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Archer Daniels Midland

Member since May 2015

Introduction

Archer Daniels Midland Company (ADM) is one of the world’s largest agricultural processors and food ingredient providers. With a global value chain that includes approximately 500 crop procurement locations, 270 ingredient manufacturing facilities, 44 innovation centres and the world’s premier crop transportation network, ADM connects the harvest to the home, making products for food, animal feed, industrial and energy uses.

Objectives

ADM is committed to building traceable and transparent agricultural supply chains that protect forests worldwide. Earthworm Foundation supports ADM to implement their No Deforestation and No Exploitation Policy for their palm supply chain. ADM has achieved high levels of transparency and traceability within its palm supply chain, including high traceability to mill and a public grievance mechanism. ADM is currently focused on building plantation traceability, strengthening non-compliant supplier processes, and supporting transformation projects within Malaysia and Indonesia supply chains.

Key Stats

Global Traceability to Mill: 99.7% for PKO, 98.6% for PO
Global ART Scores: 64% for PKO, 40% for PO
Established a Grievances and Resolutions Mechanism, including a public procedure and a public log to report on grievance issues in ADM’s supply chain.

Our work

As a mid-tier palm supplier, ADM does not own plantations or mills, and does not buy directly from palm oil plantations. As a result, ADM relies on engagement and collaboration with their direct suppliers to implement the company’s No Deforestation and No Exploitation Policy throughout their supply chain. ADM has proactively supported on-the-ground engagement in Malaysia and Indonesia in collaboration with other Earthworm Foundation members, including through multi-member initiatives. ADM is also working to strengthen their grievance response and engagement protocol for non-compliant suppliers.

The initial focus of ADM’s transformation engagement has been in Sabah, Malaysia, where they collaborated with Wilmar and Nestlé to convene a pioneering multi-stakeholder consultation on children in palm plantations. ADM is now funding follow-up actions identified during this meeting, including socialisation of consultation findings to government, NGOS, and other stakeholders; and facilitating businesses to partner with NGO programmes offering services for vulnerable children. Also in Sabah, ADM is supporting Rurality work on alternative rural livelihoods for smallholders. Additionally, ADM is now identifying opportunities to expand transformation to their Indonesia supply chain, including supporting an independent monitoring project through Kumacaya, and Earthworm Foundation’s Landscapes programme.

News & Stories

Aug 13, 2019

Earthworm Foundation publishes first-ever directory to reduce risk of child labour in palm oil supply chains of Sabah, Malaysia

May 15, 2019

How companies can access services to aid plantation children in Sabah, Malaysia

Jul 12, 2018

Convening government and NGOs on the matter