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Mars on a Procurement Pathway to Net-Zero

Mars on a Procurement Pathway to Net-Zero

Mars has published its open-source action plan to accelerate the drive towards achieving Net Zero emissions, including a new target to cut carbon in half by 2030 across its full value chain. The strategy also involves investing US$1bn over the next three years alone to drive climate action

The strategy incorporates an understanding of how supplier engagement, supply chain and procurement impacts their environmental footprint, as 80% of it comes from their inputs such as raw materials, packaging and logistics.

“The carbon footprint of our entire supply chain from farming through to the end of life of our packaging and everything in between is the same as that of a small country – Finland has almost exactly the same footprint,” explains Barry Parkin the Chief Procurement and Sustainability Officer at Mars Inc. “When we look at where our footprint was ten years ago, 70% or more of it is embedded in the goods or services we buy. So, procurement is therefore absolutely critical.”

This means the role of procurement, supply chain, and supplier engagement is integral to the company reaching their ambitious sustainability targets, and Parkin is acutely aware that means it is essential for them to do things differently. “Our job is to re-imagine and re-design supply chains so that they have a dramatically lower carbon footprint,” he says. “To put it another way, unless we change what we buy, or where we buy it or how we buy it we are not going to really change our carbon footprint. ”

Their roadmap involves removing approximately 15 million metric tons by 2030 and then another 15 million metric tons by 2050 when they reach net zero.  Since 2015 Mars have already reduced emissions by 8%, whilst growing the business by 60%, showing that it is possible to decouple emissions from growth and success of a business.

 

Supplier relationships 

As for any major organisation trying to address their sustainability strategy, it is impossible for Mars to make significant progress with their carbon footprint without the help and buy-in from their enormous supply networks.

“As a global company, we rely on suppliers across our value chain as essential partners in our journey to reach net zero,” says Parkin.  “Like most companies, addressing our Scope 3 emissions is challenging because of their indirect nature and our lack of direct control or visibility. Only by working with our Tier 1 suppliers can we make progress with them on their own emissions and on their upstream emissions with our Tier 2 suppliers and beyond.”

Mars was a founding member of the Supplier Leadership on Climate Transition coalition, that is a dedicated body for instigating climate action through industry-wide supply chains.  This allows companies like Mars to use their scale and influence to guide, mentor and train suppliers with emissions strategies and also celebrate their best practice.

This reflects the collaborative approach Mars is trying to adopt with all their stakeholders to reach their climate targets.  “Suppliers that demonstrate substantial progress in reducing their environmental footprint are recognised and rewarded with additional business,” explains Parkin. “This metrics-driven strategy ensures that our suppliers have a significant role in our journey towards sustainability, aligning their efforts with our commitment to addressing the climate crisis.”

To achieve this relationship, Mars sets clear expectations for suppliers regarding emissions reduction, renewable energy adoption, and sustainable sourcing. They then incorporate those climate performance metrics into some of their biggest supplier’s evaluation criteria.

 

Recipe optimisation 

For one of the global leaders in food products, pet supplies and confectionery, they are also able to leverage product design and ingredients into their net-zero strategy.  Mars describes that as ‘optimising recipes’ and procurement is again integral in making that aspect of the plan a success.

“Our procurement team actively collaborates with suppliers to identify and source new ingredients in a way which lowers emissions and advances our sustainability goals,” says Parkin. “This collaborative approach helps improve our supply chain sustainability performance, including the procurement of ingredients that have a reduced carbon footprint.”

This approach of working closely with the suppliers who provide the ingredients, allows Mars to enhance their product offerings while at the same time finding new ways to reduce the emissions associated with the recipes.

 

Buying-in to the road map 

Parkin is praising the positive reaction from their suppliers to the Net Zero Roadmap, but that is also because many of those partners have been on a sustainability journey with the company for a number of years, since setting out their first scope 3 targets for their full value chain back in 2017.

“Suppliers have expressed their appreciation for the transparency and specificity of our roadmap,” explains Parkin.  “It has enabled them to better understand our expectations and how their contributions fit into the broader picture of achieving net zero emissions. The roadmap’s emphasis on collaboration and collective responsibility has resonated with our suppliers, fostering a spirit of partnership in our shared journey towards sustainability.”

The partnership allows procurement partners to take proactive steps in their organisations and strategies to address their emissions, and be part of a collective responsibility to finding both a sustainable future and a productive business relationship.

Aside from the influence such an ambitious net-zero strategy has on the culture and direction of a company like Mars Inc, it also creates a larger impression on other companies in their business ecosystem as other brands and businesses look to follow their lead.

Barry Parkin is aware of the value of that influence, and how their procurement and supply chain can help lead others to greater sustainable achievements.

“Global companies like Mars play an important role in shaping sustainability standards and advancing climate action at scale,” he explains. “Our influence extends across the globe, allowing us to inspire change on a wider scale. When companies set high sustainability standards, it encourages others in their industries to follow suit.”

He adds: “Companies like Mars have the resources, expertise, and innovation capabilities needed to pioneer sustainable practices and technologies.

“We can invest significantly in research and development, pilot groundbreaking initiatives, and implement sustainable solutions beyond the reach of smaller organisations. This proactive approach not only benefits the environment but also builds a positive reputation with environmentally conscious consumers and attracts like-minded partners.”

If a globally recognised brand like Mars can leverage their sprawling supply and procurement network for better environmental outcomes, it can only help to bring others on the same journey. “This ripple effect fosters industry-wide transformation, promoting a more sustainable future,” finishes Parkin. “If a business such as Mars can halve it’s footprint by 2030, that matters.”

 


 

 

Source   Sustainability

Walmart and General Mills build a sustainable food supply

Walmart and General Mills build a sustainable food supply
Working as partners in regenerative agriculture projects, Walmart and General Mills are working with authorities to create a more sustainable food system

Disruption of the food supply chain is perhaps the single most impactful event that can have detrimental effects globally. Also, the emissions that are produced as a result of the global food supply are just as impactful to our future and the shortage of food itself.

According to 2018 data from the United States Department of Agriculture (USDA) meat, eggs and nuts are the primary sources of food across the states while vegetables are the third largest and fruit is at the bottom. However, from what we’ve seen over recent years, many would suggest the meat supply chain accounts for a large proportion of the industry’s emissions and is therefore unsustainable in its current mass-production form.

Now, this is not to blame the humble cow or any other animal for climate change, but more the processes in which meat is reared and distributed across the US. With certain regenerative principles in place—and the support from the public to reduce consumption—farms are known to provide higher quality goods that are nutritionally beneficial.

How does regenerative agriculture support a sustainable food system?

This is neither a slight of common habits, nor a simple task to conduct. In order to make the food system sustainable economically, consistent, and less impactful to the climate, examples of regenerative agriculture show the impacts of more mindful farming.

On the 17th October 2023, General Mills and Walmart announced a joint effort that will likely spark further consideration as the organisations advance regenerative agriculture across 600,000 acres of US soil by 2030. This project is about reducing the emissions and resource-drain from farming, improving soil health and, in turn, product quality.

The primary projects will be supported through grant funding from the National Fish and Wildlife Foundation (NFWF) and will reshape the process for growing crops like wheat across the Northern and Southern Great Plains.

Based on the research from the USDA, grains are the second most-consumed foods in the country after the meat, eggs, and nuts group.

These two corporations will also collaborate with Sam’s Club, a division of Walmart that offers superior quality and pricing for millions of items supplied to the US and Puerto Rico.

“Through this partnership, we will work hand-in-hand with Walmart and Sam’s Club to help regenerate the acres of land in the key regions where we source ingredients for our shared business,” says Jon Nudi, Group President, North America Retail at General Mills.

“We are excited by the opportunity to bring our products, including Pillsbury refrigerated dough and Blue Buffalo pet food and treats, to Walmart shelves more sustainably, with the help of our merchants and farmer partners.”

The three organisations believe that regenerative agriculture holds the key to emissions reduction in the supply chain and tackles many of the challenges within the modern food system. They also recognise their collective footprint and overall impact on the industry, and therefore will set the benchmark for regenerative agriculture implementation in the wider industry.

Walmart’s and General Mills’ sustainability alignment

Both organisations are impacted by the fate of the planet. As influential businesses in the food supply chain—Walmart operating across many facets of consumer goods—sustainability is now at the core of their future projects. Walmart’s net-zero emissions target is set for 2040 and will be driven by a number of investments into clean energy, providing 100% renewables to its facilities by 2035. The path to net-zero in Scope 3 requires further action to support its partners, suppliers, and customers to deliver on their own emissions targets.

When it comes to securing the food supply chain, Walmart dedicates much of its support to preserving land for regenerative projects and in investing deforestation-free product sourcing, which was recognised as one of the key downfalls of the meat supply chain—limited space resulting in deforestation.

“We’re committing to making the everyday choice the more sustainable choice for consumers,” says John Laney, Executive Vice President, Food at Walmart US.

“This collaboration is an example of how we are working across our value chain on intentional interventions to help advance regenerative agriculture and ensure surety of supply for these essential food products for the long term.”

As a key supplier of food globally, General Mills owns some of the much-loved brands and will continue to ensure that these products are delivered at lower impact to the planet. Also focusing on regenerative agriculture, energy sourcing and packaging innovation will also allow the company to drive healthier approaches in the food supply chain.

 

 


 

 

Source   Sustainability

More Conscious Travelers, Climate Concerns Impacting Accommodation Design

More Conscious Travelers, Climate Concerns Impacting Accommodation Design

In a race to avert the climate crisis, the tourism industry is evolving. More travelers decide to keep their feet on the ground; the industry responded with flight-free services and itineraries. Concerned with how the climate impacts biodiversity and wilderness areas, many tour operators began actively supporting carbon reduction and rewilding programs. It turns out that where travelers finally lay their heads at the end of a busy day affects the climate, as well.

According to research conducted by the Sustainable Hospitality Alliance, “The hotel industry needs to reduce its carbon emissions by 66 percent per room by 2030 and 90 percent per room by 2050 to ensure that the growth forecast for the industry does not lead to a corresponding increase in carbon emissions.”

Responding to regulatory changes, consumer preferences and proactive climate commitments, hotel chains and independently owned accommodations are making changes — though at varying speeds and to differing degrees. This includes pursuing LEED certification, shifting to renewable energy, and reducing waste and water consumption, among other actions.

“When I designed our first villa, Villa Punto de Vista, that was back in 2007 — just after the release of Al Gore’s An Inconvenient Truth — so I was already in tune with the concept of a warming planet and designed the building with an eco-conscious mindset,” said David Konwiser, co-founder and architect of the Costa Rica property. “However, ten years later and after seeing the devastating storms and worsening drought ravage our planet over that next decade, I designed our second villa (Villa La Isla) with even more emphasis on carbon neutrality.”

From natural fiber ceilings produced by Indigenous Peoples living in Costa Rica’s mountains to the microfiber bedding made from recycled plastic bags, nearly every square inch of the property reflects Konwiser’s climate concerns. “The villas’ materials and finishes had to be of premium quality, ecologically sourced, and surpass the challenging esthetic and safety expectations of the world’s most discerning travelers,” he said.

Villa Punto de Vista certainly isn’t the only property built from the ground up with the climate top of mind. In fact, there’s been a wave of them lately: Svart — a luxury property in Norway expected to open in 2024 — is said to be the first off-grid, energy-positive resort. The recently opened Hotel Marcel in New Haven, Connecticut, is completely powered by solar electricity.

Similarly, Populus — a 265-room hotel currently under construction in Denver, Colorado — is being billed as the first carbon-positive hotel in the US. It features window “lids” that provide shade while improving energy performance and a roof terrace planted with regional vegetation intended to attract local wildlife and insects.

Critics of “sustainable” buildings rightly point out that an eco-friendly, resource-efficient building is one thing; but construction itself has a massive carbon footprint. As noted in a 2022 Bloomberg article, the Marcel may be designated LEED Platinum; but on its way to being the US’s first net-zero-emissions hotel, its calculations failed to include embodied carbon — which includes all the greenhouse gases emitted during renovation, construction, demolition and disposal of a building.

According to Transforming Existing Hotels to Net-Zero Carbon, a guide developed by four companies including IHG Hotels & Resorts, embodied carbon makes up between 30 and 70 percent of a typical building’s total lifecycle emissions. Further, approximately 80 percent of the buildings that will be in use in 2050 are already in existence today.

“Adapting and retrofitting existing buildings to lower GHG emissions is critical and needs to be embraced as part of the hotel sector’s ‘Routemap to Zero Carbon,’ particularly as expectations of hotel investors, owners, staff, and guests shift towards greener, more sustainable models of investment, business operation, and living,” noted Gillian Breen, director of Gleeds at the time of Transforming Existing Hotels’ publication.

The natural solution for most properties, then, is to renovate existing buildings with an eye on sustainability. For example, Hotel Belmar — located in Costa Rica’s Monteverde cloud forest — was built in 1985 with environmental stewardship, cultural appreciation and economic benefits for the local community in mind. Upgrades nearly 30 years later further reduced its environmental footprint.

“The 2012 renovation of Hotel Belmar kept our traditional wooden architecture; but we adapted most rooms, some bathrooms and hallways to have floor-to-ceiling windows, skylights and big sliding glass doors,” said Pedro Belmar, CEO and general manager of the hotel. This increased lighting efficiency and ventilation, and decreased energy consumption. Property owners also invested in solar panels, upgraded water-treatment systems and installed rain-collector systems.

Regardless of whether properties are renovated or built more sustainably (while accounting for embodied carbon), time is of the essence when it comes to making climate-conscious accommodations an industry standard.

“It is widely acknowledged that this decade needs to be one of climate action,” wrote Simon Gill, hotels and leisure business leader for UKIMEA at Arup, in his forward to Transforming Existing Hotels. “Without taking bold steps now, we will not be able to achieve the net-zero carbon target set for 2050 and avert climate catastrophe.”

 

 


 

 

Source  Sustainable Life Media

Carlsberg ramps up regenerative farming practices across barley supply chain

Carlsberg ramps up regenerative farming practices across barley supply chain

Carlsberg, which is targeting a net-zero value chain by 2040, has confirmed that three of its brands in the UK, Finland and France will source barley from regenerative farming practices.

Last year, the company set a target to ensure that 30% of raw materials are sourced using regenerative agricultural practices by 2030, so that, by 2040 100% of all raw materials are sourced this way. Those targets have since been enshrined in a new zero farming footprint ambition within its recently launched ESG programme.

The Group states that using regenerative farming practices will help farmers promote biodiversity, restore soil health and carbon sequestration, and is therefore an important tool to help combat the climate crisis.

Carlsberg’s senior director of sustainability and ESG Simon Boas Hoffmeyer said: “We cannot reach our targets alone. Partnerships are vital across the value chain, which is why we are collaborating closely with local farmers, traders, maltsters, agronomists and NGOs who provide expertise in the transition to regeneratively grown barley.

“Over time this will allow us to offer our consumers and customers lower-carbon beers and contribute to improving the ecosystems we rely on. We will cooperate with all relevant stakeholders to ensure that we as a company and our industry as a whole, strives towards a ZERO Farming Footprint.”

Progress is already happening. In collaboration with barley malt supplier Soufflet, Carlsberg has used barley that has been cultivated using organic and regenerative agricultural practices. Cover crops were introduced in the barley fields to assist with regenerative farming processes. Soufflet is a key member of the supply chain for the Group’s Kronenbourg 1664 brand.

The aim is that, by 2026, Kronenbourg 1664 Blonde will be brewed with 100% barley malt sourced from this new agricultural value chain, with 250 partner farmers producing 5,000 hectares of responsibly sourced barley that is traceable using blockchain technology, the Group has this week announced.

Now, the company has unveiled two extra new initiatives to build towards its regenerative target.

In the UK, Carlsberg Marston’s Brewing Company (CMBC) has committed to 100% regenerative barley for Carlsberg Danish Pilsner by 2027, and for all UK brands by 2031. The Group has contracted the first 23 farmers to begin work on producing 7,000 tonnes of regenerative barley this year alone.

In Finland, suppliers are producing regenerative barley to Sinebrychoff, a Carlsberg Group company, for its annual KOFF Christmas Beer.

 

 


 

 

Source edie

Compass Group meets EV goal early, increases climate targets for food-related emissions

Compass Group meets EV goal early, increases climate targets for food-related emissions

The British company has this week published its first in-depth climate impact report, developed to communicate progress towards its 2030 net-zero goal that it unveiled in 2021. The goal entails reducing absolute emissions across all scopes by at least 69% by 2030. against a 2019 baseline. It has been validated in line with the Science-Based Targets Initiative’s (SBTi) 1.5C trajectory.

Compass Group UK&I will finalise a plan to neutralise residual emissions in 2023, detailing its approach to insetting and offsetting.

According to the report, Compass Group UK&I has delivered a 6.46% reduction in absolute emissions since 2019. The business has grown, but it has posted significant decreases in emissions across all Scopes – more than 57% for Scope 1 (direct) emissions; more than 81% for Scope 2 (power-related) emissions and more than 20% for food-related indirect emissions (Scope 3).

On Scope 2 emissions, the report confirms that Compass Group UK&I delivered its ambition to procure 100% renewable electricity by 2022 on time. This is a significant change, given that, in 2019, just 2% of the company’s electricity mix was renewable.

The report also confirms that Compass Group UK&I has achieved its EV ambitions, set for 2024, two years early. The business had pledged to introduce an electric policy for cars by 2024 but this was brought in last year. All cars on order are pure electric. One-third of the firm’s car fleet is now pure-electric and a further 18% are hybrid.

 

Lower-carbon menus

Like most food businesses, Compass Group UK&I sees a significant majority of its emissions footprint – more than 77% – arising from indirect (Scope 3) sources. More than 64% of its overall emissions footprint lies in the lifecycle of ingredients and foods.

In setting its net-zero target, Compass Group UK&I pledged to switch at least 40% of its food offerings to plant-based proteins by 2030, with an interim target of at least 25% by 2025. It has also forged ahead with plans to source more meat, dairy and produce from regenerative farms and to source more locally and seasonally to reduce transport-related emissions.

Work so far has resulted in emissions from animal proteins falling more than one-third since 2018.

The report reveals that Compass Group UK&I’s 4,000+ chefs have either delivered – or are in the process of delivering – more than 90,000 recipe reformulations in support of this work. It also confirmed that more than 25,000 frontline catering staff have completed carbon training, which is now being rolled out on a mandatory basis.

New targets

Compass Group UK&I’s director of delivery for net-zero, Carolyn Ball, said: “As knowledge and understanding continues to grow within our teams, our clients, suppliers and partners, we are seeing a gear shift across our entire value chain. There is a long way to go and no shortcuts to get there, but our responsibility and opportunity to act is as clear as it is compelling.”

One shift in knowledge for businesses procuring goods from agriculture supply chains is the introduction of specific Forest, Land and Agriculture (FLAG) Guidance from the SBTi. The guidance clarifies how companies that are linked to land-intensive activities across the value chain can account for emissions reduction and removal.

Following the launch of initial guidance last year, the SBTi is set to provide an update this year.

As such, Compass Group UK&I has increased its emissions targets. It has now pledged to deliver a 72% reduction in FLAG emissions by 2030 and 90% reduction in non-FLAG emissions by 2030, against a 2019 baseline.

The report also includes new commitments to end deforestation in the supply chains of directly-sourced deforestation-linked commodities by 2025 and to increase non-food-waste recycling on all sites where Compass manages the contract by 2030.

 

 


 

 

Source edie

Major London ULEZ expansion to go ahead next year

Major London ULEZ expansion to go ahead next year

Speaking this morning (25 November), Khan confirmed that the ULEZ will be expanded to the entire Greater London Authority boundary from 29 August 2023. The move was first floated in January, when the Authority provided additional details on its plans for reaching net-zero carbon dioxide emissions by 2030. Plans were then firmed up as the year went on, and a consultation was launched.

Most people who responded to the consultation opposed the planned expansion. Common concerns included the impact on low-income people amid the current cost-of-living crisis.

“Now is not the time to hammer Londoners with a £12.50 daily cost-of-living charge. Residents have made their views very clear to the mayor: they do not want the ULEZ expansion. The mayor must listen to them, scrap these plans and use the £250m saved on real measures that tackle air pollution,” said the Greater London Authority Conservatives’ transport spokesman Nick Rogers.

Khan said the cost of living had been a “key consideration” and that it had “not been an easy decision”. But he argued that, “in the end, public health comes before political expediency”. He also stated that plans will be put in place to ease the impact on motorists from vulnerable backgrounds, including an expanded scrappage scheme fund, free travel cards for those scrapping cars, and a four-year grace period for those with disabilities.

Drivers entering the ULEZ using a vehicle that does not comply with Euro 6 emissions requirements are charged £12.50 per day. There are exemptions for certain vehicles, including wheelchair-accessible vehicles and mini busses used by community groups.

The ULEZ was first introduced in 2019 and has since been expanded to an area size 18 times greater than the original boundary. It currently covers the area within London’s north-circular and south-circular orbital roads.

Pre-pandemic and pre-expansion, the ULEZ resulted in a 44% reduction in roadside nitrogen dioxide (NO2) emissions. Figures from 2021 shows that the ULEZ resulted in a 5% reduction in CO2 emissions from road transport and a 40% reduction in particulate matter.

“The ULEZ so far has been transformational, reducing harmful pollution levels by almost a half in central London,” Khan stated today. “But there is still far too much toxic air pollution permanently damaging the health of young Londoners and leading to thousands of early deaths every year, with the greatest number of deaths in the outer London boroughs.”

For 7.1% of deaths in Greater London, according to London City Hall, exposure to air pollution is a contributing factor.

The British Safety Council has come out in support of the expansion. The organisation’s chairman Peter McGettrick said:

“The expansion of ULEZ is a welcome development, which will improve the air quality for many millions of people living and working across London, and the inclusion of the scrappage scheme will support businesses and residents alike either to update their vehicles or use public transport.

“4,000 people die every year in London due to air pollution, and many people’s jobs mean they have to work outside and breathe dangerous fumes. We need employers, businesses and others in London to get behind this change and help bring down the shocking death toll that still exists.”

 

 


 

 

Source edie

Roll-Royce, easyJet test run hydrogen airplane engine

Roll-Royce, easyJet test run hydrogen airplane engine

The ground test, which marks a first for hydrogen-powered airplane engines, could potentially lead the way for net-zero flying, a long sought after goal
Reaching for the sky, Rolls-Royce and easyJet have achieved a new milestone in the history of aviation: the world’s first test run of a modern aero engine powered by hydrogen.

The test run – conducted on ground using green hydrogen powered by wind and tidal power – marks a step forward in what could be a zero-carbon aviation fuel of the future. Hydrogen has long been seen as a possible way to make the airline industry – which is one of the planet’s biggest polluters – more sustainable.

 

The quest for net zero

It also speaks volumes for the decarbonisation strategies of both Rolls-Royce and easyJet, two companies that first announced their partnership in July after they signed up to the UN-backed Race to Zero campaign. This campaign includes a commitment to reach net-zero carbon emissions by 2050.

Commenting on the achievement, Rolls-Royce Chief Technology Officer Grazia Vittadini commented: “The success of this hydrogen test is an exciting milestone. We only announced our partnership with easyJet in July and we are already off to an incredible start with this landmark achievement.

“We are pushing the boundaries to discover the zero carbon possibilities of hydrogen, which could help reshape the future of flight.”

The test itself occurred at a facility at MoD Boscombe Down, UK. A converted Rolls-Royce AE 2100-A regional aircraft engine was used, and the green hydrogen powering the operation was supplied by the European Marine Energy Centre. This green hydrogen was generated at a hydrogen production facility in the Orkney Islands, UK.

Speaking to the advantages of hydrogen, easyJet CEO Johan Lundgren said the following: “We are committed to continuing to support this ground-breaking research because hydrogen offers great possibilities for a range of aircraft, including easyJet-sized aircraft. That will be a huge step forward in meeting the challenge of net zero by 2050.”

 

 


 

 

Source Sustainability