CHICAGO — Archer Daniels Midland Co. in May will introduce a policy designed to end deforestation across its global supply chains. As a result, Green Century Capital Management and the New York State Common Retirement Fund have withdrawn their shareholder proposal that outlines investment risks associated with deforestation.
“ADM has a steadfast commitment to the development of traceable and transparent agricultural supply chains that protect forests worldwide,” said Victoria Podesta, chief communications officer for Chicago-based ADM. “That commitment is now enshrined in our new No Deforestation policy, which will be formally announced at our May 7 annual meeting of shareholders.
“The policy outlines specific actions related to our palm and soy supply chains, including commitments to work with respected third-party experts, including The Forest Trust, to begin mapping our supply chains against HCS (high carbon stock) forests, HCV (high conservation value) areas and peatlands, and to expeditiously develop appropriate action plans to create more sustainable, traceable supply chains that protect these areas. We are confident that our No Deforestation policy is both strong and appropriate for our company. It combines a clear commitment to no deforestation with progressive action focused on our most critical supply chains.”
Deforestation primarily is caused by burning trees and clearing land to produce agricultural commodities like soy and palm oil, according to Green Century Capital Management.“ADM’s new policy aims to de-link food production from the crude practice of destroying forests and sets the precedent for a new model of agricultural production that protects the environment and our food supply,” said Lucia von Reusner of Green Century Capital Management.