Global Commitment 2021 Signatory Report

Mars is a diverse global business that has been proudly family owned for over 100 years with four segments: Mars Petcare, Mars Wrigley, Mars Food, and Mars Edge. Our portfolio of brands offers quality and value to consumers and includes WHISKAS®, M&M’S®, SNICKERS®, EXTRA®, UNCLE BEN’S® and many more

Africa: Eastern Africa, Middle Africa, Northern Africa, Southern Africa, Western Africa

America: Caribbean, Central America, Northern America, South America

Asia: Eastern Asia, Central Asia, South-eastern Asia, Southern Asia, Western Asia

Europe: Eastern Europe, Northern Europe, Southern Europe, Western Europe

Oceania: Australia and New Zealand, Melanesia, Micronesia and Polynesia

We’ve made good progress on eliminating problematic or unnecessary plastic packaging. We’ve:

• Eliminated 210 tons of PVC with plans to remove the remaining by Q2 2022, leaving our portfolio 100% PVC free

• Removed plastic straws from our portfolio and removed all plastic zippers (49 million units) from our Mars Wrigley portfolio

• Removed 450 tons of PE by light-weighting gum bottles in China.

• Removed the gusset from wet pouches in Russia saving 107 tons of plastic and downgauged flexible films for our EU Care and Treats products saving 20mt

• Reduced the plastic used to make our 60g DREAMIES® packs by 10% in early 2021, removing 47mt of plastic

• Removed 23mt of plastic in early 2021 from our Pedigree Schmackos® sachets and cases, a 12% reduction in plastic usage. This will impact almost 20 million sachets of Schmackos® in 2021

• Implemented pilots to simplify flexible plastic packaging across a range of products, including headspace reduction for our EU pet Care & Treats portfolio

Across our Mars business, we are taking action to redesign our flexible plastic packaging and are trialing new delivery models that avoid single use plastic altogether. We’re also piloting plastic alternatives and plan to transition some of our plastic multipack overwraps to recyclable paper, reducing our use of virgin plastic and increasing circularity. In parts of our business, we’re working towards replacing plastic in our small flexible portfolio with biodegradable or compostable materials. These changes will be executed from 2022 onwards, starting with compostable overwraps in North America. We’re also aiming for our ready-to-heat products to be made entirely from mono-material by 2025. In 2022 we will remove PVC from our squeeze-on and Herbs & Spices formats in Australia, any remaining PVC will be eliminated from the Food portfolio that year.

Recent or in-progress pilots of reuse models for new products or packaging, Reuse models in place for consumer facing products or packaging

Product line(s) with reuse model(s): 4

Market(s) where reuse models are available today: Western Europe (5% of total)

We continue to work to develop reuse options for all appropriate packaging and are trialing several innovative re-use programs. One example is our Petcare brand PERFECT FIT™ which became part of Loop in 2020, an e-commerce platform that replaces single-use plastic packaging with durable, reusable packaging. In Mars Food, we launched a pilot in France where consumers can refill reusable cotton bags with BEN’S ORIGINAL™ rice and EBLY® in-store, removing the need for packaging altogether. Due to the high proportion of impulse buy, consumed on-the-go products, reuse remains a challenge for parts of our packaging portfolio. As a result, much of our efforts are focused on alternative solutions such as eliminating problematic or unnecessary plastic, redesigning our packaging to be biodegradable, or compostable, and incorporating recycled content. We’re also committed to supporting the growth of a circular economy and are working on solutions to improve the recyclability of small flexibles.

Piloting reuse models for new products or packaging: 10 pilots

Introducing or expanding reuse models for non-consumer facing packaging

Introducing or expanding reuse models for consumer facing products/packaging

We’re testing the Loop initiative within our Mars Wrigley portfolio starting with a pilot in Australia that launched in 2021. In China we’re also launching a trial of reusable confectionary jars, while in North America we’re exploring gum pack refills for online sales. Within Mars Food we’re building on our learnings from our France bulk reuse pilot and are planning to launch additional pilots in Europe and Australia to test in-store reuse models. Across Mars Petcare we’re working with our retailer partners to launch multiple refill in-store pilots across Europe. In the UK we’re launching a trial with Asda to expand their refill zones to include a range of our most popular petfood brands, including WHISKAS® and PEDIGREE®. We also have projects in the pipeline for North America and Latin America which involve the launch of reuse models, and we are evaluating the opportunity to expand our work with the Loop initiative within the Australia market.

As a result of consumption habits changing during the pandemic, our portfolio mix shifted toward products in flexible packaging. This caused our RRC% to drop slightly as a greater proportion of our rigid portfolio is recyclable ready. In 2020 we created the food industry’s first ready-to-heat pouch that is recyclable where infrastructure exists, the product launched in April 2021 in the UK. We also began piloting a new recyclability labeling program. Mars Wrigley began testing mono-material polyethylene M&M® pouches within the French market, and in early 2021 unveiled a 30-piece recyclable ORBIT® Mega Pack. Royal Canin piloted its first flexible mono-material plastic packaging in several European countries in the first half of 2021.

Mars Petcare continues to expand in-store take-back recycling with the launch of several Terracycle® programs, including initiatives across the Royal Canin® portfolio in Canada & Australia. In addition, we’re:

• Partnering to encourage the scale-up of recycling systems;

• Co-chairing the Consumer Goods Forum Plastic Waste Coalition of Action; and

• Evaluating the economics and feasibility of advanced recycling to scale as a safe, credible and environmentally sound solution.

In 2020 we joined CEFLEX’s Steering Committee, as well as CITEO. We also joined the US, UK and ANZPAC plastics pacts, as well as several on-pack labelling schemes including the Australasian Recycling Label (ARL) & The How2Recycle label in the U.S.

Yes

43.4 % (see endnotes for more information on the packaging considered as designed for recycling)

Please note: This optional metric is not the same as the percentage of recyclable plastic packaging contributing towards the 100% target. More information on the Global Commitment recyclability definition can be found in the 2021 Progress Report.

100% reusable, recyclable or compostable

We will support the growth of a circular economy by developing compostable solutions for small flexibles, exploring technical solutions like mono-materials for larger flexibles and simplifying rigids. As part of this we’re launching compostable overwraps in North America, as well as several material substitution pilots in 2021, including the BALISTO® Paper Flow wrap & the M&M’s® mono-material pouch. Royal Canin® has simplified the design and structure of its dry pet food bags with the aim of boosting circularity, piloting its first flexible mono-material plastic packaging in some EU countries in 2021. We’re also developing a scale-up plan for full deployment of our recyclable where infrastructure exists ready-to-heat packaging by 2025.

We’ll continue to evolve our in-store take-back programs with the launch of additional Terracycle® initiatives. In the first half of 2021 we launched a project in the US for KARMA®; later in 2021 we are also evaluating an additional project across our NA petfood range, including SHEBA®, CESAR®, NUTRO®, IAMS™, and ULTRA®. We’re continuing our efforts to advance packaging sortation with the 2021 launch of a partnership with Barbier. We’re also undertaking a project with our partners Systemiq to assess the partnership ecosystem in high leakage markets. Our aim is to develop a portfolio of partners that we can invest in to tackle the issue of plastic leakage, and drive long-term, systemic improvements to waste management infrastructure.

We’re targeting 30% average recycled content in our plastic packaging by 2025 and are beginning to incorporate recycled plastic into the primary packaging of some of our most popular brands. To support this, we’ve launched a global partnership with SABIC and Huhtamaki to purchase additional recycled material, an important step towards reducing the use of virgin plastic across our portfolio. Work on technical qualification began in 2020 to enable PCR content from advanced recycling in our wet retort pouches in Europe. In Brazil, we rolled out a 100% recycled content PE film saving 90 tons of virgin plastic. We also launched a new API Fishcare bottle design with 35% recycled plastic, added 50% rPET to our drinks bottles (350 tons), and our chocolate powder jars now use 30% rHDPE.

We’re actively sourcing pyrolysis oil and PCR resins as precursors to PCR content in our packaging. We initiated numerous value chain relationships to encourage investment into collection and sortation of plastic waste as well as its conversion to pyrolysis oil and ultimately to certified PCR resin. There is a lack of availability of recycled resin, especially for olefins used in flexible packaging, and this shortage must be addressed before final scale up plans can be defined. In 2021 we will launch both a gum bottle and celebration bottle in the EU that contains 30% recycled content (<1000 tons of rPET). We’re preparing to launch similar projects in other countries in the coming years. We’re also simultaneously evaluating the potential to incorporate 30% recycled content in our ready-to-heat Mars Food pouches in Europe. Work is already underway to achieve 30% recycled content (120 MT) in our UK ready-to-heat pouches.

We’re making substantial investments to ensure we deliver against our goals. We’ve hired numerous associates dedicated to sustainable packaging; this includes a significant scale-up of our R&D capacity to facilitate the planned redesign of our portfolio. We’re purchasing and supporting the development of alternative materials, including biodegradable and compostable plastic. We’re also scaling up our investments into partnerships & coalitions, and the development and roll-out of EPR.

We generally separate our packaging data by component (e.g., bottles and labels are reported separately according to their material type). This is why it is common to see “100%” in our step 2 assessment for some packaging categories: If there were problematic elements which were part of separable components, they were already classified into a separate relevant category.

We considered items as “designed for recycling” if they met the following three criteria: mono-material, large enough to avoid being screened out during the sorting phase, and having no design hurdles such as problematic materials, inks, etc.