Third-Party Assessment on No-Conversion
Assessment on No-Conversion
We are fully committed to combating the effects of climate change and protecting our planet and the communities in which we operate.
Third-Party Assessment on No-Conversion
In keeping with our promise to elimante deforestation from all our agricultural supply chains by 2025, in 2023, ADM engaged an independent group of experts to assess the potential climate impact of both deforestation and conversion of primary native vegetation linked to its commodity supply chains in South America. This information is crucial to determine the feasibility of creating a commodity sourcing policy that is focused on addressing primary native vegetation conversion in our South American supply chains.
The Landscape
ADM and independent experts conducted a thorough assessment of the South American landscape, where over one-third of the land remains covered by forests or other types of native vegetation. The goal was to calculate the carbon emissions associated with potential land conversion of forested areas considered suitable for agriculture, and identify areas already cleared which could poentially become farmland.
More information about the assessment results can be found here.
ADM 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.
Our Commitment to Conversion-Free Supply Chains in South America
Based on the results of this study and our commitment to deforestation-free supply chains, ADM has determined that it is feasible to amend its Policy to Protect Forests, Commodities and Biodiversity to address conversion of primary native vegetation in South America, and we are committing to an expedited timeline to ensure our supply chains in South America are free of conversion by December 2025.
As part of this commitment, ADM will have verified direct supply chains free of conversion of primary native vegetation in high-risk areas in South America the end of 2025 and verified indirect supply chains free of conversion of primary native vegetation in the same high-risk areas by 2027, utilizing a cut-off date of 2025 for both direct and indirect suppliers.
ADM has utilized the assessment to determine the areas of highest risk for primary native vegetation conversion in its South American supply chains: The Brazilian Amazon, the Brazilian Cerrado, and the Paraguayan and Argentinian Chaco. The Pantanal, although not at high risk for primary native vegetation conversion, is an area of biodiversity and conservation value that ADM will include in its no-conversion policy. Although ADM does not currently have significant volumes in other assessed biomes that are at lower risk for primary native vegetation conversion, ADM will continue to evaluate and update its policy and data from other biomes in South America.
Upon amendment of the Policy to Protect Forests, Commodities and Biodiversity, ADM engaged its suppliers to explain the requirements of the no-conversion commitments. Since 2021, ADM has been monitoring conversion of primary native vegetation in the Brazilian Cerrado and has expanded its monitoring annually. This assessment reveals opportunity for degraded land (typically previously utilized as pastureland) to be utilized for farming, and ADM will continue to work with farmers, governments and the agriculture sector to incentivize expansion into suitable degraded landscapes in South America.
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