Revolutionary strategic partnership between two
global companies, with footprints extending from the farm gate to
iconic foods and beverages, provides unprecedented and unique
opportunity to expand regen ag at scale
ADM (NYSE:ADM), a global leader in sustainable agriculture and
nutrition, and PepsiCo (NASDAQ: PEP) today announced a
groundbreaking 7.5-year strategic commercial agreement to closely
collaborate on projects that aim to significantly expand
regenerative agriculture across their shared North American supply
chains. This strategic partnership is expected to reach up to 2
million acres by 2030, and represents a trailblazing effort by two
global companies that share ambitious carbon reduction goals. The
companies’ capabilities span the food and agriculture value chains,
creating a unique, large-scale platform to support farmers’
transition to regenerative agriculture, while building their
resilience to climate change.
This press release features multimedia. View
the full release here:
https://www.businesswire.com/news/home/20220914005942/en/
The long-term agreement will initially enroll corn, soy and
wheat farmers across Kansas, Minnesota, Iowa, Illinois, Indiana and
Nebraska, with the opportunity for future expansion, to increase
visibility across the value chain and integrate a range of
multi-year farmer-first regenerative agriculture initiatives,
including cover crops, reduced tillage, nutrient management,
diverse rotations, and responsible pesticide use. The companies
plan to share resources and collaborate to create value throughout
the supply chain by providing participants with technical and
financial assistance, offering access to peer regenerative farming
networks, hosting educational field days, and tracking results
using trusted, third-party measurement systems.
Reaching the strategic partnership’s goals could eliminate 1.4
million metric tons of greenhouse gasses – equivalent to the amount
of electricity used to power 275,000 homes per year – at the farm
level, while creating meaningful shared value directly for
farmers.
“Building a better food system is essential to the future health
of the earth and all of us,” said Jim Andrew, Chief Sustainability
Officer, PepsiCo. “At its core, PepsiCo is an agricultural company,
working to spread regenerative agriculture practices that restore
the earth and reduce carbon emissions to 7 million acres by 2030.
This partnership with ADM marks a sea change in how PepsiCo engages
with strategic partners and is expected to help us reach almost
one-third of that goal. By enabling greater collaboration through
strategic partnerships like this one, we can strengthen the
livelihoods and resilience of the farmers we work with, while
building a more sustainable future together.”
“Sustainability is fundamental to ADM: Our growth strategy is
underpinned by demand for more sustainable products, and our
culture compels us to act,” said ADM Chief Sustainability Officer
Alison Taylor. “Last year, we expanded on our Strive 35
sustainability goals with a commitment to reduce our Scope 3
emissions by 25% by 2035, and expanding regenerative agriculture
practices – as we have with our recent strategic partnerships with
the National Fish and Wildlife Foundation and Farmers Business
Network – will be key to reaching that goal. Today’s announcement
is a major step forward, as we work with a partner whose values
align with our own to scale up regenerative agriculture in a way
few other companies can. We’re excited to take the next big step in
reducing carbon and making our entire food system more
sustainable.”
pep+ is PepsiCo’s strategic, end-to-end business transformation
with sustainability and human capital at the center of how the
company will create growth and value. As part of those ambitions,
the company is working to spread regenerative practices across 7
million acres of land by 2030 — an area approximately equal to its
entire agricultural footprint – and striving to achieve net-zero
emissions by 2040.
ADM’s Strive 35 sustainability goals include reducing absolute
greenhouse gas emissions by 25%, energy intensity by 15%, water
intensity by 10%, and achieving a 90% landfill diversion rate by
2035 against a 2019 baseline. In 2021, ADM additionally committed
to a new, aggressive environmental goal to reduce Scope 3
greenhouse gas emissions 25% by 2035 while accelerating its target
date to achieve a completely deforestation-free supply chain from
2030 to 2025. The company has also committed to work with the
Science Based Targets Initiative with the aim of obtaining approval
of its climate targets and alignment with ambitious global goals to
limit rising temperatures to 1.5 degrees Celsius.
About ADM
ADM unlocks the power of nature to enrich the quality of life.
We’re a premier global human and animal nutrition company,
delivering solutions today with an eye to the future. We’re blazing
new trails in health and well-being as our scientists develop
groundbreaking products to support healthier living. We’re a
cutting-edge innovator leading the way to a new future of
plant-based consumer and industrial solutions to replace
petroleum-based products. We’re an unmatched agricultural supply
chain manager and processor, providing food security by connecting
local needs with global capabilities. And we’re a leader in
sustainability, scaling across entire value chains to help
decarbonize our industry and safeguard our planet. From the seed of
the idea to the outcome of the solution, we give customers an edge
in solving the nutritional and sustainability challenges of today
and tomorrow. Learn more at www.adm.com.
ADM Cautionary Statement
Some of the above statements constitute forward-looking
statements. ADM’s filings with the SEC provide detailed information
on such statements and risks, and should be consulted along with
this release. To the extent permitted under applicable law, ADM
assumes no obligation to update any forward-looking statements.
About PepsiCo
PepsiCo products are enjoyed by consumers more than one billion
times a day in more than 200 countries and territories around the
world. PepsiCo generated more than $79 billion in net revenue in
2021, driven by a complementary beverage and convenient foods
portfolio that includes Lay's, Doritos, Cheetos, Gatorade,
Pepsi-Cola, Mountain Dew, Quaker, and SodaStream. PepsiCo's product
portfolio includes a wide range of enjoyable foods and beverages,
including many iconic brands that generate more than $1 billion
each in estimated annual retail sales.
Guiding PepsiCo is our vision to Be the Global Leader in
Beverages and Convenient Foods by Winning with PepsiCo Positive
(pep+). pep+ is our strategic end-to-end transformation that puts
sustainability and human capital at the center of how we will
create value and growth by operating within planetary boundaries
and inspiring positive change for planet and people. For more
information, visit www.pepsico.com.
PepsiCo Cautionary Statement
Statements in this release that are “forward-looking statements”
are based on currently available information, operating plans and
projections about future events and trends. Terminology such as
“aim,” “anticipate,” “believe,” “drive,” “estimate,” “expect,”
“expressed confidence,” “forecast,” “future,” “goal,” “guidance,”
“intend,” “may,” “objective,” “outlook,” “plan,” “position,”
“potential,” “project,” “seek,” “should,” “strategy,” “target,”
“will” or similar statements or variations of such words and other
similar expressions are intended to identify forward looking
statements, although not all forward-looking statements contain
such terms. Forward-looking statements inherently involve risks and
uncertainties that could cause PepsiCo’s actual results to differ
materially from those predicted in such forward looking statements.
Such risks and uncertainties include, but are not limited to:
damage to PepsiCo’s reputation or brand image; water scarcity;
disruption of PepsiCo’s manufacturing operations or supply chain,
including increased commodity, packaging, transportation, labor and
other input costs; climate change or measures to address climate
change; and failure to comply with applicable laws and
regulations.
For additional information on these and other factors that could
cause PepsiCo’s actual results to materially differ from those set
forth herein, please see PepsiCo’s filings with the Securities and
Exchange Commission, including its most recent annual report on
Form 10-K and subsequent reports on Forms 10-Q and 8-K. Investors
are cautioned not to place undue reliance on any such
forward-looking statements, which speak only as of the date they
are made. We undertake no obligation to update any forward-looking
statement, whether as a result of new information, future events or
otherwise.
Source: Corporate release Source: ADM
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220914005942/en/
ADM Jackie Anderson media@adm.com 312-634-8484
PepsiCo PepsiCoMediaRelations@pepsico.com
Archer Daniels Midland (NYSE:ADM)
Historical Stock Chart
From Apr 2024 to May 2024
Archer Daniels Midland (NYSE:ADM)
Historical Stock Chart
From May 2023 to May 2024