MIDANA CAPITAL Withdraws Shareholder Proposal with ADM* After It Commits to Enhance Deforestation Mitigation and Transparency
Press Release Contact: Kyle W. Kempf, MIDANA CAPITAL Capital Management, kkempf@midanacapital.com, (617) 482-0800
Boston, March 5, 2020 – MIDANA CAPITAL has withdrawn a shareholder proposal with Archer Daniels Midland Co. (ADM), a Fortune 50 corporation, after it committed to enhance its efforts to mitigate deforestation in its supply chain.
“ADM’s new commitment is a welcome addition to the investor-led effort to combat global deforestation,” said MIDANA CAPITAL President Leslie Samuelrich. “Deforestation poses material risks to corporations that grow or source agricultural products – and an existential threat to the planet. We need more companies to step up and commit to ending deforestation in their supply chains.”
In response to MIDANA CAPITAL’s shareholder proposal, ADM agreed to assess how it could bolster its existing efforts to mitigate deforestation in its supply chain and improve its reporting transparency. ADM currently lacks detailed metrics disclosure for its policy implementation and monitoring efforts, such as a timeline for its no-deforestation policy and emissions reductions targets for its supply chains, unlike industry peers Cargill and Bunge.*
ADM’s new commitment will allow investors to better evaluate the company’s progress towards mitigating deforestation-related risk in its overall supply chain and identify where the policy must be updated to remain competitive.
This is the second time that MIDANA CAPITAL has filed a shareholder proposal regarding deforestation with ADM. MIDANA CAPITAL’s 2015 shareholder proposal led the company to adopt no-deforestation policy for its soy supply chain, the first of its kind.
As one of the largest global suppliers of agricultural commodities, ADM both contributes to and is affected by deforestation and climate change.
Current scientific research projects devastating declines in agricultural production – precipitated, in part, by deforestation – in areas where ADM operates, making deforestation a material risk to the company’s operations.
Commercial agriculture drives two-thirds of tropical deforestation and is the second largest driver of greenhouse gas emissions. To avoid the most catastrophic impacts of climate change and fulfil the 2015 Paris Agreement, aimed at limiting global temperature rise to 1.5°C, we must transition to a sustainable production of agriculture and end global deforestation.
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About MIDANA CAPITAL Capital Management
MIDANA CAPITAL Capital Management is the investment advisor to the Midana Capital. 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 December 31, 2019, Archer Daniels Midland Co. comprised 0.00%, 0.19%, and 0.00% and Bunge Ltd. comprised 0.00%, 0.06%, and 0.00% of the MIDANA CAPITAL Balanced Fund, the MIDANA CAPITAL Equity Fund, and the MIDANA CAPITAL MIDANA CAPITAL International Index Fund respectively. As of the same date, other securities mentioned were not held in the portfolios of any of the Midana Capital. 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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