Archer Daniels Midland Co.

Overall approach

7/16
- Overarching commitment on deforestation
  
  0/6
  
  Deforestation commitment
  
  Commodity-specific commitment
  
  0/6
  
  Commodities (if applicable): Palm oil; Soy
  
  "Our Commitment to No-Deforestation: As one of the world’s leading agricultural processors and food-ingredient providers, ADM commits to build traceable and transparent agricultural supply chains that protect forests worldwide [...] This commitment is advanced through policies focused on palm and soy supply chains."
  
  Open source document
- Signatory to an initiative tackling deforestation
  
  1/1
  
  Signatory
  
  Yes
  
  1/1
  
  Which initiatives?: Soy Moratorium; World Business Council for Sustainable Development Forest Solutions Group; UN Global Compact
  
  If Other Initiative, specify::
  
  "Since 2006, we have been a signatory of the Amazon Soy Moratorium" [...] "Signatory of the UN Global Compact In April 2016, ADM joined the UN’s Global Compact, the world’s largest CSR initiative" [...[ ] "ADM is a member of the Soft Commodities Forum (SCF) of the World Business Council for Sustainable Development (WBCSD)"
  
  Open source document
  Open source document
- Awareness of the value of forests
  
  1/1
  
  Awareness
  
  Yes
  
  1/1
  
  "Impacts such as reduced supply of agricultural commodities due to weather-related factors could adversely affect our ability to procure, transport, store, process, and trade agricultural commodities in an efficient manner. The early achievement of our GHG emissions and energy intensity goals in 2017 demonstrates the seriousness of our commitment. [...] We address climate change through three main pathways: renewable product and process innovations, such as our carbon sequestration project; supply chain commitments, such as our No-Deforestation policy".
  
  Open source document
- Deforestation as a business risk
  
  1/1
  
  Business risk
  
  Yes
  
  1/1
  
  Does the company recognise the risk as financial, operational, competition, reputational, or other? Please detail.: operational
  
  "Impacts such as reduced supply of agricultural commodities due to weather-related factors could adversely affect our ability to procure, transport, store, process, and trade agricultural commodities in an efficient manner. The early achievement of our GHG emissions and energy intensity goals in 2017 demonstrates the seriousness of our commitment. We address climate change through three main pathways: renewable product and process innovations, such as our carbon sequestration Mitigating climate change Mitigating climate change project; supply chain commitments, such as our No-Deforestation policy"
  
  Open source document
- High-level management of deforestion
  
  1/1
  
  High-level management
  
  Yes
  
  1/1
  
  How often does the committee or board meet to assess company's progress on addressing deforestation-related issues?:
  
  Which commodities does it apply to?: Palm oil; Soy
  
  Has a Sustainability and Corporate Responsibility Committee - "The Committee shall oversee (a) the Company’s objectives, goals, strategies, and activities relating to sustainability and corporate responsibility, including workplacesafety, process safety, environmental, social well-being, diversity and inclusion,corporate giving, and community relations, (b) the Company’s compliance withsustainability and corporate responsibility laws and regulations, and (c) the Company’sperformance relating to its sustainability and corporate responsibility goals and industrybenchmarks" - one of these goals includes a no-deforestation commitment.
  
  Open source document
- Executive compensation linked to deforestation
- Target to reduce emissions from land-use change
  
  3/3
  
  LUC emissions target
  
  Yes
  
  3/3
  
  "We met our previous goals ahead of schedule, and this year, we were proud to make even more ambitious commitments: to reduce our absolute greenhouse gas emissions by 25 percent, our energy intensity by 15 percent, our water intensity by 10 percent and achieve a 90 percent landfill diversion rate, all by 2035."
  
  Open source document
- Reporting on emissions from land-use change
  
  0/3
- Disclosure of conservation activity
- Disclosure of reforestation activity
  
  Yes
  
  0/0
  
  How many hectares of reforestation or restoration are being or have been conducted or facilitated by the company?: 500 ha
  
  "El Bosque Atlántico del Alto Paraná (BAAPA) is an ecoregion in the Atlantic Forest ofParaguay with high biological diversity and economic value worldwide [...] With financial support from ADM and others, the “Connecting Forests” project wasstarted in 2015 with the mission of restoring forest landscape andbiological corridors with an emphasis on the protection of waterchannels [...] Working with 181 family producers ranging from large to small scalefarms, 500 hectares have been reforested [...] Of the replanted area, 350 hectares have been planted with native species, and the remaining 150 hectares have exotic species selected to improve farmer livelihood and reduce pressure on existing forest."
  
  Open source document
Commodity score

44/84
- Soy
  
  57/84
  - Commitment Strength
    
    25/28
    - Commitment to protect priority forests
      
      17/17
      - Commitment details
        Zero-gross conversion
        
        10.7/10.7
        
        Commitment to protect priority forests
        
        Zero-gross conversion
        
        10.7/10.7
        
        Which certification schemes are used?: RTRS
        
        (For downstream soy companies only) Does the company commitment also apply to hidden/indirect soy?: No
        
        "ADM has been working diligently to implement our No-Deforestation program in our palm and South American soy supply chains. The clearing of forested, High Carbon Stock (HCS) and High Conservation Value (HCV) areas for planting threatens biodiversity, soil health, and vital carbon sinks as well as indigenous communities who rely on those areas for their livelihood." [...] "ADM is a member of RTRS and makes a public commitment to the requirements of the RTRS standard for responsible soy production."
        
        Open source document
        Open source document
      - Commitment applies to all regions, suppliers and operation
        Yes
        
        3/3
        
        Commitment applies to all regions, suppliers and operation
        
        Yes
        
        3/3
        
        "ADM has been working diligently to implement our No-Deforestation program in our palm and South American soy supply chains. The clearing of forested, High Carbon Stock (HCS) and High Conservation Value (HCV) areas for planting threatens biodiversity, soil health, and vital carbon sinks as well as indigenous communities who rely on those areas for their livelihood." [...] "ADM is a member of RTRS and makes a public commitment to the requirements of the RTRS standard for responsible soy production."
        
        Open source document
        Open source document
      - Target date
        Current/2020/Pre-2020
        
        2/2
        
        Target date
        
        Current/2020/Pre-2020
        
        2/2
        
        "ADM has been working diligently to implement our No-Deforestation program in our palm and South American soy supply chains. The clearing of forested, High Carbon Stock (HCS) and High Conservation Value (HCV) areas for planting threatens biodiversity, soil health, and vital carbon sinks as well as indigenous communities who rely on those areas for their livelihood." [...] "ADM is a member of RTRS and makes a public commitment to the requirements of the RTRS standard for responsible soy production."
        
        Open source document
        Open source document
      - Interim target date
        Yes
        
        1/1
        
        Interim target date
        
        Yes
        
        1/1
        
        "ADM has been working diligently to implement our No-Deforestation program in our palm and South American soy supply chains. The clearing of forested, High Carbon Stock (HCS) and High Conservation Value (HCV) areas for planting threatens biodiversity, soil health, and vital carbon sinks as well as indigenous communities who rely on those areas for their livelihood." [...] "ADM is a member of RTRS and makes a public commitment to the requirements of the RTRS standard for responsible soy production."
        
        Open source document
        Open source document
    - Commitment to a traceable supply chain
      
      8/11
      - Commitment details
        Traces to Point of production
        
        5.3/5.3
        
        Commitment to a traceable supply chain
        
        Traces to Point of production
        
        5.3/5.3
        
        "In addition to maintaining a high level of traceability to the farm of origin (99% of direct suppliers), ADM began efforts to obtain digital satellite farm maps (polygons) of our soybean suppliers in select municipalities."
        
        Open source document
      - Commitment applies to all regions, suppliers and operation
        No
        
        0/3
        
        Commitment applies to all regions, suppliers and operation
        
        No
        
        0/3
        
        If no, what is excluded?: Location
        
        "In addition to maintaining a high level of traceability to the farm of origin (99% of direct suppliers), ADM began efforts to obtain digital satellite farm maps (polygons) of our soybean suppliers in select municipalities."
        
        Open source document
      - Target date
        Current/2020/Pre-2020
        
        2/2
        
        Target date
        
        Current/2020/Pre-2020
        
        2/2
        
        "In addition to maintaining a high level of traceability to the farm of origin (99% of direct suppliers), ADM began efforts to obtain digital satellite farm maps (polygons) of our soybean suppliers in select municipalities."
        
        Open source document
      - Interim target date
        Yes
        
        1/1
        
        Interim target date
        
        Yes
        
        1/1
        
        "In addition to maintaining a high level of traceability to the farm of origin (99% of direct suppliers), ADM began efforts to obtain digital satellite farm maps (polygons) of our soybean suppliers in select municipalities."
        
        Open source document
  - Social Considerations
    
    13/18
    - Labour rights in the supply chain
      Yes
      
      4/4
      
      Labour rights in the supply chain
      
      Yes
      
      4/4
      
      Details of commitment: Discrimination; Forced Labour; Child Labour; Freedom of association
      
      "In accordance with our Commitment to Respect Human Rights, we require that stakeholders in the ADM supply chain: [...] Never use child labor, or forced and/or bonded labor; [...] Do not discriminate in employment-related decisions; [...] Respect workers’ rights, including contract, temporary and migrant workers, to thefreedom of association and the right to collective bargaining"
      
      Open source document
    - Inclusion of small-scale farmers
      Yes
      
      4/4
      
      Inclusion of small-scale farmers
      
      Yes
      
      4/4
      
      What is the nature of that support?: Education and training
      
      "In Brazil, ADM partnered with theBrazilian Society for Wildlife Research andEnvironmental Education (SPVS) on a projectto promote sustainable farming practices andbiodiversity conservation. Focusing mainlyon smallholder farms, the project drew ontraditional agricultural knowledge and modernbiodiversity initiatives to provide guidanceon improving sustainability management,resistance to climate change and overallcrop yields. ADM trained approximately 300smallholders located in the municipalitiesof São Domingos do Capim, Mãe de Rio andIrituia, located in the Northeastern state ofPará, which encompass highly biodiverseforests and rivers: ecosystems that are vitalto the conservation of biodiversity in theAmazon, as well as the socio-economicdevelopment of the local area."
      
      Open source document
    - Gender equality in the supply chain
      Discrimination/Gender Rights/Harassment
      
      1/4
      
      Gender equality in the supply chain
      
      Discrimination/Gender Rights/Harassment
      
      1/4
      
      Within their Soybean strategy, which "applies to select soybean suppliers" - "Discrimination: Workplace decisions must not be made on the basis of race, color, sex, religion, political opinion, national extraction or social origin or nullify or impair equal opportunity or treatment."
      
      Open source document
    - Commitment to remediation
      Yes
      
      2/2
      
      Commitment to remediation
      
      Yes
      
      2/2
      
      "Areas that are assigned as legal reserve, conservation areas or otherwise secured by law have to be protected. Legally approved compensating actions should be taken if any alteration has taken place. Areas of natural vegetation around bodies of water and on steep slopes and hills and other sensitive parts of the ecosystem must be maintained or restored."
      
      Open source document
    - Commitment to ensure Free, Prior and Informed Consent
      Yes the company commits to securing FPIC prior to acquiring new interests/developments/expansions
      
      2/4
      
      Commitment to ensure Free, Prior and Informed Consent
      
      Yes the company commits to securing FPIC prior to acquiring new interests/developments/expansions
      
      2/4
      
      What is the status of those FPIC processes?: Current
      
      "In accordance with our Commitment to Respect Human Rights, we require that stakeholders in the ADM supply chain: [...] Respect land-tenure rights, and the rights of indigenous and local communities to give orwithhold their free, prior and informed consent to operations on lands to which theyhold legal or customary rights"
      
      Open source document
  - Reporting and Implementation
    
    19/38
    - Reporting against commitments
      
      6/6
      - Commitment to protect priority forests
        Yes
        
        3/3
        
        Commitment to protect priority forests
        
        Yes
        
        3/3
        
        (Downstream only) How much of this is in protected areas, primary forests, intact forest landscapes, and/or peatlands?: 0 Not Disclosed
        
        (Downstream only) How many hectares of deforestation and/or conversion have occurred since the commitment cut-off date in the operations of the company's direct or indirect suppliers?: 0 Not Disclosed
        
        (Upstream only) How many hectares of land owned, controlled or managed is certified?: 0 Not Disclosed
        
        Does the company report on the degree of compliance/progress with commitments, disaggregated by relevant factors such as origin or supply chain stage?: No
        
        ADM reports 338,674Tonnes are certified by RTRS
        
        Open source document
      - Commitment to a traceable supply chain
        Yes
        
        3/3
        
        Commitment to a traceable supply chain
        
        Yes
        
        3/3
        
        Does the company report on the degree of compliance/progress with commitments, disaggregated by relevant factors such as origin or supply chain stage?: No
        
        "In addition to maintaining a high level of traceability to the farm of origin (99% of direct suppliers), ADM began efforts to obtain digital satellite farm maps (polygons) of our soybean suppliers in select municipalities."
        
        Open source document
    - Reporting is independently verified
      
      2/4
      - Commitment to protect priority forests
        Yes: third-party
        
        2/2
        
        Commitment to protect priority forests
        
        Yes: third-party
        
        2/2
        
        Which processes or groups does the company use for third party verification?: RTRS
        
        Which tools, approaches, third-party verification, including certification, schemes are used?: RTRS
        
        ADM reports 338,674Tonnes are certified by RTRS
        
        Open source document
      - Commitment to a traceable supply chain
        No
        
        0/2
    - Deforestation cut off date
      Yes
      
      2/2
      
      Deforestation cut off date
      
      Yes
      
      2/2
      
      Cut-off date: 01/03/2015
      
      "No crops are produced in areas with legal deforestation or legal conversion of HCV native vegetation after March 1, 2015 in accordance with ADM´s Commitment to No-Deforestation. Between the cut-off date mentioned in legislation and March 1, 2015, only legal conversion is permitted."
      
      Open source document
    - Collaborative actions
      Yes
      
      2/2
      
      Collaborative actions
      
      Yes
      
      2/2
      
      What initiatives does the company participate in?: Grupo de Trabalho da Soja (Soy Working Group)
      
      What is the nature of that participation?: Attending & contributing to meetings
      
      "ADM is an active member of Grupo de Trabalho da Soja (Soy Working Group), a group of NGOs and industry companies, most notable for developing the Amazon Soy Moratorium. We are also a member of the spinoff group Grupo de Trabalho do Cerrado (Cerrado Working Group), which is working to address deforestation in the Cerrado Biome. And, we participate in the MATOPIBA Coalition, an initiative supported by the United Nations Development Programme (UNDP) Global Environmental Finance (GEP), which brings together different actors willing to find sustainable balance between agricultural production and conservation."
      
      Open source document
    - Risk assessments for forest risk
      No
      
      0/2
    - Operations assessed to comply with law
      No
      
      0/2
    - Accessible grievance mechanism
      Yes
      
      4/4
      
      Accessible grievance mechanism
      
      Yes
      
      4/4
      
      What is the nature of the grievance mechanism used by the company (own mechanism, that of external company, internationally recognised mechanism, focused on social issues, focused on environmental issues, etc.)?: Internal
      
      Details of the mechanism: Social
      
      Does the company publish grievances that have been made against it, as well as responses and resolutions including status and timeframes: Yes - https://assets.adm.com/Sustainability/Grievance-and-Resolution-Logs/Grievance-and-Resolution-Log-6-3-20.pdf
      
      "ADM is working hard to develop supply chains that meet our Commitment to No-Deforestation and Human Rights Policy. To that end, we invite stakeholders who have concerns related to the implementation of our policies to email us at responsibility@adm.com."
      
      Open source document
    - Report volumes of commodity
      Reporting certified/compliant volume
      
      2/4
      
      Report volumes of commodity
      
      Reporting certified/compliant volume
      
      2/4
      
      What is the certified volume?: 338,674Tonnes
      
      338,674Tonnes are certified by RTRS
      
      Open source document
      Open source document
    - Upstream: Impact assessments for land development/acquisition
      No
      
      0/4
    - Upstream: Reporting production/processing locations
      No disclosure
      
      0/4
    - Downstream: Publishing supplier lists
      No disclosure
      
      0/4
    - Upstream: Monitor compliance of production/processing
      Yes using an internal monitoring system
      
      4/4
      
      Upstream: Monitor compliance of production/processing
      
      Yes using an internal monitoring system
      
      4/4
      
      How frequently is compliance assessed?: not specified but appear to report annually
      
      Does the company use a jurisdictional monitoring mechanism?: No
      
      What tools, processes, bodies carry out monitoring of the company's production or processing operations?: Satellite imaging
      
      For what percentage of production or primary processing operations that it owns, manages, or otherwise controls does the company use external processes or actors, such as certification, to monitor compliance?: 100%
      
      Does the company use a certification system?: No
      
      "Monitoring and Verification - Since 2018, specialized firms with GIS technology (satellite imaging) started cross-referencing planted areas within the polygons with historic land coverage to understand if the soy being sourced was compliant with our No Deforestation Policy. Farms are also verified to make sure there are no environmental issues (IBAMA embargos), encroachment into protected areas or Indigenous Territories,or labor issues which violated our No Exploitation Policy"
      
      Open source document
    - Downstream: Monitor compliance in supply chain
      Yes for its suppliers only
      
      3/4
      
      Downstream: Monitor compliance in supply chain
      
      Yes for its suppliers only
      
      3/4
      
      Details of monitoring: Using third party verification
      
      How frequently is compliance assessed?: Annually
      
      "The ADM Responsible Soybean Standard applies to select soybean suppliers. To ensure compliance, an annual inspection will be conducted by a third party inspection body with knowledge and accreditations for auditing of sustainability standards. The inspections will be done in groups, managed by ADM. ADM will be responsible for including and excluding farms belonging to the group; the farms shall go through a verification before becoming members. The members must agree to annual inspections, performed by a third party."
      
      Open source document
    - Downstream: Engagement with non-compliant suppliers
      Engage with suppliers but with no time-bound threat of exclusion
      
      1/2
      
      Downstream: Engagement with non-compliant suppliers
      
      Engage with suppliers but with no time-bound threat of exclusion
      
      1/2
      
      What type of support does the company offer to its suppliers to help them achieve compliance with commitments?: Not disclosed
      
      Does the company engage non-compliant indirect suppliers in order to address and remedy non-compliance?: No
      
      "Direct engagement when grievances or non compliance occurs."
      
      Open source document
    - Downstream: Disclosure of non-compliant suppliers
      No disclosure
      
      0/2
- Palm oil *
  
  49/84
  - Commitment Strength
    
    24/28
    - Commitment to protect priority forests
      
      10/12
      - Commitment details
        Zero-gross deforestation
        
        6/8
        
        Commitment to protect priority forests
        
        Zero-gross deforestation
        
        6/8
        
        "For the past five years, ADM has been working diligently to implement our No-Deforestation program. The clearing of forested, High Carbon Stock (HCS) and High Conservation Value (HCV) areas for planting threatens biodiversity, soil health, and vital carbon sinks as well as indigenous communities who rely on those areas for their livelihood."
        
        Open source document
      - Commitment applies to all regions, suppliers and operation
        Yes
        
        2/2
        
        Commitment applies to all regions, suppliers and operation
        
        Yes
        
        2/2
        
        "For the past five years, ADM has been working diligently to implement our No-Deforestation program. The clearing of forested, High Carbon Stock (HCS) and High Conservation Value (HCV) areas for planting threatens biodiversity, soil health, and vital carbon sinks as well as indigenous communities who rely on those areas for their livelihood."
        
        Open source document
      - Target date
        Current/2020/Pre-2020
        
        1.3/1.3
        
        Target date
        
        Current/2020/Pre-2020
        
        1.3/1.3
        
        "For the past five years, ADM has been working diligently to implement our No-Deforestation program. The clearing of forested, High Carbon Stock (HCS) and High Conservation Value (HCV) areas for planting threatens biodiversity, soil health, and vital carbon sinks as well as indigenous communities who rely on those areas for their livelihood."
        
        Open source document
      - Interim target date
        Yes
        
        0.7/0.7
        
        Interim target date
        
        Yes
        
        0.7/0.7
        
        "For the past five years, ADM has been working diligently to implement our No-Deforestation program. The clearing of forested, High Carbon Stock (HCS) and High Conservation Value (HCV) areas for planting threatens biodiversity, soil health, and vital carbon sinks as well as indigenous communities who rely on those areas for their livelihood."
        
        Open source document
    - Commitment to protect High Carbon Stock areas and/or peatlands
      
      8/8
      - Commitment details
        Yes
        
        4/4
        
        Commitment to protect High Carbon Stock areas and/or peatlands
        
        Yes
        
        4/4
        
        Type of commitment: HCS; Peat
        
        "ADM hereby commits to the following standards in our palm oilsupply chain:1. No Deforestation of High Carbon Stock (HCS) Forests or High Conservation Value (HCV) Areas2. No Development on Peatlands, regardless of depth"
        
        Open source document
      - Commitment applies to all regions, suppliers and operation
        Yes
        
        2/2
        
        Commitment applies to all regions, suppliers and operation
        
        Yes
        
        2/2
        
        "ADM hereby commits to the following standards in our palm oilsupply chain:1. No Deforestation of High Carbon Stock (HCS) Forests or High Conservation Value (HCV) Areas2. No Development on Peatlands, regardless of depth [...] This policy and applies across all palm oil supply chains in which ADM operates, from direct suppliersback to the source (plantation and smallholder-sourcing region), and for all companies in which ADMholds an ownership stake."
        
        Open source document
      - Target date
        Current/2020/Pre-2020
        
        1.3/1.3
        
        Target date
        
        Current/2020/Pre-2020
        
        1.3/1.3
        
        What actions or steps are identified for time-bound implementation?: "We will partner with stakeholders toimprove the performance of suppliers who do not adhere to these policies, but who are willing tocommit to taking appropriate, immediate action to correct their violations. We will not conductbusiness with suppliers who violate this policy repeatedly and refuse to take action to comply." https://assets.adm.com/Sustainability/ADM-No-Deforestation-Policy.pdf
        
        "This policy is effective immediately. We understand that our palmsuppliers may need time to implement the provisions described. We therefore expect our suppliersto develop action plans to achieve compliance by Dec. 31, 2015."
        
        Open source document
      - Interim target date
        Yes
        
        0.7/0.7
        
        Interim target date
        
        Yes
        
        0.7/0.7
        
        Target date is current (see 3.2)
        
        Open source document
    - Commitment to a traceable supply chain
      
      6/8
      - Commitment details
        Downstream company - traces to Processing Facility - checks compliance
        
        4/4
        
        Commitment to a traceable supply chain
        
        Downstream company - traces to Processing Facility - checks compliance
        
        4/4
        
        In 2019, ADM commit to "Maintain traceability scores of at least 98% of palm oil and palm kernel oil to mill", and "Increase traceability of palm oil and palm kernel oil to plantation".
        
        Open source document
      - Commitment applies to all regions, suppliers and operation
        No
        
        0/2
        
        Commitment applies to all regions, suppliers and operation
        
        No
        
        0/2
        
        If no, what is excluded?: Indirect suppliers
        
        "-Maintain traceability scores of at least 98% traceable to POM globally for PO and PKO. -Set a percentage by volume sourced target for traceability to plantation level -Establish communication with all direct suppliers to assess their efforts on traceability to supply chain." "In 2019, ADM commit to "Maintain traceability scores of at least 98% of palm oil and palm kernel oil to mill", and "Increase traceability of palm oil and palm kernel oil to plantation".
        
        Open source document
        Open source document
      - Target date
        Current/2020/Pre-2020
        
        1.3/1.3
        
        Target date
        
        Current/2020/Pre-2020
        
        1.3/1.3
        
        In 2019, ADM commit to "Maintain traceability scores of at least 98% of palm oil and palm kernel oil to mill", and "Increase traceability of palm oil and palm kernel oil to plantation".
        
        Open source document
      - Interim target date
        Yes
        
        0.7/0.7
        
        Interim target date
        
        Yes
        
        0.7/0.7
        
        In 2019, ADM commit to "Maintain traceability scores of at least 98% of palm oil and palm kernel oil to mill", and "Increase traceability of palm oil and palm kernel oil to plantation".
        
        Open source document
  - Social Considerations
    
    10/18
    - Labour rights in the supply chain
      Yes
      
      4/4
      
      Labour rights in the supply chain
      
      Yes
      
      4/4
      
      Details of commitment: Discrimination; Forced Labour; Child Labour; Freedom of association
      
      "In accordance with our Commitment to Respect Human Rights, we require that stakeholders in the ADM supply chain: [...] Never use child labor, or forced and/or bonded labor; [...] Do not discriminate in employment-related decisions; [...] Respect workers’ rights, including contract, temporary and migrant workers, to thefreedom of association and the right to collective bargaining"
      
      Open source document
    - Inclusion of small-scale farmers
      Yes
      
      4/4
      
      Inclusion of small-scale farmers
      
      Yes
      
      4/4
      
      What is the nature of that support?: Education and training
      
      How many smallholders do they support, and what percentage does this represent in terms of their sourcing from smallholders?: 300
      
      In Brazil, ADM partnered with theBrazilian Society for Wildlife Research andEnvironmental Education (SPVS) on a projectto promote sustainable farming practices andbiodiversity conservation. Focusing mainlyon smallholder farms, the project drew ontraditional agricultural knowledge and modernbiodiversity initiatives to provide guidanceon improving sustainability management,resistance to climate change and overallcrop yields. ADM trained approximately 300smallholders located in the municipalitiesof São Domingos do Capim, Mãe de Rio andIrituia, located in the Northeastern state ofPará, which encompass highly biodiverseforests and rivers: ecosystems that are vitalto the conservation of biodiversity in theAmazon, as well as the socio-economicdevelopment of the local area.
      
      Open source document
    - Gender equality in the supply chain
      No commitment
      
      0/4
    - Commitment to remediation
      No
      
      0/2
    - Commitment to ensure Free, Prior and Informed Consent
      Yes the company commits to securing FPIC prior to acquiring new interests/developments/expansions
      
      2/4
      
      Commitment to ensure Free, Prior and Informed Consent
      
      Yes the company commits to securing FPIC prior to acquiring new interests/developments/expansions
      
      2/4
      
      What is the status of those FPIC processes?: Current
      
      "In accordance with our Commitment to Respect Human Rights, we require that stakeholders in the ADM supply chain: [...] Respect land-tenure rights, and the rights of indigenous and local communities to give orwithhold their free, prior and informed consent to operations on lands to which theyhold legal or customary rights"
      
      Open source document
  - Reporting and Implementation
    
    15/38
    - Reporting against commitments
      
      6/6
      - Commitment to protect priority forests
        Yes
        
        2/2
        
        Commitment to protect priority forests
        
        Yes
        
        2/2
        
        Does the company report on the degree of compliance/progress with commitments, disaggregated by relevant factors such as origin or supply chain stage?: No
        
        "ADM began implementation of the Engagement for Policy Implementation (EPI) survey with all its suppliers from 2018. The EPI survey is a tool provided by Earthworm Foundation (EF) that allows an understanding of each supplier’s progress related to all aspects of an NDPE-compliant responsible sourcing program. EPI questions reflect current palm oil industry sustainability standards, thereby helping suppliers understand how to meet their customers’ expectations." "ADM engaged in a monitoring and verification assessment as part of the EPI by EF. The results of the assessment showed that 92% of palm oil volume sourced by ADM comes through direct suppliers who score an average of 76% on the monitoring and verification section".
        
        Open source document
      - Commitment to protect High Carbon Stock areas and/or peatlands
        Yes
        
        2/2
        
        Commitment to protect High Carbon Stock areas and/or peatlands
        
        Yes
        
        2/2
        
        Does the company report on the degree of compliance/progress with commitments, disaggregated by relevant factors such as origin or supply chain stage?: No
        
        Published a 2018-2019 Action Plan and report their progress on this action plan through regular updates. Latest update in 2019 indicates that "100% of suppliers have a responsible sourcing policy, 99% of suppliers publicly report progress on NDPE implementation. 99% of suppliers have grievance mechanisms in place, 94% of suppliers monitor for deforestation and exploitation" "99% of suppliers publicly report progress on NDPE implementation"
        
        Open source document
        Open source document
      - Commitment to a traceable supply chain
        Yes
        
        2/2
        
        Commitment to a traceable supply chain
        
        Yes
        
        2/2
        
        In 2019, ADM have achieved 97.6% traceability of PO to the mill, and 99.6% traceability of PKO to the mill. Traceability to the plantation has increased by 18.8% and 20% respectively for PO and PKO.
        
        Open source document
    - Reporting is independently verified
      
      1/4
      - Commitment to protect priority forests
        Yes: internal
        
        0.7/1.3
        
        Commitment to protect priority forests
        
        Yes: internal
        
        0.7/1.3
        
        Is the performance of compliance of some suppliers, sources, or origins not verified, and if so why not?: 1 supplier did not wish to be included in the survey
        
        Which processes or groups does the company use for third party verification?: Engagement for Policy Implementation (EPI) survey with all its suppliers from 2018.
        
        Which tools, approaches, third-party verification, including certification, schemes are used?: Engagement for Policy Implementation (EPI) with Earthworm Foundation
        
        "ADM began implementation of the Engagement for Policy Implementation (EPI) survey with all its suppliers from 2018. The EPI survey is a tool provided by Earthworm Foundation (EF) that allows an understanding of each supplier’s progress related to all aspects of an NDPE-compliant responsible sourcing program. EPI questions reflect current palm oil industry sustainability standards, thereby helping suppliers understand how to meet their customers’ expectations." "ADM engaged in a monitoring and verification assessment as part of the EPI by EF. The results of the assessment showed that 92% of palm oil volume sourced by ADM comes through direct suppliers who score an average of 76% on the monitoring and verification section".
        
        Open source document
      - Commitment to protect High Carbon Stock areas and/or peatlands
        Yes: internal
        
        0.7/1.3
        
        Commitment to protect High Carbon Stock areas and/or peatlands
        
        Yes: internal
        
        0.7/1.3
        
        Which processes or groups does the company use for third party verification?: Engagement for Policy Implementation tool - collaboration with Earthworm Foundation
        
        Which tools, approaches, third-party verification, including certification, schemes are used?: Engagement for Policy Implementation tool - collaboration with Earthworm Foundation
        
        "ADM began implementation of the Engagement for Policy Implementation (EPI) survey with all its suppliers from 2018. The EPI survey is a tool provided by Earthworm Foundation (EF) that allows an understanding of each supplier’s progress related to all aspects of an NDPE-compliant responsible sourcing program. EPI questions reflect current palm oil industry sustainability standards, thereby helping suppliers understand how to meet their customers’ expectations. [...] ADM engaged in a monitoring and verification assessment as part of the EPI by EF. The results of the assessment showed that 92% of palm oil volume sourced by ADM comes through direct suppliers who score an average of 76% on the monitoring and verification section. The results showed ADM the performance of its direct supply chain actors, which in turn enables ADM to engage with suppliers on specific topicsfor future development."
        
        Open source document
      - Commitment to a traceable supply chain
        No
        
        0/1.3
    - Deforestation cut off date
      No
      
      0/2
    - Collaborative actions
      Yes
      
      2/2
      
      Collaborative actions
      
      Yes
      
      2/2
      
      What is the nature of that participation?: Attending & contributing to meetings
      
      What initiatives does the company participate in?: ABRAPALMA - Brazilian Palm Association
      
      "ADM is a member, participant or signatory of more than 200 business/trade associations and sustainability initiatives, including: ABRAPALMA – Brazilian Palm Association".
      
      Open source document
    - Risk assessments for forest risk
      No
      
      0/2
      
      Risk assessments for forest risk
      
      No
      
      0/2
      
      How frequently are assessments conducted?: Not specified
    - Operations assessed to comply with law
      No
      
      0/2
    - Accessible grievance mechanism
      Yes
      
      4/4
      
      Accessible grievance mechanism
      
      Yes
      
      4/4
      
      Does the company publish grievances that have been made against it, as well as responses and resolutions including status and timeframes: Yes - https://assets.adm.com/Sustainability/Grievance-and-Resolution-Logs/Grievance-and-Resolution-Log-6-3-20.pdf
      
      What is the nature of the grievance mechanism used by the company (own mechanism, that of external company, internationally recognised mechanism, focused on social issues, focused on environmental issues, etc.)?: Internal
      
      Details of the mechanism: Social; Environmental
      
      "ADM is working hard to develop supply chains that meet our Commitment to No-Deforestation and Human Rights Policy. To that end, we invite stakeholders who have concerns related to the implementation of our policies to email us at responsibility@adm.com."
      
      Open source document
    - Report volumes of commodity
      No reporting
      
      0/4
      
      Report volumes of commodity
      
      No reporting
      
      0/4
      
      What is the non-certified/non-compliant volume?: 0 Not specified
      
      For what percent of the company's supply volume is third-party verification of performance relative to commitments conducted?: 40%
      
      What is the certified volume?: 168597Tonnes
      
      Which certification schemes are used?: RSPO
      
      Tonnes are reported in their CDP Report, the volumes are not disclosed in their latest RSPO report
      
      Open source document
    - Downstream: Publishing supplier lists
      Yes report direct suppliers
      
      2/4
      
      Downstream: Publishing supplier lists
      
      Yes report direct suppliers
      
      2/4
      
      Does the company disclose location of suppliers' production areas or primary processing sites?: Yes
      
      From what country(ies) does the company source material?: Brazil, Columbia, Costa Rica, Ghana, Guatemala, Honduras, Indonesia, Ivory Coast, Malaysia, Nicaragua, Panama, Papua New Guinea, Solomon Islands, Thailand
      
      What type of location data (boundary, point, etc.) is provided for smallholder farms?: None
      
      Reports list of mills from which ADM sources palm oil and palm kernel oil (along with locations and supplying companies). Also reports list of palm kernel expeller suppliers - ADM only imports PKE from a list of approved suppliers in Malaysia, Indonesia, Solomon Islands and Papua New Guinea, to New Zealand.
      
      Open source document
      Open source document
    - Downstream: Monitor compliance in supply chain
      Yes for its suppliers only
      
      3/4
      
      Downstream: Monitor compliance in supply chain
      
      Yes for its suppliers only
      
      3/4
      
      Details of monitoring: Using internal monitoring and verification systems
      
      How frequently is compliance assessed?: Not specified
      
      For what percentage of suppliers does the company use/rely on external mechanisms to monitor compliance?: 0%
      
      For what percent of suppliers does the company directly monitor compliance of production or processing operations?: 100%
      
      What percentage of the company's supply chain volume does that represent?: 100%
      
      "In addition to our G&R log, which relies mostly on external inputs, ADM also conducts monitoring and verification of No-Deforestation policy implementation through supplier self-reporting via the EPI tool, and maintains open dialogue with our primary suppliers. ADM also is evaluating the use of further monitoring and verification measures for future implementation, including remote sensing tools and on-the ground civil society monitoring mechanisms."
      
      Open source document
    - Downstream: Engagement with non-compliant suppliers
      Engage with suppliers but with no time-bound threat of exclusion
      
      1/2
      
      Downstream: Engagement with non-compliant suppliers
      
      Engage with suppliers but with no time-bound threat of exclusion
      
      1/2
      
      What type of support does the company offer to its suppliers to help them achieve compliance with commitments?: not disclosed
      
      Does the company engage non-compliant indirect suppliers in order to address and remedy non-compliance?: No
      
      What criteria does the policy specify for blacklisting or exclusion?: "We will not conduct business with suppliers who violate this policy repeatedly and refuse to take action to comply."
      
      "We will partner with stakeholders to improve the performance of suppliers who do not adhere to these policies, but who are willing to commit to taking appropriate, immediate action to correct their violations. We will not conduct business with suppliers who violate this policy repeatedly and refuse to take action to comply."
      
      Open source document
    - Downstream: Disclosure of non-compliant suppliers
      No disclosure
      
      0/2
- Pulp & Paper *
  
  12/84
  - Commitment Strength
    
    0/28
    - Commitment to protect priority forests
      
      0/12
      - Commitment details
        No commitment
        
        0/8
      - Commitment applies to all regions, suppliers and operation
        No
        
        0/2
      - Target date
        No target date
        
        0/1.3
      - Interim target date
        No
        
        0/0.7
    - Commitment to reduce use of virgin wood fibre
      
      0/8
      - Commitment details
        No
        
        0/4
      - Commitment applies to all regions, suppliers and operation
        No
        
        0/2
      - Target date
        No target date
        
        0/1.3
      - Interim target date
        No
        
        0/0.7
    - Commitment to a traceable supply chain
      
      0/8
      - Commitment details
        No traceability commitment
        
        0/4
      - Commitment applies to all regions, suppliers and operation
        No
        
        0/2
      - Target date
        No target date
        
        0/1.3
      - Interim target date
        No
        
        0/0.7
  - Social Considerations
    
    8/18
    - Labour rights in the supply chain
      Yes
      
      4/4
      
      Labour rights in the supply chain
      
      Yes
      
      4/4
      
      Details of commitment: Discrimination; Forced Labour; Child Labour; Freedom of association
      
      "In accordance with our Commitment to Respect Human Rights, we require that stakeholders in the ADM supply chain: [...] Never use child labor, or forced and/or bonded labor; [...] Do not discriminate in employment-related decisions; [...] Respect workers’ rights, including contract, temporary and migrant workers, to thefreedom of association and the right to collective bargaining"
      
      Open source document
    - Inclusion of small-scale farmers
      No
      
      0/4
    - Gender equality in the supply chain
      No commitment
      
      0/4
    - Commitment to remediation
      Yes
      
      2/2
      
      Commitment to remediation
      
      Yes
      
      2/2
      
      ADM's human rights policy states that they will "respect land-tenure right and the rights of indigenous and local communities to give or withhold their free, prior and informed consent to operations on lands to which they hold legal rights".
      
      Open source document
    - Commitment to ensure Free, Prior and Informed Consent
      Yes the company commits to securing FPIC prior to acquiring new interests/developments/expansions
      
      2/4
      
      Commitment to ensure Free, Prior and Informed Consent
      
      Yes the company commits to securing FPIC prior to acquiring new interests/developments/expansions
      
      2/4
      
      ADM's human rights policy states that they will "respect land-tenure right and the rights of indigenous and local communities to give or withhold their free, prior and informed consent to operations on lands to which they hold legal rights".
      
      Open source document
  - Reporting and Implementation
    
    4/38
    - Reporting against commitments
      
      0/6
      - Commitment to protect priority forests
        No
        
        0/2
      - Commitment to reduce use of virgin wood fibre
        No
        
        0/2
      - Commitment to a traceable supply chain
        No
        
        0/2
    - Reporting is independently verified
      
      0/4
      - Commitment to protect priority forests
        No
        
        0/1.3
      - Commitment to reduce use of virgin wood fibre
        No
        
        0/1.3
      - Commitment to a traceable supply chain
        No
        
        0/1.3
    - Deforestation cut off date
      No
      
      0/2
    - Collaborative actions
      No
      
      0/2
    - Risk assessments for forest risk
      No
      
      0/2
    - Operations assessed to comply with law
      No
      
      0/2
    - Accessible grievance mechanism
      Yes
      
      4/4
      
      Accessible grievance mechanism
      
      Yes
      
      4/4
      
      Details of the mechanism: Social; Environmental
      
      What is the nature of the grievance mechanism used by the company (own mechanism, that of external company, internationally recognised mechanism, focused on social issues, focused on environmental issues, etc.)?: Internal
      
      Does the company publish grievances that have been made against it, as well as responses and resolutions including status and timeframes: Yes - https://assets.adm.com/Sustainability/Grievance-and-Resolution-Logs/Grievance-and-Resolution-Log-6-3-20.pdf
      
      "ADM is working hard to develop supply chains that meet our Commitment to No-Deforestation and Human Rights Policy. To that end, we invite stakeholders who have concerns related to the implementation of our policies to email us at responsibility@adm.com."
      
      Open source document
    - Report volumes of commodity
      No reporting
      
      0/4
    - Downstream: Publishing supplier lists
      No disclosure
      
      0/4
    - Downstream: Monitor compliance in supply chain
      No
      
      0/4
    - Downstream: Engagement with non-compliant suppliers
      No engagement or exclusion
      
      0/2
    - Downstream: Disclosure of non-compliant suppliers
      No disclosure
      
      0/2

* commodity scores for which a company is not a powerbroker are given half the weighting of other commodities in total scores

Commitment strength

19/28

Avg. score
Reporting and Implementation

14/38

Avg. score
Social considerations

11/18

Avg. score

Profile

Archer Daniels Midland (ADM) is an American company involved in the global cultivation, processing, manufacturing and trading of agricultural commodities, ingredients for food and animal feed, as well as biofuels. It is one of the major processors and exporters of soy in South America and one of the largest commodity traders globally. It is among the largest processors of soy in Brazil, and is a leading player in Bolivia and Paraguay. Additionally, ADM is one of the world's major biodiesel producers. Archer Daniels Midland Co. is selected as a powerbroker for soy and is also assessed for its exposure to palm oil and paper packaging.

Sector

Industry sector

Agri commodities, Agriculture, Ingredients

Segments

Producer, Trader, Processor, Manufacturer

United States

Company Type

Company type

Public listed

Collective Commitments

Consumer Goods Forum member

New York Declaration on Forests signatory

Top Brands

ADM Food, ADM Animal Nutritition, Aces, Eatmoor, PenPals, AMPT

How we assess the Forest 500

To ensure deforestation free supply chains, companies need to adopt and implement timebound and measurable policies for forest risk commodities.

All assessments use policies published on company websites, some links may have changed or been removed since the time of assessment.

Full corporate sector performance data Forest 500 assessment methodology

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Disclaimer

This assessment has been carried out following the methodology developed for the Forest 500 project, available here. Please see our disclaimer applicable to all information contained within this site and our terms and conditions for use of data presented on this site.

All assessments use policies published on company and financial institution websites, and while we endeavor to keep them updated some links may have changed or been removed since the time of assessment.

Please contact us with any concerns or feedback about this or other assessments included in the Forest 500.