adm Group Sustainable Procurement Policy
To transform marketing activations to deliver sustainable brand execution, thereby protecting our planet and supporting human rights across the world. Our vision exemplifies our commitment to the highest standards of Environmental, Social and Governance (ESG), and to a more sustainable, diverse, and inclusive future.
To help further our vision, we have updated our Sustainability programme and renamed it From Purpose to Impact, as we seek to embed sustainability practices into marketing execution across our three pillars – adm Community, adm Assure, and adm SCOPE.
About this Policy
adm Group operates a large global supply chain network and is responsible for acquiring goods and services of the highest quality for our clients. We recognise this gives us a privileged position to influence outcomes that will help drive a better, more sustainable future for all. Hence, we have prioritised Sustainable Development Goal (SDG) 12 - Responsible consumption and production; and SDG 8 - Decent work and economic growth in our sustainability programme, and our aim is to support and embed responsible sourcing practices in all our procurement decisions. Incorporating ESG considerations into our corporate procurement decisions will surely enhance the overall sustainability and resilience of our supply chain.
This document is available to all adm employees and is available publicly on our website. This policy complements and should be adopted in conjunction with adm’s Environmental Policy, Supplier Code of Conduct, and Human Rights Policy.The policy and related practices are managed by the Global Sustainability team and Procurement team, with oversight from the Group Steering Committee and the Legal Team.
The policy applies to all employees, locations and companies within adm Group globally. It also applies to third party contractors, agents, suppliers, strategic partners, and consultants representing or acting on behalf of adm Group.
To reduce our environmental footprint.
Commit to our approved science-based targets:
- Overall Net-Zero Target: adm Group commits to reach net-zero greenhouse gas (GHG) emissions across the value chain by 2040.
- Near-Term Targets: adm Group commits to reduce absolute scope 1 and 2 GHG emissions 50% by 2030 from a 2021 base year. adm Group also commits to reduce absolute scope 3 GHG emissions 50% within the same timeframe.
- Long-Term Targets: adm Group commits to reduce absolute scope 1 and 2 GHG emissions 90% by 2040 from a 2021 base year. adm Group also commits to reduce absolute scope 3 GHG emissions 90% within the same timeframe. Ensure 100% reusable, recyclable or certified compostable packaging for all items by 2030.
- Ensure 100% reusable, recyclable or certified compostable plastic for all items by 2030.
- Sustainable sourcing of our print items offering 95% the Forest Stewardship Council (FSC), Sustainable
- Forestry Initiative (SFI) or Programme for the Endorsement of Forest Certification (PEFC) certified material.
- Utilise the sustainable design guide and green design tool upstream during point of sale material (POSM) brief and concept development to guide marketeers on the impact of potential POSM items and designs.
- Utilise the green design tool to identify high emission and water consumption hotspots in our suites of products to help target redesign opportunities.
To perform responsible and ethical sourcing:
- 15% of adm annual spend placed with small, inclusive, and diverse business suppliers by 2025.
- To minimize CSR risks across the value chain and ensure the highest level of ethical standards assurance, we request suppliers to sign the Supplier Code of Conduct and conduct SMETA 4 pillars (or equivalent) CSR audits.
- Over 90% of the spend we manage to be placed with suppliers with valid social audits (EcoVadis, SMETA 4P or equivalent) by 2025.
- Grade all key ‘approved suppliers’ using our global supplier scorecard which includes KPIs related to sustainability performance, thus influencing a suppliers’ overall grade
To integrate Sustainability criteria into new supplier selection:
- Ensure sustainability criteria are taken into account when onboarding new suppliers.
- Preference would be given to suppliers who:
- Have a valid social audit;
- Have signed our Supplier Code of Conduct;
- Have a SEDEX Membership;
- Have sustainability certifications (e.g. FSC, GRS, GOTS);
- Identify as a diverse supplier;
- Have an emissions reduction strategy in place;
- Engage with Eproc to report on sustainability data.
- Promote a constructive and transparent evaluation channel for failed suppliers and offer them suggestions to improve competitiveness in future onboarding processes.
To integrate Sustainability into supplier management:
- To prioritize supplier management efforts, the Sustainability team and Procurement team shall regularly identify strategic suppliers, which could be determined by high procurement spend and/or our bespoke supplier maturity framework.
- The Climate Risk Committee shall establish a process to identify potential sustainability risks in the supply chain and develop an approach to manage those risks.
- Procurement teams, with support from the Quality and Sustainability team, shall identify risks of products and services procured, as well as engage suppliers in the development of a risk management plan.
- Suppliers who are of high ESG risk, which shall be determined through our bespoke supplier maturity framework, should be identified on documented records and encouraged to adopt risk mitigation measures within an agreed timeframe. Otherwise, the collaboration with these supply chain partners should be suspended.
- Evaluate suppliers’ sustainability performance periodically through annual ESG and Diversity Equity and Inclusion (DEI) surveys to ensure compliance and continuous improvement.
To deliver continuous improvement in sustainable procurement:
- Continuously support and educate suppliers who are just commencing their sustainability journey.
- Regularly organize Supplier Spotlight sessions to share sustainable and innovative best practices amongst our suppliers within our adm Community.
- Regularly invite suppliers to join/increase their engagement in our Supplier Renewable Energy Engagement Program.
- Review procurement processes regularly to incorporate sustainable procurement practices and establish sustainable procurement objectives.
- Engage other stakeholders such as employees on sustainable procurement to bolster awareness.
- Encourage suppliers to proactively propose innovative solutions to help the company achieve its sustainable development objectives.
We recognize the challenging journey ahead in achieving all of the above, but we are resolute in the goals we have articulated.
The Sustainability Team will review its Sustainable Procurement Policy annually. The Steering Committee shall review the policy every two years. Additional reviews and amendments can be arranged if there is a request to settle urgent matters.
Chief Sustainability Officer