Mars Principles in Action 2014

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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

E P Symbioscience Drinks TOTAL SALES

Y F LE OO IG D WR

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.

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

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.

Governance in a family-owned business The Guide will be available in multiple The Mars Leadership Team languages, and global policies will be easily We face many of the same business accessible, for example via a mobile app We all have a shared challenges, opportunities and stakeholder for Associates. Where the risk of non- responsibility to be expectations as our publicly owned compliance is higher, online training on the peers. But we do have an advantage. Guide will be supplemented by face-to- stewards of ethics As a family-owned business, we can face training. All Associates must comply Office of the and integrity at Mars. focus less on quarterly earnings and with the Guide. We will also provide our President As our business more on making decisions that consider business partners with relevant sections the short and the long term. that set our expectations on ethics and continues to grow compliance. The Guide will encourage around the world, We are governed by a Board of Directors Associates to report any concerns without all of us, as Mars that includes members of the Mars family, fear of retaliation. Associates can also Vice President, who work together as custodians of The use the Mars Ombudsman program as an Corporate Affairs President, Associates, should Five Principles. The Board is chaired by independent and confidential channel to and Strategic Global Petcare have the tools Victoria B. Mars. Day-to-day operations report concerns around potential breaches. Initiatives necessary to at Mars are led by Grant F. Reid, Office of the President, together with the Mars Learn more about our Ombudsman Vice President, sustain our values Leadership Team. The Board regularly program in Working at Mars. People and Organization and safeguard meets with and advises the Office of the President, our reputation. President and Mars Leadership Team. It Public policy and advocacy Global Chocolate also frequently consults external advisors Vice President, on business and policy strategies and In our business, we regularly engage Secretary & General Counsel — ASH MISHRA priorities. This includes the Mars Global with governments, trade associations, Chief Compliance Officer, Advisors, an advisory group of experts regulatory bodies and other organizations to Mars, Incorporated from academia, think tanks and business. advocate for policies we believe are good Vice President, President, for our industry, suppliers and consumers. Supply, Research & Wrigley Development and Operating in line with The Five Principles The Mars Global Public Policy Group Procurement ensures that we use globally consistent Our business spans many countries and positions, policies and standards across all Chief Customer President, cultures. Sometimes, we need more aspects of public policy. On all external Officer Global Food, guidance than the Five Principles provide engagements, we follow the policies Drinks and to address business risks and legal in the Mars Guide to Global Standards, European Chief Financial complexities. To that end, our Ethics and Policies and Practices. Policies and position Multi-sales Officer Compliance program, led by our newly statements on issues of stakeholder interest appointed Chief Compliance Officer, will are publicly available on our website. publish the Mars Guide to Global Standards, Chief Marketing Officer Policies and Practices. This will show us how to act when presented with complex ethical and legal issues, and will summarize key global policies, procedures and practices.

In prioritizing public policy Principles and outreach led to ensure food and nutritional sustainability discussions. WHAT MUTUALITY and advocacy, we consider by WWF have strengthened security, and speaking at For example, our Chief MEANS TO ME our level of influence and the dialogue with US utility the Second International Sustainability and Health scale of potential impacts on companies. Conference on Nutrition to & Wellbeing Officer is the people and the planet. In 2014, highlight the link between food Chairman of the Board of our engagements included: ▪▪Signing up to the Trillion Tonne safety and global malnutrition. the World Cocoa Foundation, Communiqué, a statement which represents 80% of the ▪▪Participating in New York urging governments for policy ▪▪Participating in a pilot project global cocoa market and Climate Week as a founding action on reducing GHG initiated by the European promotes a sustainable cocoa member of RE100, a campaign emissions. This builds on our Commission to establish economy. Members of our that asks companies to commit announcement last year to join product environmental sustainability team sit on the to 100% renewable energy. Business for Innovative Climate footprint category rules in the boards of AIM-PROGRESS, Global and Energy Policy’s Climate petfood sector. Action Group of Forestry at ▪▪Helping write WWF and the Declaration. the World Economic Forum, World Resources Institute’s Mars Associates sit on the the Sustainable Agricultural Renewable Energy Buyers’ ▪▪Addressing 300 delegates at the boards of various industry Initiative Platform, The To me, mutuality is Principles to improve International Crops Research organizations and trade Sustainability Consortium, and all about the people. businesses’ ability to buy Institute for the Semi-Arid associations that are at the Sustainable Food Lab. renewable energy. The Tropics on the role of genomics the forefront of policy and I work with people from various backgrounds and we We strongly advocate for policies we believe are good for our industry, all have the same suppliers and consumers. Barry opportunities and Parkin (front row, third from left), our Chief Sustainability and Health & shared benefits. It’s Wellbeing Officer, is on the Board of the World Cocoa Foundation. this mutual treatment of all Associates that makes me proud to work at Mars.

— KEYANDRA LINEBARGER Operations Shift Lead, Mars Drinks

We are a company founded on mutuality. ▪▪Operations: Our first step is to focus on our We strive to deliver growth we are proud of offices and factories, where we have direct by operating in a way that ensures a win-win control. For more than five years, we have for Associates, our suppliers, our farmers and worked to make our operations Sustainable in the communities where we live and work. To a Generation by aiming to eliminate fossil fuel achieve this, we are making sustainability and use, and reducing our water use and waste. health & wellbeing a fundamental part of how we grow our business by driving programs that: ▪▪Sourcing: Mars relies heavily on agriculture. Our sourcing program focuses on improving ▪▪Improve sustainability by using our resources the sustainability of our priority raw materials wisely and responsibly. This will help us reduce and packaging, boosting farmer income, and costs and emissions, improve the productivity, respecting the human rights of everyone in affordability and quality of our critical crops, our value chain. We’ve identified the most Sustainability and health and ensure that farmers earn decent incomes. significant impacts and will set targets across 23 of our most critical raw materials. & wellbeing are integral ▪▪Improve the health of societies and individuals. We want to do this by making ▪▪Brands: Our brands create powerful, engaging to delivering growth great-tasting products that are safe, campaigns to educate and partner with nutritious and can be enjoyed as part of a consumers to champion good causes. We choose — balanced meal. Our consumers should feel causes that resonate with our consumers – Barry Parkin, Chief Sustainability confident about eating our products, and and strive for campaigns that deliver long-term and Health & Wellbeing Officer feeding them to their families and pets. measurable benefits for the causes and for our brands. To be successful, our commitments must be built on strong, scientific principles and To develop the strategies, policies and targets focused on long-term solutions. We are fully necessary to drive progress on sustainability, I supported by the Mars family, the Board and chair a group of talented Associates from across the Mars Leadership Team, who are passionate the business – the Sustainability Leadership about integrating sustainability and health & Team. The team meets four times a year, and wellbeing into our core business objectives. includes business leaders with various areas of expertise, and a senior representative from each How we are improving sustainability of our six segments. The programs we develop are then implemented by business functions Mars has a sizable environmental and social to ensure that all parts of Mars are involved, footprint. Using stakeholder input, we’ve identified engaged and proactive on sustainability. five impacts – land use, GHG emissions, water use, income and human rights – that are relevant to our business. Our sustainability strategy focuses on tackling these impacts across three broad areas of our business:

Finding solutions to health and I report into the Mars Leadership wellbeing challenges Team, which is accountable for our health and wellbeing programs and Across the world, millions of people meets bi-annually with our Board don’t get enough nutrition, while to review our strategies here. As a others struggle with obesity. We are strategic priority for Mars, health striving to do our part by improving and wellbeing targets are included our products and delivering more in our corporate goals and measures. healthy foods, advancing nutritional For example, our objectives include research, promoting oral health and developing our portfolio to better supporting programs that encourage impact consumer health and active lifestyles and healthy diets. wellbeing and leading in quality and food safety. The Mars Leadership But we can do more. Our nutrition Team reviews performance against strategy focuses on: these measures every quarter.

▪▪Information: Providing information Leaving behind a positive legacy so consumers can make informed choices in support of a healthy Our good progress in some areas, lifestyle. such as our Sustainable in a Generation program, has been ▪▪Renovation: Modifying existing encouraging. We are currently products to improve nutritional ramping up our sustainable profiles with no perceptible sourcing program and developing changes to the products themselves. new ways to do our part to tackle public health challenges. ▪▪Innovation: Creating new products that provide consumers with a On sustainability and health & range of healthier options. wellbeing, we have a long way to go before we can celebrate. We are also working with peers, But through the talent of Mars academics, governments and Associates and by using the Mutuality other organizations to improve principle to test the strength of nutrition and strengthen food our actions, I am confident we will security – our new food safety get there. We are taking steps in partnership with the World Food the right direction every day. Programme is a good example. We have big ambitions for renewables - our As Chief Sustainability and Health new Mesquite Creek wind farm in Lamesa, & Wellbeing Officer, I drive our Texas, will provide wind energy equivalent to powering our entire US operations. programs and strategies in this area.

WE MEASURE OUR We used the concept of Planetary Boundaries and information about our value chain to identify the environmental impacts most IMPACTS AND SET relevant to our business: land use, GHG emissions, and water use. Stakeholder feedback and credible external tools and data sources, LONG-TERM TARGETS such as Oxfam’s model of planetary and social boundaries, have informed our material social impacts: income and human rights.

We prioritize the greatest We set long-term targets We track our progress using impacts across our value chain scientifically credible metrics

The world needs to produce enough Our Deforestation Policy targets our four raw 84% of our palm oil can be traced back to the mill. agricultural land to feed its growing materials with the greatest impact on forests: Aiming to map beef, pulp and paper, LAND population, but without cutting beef, palm oil, pulp and paper, and soy. By 2020, and soy supply chains by 2016. down forests. That’s why we want a these supply chains will be deforestation-free. Read more in Our Supply Chain. deforestation-free supply chain.

Climate change affects the crops we We will eliminate GHG emissions from Reduced GHG emissions from our operations by need for our products, and the farmers our direct operations by 2040. 5% since 2007. Developing metrics to measure GHG who grow them. We support global GHG GHG emissions across the supply chain. targets to limit temperature rise to 2°C. Read more in Our Operations and Our Supply Chain.

97% of our water use is for growing our crops, From 2007 to 2015, we will reduce water Reduced water use from our operations by 15% and over a third of our production plants are in use in our factories and offices by 25%. since 2007. Developing new targets for the most WATER high water stress areas. Responsible water use water-intensive sites and raw materials. is critical to maintain our license to operate. Read more in Our Operations and Our Supply Chain.

Over 2 billion people work in the agricultural We aspire to have all the farmers in our Researching farmer income in our supply chain to sector. Better incomes generate mutual supply chain earn an income that gives come up with the right targets and metrics. INCOME benefits – improved livelihoods for farmers and them a decent standard of living. Read more in Our Supply Chain. a secure supply of raw materials for Mars.

Our aim is to respect the human Our Human Rights Policy is our commitment Developing metrics to measure progress in HUMAN rights of everyone in our value chain to identifying, mitigating and preventing respecting human rights across the value chain. and surrounding communities. adverse impacts on human rights, and Read more in Our Supply Chain. RIGHTS taking appropriate remedial action.

TACKLING COMMON Global problems must be tackled collectively. We work with a range of strategic partners to address CHALLENGES TOGETHER our material impacts and explore our business opportunities. Here are some examples:

University of Cambridge World Economic Forum (WEF) Helping to tackle littering Coffee Quality Institute (CQI)

LAND Institute for Sustainability Leadership (CISL) We are a member of WEF’s Wrigley works with a range of Mars Drinks is a founding Global Action Group of Forestry, partners to combat littering. member of the CQI’s Partnership Together with CISL and leading which is working to identify For example, our six-year, $6.8 for Gender Equity, which aims GHG food, beverage and forestry supply chain targets to reduce million partnership with the to better understand the companies, we are working deforestation. The group is Foundation for Environmental impacts of gender inequality on to identify new business providing input into the 2015 Education is helping educate coffee production and develop opportunities that can come United Nations Climate Change over a million students to best practices to prevent it. WATER from protecting Conference in Paris, France. combat litter and waste. We are See more online the environment. See more online working with the International See more online Chewing Gum Association on Heart Health a responsible disposal logo INCOME World Cocoa The Sustainability Consortium Foundation (WCF) encouraging consumers to An innovative public-private “Think Twice” before partnership between Mars throwing away their gum. Symbioscience and Brigham HUMAN We are working with more than Mars Chocolate is working with See more online and Women’s Hospital, Harvard RIGHTS 100 manufacturers, retailers the WCF on its “CocoaAction” Medical School, Fred Hutchinson and other organizations to commitments to increase Sustainable Rice Platform (SRP) Cancer Research Center and the develop standardized science- productivity and support National Institutes of Health based metrics for improved community development for is investigating the health supply chain reporting of 300,000 West African farmers by Mars Food is a member of SRP, benefits of cocoa flavanols consumer products. Our Global 2020. The extensive scale of this a rice industry partnership to (naturally occurring plant Sustainability Director is the public-private partnership will promote resource efficiency nutrients) in promoting heart lead corporate director on the help accelerate improvements and sustainability on farms health and healthy aging. Consortium’s board of directors. in cocoa sustainability. and throughout the rice value See more online See more online See more online chain. We also work with a group of external experts, the Food Scientific Advisory Council (FSAC), on food nutrition and sustainability. See more online

SCIENCE IS ESSENTIAL TO WHAT WE DO Improving pet science Making rice cultivation more sustainable We use science to improve the quality We are investing in our future by funding Our business decisions are shaped by and length of pets’ lives – an aspiration research to grow rice using less water listening to experts and our consumers, we share with all pet owners. In 2014, we and releasing fewer GHG emissions, and informed by sound science. We want to worked with WikiVet, an online veterinary while improving farmer income. In help create a better future for people and encyclopedia, to improve reference 2014, this alternate wetting and drying pets, and science is key to what we do. materials on preventative healthcare technique was corroborated by several The Mars Scientific Advisory Council (MSAC) for students and veterinarians. Our scientific findings and research papers. is a group of internal and external experts WALTHAM® Center for Pet Nutrition also We are piloting the approach in the that provides independent advice on the collaborated with the European petfood Mississippi Delta in Arkansas with farmers opportunities and barriers to progress in industry to investigate safe consumption growing for Mars. Later, we will share human and animal health (including obesity levels of Vitamin A for puppies. this knowledge with other rice growers, and diet-related chronic disease), nutrition particularly in the dryer parts of Europe. research, and sustainability. Its work guides Using genome science our current and future product lines. to improve agriculture Using plant nutrients to improve Examples of our science at work include: age-related memory decline Following our work in cocoa genome Helping Africa grow nutritious crops sequencing, in 2014, Mars was part of an We were part of a research team international consortium that mapped the including Columbia University Medical We run the African Plant Breeding genomes of the peanut’s wild relatives. Center and New York University that Academy with UC Davis and other global The results are online for any scientist to studied the effects of cocoa flavanols partners. It is part of the Mars-funded use to breed peanuts that are affordable, on cognitive health – one of the biggest African Orphan Crops Consortium, and is disease-free and satisfying to consumers. health concerns facing an aging global based in Kenya. Our first class of plant This will help farmers in more than 160 population. The study, published in breeders – four women and 17 men – countries where peanuts are grown. Nature Neuroscience, provided the first graduated from the Academy in 2014, direct evidence that one component of and are helping African smallholder “My work with world class scientists is to deliver Partnering on oral healthcare age-related memory decline is caused farmers breed and grow hardier and more benefits to the pets around the globe”, says Niran Patel, by changes in a specific region of the ® nutritious varieties of Africa’s oldest crops laboratory scientist at our WALTHAM Center for We support independent dental research brain, and that this can be positively Pet Nutrition – helping reduce malnutrition in Africa. through organizations such as the impacted by cocoa flavanols. International Association for Dental Developing the next Research, Top Institute for Food and generation of scientists Nutrition’s Oral Health partnership, and the European Organisation for Caries The Lindau Nobel Laureate meetings in Research. We work with a group of global Germany are an annual gathering of some experts, the Wrigley Science Advisory of the best minds in science, and we have Council, who rigorously peer-review our participated since 2007. In 2014, we hosted science around gum and confections. panels for young economists and researchers on innovation and healthy aging research.

COMMITTED TO QUALITY to improve our products and WHAT MUTUALITY AND FOOD SAFETY services. We hear, and share, our MEANS TO ME consumers’ focus on sourcing raw Quality, our first Principle, is the basis materials safely and preventing of our brand loyalty and consumer food contamination. Delivering trust. Our consumers rely on us to food safety is a pre-competitive ensure our products meet world-class issue from which we all benefit – quality and food safety standards. consumers, peers and our business.

Quality is everyone’s job at Mars, We are building a Global Food and we bring this to life through Safety Center that will open in our company-wide quality strategy. 2015. The center will expand global Our integrated approach to quality knowledge in critical areas of food extends from product design through safety management by capturing, to consumer experience including generating and sharing knowledge. food safety, regulatory compliance Where appropriate, it will contribute You can’t talk about Mars and consumer-relevant product to strengthening government food unless you talk about attributes. It’s aimed at building safety systems. We have already people. When I started, enduring trust and delight. started work through the Center, my conversations with for example, with the Partnership Our Quality Management Process for Aflatoxin Control in Africa and Mars leadership were all framework helps us provide the Global Alliance for Improved focused on supporting consistently high-quality products Nutrition to manage mycotoxins me: “How are you doing and services, and we aim to be in the food supply chain. personally? What are your in full compliance with all legal skills? How can we help and regulatory requirements In 2014, we organized a workshop you be a better Associate, in the markets in which they on mycotoxin food contamination. are sold. In 2014, the EtQ User Participants included the University and a better person Conference recognized us of Cambridge, Bill & Melinda Gates outside of work?” It’s with an Innovation Award for Foundation, Commonwealth Scientific really an Associate-driven using information technology and Industrial Research Organisation, culture, and everyone has effectively to drive quality. US Department of Agriculture, US a voice and a chance to Agency for International Development make an impact. To me, Addressing consumer and IBM. We are also bringing concerns on food safety attention to food safety issues that’s mutuality. on other platforms, such as the Consumers are central to our Asia-Pacific Economic Cooperation — JAMES ‘JR’ SMITH approach on quality. Our Consumer Food Safety Meeting in China, the Manufacturing Support Care centers register over 800,000 Second International Conference Manager, Mars Petcare These Petcare Associates are quality testing SHEBA® and consumer contacts annually, and we on Nutrition in Rome and with the WHISKAS® petfood. It’s by making consistently great quality carefully scrutinize any concerns UN Committee on Food Security. products that we keep our customers and their pets happy.

Health and Wellbeing

In this Tackling health and Section: wellbeing challenges 17 Evolving our health and wellbeing strategy 18

Targets and progress 21

Health and Wellbeing

WeOur brandsmake great-tasting support our productsgrowth, projectthat people our values, feeland helpconfident us connect about eating with ourand consumersfeeding to their familiesworldwide. and Frompets. Weour wantcommitment to ensure to our responsible products FOOD SAFETY contributecommunications to overall and health sustainable and wellbeing. innovation By to our GUIDELINES support for good causes, we’re using our brands working with partners to improve food security We are partnering andto make safety, a differencewe can help to people people lead and healthier the planet. lives. with the World WALKING THE TALK Food Programme (WFP) to improve BRINGING BACK THE the provision of safe, locally- “ORPHAN CROPS” OF AFRICA sourced food in Africa Nearly half of Africa’s population is involved in farming, yet malnutrition and chronic hunger remain widespread. “Orphan crops” – which are traditional to Africa, but largely ignored by science, INNOVATION and not traded internationally – could help. INSTITUTE We are taking a leading role in African Orphan Crops Our Innovation Consortium (AOCC) – a multi-stakeholder partnership Institute for aiming to turn orphan crops into hardy, climate-resilient Food and Health, and nutritious food sources. Plant Breeding Academies in partnership in Ghana and Kenya will develop up to 100 crops, which with UC Davis, will be offered to smallholder farmers throughout will advance Africa. An example is the baobab tree (pictured), discoveries in whose fruit has four times the potassium of bananas sustainable and 10 times the antioxidants found in oranges. food, agriculture and health The AOCC’s Africa-based partners include the African Union (whose heads of state approved the Consortium), the New Partnership for Africa’s Development, the Nairobi-based World Agroforestry Centre, the African Bean Consortium and the Crop Breeding Institute of Zimbabwe.

16 / 50 © 2015 Mars, Incorporated and its Affiliates. All Rights Reserved.Reserved. Principles in Action Summary 2014 INTRODUCTION OUR APPROACH HEALTH & WELLBEING SUPPLY CHAIN OPERATIONS BRANDS WORKING AT MARS

TACKLING HEALTH AND WELLBEING CHALLENGES

To make true Everyone has a favorite Mars chocolate brand. progress, we need We love chocolates too, but we make much more than just chocolate. Our products include an inclusive approach some of the world’s favorite food, drinks, that fuels innovation gum, confectioneries and petfood brands, across disciplines and and we have a large petcare business too. It is through this range of global products sectors, as Mars and and brands that we benefit our consumers. UC Davis have done over the decades Our mission is to provide food that is tasty, safe and nutritious. Some of our products are with uncommon occasional treats, while others can be enjoyed collaborations that regularly as part of wholesome and nutritious connect companies, meals. Our sugar-free gums help improve oral health when chewed after eating and drinking. academia, government agencies and According to the World Health Organization non-governmental (WHO), nearly 600 million adults worldwide suffer from obesity. The Global Nutrition organizations. Report estimates that malnutrition affects every second person in the world. Cocoa farmer, Purity Njagi, and Howard-Yana Shapiro, Mars’ — HOWARD-YANA SHAPIRO MAKING Chief Agricultural Officer It’s not just about today. As populations Chief Agricultural Officer, cut the US PROUD tape during the launch of the at Mars, Incorporated and grow, demand for food is expected to Senior Fellow, UC Davis African Plant Breeding Academy increase by 60% by 2050. In addition, climate in Nairobi, Kenya, which will help change will impact all dimensions of food farmers grow more nutritious, security, including availability, accessibility, resilient crops. nutritional quality and food safety. The African Orphan Crops Consortium We have a role to play in helping solve was awarded the Illumina Agricultural these serious challenges. By improving our Greater Good Initiative grant to help products, offering consumers different identify measures that can increase portion sizes and easy-to-read nutritional crop yields to reduce poverty and information, encouraging scientific discovery, hunger in the developing world. and supporting healthy diets and active lifestyles, we can make a difference.

EVOLVING OUR HEALTH AND Helping people make informed choices WELLBEING STRATEGY Our Food business includes products that Making informed choices begins with the product can be part of an everyday meal. This means The diversity of our portfolio means there is no one single label. We clearly label our products with required approach to improving our entire range of products. ingredient and nutritional information. To make this we have a great opportunity to enhance For product improvements, we consider not only the information even clearer for consumers, in 2008, we fiber content or add more whole grains range of nutrients in a given product, but the product introduced front-of-pack energy labels and back- and vegetables. category, the eating occasion, how frequently it is of-pack Guideline Daily Amounts (GDA) labeling on consumed, and the role of the product in the overall diet. confectionery and food products worldwide. In 2014, we implemented GDA labeling globally on 99% of our For example, because our chocolates and confections chocolate, gum and confectionery and food products. are occasional treats, we work on reducing saturated fats, limiting calories to no more than 250 per portion, In some of our markets, we have gone even further, offering smaller serving sizes, and labeling to help adopting labels developed by governments or NGOs. consumers make informed decisions about how these In the UK, Mars has implemented the government’s treats fit into their diet. We are mindful that whatever voluntary front-of-pack labeling system that uses color we change, we must maintain the taste, quality, and coding to show how much fat, salt and sugar are in each satisfaction that consumers expect from our brands. product. Many of our rice and pasta products carry the Australian Government’s Heart Foundation Tick symbol Our Food business includes products such as rice and and the Whole Grains Council’s 100% Whole Grain stamp. pasta, which can be part of an everyday meal. This means We also support new labeling approaches – for example, we have a great opportunity to enhance fiber content or the US Food and Drug Administration’s proposed “added add more whole grains and vegetables to the diet. We sugars” label in the Nutrition Facts panel on all food are also improving health and wellbeing by encouraging packaging. We believe these approaches should be families to cook together and eat more healthily. implemented in a way that helps consumers interpret the information correctly in the context of their daily diet. And through Wrigley, we focus on improving the oral health of our consumers. The benefits of chewing We market our products responsibly and commit to sugar-free gum are recognized by the FDI World Dental accurately representing our products’ taste, size, content Federation and supported by more than 20 dental health nutrition and health benefits. Our Mars Marketing Code associations worldwide. In 2014, chewing sugar-free gum lays out our marketing commitments, including not was included as an official scientific recommendation marketing to children under 12, barring joint promotions by the German Dental Association. Our recent modeling with alcohol and tobacco brands, not condoning study in Germany assessed the economic and health excessive consumption, and ensuring our communications benefit potentials of sugar-free gum. We found that encourage healthy, balanced diets and active lifestyles. German patients who increase their consumption of sugar-free chewing gum from 100 to approximately 200 Wrigley is committed to improve oral health pieces per year see improved dental health and reduced on a global scale. Here, a schoolteacher in annual treatment costs for caries by over $85 per person. Ghana, trained by Wrigley as part of the Chew for Change program, teaches primary school children how to keep their teeth healthy.

Improving our products hot chocolate option for our KLIX® vending machines, with 52% fewer calories than the We look for ways to strengthen the nutritional regular version. content of our products to help consumers achieve their nutrition and wellbeing ▪▪Sodium: Between 2007 and 2012, we goals, while ensuring they deliver the reduced sodium in our food products by great taste that consumers expect. We’re 25% globally. We have since strengthened making progress toward our targets on: this commitment. In the UK, we signed up to the Department of Health’s 2017 pledge ▪▪Trans-fats: We reformulated many of our to reduce salt consumption to less than six confectionery products globally to reduce grams a day. The soups we offer through trans-fat. In addition, we have committed to Mars Drinks’ KLIX® vending machine were remove partially hydrogenated oils, a source also reformulated to reduce sodium. of trans-fats, from all our products by the end of 2017. To help improve diet quality, we are increasing vegetables, fiber and whole grains in our ▪▪Sugar: We support the position that energy food products. We created UNCLE BEN’S® (calorie) intake from sugars should be limited, Rice and RÁRIS® whole grains with more in line with a number of organizations and fiber for consumers who find it difficult to public health authorities. This includes the get enough fiber in their diets. Similarly, our recent recommendation by the WHO to limit DOLMIO® range of pasta sauces now contain the intake of free sugars to less than 10% of the equivalent of one serving of vegetables in total daily energy (calorie) intake. Through every portion, helping consumers achieve one product changes and clear, consistent of their five-a-day. Through our reformulation labelling information, we are helping work with the Heart Foundation of Australia, consumers achieve their goals of a healthy each person on average consumes an additional balanced diet. one kilogram of vegetables per year as part of the MASTERFOODS® brand. We have also ▪▪Saturated fats: Through reformulation and developed GOODNESSKNOWS®, the first portion size changes, many of our popular fruit-and-nut snack product in the US to brands, such as MARS®, TWIX®, SNICKERS®, deliver 100 mg of cocoa flavanols – naturally MILKY WAY® and TOPIC® bars have reduced occurring plant nutrients shown to have saturated fats. health benefits – in each 150-calorie serving.

▪▪Calories: In 2014, 99.8% of Mars Chocolate We know that over two billion people are or confectionery products were no more estimated to be deficient in one or more Many of our products, like UNCLE BEN’S® rice and than 250 calories per portion. The next micronutrients. Since 2007, Mars Food has RÁRIS® whole grains, are reformulated to include step is to increase the number of chocolate provided our fortified ROYCO® soup to more more fiber and whole grains. We always ensure confectionery products that are 200 calories than 300,000 low-income, undernourished that the quality and taste remain great, too. or less per pack. In the UK and Germany, our people in South Africa every month. This Drinks business introduced a reduced calorie product is fortified with minerals and

vitamins, making it nutritionally balanced Launching our new venture capital Building healthy communities ▪▪ WHAT MUTUALITY and nourishing. In 2014, we served our fund, Mars Grand Challenges Ventures, MEANS TO ME 18.5 millionth cup of fortified soup. which is focused on investing in We support programs that encourage healthy new businesses and technologies to diets and active lifestyles. We develop We have led research on cocoa flavanols tackle challenges in food security some of these programs, while others are for over two decades, and know that these and sustainable agriculture. created by independent groups with relevant plant nutrients can play an important role expertise. Some examples are below: in supporting health, even as we age. The WHO estimates that foodborne In 2014, our COCOAVIA® brand rolled and waterborne diarrheal diseases ▪▪In Europe, we work with European EPODE out the latest generation of its dietary kill an estimated two million people Network and EPODE for Health Equity. supplement, featuring 375 mg of cocoa annually, including many children. We EPODE is the world’s largest obesity flavanols per serving – 50% more cocoa agree with the UN agency’s statement prevention network, and we contribute flavanols than the previous formulation. that food safety, nutrition and food to its research on how economics and security are “inextricably linked.” culture influence habits such as consuming Partnering to improve Problems can come from a number of fruits and vegetables and watching nutrition and food security sources, including crop contamination, My job is a privilege - I television. This enables them to tailor processing issues, and even adulteration work with the latest health programs to help entire communities. Tackling global challenges requires in the global food supply chain. and nutrition science to collaborations that are diverse, ambitious make sure our products ▪▪There is evidence that families that cook and comprehensive. Our dedicated corporate We are partnering with the World Food contain the healthiest, and eat together are healthier. Mars innovation function engages with external Programme to improve the provision of tastiest ingredients and our Food’s Ben’s Beginners campaigns includes experts on scientific research and helps safe, locally sourced food to those in customers can eat them a cooking competition for children and with new product development. Together, need in Africa. In addition to sharing our as part of a balanced diet. their parents, with a chance to win prizes we are driving innovation and discovery in food safety knowledge and expertise, Through the Mars Volunteer for their schools. In the US, this includes nutrition, health and food safety, including: we hope to learn from WFP’s decades Program, when my team $10,000 of cooking equipment, and in of experience as the world’s largest of Associates cooked for other markets, winners are awarded ▪▪Establishing the Innovation Institute for Food humanitarian agency fighting hunger and homeless people in Antwerp, kitchen makeovers or after-school and Health with University of California, work together to deliver lasting, positive Belgium, I was able to share programs. In 2014, we continued our Davis. It is the first hub of its kind to change. And Mars and IBM Research this knowledge with people partnership with the UK Department of deliver big-impact, Silicon Valley-type have established a consortium that will who need it most. Moments Health’s Change4Life campaign, which breakthroughs from lab research to new use genetic data to better understand of happiness created from provided £250 million worth of vouchers product development in food, agriculture and improve food safety. Through this nutritious, affordable food – for healthier food and activity. and health. research, we are hoping to revolutionize to me, that’s mutuality. food safety and provide a powerful tool ▪▪More than 87 million people in the ▪▪Helping establish a new center at the to identify and tackle new threats. — FANG LAN LIE Philippines suffer from tooth decay. Washington University School of Medicine in Global Senior Ingredient Through a grant from the Wrigley St. Louis, Missouri. The center will improve Experts from the Mars Global Food Scientist, Mars Food Company Foundation, the Philippines food security and global health by linking Safety Center have also published Dental Association will have 100 new efforts to develop more nutritious foods studies related to food safety issues, portable dental units for their oral care with discoveries gleaned from the gut. such as managing mycotoxins, in outreach program that treats nearly six leading scientific journals. million patients a year. The Foundation

also awarded Save the Children a $3.6 TARGETS AND PROGRESS We are working million grant to teach more than 300,000 with our partners to students and community members across six countries better oral health practices. drive innovation and GDA LABELING discovery in nutrition, ▪▪In 2014, we helped conduct a nationwide health and food safety. oral health survey in Kenya, in TARGET: Implement GDA nutritional labeling on most of our partnership with the Ministry of Health, chocolate and confectionery globally by year-end 2013, and the University of Nairobi and WHO. The continue to roll out GDA labeling across our food portfolio by survey seeks to establish the burden, year-end 2014. causes and quality of life issues related to oral diseases and oral health care. The PROGRESS: Implemented GDA nutritional labeling on 99% of our results will help the Kenyan government chocolate, confectionery and food portfolios. develop policies to improve oral healthcare in the country as part of its development blueprint, Vision 2030. SODIUM ▪▪We know that owning pets can have health benefits for people. In 2014, we TARGET: Reduce sodium levels in Mars Food products globally published the results of our study on by an average of 25% by 2015, from a 2007 baseline. the effect of pets on older adults in the American Journal of Alzheimer’s PROGRESS: Between 2007 and 2012, we reduced sodium in our Disease & Other Dementias. The study food products by 25% globally. Almost 70% of Mars Food products showed that a visiting dog enhanced also meet regional target levels for sodium. or preserved the physical, behavioral and emotional function of residents in an assisted living facility. Another study highlighted the benefits of pets 250 CALORIES PER PORTION on children with autism. Parents and teachers reported improved social skills, TARGET: Not offer any Mars Chocolate or confectionery products increased interest in attending school, that exceed 250 calories per portion by the end of 2013. and a decrease in social withdrawal. PROGRESS: In 2014, 99.8% of Mars Chocolate and confectionery products met this target. Due to labeling rules in Canada, some products remain above 250 calories per portion. We are looking into options to address this gap.

Our Supply Chain

In this Working towards Section: sustainable growth 24 Putting our strategies into action 25

Targets and progress 27

22 / 50 © 2015 Mars, Incorporated and its Affiliates. All Rights Reserved.Reserved. Principles in Action Summary 2014 INTRODUCTION OUR APPROACH HEALTH & WELLBEING SUPPLY CHAIN OPERATIONS BRANDS WORKING AT MARS

Our Supply Chain WALKING THE TALK RAMPING IT UP FOR SUSTAINABLE PALM OIL

We’ve been sourcing certified palm oil since Climate change impacts, land degradation and 2010. How could we go further to ensure full traceability and strengthen protection of forests poor agricultural practices can harm harvests and and respect for human and labor rights? farmer livelihoods, and make it difficult for us to TRACEABLE We became a member of The Forest Trust (TFT), an source quality raw materials. We aim to source PALM OIL NGO that helps companies build ethical and transparent supply chains. Mars and TFT work with smallholder sustainably to ensure a long-term supply of raw 84% of our palm oil farmers and other suppliers to ensure our palm oil source materials, and to improve incomes and respect is now traceable is responsible and deforestation-free. By year-end 2014, to known mills all our direct suppliers of palm oil provided written the human rights of farmers who supply us. commitments to our sourcing charter, and agreed to provide a Traceability Declaration Document detailing the mills and any bulk refineries they source from. CERTIFIED SOURCES Due to the vast and complex nature of palm oil supply chains, it is important that we prioritize our 100% of Mars Drinks’ actions. Working with TFT, we conducted a desk- ALTERRA® Coffee based analysis of 250 Malaysian mills to identify areas Roasters coffees, 32% most in need of transformation. The results will help of our black tea, and us work with suppliers to develop field engagement 36% of our cocoa are plans for mills in these high-priority locations. from certified sources In 2015, we will continue to push for a fully traceable palm oil supply chain. We will also support our suppliers in conducting field SUSTAINABLE assessments to understand – and improve – social FISH and environmental practices in palm oil plantations and farms, for a truly transformed supply chain. 26% of our fish and seafood are from sustainable sources

See more about targets and progress

23 / 50 © 2015 Mars, Incorporated and its Affiliates. All Rights Reserved.Reserved. Principles in Action Summary 2014 INTRODUCTION OUR APPROACH HEALTH & WELLBEING SUPPLY CHAIN OPERATIONS BRANDS WORKING AT MARS

WORKING TOWARD We’re using input from our external SUSTAINABLE GROWTH partnerships and our knowledge of geographical risks to identify the We’re tackling the most significant five impacts relevant for each of the environmental and social impacts in our 23 targeted raw materials. This will supply chain to help us grow sustainably. help us develop the most effective Our business segments work in partnership goals, policies and implementation with experts, farmers and community plans to mitigate each impact. groups to address challenges together. For example, our plan to tackle Developing our new sustainable deforestation is a good demonstration sourcing strategy of our approach to tackle land use and GHG emissions. We have clear goals Since 2007, we have focused our and implementation plans for the raw sustainability efforts on packaging and materials where deforestation causes eight raw materials: black tea, cocoa, the most concern: beef, palm oil, coffee, fish, mint, palm oil, peanuts and paper and pulp, and soy. By 2020, our rice. In 2014, we added commitments commitments and impacts-based approach on beef, paper and pulp, and soy as will enable us to make rapid progress part of our Deforestation Policy. on eliminating deforestation in the most sensitive areas of our supply chains. Our updated sourcing strategy will cover 23 raw materials (including those listed Many risks in our supply chain are above), covering 60% of our sourcing linked to environmental degradation volume. The strategy will tackle the five and climate change, but potential impacts most material to our supply chain social impacts are also concerning. We and stakeholders: released our Human Rights Policy in 2014, and have also appointed a Human Environmental Rights Director. In accordance with the UN Guiding Principles on Business and Land use Human Rights, we will implement a due GHG emissions diligence process to identify, mitigate Water use and remediate adverse impacts on human rights in our supply chain. Social

Income Sustainable sourcing means not only Human rights producing high-quality raw materials with limited environmental impacts, but improving livelihoods, education, and equality in the communities they come from.

PUTTING OUR STRATEGIES We also work directly with farmers, and as Finding strength in partnerships INTO ACTION part of our Vision for Change program, have so far built 16 Cocoa Development Centers Working with many external organizations Working with smallholder farmers (CDCs) and 52 Cocoa Village Centers (CVCs) enables us to acquire skills and build valuable in Côte d’Ivoire. CDCs educate farmers on knowledge and relationships. These are vital The Food and Agriculture Organization estimates managing their land and crops efficiently, and – they help shape our approach for maximum that 84% of the 570 million farms worldwide CVC operators provide farmers with good- effect, and connect us with the farmers and are less than two hectares and are owned and quality plants, fertilizers and pesticides, and workers in our supply chain. run by families. These smallholdings, found help with training and business management. mainly in low-income countries, support Some of our partnerships include: more than two billion people worldwide. Together with Basmati rice farmers in Pakistan, we are working on a contract-farming sourcing Fairtrade and Mars Chocolate Many of our raw materials, including cocoa, program to introduce alternate wetting and coffee, and tea, are grown by smallholder drying, an irrigation technique that reduces In 2014, we announced a new commitment farmers. Because of the small size of their water and GHG emissions and improves yields. to source Fairtrade-certified cocoa for holdings, they’re particularly vulnerable to We’re also joining the Swiss development all MARS® bars in the UK and Ireland – an climate change impacts, water stress, soil organization, Helvetas, in a project to improve important step to achieving our 2020 goal degradation, and plant diseases. Poor training water efficiency and productivity for rice of only sourcing 100% certified cocoa. and lack of access to markets and technologies growers. Nearly 1,000 Pakistani rice farmers also result in lower yields and lower incomes. will directly benefit from this initiative. Our Through this program, we’re seizing the We work with experts and community groups local partners include international rice opportunity provided by a new Fairtrade to improve farmers’ resilience and livelihoods, company Rice Partners Limited, and the Foundation label for cocoa only. Cooperatives and also to help secure a sustainable and high nonprofit International Rice Research Institute. will be able to invest the premiums they earn quality supply of raw materials for the future. By teaming up with partners, from Fairtrade products into a productivity Together with Danone, we launched and working on the ground package, including training, fertilizers and We apply science to sourcing challenges. The Livelihoods 3F, a mutual investment fund with farmers, we will improve high-yielding and disease-resistant crops, productivity and working conditions Mars Center for Cocoa Science (MCCS) in Bahia, that will invest €120 million over 10 years on enhancing farmer yields and incomes. in the supply chain, including on Brazil, leads our work on cocoa breeding, smallholder farmer projects in Africa, Asia and these tea plantations in Kenya. agroforestry systems, and land rehabilitation. Latin America. The Fund has three objectives: SRP and Mars Food Through MCCS, we’re supporting various initiatives to sequence the genomes of key ▪▪Economic: Increase crop yields Mars Food is a member of the Sustainable Rice crops, including cocoa and peanuts. This and farmers’ incomes Platform (SRP), an industry collaboration that information is shared with breeders, who can will develop a globally applicable set of rice use it to identify traits of disease resistance, ▪▪Social: Empower farmers, sustainability standards. The SRP is creating 11 enhance yields, pursue efficiency in water especially women, and improve the socio-economic and environmental indicators, and nutrient use, and improve climate change livelihoods of farming families including water efficiency, GHG mitigation, adaptability. This should lead to healthier, child labor and women’s empowerment. stronger and more productive plants that ▪▪Environmental: Promote responsible farming Together with rice growers, buyers, producers, can improve farmers’ yields and incomes. practices and technologies to improve processors, retailers, governments and NGOs, climate change resilience. we’re sharing best practices and partnering to improve standards across the rice industry.

Our local partners in SRP include ETP and Mars Drinks RESPONSIBLE SEAFOOD SOURCING the Department of Crop Production in South Vietnam, the Indonesian As a member of the Ethical Tea Percentage of wild-caught seafood from sustainable sources by geographic region Center for Rice Research, and Partnership (ETP), we’re working the Thailand Rice Department. together to make the tea industry better for tea producers, workers North America Europe Asia Pacific ASI and Wrigley and the environment. ETP represents more than 50 brands Wrigley engaged Agribusiness Systems in over 100 countries. We also International (ASI) to map our partner with ETP to support our mint supply chain in India, which direct sourcing program, which provides the mint oil for our gum focuses on energy reduction 100% products. ASI strengthens supply and climate change mitigation 12% 26% chain relationships by helping identify for tea production in Kenya. SUSTAINABLE multiple investment opportunities IN 2014 and assisting farmer access to MSC and Mars Petcare finance. Our partnership will develop programs on water management, soil We’re proud to feed over 400 million health, and revenue generation for cats and dogs around the world. smallholder mint farmers – which will Fish is a key ingredient in many of feed into our sustainable agricultural our petfoods, but according to the 10% 2011 2% 2011 0% plan for mint sourced in India. Food and Agriculture Organization, 47% 2012 4% 2012 2% 87% of fisheries are reaching the 70% 2013 8% 2013 10% 100% 2014 12% 2014 26% limits of their capacity. Since 2011, we’ve worked with the Marine Stewardship Council (MSC) to source Working with fish sustainably. The MSC has a global Wrigley in India has reach with over 200 certified fisheries in more than 100 countries, covering allowed us go deeper nearly 100 species. Through this OUR PROMISE into the mint value partnership, we have introduced chain and help shape MSC-certified fish in our SHEBA® We will only use fish from wild stocks that are not and WHISKAS® lines in Europe. threatened or are responsibly farmed. We will technical assistance We’ve also removed endangered 2050 replace all wild whole fish and fish fillets with fish by-products and responsibly farmed seafood programs that will species such as Chilean sea bass The year by and swordfish from our products. products. We will develop and use alternatives to empower smallholder when scientists marine fish ingredients. mint farmers. believe global fish populations may collapse. — ANA BILIK President, ASI

TARGETS AND PROGRESS We’ve had some successes and a few setbacks on our sourcing commitments. We celebrate our Outer ring: 2014 progress 1/2 successes, learn from our mistakes, and aim to develop better and more ambitious commitments. Inner ring: 2013 progress

100%

2014 2014 2014 2014 10%

26% 30% 73% 32% 36% 32%

BLACK TEA COCOA COFFEE FISH AND SEAFOOD MINT

100% from certified 100% from certified 100% from certified 100% from sustainable In 2014, a team of external experts, sources by 2015 sources by 2020 sources by 2013 sources by 2020 including leading academics, technical advisors from the Mars In 2014, 32% of the black tea in We’ve increased our purchase In 2014, we met our commitment Seafood is an important source of Science Advisory Council and other our Bright Tea Company range of certified cocoa to 36% of to source 100% of Mars Drinks’ nutrients in our petfood. It’s also a cross-segment specialists conducted came from certified sources. total volumes, moving closer ALTERRA® Coffee Roasters primary protein source for more a thorough assessment of the Since then, we have made to our target of 100% certified coffees from certified sources, than one billion people. We’re on Wrigley mint program. They significant progress, and in March cocoa by 2020. In November including Rainforest Alliance and track to fulfil our target of only identified priority areas of work to 2015, we met our 100% 2014, our Vision for Change sustainable farming program sourcing 100% sustainable fish by ensure a sustainable supply of mint. certification target. Certification program received the EU- UTZ Certified. Independent 2020, reaching 26% of our seafood brings significant mutual benefits Africa Chamber of Commerce’s certification means better in 2014. We use fish more The Wrigley Company Foundation’s to the tea industry’s customers, Sustainable Economy Award. outcomes for the environment efficiently in our products, replace three-year, $1 million partnership growers, communities and the We also joined CocoaAction, and decent working conditions vulnerable species with abundant with Indian education non-profit, environment. This includes a campaign launched by the for the people growing, ones, and purchase only from Pratham, has reached more than preventing soil degradation, World Cocoa Foundation to harvesting and processing verified sources. This helps protect 10,000 children in mint-farming promoting sustainable water improve the livelihoods of the raw coffee beans. biodiversity, manage costs and districts in Uttar Pradesh, India. management, and developing fair 300,000 cocoa farmers in improve supply security. By These communities provide many working conditions and wages. Ghana and Côte d’Ivoire. working with the MSC, the of the raw materials for Wrigley’s Monterey Bay Aquarium’s Seafood products. By 2016, we aim to help Watch, and others, we’ll ensure a more than 62,000 young people long-term, sustainable, nutritious improve their reading and supply of food for our pets. mathematics skills.

TARGETS AND PROGRESS Outer ring: 2014 progress 2/2 Inner ring: 2013 progress

+10% 0.1% 100%

2014 2014 2014 2014 84% 82.5%

RECYCLABLE PACKAGING PACKAGING MATERIALS PACKAGING WEIGHT PALM OIL RICE

Design our packaging Increase the level of Reduce packaging 100% from certified Currently we purchase less than to be 100% recyclable or recycled content in our weight by 10% by 2015, sources by 2015 0.5% of the total volume of the recoverable by 2015 packaging by 10% by 2015, from a 2007 baseline global rice supply. While our from a 2007 baseline In 2013, we achieved our target leverage is small, we’re working In 2014, 82.5% of our packaging Although not on track to achieve of sourcing only material certified with the industry through the was recyclable or recoverable, We’ve achieved our target to this goal, we have learned via the Roundtable on Sustainable Sustainable Rice Platform to where infrastructure exists. increase the recycled content of many important lessons on the Palm Oil’s mass-balance program. create a more responsible rice Although this is a slight decrease our packaging by 10%. This year, way. We now realize that solely We’ve now gone further, requiring supply chain. We’re collaborating on last year, we are making 36.7% of our packaging is from pursuing lighter materials is not all of our suppliers to with peers on the Sustainable good progress in this challenging recycled content, compared to always the best option: some demonstrate full traceability and Agriculture Initiative Platform’s area, and we remain on track 41.2% last year – but still well packaging materials, while only source palm grown and Sustainable Rice Project Group to meet our 2015 target. above the 10% improvement we light, can be less sustainable harvested in conditions free from to build scale and maximize the set ourselves, and we expect across their life-cycle. We will deforestation. In 2014, 84% of the positive impacts of sustainable similar results in 2015. continue to report on all our palm oil we sourced could be rice growing practices. packaging targets until 2015, traced back to a known mill. and are exploring the best ways to align them with the impacts- based sustainability framework.

Empowering women for stronger communities

Helping women is an economic and social program and promotes training and imperative. Women play an important leadership for women farmers. role in family farms and improving their productivity makes good business sense. We became a founding member of the Research shows that women are more Coffee Quality Institute’s Partnership for likely to spend additional income to help Gender Equality. This is a collaborative their families and communities on things research initiative to understand gender such as food, healthcare, and education. inequality in the coffee sector.

In 2014, Grant F. Reid, Office of the Wrigley has launched Maua, an In Cocoa Development Centers like this one, we’re working directly with farmers – especially President, and Victoria B. Mars, Chairman entrepreneur accelerator program women Associate – and sharing voicethe latest knowledge on agricultural techniques and business skills. of the Board, led a discussion on the that aims to bring economic and social challenges faced by women farmers, benefits to people in our value chain in which was chaired by UK Secretary of sub-Saharan Africa. Currently, Maua is WHAT MUTUALITY State for International Development, helping women and other economically MEANS TO ME Project Maua (see case study, right) Justine Greening. Together with senior disadvantaged people in Kenya build empowers entrepreneurs in the slums politicians, industry leaders and civil- small businesses selling Wrigley products. and rural areas of Kenya by creating sector innovators, they explored The program currently supports over 350 jobs to alleviate high unemployment. In opportunities for global organizations like entrepreneurs, 30% of whom are women. return we grow our business by reaching Mars to drive best-practice solutions. It is a fantastic example of mutuality in more consumers. It brings to life my practice - we’re expanding the reach understanding of mutuality: social and To help female growers in Côte d’Ivoire of our business, while improving the economic benefits shared among our improve their crop quality, yields and livelihoods of those in our supply chain. entrepreneurs, partners and business to incomes, Mars Chocolate initiated the create a sustainable business ecosystem. second phase of our Gender Action Plan. For example, we’re supporting 25 — SUSAN NJOKI GITHAIGA women’s groups in cocoa communities Project Researcher and Mars to improve their household income Catalyst Fellow, Wrigley and business practices. The Plan is part of our Vision for Change

Partnering with our suppliers on responsible sourcing

We work with thousands of suppliers globally, direct, tier 1 suppliers are currently registered who help us source, create, package, and in our RS system, and we are exploring the distribute our products. Mars’ Responsible steps needed to roll this out to 100%. The Sourcing (RS) program guides our ethics RS system also covers indirect suppliers in and compliance efforts in this area. It is high-risk locations. Associates in key buying founded on our Supplier Code of Conduct. regions also conduct training sessions. For example, in 2014, RS Associates trained over Our RS program helps us ensure that our 150 key suppliers in China and Thailand. suppliers are, or will be, compliant with our Code. We conduct risk assessments and By integrating the Code into our supplier credible third parties conduct audits to test on-boarding process, we reinforce its The Supplier Code of Conduct outlines expectations for Mars suppliers to operate for compliance, and provide training and importance from day one of every new sustainably, treat their employees responsibly, and understand and practice our values. capacity-building opportunities to help our business relationship. We work with our direct suppliers implement our globally aligned suppliers to help them constantly improve, standards. Our approach is to lead by example: and pay greater attention to those who are Our progress on Responsible Sourcing targets we also commission RS audits at our own at high risk for Code violations. We are also factories to measure them against the Code. working to ensure that their employees can 2015 TARGETS: PROGRESS: All 116 Mars factories will be audited by third confidentially report problems. Workers in parties by 2016. Many are also certified to Russia and China can report violations using 100% of procurement Associates Over 1,000 Associates (including 99% Intertek’s Workplace Conditions Assessment, an Ethics and Compliance hotline – 24 hours trained and engaged in our of procurement Associates) completed which covers labor rights, working conditions, a day, seven days a week. We will offer the Responsible Sourcing (RS) process. online training that introduces RS, the and environmental management systems. hotline in additional countries in 2015. Supplier Code of Conduct, and the role of procurement teams. 74% of all Engaging with suppliers through our The challenges we face in the supply chain Sourcing Managers have completed RS program helps us work together to aren’t unique. We participate in an industry additional, in-person training. improve respect for human rights, support forum of consumer goods manufacturers the communities in which we produce, and suppliers, AIM-PROGRESS, to promote 85% of direct, tier 1 suppliers and 75% of direct suppliers and 78% procure or market our products and RS practices and sustainable production 80% of high-risk indirect suppliers of high-risk indirect suppliers create mutual benefits for all involved. systems. In August 2014, Mars joined five other complete all RS requirements. completed all RS requirements. companies and AIM-PROGRESS to host a RS In 2014, we coordinated risk assessments Forum for over 300 suppliers in Gurgaon, India. 50% of Mars factories externally 31% of Mars factories completed RS audits with nearly 3,600 direct suppliers and 4,200 audited and recognized – with 97% of these recognized as high- indirect suppliers. More than 90% of our Learn more about RS at Mars on our website. as high-performing. performing by the third-party auditor.

Our Operations

In this Tackling our footprint 33 Section: Becoming Sustainable in a Generation 34

Extending sustainability across our business segments 35

Targets and progress 36

Our Operations

Our operations - the factories and offices where we make our products and run our businesses - are crucial to achieving sustainable growth. By striving for the highest environmental MESQUITE standards, the Mars family of leading brands CREEK can thrive, ensuring prosperity now, and for The Mesquite WALKING THE TALK generations to come. Creek Wind Farm is helping reduce SEIZING THE RENEWABLE our operations’ ENERGY OPPORTUNITY GHG emissions by 24% and fossil energy use by 12% There needs to be policy action on climate change. As part of our advocacy, we took part in the 2014 NYC Climate Week, and committed to RE100, a new campaign urging businesses to adopt 100% renewable energy. ZERO WASTE Mars signed up for Business for Innovative Climate TO LANDFILL and Energy Policy’s (BICEP) Climate Declaration and the Trillion Tonne Communiqué, both of which call for 86 of our government action on climate change. We also joined manufacturing sites leading companies to draft and sign WWF and the World have achieved zero Resources Institute’s Renewable Energy Buyers’ Principles, waste to landfill which sets out to simplify the renewable energy market.

Most importantly, we’ve taken action to address the way we source energy and tackle GHG emissions. Our 20-year commitment to purchase power from Mesquite Creek Wind, a 118-turbine wind farm in the US, is one example of how we’re changing things. The wind farm - a partnership with Sumitomo Corporation of Americas and BNB Renewable Energy - is now providing the equivalent of 12% of our global energy requirements or all our US power needs.

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TACKLING OUR FOOTPRINT In 2014, we sent only one-fifth as much WHAT MUTUALITY waste to landfill as we sent in 2007. MEANS TO ME We applaud the ground-breaking 2014 Over two-thirds of our manufacturing agreement between China and the US sites are sending zero waste to landfill. to cap and reduce their GHG emissions by 2030, and look forward to further, Our performance on water has also bolder actions to tackle climate change. improved, moving from a reduction of 13.6% in 2013 to 15% in 2014, from We are doing our part to shrink 2007 levels. We’re working hard the environmental footprint of our to meet our 2015 target of a 25% factories and offices. Our Sustainable reduction. We are improving processes in a Generation (SiG) initiative, and increasing the deployment of launched in 2007, commits us to rainwater harvesting facilities for our eliminating fossil fuel use and GHG offices and factories, for example, at emissions from our operations by our Pennsylvania Mars Drinks Campus, Mutuality to me 2040. We have similarly ambitious which has generated savings of 30%. is collaboration, targets for waste and water usage. What we have learned from implementing reciprocation and SiG is smart business: improving our 2015 targets will help us set, and true partnership; energy efficiency and moving to achieve, our future goals. For example, it is shared risk renewable energy reduce operating while some of our sites have become more costs and mean we aren’t dependent energy efficient, others have struggled. and benefit to on volatile energy prices, creating an To get all our sites on track, we created ensure the highest enduring mutual benefit for Mars and a playbook to communicate learnings quality product. the planet, and ensuring continued from successful sites to encourage growth that we can be proud of. innovation. We also accelerated our work on renewables to meet our fossil fuel use — VERNISHA GREENE By changing behaviors and investing in target reduction of 25%. By end-2015, the Quality Assurance Scientist, new machinery to use less energy, we energy we get from renewables will be Mars Symbioscience decreased our overall GHG emissions almost 300 times what it was in 2007. by 5% and our fossil fuel use by 9% in 2014, from a 2007 baseline. We Our operations help us create estimate that energy-saving measures mutual, sustainable growth, have resulted in cost savings of and we’re changing behaviors approximately 10%, compared to 2007. and investing in new machines to reduce our impacts. Our partnership with Sumitomo in Texas is already delivering significant results – the wind farm now generates energy equivalent to powering our entire US operations.

BECOMING SUSTAINABLE IN A GENERATION

We developed the Operating more efficiently Getting more from Using new technology to Increasing our use of Sustainable in a Generation our capital assets improve sustainability renewable energy program and targets based This is the most direct and on scientific consensus simple way to improve By upgrading equipment, we Innovation plays an important We’re embracing wind and solar coupled with business environmental impacts. By increase efficiency and cut role in how we run the business energy, and working with other feasibility. The program learning how to make smarter emissions and waste. Our Mars and make products. Better companies to improve market uses four main strategies: use of equipment, Associates can Chocolate plant in Viersen, packaging and food processing conditions for renewable energy reduce GHG emissions, water Germany, found a creative way techniques, for example, help use. We look for sources that use and waste, and improve to recover waste heat from boost production, minimize cost the same as conventional energy efficiency. For example, the site cooling system using waste and save resources. energy, and then work with third over 70% of our Petcare facilities a heat pump. This conserves Many food processes involve parties to switch to renewable have organized workshops for water and reduces steam multiple steps – from wetting supplies. For example, Mars Associates to brainstorm new consumption on the site. Lower and drying to heating and Chocolate in Haguenau, France, energy-saving ideas and work steam use has allowed us to cooling – so we’re exploring ways uses steam generated from a together to find solutions. install smaller, more efficient to streamline these cycles. nearby waste energy facility to The results have been boilers - saving not only energy meet 90% of the site’s heating impressive. In many sites, but also capital costs. needs and lower energy-related new energy metering has GHG emissions by 60%. increased awareness and changed behaviors, helping them to double their production capacity, without increasing energy and water use. Workshops will be rolled out to all Petcare sites in 2015.

EXTENDING SUSTAINABILITY streams as possible, and developing ACROSS OUR BUSINESS relationships with waste management SEGMENTS companies who share our views.

Mars Drinks Our sustainability ambitions are brought to life across our diverse businesses. Mars Drinks sends zero waste to While each faces distinct challenges, landfill, and our fossil fuel use and our segments work together to make water consumption have dropped changes happen. Examples include: by 23.3% and 61% respectively, since 2007. Our new headquarters in West Mars Petcare Chester, Pennsylvania, received ISO 14001 environmental management In 2014, Mars Petcare sites reduced water certification in 2014, and will be entered use by 18% and waste to landfill by more for LEED Gold certification in 2015. than 70%, from 2007 levels. In China, the Beijing Water-Saving Enterprise recognized Covering over 195,000 square feet, our Mars Petcare factory in Huairou for a the collaborative working space and number of water-conserving initiatives. factory boast innovative features such The site reduced its water use by 16% by as rainwater harvesting and electro- recycling water used for sterilization and chromic glass – also known as smart glass cooling, installing shower upgrades, and - that automatically dims during daylight harvesting rain water. In Australia, Mars hours to reduce cooling costs. The Petcare received a Green Globe award building was fabricated using sustainable from the New South Wales Government for materials sourced within 200 miles Becoming Sustainable in a efforts to achieve zero waste to landfill. of West Chester, and was designed to Generation calls for effort from MAKING accommodate renewable energy solutions all our segments. The new Mars US PROUD Drinks campus in Pennsylvania, such as solar panels, for when prices Mars Chocolate pictured here, is one example become competitive in the local area. of our next-generation green Mars Chocolate has reduced its waste buildings, along with our new to landfill by 94% since 2007. By Petcare Innovation Center in February 2015, all of Mars Chocolate’s Tennessee, and Chocolate factory in Kansas. 10 manufacturing operations in North We were awarded Best Private America were sending zero waste to Company, for the second year in a landfill, joining several other regions, row, at Ethical Corporation’s including Europe and Asia. All but one Responsible Business Awards – largely Chocolate site now send zero waste to due to our ‘no deforestation’ policy landfill. To achieve this, we focused on and plans to construct a 200MW creating efficient operations, adopting wind farm in Texas. recycling programs for as many waste

Wrigley TARGETS AND PROGRESS

In 2014, Wrigley reduced fossil fuel use by 12% and water consumption by 24% from WATER USE 2007. We expect to meet our zero waste to landfill target in 2015, with only four out of TARGET: Reduce water use by 25% by our 22 sites yet to meet this objective. 2015 from a 2007 baseline. Wrigley has focused on reducing energy use through capital investment and operational PROGRESS: Water use has decreased efficiencies. In 2014, our St. Petersburg by 15% between 2007 and 2014. facility in Russia installed a flue gas heat recovery system, reducing natural gas energy consumption by approximately 6% per year. FOSSIL FUELS Mars Food TARGET: Reduce direct fossil fuel Mars Food decreased waste to landfill by 79% energy use and GHG emissions by 25% from 2007 to 2014, even while production by 2015 and by 100% by 2040 from a volumes increased. In the UK, we received 2007 baseline. approval to build a new LEED Gold standard office complex at Kings Lynn in Norfolk. PROGRESS: Fossil fuel based energy use reduced by 9% and GHG emissions by 5% between 2007 and 2014. MAKING US PROUD

WASTE

TARGET: Achieve zero waste to landfill by 2015.

We made significant progress on our CDP PROGRESS: Waste to landfill has climate reporting score, from 70C in 2013 reduced by 79% between 2007 to 95B in 2014. This demonstrates our and 2014. 86 of our sites achieved commitment to be transparent about our zero waste to landfill in 2014. carbon emissions and our Our sustainability ambitions are brought to life across our diverse strategies to reduce our businesses. Our factories around the world - including in Belgium, carbon footprint. pictured - are innovating to reduce their environmental impacts in line with our Sustainable in a Generation targets.

SUSTAINABLE IN A GENERATION PROGRESS Total annual metrics for Mars, Incorporated 2007 2008 2009 2010 2011 2012 2013 2014 CHANGE from 2007 Baseline

22,648 TOTAL ENERGY USE (terajoule) 22,486 21,467 21,453 21,519 -6.9% Excludes 29TJ electricity sold to grid from cogen. 21,415 21,376 21,088

500 424 583 RENEWABLE ENERGY (terajoule) 338 364 561 Includes only renewable energy generated onsite and 226 +478% energy purchased directly from 100% renewable sources. 97

22,551 22,260 1 21,128 FOSSIL FUEL ENERGY (terajoule) 20,991 21,155 -9% 20,877 20,870 20,527

2 1,940 1,921 SCOPE 1 AND 2 GHG EMISSIONS (kt CO2e) -5% 1,848 1,844 1,843 1,840 1,843 1,842

16,452 WATER USE 3 (thousand m3) 15,615 -15% 14,272 14,254 14,092 14,273 14,307 13,960

142 132 WASTE TO LANDFILL (kilotonne) 106 -79% 91 30 68 64 48

8,654 8,273 4 8,478 TOTAL PRODUCTION VOLUMES (kilotonne) 8,443 8,107 8,445 -2.4% 7,850 7,975

1. Excludes Bentonville. 2. Includes Mars IS, MVA, Offices 3. Added M&M’s Worlds, 2007+ 4. SLO free-tonnes (2007+) 37 / 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 Brands

In this Delivering brands with strong values 40 Section: Communicating responsibly 40 Leveraging our brands for good 41

Targets and progress 41

Our Brands

Our brands support our growth, project our values, and help us connect with our consumers worldwide. Through our commitment to responsible communications and sustainable MARS innovation and our support for important causes, MARKETING we’re using our brands as a force for good. CODE 3.0 WALKING THE TALK We released the third edition of the Mars Marketing CARING FOR CATS, BIG AND SMALL Code to strengthen our commitments Wild tiger populations have plummeted by over 95% to our consumers in the last century. Fewer than 3,200 are alive today – less than the number of captive tigers in the US.

As cat lovers, this matters to us, and to our consumers. CAUSE WHISKAS® has partnered with the WWF’s Tigers MARKETING Alive Initiative to double the number of tigers in the wild by 2020 by combating poaching and We used our cause through fundraising. The initiative has generated marketing business over $1.5 million toward projects that target 12 of model to connect the world’s most hostile environments for tigers. our brands and our consumers with This partnership encourages consumers to show their five global causes love for cats, big and small, by making donations and by purchasing special WHISKAS® products. It is a great example of our approach to strategically use our marketing to engage consumers on global causes that grow our brands and have a real, measurable impact for the causes we support.

Read more about the amazing volunteers, workers and community groups behind the WWF tiger campaign.

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DELIVERING BRANDS COMMUNICATING chocolate and confectionery 94.2% compliance for our TV WITH STRONG VALUES RESPONSIBLY portions to less than 250 advertising in China (Beijing), calories, and prohibiting Colombia, India, Malaysia, Mars owns hundreds of brands We sincerely believe It’s a fact – children love joint promotions with alcohol South Africa, Turkey and the that bring happiness to millions that business has chocolate. But they may and tobacco brands. UAE. Where we have not of people and pets around the often be blissfully unaware complied, we take corrective world. As we grow, we want to an important role in of how much of it they Our global network of action to ensure it does not use the scale and reach of our bettering the world should or shouldn’t eat, and Responsible Marketing happen again. In line with the brands to bring lasting change. today and for future may not fully understand ambassadors support MMC IFBA’s renewed commitment how marketing works. deployment, training and on product formulation and We’re improving the generations. governance at regional levels. innovation, Mars also published sustainability of our business, This is why we don’t target We annually require all a statement detailing its right down to the way we — STEPHEN BADGER advertising to children under marketers, sales Associates relevant goals and progress, package our products. Some Mars Board Member 12, and don’t feature children and external agency partners available on the IFBA website. of these improvements relate under 12 eating snack foods or to pass the MMC “Driver’s directly to our brands, and advertise on websites aimed License” (an online test) address specific concerns of our at those under 13. We never before marketing our brands. consumers. For example, LIFE Although we can’t completely use children as spokespeople SAVERS® mints no longer have control how our products for our brands and ban the We participate in over 50 an additional paper label on the are used, we can help drive use of celebrities and licensed voluntary industry pledges roll packs sold in North America consumer preference for characters aimed at children. on responsible marketing. - reducing the brand’s paper use more sustainable alternatives, For example, we have signed by a quarter. We’ve also and promote engagement No matter where and how we up to the EU Pledge and the invested time and thought into in good causes through our communicate, it is important International Food & Beverage how the plastic materials used marketing communications and that we comply with the law Alliance’s (IFBA) Global Policy in our disposable KLIX® cups brand partnerships. SHEBA® and our voluntary commitments. – which aim to change the way contribute to our overall carbon remains the only mainstream Our updated global MMC lays food and beverage companies footprint. By adjusting the way cat food brand in the US to out our marketing commitments advertise to children. In we make the cups, we have offer responsibly-sourced fish for all Mars food, chocolate, 2014, our branded websites reduced their carbon footprint meals through its work with confection and gum products. achieved 100% compliance with by 6%, and our FLAVIA® and the Monterey Bay Aquarium’s We refresh the MMC every three the EU Pledge for the third KLIX® drinks machines now Seafood Watch® program. years to ensure we continue to consecutive year. We were 97.4% The Mars Marketing Code consume nearly 22% less energy lead where it matters most. compliant against our goal of is our way of checking than in 2010, putting us on track Underscoring our actions is not advertising on television we always communicate to meet our 25% reduction our unwavering commitment The MMC features new, industry- if more than a quarter of the goal in 2015. Using sustainable to responsible consumer leading commitments that audience is likely to be under 12. responsibly. It’s updated innovations, we plan to deliver communications. We extend globally across all media every three years, and our well-loved brands, while strengthened it in 2014 with channels and consumers. They In 2014, our online and print we make sure all relevant bringing cost and energy savings the third edition of the Mars include providing nutritional advertising activities were to our business and inspiring Marketing Code (MMC) and our information on the front of 100% compliant with the IFBA Associates are trained on industry change. rigorous compliance process. product packs, limiting new Global Policy. We also achieved how to apply it.

LEVERAGING OUR TARGETS AND PROGRESS BRANDS FOR GOOD WHAT MUTUALITY MEANS TO ME We know that the power of our brands can be used to create mutual benefits, but CAUSE MARKETING creating engaging campaigns that benefit our business and our charitable partners TARGET: Have cause marketing campaigns in place for five of our can be a challenge. We are proud to have global brands by the end of 2015. made significant progress. We have moved from only short-lived campaigns that PROGRESS: Launched five campaigns: Ben’s Beginners™, EXTRA® made small contributions to good causes Chew for Change, WHISKAS® Tigers Alive, PEDIGREE® Adoption to include long-term, global activity that Drive™, and GALAXY® (RED). enhances our brands and benefits society.

After years of trial – and some error – our new cause marketing business model Mutuality means 25% ENERGY REDUCTION outlines a successful and scalable method for thinking “win-win-win” investments and partnerships. The secret? TARGET: Reduce average FLAVIA® and KLIX® drinks machine Starting with what makes each of our brands throughout every base energy consumption by 25% by 2015 from a 2010 baseline. special. We match these qualities to causes relationship process. that resonate with our brand ethos. We Asking yourself, “Why PROGRESS: Machine base energy consumption has reduced by then bring our marketing or advertisements nearly 22%. to life through emotionally engaging not?” is a good start in content to deliver mutual, sustainable terms of attitude and growth – for us, and our partners. commitment. NO ADVERTISING TO CHILDREN The WHISKAS® and WWF partnership to support the Tigers Alive Initiative (see case — MIKE TOLKOWSKY TARGET: Not to advertise our products on television if more study) is one such example. WHISKAS® is Director of Global Sales, than 25% of the audience are children under the age of 12. all about helping cats, and WWF’s program Mars Chocolate was a natural fit, not least because our PROGRESS: Achieved 97.4% compliance in 2014, as assessed sustainable sourcing policies on palm oil and by the EU Pledge. seafood align closely with WWF’s values. TARGET: Not to advertise on websites aimed at those under 13. In 2014, we met our target to support five global causes with campaigns that PROGRESS: Achieved 100% compliance in 2014. resonate with our brands, Associates, our retailers and our consumers. These campaigns help improve our brands’ sales and benefit our wider communities.

CASE STUDY CASE STUDY CASE STUDY

CHEWING FOR CHANGE! GIVING SHELTER DOGS A BETTER FUTURE COOKING UP FOOD AND FUN

Wrigley is committed to making a real contribution Millions of dogs in the US don’t have a home Put on your aprons! to the oral health of the world. Now consumers in or family, depending on shelters for food, Sweden and Norway can improve their oral health and warmth and the hope of adoption. Research shows that cooking together helps families help children in Ghana through the EXTRA® Chew for build healthier relationships with food and each other. Change campaign. Through donations made possible Actions driven through our PEDIGREE® brand are improving It is also an important step to tackling childhood by purchases of EXTRA® gum, Chew for Change the living conditions and health of these dogs through obesity and declining rates of cooking at home. funds oral health programs and the running costs of volunteering and food donations. To raise awareness SOS Children’s Villages, an NGO that provides safe and encourage support, the PEDIGREE® See What Good Families can now tune into Ben’s Beginners™, our havens for orphaned and abandoned children. Food Can Do™ campaign brought to life the challenges online family cooking channel in the UK. Along with shelter dogs face – and the positive impact PEDIGREE® delicious cooking classes, the channel features self- Since the program’s launch in 2013, over 36,000 children can have in helping them find a new, permanent home. submitted videos that show how families like to prepare have been taught about the importance of brushing and enjoy UNCLE BEN’S® rice. Launched in the US in (two minutes, twice a day!) through hands-on training, In 2014, we donated more than three million 2013, the campaign is now making a difference in over and provided with toothbrushes and toothpaste. It’s pounds of petfood through the PEDIGREE® Shelter 10 countries including the UK, France, and Germany. a great way to boost our sales and our contributions. Feeding Project and the Mars Petcare Food Donation Ben’s Beginners™ videos have had millions of views Inspired by this success, an Oral Care doing good program, in partnership with Rescue Bank, a US worldwide. That means thousands of families are now marketing initiative will be launched globally. Called the petfood distribution organization. We encourage coming together to cook, eat well, and have fun. “Smile Back Project”, this will help millions of children Associates and our communities to volunteer in around the world smile confidently back at the day. the PEDIGREE® Shelter Renovation Project, in partnership with GreaterGood, an NGO. We’re incredibly proud that this project has transformed at least one shelter in every state in the continental US – helping dogs and their dedicated caregivers.

Working at Mars

In this Striving to create a great workplace 45 Section: Training, developing and recruiting the best 46

Targets and progress 47 A team of over 200 Wrigley Associates in Poland helped to restore a local forest by cleaning litter and preparing the trees for winter.

Working at Mars

If we want to grow our company, and be proud of our success, we’ve got to take care of our own people, develop their talent and provide a great place to work. Every day we work hard to 480,000 HOURS make sure that Mars is safe, healthy, happy and TRAINING successful for all of us. We delivered more WALKING THE TALK than 480,000 hours of training through the Mars University FROM TIGERS TO CORAL REEFS

Cindy Jiang, a Mars Petcare Associate, will never forget the tigers she saw in Nepal as part of the Mars Ambassador Program (MAP) in 2014. Cindy used her VOLUNTEERING financial planning skills to support the WHISKAS® HOURS and WWF Tigers Alive Initiative, which works to protect the world’s few remaining wild tigers. The Associates experience made her more proud of working at Mars. contributed more than 85,000 hours to Also through MAP, Mars Associates from around the the Mars Volunteer world have been rehabilitating coral reefs damaged by Program, and 5,000 destructive fishing practices in Pulau Badi, Indonesia. We hours to the Mars even received on site help from US Senators John McCain Ambassador Program and Sheldon Whitehouse, and the US Ambassador to Indonesia, Robert Blake, to work alongside us last August. More fish are returning, which is good for the planet and for the community whose economy depends on fishing.

The MAP program provides opportunities for Associates to work with key partners, while developing their skills and supporting our sustainability initiatives around the world. It’s a great way for us to work better, learn more, and make a difference in our communities.

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STRIVING TO CREATE A GREAT WORKPLACE WHAT MUTUALITY MEANS TO ME We’re proud of the ‘Associate concept’ – our belief in a shared, mutual relationship between all Mars Associates. Our aim is to create mutual benefits for the company, each other, and the planet. As Associates, we work with, not for, the company because we are more than employees. We are stakeholders in our business, and take responsibility for our results. And in return, we are trusted and respected as individuals who will create growth that is sustainable and mutual.

Keeping all Associates engaged, healthy and safe Through a Mars We are rewarded through competitive pay and Volunteer Program benefits for great performance – not for length of event at a local dog service, age, gender, ethnicity, sexuality, religion or shelter, my family physical ability. Our collaborative way of working isn’t hindered by hierarchy – everyone at Mars sits adopted Louise, a side by side in our open plan offices, including our 12-year old bichon. senior leaders. This reflects our egalitarian culture She comes to work and improves how we work together as teams. with me every day - it makes her happy Associates from all our segments including Petcare, pictured here, MAKING The Mars culture is one of open and honest and me as well, and US PROUD dialogue between line managers and their teams. are getting involved in the Mars Volunteer Program, which gives To understand how more than 75,000 Associates she spreads joy in the them a paid day off to give back around the world feel about Mars and our work, we office with her funny to the community. conduct an annual Associate Engagement Survey. In ways! Mutuality to me 2014, the results show that 72% of Associates feel means being able to do connected, committed and enthusiastic about their what I love, while giving We were recognized for our efforts to work, compared with 70% in 2013. Leaders across the Louise a happy life and seek mutual benefits for our company use the results to improve how we work, and stakeholders with the Global Shared together with their teams, generate impact plans that bringing a smile to Value Award, the first of its kind, from create a focus on engagement all year round. We have Associates’ faces too. the Global Action Platform, a already made big progress, with continual increases collaborative center that works to year-on-year. Since 2012, we have risen from the 67th — KATHY HEUNGENS improve sustainability. to 72nd percentile of Gallup’s engagement survey. Corporate Affairs Director, Mars Multisales

Open, candid dialogue with line managers with the Global Safety Leadership Team to and management is always encouraged. track progress toward our safety objectives. But, in the event one of us feels like we need a confidential ear to discuss concerns TRAINING, DEVELOPING AND about our work and get advice, we use our RECRUITING THE BEST Ombudsman program, which reports directly to the Office of the President. Created and Right from the start of our careers, we’re developed by Victoria B. Mars, Chairman of the introduced to The Five Principles through Board, in 1997, the Ombudsman is informal, our Essence of Mars training. After that, confidential, independent and neutral. It we’re expected to shape our future by aims to improve our working environment by taking on new assignments, developing our listening to Associates, providing information, functional and leadership skills through as well as coaching, facilitation and mediation training offered by Mars University, and Victoria B. Mars delivered services. It helps us feel more like a small building a rich and varied career by moving the keynote speech at business, even as we continue to grow between functions, segments and geographies. the 2014 Great Place globally. In 2014, 1,693 Associates contacted Associates are constantly challenged to learn to Work conference. CONTINUING TO BE A the Ombudsman advisors, which was similar by broadening our experience and skills. Watch the video. GREAT PLACE TO WORK to the 1,603 Associates that contacted them in 2013. Their feedback, via the Ombudsman In 2014, 64.4% of us completed the Essence of We aren’t in this to win awards. But we report, was passed on to the Mars Leadership Mars training within six months of joining the must admit: we love it when Associates Team and the Mars family, who use this data company, a 16% increase from 2013. The Mars share how much they enjoy working to gauge how effective we are at creating University delivered more than 480,000 hours at Mars. an engaging workplace. The Ombudsman’s of training to 30,000 Associates worldwide. Annual Report, which is available to all This positive feedback contributed to Associates, also highlights the key feedback Every Mars segment delivers a global Mars being named a Great Place to received from Associates throughout the year. curriculum on the segment’s business, Work® in more than 20 countries. We’ve brands and their sustainability efforts been recognized (for the fourth year in We respect and protect the privacy of through internal academies. Building on the a row) as one of the Top 25 World’s Best all Associates through our Global Data success of Petcare and Drinks Academies, Multinational Workplaces, by the Great Privacy Program and training on how to the Mars Food Academy launched in 2014. Place to Work® Institute and as one of handle each other’s personal data. the top 15 US manufacturing and Wrigley Go Green teams around the world production employers through the Great To keep each other safe and healthy, and hosted learning events at 47 sites to Place to Work® Great Rated!™ employee minimize risk to our business, we’re working educate Associates about the importance Associates are what survey. We also won the 2014 Gallup hard to become an incident-free workplace. of sustainability. The Wrigley Company make Mars, Mars. Great Workplace Award for the sixth We reinforce safety as a responsibility shared Foundation multiplied their efforts by time, and were ranked 76th in the 2014 by all Associates, regardless of our role, matching each event with a $1,000 They are our family. Fortune 100 Best Companies to Work and we deploy safety management systems donation, for a total of $47,000, to the For® list. designed to set high standards for all our sites Foundation for Environmental Education — VICTORIA B. MARS around the world. Senior business leaders (FEE), an NGO that promotes sustainable Chairman of the Board, sit on the Mars Safety Council, which works development and positive environmental Mars, Incorporated

change through education. The program TARGETS AND PROGRESS ultimately reached 11,775 students.

We invest in our facilities to make them better work environments to help our teams excel. That’s why we have invested in state-of-the-art facilities in Pennsylvania and Mississippi in the US, Pune in India and King Abdullah Economic City in Saudi Arabia. As well as providing new jobs and contributing to local economies, they will help us build our research, development and innovation capabilities. FEMALE MANAGERS

We also work to inspire and educate young TARGET: Increase the percentage of people, and nurture potential future Mars managers who are women and the Associates. Mars UK hosted workshops for percentage of women at more senior 70 unemployed people across four sites, levels (ongoing target). as part of Feeding Britain’s Future, an industry initiative that helps participants PROGRESS: The proportion of women in A BETTER WORLD FOR PETS™ improve their resumes and interview skills management was 40% in 2014, and 28% of and get ready for the world of work. senior leaders were women. We love pets. Have we said that before? Because we want more women to pursue And it’s visible in everything we do at Mars Petcare. Especially in our engineering and manufacturing careers, Mars offices where Associates can bring their pets to work, as part of our pet Chocolate UK has been working with the friendly work environment, which contributes to the ‘Positive Food and Drink Federation and youth skills Experience of Having a Pet’. initiative, MyKindaCrowd, to host opportunities for female students aged 16-18 to visit our At Mars Petcare, we know pets make people’s lives better. Research sites. To give them first-hand experience of shows that pets can reduce stress levels and, in some cases, improve what it’s like to work at Mars, Associates productivity. Around 50% of our sites allow pets onsite, and of those that who work in engineering and quality asked don’t, 35% are planning to do so in 2015. students to use their science, technology, ASSOCIATE ENGAGEMENT engineering and mathematics skills to solve In their first year, new Petcare recruits learn real-life challenges from our factories. TARGET: Score in the top 80th percentile of about our products, brands and business in companies that use the Gallup engagement our Better World for Pets workshop, survey; in other words, we want Associates delivered through our global Petcare to feel more engaged than employees in 80% Academy, which trains Associates to keep of the other companies that Gallup rates. pets at the heart of everything we do. PROGRESS: Scored in the 72nd percentile in 2014.

47 / 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 Helping Associates lead healthier lives

For our business to be successful, we need Being healthy is about having fun, too. people who are motivated, productive, The Go Mars Challenge encourages happy, and healthy. We’re committed Associates to get healthy by competing to achieve this by helping Associates in teams to improve their diet, nutrition improve their nutrition, diet and activity and physical activity levels. – and we’re seeing great results. We want to constantly improve the tools we Keeping fit is important, even in the office. We offer a variety of fun, One such program is HealthTracks, which provide to help Associates achieve better effective health programs for Associates, wherever they are in the world. helps our US Associates assess, understand health. We’ve been using WorkHealthy and manage their health risks. We found many America, a tool from workplace health cases of high blood pressure and launched NGO, Prevention Partners, to assess our US a three-year effort to encourage Associates workplaces since 2012. In 2014, 56 sites across ASSOCIATES AROUND THE WORLD to stop smoking, focus on good diet and all Mars segments received feedback on how nutrition, and visit the doctor more often. to improve workplace wellbeing, and many These efforts help to improve productivity were recognized for great performance. By Region By Segment and reduce absence days. For example, the duration of absences across Mars were 20 The next step is to develop a global 41.1% Americas 48.9% Petcare days shorter than the US national average. Associate health and wellbeing strategy. 39.6% Europe, Africa and Middle East 22.5% Chocolate In May 2014, we contracted Prevention Health results have also been improving. Partners to develop a global, web-based 19.3% Asia Pacific 22.5% Wrigley Our annual health and wellbeing scorecard – application to assess, implement and validated by third-party experts – shows that maintain healthy worksite environments 2.6% Food the Associates who took the HealthTracks and policies. The pilot phase looks at 13 assessment and participated in Mars Mars Chocolate sites, including in India and 1.3% Multi-sales Europe wellbeing programs have improved their the UK, and will help inform our global health metrics in most categories. Blood strategy on Associate health and wellbeing. 1.3% Corporate pressure awareness was up by 38%, and since 2011, participants’ average blood pressure 0.9% Drinks improved by 10%. More than 80% of them are 0.07% Symbioscience now sticking to their medication programs, compared with around 60% before.

Volunteering in our communities

MARS VOLUNTEER PROGRAM athletes through the German Special Smiles program, where the Wrigley Company Not all learning and development happens at work. In Foundation is a lead supporter. 2014, nearly 21,500 Associates around the world got paid time off to spend over 85,000 hours volunteering ▪▪Mars Symbioscience Associates volunteered at locally through the Mars Volunteer Program (MVP). local food and animal rescue centers, as well as a They gained unique experiences they’ll remember homeless shelter for families in crisis. Associates for life, while testing their skills and positively also donated 2,300 pounds of food, clothing and impacting around 85,000 people and 28,000 pets. other basic necessities to a homeless shelter. Here are some of the many great programs: MARS AMBASSADOR PROGRAM ▪▪Around the world, Mars Petcare Associates participated in MVP by renovating shelters, Nearly 90 Associates spent 5,496 hours educating children on the importance of working on 25 assignments in communities responsible dog ownership, providing health around the world, including: checks for pets and hosting adoption drives to find loving homes for shelter animals. More than 1,000 ▪▪Mars Food Associates in the UK partnered with Working at Mars means being part of a global community. Associates from our BANFIELD® Pet Hospital took Urban Food Routes to train four small food Through volunteering in the Mars Volunteer Program, part in MVP – a 229% increase on 2013. enterprises in London. The program teaches Associates bring mutual benefits to our local communities. improved conflict resolution, customer service, ▪▪Mars Chocolate Associates in Steinbourg, finance, marketing, and sales. Associates also France, gave back to their community through helped to organize a recruitment event to help Mars Volunteer Program: engagement and impact inspiring activities: renovating the bedrooms of young unemployed people find jobs with local children facing social challenges; gardening for a entrepreneurs. retirement home; loading a truck with 12 tonnes of second-hand clothes for those in need in ▪▪Nine Mars Drinks Associates worked with 238 85,000 Ukraine; and supporting a community group that Living Earth, a local NGO, and The Ethical sites around the world people impacted helps the homeless. Tea Partnership, to support the Makomboki Tea Factory in Kigumo Village, Kenya. They ▪▪Over 23,000 people were impacted by the explored alternative energy options to 21,422 28,000 generosity of the global Wrigley team. Associates help reduce the factory’s carbon footprint volunteers pets impacted in the US assembled over 16,000 oral care kits for and combat deforestation. By introducing children in need; in Kenya, we helped establish a biofuel briquetting scheme, the factory dental clinics to reach those without access will save an estimated $350,000 a year, 85,418 to oral care; and a dynamic team in Germany part of which will be used to support a hours volunteered provided oral health education to Special Olympic community social fund for local initiatives.

Reporting Scope and Data

Lloyd’s Register Quality Assurance, Inc. (LRQA) have assured our reporting and data. This gives stakeholders confidence that what we say is accurate, and helps us improve our We want to hear from you strategies and performance. Read the assurance statement on our website.

This report covers the global activities of our company, Mars, Incorporated, and its Your feedback is very important to us. For any questions business segments: Petcare, Chocolate, or comments about our Principles in Action Summary, Wrigley, Food, Drinks, and Symbioscience. It describes our performance in the 2014 please contact us at www.mars.com/contact-us. calendar year. Examples from other years have also been included to give a For additional information, to view previous reports more complete picture of our work. or to provide comments, visit www.mars.com or Environmental data for our factories follow us at /Marsglobal. is based on actual figures, while data for most offices is estimated. Our estimated data represent no more than 5% of all data in this report.

All volumes are in metric tonnes (1,000 kg) unless otherwise stated – referred to as tonnes throughout.

Financial values are United States dollars (US$), unless otherwise stated. www.mars.com

NOTES

The WWF trademark is registered in the United States and owned by the WWF - World Wide Fund for Nature.

MONTEREY BAY AQUARIUM and SEAFOOD WATCH are registered trademarks in the United States and owned by Monterey Bay Aquarium Foundation.