INTRODUCTION OUR APPROACH HEALTH & WELLBEING SUPPLY CHAIN OPERATIONS BRANDS WORKING AT MARS Principles in Action Summary 2014 Principles in Action Summary 2014 INTRODUCTION OUR APPROACH HEALTH & WELLBEING SUPPLY CHAIN OPERATIONS BRANDS WORKING AT MARS Welcome to our 2014 Contents Principles in Action Summary. We are excited to show you how Mars Associates are Introduction Our Operations putting The Five Principles of Mars in a moment 03 Tackling our footprint 33 Quality, Responsibility, Mutuality, Letter from the Office of the President 04 Becoming Sustainable in a Generation 34 Extending sustainability across Efficiency and Freedom into our business segments 35 Our Approach to Business action to make a difference Targets and progress 36 How we work 06 to our business, society and Letter from the Chief Sustainability and Our Brands the environment. Health & Wellbeing Officer 09 Prioritizing and partnering on sustainability 11 Delivering brands with strong values 40 Investing in science and ensuring quality 13 Communicating responsibly 40 Visit our website to learn Leveraging our brands for good 41 more about how we are Health and Wellbeing Targets and progress 41 improving health and wellbeing Tackling health and wellbeing challenges 17 Working at Mars and advancing sustainability, Evolving our health and wellbeing strategy 18 and why Mars is such a great Targets and progress 21 Striving to create a great workplace 45 Training, developing and recruiting the best 46 place to work. Our Supply Chain Targets and progress 47 Working toward sustainable growth 24 Putting our strategies into action 25 Targets and progress 27 2 / 50 © 2015 Mars, Incorporated and its Affiliates. All Rights Reserved. Principles in Action Summary 2014 INTRODUCTION OUR APPROACH HEALTH & WELLBEING SUPPLY CHAIN OPERATIONS BRANDS WORKING AT MARS Mars in a moment PH Petcare Chocolate The company’s objective is the manufacture and distribution of food products in such a manner OPERATIONS IN as to promote a mutuality of HQ 413 services and benefits among SITES 73 Global HQ COUNTRIES in McLean, all stakeholders. Virginia, USA 1911 — FORREST E. MARS, SR., 1947 11 Frank C. Mars made the first Mars candies Food $ BILLION in his Tacoma, BRANDS Washington kitchen More than 100,000+ C H $33bn O SUPPLIERS C net sales O L A PRIVATE T FAMILY-OWNED E E COMPANY R A C T E P Symbioscience Drinks TOTAL SALES Y F LE OO IG D WR 3 / 50 © 2015 Mars, Incorporated and its Affiliates. All Rights Reserved. Principles in Action Summary 2014 INTRODUCTION OUR APPROACH HEALTH & WELLBEING SUPPLY CHAIN OPERATIONS BRANDS WORKING AT MARS As every Mars Associate will tell you, it’s wonderful to Texas. This is the largest commitment to renewable energy make products that bring so many moments of joy to ever made by a global food manufacturer, and it will provide millions of people and pets around the world. I’ve been wind energy equivalent to powering our entire US operations. with Mars for 27 years. Over that time, I’ve seen our business grow dramatically, while keeping the same strong Even our brands are getting in on the action. Whether it values – The Five Principles – at the heart of our culture. is encouraging proper disposal of wrappers and gum or helping wild tigers through the work of WWF, we have an I am part of a long line of stewards at Mars. More than 70 opportunity to engage with consumers through our brands. years ago, Forrest E. Mars, Sr. set out to build a business that created mutual, enduring benefits for all our stakeholders. We continue to wrestle with some daunting challenges. It was an idea ahead of its time. Generations of Mars For example, some of our sites have struggled to Associates have stayed true to this vision, even as we have improve energy efficiency and we don’t expect to grown to be one of the world’s leading family businesses. meet one of our targets on packaging. We are also Delivering growth seeking new ways to improve sustainable agriculture By delivering brands that consumers love, we have the and food security for a growing world population. we are proud of opportunity to grow. In turn, we have the opportunity — and responsibility to create mutual benefits for others. In this 2014 summary, we discuss our progress, what is Associates can create meaningful and lasting careers; working, and where more work is needed. We are continuing Grant F. Reid, our suppliers are able to grow with us by being, and this work in 2015. Our recent partnership with Danone Office of the President helping us be, more sustainable in our practices; and on the Livelihoods Fund for Family Farming will invest in the communities where we operate benefit from projects to help us and others learn how to sustainably the jobs and investments fueled by our growth. source materials from smallholder farmers. An exciting collaboration with the World Food Programme will combat At the same time, we are faced with immense challenges undernutrition in Africa by improving food safety. We recently that we share with society, including climate change, endorsed a recommendation by leading health authorities water scarcity and deforestation. Many of the smallholder that people should limit their intake of added sugars to no farmers who provide our raw materials are not earning more than 10% of total calories, and are supporting a US a living wage. Women farmers continue to lack access Government proposal to include an ‘added sugars’ declaration to adequate finance, training and education. Health in the Nutrition Facts panel on all food packaging. systems are increasingly struggling with obesity, and malnutrition and food contamination remain serious This is a business that has been grown and nurtured by challenges to advancing health and wellbeing. generations of Mars family members and Associates. Today’s team is just as dedicated to leaving a positive legacy for None of this is acceptable. We can, and will, do more. the next generation as those that came before us. I am confident that by working together with critical partners, We don’t just want growth. We want growth that we are including governments, NGOs, scientists, academics and proud of. We know we have work to do to get there, but our our communities, we can not only be a better business, but successes along the way motivate us to improve. For example, a better citizen of the world. In doing that, we will create we have a vision to eliminate greenhouse gas (GHG) emissions growth we are proud of. from our operations by 2040. Last year, we scored a big win on this with Mesquite Creek, our new wind farm in Lamesa, Learn more about our progress in 2015. 4 / 50 © 2015 Mars, Incorporated and its Affiliates. All Rights Reserved. Principles in Action Summary 2014 INTRODUCTION OUR APPROACH HEALTH & WELLBEING SUPPLY CHAIN OPERATIONS BRANDS WORKING AT MARS Our Approach to Business In this How we work 06 Section: Letter from the Chief Sustainability and Health & Wellbeing Officer 09 Prioritizing and partnering on sustainability 11 Investing in science and ensuring quality 13 5 / 50 © 2015 Mars, Incorporated and its Affiliates. All Rights Reserved. Principles in Action Summary 2014 INTRODUCTION OUR APPROACH HEALTH & WELLBEING SUPPLY CHAIN OPERATIONS BRANDS WORKING AT MARS HOW WE WORK create sustainable, lasting benefits. This Our Approach to Business long-term perspective has helped us It’s fun visiting a Mars office or develop a sustainability strategy that is factory. We make tasty chocolates, focused on our material impacts: land gum and confections at some of our use, greenhouse gas (GHG) emissions, sites and delicious drinks, food and water use, income and human rights. No matter where we work, we are united and petfood in others. In many offices, you’ll even meet our pets. Mars Associates collaborate with our guided by The Five Principles: Quality, Responsibility, partners and scientists to tackle the Mutuality, Efficiency and Freedom. Wherever you go, you will find The great challenges facing our society. We Five Principles proudly displayed on are determined to share our learning Every day, Mars Associates strive to operate according our walls, in our documents, and in the – whether it is the unravelling of crop way we work. Quality, Responsibility, genomes or working with leading to The Five Principles to create mutual, win-win Mutuality, Efficiency and Freedom universities on business management unite more than 75,000 of us. They theories based around mutuality. benefits for Mars and all our stakeholders. are at the heart of our business. The Five Principles will help us achieve Our brands – over 115 of them - bring growth we can be proud of. A principled pleasure, nutrition and services to business can bring mutual benefits to people and pets. Their growth creates all its stakeholders. opportunities for Mars Associates, our suppliers, and the communities where we live and work. But as we grow our brands, we must ask ourselves: how can we make our products in a way that makes the planet better, too? Our choices, big and small, add up to a healthier, happier world – and that’s the kind of world we want to share. While we must work in a competitive As we grow our business, we environment, the success of Mars must ask ourselves: how can should never be at the expense, we make our products in a way economic or otherwise, of the people and communities with whom we work. that makes the planet better, Using our Mutuality principle, we’ve too? Our choices, big and small, identified where we can shrink our add up to a healthier, happier environmental footprint and amplify the good we do. Our decisions are world – and that’s the kind of informed by science, and we aim to world we want to share.