2019-ADM-Sustainability-Report.Pdf
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Local Action Global Impact 2019 Corporate Sustainability Report Overview Responsible Sourcing Our Operations People and Communities Appendix 1 Contents Letter from the Chairman and CEO 2 Overview Responsible Sourcing People and Communities About ADM 4 Introduction 17 Introduction 36 Where We Operate 5 Sustainability Commitments ADM Cares 37 and Policies 17 Building a More Sustainable COVID-19 Pandemic Response 37 Agricultural Value Chain 8 No-Deforestation, No Peat, Zero Hunger 38 No Exploitation (DPE) 18 Sustainability Governance 9 Women’s Empowerment 40 Human Rights 22 Awards and Memberships 10 Sustainable Agriculture 25 Materiality Assessment and Stakeholder Engagement 11 Appendix Goals, Targets and KPIs 12 Our Operations Verification Letter 42 Compliance and Ethics 28 GRI Index 45 Our Environmental Footprint 30 Related SASB Standards 52 Innovating Sustainable Materials 33 Food Safety and Quality 34 Workplace Safety 34 Overview Responsible Sourcing Our Operations People and Communities Appendix 2 Letter from the Chairman and CEO Dear Stakeholders: At ADM, we know that the health of our the United Nations Sustainable Development natural resources is critical to our future, Goals – Climate Action, Life on Land, Clean Sustainability. and that our commitments to sustainable Water and Sanitation, Zero Hunger, and Decent practices will result in a stronger ADM Work and Economic Growth – and we believe It’s in our nature. and a better world. We are proud to be that concentrating on them gives us the best the go-to sustainable sourcing partner opportunity to positively impact our planet ADM has also been recognized more broadly for our customers, and more widely, and the people and communities we serve, as for its commitment to ethics and being a good we are committed to driving change well as supporting long-term value creation for corporate citizen. In February 2020, we were through good practices, progressive our company. recognized by Ethisphere, a global leader in solutions and mindful actions that make a defining and advancing the standards of ethical There are many ways in which we are living our positive impact. business practices, as one of the World’s values, and one of the most important is our Most Ethical Companies. We are also proud The importance of these commitments work to reduce the environmental footprint to be included on the annual Forbes Best becomes even more clear amid an of our own operations. We met our previous Employers List. Juan R. Luciano unprecedented challenge such as the goals ahead of schedule, and this year, we CHAIRMAN AND CEO COVID-19 pandemic. Companies like ADM were proud to make even more ambitious Every day, we are advancing our values and are playing a critical role in supporting and commitments: to reduce our absolute executing on our commitments. This report lays maintaining the global food chain. And while greenhouse gas emissions by 25 percent, our out our priorities, highlights the great progress we are focused on operating safely and energy intensity by 15 percent, our water our team is making, and tells just a few of the effectively today, we cannot lose sight of intensity by 10 percent and achieve a 90 stories of the lives that we have positively tomorrow. Even amid these global challenges, percent landfill diversion rate, all by 2035. impacted around the globe. The world today we are continuing our work to ensure that faces many challenges we could not have I’m proud that our sustainable business ADM and the natural resources on which we foreseen a year ago, and yet facing those new practices continue to be recognized by depend remain strong and vital in the years challenges does not mean we are stepping back outside organizations. Once again, ADM was to come. from the commitments we have made. Never named an Industry Mover in the RobecoSAM before has our purpose, unlocking the power Our leadership position in the agriculture Sustainability Yearbook 2019. We were also of nature to enrich the quality of life, been and food value chain gives us a tremendous shortlisted as a Sustainability Champion by the more important, and never before have I been opportunity to help build a more sustainable Food Ingredients Innovation awards for our prouder of our efforts to live up to that purpose. food system. Our primary sustainability focus work in promoting and supporting sustainable areas remain No-Deforestation, Human Rights, agricultural practices among more than 12,000 Sustainable Agriculture, and Responsible smallholder farmers in Brazil and Paraguay. Operations. These focus areas are aligned with Juan R. Luciano CHAIRMAN AND CEO Overview Responsible Sourcing Our Operations People and Communities Appendix 3 Overview About ADM 4 Where We Operate 5 Building a More Sustainable 8 Agricultural Value Chain Sustainability Governance 9 Awards and Memberships 10 Materiality Assessment and 11 Stakeholder Engagement Goals, Targets and KPIs 12 Overview Responsible Sourcing Our Operations People and Communities Appendix 4 Overview About ADM At ADM, we unlock the power of nature approximately 1,900 barges, 11,900 rail to provide access to nutrition worldwide. cars, 330 trucks, 1,300 trailers, 90 boats, With industry-advancing innovations, and 7 oceangoing vessels; and leases a complete portfolio of ingredients approximately 610 barges, 16,900 rail and solutions to meet any taste, and cars, 320 trucks, 280 trailers, 40 boats, and a commitment to sustainability, we 19 oceangoing vessels. give customers an edge in solving the nutritional challenges of today Headquartered in Chicago, Illinois, ADM and tomorrow. We’re a global leader connects crops to markets on six continents. in human and animal nutrition and Revenues for the fiscal year 2019 were the world’s premier agricultural $64.7 billion. To learn more about our origination and processing company. Our company, please visit www.adm.com. breadth, depth, insights, facilities and logistical expertise give us unparalleled capabilities to meet needs for food, About this Report beverages, health and wellness, and more. From the seed of the idea to the We have aligned our reporting to follow outcome of the solution, we enrich the three key sustainability reporting standards. quality of life the world over. This 2019 Corporate Sustainability Report We use our size for the greater good. Our was prepared in accordance with the Global manufacturing capabilities, expertise and Reporting Initiative (GRI) Standards (Core). expansive footprint around the world allow The GRI Index is included at the end of this us to add value to every part of the global report on page 45. The disclosures in this supply chain. Our vast and diverse global report also align with the Task Force on value chain includes approximately 480 crop Climate Related Financial Disclosures (TCFD) procurement locations, 350 ingredient where noted. New for this year, we have also manufacturing facilities, 60 innovation centers, included an appendix with selected indicators and the world’s premier crop transportation from the Sustainability Accounting Standards network. To enhance the efficiency of transporting large quantities of raw Board (SASB). materials and finished products, ADM owns Overview Responsible Sourcing Our Operations People and Communities Appendix 5 Where We Operate Key Ag Services & Oilseeds Carbohydrate Solutions Nutrition Procurement Procurement Procurement Processing Processing Processing North America Colombia South America 9 1 2 1 Canada 7 6 2 8 5 Ecuador Brazil United States Peru 41 20 16 2 1 249 60 5 38 20 56 Dominican Republic Mexico 1 Paraguay 15 1 1 12 2 Belize Argentina 7 Uruguay 1 Barbados 4 1 1 Grenada 1 Trinidad and Tobago 2 3 Jamaica Puerto Rico Overview Responsible Sourcing Our Operations People and Communities Appendix 6 Key Ag Services & Oilseeds Carbohydrate Solutions Nutrition China Procurement Procurement Procurement APAC 1 1 1 9 Processing Processing Processing Korea India 51 3 2 4 Vietnam 2 Philippines Indonesia 2 Europe Russian Federation 1 1 Belgium 12 Morocco United Kingdom Australia 1 2 2 3 Netherlands 1 3 4 Algeria 4 7 Poland 1 Ireland 3 Germany 1 7 7 2 3 12 8 2 Czech Ukraine 6 1 Republic France 1 7 14 1 14 Hungary Nigeria Romania Italy 1 Bulgaria 1 Africa Portugal 4 Spain 1 Turkey 1 3 1 Switzerland 1 1 1 Madagascar 4 2 South Africa Overview Responsible Sourcing Our Operations People and Communities Appendix 7 Ag Services & Oilseeds Carbohydrate Solutions Nutrition 451 Procurement and Storage Facilities 11 Procurement Facilities 20 Procurement Facilities 128 Processing Facilities 64 Processing Plants 154 Processing Plants 17 24 12 ~30 Countries with Countries with Procurement/ Countries with Processing Plants Different Products Processing Facilities Storage Locations Additional Joint Venture Facilities Daily Grain Storage Capacity in Mexico, Hungary, Russia and U.S. WFSI Annual Corn Grind 30+ Procurement Centers 42 Owned and Leased Port Facilities 11 Owned Corn 50+ Processing Plants Customer Innovation 11,900 Centers 19.1 MMT Owned Railcars Global Storage Corn Grind Capacity Capacity 7 30+ Owned Oceangoing Vessels ~2.9M Research, Design and 23 MMT Bushels per Day Development Centers 1,300 NA 14 MMT Owned Semi-Trailers 3 of 5 Largest Corn Mills SA 3 MMT 1,900 in the World EMEAI 2 MMT NA 22 MMT Animal Nutrition Owned River Barges EMEAI 1 MMT Annual Crush Capacity 65+ Processing Facilities Annual Wheat Milling Capacity 55+ 47 Distribution Centers Oilseed Crush Facilities 45 41.7 MMT Owned Wheat 10+ Oilseeds Crushing ~60 Processing Plants Research, Design and Capacity Different Products Used in Food, Development Centers Animal Feed, Renewable Fuels Wheat Milling and Industrial Products 7 MMT Capacity ~800,000 Bushels per Day NA 22 MMT SA 7 MMT Americas 6 MMT EMEAI 13 MMT International 1 MMT Overview Responsible Sourcing Our Operations People and Communities Appendix 8 Building a More Sustainable Agricultural Value Chain We are the foundation of food on tables the world over – flavoring culture, forwarding health and wellness, and venturing into new possibilities and discoveries for human and animal nutrition.