ADM Commitment to Respect Human Rights

Transcription

1 ADM Commitment to Respect Human Rights Policy Implementation Q Progress Report

2 Our Commitment to Respect Human Rights Policy Implementation Q Progress Report Introduction This commitment to respect human rights is informed by international law and by the principles of liberty and dignity enshrined in the United Nations Universal Declaration of Human Rights and the UN Guiding Principles on Business and Human Rights. As a natural consequence of our commitment to human rights globally, ADM is proud to report that it has joined the family of companies and organizations as part of the United Nations Global Compact (UNGC). In 2014, ADM published Our Commitment to Respect for Human Rights Policy. As a global agricultural processor whose purpose is to serve vital needs, Archer Daniels Midland Company connects the harvest to the home worldwide. We source crops from farmers in the world s major growing regions, transport them to more than 270 processing facilities, and convert them into a wide variety of food ingredients, animal feeds and renewable industrial chemicals and energy products. ADM is one of the world s largest agricultural processors and food ingredient providers, with more than 32,300 employees serving customers in more than 160 countries. ADM colleagues are united by six values that demonstrate our insistence on achieving the right results, the right way: Integrity, Respect, Excellence, Resourcefulness, Teamwork and Responsibility. ADM s commitment to human rights embodies and reflects these values, particularly Respect, which we define as follows: We feel a deep and genuine regard for the safety and well-being of all people, communities and resources, and we treat them with care and consideration. We demonstrate trust and openness. And, we are good stewards of the environment. Our role We believe that although governments have the primary duty to protect and ensure fulfillment of human rights, we have a responsibility to respect human rights and can play a positive role in the communities where we operate. While we generally are not growers, ADM s scale, reach and vast supplier network give us the opportunity to help improve the conditions under which crops are grown, transported and marketed around the world, as well as the lives of those who grow them and of other workers and communities along the supply chain. We work collaboratively with stakeholders including other industry participants, governments and NGOs to address opportunities for improvement in the agricultural supply chain, including worker rights and conditions, on-farm health and safety, and the land rights of indigenous peoples. 2

3 ADM also maintains its own standards, policies and practices to ensure that our colleagues, our suppliers and their contractors respect workers rights and comply with all applicable local, national and international laws governing working conditions. Scope The ADM Commitment to Respect Human Rights Policy applies to all employees, officers, directors, contract workers and agents of ADM, our divisions and our affiliates in all countries. ADM expects that, when working on our behalf, our suppliers, business partners, agents and consultants will uphold the principles of this commitment. In order to be most impactful and beneficial, ADM is taking a risk-based approach to implementation. The implementation phases below provide more detail. January Implementation Plan Summary The following phases describe the step-by-step approach to implement Our Commitment to Respect Human Rights : Phase 1 Analyze global Human Rights issues and identification of high risk geographies. Phase 2 Analyze the ADM supply chain. Identify priority geographies, activities, and facilities with respect to Phase 1 issues and risks. Phase 3 - Propose Key Performance Indicators (KPI s) appropriate for Policy Implementation (metrics). Create training documents for use in communications and colleague training. Phase 4 Pilot the implementation process at a select ADM facility in the US Phase 5 Prepare / schedule / determine implementation pace at sites identified in Phase 2. Include end-of-year program assessment, improvements, and reports utilizing KPI s. Phase 6 Create executive summaries and communications pieces for use with ICCR, the Dow Jones Sustainability Index, key NGOs, and Investors. Phases that have been listed as IN PROGRESS in previous reports are presented herein with more detail. Phases that have been listed as COMPLETED in previous progress reports are not discussed herein. Previous progress reports can be found for download at ADM s Sustainability Progress Tracker: Phase 3 - March-April 2016 Propose Key Performance Indicators (KPI s) appropriate for Policy Implementation (metrics). Create training documents for use in communications and colleague training COMPLETED. At selected ADM facilities, training and performance testing will be used to integrate the policy into operations. Training materials and performance testing will be modified to leverage shared criteria with other programs such as the Sedex Members Ethical Trade Audit (SMETA) 4-pillar audit. SMETA is built off of the Ethical Trading Initiative (ETI). 3

4 ADM Colleague training presentations focus on three simple themes: 1. Our Commitment to Human Rights Policy; 2. How to recognize potential human rights abuses; and 3. What to do when abuses are observed. When ADM colleagues recognize a potential human rights abuse as they conduct business with vendors both on and off ADM property, they will have an opportunity to report what they observed. The observations will be reviewed by the ADM Compliance department and local ADM HR and ADM Legal departments will determine next steps. Periodically, KPI s will be used to look for trends in the data. Trends will be used to determine how best to focus resources as appropriate. Key Performance Indicators will be collected as potential abuses are reported: Number of workers under 15 Number of incidents and discipline practices Status of workers employment Numbers of deaths, accidents, violations of safety standards Collective bargaining agreements or record of negotiation Filed grievances 4

5 Phase 4 - March May 2016 Pilot (test concept) the implementation process at a select ADM facility in the US COMPLETED. ADM leaders in operations, legal, human resources, procurement, and other key functional areas completed their review with a view toward employee training and integration into daily operations at the ADM facilities identified here. Business units and key functional areas have reviewed and deemed ready for roll-out at an ADM facility. The soybean crushing plant in Villeta, near the capital city of Asuncion, Paraguay, will the first ADM facility to receive this training. The on-site assessment and training has been scheduled for Q3. Lessons learned from the experience in Paraguay will be used to improve implementation in the remaining three locations. Tentatively, visits to ADM facilities located in South Africa and India will occur in Q3/Q4. The processing plant in Santa Cruz de la Sierra, Bolivia The oilseed processing plant in Maharashtra, India The soybean crushing plant in Villeta. Near the capital city of Asunción, Paraguay The oilseed processing plant in South Africa 5

6 Phase 5 June December 2016 Prepare / schedule / determine implementation pace at sites identified in Phase 2. Include end-of-year program assessment, improvements, and reports utilizing KPI s. IN PROGRESS. The soybean crushing plant in Villeta, near the capital city of Asuncion, Paraguay, will the first ADM facility to receive this training. The on-site assessment and training has been scheduled for Q3. Lessons learned from the experience in Paraguay will be used to improve implementation in the remaining three locations. Tentatively, visits to ADM facilities located in South Africa and India will occur in Q3/Q4. The soybean crushing plant in Villeta. Near the capital city of Asunción, Paraguay Phase 6 Create executive summaries and communications pieces for use with ICCR, the Dow Jones Sustainability Index, key NGOs, and Investors. NOT YET STARTED. Conclusion In order to be a leader on human rights and strive for positive impact, ADM will work to create positive and lasting influence within the commercial reach of its supply chains. We recognize that our opportunity for positive impact extends to the communities immediately surrounding ADM facilities and especially those who are engaged in agriculture and ag-related activities. The focus on Human Rights abuses and the role that multi-national companies can play to mitigate and/or eliminate these abuses is growing and gaining ever more attention. Through our global reach, ADM wants to lead efforts where corporations have a role in protecting and dignifying the human existence. Of course we know that we cannot do this alone. ADM encourages other global corporations to focus on business practices that are protective of human rights. This is our second public progress report on Our Commitment to Respect Human Rights policy implementation. We will report on progress quarterly to our stakeholders and we welcome feedback and comments from our interested readers at responsbility@adm.com 6