Scope 1 Emissions
2022 Communication on Progress
Archer Daniels Midland
Published date
June 30, 2022
No. of questions
62
Supplemental files
human-rights-policy-2021-update.pdfcommitment-to-anti-corruption-compliance.pdfEnvironment, Health and Safety PolicyCode of Conduct4019111_11_archer-daniels-midland_esg_clean-compressed (1).pdf4019111_11_archer-daniels-midland_esg_clean-compressed (1).pdf4019111_11_archer-daniels-midland_esg_clean-compressed (1).pdfhuman-rights-policy-2021-update (1).pdfehs-policy (1).pdfprotect-biodiversity-forests-communities-v2 (1).pdfCommitment-to-Anti-Corruption-Compliance.pdfCEO Statement
Governance
Policies and Responsibilities
1. Does the Board / highest governance body or most senior executive of the company:
2. Does the company have a publicly stated commitment regarding the following sustainability topics?
Optional commentADM has set forth several key social and environmental commitments and policies that collectively outline our expectations for our colleagues, business partners and contractors, and our organization as a whole with respect to our sourcing operations. They establish clear standards that govern our approach to raw material sourcing, environmental stewardship and employee conduct, among other areas, and they state our positions on issues of widespread public interest. These standards were developed with input from our operations, law, compliance, environmental, and health and safety teams, and were approved by Chairman and CEO Juan Luciano.3. Does the company have in place a code of conduct regarding each of the following sustainability topics?
4. Has the company appointed an individual or group responsible for each of the following sustainability topics?
Optional commentSustainability and Corporate Responsibility Committee (i) oversees company's compliance with sustainability and corporate responsibility laws and regulations (ii) assesses the company’s performance relating to sustainability and corporate responsibility goals and industry benchmarks and (iii) reviews sustainability-related risks quarterly through the enterprise risk management process5. Does the company have a formal structure(s) (such as a cross-functional committee) to address each of the following sustainability topics?
Optional commentOur sustainability efforts are overseen by our Board of Directors, in particular a dedicated Sustainability and Corporate Responsibility Committee, and led by our Chief Sustainability Officer (CSO), who is supported by regional sustainability teams.Prevention
6. Does the company have a process or processes to assess risk?
6.1. During the assessment of risk, which business relationships are reviewed?
7. Does the company have a due diligence process through which it identifies, prevents, mitigates, and accounts for actual and potential negative impacts on sustainability topics?
7.1. During the due diligence process, which business relationships are reviewed?
Concerns and grievance mechanisms
8. Are there any processes through which members of the company’s workforce can raise concerns about the company’s conduct related to human rights, labour rights, environment, or anti-corruption?
Optional commentADM has provided several resources by which we can raise questions, comments and concerns. Employees are encouraged to contact any of the following resources at any time: • Local resources, such as supervisors, managers or human resources professionals • In some locations, appropriate representatives selected by colleagues (such as labor unions and works councils) • The Compliance team • The ADM Way Helpline8.1. Please provide additional detail regarding the process(es) the company has through which members of the company’s workforce can raise concerns about the company’s conduct.
9. Does the company provide or enable access to effective remedy to right holders / stakeholders where it has caused or contributed to the adverse impact?
Lessons
10. How does the company capture lessons regarding each of the following sustainability topics?
Executive Pay
11. Is executive pay linked to performance on one or more of the following sustainability topics?
Optional commentChanges to the Executive Compensation program for 2022 PSU awards includes two-goal ESG metric: (1) progress toward gender parity, and (2) absolute reduction in greenhouse gas emissions over the three-year performance period.Board Composition
12. Percentage of individuals within the company’s Board / highest governance body by:
Optional commentReference: Page 4 of 2022 ADM Proxy Statement13. Do you produce sustainability reporting according to:
Optional commentWe have aligned our Sustainability Report with three key sustainability reporting standards: the Global Reporting Initiative (GRI) Standards, the Task Force on Climate-Related Financial Disclosures (TCFD), and the Sustainability Accounting Standards Board (SASB).Data Assurance
14. Is the information disclosed in this questionnaire assured by a third-party?
Optional commentPage 53-54 of the 2021 Sustainability Report includes the third-party verification statementsHuman Rights
Materiality / Saliency
1. Which of the following has the company identified as material human rights issues connected with its operations and/or value chain, whether based on their salience (i.e., the most severe potential negative impacts on people) or another basis?
Response
8. Briefly describe practical actions the company has taken during the reporting period and/or plans to take to implement the human rights principles, including any challenges faced and actions taken towards prevention and/or remediation.
Please see pages XYZ in our 2021 Sustainability report. LINKLabour
Commitment
1. Does the company have a policy commitment in relation to the following labour rights principles?
1.1. For each labour rights policy, is it:
Prevention
2. In the course of the reporting period, has the company engaged with affected stakeholders or their legitimate representatives in relation to the following labour rights issues?
Optional commentADM hosts Sedex responsible sourcing audits at facilities around the globe. These audits allow to track key risk indicators. At the ADM facilities visited in 2021, there were no fees charged to job-seekers in exchange for employment, and no collateral was taken in the form of money, identification or other personal belongings without workers’ consent as a condition of employment by ADM or contracted companies. No human trafficking was observed. In 2021, ADM conducted 35 Sedex audits across all three business units and in eight countries. In Malaysia, we piloted Earthworm’s (EF) Child Risk Assessment Framework (CRAF) with a plantation company, in two oil palm estates , supporting them to identify critical issues affecting children living at the site in order to develop policies, procedures, and interventions. A total of 415 workers were reached indirectly, and 486 children were directly engaged.3. What type of action has the company taken in the reporting period with the aim of preventing/mitigating the risks/impacts associated with this labour rights issue?
4. Who receives training for the following labour rights issues?
Optional commentOther includes ADM's Board of Directors5. How does the company assess progress in preventing/mitigating the risks/impacts associated with the following labour rights issues?
Performance
6. What is the percentage of employees covered under collective bargaining agreements?
Optional commentAbove statistics includes U.S. colleagues only7. What is the percentage of employees in a trade union or other workers' organization?
Optional commentAbove statistics includes U.S. colleagues only8. In the course of the reporting period, what was the percentage of women in:
Optional commentPage 4 and 20 of 2022 ADM Proxy Statement contains this information.9. What was the average ratio of the basic salary and remuneration of women to men (comparing jobs of equal value) during the reporting period?
10. In the course of the reporting period, how frequently were workers injured (injuries per hour worked)?
Optional commentADM measures and publishes TRIR and LWIR on annual basis in the following format: our Total Recordable Incident Rate (TRIR) is 0.73 in 2021, while our Lost Workday Incident Rate (LWIR) is 0.21 in 2021. This information can be found in page 49 of 2021 ADM Sustainability Report11. In the course of the reporting period, what was the company’s incident rate?
Optional commentADM measures and publishes TRIR and LWIR on annual basis in the following format: our Total Recordable Incident Rate (TRIR) is 0.73 in 2021, while our Lost Workday Incident Rate (LWIR) is 0.21 in 2021. This information can be found in page 49 of 2021 ADM Sustainability ReportResponse and Reporting
12. In the course of the reporting period, has the company been involved in providing or enabling remedy where it has caused or contributed to the adverse impact associated with the following labour rights issues?
Optional commentWe invite all stakeholders who have concerns related to the implementation of our policies to email us at responsibility@adm.com or use The ADM Way Helpline to voice their concerns.13. Briefly describe practical actions the company has taken during the reporting period and/or plans to take to implement the labour rights principles, including any challenges faced and actions taken towards prevention and/or remediation.
In 2021, we began developing a standard operating procedure to formalize our human rights due diligence program. The procedure will define a consistent risk ranking methodology, mitigation strategies, and action plans. To demonstrate compliance with our human rights policy, we also host Sedex responsible sourcing audits at our facilities around the globe. In 2021, we conducted 35 SMETA audits across all 3 business units and in 8 countries.Environment
Commitment
1. Does the company have a formal policy on the following environmental topics?
1.1. For each environmental policy, is it:
Prevention
2. In the course of the reporting period, has the company engaged with affected stakeholders or their legitimate representatives in relation to the following environmental issues?
3. What type of action has the company taken in the reporting period with the aim of preventing/mitigating the risks/impacts associated with these environmental topics?
4. How does the company assess progress in preventing/mitigating the risks/impacts associated with the following environmental topics?
4.1. For each environmental topic in which the company sets timebound goals / targets, what kind of targets has the company set?
4.2. For each environmental topic in which the company sets timebound goals / targets, how is progress against target / goal tracked?
Optional commentProgress on sustainability metrics are quarterly reported to the Sustainability and Corporate Social Responsibility Committee at the Board and annually to all external and internal stakeholders through the release of Sustainability Report.5. In the course of the reporting period, has the company been involved in providing or enabling remedy for any actual impacts associated with the following environmental issue(s)?
Climate Action
6. What were the company’s gross global greenhouse gas emissions for the reporting period?
Scope 2 Emissions
Scope 3 Emissions
Optional commentCategories include: Category 1: Purchased Goods and Services, 52.5%; Category 3: Fuel-and-Energy-Related Emissions, 2.8%; Category 4: Upstream Transportation, 5.4%; Category 5: Waste Generated in Operations, 0.3 %; and Category 10: Processing of Sold Goods, 38.9 %7. What percentage of the company's revenue was invested in R&D of low-carbon products/services during this reporting period?
8. Has the organization acted to support climate change adaptation and resilience?
Optional commentWe work with growers in our supply chain to identify and implement sustainable and regenerative farming practices that can reduce environmental impact, sequester carbon in the soil, and improve on-farm economics and labor conditions. We are also funding projects for climate change adaptation and resilience through ADM Cares. In 2021, we and Aid for social protection program Foundation Vietnam (AFV) collaborated to support low-income farm households in overcoming the negative impacts from droughts and saltwater in Mo Cay Nam District, Ben Tre Province. Many families living in the Mekong Delta, and in the Mo Cay Nam district in particular, are negatively affected by a lack of clean water. The salinity of the Ham Luong river continues to increase rapidly leading to soil salinization, threatening agriculture and human health. ADM Cares has donated and supported the installation of water tanks for 218 households to strengthen their climate change resilience. These water tanks can hold up to 2 cubic meters of water, which is enough to cover the needs of one person for four weeks. Clean, fresh water is pumped directly to these tanks from drilled wells or from rain. The project also provided education to farmers and the community on water management, tank maintenance, child nutrition and gender equity.Energy / Resource Use
9. Please report the company's renewable energy consumption as a percentage of total energy consumption in the reporting period.
Optional commentThe above statistics includes energy generated from renewable fuel consumption.Technology
10. What percent of the company's revenue came from environmentally friendly products / services during this reporting period?
Sector-specific Questions
11. Which sector(s) does the company operate in? If diversified, choose top 3 by revenue.
Sector-specific: Water
12. Please provide details regarding the company's water withdrawal and consumption (own operations) during the reporting period.
Water withdrawal (volume of water in megaliters):
Water consumption (volume of water in megaliters):
Optional commentTotal water withdrawal volume includes third-party(municipal) water supply at our locations (39,400 megaliters)13. Please provide details about the company’s water intensity of products in regions with high or extremely high water stress.
Optional commentWe measure water intensity as cubic meter/ ton of product produced. 2021 water intensity is calculated as 2.48 cubic meter/ ton of product produced.Sector-specific: Forest, biodiversity, and land use
14. Please report the number and area (in hectares) of sites owned, leased, or managed by the company in or adjacent to protected areas and/or key biodiversity areas (KBA).
15. What area (in hectares) of natural ecosystems was converted during the reporting period in areas owned, leased, or managed by the company?
16. Is the company supporting or implementing project(s) focused on ecosystem restoration and protection?
Overall Environment
21. Briefly describe practical actions the company has taken during the reporting period and/or plans to take to implement the environment principles, including any challenges faced and actions taken towards prevention and/or remediation.
We have taken many actions during the reporting year. All programs and efforts are summarized in page 21 to 37 of 2021 Sustainability Report (https://www.adm.com/globalassets/sustainability/sustainability-reports/pdfs/4019111_11_archer-daniels-midland_esg_clean-compressed.pdf). We also publish bi-annual progress reports to share details of our programs with respect to the implementation of " Policy to Protect Forests, Biodiversity and Communities" and annual progress report summarizing our programs with respect to the implementation of " Human Rights Policy". All progress reports can be found here: https://www.adm.com/en-us/sustainability/sustainability-reports/.Anti-corruption
Commitment
1. Does the company have an anti-corruption compliance programme?
2. Does your company have policies and recommendations for employees on how to act in case of doubt and/or in situations that may represent a conflict of interest, e.g. with regard to gifts and hospitality, donations, sponsorship, or interactions with public officials?
Prevention
3. Who receives training on anti-corruption and integrity?
3.1. How often is such training provided?
4. Does the company monitor its anti-corruption compliance programme?
Response and Reporting
5. Please report the company's total number and nature of incidents of corruption during the reporting year.
Optional commentIn 2021, we received a total of 1077 reports, concerning topics such as employee relations, environmental, health and safety (EHS), diversity, equal opportunity and respect in the workplace, and misuse or misappropriation of assets or information.6. Within the reporting period, what measures has the company taken to address suspected incidents of corruption independently or in response to a dispute or investigation by a government regulator?
Optional commentIn 2021, we received a total of 1077 reports, concerning topics such as employee relations, environmental, health and safety (EHS), diversity, equal opportunity and respect in the workplace, and misuse or misappropriation of assets or information.7. Does your company engage in Collective Action against corruption?
8. Briefly describe practical actions the company has taken during the reporting period and/or plans to take to implement the anti-corruption principle, including any challenges faced and actions taken towards prevention and/or remediation.
Details about our Compliance and Ethics program can be found in page 40-41 of 2022 Sustainability Report (https://www.adm.com/globalassets/sustainability/sustainability-reports/pdfs/4019111_11_archer-daniels-midland_esg_clean-compressed.pdf).