Mars Integrates Purpose and Profit Through Long-Term Sustainability Strategy

Key Quotes

"We are an old company from 1911 and yet we are young and we have a very diverse business with anything from you know consumer goods products to uh a healthcare business with more than 3,000 veterinary hospitals and the family uh dynamic plays out in a number of ways the first thing is that um we can take a long term view we like to think we think in generations and not just in quarters and because of our ownership we carry the name of our owners on the door we have an obligation to make sure that we uh behave well in society."

Poul Weihrauch explains that Mars's family ownership structure allows for a generational perspective on business strategy, distinguishing it from companies focused solely on quarterly results. This ownership model instills a sense of obligation to act responsibly within society, influencing decisions beyond immediate financial gains.

"The toughest part is that about 85% of all environmental footprints it's outside the company's or what is called scope three in technical terms and that is working with um predominantly the farmers across the world it could be cocoa beans it could be protein it could be uh various corns and convert these supply chains into becoming net neutral."

Weihrauch highlights the significant challenge Mars faces in achieving its sustainability goals, particularly concerning Scope 3 emissions. He points out that the majority of environmental impact originates in the supply chain, requiring extensive collaboration with farmers globally to transform agricultural practices.

"I would argue that this has absolutely nothing to do with politics at all if you are a food company you fundamentally live from converting crops that you buy processing them and packaging there is no person on this planet who cannot say that there are significant impacts because of climatic changes because of hurricanes because of warming temperatures where crops cannot be grown in certain regions where they used to be grown."

Weihrauch asserts that climate change is not a political issue but a fundamental reality impacting the food industry. He uses the example of a former rice-growing region in Italy now lacking sufficient water to illustrate how changing climate directly affects crop cultivation and, consequently, food availability.

"We have tried to integrate sustainability in the way we do business so we actually moved the responsibility in the beginning of this into finance to make sure that when we review the plan so coincidentally we are reviewing plans for 2026 this week as part of this we are reviewing the investment levels in sustainability in our food business our pet food business our um snacking business and and in our veterinary business."

Weihrauch describes Mars's strategic integration of sustainability into its core business operations by assigning responsibility to the finance department. This ensures that sustainability investments are reviewed alongside financial plans, demonstrating the company's commitment to treating these initiatives with the same rigor as traditional financial objectives.

"We we like to say that that purpose and profit are not enemies that it is our task that we have to do both and I think you when you get yourself into the mindset that both of them are important objectives you start thinking differently about it and you know as a as a corporation if I take the last five years 80% of our growth is is organic and a lot of that has come from products where we have had done work on sustainability."

Weihrauch argues that purpose and profit are not mutually exclusive but rather complementary objectives for Mars. He supports this by noting that a significant portion of the company's organic growth over the past five years has stemmed from products developed with a focus on sustainability.

"The most important thing is personal learning. It has the biggest correlation and the way you learn, you need high curiosity. So it's incredibly important as a leader that you are curious about the world that you are curious about people that you can engage with people and get the best out of people and that you make sure that you have your tap on a lot of things in society and see where where changes is coming and going."

Weihrauch emphasizes the critical role of personal learning and curiosity for leaders, especially within a long-standing company like Mars. He suggests that leaders must actively engage with the world and people around them to foster innovation and adapt to societal changes, rather than becoming complacent with legacy thinking.