The Big Picture

CEOs face growing scrutiny over climate commitments, but Mars CEO Poul Weihrauch offers a clear path forward. The Danish executive leads a century-old, family-owned company that's cutting greenhouse gas emissions by 16% while growing business by 69%—proving purpose and profit can align.

Why it Matters

Conventional wisdom suggests climate action and growth are in conflict. Mars' results challenge this assumption at a time when executives need practical frameworks for balancing stakeholder demands. The company's approach offers a replicable model for any organization seeking profitable sustainability.

What's Happening

Mars operates with a "compass" of four equal priorities: growth, healthy P&L, trusted reputation, and positive societal impact. This isn't just talk—40% of Weihrauch's compensation depends on non-financial metrics, including greenhouse gas goals. Over 2,000 managers have sustainability targets built into their pay.

The company announced plans in 2015 to halve emissions by 2030 and reach net-zero by 2050. Since then, they've reduced emissions 16% while growing the business 69%—a performance that directly contradicts the either/or mindset many executives face.

The Numbers

• $700 million: Mars' annual sustainability investment that won't pay off immediately

• 40%: Portion of CEO compensation tied to non-financial metrics

• 2,000+: Managers with sustainability goals in their compensation

• 16%: Emissions reduction since 2015

• 69%: Business growth over the same period

• Finland: Mars' environmental footprint equals this entire country

Between the Lines

Weihrauch's advantage comes from private ownership structure that "thinks in generations, not quarters." But his framework works for any company willing to make long-term investments. The key insight: sustainability challenges like supply chain emissions and climate resilience directly impact business fundamentals for food companies.

What's Next

Mars tackles "Scope 3" emissions by working directly with farmers and policymakers on deforestation and regenerative agriculture. This global supply chain approach recognizes that most environmental impact sits outside company walls—requiring partnerships rather than internal changes alone.

The Bottom Line

When asked if faster growth would come from spending that $700 million on advertising instead, Weihrauch said yes in the short term. But long-term consumer demand for responsible products makes sustainability investment essential. "I think there is a moral obligation to do both."

Go Deeper

• Read more about Mars' sustainability commitments and targets on their official sustainability page

• Explore Harvard Business Review's Strategy Lab, the new AI-powered platform for testing strategic decisions

• Watch the full HBR Live conversations with Poul Weihrauch for deeper insights on balancing purpose and profit