The world’s largest chocolate maker is urging companies to step up their efforts to tackle climate change, warning that current plans are “nowhere near” enough to meet targets set by the Paris accord.
“Most scientists are saying there’s less than a five per cent chance we will hit Paris agreement goals . . . which is catastrophic for the planet,” said Grant Reid, chief executive of Mars, the maker of Snickers, Twix and M&M’s candies.
Mars has pledged to invest $1bn over the next few years in renewable energy, such as windfarms, and other programmes as part of a “call to action” for companies to step up efforts in reducing emissions, said Mr Reid, in his first major interview since being promoted to chief executive three years ago.
“A billion dollars is a big number, but I think the big news is actually about us speaking out,” he added, commenting ahead of this month’s UN General Assembly and climate week in New York.
Donald Trump this summer vowed to withdraw the US from the Paris agreement, a move that drew criticism from activists and much of corporate America, including Mars. Critics say the structural shift in energy markets towards renewables and away from fossil fuels will continue, regardless of the president’s move.
Since Mr Trump took office in January, chief executives of the largest companies in the US have been unusually vocal about their frustrations with government decisions, such as recent protectionist trade moves, Mr Trump’s response to white supremacist rallies, and his decision this week to end work permits for immigrants known as “Dreamers”.
Mars, a 106-year-old company, employs 80,000 people globally and makes about $35bn in annual sales. The confectionery-to-pet-food conglomerate this year bought VCA, a provider of veterinary services, for $9.1bn.
However, the family-owned company is notoriously private, a strategy that was a “big advantage for many years”, said Mr Reid. “Things have now changed . . . We’ve always felt like we had a responsibility. And I think even more so now.”
We’ve always felt like we had a responsibility. And I think even more so now
Mars says it will cut greenhouse gas emissions by 27 per cent by 2025 and 67 per cent by 2050, as it invests in windmills to power its operations.
Currently, wind farms in Texas and Scotland generate enough power to cover the electricity for Mars operations in the US and UK. As part of this investment, Mars says it will add wind and solar-powered farms to cover electricity for another nine countries by 2018.
The company will roll out an advertising campaign for M&M’s candies to push the message, featuring the brand’s computer-animated mascots holding up windmills.
In an age of social media, “the level of transparency that consumers, NGOs and governments are looking for now is very different from when I started in this business 29 years ago,” said Mr Reid.
He aims to drum up support from corporate peers, NGOs and governments at the UN General Assembly this month.
Former president Barack Obama’s administration aimed to cut US greenhouse gas emissions by 26 per cent by 2025, from their levels in 2005.
The destruction caused by superstorm Harvey to large parts of Texas and the gulf coast serves as a “wake up call”, said Mr Reid. “I’m not a weather expert. But scientists have been telling us for some time that these events are going to increase in frequency and intensity as the planet warms . . . We’ve seen this all over the world.”
