No Deforestation, No Planting on Peat, No Exploitation (NO DPE) Policy FAQs
What is ADM’s No DPE policy?
We believe that successfully feeding the world while minimizing our impact on the planet is essential to our goal of setting the competitive standard in the agribusiness and food ingredient industries. In 2015, ADM became the first major global agribusiness to adopt and begin implementing a comprehensive no-deforestation policy covering both our palm and soy supply chains. Under our No DPE policy, we commit to no deforestation, no peat, no exploitation, and traceability and transparency in our global palm oil and soybean supply chains.
What is the scope of ADM’s No DPE Policy?
Our No DPE commitment applies to our global palm oil and soybean supply chains. Our priority is to implement our policy in geographies most impacted by deforestation and exploitation, particularly the Asia-Pacific palm oil supply chains and South American soy supply chains.
What does ADM’s palm oil supply chain commitment include?
ADM commits to source palm oil, palm kernel oil and their derivatives from suppliers following these social and environmental principles:
1. No deforestation
a. No development in high carbon stock (HCS) forests, or in high conservation value (HCV) areas
b. No new development on peatland, regardless of depth
c. No burning (in agriculture)
2. No exploitation of people and local communities
What does ADM’s soy supply chain commitment include?
ADM commits to No DPE principles throughout its global soy supply chain. This is a challenging endeavor, since the soy supply chain includes storage and highly mechanized co-mingling and transportation prior to processing. We use transactional data analysis evaluated against known deforestation and exploitation risks to help focus our efforts and manage resources. We also know that the best way to make lasting and positive environmental and social impact is to have industry-wide participation; to this end, we invite others to implement No DPE practices to help accelerate and amplify progress.
How does the policy compare to other similar policies of other companies?
ADM’s policy is in line with global sustainability trends for the palm oil industry. However, ADM is unique in that we are beginning the implementation of No DPE practices within our soy supply chain as well.
How will the policy be implemented?
ADM has a partnership with The Forest Trust (TFT), a globally known NGO with longtime expertise in the palm oil business and a wide network of stakeholders. TFT has evaluated ADM´s entire palm oil supply chain to have a clear understanding of who is involved in every phase, from the mill to refineries, and gain visibility over all palm oil and palm kernel oil traded by ADM. On the basis of this information, ADM is engaging with suppliers and identifying opportunities for transformation within the supply chain.
Does ADM own palm oil plantations or soybean farms?
With rare exceptions, ADM is not a producer of palm oil and does not own palm plantations. In cooperation with the government of Brazil, ADM has entered into a collaboration with more than 250 smallholder farmers and their families to develop a small (12,000-hectare) sustainable palm venture in Parà, Brazil. We are also a minority stakeholder in two Indonesian palm joint ventures with Wilmar International. ADM does not own any soybean farms.
What is traceability?
Traceability is the process of identifying our suppliers. This is a very important first step as it allows us to identify suppliers throughout the supply chain. Once we identifies those suppliers, we can then begin to assess if they share our No DPE values.
What is HCS?
HCS stands for high carbon stock, or viable forest areas storing significant quantities of carbon, usually associated with high vegetation density. When HCS forests are removed, particularly when fire is used to clear land, the carbon contained in the forests is released into the atmosphere in the form of CO2. The HCS approach was developed by Golden-Agri Resources Ltd (GAR), Greenpeace, and The Forest Trust (TFT) as a strategy to guide implementation of GAR’s no deforestation commitment.
What is HCV?
High conservation value, or HCV, refers to areas of biological, ecological, social or cultural value. The HCV approach was initially developed by the Forest Stewardship Council in 1999, and has since been adopted by the Roundtable on Sustainable Palm Oil (RSPO) and the Roundtable for Responsible Soy (RTRS), among other standards. There are six types of HCVs:
1. Concentrations of biological diversity.
2. Intact forest landscapes and large landscape-level ecosystems and ecosystem mosaics.
3. Rare, threatened, or endangered ecosystems, habitats or refugia.
4. Basic ecosystem services, including protection of water catchments and control of erosion.
5. Sites and resources fundamental for satisfying the basic necessities of local communities or indigenous peoples.
6. Sites, resources, habitats and landscapes of global or national cultural, archaeological or historical significance, and/or of critical cultural, ecological, economic or religious/sacred importance.
Is there a difference between HCV and HCS?
HCV and HCS are both tools designed to identify environmental values and mitigate environmental and social impacts by identifying ‘no-go’ areas. There are numerous commonalities between the two tools, including mapping of forest cover, surveys to identify social and environmental values, and consultation with local stakeholders. Furthermore, HCS methodology incorporates HCV results. However, HCS uses vegetation stratification to identify high carbon stock forests, and is focused on identifying and protecting viable forest ecosystems. The goal of HCV is to maintain a broad range of environmental and social values of particular importance, and is relevant in any ecosystem. HCS and HCV approaches were developed largely for use in the palm oil industry and it is not clear at this time if their application can be easily translated for the soy supply chain.