Full report

ADM

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  • HQ United States
  • ACTIVITIES Crushing, Storing, Trading, Animal feed manufacturing and processing, Refined oil production, Food products, Food distribution, Biofuel manufacturing
  • ULTIMATE PARENT Archer-Daniels-Midland Company
  • FINANCING AND OWNERSHIP
44.5
Elementary
TOTAL SCORE OUT OF 100
16.5 OF 30 (55%)
16.5
Set and strengthen goals
18 OF 33 (54.55%)
18
Implement ethical supply chains
3 OF 20 (15%)
3
Report progress
1 OF 11 (9.09%)
1
Increase transparency
6 OF 6 (100%)
6
Collaborate for change
16.5

Set and strengthen goals

Out of 30
+1 BONUS
4

Protection of forests and other natural ecosystems

Out of 16
+0 BONUS
1
Out of 2
Existence of public deforestation/conversion commitments
Does the company have a public commitment to 100% no-conversion production/sourcing (as defined by AFi), regardless of market demand?
  • Yes1 Public zero deforestation/deforestation-free/zero gross deforestation commitment
COMMENTS AND DETAILS
  • 1The NO DEFORESTATION Policy was launched in 2015, is global, and extends to ALL biomes

1
Out of 6
Cutoff dates
Do deforestation/conversion commitments specify a clear cutoff date? Is it aligned with AF guidance? Where existing regional commodity/sector cutoff dates exist, are those followed?
  • Amazon Yes1 2008
  • Cerrado No No cut-off date for this biome
  • Gran Chaco No No cut-off date for this biome
  • Pampas No No cut-off date for this biome
  • Chiquitania No No cut-off date for this biome
  • Espinal No No cut-off date for this biome
  • Pantanal No No cut-off date for this biome
  • Danube Delta No No cut-off date for this biome
  • Northern Great Plains No No cut-off date for this biome
  • Global (all other biomes) No2 No cut-off date for this biome
COMMENTS AND DETAILS
  • 1ADM has been a signatory of the Amazon Soy Moratorium since 2006, which has a cut-off date of 2008

  • 2The NO DEFORESTATION Policy was launched in 2015, is global, and extends to ALL biomes

2
Out of 2
Deforestation/conversion – Scope of commitments
Do deforestation/conversion commitments include a clear definition of the scope to which they are applicable?
  • All operations, all subsidiaries, all divisions and import markets Yes1 Yes, all included
  • All types of soy traded (soybeans, soybean meal and soybean oil) Yes Yes, all included
  • All regions/biomes Yes2 Yes, all included
  • All direct and indirect suppliers Yes Yes, all included
COMMENTS AND DETAILS
  • 1It also includes JVs

  • 2The NO DEFORESTATION Policy was launched in 2015, is global, and extends to ALL biomes

0
Out of 3
Achievement date
How quickly has the company committed to achieving its deforestation/conversion commitments?
  • No No target date/NA
  • When was this target/date last reviewed or updated? Yes 2020
COMMENTS AND DETAILS
0
Out of 3
Interim targets and milestones
Do the company's commitments to eliminate deforestation and conversion specify time-bound targets and milestones?
  • No No
COMMENTS AND DETAILS
8

Respect for human rights

Out of 8
+0 BONUS
2
Out of 2
Existence of public human rights commitment
Does the company have a public commitment to respect internationally recognized human rights (including workers, indigenous peoples and local communities) and ensure this respect equally for all persons and groups?
  • Yes Yes: International Bill of Human Rights, Core UN human rights treaties, International Labour Organization (ILO), United Nations Declaration on the Rights of Indigenous Peoples (UNDRIP), UN Guiding Principles
COMMENTS AND DETAILS
2
Out of 2
Human rights - Scope of commitments
Do human rights commitments include a clear definition of the scope to which they are applicable?
  • All operations, all subsidiaries, all divisions and import markets Yes Yes, all included
  • All types of soy traded (soybeans, soybean meal and soybean oil) Yes Yes, all included
  • All regions/biomes Yes Yes, all included
  • All direct and indirect suppliers Yes Yes, all included
COMMENTS AND DETAILS
2
Out of 2
Human rights - FPIC
Does the company commit to or have a supplier policy that requires suppliers to secure the Free, Prior, and Informed Consent (FPIC) of potentially affected Indigenous peoples and/or local communities before acquiring new interests in land or resources, new developments or expansions?
  • Yes1 Yes, for all suppliers
  • Is the company's FPIC commitment or policy fully aligned with key elements of an effective FPIC process outlined in the Accountability Framework? Yes Yes
COMMENTS AND DETAILS
  • 1"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 or withhold their free, prior and informed consent to operations on lands to which theyhold legal or customary rights"

2
Out of 2
FPIC - Scope of commitments
Does the FPIC commitments include a clear definition of the scope to which they are applicable?
  • All operations, all subsidiaries, all divisions and import markets Yes Yes, all included
  • All types of soy traded (soybeans, soybean meal and soybean oil) Yes Yes, all included
  • All regions/biomes Yes Yes, all included
  • All direct and indirect suppliers Yes Yes, all included
COMMENTS AND DETAILS
4.5

Traceability

Out of 6
+1 BONUS
2
Out of 2
Traceability
Has the company made a commitment to traceability of the soy it sources? To what level of traceability does the company commit?
  • Yes1 Commitment to traceability to farm polygon
COMMENTS AND DETAILS
  • 1Commitment to traceability varies according to a geographic assessment. High Risk areas will have traceability to farm (polygons), medium risk areas to municipality and low risk areas to country of origin

1.5
Out of 2
Traceability - Scope of commitments
Do the company's traceability commitments include a clear definition of the scope to which they are applicable?
  • All operations, all subsidiaries, all divisions and import markets Yes1 Yes, all included
  • All types of soy traded (soybeans, soybean meal and soybean oil) Yes2 Yes, all included
  • All regions/biomes No3 No, some exceptions
  • All direct and indirect suppliers Yes4 Yes, all included
COMMENTS AND DETAILS
  • 1Commitment to traceability varies according to a geographic assessment. High Risk areas will have traceability to farm (polygons), medium risk areas to municipality and low risk areas to country of origin

  • 2Commitment to traceability varies according to a geographic assessment. High Risk areas will have traceability to farm (polygons), medium risk areas to municipality and low risk areas to country of origin

  • 3Commitment to traceability varies according to a geographic assessment. High Risk areas will have traceability to farm (polygons), medium risk areas to municipality and low risk areas to country of origin

  • 4Commitment to traceability varies according to a geographic assessment. High Risk areas will have traceability to farm (polygons), medium risk areas to municipality and low risk areas to country of origin

1
Out of 2
Traceability - Achievement date
How quickly has the company committed to achieving its traceability commitments?
  • Yes1 2022
  • When was this target/date last reviewed or updated? Yes 2020
COMMENTS AND DETAILS
  • 1For High Risk areas - 2021 Traceability for Direct suppliers, and 2022 for indirect suppliers

18

Implement ethical supply chains

Out of 33
+2 BONUS
2

Company systems and processes

Out of 2
+0 BONUS
1
Out of 1
Board oversight
Does the company’s board have a committee or is there a high-level management position that is formally focused on deforestation/ conversion-related issues?
  • Yes1 Yes
COMMENTS AND DETAILS
  • 1ADM have a SUSTAINABILITY AND CORPORATE RESPONSIBILITY COMMITTEE and Vice President, Chief Sustainability Officer (CSO)

0
Out of 0
Executive compensation
Does the company link executive compensation to deforestation-related issues?
  • No No
  • What is the percentage of pay at risk? N/A
COMMENTS AND DETAILS
1
Out of 1
Grievance mechanism
Does the company have grievance mechanisms in place to identify and remedy adverse social and environmental impacts linked to their operations and/or supply chain? What is the nature of the grievance mechanism used by the company (own mechanism, that of external entity, etc.)?
  • Yes1 Yes
  • Is it publicly available to all stakeholders? Yes Yes
  • Is there a description of the process and procedures that are followed when a grievance is raised? Yes Yes
  • Are grievances and responses or resolutions published? Yes Yes
  • What is the nature of the grievance mechanism used by the company (own mechanism, external entity, etc.)? Yes Internal, own mechanism
COMMENTS AND DETAILS
  • 1"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. We will address non-compliances in accordance with the Managing Supplier Non-Compliance procedure. All allegations or potential non-compliance issues received will be investigated following the workflow of the grievance and resolution protocol. "

1

Supply chain assessment

Out of 2
+0 BONUS
1
Out of 1
Risk assessment and due diligence
Does the company conduct risk assessments related to deforestation/conversion risk? Are the results of the assessments made publicly available?
  • Yes Yes, covering 100% of the soy produced and sourced by the company
  • Are the results published? No No
COMMENTS AND DETAILS
0
Out of 1
Compliance with applicable laws
Does the company conduct assessments to ensure that their operations and supply chains comply with all applicable laws?
  • No No
  • Do these assessments include potential future changes to regulatory frameworks? No No
COMMENTS AND DETAILS
12

Managing for supply chain compliance

Out of 19
+2 BONUS
0
Out of 2
Embedded into decision-making
Has the company embedded its commitment to deforestation or conversion free soy into decision-making processes and systems? Specifically, has the company set a policy or process for trading desks and procurement teams to assess compliance? Do trade desks and procurement managers have a list of companies that are excluded or need to be assessed more carefully due to their involvement in deforestation/conversion?
  • Does the company have a policy or process for procurement teams and trading desks to assess compliance against its commitments and include that in decision-making? No No
  • Do trade desks and procurement managers have a list of non-compliant suppliers that should be excluded due to their involvement in deforestation? No No
COMMENTS AND DETAILS
2
Out of 2
Operations and supplier engagement: thresholds
Does the company have specific thresholds/triggers for supplier suspension in case of non-compliance?
  • Yes1 Yes
COMMENTS AND DETAILS
  • 1There are severe Human Right violation issues (e.g.: Child Labor, Slave labor, others) that are not TOLERATED and will cause supplier suspension.

5
Out of 5
Operations and supplier engagement: time-bound plans
Does the company set time-bound action plans for non-compliant operations and suppliers in order to address and remedy non-compliance?
  • Yes1 Yes
  • If yes, does the company sets time-bound action plans for farm-level suppliers, including indirect suppliers? No No
COMMENTS AND DETAILS
  • 1ADM has its own internal procedures to address and manage non compliant suppliers

1
Out of 2
Engagement with non-compliant suppliers
Does the company offer support to its suppliers to help them achieve compliance with commitments? What percentage of the company's supply chain volume are represented by suppliers currently in receiving that support?
  • Yes Yes
  • Type of support: Yes Tech assistance and support to upgrade certain non compliances
  • How many of the company's suppliers are currently receiving this support? Yes aproximately 100
  • What percentage of the company's volume is represented by suppliers that are supported? N/A
COMMENTS AND DETAILS
0
Out of 0
Supporting expansion of soy on cleared land
Does the company provide technical and/or financial support to soy producers to encourage expansion of soy on already cleared land?
  • Yes1 Yes
  • How many producers are currently receiving this support? Yes2 Over 800 soy farmers, that cover +2.5M hectares have had access to such programs
COMMENTS AND DETAILS
  • 1ADM provides technical support through its Best Management Practices extension programs (Doing it Right, SOJA PLUS, Sustentagil, others) to raise environmental and labor rights awareness, promote productivity increases, and avoid expansion over newly converted native vegetation areas

  • 2Today close to 50 producers are actively participating

2
Out of 4
Environmental and social impact assessments
Does the company conduct or facilitate (or require suppliers to conduct or facilitate) environmental and social impact assessments for new site development or land acquisition?
  • Does the company conduct environmental and social impact assessments for any new site development or land acquisition conducted by the company? Yes1 An ESIA has been carried out as part of the land use planning process for 100% of production units
  • Are suppliers required to conduct environmental and social impact assessments for new site development or land acquisition? Yes2 Company requires suppliers to conduct or facilitate ESIAs for new site development or land acquisition
COMMENTS AND DETAILS
  • 1We do NOT own land. We have the ESIAs for all assets (crushing plants, country elevators, port terminals, etc).

  • 2We require ESIAs of all certified suppliers or those who have engaged in the Best Management Practices extension programs

2
Out of 4
Remediation and restoration
Does the company provide remedy to (or require and support all suppliers that own or manage land to provide remedy to) any harms in case of negative social impacts associated with the company's prior actions or land management practices and/or restore any land converted after the cut off date?
  • For company-owned or managed land: Does the company provide remedy to social impacts? Yes Company does not own or manage land
  • For company-owned or managed land: Does the company restore land deforested after the cut off date? Yes Company does not own or manage land
  • For suppliers: Are suppliers required to provide remedy to social impacts? No No
  • For suppliers: Are suppliers required to restore land converted after the cutoff date? Yes1 Yes
COMMENTS AND DETAILS
  • 1suppliers are expected to be in compliance with the local legislation and restore land deforested after a cutoff date when needed,

0

Supplier requirements

Out of 4
+0 BONUS
0
Out of 4
Supplier commitment requirements
Does the company require that suppliers have commitments to (1) zero deforestation and conversion (2) respect human rights?
  • Zero deforestation and conversion commitment No No
  • Human rights commitment covering both workers rights and rights of Indigenous peoples and local communities No No
  • Commitment to respect FPIC of local communities No No
COMMENTS AND DETAILS
3

Monitoring and verification

Out of 6
+0 BONUS
1
Out of 1
Direct supplier monitoring
Does the company monitor direct suppliers (e.g., soy producers) against deforestation and conversion requirements?
  • Yes1 Yes, at least annually
  • Are results made publicly available? No No
COMMENTS AND DETAILS
  • 1Since 2018 , specialized firms with GIS technology (satellite imaging) started cross - referencing planted areas within the farm polygons of our direct suppliers in high risk areas to understand if the soy being sourced is compliant with our No - Deforestation Policy . Farms are also verified to make sure there are no environmental issues (embargoed areas), encroachment into protected areas or Indigenous Territories, or labor issues which violate our No Exploitation Policy . In our grievance log, we have investigated and responded to reports that were sent to ADM inquiring if soy from newly cleared areas in Brazil was in our supply chain . We are proud to say that none of those cases reported were linked to soy within our supply chain . - We expect to have 100 % traceability to farm (polygons) of all direct suppliers in BRAZIL by JUNE 2021 . - The above achievement will enable us to have an accurate DCF footprint within our supply chain in Brazil by JUNE 2021 . - In Argentina, we will work to achieve traceability to district level of at least 80 % of the total volume of soy sourced by DECEMBER 2021

0
Out of 1
Indirect supplier monitoring
Does the company monitor intermediaries (e.g. aggregators, other traders, brokers, silo owners, cooperatives, etc.)?
  • No No
  • Are results made publicly available? No No
COMMENTS AND DETAILS
0
Out of 1
Indirect supplier monitoring – farms of origin
Does the company monitor intermediaries' farms of origin (e.g. original producers of soy purchased by intermediaries) against its deforestation and conversion requirements?
  • No No monitoring
  • Are results made publicly available? No No
COMMENTS AND DETAILS
2
Out of 3
Quality of monitoring protocols
Have civil society organisations participated in the development of the protocols? Are monitoring protocols made publicly available? Are supplier monitoring reports/outcomes third-party verified?
  • Have civil society organizations participated in the development of monitoring protocols? Yes1 Yes
  • Are monitoring protocols made publicly available? Yes2 Yes
  • Are supplier monitoring reports/outcomes third-party verified? No3 No
COMMENTS AND DETAILS
  • 1ASM , Para Green Protocol, the Soft Commodities Forum, Our own COMPANY No DEFORESTATION POLICY

  • 2Amazon Soy Moratorium and Para Green Protocol

  • 3Amazon Soy Moratorium, the Para Green Protocol, others

3

Report progress

Out of 20
+0 BONUS
2.5

Outcomes: deforestation and conversion

Out of 15
+0 BONUS
0.5
Out of 8
Compliance with deforestation and conversion commitments: reporting
Has the company reported on progress on commitment implementation in 2019 or 2020?
  • Yes1 Publicly reported for part of volumes sourced/produced
  • In the latest reporting cycle, what percentage of soy volume in the company's operations or supply chain was compliant with no deforestation/conversion standards? No Not disclosed
COMMENTS AND DETAILS
  • 1In 2019 and 2020 ADM, ALL volumes in the Amazon Region were DEFORESTATION FREE (as per the SOY Moratorium Agreement). ADM is audited annually by 3rd parties. In all other biomes, the volumes sourced are also DEFORESTATION FREE, but they are not audited unless they belong to a certification scheme. In 2019 and 2020 we worked with 2BSvs, ISCC, RTRS, and ADM Responsible SOY

2
Out of 4
Compliance with deforestation and conversion commitments: verification
How is this compliance percentage calculated?
  • Yes1 Third party (verified some of the reporting above)
  • Is the company's progress reporting independently verified? N/A
COMMENTS AND DETAILS
  • 1In 2019 and 2020 ADM, ALL volumes in the Amazon Region were DEFORESTATION FREE (as per the SOY Moratorium Agreement). ADM is audited annually by 3rd parties. In all other biomes, the volumes sourced are also DEFORESTATION FREE, but they are not audited unless they belong to a certification scheme. In 2019 and 2020 we worked with 2BSvs, ISCC, RTRS, and ADM Responsible SOY

0
Out of 3
Exposure to deforestation risk in South America
How exposed is the company to deforestation risk in South America?
  • Brazil Yes1 Low - trase calculated 5,324 hectares
  • Bolivien Yes2 ADM does not have operations in this country
  • Argentina Yes3 Below 0.5% - trase calculated 47 hectares
  • Paraguay Yes4 Low - trase calculated 226 hectares
COMMENTS AND DETAILS
  • 1No quantified risk: the country is assessed by regions. High Risk areas or regions require traceability to farm to monitor direct suppliers and make sure they comply with local legislation and ADM´s policies.

  • 2we do not have operations in this country

  • 3% of volume coming from High Risk biomes (CHACO)

  • 4the country is assessed by regions. High Risk areas or regions require traceability to farm to monitor direct suppliers and make sure they comply with local legislation and ADM´s policies.

0.5

Outcomes: traceability

Out of 5
+0 BONUS
0.5
Out of 3
Compliance with traceability commitments - reporting
Does the company publicly report on traceability of its soy supply chains? What percentage of soy in the company's supply chain is traceable to the country of origin? To a sub-national origin (e.g. state or municipality)? To the farm?
  • Yes Traceability publicly reported at least annually
  • Percentage traceable to second-level jurisdiction (e.g. municipality level) Yes 1
  • Percentage traceable to farm Yes For high risk areas traceability to farm is up to 100%.
COMMENTS AND DETAILS
0
Out of 2
Compliance with traceability commitments - verification
How is this compliance percentage calculated? Is the company's progress reporting independently verified?
  • No No verification
  • Calculation methods N/A
COMMENTS AND DETAILS
1

Increase transparency

Out of 11
+0 BONUS
0

Company information and exposure

Out of 8
+0 BONUS
0
Out of 3
Volumes and sourcing area
Does the company disclose volumes of soybeans purchased annually? Are they disaggregated by country and by biome/subnational sourcing area?
  • No No, company does not report this information
  • Total volume N/A
  • Brazil: Cerrado N/A
  • Brazil: Amazon N/A
  • Brazil: Matopiba N/A
  • Brazil: Pantanal N/A
  • Brazil: Atlantic Forest N/A
  • Argentina: Gran Chaco N/A
  • Argentina: Pampa N/A
  • Argentina: Espinal N/A
  • Paraguay: Gran Chaco N/A
  • Paraguay: Atlantic Forest N/A
  • Bolivia: Chiquitania N/A
  • Bolivia: Amazon N/A
  • US: Northern Great Plains N/A
  • Europe: Danube Delta N/A
  • Others N/A
COMMENTS AND DETAILS
0
Out of 1
Volumes produced on own farms/direct sourced/third-party sourced
Does the company disclose proportion of soy produced on own farms, sourced from producers or sourced from other third-party suppliers in 2019 or 2020?
  • Produced on own farms N/A
  • Sourced directly from producers N/A
  • Sourced from other third-party suppliers N/A
COMMENTS AND DETAILS
0
Out of 1
Company operations
Does the company publicly disclose the location of company-owned processing facilities?
  • No No, company does not report this information
COMMENTS AND DETAILS
0
Out of 3
Supplier and farm of origin list
Does the company disclose the identity and/or location of its direct and indirect suppliers, and of all farms of origin?
  • For direct suppliers No No, company does not report this information
  • For indirect suppliers No No, company does not report this information
  • Farm of origin No No, company does not report this information
COMMENTS AND DETAILS
0

Certification

Out of 1
+0 BONUS
0
Out of 1
Certification
What percentage of soy used, produced or traded by the company is certified? Which certification schemes and models (e.g. identity preserved, segregated, mass balance, book and claim) are used? If the company has its own certification scheme, is it made publicly available?
  • Certification scheme N/A
  • Certified volume under credits N/A
  • Certified volume mass balance N/A
  • Certified volume segregated N/A
  • Total certified volume N/A
  • Total certified volume as percentage of all volumes N/A
  • If the company has its own certification scheme, is it made publicly available? Yes1 Yes
  • Traceability process Yes2 Yes
  • Supplier requirements Yes3 Yes
  • Cutoff date Yes4 Yes
  • Are at least 50% of volumes sourced under either identity preserved or segregated chain of custody models? N/A
COMMENTS AND DETAILS
  • 1ADM Responsible SOY (ARS)

  • 2yes, to farm polygon

  • 3environmental, labor and best management practices are included

  • 42015

0

Policy advocacy

Out of 1
+0 BONUS
0
Out of 1
Political Disclosures
Does the company disclose all of its political contributions and campaign expenditures at all jurisdictional levels?
  • N/A
COMMENTS AND DETAILS
0
Out of 0
Advocacy
Does the company actively advocate for regulatory frameworks that enable progress towards soy supply chains free of deforestation, conversion, and human rights abuses?
  • N/A
COMMENTS AND DETAILS
1

Survey Response

Out of 1
+0 BONUS
1
Out of 1
Response
Did the company respond to the scorecard survey?
  • N/A
COMMENTS AND DETAILS
6

Collaborate for change

Out of 6
+0 BONUS
6

Collaborate for change

Out of 6
+0 BONUS
3
Out of 3
Collaboration in producer countries
Is the company a member of biome-specific working groups to tackle deforestation and conversion for soy (and other commodities) in the biomes it sources from?
  • Yes1 Yes
  • Initiatives Yes WBCSD´s Soft Commodities Forum (SCF), GTS (grupo de trabalho da SOJA), GTC (Grupo de trabalho do Cerrado), UNDP Green Commodities, Coalizao Matopiba, Agroideal, VISEC (Vision sectorial para el Gran Chaco), Abiove/Anec sustainability commission, RTRS, Proterra, ISCC, RenovaBio, Field to Market
COMMENTS AND DETAILS
  • 1WBCSD´s Soft Commodities Forum (SCF), GTS (grupo de trabalho da SOJA), GTC (Grupo de trabalho do Cerrado), UNDP Green Commodities, Coalizao Matopiba, Agroideal, VISEC (Vision sectorial para el Gran Chaco), Abiove/Anec sustainability commission, RTRS, Proterra, ISCC, RenovaBio, Field to Market

3
Out of 3
Collaboration in import markets
Is the company a member of initiatives in import markets that advocate for zero deforestation and conversion in soy supply chains (or across commodities)?
  • Yes1 Yes
  • Initiatives Yes Fediol/FEFAC/COCERAL sustainability working Group, UK RT, RTRS, Dutch RT for soy, DURALIM, SAI Platform Dairy working group
COMMENTS AND DETAILS
  • 1Fediol/FEFAC/COCERAL sustainability working Group, UK RT, RTRS, Dutch RT for soy, DURALIM, SAI Platform Dairy working group