Guidehouse, Mars, McCormick, and PepsiCo partner on supplier sustainability

05 May 2021 3 min. read

Mars, McCormick, and PepsiCo have partnered with management consulting firm Guidehouse to launch a “Supplier Leadership on Climate Transition” coalition which will help the companies’ suppliers take action on emissions reduction.

The trio of food and beverage manufacturers have all committed to ambitious sustainability plans in the last several years. Mars has transitioned 54% of its global power usage to renewables, and estimates that it will have cut 42% of emissions from direct operations by 2024. The company has committed to reducing absolute scope 1, 2, and 3 greenhouse gas (GHG) emissions 27% by 2025, and 67% by 2050 from a 2015 base year.

Scope 1 refers to direct emissions from owned sources, scope 2 refers to indirect emissions from purchased electricity, and scope 3 includes other indirect emissions throughout a firm’s value chain.

McCormick last year announced it will adopt sustainable sourcing for its top five ingredients while also cutting emissions. The company has committed to reducing scope 1 and 2 GHG emissions by 20% by 2025 and scope 3 emissions 16% by 2030.

Guidehouse, Mars, McCormick, and Pepsico partner on supplier sustainability

PepsiCo recently pledged to source all of its US electricity from renewables. The company is aiming to reduce scope 1 and 2 emissions 75% by 2030 and scope 3 emissions 40% by 2030.

Though companies can reduce water usage, upcycle ingredients, and switch to renewable power sources to address scope 1 and 2 emissions, tackling scope 3 emissions means addressing the carbon footprint of suppliers throughout their value chain.

To this end, the three global manufacturers, alongside Guidehouse, will provide suppliers with resources, tools, and knowledge to reduce carbon emissions. Within the Supplier Leadership on Climate Transition coalition (LoCT), the organizations will mentor and train suppliers on emissions reduction, as well as help them calculate GHG emissions and make science-based targets in line with the Paris Agreement.

“Emissions reductions are now essential, and global supply chains contain some of the most significant and difficult-to-reduce emissions,” said Britt Harter, Guidehouse’s sustainability lead and partner in the firm’s energy, sustainability, and infrastructure (ES&I) segment. “We have joined forces with Mars, McCormick, and PepsiCo to demonstrate our combined leadership and go beyond target setting to drive real action.”

Guidehouse will use its more than 30 years of experience in sustainability consulting to help suppliers in the coalition. The firm, which added a 700-person sustainability practice through the acquisition of Navigant in 2019, will also leverage its newly launched sustainability management platform “Papaya” to track progress.

“Suppliers play a critical role in combatting climate change and in helping brands reach their climate targets,” said Matthew Banks, communication director of Supplier LoCT and associate director in Guidehouse’s ES&I segment. “The Supplier LoCT collaborative is a true team effort across companies and sectors to reduce supply chain emissions.”

The coalition’s founding partners plan to enlist more brands and suppliers in the future.