MASHINIi

Archer-Daniels-Midland Company.

ADM.US | Manufacture of grain mill products

Archer-Daniels-Midland Company (ADM) is a global leader in agricultural processing and food ingredient solutions. The company operates through various segments, including Ag Services and Oilseeds, Carbohydrate Solutions, and Nutrition. ADM procures, transports, stores, processes, and merchandises ag...Show More

Ethical Profile

Mixed.

Archer-Daniels-Midland (ADM) presents a mixed ethical profile. Early 2024 brought disclosures of accounting irregularities, with Nutrition segment profits allegedly overstated by up to 10%, leading to a CFO suspension and DOJ investigation. The company has faced nearly $52 million in environmental fines over a decade, including Clean Air Act and safe drinking water rule violations. Worker safety concerns include a 2023 Decatur plant explosion injuring eight, and OSHA citations for neglected safety systems. Supply chain allegations include prison labor, forced labor in Xinjiang, and child labor. Despite this, ADM, recognized as a World's Most Ethical Company for four years, commits to anti-corruption and aims to eliminate deforestation by 2025.

Value Scores

Better Health for All-20
-100100
Fair Money & Economic Opportunity0
-100100
Fair Pay & Worker Respect0
-100100
Fair Trade & Ethical Sourcing-30
-100100
Honest & Fair Business-30
-100100
Kind to Animals0
-100100
No War, No Weapons-20
-100100
Planet-Friendly Business-20
-100100
Respect for Cultures & Communities0
-100100
Safe & Smart Tech0
-100100
Zero Waste & Sustainable Products-30
-100100

Better Health for All

-20

ADM has been fined almost $52 million over the past decade for 90 violations of federal and state laws, including environmental offenses.

1
The U.S. Environmental Protection Agency (EPA) found unaddressed violations of the Clean Air Act at ADM's Nebraska plant since July 2021, which affected air quality.
2
In September 2024, ADM violated federal safe drinking water rules and its underground injection permit at an Illinois carbon capture project, where carbon dioxide leaked into unauthorized zones.
3
The company failed to follow emergency response plans and monitoring protocols, and this incident raised safety concerns among local communities.
4

Fair Money & Economic Opportunity

0

Archer-Daniels-Midland Company (ADM) operates primarily in agricultural processing and food ingredient solutions, not financial services. Consequently, KPIs related to consumer lending, deposit services, financial product pricing, customer data, lending compliance, debt burden, and financial literacy programs are not applicable to ADM's core business model. The company's community investments, such as a $10,000 donation to the Midtown Educational Foundation

1
, a $2 million commitment to organizations in Decatur, Illinois
2
, $7,000 for local agricultural programs
3
, and funding for infrastructure in Côte d'Ivoire
4
, are general philanthropic or community development initiatives. These do not fall under the rubric's definition of "reinvestment in community finance" or "profit-sharing with underserved communities" which specifically pertains to financial services or direct financial empowerment programs.

Fair Pay & Worker Respect

0

ADM reported a Total Recordable Incident Rate (TRIR) of 0.73 in 2022.

1
However, the company has faced multiple safety challenges and violations. In 2023, OSHA cited ADM and proposed penalties totaling $324,796 for ignored safety system inspections following an explosion at its Decatur plant.
2
This incident was one of four significant accidents at the facility that year, injuring multiple employees.
3
In 2024, ADM faced legal action due to another explosion at its West Plant in Decatur, highlighting safety inspection failures.
4
Over the past decade, ADM has incurred nearly $52 million in fines for 90 violations, including those related to safety and employment laws.
5

Fair Trade & Ethical Sourcing

-30

ADM has faced two substantiated findings of forced labor within the last three years. In 2024, the company was reported to have sourced soy, corn, and wheat from prison labor programs where incarcerated individuals alleged forced labor conditions

1
. Additionally, in 2023, reports indicated ADM held a significant stake in two food-processing plants in Xinjiang, China, associated with forced labor
2
. The company's human rights policies prohibit forced, bonded, or child labor, but do not explicitly ban prison labor
3
.

Honest & Fair Business

-30

Archer-Daniels-Midland Company (ADM) is facing a securities class-action lawsuit for allegedly making false statements about its Nutrition segment.

1
This follows an internal investigation, prompted by an SEC document request, which revealed that intersegment sales were not at market values.
2
The company subsequently restated six years of financial statements due to overstated profits in its Nutrition division by up to 10% from improper internal accounting practices.
3
This led to the suspension of its CFO
4
and a criminal investigation by the U.S. Department of Justice
5
, causing a significant decline in stock price
6
. Despite these issues, ADM has a formal policy of zero tolerance for corruption
7
, supports international frameworks
8
, and has implemented management systems including risk assessments, internal checks and balances, and communication channels for reporting concerns
9
. The company also incurred a $20,000 penalty in June 2023 from Iowa state authorities for exceeding air quality standards at its Des Moines soybean plant
10
and was found by the U.S. EPA to have violated safe drinking water regulations in September 2024
11
.

Kind to Animals

0

ADM has engaged in several initiatives related to animal welfare and biodiversity. In 2023, ADM formed a strategic partnership with New Culture to develop and commercialize animal-free mozzarella

1
. The company contributed $1 million to the E.O. Wilson Biodiversity Foundation in 2023 for biodiversity research and education
2
. By December 2023, nearly 2 million acres were allocated to ADM's regenerative agriculture programs, which aim to protect biodiversity
3
. A 2021 policy commits ADM to eliminate deforestation from its supply chains by 2030, with provisions to promote biodiversity
4
. In 2024, ADM collaborated with the Asia Animal Foundation on an Animal-Friendly Campus initiative in China, promoting TNR activities and donating 2,100 kilograms of cat food for stray animals
5
. In 2015, ADM donated PLN 53,000 to the Polish Society for Bird Protection for habitat conservation
6
. ADM's Animal Nutrition division also partners with the University of Illinois for research focused on improving the well-being of companion animals
7
. However, a 2016 class-action lawsuit alleged that ADM's horse feed was contaminated, leading to horse deaths
8
.

No War, No Weapons

-20

ADM has no direct military business activities or direct military involvement, although historical connections to industrial uses including munitions are noted.

1
The company's operations in Ukraine and Russia are limited to essential food commodities and ingredients
2
, with facilities in Ukraine idled since February 24, 2022, due to the conflict
3
, demonstrating careful handling in volatile regions. ADM was recognized as a Military Friendly Employer in 2024
4
. The company's human rights policies prohibit forced labor but do not explicitly address prison labor
5
, leading to concerns about purchasing raw goods from prison farms
6
.

Planet-Friendly Business

-20

ADM achieved an 86.1% waste diversion rate by the end of 2023, working towards its 2035 goal of 90%.

1
By 2023, 6.4% of ADM's operational energy was derived from renewable sources, as part of a commitment to increase low-carbon energy use to 25% by 2035.
2
ADM's "Strive 35" plan aims for a 25% absolute reduction in Scope 1 and 2 GHG emissions from a 2019 baseline by 2035, having achieved a 14.7% reduction by December 2023.
3
It also targets a 25% reduction in Scope 3 emissions, with a 7.7% reduction achieved.
4
The company aims to reduce water withdrawal by 10% by 2035, having achieved a 4.2% reduction.
5
Regenerative agriculture efforts, including a partnership with PepsiCo launched in 2022, covered nearly 2 million acres within ADM's supply chain by December 2023, sequestering approximately 263,700 metric tons of CO2 and reducing emissions by 310,000 metric tons.
6
ADM committed to eliminating deforestation from all supply chains by 2025 and habitat conversion in high-risk South American areas for direct suppliers by 2025 and indirect suppliers by 2027.
7
An investment in carbon capture and storage at its Decatur, Illinois site was paused in October 2024 due to a potential underground leak, with further tests ongoing.
8

Respect for Cultures & Communities

0

The provided articles describe ADM's general commitments to human rights, diversity, and community support, including a zero deforestation policy

1
and social investment programs
2
. However, no specific, quantifiable data points were found that directly align with the precise metrics and thresholds defined in the rubric for 'Respect for Cultures & Communities' KPIs. For instance, while grievance mechanisms are mentioned
3
, their coverage percentage is not provided. Community contributions are stated in absolute dollar amounts
4
,
5
, not as a percentage of revenue, and are not explicitly defined as formal partnerships with indigenous groups. Policies are mentioned
6
, but not specific actions or outcomes related to cultural site protection or incident resolution times. Therefore, no KPIs could be scored based on the strict evidence requirements.

Safe & Smart Tech

0

No evidence available to assess Archer-Daniels-Midland Company on Safe & Smart Tech.

Zero Waste & Sustainable Products

-30

ADM reported an 86.1% landfill diversion rate as of December 31, 2023.

1
The company has set a target to achieve a 90% landfill diversion rate by 2035 as part of its 'Strive 35' plan.
2
ADM has implemented several waste reduction initiatives, including a sustainable water management program at its Decatur corn plant, which conserves 150 million gallons annually and achieves $1 million in operational savings.
3
Furthermore, ADM applies circular design principles by developing and producing biobased materials such as FDME, lactic acid, polylactic acid (PLA), and propylene glycol (PG) from renewable sources like corn starch, which serve as sustainable alternatives to petroleum-based products in various applications including packaging, textiles, and plastics.
4

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AI-generated analysis based on publicly available data. Not financial advice. Ratings are expressions of opinion derived from automated models and may contain inaccuracies. See our Risk Disclosure for full details.