ADM Details GHG Reductions, Regenerative Agriculture, No-Conversion Commitment Among Accomplishments and Objectives in 2023 Corporate Sustainability Report

Rhea-AI Summary

ADM (NYSE: ADM) unveiled its 2023 Corporate Sustainability Report, spotlighting significant achievements and objectives across three core areas: Feeding the World, Protecting Nature, and Enriching Lives. The company has made strides in food security, partnering with nonprofits to bolster nutrition and safety standards. Key environmental accomplishments include a 14.7% reduction in Scope 1+2 and a 7.7% reduction in Scope 3 greenhouse gas emissions, along with the expansion of its regenerative agriculture programs. ADM aims to eliminate the conversion of primary native vegetation in high-risk areas by 2025 for direct supply chains and by 2027 for indirect ones. Additionally, ADM has invested over $20 million in social initiatives and received numerous accolades for its commitment to diversity and ethics.

Positive

• 14.7% reduction in Scope 1+2 greenhouse gas emissions.
• 7.7% reduction in Scope 3 greenhouse gas emissions.
• 2.8 million acres in regenerative agriculture programs sequestering 263,700 metric tons of CO2.
• 310,000 fewer metric tons of Co2e emissions from regenerative agriculture.
• New goal to eliminate primary native vegetation conversion in direct supply chains by 2025 and indirect by 2027.
• Improved food security and nutrition for 15,500 farmers in Kenya.
• Supported sustainability and health with $20 million in corporate social investments.
• Recognized as a Financial Times Diversity Leader.
• Named in Ethisphere’s World's Most Ethical Companies for the 4th consecutive year.
• Featured in FORTUNE Magazine’s World’s Most Admired Companies for the 15th year.

Negative

• No specific financial metrics like revenue or profit growth were detailed, making it hard to gauge financial performance.
• The report lacks detailed information on the cost implications of achieving the stated sustainability goals.
• No mention of new product innovations or market expansions that could directly impact revenue growth.
• Potential high costs associated with meeting regenerative agriculture and no-conversion commitments.

CHICAGO--(BUSINESS WIRE)-- ADM (NYSE: ADM) today released its 2023 Corporate Sustainability Report, highlighting an extensive array of accomplishments, initiatives and goals that are helping drive the company’s progress and growth.

“ADM’s global team of 42,000 colleagues once again delivered on a broad range of sustainability accomplishments in 2023,” said Board Chair and CEO Juan Luciano. “What is even more exciting is the opportunity ahead of us. From our expanding leadership role in the decarbonization of the industries in which we operate, to the potential for the bioeconomy to transform how we think about food, feed, fuel and industrial and consumer products, ADM is helping pave the pathway toward a better future for us all.”

The report details activities spanning three core focus areas: Feeding the World, Protecting Nature and Enriching Lives.

Feeding the World

Supporting the global food system is at the core of ADM’s business: Every day, the company uses its unmatched global asset base, unparalleled product portfolio, and indispensable expertise to ensure it is meeting global nutritional needs. ADM’s 2023 Corporate Sustainability Report details how the company is:

• Working to increase and improve food access worldwide, including through its Sustainable Affordable Nutrition program, which provides high-quality, lower-cost ingredients to improve global access to nutrition;
• Partnering with nonprofits, such as Concern Worldwide, which in 2023 helped improve food security and nutrition for more than 15,500 farmers in Tana River County, Kenya; and
• Improving food quality and safety, including via its 315 Global Food Safety Initiative (GFSI)-certified sites.

Protecting Nature

ADM firmly believes that it is possible to meet the world’s needs both for food security and protection of nature, and focused company efforts in 2023 on biodiversity, regenerative agriculture, climate, waste and freshwater. Highlights include:

• Continuing progress on ADM’s ambitious greenhouse gas reduction commitments, with reductions in Scope 1+2 and Scope 3 emissions over baseline by 14.7% and 7.7% respectively;
• Expanding the company’s global regenerative agriculture program, with more than 2.8 million acres in 2023 that sequestered 263,700 metric tons of CO₂ and emitted 310,000 fewer metric tons of Co₂e;
• ADM’s new goal for all of our direct supply chains to be free of conversion of primary native vegetation in defined high-risk areas by 2025, and indirect supply chains by 2027; and
• The company’s support of the EO Wilson Biodiversity Foundation to champion research and education that will inspire next-generation innovation in conservation science.

Enriching Lives

From philanthropic work, to an unwavering commitment to human rights, to continued focus on fostering a workforce that encompasses diverse backgrounds, experiences and perspectives, ADM works to make a positive and lasting impact in the lives of our colleagues, our partners and the communities in which we operate. 2023 highlights include:

• Supporting sustainability, food security and health and well-being through more than $20 million in giving via the company's corporate social investment program, ADM Cares;
• Continuing to activate and advance new ways to build, strengthen and support an inclusive culture that cultivates innovation and growth, including the continued expansion of employee resource groups; and
• Receiving recognition as a Financial Times Diversity Leader, being named for the 4th straight year in Ethisphere’s World’s Most Ethical Companies list, and inclusion for the 15th year on FORTUNE Magazine’s World’s Most Admired Companies List.

About ADM

ADM unlocks the power of nature to enrich the quality of life. We’re an essential global agricultural supply chain manager and processor, providing food security by connecting local needs with global capabilities. We’re a premier human and animal nutrition provider, offering one of the industry’s broadest portfolios of ingredients and solutions from nature. We’re a trailblazer in health and well-being, with an industry-leading range of products for consumers looking for new ways to live healthier lives. We’re a cutting-edge innovator, guiding the way to a future of new consumer and industrial solutions. And we're a leader in sustainability, scaling across entire value chains to help decarbonize the multiple industries we serve. Around the globe, our innovation and expertise are meeting critical needs while nourishing quality of life and supporting a healthier planet. Learn more at www.adm.com.

Source: Corporate Release
Source: ADM

View source version on businesswire.com: https://www.businesswire.com/news/home/20240513637075/en/

ADM Media Relations

Jackie Anderson

media@adm.com

312-634-8484

Source: ADM

FAQ

What are the key highlights of ADM's 2023 Corporate Sustainability Report?

ADM's report focuses on reducing greenhouse gas emissions, expanding regenerative agriculture, improving food security, and investing in social initiatives.

How much has ADM reduced its greenhouse gas emissions?

ADM has achieved a 14.7% reduction in Scope 1+2 and a 7.7% reduction in Scope 3 emissions compared to baseline levels.

What are ADM's goals regarding primary native vegetation conversion?

ADM aims to eliminate primary native vegetation conversion in direct supply chains by 2025 and indirect supply chains by 2027.

How many acres of land are involved in ADM's regenerative agriculture program?

ADM's regenerative agriculture program covers over 2.8 million acres.

What philanthropic efforts did ADM undertake in 2023?

ADM invested more than $20 million in its corporate social investment program, ADM Cares, focusing on sustainability, food security, and health.

What recognitions has ADM received for its ethical and diversity practices?

ADM has been named a Financial Times Diversity Leader, included in Ethisphere’s World's Most Ethical Companies for four years, and listed in FORTUNE Magazine’s World’s Most Admired Companies for 15 years.