CHICAGO, Jan. 11, 2016—Archer Daniels Midland Company (NYSE: ADM) and The Forest Trust (TFT) recently completed an initial assessment of ADM’s global palm oil and soybean supply chains— the first step toward full implementation of the No-Deforestation Policy the company adopted in May.Data and observations from these assessments are detailed in two progress reports the company issued earlier this month. The reports are available for download atwww.adm.com/responsibility.
Though—with rare exceptions—ADM is not a grower of crops, the No-Deforestation policy aims to leverage the company’s role as a major buyer of crops to help create more sustainable, traceable agricultural supply chains that protect high carbon stock forests, important natural ecosystems and peatlands, as well as the human rights of individuals along the agricultural value chain. ADM has partnered with The Forest Trust to implement the policy.
In the progress reports, the organizations note that establishing traceable supply chains requires an initial risk assessment; an evaluation of direct suppliers’ sourcing practices; the development of action plans to help suppliers achieve compliance with ADM’s policy; and ongoing monitoring and reporting.
Currently, ADM is in the supplier-review phase of its palm-oil implementation plan, having completed the initial mapping process through a comprehensive TFT review of the company’s palm oil sourcing and processing operations. The company has confirmed that 85 percent of its global palm-oil supply is already traceable back to the mill of origin.
On the soybean side, because ADM is the first large global agribusiness that has committed to No-Deforestation in its soy supply chain, TFT is for the first time mapping a company’s key sourcing regions against areas in South America considered to be at high risk for deforestation. TFT teams spent the second half of 2015 visiting multiple South American countries to begin developing a global action plan intended to help growers achieve compliance with ADM’s policy.
“The partnership between ADM and The Forest Trust is off to a productive start,” said Timothy Venverloh, ADM director, Global Sustainability. “Working together, we’ve been able to make significant headway on our shared goal of ensuring that the soybean and palm-oil supply chains are managed in ways that protect the environment, biodiversity and human rights.”
“We’re very pleased with the progress our organizations have made in the first months since ADM adopted its No-Deforestations policy,” added Robin Barr, director for TFT. “Particularly when it comes to soy, we and ADM are breaking new ground in terms of agricultural supply-chain traceability. The work we are doing together should create a template for other organizations to follow.”
Archer Daniels Midland Company