientists within every segment of Mars, and often in collaboration with leading scientists and institutions. The quality and objectivity of this work is enhanced by advice received from the Mars Science Advisory Council, comprised of leading external and internal scientists in fields relevant to the Mars business. Here are some recent examples of our scientific work:

The Mars Advanced Research Institute (MARI) helped ▪▪ Mars scientists are developing new varieties of disease-resistant, develop the African Orphan Crops Consortium highly productive trees to improve cocoa productivity. (AOCC), an effort by African governments, NGOs, companies and international agencies to boost nutrition, particularly among rural African children, by improving the crops grown in their gardens. ▪▪In early 2013, we completed our participation in a In December 2013, the AOCC, co-chaired by Mars, Our work is pan-European research project known as FLAVIOLA. opened an institute in Nairobi to train African performed FLAVIOLA explores the cardiovascular health benefits scientists and technicians in using genomics to by a large of flavanols, a class of plant nutrients found in breed better food crop varieties. In addition to foods such as tea, grapes, and cocoa. The three- providing scientific leadership and guidance for this and diverse year program, funded by a grant from the European unique collaboration, MARI is helping to secure the community Commission, involved Mars as the only corporate funding, equipment and infrastructure required to of scientists member among several universities. The goal of this achieve the ambitious goals of the project. within every project was to use a comprehensive, evidence-based approach to the development of innovative food ▪▪Aflatoxin is released by a fungus found in grain segment of products that will improve health. crops all over the world, but particularly in Mars, and often the humid tropics. Working with IBM, we have in collaboration ▪▪Our scientists participated in the 2013 Lindau developed a model to understand the aflatoxin with leading Nobel Laureate Meetings on chemistry, attended by risks from various farms and ecosystems. Because 34 Nobel laureates and 625 top young researchers. we use grains in our products, this model has scientists and Mars co-sponsored the meetings, organized special benefits for Mars, but it will also help other institutions. sessions, and funded the attendance of 15 young companies purchase safer grains. scientists, known as the Mars Fellows, so they could benefit from the meeting’s mission of ‘connect, ▪▪Mars sources rice for our range of UNCLE BEN’S® educate, inspire’. rice products. We are encouraging our contract rice growers to adopt the alternate wetting and drying ▪▪In October 2013, the WALTHAM® Centre for (AWD) irrigation approach, based on our pioneering Pet Nutrition and the BANFIELD® Pet Hospital work with University of California, Davis, University co-hosted a three-day state-of-the-art nutritional of Arkansas and the USDA Agricultural Research sciences symposium, where nutritional scientists Service, which found that AWD saves water and and veterinary specialists participated in scientific reduces methane emissions from rice fields. We are sessions that bridged current human and pet care also exploring ways to use this method in Europe issues, including aging, healthy weight management and the Mississippi Delta, where current water use and macronutrient selection. for irrigation is unsustainable. ▪▪In 2013, the Wrigley Science Institute was ▪▪Our scientists and collaborators published a restructured to form the Wrigley Science Advisory comprehensive map of the genome of cacao Council (WSAC) to advance and share Wrigley’s (the tree that produces cocoa beans). We are using scientific research by establishing advisory boards the cacao genome sequence, developed in 2010, in and peer reviews as needed. The WSAC operates in efforts to develop new varieties of disease-resistant conjunction with the Mars Science Advisory Council, and highly productive trees that can contribute to providing guidance on research and quality issues, a more sustainable cocoa farming community. We are as well as access to a vast external network also investing in mapping the peanut genome, which that keeps the company abreast of advances, will allow breeders to develop higher-quality yields. opportunities and challenges.

QUALITY AND quality capabilities. We regularly We build FOOD SAFETY audit the manufacturers of the ingredients that we use in our long-lasting As the first of our Five Principles, factories, which helps us maintain and collaborative Quality is the basis of the brand high quality and food safety relationships loyalty and consumer trust in Mars, throughout the supply chain. with a small and has underpinned our growth Watch the Mars and Science for generations. We manufacture A number of notable food safety number animation online. most of our products ourselves, issues have impacted consumers of trusted and work closely with suppliers around the world and we believe suppliers. to maintain our exceptionally that industry has a crucial role Standardizing high standards. to play in helping emerging and developing markets identify Our Approach to Our Quality Management Process risks and solutions. We have Consumer Care (QMP) framework is a comprehensive collaborations with Global Alliance program that ensures we consistently for Improved Nutrition and the We depend on our consumers deliver high-quality and safe products. World Bank, and we are looking to for our success, and we have to We recently extended the scope of do more, especially in the area of understand their needs. Consumer our QMP, which includes all business mycotoxins. In 2015, we will open care plays a critical role in units and manufacturing sites, to our our new Mars Global Food Safety amplifying consumer feedback corporate unit, and have begun to Center in Huairou, China. We have within the business, and we have roll out the framework into all our a long and well-established history begun an ambitious program global market units. of collaboration and partnership to standardize our approach across the globe and consider the to consumer care globally. The We develop robust specifications for center an important investment in “Voice of the Consumer” project our ingredients and packaging, and food safety research and capability will provide clear, universal build long-lasting and collaborative building. Leveraging the skills and standards for listening to and relationships with a small number knowledge of a global network acting on consumer feedback so of trusted suppliers. Our Material of universities and research that we may continually improve Quality Management Standard institutions, this world-class facility our relationship with consumers guides our proactive and risk- will improve our ability to respond and identify ways to better based approach to supplier quality to new challenges in food safety meet their needs. assurance, and we partner with and quality, and support learning suppliers to help them develop their across the globe.

Quality and Food Safety are of the highest priority at Mars. Experts around the globe, like this Wrigley Quality Assurance Technician in Yonghe, China, ensure our consumers get our very best.

WORKING external experts, the Food Scientific WITH OTHERS Advisory Council (FSAC), on food CASE STUDY nutrition and sustainability. For As a private company, we work example, the FSAC was one of Improving Education closely with independent experts our leading partners in research to seek their input on issues focused on alternative wetting and Through Partnership relevant to our business. drying (AWD), a farming technique For example, our senior that saves water and reduces The Wrigley Company Foundation is working management team is guided by methane emissions from rice fields. with India’s largest non-governmental an advisory-only group of external Our collaboration with the FSAC education organization, Pratham, on an experts – Mars Global Advisors – on also aims to increase resistant initiative to help improve education in top the impact of major public policy, starch and other health benefits mint farming districts in the country. geopolitical, and macroeconomic in rice and whole grains, both of issues and trends on business which are known to add to their The three-year, $1 million educational partnership strategies and priorities. nutritional content. aims to provide quality education and address learning gaps faced by 40,000 children in 1,000 We are a founding member of the Wrigley collaborates with the villages. Pratham Books will also publish a series Business Platform for Nutrition Platform for Better Oral Health in of “mint story cards,” which will follow the Research (BPNR), a multi-stakeholder Europe to raise awareness on oral journey of mint from planting to end-product platform of 10 companies with disease prevention. In 2013, the use, helping children to read while also providing the Global Alliance for Improved Platform, of which Wrigley is a a real and relevant story for them to follow. Nutrition. BPNR seeks to define, fund co-founder and member, proposed and disseminate new research to 2020 targets that focus on “Education is one of the best ways to touch people’s improve nutrition in the developing improving data collection systems, lives,” said Michael Yeung, Wrigley Company world. Mars leads the Platform’s food prioritizing the creation of Foundation board member and President, Wrigley safety work stream, and our internal dedicated oral disease prevention Asia-Pacific, “and we are happy to create avenues food safety team works with external policies in Europe, and reinforcing for children in India to learn and grow through this experts to help frame the key oral care awareness among children Wrigley Company Foundation/Pratham partnership.” research areas that will help improve and teens. global food security. The partnership will encourage parents to take In 2013, we published our an active part in their child’s education. The We are a member of Bonsucro, a statement of intent on deforestation, program was piloted in 2013 in 300 mint farming global multi-stakeholder initiative which commits us to taking action villages, and will scale up over the next two years. with over 175 manufacturers, on deforestation, with a focus on Wrigley uses mint to flavor 70 percent of its gum retailers and farmer communities, the areas where we can deliver the formulas, including some fruit-flavored products. whose vision is to reduce the greatest benefit. We are a member environmental and social impacts of the Consumer Goods Forum of sugarcane production. Our aim (CGF), a global industry network is to work with Bonsucro to engage that brings together CEOs and senior with and learn from the broader corporate managers to collaborate industry to improve certification on sustainability and consumer and sustainability practices in issues. CGF has committed to the sugarcane sector. mobilizing its resources to achieve zero net deforestation by 2020. Mars has also joined BICEP (Business Our Chief Sustainability Officer is for Innovative Climate & Energy on the Forum’s Sustainability Policy), an advocacy coalition of steering team, and in 2013, our businesses committed to working Global Chief Customer Officer with policy makers to tackle became the co-chair of the climate change. We are among Operational Excellence steering the signatories of its Climate team. In January 2014, Mars Declaration, which brings together invited 11 expert stakeholders to a U.S. business and citizens in a workshop on deforestation to help commitment to ensure the country us develop a vision and strategy leads the world in a coordinated for our Deforestation Policy. effort to combat climate change. See page 7 for a summary Our business segments also work of the workshop. with external partners on issues Strategic partnerships and open dialogue with specific to their segments and More examples of how we work stakeholders help Mars address the issues and brands. Mars Food collaborates with others can be found in this opportunities we face as a business. with an international group of document and on the Mars website.

We make products that people enjoy eating, feel confident about feeding to their families and pets, and that contribute to overall health and wellbeing. As a global food company, we are committed to meeting the challenges of nutrition, Health and food security and food safety through research and collaborative partnerships. Wellness

In this Our Approach 20 Section: Nutrition 21 Developing Partnerships 21 Progress in 2013 22 Targets 22

19 © 2014 Mars, Incorporated and its Affiliates. All Rights Reserved. MARS Principles in Action Summary 2013 Introduction Our Approach Health & Wellness Supply Chain Operations Brands Working at Mars Health and Wellness

We are proud of our products – from healthy and nutritious food such as rice and sauces to indulgent pleasures such as chocolate. We strive to make products that not only taste great, but can also bring benefits to our consumers, whether through improved nutrition, improved oral health, or healthier pets.

Mars’ portfolio of brands includes a wide variety of products that consumers enjoy and feel confident about feeding their families.

OUR APPROACH By adding more nutritional We strive to give consumers through voluntary partnerships information front of pack and a wide choice of products, with government and non- Our challenge is to provide more ingredient statements allowing them to choose the governmental initiatives. affordable and tasty food than ever before, we are foods that best fit into their In 2012, we achieved our that helps feed the world’s building and maintaining own diet and lifestyle. We commitment to reduce sodium growing population, while consumer trust by making are continually improving the levels by 25 percent, from a at the same time addressing it easier for them to obtain nutritional content of our 2007 baseline. By December concerns about rising obesity nutritional information products without compromising 2013, all Mars food products levels. Our approach is based about our products. taste, convenience, quality or sold in the UK met the UK on helping people make the affordability. In recognition of Department of Health’s sodium right choices, improving We were the first company the increasing consumer demand targets. In France, UNCLE the nutritional value of our to commit to using Guideline for enjoyable options that fit BEN’S® was recognized by products, conducting scientific Daily Amounts (GDA) labeling into a balanced diet, Mars, the French government for research into nutrition, and on confectionery and food Incorporated has committed to reformulating its express rice working to promote active, products worldwide. Nutritional no more than 250 calories per and sauces to meet reduced healthy lifestyles. We work with information is prominently portion and reduced saturated sodium commitments. In partners to tackle challenges displayed on the front and fat in our confectionery brands. Australia, we reformulated a that we share with the wider back of our packaging. number of our products to meet food industry, such as improving For example, many of our the National Heart Foundation’s global food security, safety Improving Our Products popular brands, such as MARS®, Tick of Approval standard. and quality. TWIX®, SNICKERS®, MILKY WAY® Similarly, in South Africa, our According to the World and TOPIC® bars, have reduced ROYCO® brand launched the Helping People Choose Health Organization, over 1.4 saturated fats and meet country’s first low-fat sauce billion adults worldwide are our 250 calories per portion range, which has been endorsed Providing clear and meaningful overweight, with over 500 commitment in the UK, U.S., by the Heart and Stroke information about the million people classified as and other major markets. Foundation of South Africa. ingredients in our products obese. Obesity is a risk factor helps people make informed for heart disease, stroke and Mars has worked to improve 4. World Health Organization, “Obesity and overweight,” Last Updated March 2013, choices for themselves, type 2 diabetes.4 the nutritional value of http://www.who.int/mediacentre/ their families and their pets. its food portfolio globally factsheets/fs311/en/index.html

Nutrition We are We use scientific research – both in-house and through continually external partnerships – to improve nutrition for improving the people and pets, and to tackle food security issues. nutritional Improving food security and safety addresses a global challenge, and is crucial to protecting our reputation content of and the continued enjoyment of our products globally. our products Mars leverages the knowledge of international experts without to inform and guide us on the research we support or compromising conduct, including: taste,

® Food Security: Mars is working with industry convenience, Veterinarians at our BANFIELD Pet Hospital ▪▪ examine a small dog. Today, BANFIELD® partners and the Global Alliance for Improved quality or has more than 800 pet hospitals in the U.S., Nutrition to advance access to nutritional research affordability. providing high‐quality care for pets. for the developing world. We are collaborating with the University of Cambridge to discover new technologies that will progress our sustainability performance, boost our supplies of sustainable Developing Partnerships raw materials and enhance the nutritional profile of our products. We have taken a leading role in We work with governments, research institutions and the African Orphan Crops Consortium, which aims NGOs at the local and national level to promote health to map the genomes of some of Africa’s most and wellbeing in our communities. important food crops to boost yield, nutrition and resilience. We are also investing in a Global Food In the U.S., we support the “Let’s Move!” campaign, Safety Center in China, which will conduct research launched by First Lady Michelle Obama in 2009, which to gain early warning of new food safety threats encourages parents and children to make healthy and develop robust food safety and quality systems. choices. As a founding member of the Healthy Weight Commitment Foundation (HWCF), we are doing our ▪▪HEALTH IN GUM®: CAFOSA, the world’s leading part to reduce the calories in a range of our products. supplier of gum bases that is owned by Wrigley, has In 2014, HWCF announced that member companies had developed an innovative concept in the area exceeded HWCF’s 2015 goal of reducing 1.5 trillion of medicated chewing gum called HEALTH IN GUM®, calories from the marketplace by removing over 6.4 a ready-to-use powdered mix of gum base and trillion calories from their products. sweeteners that makes medicated chewing gum easier and more cost-effective for pharmaceutical In 2013, Mars Food continued its partnership with the companies to produce. For patients, medicated UK Department of Health through its support of the chewing gum can be a preferred alternative to latest Change4Life campaign – ‘Be Food Smart’ – with oral drug delivery, such as swallowing pills. UNCLE BEN’S® Ready to Heat Rice. Be Food Smart helps consumers make healthier meal choices, and features ▪▪Pet Health and Ownership: We want to advance television advertisements as well as a range of healthy research on pet nutrition and the benefits of recipes and money saving vouchers. pet ownership. We do this primarily through the WALTHAM® Centre for Pet Nutrition (WALTHAM®), In Europe, we partner with EPODE, the world’s largest a leading scientific authority on pet nutrition and obesity prevention network, and support their efforts wellbeing for over 50 years. In 2013, we published to combat childhood obesity. Through the Al Haraka 39 peer-reviewed papers, including five new studies Baraka program (“movement is a blessing”) in the examining the benefits of human-animal interaction. Middle East, we are helping educate students on the One of these studies revealed that more than a importance of physical activity. third of children believe their pets understand how they feel, demonstrating the pivotal role that Wrigley has long conducted and supported research animals play in the lives of young children. Another that shows that chewing sugar-free gum for 20 minutes showed that structured interaction with dogs may after meals can help protect your teeth. These help people with dementia. benefits are widely accepted and endorsed by dental professionals and included in the health policies of several national governments. In 2013, the French Watch Mars and German dental associations committed to include Health and chewing sugar-free gum in their recommendation Nutrition for better oral health. The German Association for animation Preventative Dentistry issued a notification to all online. dentists on this inclusion and announced its intention to develop a scientific guideline on this matter.

PROGRESS IN 2013 sodium targets, succeeded TARGETS in meeting our commitments To help consumers find the made in France on our rice and products that best fit into their sauce portfolio, and have met GDA Labeling lifestyles, we have continued the targets in the New York City to implement GDA labeling Health Department’s National We will implement GDA nutritional NUTRITIONAL across our confectionery and Salt Reduction Initiative. In LABELING labeling on most of our chocolate and food brands. At least 90 percent addition, we now use local confectionery globally by year-end of our confectionery products sodium targets in our product 2013, and continue to roll out GDA are labeled in all the markets designs for new products. labeling across our food portfolio by where we operate, with some year-end 2014. markets already at 100 percent For pet owners, understanding 100% label implementation. In most the ancestry of their mixed- PROGRESS: major markets, we have breed dogs can help them make We have implemented GDA also met our 250 calorie appropriate nutrition and diet nutritional labeling on at least 90% per portion target. choices, and provide a better of our chocolate and confectionery training program for their dogs. portfolios. Within our food portfolio, In 2013, nearly 85 percent of Mars has been a leader in dog 85% of our products carry a GDA label. our products across our global DNA sequencing technology. food portfolio had GDA labels In 2013, we launched on them. In addition, Mars WISDOM PANEL® 2.0, the next 25% Reduction Food achieved the 25 percent generation in dog DNA testing, average salt reduction three which now covers 100 percent We have already removed salt from years ahead of the target date. of the formally recognized a number of our products, having We further strengthened our American Kennel Club breeds, reduced sodium/salt levels in Mars commitments by pledging to and offers consumers over Food products globally by an average meet voluntary targets set 100,000 DNA markers for the SODIUM/SALT of 25%, from a 2007 baseline. locally by government agencies. same or lower cost, up from We achieved this through participation For example, we adopted the 320 DNA markers previously. in government initiatives and agreeing UK Department of Health’s to voluntary reduction commitments in different regions.

PROGRESS: We currently measure our performance by tracking the percentage of Mars Food portfolio that meets regional targets or definitions of responsible sodium/salt levels.

Target achieved in 2013

250kcal Per Portion

We will not offer any Mars Chocolate products that exceed 250 calories per CALORIES portion by the end of 2013.

PROGRESS: Many of our popular bars, such as SNICKERS®, MARS®, and MILKY WAY®, have reduced their saturated fat content and meet our target to not exceed 250 calories per portion.

Target not achieved in 2013

Many of our popular chocolate brands, such as MALTESERS®, have GDA labels, allowing consumers to quickly and easily know the calorie (or nutritional) content of their favourite brands.

We are committed to sourcing raw materials in ways that reduce our environmental footprint, improve farmer prosperity, and ensure reliable and affordable supplies of raw materials to help our business grow. We are setting ambitious targets that will combat the challenges of climate change, deforestation and water quality and scarcity, while improving farmer livelihoods. Our Supply Chain

In this Our Approach 24 Section: Toward a Sustainable Supply Chain 25

Progress in 2013 26 Targets 28 Sourcing Seafood Sustainably 29

23 © 2014 Mars, Incorporated and its Affiliates. All Rights Reserved. MARS Principles in Action Summary 2013 Introduction Our Approach Health & Wellness Supply Chain Operations Brands Working at Mars Our Supply Chain

Sourcing sustainable raw materials is a business imperative for Mars, Incorporated. Many of our raw materials come from regions with difficult environmental and socio-economic conditions. For example, farmers who grow cocoa – a vital raw material for Mars – face stagnant incomes, aging trees, poor soil conditions and unpredictable rainfall, all of which threaten their ability to grow the crop. This constrains our future growth opportunities and the prospects of farmers.

OUR APPROACH In some areas, CDCs are linked with Cocoa Village Centers (CVCs), Mars has committed to buying 100 percent We already have ambitious targets small independent businesses that certified cocoa by 2020. to source 100 percent of five are run by local entrepreneurs key raw materials using more trained by a CDC. The CVCs sell sustainable approaches, most approved planting material and often certified by independent teach, promote and implement We carry programs such as Rainforest rehabilitation techniques that out scientific Alliance, Fairtrade, UTZ can help smaller farmers. Certified, and the Roundtable on research and Sustainable Palm Oil (RSPO). Our strategies evolve based on farmer training their effectiveness in pilot programs We carry out scientific research projects. For example, in 2013, to improve and farmer training programs Mars Drinks worked with external to improve raw material partners to complete four raw material sustainability. For example, our innovative pilots within the coffee sustainability. Sustainable Cocoa Initiative, which growing communities of Papua has committed to buying 100 New Guinea, Peru, Sumatra and percent certified cocoa by 2020, Tanzania. Through the pilots, invests in breakthrough science farmers were trained in good on the cacao genome to improve agricultural practices, organic farmer productivity and income. composting techniques, and Across Africa and Indonesia, Mars understanding the benefits of Chocolate has built 20 Cocoa certification schemes. The lessons Mars Chocolate is Development Centers (CDCs) in from these pilots will help inform the only major global chocolate manufacturer partnership with international our coffee sourcing strategy. to work with the three donor agencies and governments, main certification with 35 more planned for 2014. organizations.

TOWARD A SUSTAINABLE SUPPLY CHAIN Mars understands that the long- We are building on our existing strategy to develop term viability of a more comprehensive sustainable sourcing strategy. their business We partnered with World Wildlife Fund (WWF) and depends on Maplecroft and mapped our supply chain to evaluate sustainable our next set of priority raw materials, based on sourcing. the size of their impact, our business priorities and Mars’ Principles. As the next step, we are WWF’s Supply assessing the most significant impacts for the raw Risk Analysis materials we source, and we will set targets against helped the CASE STUDY these impact areas. The emphasis on impacts is company identify characteristic of Mars’ unique approach to global Our Deforestation Policy challenges: derived from science, research and environmental collaboration, and focused on tackling long-term risks and challenges that face agricultural supply chains, prioritize where As one of the world’s leading food companies, rather than short-term goals. they can have the we recognize the need to demonstrate exemplary sourcing practices and commit to For example, our priority within one of the key greatest impact. the protection of forests and biodiversity. environmental impacts we have identified (land) As a priority for tackling our land use is eliminating deforestation. We analyzed the data impacts, we are focusing on deforestation. provided by external partners such as Maplecroft Dave McLaughlin, We worked with internal and external and evaluated the Consumer Goods Forum’s priority Vice President stakeholders to help us develop a company- raw materials where deforestation is a material of Agriculture, wide Deforestation Policy, published in 2014. issue. Our stakeholder meeting in January sought World Wildlife Fund external input on our focus areas. This process led See page 7 for a summary of the workshop. to the launch of our Deforestation Policy in March 2014, prioritizing palm oil, beef, paper and pulp, Our new Deforestation Policy commits us and soy (see case study). We will continue to use to sourcing raw materials with the greatest this approach – evaluating our impacts, seeking impact on forests (beef, palm oil, pulp and stakeholder input and setting long-term targets – paper, and soy) from producers and suppliers to help us build on our existing programs and who comply with the following: produce or policies as we develop a more comprehensive purchase all raw materials from legal sources; sourcing strategy. no deforestation of primary forest or areas of high conservation value; no development in high carbon stock forest areas or on peatlands regardless of depth; no burning to clear land; respect the right of all affected communities to give or withhold their free, prior and informed consent for plantation developments on land they own legally, communally or by custom; resolve land rights disputes through a balanced and transparent dispute resolution process; comply with our Code of Conduct; and support farmers and plantation owners to comply with this policy.

Our Palm Oil Policy is available on our website, and we plan to issue policies for pulp and paper, beef and soy by the end of 2014. Mars will also monitor the deforestation risk of other raw materials, and partner with industry, governments and civil society on broader efforts to protect forests and ensure mutual benefits for the workers and communities that rely on them for their livelihoods. We aim to source 100 percent of our black tea from certified sources by 2015.

PROGRESS IN 2013

In 2013, we made significant progress in developing our sustainable sourcing strategy. Our challenge in 2014 will be to define specific policies and goals. We have also progressed on building sustainable supply chains for some of our key agricultural commodities, including:

COCOA: RICE: TEA: COFFEE: PACKAGING:

We have increased our We are working in Our aim is to source 100 Our aim was to source Quality packaging is purchase of certified partnership with the percent of our black tea 100 percent of our critical to preventing cocoa to 30 percent of International Rice from certified sources coffee through certified our products from total volumes, making Research Institute and by 2015. Currently 32 sources by 2013. By spoiling, enabling us the world’s largest basmati rice farmers percent of our supply the end of 2013, only efficient transport, buyer of certified in Pakistan to optimize is certified, and we 73 percent of our and helping consumers cocoa. In June 2013, farming practices. The remain on track to reach global market volume identify our brands. We the journal Genome objective is to minimize our 2015 goal of 100 was certified. Through are working to tackle Biology published the the use of chemicals, percent. Partnership our work, we have the environmental and latest findings on our optimize water use is vital in sustainable learned about the social impacts associated cocoa research, which and improve farmer sourcing. We seek to challenges associated with our packaging. Our identified key genetic productivity. Through collaborate with others with sourcing certified short-term targets have markers that will help us this engagement, in our sector to amplify coffee, including that focused on reducing develop more productive farmers receive a the mutual benefits we lead times to procure material use and on cocoa trees through premium price over can create. We are a these beans can be increasing the recycled traditional breeding. “typically” grown member of the Ethical longer than anticipated content and recyclability Mars also published a basmati, ensuring a Tea Partnership, a and the importance of our packaging. Our gender assessment on better product for membership body for of setting up effective progress, however, women cocoa farmers, Mars, better incomes tea packers that aims to internal processes to has been slower than and we are in the for farmers and more ensure tea is produced meet this timeline. We expected. In 2013, process of developing efficient utilization of under positive social will incorporate these primarily driven by a comprehensive natural resources. and environmental lessons to help us reach growth, our packaging gender outreach plan, conditions, with the our future certification weights increased by strengthening our vision of creating a commitments, and we 4.1 percent from the commitment to women in sustainable tea industry. are confident of meeting baseline in 2007. We are the cocoa supply chain. our target by year currently undertaking end 2014. a deeper review of our Read the entire packaging strategy and assessment at targets to understand cocoasustainability.com. how we can accelerate our performance in this area.

26 © 2014 Mars, Incorporated and its Affiliates. All Rights Reserved. MARS Principles in Action Summary 2013 Introduction Our Approach Health & Wellness Supply Chain Operations Brands Working at Mars 60% of pet dogs and cats in the developed world are fed by Mars Petcare products (including ROYAL CANIN®), which include fish and fish by-products.

CASE STUDY MINT: FISH: Improving In 2013, we surveyed our suppliers to understand We are identifying best practices The United Nations estimates Palm Oil their commitment to to reduce environmental that 87 percent of global Sustainability certification standards impacts of mint farming related fisheries are already fished (RSPO and other certification to productivity, water usage, at or beyond capacity.5 As a programs), and their plans distillation efficiency and leading petcare company, we Most palm oil production is to establish full supply reduction of GHG emissions. have committed to sourcing 100 in Southeast Asia (primarily chain traceability. For example, Wrigley percent sustainable fish by 2020. Indonesia and Malaysia), a collaborated with the Mint Our strategy is to reduce the region with the world’s third In early 2014, we developed Industry Research Council total amount of fish used in our largest tropical forests. a sourcing charter that to educate North American pet food, replace any vulnerable Much of this expansion has requires all our suppliers to farmers on the environmental fish sources, and source from occurred at the expense establish fully sustainable and economic benefits of using third-party recommended of virgin tropical forests, and traceable palm oil natural gas over diesel fuel. fisheries to assure the which has resulted in supply across all their Over the last four years, these sustainability of our products. increased GHG emissions operations by the end farmers converted 18 percent and biodiversity loss. of 2015. We are also of total mint production from In 2013, Mars Petcare continued partnering with The Forest diesel to propane or natural to offer consumers an expanded Mars uses only 0.2 percent Trust (TFT) to help mills gas, resulting in a reduction range of sustainable pet food of global palm oil supplies, and plantations build of over 8,000 tonnes of carbon products. In the U.S., we have and we purchase 100 traceability, and verify dioxide. In India, another key replaced over half of our fish percent of our palm oil that their fresh-fruit bunch mint growing region, Wrigley supply with Monterey Bay from RSPO-certified sources supply, including supply is developing a sustainable Aquarium approved sources. via the “mass balance” from smallholders, meets agriculture plan. This assesses In Europe, we have three program. Building on this, Mars’ sourcing charter. our environmental and social Marine Stewardship Council we are working toward fully These measures will impacts, and sets strategies (MSC) certified production sites sustainable and traceable help ensure a genuinely against these impacts to ensure and 40 MSC-certified products sources of palm oil that sustainable pipeline where we secure a vibrant Indian mint from SHEBA® and WHISKAS®. are free of deforestation, all material is sourced from industry for the future. In Asia-Pacific, we have limit expansion on carbon- companies whose mills only reduced our tuna usage (whole rich peatlands, and reject produce sustainable fish equivalent) by nearly the violation of human and palm oil. 30 percent by making more labor rights. efficient use of every fish Learn more about our and reducing waste. updated Palm Oil Policy.

5. Food and Agricultural Organization of the United Nations, “The State of World Fisheries and Aquaculture,” 2012, available at: http://www.fao.org/ docrep/016/i2727e/i2727e00.htm

2020 TARGET 2013 TARGET (not achieved) TARGETS: 100% of cocoa from certified sources - 100% of coffee beans from certified sources. We have ambitious targets to source an industry first. 100 percent of five key raw materials using more sustainable approaches. For packaging, our short-term targets focus on reducing material use and >20% on increasing the recycled content 2012 and recyclability. 73% 2013 30% 2013

56% 2012

Learn more about the actions we are Learn more about the actions we are taking to achieve the 100% target. taking to achieve the 100% target.

2015 TARGET 2015 TARGET (achieved) 2020 TARGET 100% of black tea from certified sources. 100% of palm oil from certified sources. 100% of fish and seafood products from sustainable sources. 100% 2013 10% 2013

32% 2013 33% 2012 >50 % 2012

Learn more about the actions we are Learn more about how we achieved Learn more about the actions we are taking to achieve the 100% target. the 100% certification target in 2013. taking to achieve the 100% target.

2015 TARGET 2015 TARGET (achieved) 2015 TARGET Reduce packaging weights by 10% from a Increase the level of recycled content in Design our packaging to be 2007 baseline. our packaging by 10%. 100% recyclable or recoverable.

0% 10% 2013 2011

84% 2013

75% 2012

In 2013, our packaging weight increased In 2013, our packaging contained 41.2% Learn more about the actions we are by 4.1% from the 2007 baseline. recycled content, a 20.2% increase from taking to achieve the 100% target. the 2007 baseline. Learn more about the actions we are taking to achieve the 10% target. Target achieved in 2011.

SOURCING SEAFOOD SUSTAINABLY Making a difference to people and to pets

KEY ISSUE THE STRATEGY

Seafood is a source of protein in our foods for pets. More importantly, it is Reduce the total volume of fish we use a primary part of the diet for more than REDUCE by increasing the amount of protein one billion people worldwide. Today, 2050 sourced from each fish and being more growth in human population and income efficient in the amount of fish used in is increasing demand, while resources The year by each of our products. are growing ever scarcer. Mars Petcare is when scientists committed to sustainable sourcing believe global of fish used in all its pet food products. fish populations REPLACE Replace any fish species we use in our pet may collapse. foods that are listed as vulnerable on the How did we get here? IUCN Red List with healthy, sustainable species or other types of proteins. Non-sustainable Demand practices ▪ Population growth ▪ Unintentional ▪ Increased capture of consumption non-target REASSURE Reassure all that we are doing is right by species Overfishing achieving third-party certification or ▪ Poor management ▪ 87% of global following third-party recommendation ▪ Damage to fisheries are at for our fish ingredients and sourcing fish ecosystems or above capacity* from healthy stocks whose suppliers have signed our Fisheries Code of Conduct.

* Food and Agriculture Organization of the United Nations.

WHAT ARE WE DOING KEY SUSTAINABILITY METRICS TO ADDRESS THE ISSUE? Percentage of wild caught seafood from sustainable sources by geographic region

NORTH AMERICA EUROPE ASIA PACIFIC* OUR COMMITMENT Based on Based on Based on 100% 1,000 tonnes 6,000 tonnes 16,000 tonnes sustainable fish and fish 70% 8% -30% by-products SUSTAINABLE SUSTAINABLE WHOLE IN 2013 IN 2013 TUNA USAGE by 2020. IN 2012/13

2011 10% 2011 2% 2011 100% 2012 47% 2012 4% 2012/13 70% 2013 70% 2013 8%

*In Asia Pacific, we have successfully converted to a natural ratio of white and red meat for tuna, and we have reduced our tuna usage (whole fish equivalent) by 30%.

OUR PROMISE We will only use fish from wild stocks that are not threatened, or are responsibly farmed. We will replace all wild whole fish and fish fillets with fish by-products and responsibly-farmed seafood products. We will develop and use alternatives to marine fish ingredients.

We are determined to grow our business without expanding our environmental footprint. Decoupling growth from environmental impacts is essential to ensuring our growth is a force for good. We are using our influence and our investments to support the development of sustainable projects that will have long term benefits for our operations and beyond. Our Operations

In this Our Approach 31 Section: Sustainable in a Generation 32 Progress in 2013 33 Targets 33 Sustainable in a Generation Progress Charts 35

30 © 2014 Mars, Incorporated and its Affiliates. All Rights Reserved. MARS Principles in Action Summary 2013 Introduction Our Approach Health & Wellness Supply Chain Operations Brands Working at Mars Our Operations

Mars’ growth benefits communities CASE STUDY which is scheduled to go live in the first quarter in which we operate by creating new Mars will become of 2015, is an important jobs and supporting local suppliers the first major food component of our strategy and small businesses. Through our business to generate to meet our ambitious goal electricity from of eliminating fossil fuel use community engagement and Associate renewable sources and GHG emissions from our equivalent to all operations by 2040. With volunteering, we make a positive electricity used by this 20-year contract, Mars difference to the lives of those who its U.S. operations will be making the biggest long-term commitment to live and work near our facilities. renewable energy use of any Mars, in partnership with food manufacturing business Pursuing sustainability – and reducing Sumitomo Corporation, in the United States. the negative impacts of our operations is building a new 200 megawatt wind farm – The Mesquite Creek – is a natural extension of our vision to Mesquite Creek Wind development will have – in Lamesa, Texas. The enough capacity to support create a mutuality of benefits for all project’s annual generation Mars’ projected growth those involved in our business. will exceed 100 percent in the U.S. market, so of the electricity needs of that we will be able to Mars’ U.S. operations. remain at 100 percent renewable energy, even This output – enough as we continue to invest to power 61,000 U.S. in new operations and We have the most control carbon-based energy and households – is equivalent installations. It is another over the impacts of our water use are essential to to 24 percent of Mars, example of how we factories and offices (which mitigating the consequences Incorporated’s total factory are making long-term we call our “operations”). of climate change and and office carbon footprint investments to tackle Working from robust securing our sustainability and 12 percent of our global global challenges such scientific data, we have set as a business. Similarly, energy use. The project, as climate change. ambitious goals to make by driving a zero waste our operations Sustainable to landfill agenda, we in a Generation (SiG). are emphasizing waste’s potential as a valuable OUR APPROACH resource.

Our goal is to reduce our Because we outsource environmental impacts, product transport, its impact even as our production on our GHG emissions and volumes increase. We aim to local air quality is not eliminate fossil fuel energy included in our SiG program use and GHG emissions from and targets. We are, our operations by 2040. We however, applying a similar are working on similar long- approach to eliminating term commitments for water transport-related GHG and waste. emissions by 2040.

These ambitious goals, Learn more about how we implemented through the are reducing emissions from Our goal is to reduce our environmental impacts, SiG program, reflect our product transport. even as our production volumes increase. belief that decreasing

SUSTAINABLE IN A GENERATION

To reduce our impacts, Mars is pursuing absolute reductions, even as production volumes increase. The SiG program influences the ways we design, build and manage our operations. We are exploring four main strategies to meet our targets:

OPERATIONAL CAPITAL NEW RENEWABLE EFFICIENCY: EFFICIENCY: TECHNOLOGY: ENERGY:

Improving our operational We are investing in technology We are developing and We are exploring the use of efficiency is the most immediate and processes that use less deploying innovations to renewable energy when building and cost-effective way to reduce power, leading to more efficient improve the efficiency of our new operations, and installing our GHG emissions. Across equipment and processes. operations. For example, renewable energy sources our business, we are driving For example, several of our we are now using advanced at existing operations. For down energy use, water use, sites have installed heat pump modeling techniques that have example, several Mars facilities and waste through changes in systems that allow us to recover led to more efficient coating in Brazil use hydropower from Associate behavior and smarter waste heat and reduce the use processes for confectionery a supplier to meet their energy use of our existing equipment. of natural gas. products. needs, and in the U.S., we are We engage our Associates building a wind farm that will through local SiG workshops generate enough electricity to where they can share best power all our U.S. operations. practices and identify segment-specific improvements Learn more about our to help meet targets. renewable energy program in the case study on the previous page.

PROGRESS IN 2013 TARGETS

In 2013, relative to our 2007 baseline, fossil fuel energy use has been reduced by 6.5 percent, our GHG WATER USE 25% Reduction emissions by 5 percent, and our water use by 13.6 percent while production volumes have fallen 2.1 Reduce water use by 25% by percent. Compared to 2012, production has increased 2015 from a 2007 baseline. 2.4 percent while our water use decreased 0.3 percent, GHG emissions decreased 0.3 percent and fossil fuel PROGRESS: energy increased by just 0.9 percent. Water use has reduced by 13.6% between 2007 and 2013. We have been challenged by changes in the production mix to smaller pack sizes, more energy intensive products and geographical mix changes. In response, 25% Reduction we have initiated an intervention in our efficiency FOSSIL FUEL program and accelerated our efforts on renewables, Reduce direct fossil fuel energy use such as our wind farm project in Texas. and GHG emissions by 25% by 2015 and by 100% by 2040 from a 2007 baseline. Our landfill volumes are now just 34 percent of what they were in 2007 and by the end of 2013, 55 sites were PROGRESS: landfill free. This has eliminated nearly 100,000 tonnes Fossil fuel based energy use reduced of landfill waste annually. by 6.5% and GHG emissions by 5% between 2007 and 2013. Our business segments are forging ahead with reducing energy use, water use and waste at their individual sites, often overcoming local challenges: Zero Waste

MARS CHOCOLATE: Achieve zero waste to landfill by 2015 WASTE Over half of Mars Chocolate sites have achieved PROGRESS: the zero waste to landfill target ahead of the 2015 ▪▪Waste to landfill has reduced by deadline, often in the absence of local infrastructure 66.2% between 2007 and 2013 support. For example, at our site in Stupino, Russia, Associates worked hard to bring about a cultural ▪▪55 of our sites achieved zero waste shift that encouraged reuse and recycling, ultimately to landfill in 2013 achieving a 96 percent reuse and recycling rate and the zero waste to landfill target.

In Veghel, Netherlands, our factory has developed an innovative solution to “cooling” the heat generated during chocolate refining. The site has replaced the original energy-intensive cooling system with one that uses the outside air temperature to cool the process. The new system has resulted in annual savings equivalent to the energy consumption of 330 average Dutch households.

MARS DRINKS:

The redesign of Mars Drinks’ headquarters in West Chester, Pennsylvania, ensures that operational efficiency is at the core of the new design. For example, working with external partners, the site has integrated two compressor systems – one to maintain the freshness of coffee and the other to support packaging machines – into a more efficient singular design that responds to demand. The new system is expected to save 9.3 percent of the site’s total annual electricity consumption.

We are driving down energy use, water use and waste through changes in Associate behavior.

MARS PETCARE:

In 2013, our petcare facility in By using science as China implemented several a guide to set climate energy saving projects, including and energy goals, a steam pipe upgrade that has resulted in energy savings of 25 Mars is setting a percent annually. standard of leadership for others to follow. In Victorville, California, Mars The company’s Petcare is developing a solar garden that will provide up to ambitious goals to 40 percent of the site’s daily eliminate emissions energy needs at peak use, and and fossil fuel use is projected to meet 16 percent by 2040 from their of the site’s annual energy consumption. Some of our direct operations and ® ROYAL CANIN sites implemented innovative approaches Associates Debbie Hemphill from Mars Petcare and selective waste sorting, optimized to achieving interim Laurie Bachelor from Mars Chocolate accept a Make the Difference Award on behalf of their segments. truck routing and sales rep visits, targets align with and also sourced from nearby Associates Debbie Hemphill from Mars Petcare and factories, leading to a 3 percent the scale of climate challenge and Laurie Bachelder from Mars Chocolate accept a Make reduction in carbon footprint per the Difference Award on behalf of their segments. tonne sold. demonstrate that addressing climate MARS FOOD: CASE STUDY change improves the Mars Food has reduced waste bottom line. WWF Team Canada: Working to landfill by 71 percent since commends Mars’ 2007. Mars Food’s factory in commitment to the Together to Reduce Waste King’s Lynn, UK, achieved its zero to landfill target two years future of its customers Reducing waste is not simply a process of recycle ahead of schedule. The site has and a healthy planet. and reuse. It requires a strategic approach to long recycled materials such as manage waste from our operations – from using the cardboard, drums, and scrap right vendors to finding synergies between different metal, and has recently Marty Spitzer, manufacturing processes. developed innovative solutions Director US Climate and for food and mixed plastic waste. Renewable Energy Policy, By sharing their individual practices and their These include disposing of food World Wildlife Fund knowledge of local recyclers, our business units in waste in an anaerobic digestion Canada - Food, Petcare, Chocolate, ROYAL CANIN®, plant and a composting plant Wrigley and the national office – were able to that is eventually expected to develop a waste management process that has generate energy. achieved the zero waste to landfill goal for all of Mars Canada operations ahead of schedule. The WRIGLEY: program has prevented waste equivalent to filling two and half Olympic-sized swimming pools from The Wrigley India team in Baddi being sent to a landfill. In addition, waste that was installed a biomass boiler that not recycled was converted into energy at a local is expected to reduce the facility – enough to fuel 19 households for an site’s fossil fuel consumption entire year. by approximately 70 percent and associated direct onsite This is one of many ways in which our Associates, carbon dioxide emissions by working in partnership and using their individual approximately 60 percent in 2014. creativity, are helping make a difference to people Additionally, Wrigley’s Toronto, and the planet. Gainesville, Northwestern Flavors, Santiga and Chattanooga sites reached zero waste to landfill, bringing the total number of Wrigley sites to 13.

TOTAL ENERGY USE (terajoule) RENEWABLE ENERGY (terajoule) Excludes 29TJ electricity sold to grid from cogen. Includes only renewable energy generated onsite and energy purchased directly from 100% renewable sources.

Working with partners to generate cleaner power is one of our strategies to reduce GHG emissions. We can directly control energy use at our operations and are aiming to reduce our total energy use.

SEGMENT 07 08 09 10 11 12 13 CHANGE SEGMENT 07 08 09 10 11 12 13 CHANGE from 2007 Baseline from 2007 Baseline

6,665 6,597 144 Mars -1.0% Mars 0 Chocolate* Chocolate*

67 Mars -20.1% Mars 0 0 Drinks 54 Drinks

1,114 14 Mars 1,022 9.0% Mars 0 Food Food

11,640 10,715 -7.9% 93 104.5% Mars Mars 190 Petcare Petcare

2,932 -9.8% 4.1 179.5% Wrigley 2,644 Wrigley 12

14 Mars 0 Mars 0 0 Symbioscience† Symbioscience†

44 45 0.9% 97 360 270.2% Other≈ TOTAL

22,370 21,183 -5.3% TOTAL

* Our Chocolate factory in Henderson, Nevada, restated its 2007 production. † Data from our Symbioscience segment no longer includes data from the Mogendorf site, which was sold in 2013.

≈ “Other” includes cross segments such as sales offices, information services sites (Mars Global Services – data centers) and corporate HQ.

Note: A common, global ("harmonized") set of energy content conversion factors has been applied across all years. This causes some variation from previously published results.

FOSSIL FUEL ENERGY (terajoule) SCOPE 1 AND 2 (kilotonne CO2e)

SCOPE 2 GHG emissions from purchased electricity SCOPE 1 used in our factories GHG emissions from -25% and offices. direct energy and Reduce direct fuel consumption in fossil-fuel energy our factories, offices use and greenhouse and vehicles. gas emissions by 25% by 2015 from a 2007 baseline.

SEGMENT 07 08 09 10 11 12 13 CHANGE SEGMENT 07 08 09 10 11 12 13 CHANGE from 2007 Baseline from 2007 Baseline

6,665 6,454 630.7 636.3 Mars -3.2% Mars 0.9% Chocolate* Chocolate*

8.2 67 Mars -20.1% Mars -29.3% Drinks 54 Drinks 5.8

1,100 81.9 Mars 1,022 7.7% Mars 78.6 -4.1% Food × Food ×

875 Mars 11,547 10,525 -8.9% Mars 793.7 -9.3% Petcare Petcare

2,928 299.9 2,632 -10.1% 285.2 -5.8% Wrigley Wrigley

2.1 14 Mars 0 Mars 0.1 Symbioscience† Symbioscience†

44 45 0.9% 30.1 29.7 -1.2% Other≈ Other≈

22,228 20,779 -6.5% 1,926 -5.0% TOTAL TOTAL 1,829

* Our Chocolate factory in Henderson, Nevada, restated its 2007 production. Note: We have corrected our Scope 2 emissions following the finding that 11 of our US factories, primarily in Mars Petcare, were previously in the wrong U.S. † Data from our Symbioscience segment no longer includes data from the EPA subregions. Mogendorf site, which was sold in 2013.

× Greenhouse gas emissions and fossil fuel energy use have increased since 2007 at Mars Food. This is primarily because our Greenville site in Mississippi, US, used to generate energy from burning rice hulls, but now uses natural gas.

≈ “Other” includes cross segments such as sales offices, information services sites (Mars Global Services – data centers) and corporate HQ.

WATER (000m3) WASTE TO LANDFILL (kilotonne) -25% Reduce water use by 25% by 2015 from a 2007 baseline. ZERO Achieve zero waste to landfill by 2015.

SEGMENT 07 08 09 10 11 12 13 CHANGE SEGMENT 07 08 09 10 11 12 13 CHANGE from 2007 Baseline from 2007 Baseline

4,134 3,906 Mars -5.5% Mars 19 2.5 -87.0% Chocolate* Chocolate*

14.1 Mars -54.7% Mars 0.6 -99.7% Drinks 6.4 Drinks O

1,254 Mars -7.9% Mars 6.7 2.0 -70.7% Food 1,362 Food 9,372 7,7 5 8 Mars -17.2% Mars 89 40 -55.1% Petcare Petcare

1,563 1,291 -17.4% 27 4.0 -85.5% Wrigley Wrigley

1.0 Mars 0 Mars 0 O.01 Symbioscience† Symbioscience†

13 11 -14.4% 142 48 -66.2% Other≈ TOTAL

16,458 * Our Chocolate factory in Henderson, Nevada, restated its 2007 production. 14,227 -13.6% † Data from our Symbioscience segment no longer includes data from the TOTAL Mogendorf site, which was sold in 2013.

Note: In 2013, we found that we had been misreporting water usage from ≈ “Other” includes cross segments such as sales offices, information services 2010–2012 at a large manufacturing site. Restatement of those years has sites (Mars Global Services – data centers) and corporate HQ. materially increased our reported water use.

PRODUCTION (kilotonne)

07 08 09 10 11 12 13 CHANGE from 2007 Baseline

8,268 8,099 8,651 8,440 7, 8 47 7,969 8,470 -2.1% TOTAL

Our brands are the engines of Mars’ growth and we are proud of their global recognition and consumer appeal. Using advertising and awareness of our brands, we aim to engage consumers in social and environmental causes through sustainable innovation and cause marketing campaigns. Our Brands

In this Sustainable Innovation 39 Section: Cause Marketing 40 Communicating Responsibly 41 Targets 41 Case Studies 42

38 © 2014 Mars, Incorporated and its Affiliates. All Rights Reserved. MARS Principles in Action Summary 2013 Introduction Our Approach Health & Wellness Supply Chain Operations Brands Working at Mars Our Brands

Mars brands are among the most popular in the world, and we want to engage our consumers in We are committed to our brands supporting good causes and making a difference being affordable to many people. To do this, we want to make to people and the planet. We are embedding our sure that the raw materials we Principles-led approach into our brands to bring need continue to be available the Mutuality Principle to life. We also aim to and affordable. communicate responsibly through our advertising Bruce McColl, and marketing activities. Chief Marketing Officer, Mars, Incorporated

Mars is a business of globally-recognized, We have progressed our work on buying 100 billion-dollar brands. We are proud of percent High-Oleic Acid Peanuts (HOAP) – the many direct benefits our brands bring the variety that stays freshest for longest to people’s everyday lives and how they - for our M&M’S® brand through a targeted contribute to our growth. engagement campaign with growers and shellers in North America. We are investing Our brands have grown using Mutuality $1.45 million toward mapping the peanut as a guiding business principle. As we genome, which will allow breeders to continue to grow, we know that we must quickly develop even higher-yielding use the scale and reach of our brands to varieties. Improved productivity protects affect real and lasting change. Our work in farmers’ livelihoods, and that means our this area falls into three main categories: brands have a more secure future. sustainable innovation; cause marketing; and responsible communication. Similarly, overfishing can jeopardize the availability of the fish we need for petcare Sustainable Innovation brands such as WHISKAS®. To help maintain a secure and stable fishery stock, we are using Social and environmental challenges in our more meat from each fish and reducing the value chain threaten the availability and total number of fish used. We aim to source affordability of essential raw materials that all fish from sustainable sources by 2020. In make our brands special. We are changing 2013, we began buying Marine Stewardship the way we manage our supply chain and Council certified fish in Europe for WHISKAS® Sustainable innovations in sourcing raw materials and operations (see Our Supply Chain and products. Fish used in SHEBA® in North packaging help us ensure our Our Operations) so that our brands can America is certified through the Monterey chocolate brands have a get the resources they need, while ensuring Bay Aquarium Seafood Watch program and secure future. they remain profitable to make and features their ‘responsibly sourced’ logo. affordable to buy. By using packaging materials more For example, peanuts are essential for efficiently, we lower production costs M&M’S®. But pests, disease and shortages and reduce our environmental impacts. of water and farm land threaten to reduce In 2013, Wrigley launched a new bottle to supply and push up the price. That is why we eliminate and replace the BIG-E-PAK® bottle are leading our industry by helping peanut and pop top bottle with a single, lighter farmers meet these challenges. format - reducing the amount of plastic in each bottle by 6.5 percent and 19 percent respectively. The new bottle is used for EXTRA®, ORBIT®, SKITTLES® and FREEDENT® brands in Europe.

We aim to use our brands to stimulate consumer preference for products that make a positive difference to people and the planet.

Our range of innovative projects Cause Marketing to maximize the long-term social are finding ways to produce and environmental benefits of our iconic brands while using We aim to use the power of our We want to these campaigns, as well as their resources more efficiently. As we marketing communications to make a big commercial success on a make progress, we anticipate engage consumers in good causes. global scale. that consumers will notice some difference for of our sustainable innovations, While cause marketing is an the causes We also develop cause marketing particularly where ingredient established communications tool we support. campaigns for local markets. ® choices differ. We are applying at Mars, we were not using it to Creating In the UK in 2013, MALTESERS lessons from how other companies maximum effect. Cause marketing supported the charity Comic have changed consumer can complement the sustainability growth is Relief, which is known for its Red perceptions and expectations in work in our supply chain and critical to Nose Day fund raising campaign. relation to sustainable innovations, operations and make a difference to scaling MALTESERS® donated five pence so that our consumers embrace the people and planet, while improving success. from every special Red Nose Day changes we make and continue to our brand performance. pack, raising over £1 million for choose our brands. Comic Relief. In South Africa, the We challenged ourselves to Bruce McColl, Shoprite Mobile Soup Kitchen, generate global cause marketing Chief Marketing supported by ROYCO®, has served campaigns for five of our brands. Officer, over 16 million cups of soup since Four are now live (see case studies Mars, Incorporated the project began in 2007 to help on pages 42 and 43). We did this alleviate hunger in disadvantaged by testing different approaches to communities. Our plan is to expand creating brand value through cause both flagship and local campaigns marketing. The lessons learned to more markets and create have helped us identify the right additional campaigns with some business models and strategies of our other brands.

TARGETS

MARKETING Five Global Brands Have cause marketing campaigns in place for five of our global brands by the end of 2015.

PROGRESS: Identified four campaigns.

ENERGY 25% Reduction Reduce average FLAVIA® and KLIX® drinks machine base energy consumption by 25% by 2015 from a 2010 baseline.

PROGRESS: We want to use our iconic brands to make a positive Reduced by 10% from 2010 baseline. difference to people and planet. No Advertising Communicating as assessed by the International Responsibly Food and Beverage Alliance. to Children We did not achieve full ADVERTISING Our communications activity compliance because we Not to advertise our products is an important opportunity advertised on programs that to children under the age of 12 to engage consumers, and we were watched by more children or advertise on websites aimed take this responsibility seriously. than anticipated. We have at those under 13. Compliance with all mandatory taken steps to ensure this and voluntary commitments, does not happen again. PROGRESS: to the letter and spirit, Achieved 97.1% compliance with are essential for Mars to Our advertisements and this commitment in 2013. maintain credibility and promotions do not depict industry leadership. unaccompanied children Target not achieved in 2013 under 12 eating snack foods, In addition to complying with nor do we use children as the specific regulatory and spokespeople for our brands. legal requirements of individual We extend these principles countries, we have developed to digital media, where we the Mars Marketing Code (MMC), do not advertise on websites which sets clear guidelines aimed at those under 13. for how we advertise and promote our products globally, In Europe, we achieved 98.3 particularly food, chocolate, percent compliance with the confectionery and gum EU Pledge - a voluntary initiative products. China and India were by leading food and beverage the final countries to implement companies to change the way the MMC in 2013. they advertise to children. We must communicate responsibly to maintain our credibility, and the trust that people have in We are committed to reach our We continue to work our brands. Our participation in the EU Pledge goal of not advertising if more collaboratively with governments, and efforts to apply our Mars Marketing Code than a quarter of the audience interest groups and peer is likely to be under 12 through companies to support industry- demonstrate our commitment in this area. our global internal network of leading practices in this area. ambassadors and our monitoring system. In 2013, Mars achieved Matthias Berninger, 97.1 percent compliance with Vice President Public Affairs, this MMC requirement, Mars, Incorporated

Ben’s Beginners™ encourages young people Dog lovers are helping to restore the to cook healthy meals with their families. health and vitality of homeless dogs through the PEDIGREE® Feeding Project.

CASE STUDY CASE STUDY

Ben’s Beginners™ Your contest has PEDIGREE® Feeding Project brought together our Inspiring parents and their children to cook together helps friends, neighbors In 2014, PEDIGREE®, which has donated more than 20 families develop a healthier relationship with food and is and family from million pounds of food to pet shelters, launched its an important step towards tackling childhood obesity. This new See What Good Food Can Do™ documentary-style all over the planet is the spirit behind the Ben’s Beginners™ campaign. campaign at the ultimate storytelling venue - the 2014 to support my son Sundance Film Festival. This new campaign features Families are encouraged to submit videos showing them and his “It’s easy real stories of dogs in shelters, their caregivers and the cooking a healthy meal together using UNCLE BEN’S® rice. being green chicken dogs’ new families – and brings to life the impact that A range of prizes incentivize engagement, and the winners and rice” dish! No PEDIGREE® food can have on the lives of shelter dogs. are chosen through a public vote via social media. matter what happens To celebrate the stories of shelter dogs, PEDIGREE® has with the rest of the In 2012, the inaugural communications campaign in enlisted dog lovers to get involved with the campaign contest, [my son] the U.S. reached 20 million households with kids, and to help feed more shelter dogs. For every person who generated 800 videos of parents and children cooking is already a winner shares a story through social media using #DogTales, together as families. And in 2013, we achieved our goal of by learning about PEDIGREE® will donate a bowl of food to a shelter. getting 1 percent of families in the U.S. — around 236,000 eating the right foods, households — cooking together. Three schools with the cooking healthy and Building on the long-standing commitment to feeding highest number of video submissions received the School dogs, the brand also launched the PEDIGREE® Feeding realizing the value of Participation Award of $30,000 for a cafeteria makeover. Project in 2012, which gives 12 shelters across the U.S. friends and family in 100 percent of their core dog food needs at no cost. In 2013, Ben’s Beginners™ launched in Belgium, helping him to reach This helps shelters focus their resources on helping Canada and Ireland; nine other markets will roll his goals. more dogs get adopted. out the campaign in 2014. By February 2014, the program had provided 3,700,000 Parent of Ben’s pounds of food for 31,500 pets, and the shelters had Beginners™ saved $397,000, enabling them to use funds for other contestant, U.S. essential activities.

Mars and WWF aim to double the number Children in Ghana have been learning the of wild tigers to 6,000 by 2022. importance of brushing their teeth twice a day, every day.

CASE STUDY CASE STUDY

The WHISKAS® Tigers Alive Initiative EXTRA® Chew for Change

Because big cats need love and protection too, the “Your chewing gum is someone else’s toothbrush” WHISKAS® Tigers Alive Initiative - launched in 2013 by Mars Petcare UK - engages cat owners in a cause close Provocative and attention-grabbing phrases like this, to their hearts. delivered in-store and online as part of the EXTRA® Chew for Change communications campaign, are helping In partnership with the World Wildlife Fund (WWF), Wrigley reach 16,000 children in Ghana, where oral it provides funding and creates awareness about tiger health is often overlooked. conservation, with the goal of doubling the number of wild tigers to 6,000 by 2022. Since the program’s launch in September 2013, every purchase of EXTRA® gum in Sweden generates a donation Consumers can support the effort in three ways: to the program, which is delivered in partnership with SOS by buying a special pack of WHISKAS®, which secures Children’s Villages. The initiative teaches children to brush a day’s protection for a tiger; by making one-off their teeth for two minutes, twice a day, by providing donations directly to WWF; and by donating monthly hands-on oral care training, educational posters, tooth to ‘adopt’ a tiger. brushes, and toothpaste.

Funds raised in 2013 are being used to improve conditions The program will run until June 2014; by February 2014, for park rangers who carry out anti-poaching work and over 8,000 young people in Ghana had benefitted from the patrols in the Terai Arc region of Nepal, which is home the campaign’s messages. Wrigley Norway will launch Chew to around 120 adult Bengal tigers. for Change in support of children in Ghana in 2014.

In 2014, the initiative will be expanded to other markets. Using the ORBIT® brand, Wrigley Poland is improving the The global steering committee, comprised of Mars Petcare dental health of children in Poland, where 80 percent of and WWF staff, meets regularly to review progress and children under 12 suffer from cavities. They plan to provide agree plans for the future. more than 6,000 children with free dental check-ups and over 50,000 children with educational courses in 2014.

We aspire to be a great place to work for all Associates around the world. Our distinctive culture is based on our Five Principles, which Working help us work together to grow our business and benefit communities. at Mars

In this Our Approach 45 Section: Associate Demographics 46 The Mars Volunteer Program 47 Progress in 2013 48 Targets 48

44 © 2014 Mars, Incorporated and its Affiliates. All Rights Reserved. MARS Principles in Action Summary 2013 Introduction Our Approach Health & Wellness Supply Chain Operations Brands Working at Mars Working at Mars

We have ambitious plans to grow our business and we need the best talent to succeed. That’s why we must maintain a workplace that is energetic, fun and fulfilling for all Associates – a great place to work.

Our culture provides an open environment for collaboration and career development.

OUR APPROACH commitment to improving our a learning academy by 2014. communities, environment, For example, in 2013, as part Mars Associates prioritize workplaces and business. Learning and of a range of tailored learning collaboration and agreement over Mars Associates say they feel development opportunities, Mars Drinks Academy authority, and are empowered and engaged and motivated when their delivered a Sustainability Basics encouraged to pursue learning achievements are recognized and is essential to course to educate Associates on and development opportunities. celebrated by senior managers and help Associates the sustainability developments This work environment, combined Mars family members. have pride in in drinks products, such as coffee with the Five Principles of Quality, representing certification. These opportunities Responsibility, Mutuality, Efficiency Learning and development is central enable Associates to enhance their and Freedom, helps inspire and to our culture. Mars Associates are our brands and knowledge and skills and develop motivate more than 75,000 curious, independent thinkers who understanding a passion for our brands. Mars Associates. take ownership of driving their what is critically career plan and development, with important to Investing in the growth and Our open plan offices have no doors, support from their managers. Most development of our talented Mars with the most senior managers, learning takes place on the job, Mars - running Associates helps fuel our future including our Presidents, sitting for example through challenging a principles- growth and retain the best and alongside other Associates. This assignments and special projects. based business. brightest people. Because the Five supports effective communication, There is an expectation that an Principles are so important to our approachable leadership, and the Associate’s role and responsibilities culture, we introduce them to development of a strong sense of will change to continuously broaden Samantha Veide, Associates through the ‘Essence community. Mars Associates gain their experience and expand their of Mars’ course at the start of Global Drinks responsibility by demonstrating skills set. This is supplemented their careers. Education Manager capability and performance, not with coaching and mentoring by because of length of service, age, line managers. Associates in every Giving back to people and planet gender, ethnicity, sexuality, religion Mars location can access a wide is important at Mars, and every or physical ability. In exchange for range of learning opportunities Associate is encouraged to make a performance, Mars compensates through the Mars University, positive impact on the communities Associates with competitive rewards from cross-functional skills where they live and work. and benefits. development to award-winning The Mars Volunteer Program (MVP) leadership programs. offers paid time off to make a Our global Make the Difference difference (see case study on Awards take place every other In addition to the Mars leadership page 47), and the Mars Ambassador year to celebrate Associates who programs and functional colleges, Program (MAP) enables Associates to put our Five Principles into action which offer functional and leadership support projects that improve their and bring innovative thinking, skills development, each Mars understanding of the communities fresh perspectives and personal business segment aims to have that support our business.

We prioritize the health and safety of ASSOCIATE DEMOGRAPHICS our Associates and facilities because this is crucial to managing risks effectively and maintaining our license to operate. Associates by Region

It is important to us that Mars 39.9% Americas Associates have channels to share their views and feedback, or highlight 19.3% Asia Pacific concerns. Annually, we conduct an 40.8% Europe, Africa Associate Engagement Survey, and the and Middle East results are used by leaders across the business to create improvement plans that are implemented to maximize the connection, commitment and enthusiasm Associates have for their work.

We also have an Ombudsman program that provides Associates with a confidential mechanism to discuss issues or concerns. It provides every Associate with access to an independent source Associates by Segment of advice, and makes recommendations to management based on key themes 46.2% Petcare identified through the feedback. 4.2% Food

Ensuring that Mars attracts and retains 0.8% Drinks the very best global talent is core to 23.1% Wrigley our ability to deliver on our future ambitions. We also recognize the value 22.3% Chocolate in reducing turnover. We want to create 0.1% Symbioscience an environment where strong performers can make a life-long career at Mars, 3.3% Corporate while still feeling they are learning and growing with each new professional experience.

KEY METRICS

We want to give Associates METRIC 2013 2012 2011 the opportunity to have a long, rewarding career New Associates completing Essence 55.3% 55% 51% at Mars, so we invest of Mars training within 12 months seriously in growth and Associates contacting our Ombudsman 1,603 1,464 1,048 development. This pays for advice about work dividends in the talent and abilities of our team Hours volunteered through MVP and MAP 75,138 52,880 >41,500 and the retention of the Women in management positions 40% 38% 38% best and the brightest.

Paul S. Michaels, In 2013, 99 Associates spent Nearly 19,000 Associates around Paul S. Michaels between one and six weeks the world spent almost 70,000 Office of the President taking part in the Mars hours volunteering, reaching Mars, Incorporated Ambassadors Program (MAP). around 28,000 people and over 5,000 pets through the Mars Volunteer Program (MVP).

More than 200 Petcare Associates from across the globe volunteered at an animal shelter in Irvine, California, U.S.

MVP 2013

The Mars Volunteer Program and 15,000 pounds of pet food to local Through the people and pets in need. hard work of

Through the Mars Volunteer Program (MVP), Mars Drinks UK achieved a record annual more than 200 Associates have the opportunity to put the 600 percent increase in time volunteered volunteers, we Five Principles into action for up to two (over 1,140 hours) in 2013 through MVP, transformed this paid working days a year, volunteering in including 150 hours of Associates’ shelter. In just a communities where they live and work. personal time. few hours, we In 2013, nearly 19,000 Associates around the Wrigley had more than 7,800 Associates connected with world spent almost 70,000 hours volunteering, participate in MVP at 67 sites – a 30 percent one another, and reached around 28,000 people and over increase from 2012. In Poland, over 200 brought our 5,000 pets through their activities. Associates helped to restore a local forest by cleaning litter and preparing the trees for vision to life, and More than 200 of the most senior Petcare winter, and a team in Nairobi planted 750 improved the Associates from around the world came seedlings in support of a local school. quality of life for together for a bi-annual Petcare meeting in these pets while Irvine, California, and refurbished a local pet For the second year, the Mars Food Nordics shelter as part of their MVP activities. In total, team hosted the “Nordic Favorite Meal they wait to they gave 400 hours of their time and helped Championship,” collecting almost 9,000 meals be adopted. 126 pets. Elsewhere in the U.S., Associates for the homeless in Denmark, Sweden, Norway from the Chocolate sales site in Bentonville, and Finland. Arkansas, helped refurbish a local women’s Larry Allgaier, shelter, and Associates from the NUTRO® site President of Mars Petcare, in Franklin, Tennessee, partnered with Meals North America on Wheels to deliver more than 500 meals

TARGETS

Female Managers

Increase the percentage of Mars managers MANAGERS who are women and the percentage of women at more senior levels (ongoing target).

PROGRESS: The proportion of women in management increased to 40% (from 38% in 2012), and women in executive positions increased to 28% (from 27% in 2012).

Top 80th Percentile ASSOCIATE CASE STUDY ENGAGEMENT Score in the top 80th percentile of companies SURVEY that use the Gallup survey of engagement A Great Place to Work, and in the top 80th percentile for our efforts to implement the actions identified in the All Around the World survey (ongoing target).

In November 2013, Mars was ranked 22nd in the PROGRESS: first World’s Best Multinational Workplaces list We scored in the 70th percentile in 2013. by the Great Place to Work® Institute. We were also ranked 16th on the 25 Best Multinational Workplaces in Europe list.

Popular news website, Buzzfeed, listed Mars as PROGRESS IN 2013 Around 150 Associates and third out of twenty companies with the coolest segments, representing all Mars employee perks, highlighting access to free candy Mars continues to be considered regions, were invited to attend the and bringing your pet to work. a great place to work by external finalists’ celebration events at our stakeholders, and the 2013 McLean, Virginia, headquarters In 2013, Mars was recognized by 19 Great Place to Associate Engagement Survey in the U.S., where they presented Work® lists including (with ranking as applicable): results show that 70 percent their projects to the Mars, Argentina (6), Austria (4), Belgium (5), Brazil (24), of Associates at Mars are fully Incorporated Leadership Team and Central America (5), Chile (8), Denmark (14), engaged (connected, committed members of the Mars family. Finland (8), France (3), Greece (5), Ireland (1), and enthusiastic about their Italy (3), Japan (25), Korea, Poland (7), Portugal (7), work). We believe that every In 2013, 23,742 Associates received Spain (10), Switzerland (9) and the USA (95). Associate deserves to have a great 388,620 hours of training through line manager, and the results of the Mars University, and 130,835 We are also featured on other national workplace the survey confirmed that the hours of leadership training lists including Australia (Aon Hewitt), Mexico role of the line manager and the was delivered through the (6th in Super Empresas), New Zealand (Kenexa Best local team level environment Leadership@Mars and the Workplaces Award for the Medium-Large Workplace have a big influence on Associate Accelerated Leadership programs. category), Thailand (Aon Hewitt), and the United engagement. To further assist our Of the 18 global participants in Kingdom (58th in Times Top 100 Employers). leaders in this area, we developed our Women in Sales Leadership a toolkit featuring best practice program, most have been promoted for engaging, motivating and or have assumed expanded supporting Associates that has been responsibilities in the past year. circulated to all line managers. We are currently identifying the The dedication and talent of our next cohort, and because long-term Associates was evident in the more development is so important, we than 26,000 Make the Difference are also working to ensure that this nominations received in 2013 course integrates seamlessly with for projects that demonstrate other learning opportunities, such commitment to living by our Five as the Sales College program. Principles in a variety of ways.

Our work to create a more diverse and inclusive workplace has gained significant I was very proud to momentum in North America. represent my country at A cross–segment task force the Make the Difference was created to develop and roll-out a common approach regional and global to promoting diversity and events. It was such a big inclusion across the business. responsibility because They developed a common there were many great mission, strategic framework, definitions for key terms, projects from around CASE STUDY guiding principles, and metrics. the globe! Segments used Associate Mars Ambassadors I had the chance to talk to feedback to complete a Rehabilitate Marine every participant and hear self-assessment of how they Environment in Indonesia perform in this area currently. how they put the Mars These insights informed the Principles into practice development of segment- Brightly colored tropical fish look good in specific diversity and inclusion with their projects. living rooms, and some are even considered action plans, all of which And hearing from the delicacies, but increased demand has had included three focus areas: Office of the President, serious consequences for marine life securing a pipeline of future Paul S. Michaels, at the around the world. talent; seeking and celebrating differences while building gala dinner made me Destructive fishing techniques, used to meet common foundations; and feel that I belong here - increasing demands for commercial fishing, building skills for inclusive I want to keep on making harm the protective reef environment and leadership. These efforts the difference, because are also damaging for communities. produced tangible results in 2013, with most U.S. segments it matters to us, to our Associates from different segments and recording a two percent business and to locations have been coming together in increase in representation of our communities. Indonesia as part of the Mars Ambassador women and ethnic minorities. Program (MAP) to learn about how Mars is helping affected fishing communities. Our Ombudsman program Deise Grosso, Through partnerships with key community has continued to grow, with organizations, the local Mars Indonesian team Mars Petcare, Brazil the service now extending supports the implementation of interventions to all Wrigley and BANFIELD® to help meet demand sustainably, without the Associates. Associates told need for harmful fishing practices. us they prefer to talk to Ombudsman advisers in their For example, seahorse and abalone farming own language, so we now The Essence of Mars production units were established to provide a have Russian and Chinese training had the greatest legal, certified and sustainable way for families speaking advisers. The number to increase their incomes. Our Ambassadors of Associates contacting the impact on me during my learned about, and helped install, specially Ombudsman has increased onboarding process. designed systems to rehabilitate reefs. because of our efforts to make It helped me to understand the service more accessible. more about the Principles The project has helped the community plan for the future and embed practices that will and how to do business provide long term economic benefits for the Mars way. people, while protecting this unique marine environment. The project was part of a larger Mars program selected as a finalist for the Associate, Secretary of State’s 2013 Award for Corporate Excellence in the U.S. Mars Petcare, Asia-Pacific

We are committed to continually improving the Principles in Action Summary and look forward to receiving feedback from our stakeholders. For additional information, to view previous reports or to provide comments, go to mars.com or follow us at /Marsglobal.