Supply Chain & Sourcing Heading Pulp & Paper Action Plan As part of the Sustainable in a Generation Plan, Mars set an ambitious Climate Action goal to reduce our carbon footprint by 27% by 2025 and 67% by 2050. To tackle our greenhouse gas emissions, we are working to improve how food is produced throughout our extended supply chain. We estimate that four-fifths of our full value chain carbon footprint comes from agricultural and land use change emissions associated with sourced ingredients and materials we use to make our products. Therefore, we are working to transform key supply chains by partnering with suppliers, producers and others to prevent deforestation and produce ingredients more efficiently to reduce our carbon footprint. Mars recognizes the importance of forests and the role supply chains play to remove unsustainable pressures on the environment. With our 2015 Pulp & Paper-Based Materials Sourcing & Deforestation Policy, we set a policy to source paper-based packaging that is free from deforestation and degradation. By the end of 2020, we achieved the following results: · Tracing more than 95% of our virgin pulp and paper-based packaging back to the country of harvest annually since 2016. · Sourcing over 95% of our paper-based packaging as recycled or certified virgin fiber. · Engaging and investing in landscape-level solutions in targeted high-risk sourcing origins using our traceability insights (described below). While the actions that Mars and other companies have taken over the last few years are important steps, the fact remains that global demand for paper and other forest-derived products continues to grow. Over the same period, old-growth forest, rich in carbon and biodiversity, have been cut for pulpwood and timber production, from the boreal to the tropical forests. However, when managed responsibly, forest fiber materials can also be the reason forests remain standing and healthy. With these insights, Mars remains committed to our Pulp & Paper Action Plan and to maintain and build on our efforts to prevent forest degradation or deforestation in our supply chain. This Action Plan articulates our approach to implementing Mars global Deforestation and Land Use Change Position in our pulp & paper supply chain. Our Ambition & Supply Chain Solutions As part of the Sustainable in a Generation Plan, and taking everything we have learned in the past few years, we are more committed than ever to building a responsible supply chain for all pulp and paper-based packaging materials sourced by Mars, while fostering a sustainable forestry sector. Mars remains committed to stop deforestation and forest degradation in our pulp and paper supply chain. We will work toward this by continuously: Tracing 100% of virgin pulp and paper-based packaging to at least country of harvest annually. Sourcing 100% of pulp and paper-based packaging from certified, verified or recycled sources by the end of 2020. Ensuring virgin pulp and paper that we source from origins assessed as high-deforestation risk are certified by the Forest Stewardship Council. What is Supply Chain Traceability? Traceability enables us to define country of harvest risk our suppliers have in their value chain. Since 2016, we have used this traceability data to take an evidence-based approach to inform our strategic choices. We will update our traceability annually to maintain visibility on the countries of harvest of our virgin fiber and our supply chain partners, while making business decisions about the supply chain partners who do not maintain traceability. Our Actions Supply Chain Certification and Verification Given the global, dynamic, nature of our supply chain, we will assure compliance using: Certification to a credible, independent standard that demonstrates compliance with our Sustainable Sourcing Principles: Mars has a strong preference for FSC Forest Management and Chain of Custody certification. Mars also will accept products certified under national schemes approved by the Program for the Endorsement of Forest Certification, but only from countries of harvest that have robust legal enforcement. Reliable verification tools and approaches, such as Forests in Focus, that use independent indicators to verify that the wood fiber we use originates from responsibly managed forests at the landscape level. Key Certification Progress Statistics: Of the total virgin fiber we source, 88% is confirmed to be certified. Of this, 55% is purchased with a FSC claim (at least FSC Mix), while 45% is purchased with PEFC or SFI claim (at least 70% FM) Out of all virgin fiber sourced, 2% is from "High Risk" or unknown origins and remains to be purchased as FSC certified through 2021 Preference for Recycled Fiber in our Supply Chain To reduce our use of virgin fiber, we will maintain a preference for recycled fiber where feasible and where we believe it is a more sustainable alternative to virgin fiber. The final choice of fiber will be determined by quality and food safety requirements, product specification and performance and legal requirements. Landscape Programs in High-Risk Origins Based on the risk assessments carried out with support of Earthworm Foundation and our traceability back to at least country of harvest, we will continue to engage our suppliers in sourcing areas assessed as high risk to support concrete and scalable programs on the ground. We will work with stakeholders from local governments, civil society organizations and communities whose livelihoods depend on the forest landscape. These programs will be led by credible expert organizations (such as the Mars partnership with Earthworm Foundation) that tackle sustainable forestry issues in these high-risk geographical locations. To bring greater scale to this important work, we are very active in the Consumer Goods Forum’s Forest Positive Coalition. Particularly, we are providing strong support to the Landscapes Working Group in order to facilitate increased investment and engagement in priority forest landscapes. What’s Next As we move forward in implementing this Action Plan, Mars will continue to work with government, industry, communities and civil society stakeholders. Each year we will compare our ongoing progress against our commitments and each of our strategic choices. 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