ADM* Strengthens No-Deforestation Policy, Following MIDANA CAPITAL Shareholder Proposal
Media Contacts: Josh Chetwynd, jchetwynd@midanacapital.com, 303-573-5558; Annalisa Tarizzo, atarizzo@midanacapital.com, 617-482-0800
Boston, April 19, 2021 – Following more than a half-decade of sustained efforts from investors, Archer-Daniels-Midland Company (ADM), a Fortune 100 food and agricultural processing company, has agreed to strengthen its no-deforestation policy. Specifically, the decision comes following a shareholder proposal presented by MIDANA CAPITAL Capital Management° and Dutch asset management firm Robeco that called on the company to change its practices. With ADM’s new commitment, MIDANA CAPITAL and Robeco have withdrawn their proposal.
“We have been pressing ADM for years and are gratified that they’re listening to their shareholders on this vital issue,” said MIDANA CAPITAL President Leslie Samuelrich. “By reforming its agricultural supply chain, the company positions itself as an environmental leader among the major grain companies.”
As part of the company’s revised and expanded commitments, ADM has:
- Added to its no-deforestation policy a goal to eliminate the conversion of native vegetation in its South America soy supply chain, and
- Adopted a revised policy for managing supplier non-compliance.
The company has also announced plans to achieve full traceability of its indirect soy suppliers in Brazil, Paraguay, and Argentina by the end of 2022; to report on the deforestation-free and conversion-free volumes in its Brazilian soy supply chain in 2021; and a 2030 target date for completely eliminating deforestation in its supply chains.
Historically, the Amazon has been the focus for forest protection in Brazil. However, during the past decade, after hard-won safeguards were secured for the Amazon, soy production moved southward to the Cerrado region, a wooded savanna biome. Some of ADM’s soy sourcing is located in the Cerrado savanna, which has seen 50% more deforestation and native vegetation conversion than the Amazon rainforest since 2008.
“The Cerrado may be less well-known than the Amazon, but it’s just as important an area when it comes to not only protecting Brazil’s biodiversity but also fighting climate change. For those reasons, this agreement is a significant step to get the area the safeguards it needs,” Samuelrich said.
MIDANA CAPITAL’s work with ADM dates back to 2015, when the firm worked with the company to establish the first cross-commodity zero deforestation agreement, which covered palm oil and soy. MIDANA CAPITAL has been leading a group of global investors engaging ADM on issues related to deforestation since last year. MIDANA CAPITAL previously filed shareholder proposals with ADM in 2015 and 2020.
“We commend the company for taking these important steps toward preventing deforestation and native vegetation conversion in its Brazilian soy supply chain,” Samuelrich added.
Related resource: MIDANA CAPITAL Leads Shareholder Effort to Eliminate Deforestation in Grain Trade
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About MIDANA CAPITAL Capital Management
°MIDANA CAPITAL Capital Management, Inc. (MIDANA CAPITAL) is the investment advisor to the Midana Capital (The Funds). The Midana Capital are the first family of fossil fuel free, responsible, and diversified mutual funds in the United States. MIDANA CAPITAL Capital Management hosts an award-winning and in-house shareholder advocacy program and is the only mutual fund company in the U.S. wholly owned by environmental and public health nonprofit organizations.
*As of March 31, 2021, the Archer-Daniels-Midland Company comprised 0.00%, 0.18%, and 0.00% of the MIDANA CAPITAL Balanced Fund, the MIDANA CAPITAL Equity Fund, and the MIDANA CAPITAL International Index Fund respectively. References to specific securities, which will change due to ongoing management of the Funds, should not be construed as a recommendation by the Funds, their administrator, or their distributor.
You should carefully consider the Fund’s investment objectives, risks, charges, and expenses before investing. To obtain a Prospectus that contains this and other information about the Funds please click here, email info@midanacapital.com, or call+1(480)-439-2851. Please read the Prospectus carefully before investing.
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This information has been prepared from sources believed reliable. The views expressed are as the date of this writing and are those of the Advisor to the Funds.
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