Mars' mission: Back Obama on cleaner emissions
Like Pope Francis, major corporations around the world are stepping up their calls for governments to take dramatic steps to address climate change.
Among them is Mars Inc., the maker of M&Ms, Snickers bars and other foods, which is well known for its reputation for keeping quiet on most business matters. But when it comes to the environment, the company is outspoken.
"Obviously, there's a lot being talked about regarding climate change at the moment," Barry Parkin, the chief sustainability officer for Mars, said as Pope Francis left Washington on Thursday. "We have a strong point of view on this, and that is that our company and every company needs to take responsibility for the emissions involved in their supply chain."
The McLean, Va.-based company is matching its words with actions, having set an aggressive goal of eliminating its reliance on fossil fuels like coal, natural gas and oil as well as its emissions of greenhouse gases by 2040.
The first major milestone for the campaign, called "Sustainable in a Generation," is 2015, when Mars expects to reduce its fossil-fuel use and carbon emissions by 25%, compared to 2007 levels.
Contributing substantially to Mars' goals is a 211-megawatt wind power farm near Lamesa, Texas. Mars is purchasing the electricity and associated renewable-energy credits from the project, which opened earlier this year. That's enough power to provide the equivalent of all of the electricity used at the company's 70 sites in the U.S., including 37 factories.
Parkin said the Mesquite Creek Wind project, which is owned by Duke Energy Renewables and Sumitomo Corporation of Americas, is not only key to Mars' sustainability objectives but also cost-effective for the company. Mars plans more such projects in other countries.
"The argument that it's a cost to business to switch to renewable energy is no longer true," Parkin said in an interview. "The economics now are at parity or better (compared to fossil energy) and that's only going to improve over time. It's not only saving the planet, but it's saving money. That's exciting."
Parkin and other Mars executives will deliver the company's message this week at Climate Week events in New York as well as during meetings in Washington of food and beverage companies. The latter will be cosponsored by the nonprofit sustainability group Ceres, Sen. Sheldon Whitehouse, D-R.I., and Rep. Chris Gibson, R-N.Y.
"You'll see us making a lot of effort so that the company's voice is heard over the next few months leading up to the negotiations in Paris," Parkin said, referring to United Nations-sponsored talks among the U.S. and other nations seeking a new global agreement to address climate change. The meeting is scheduled for Nov. 30 to Dec. 11.
"Governments are hearing from companies that we want them to step forward. We need them to step up their commitments in light of the commitments that the corporate sector is making," he said.
During his visit to the White House this past week, China's leader, Xi Jinping, and President Obama cited new steps to combat climate change, including an announcement by Xi that his government would implement a nationwide program in 2017 to cap carbon emissions. Their statements came amid calls by Pope Francis to Congress and the U.N. General Assembly to adopt stronger climate policies.
So far, Mars, like Pope Francis, sees much to like in the Obama administration's initiative regarding climate change, the Clean Power Plan. In July, Mars was among 365 U.S. companies and investors that endorsed the Environmental Protection Agency-led effort to cut carbon emissions by 32% by 2030, compared to 2005 levels. Among the others signing a letter organized by Ceres were General Mills, Staples and Unilever.
The EPA plan has drawn opposition from some electric utilities that claim it will force premature shutdown of coal power plants and threaten the reliability of the grid, as well as from some politicians who dispute that the climate is warming or that humans are responsible for any such change.
Parkin called those claims "highly unfortunate."
"As a company, we clearly believe that climate change is happening and is caused by human activities. We built our strategy from that assumption," he said.
"What we're doing isn't a philanthropic strategy, it's a business strategy. It will lead us to lower costs than we would have had before, while we're doing our best to preserve the planet."
Bill Loveless — @bill_loveless on Twitter — is a veteran energy journalist and television commentator in Washington. He is a former host of the TV program Platts Energy Week.