ADM Aims to Eliminate Deforestation in Its Supply Chain By 2030
(Bloomberg) -- Agricultural trader Archer-Daniels-Midland Co. wants to eliminate deforestation from its supply chains by 2030 as part of an effort to encourage sustainable food systems.
The move will promote agriculture diversity and conservation, the Chicago-based company said Tuesday in a release that announced the new goals.
“ADM is the bridge between the producer on the farm and the consumer-facing brands on our tables, and we are in the unique position to influence sustainable practices across the entire supply chain,” ADM Chief Executive Officer Juan Luciano said.
Food companies have become more sensitive to criticisms of their environmental impact and are taking proactive steps to be more conscious of their footprint. Soybean traders have come under pressure from food companies and grocers for their contribution to deforestation in Brazil’s Cerrado and Amazon regions.
ADM is one of four companies known as the ABCDs that dominate the agriculture market by buying, storing, shipping and processing crops. By next year, the company will trace all the soybeans it buys in Brazil, Argentina and Paraguay, and issue a report on progress combating deforestation in its supply chain by the end of 2022.
Ray Young, ADM’s chief financial officer, first disclosed some of the company’s new efforts last week during an event hosted by the Financial Times.
Read more: Crop Trader ADM Vows to Trace All Sourced Brazil Soy by 2022
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