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Nature loss

Mars: Raising standards

Written by Patricia Hutchinson & Josephine Richardson

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Mars, a privately-owned US snacking and pet food company, has issued potentially the eighth largest US IG bond deal ever, to finance the acquisition of Kellanova.

This acquisition has the potential to raise standards of supply chain management at Kellanova, and so the bond deal is a chance for investor engagement.

Mars is recognized for following the Accountability Framework Initiative, has maintained a deforestation-free palm oil supply chain since 2020 and is raising standards down its supply chain. Further, Mars has committed to holding flat the total land area associated with their value chain, and area where Kellanova has made no commitments.

Kellanova also lags behind Mars in Scope 3 Net Zero commitments, in that it is committed to a 90% reduction by 2050 from a 2015 base year, whereas Mars first committed to achieving Net Zero across its full value chain in 2021, so four years ago.

About the authors

Josephine Richardson

Josephine Richardson

Managing Director, Head of Research

Based in London, Jo leads AFII’s research and a global team supporting fixed income investors as they align their portfolios with climate and sustainability goals. She joined AFII after 18 years in fixed income markets at JPMorgan.

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