ADM Commitment to

No Deforestation

Policy Implementation

H1 2017 Soy Progress Report

In Partnership with The Forest Trust

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Introduction

ADM committed to No Deforestation and No Exploitation (No DE) in our soy and palm oil supply chains
in March 2015. In May 2015, we began a partnership with The Forest Trust (TFT) to implement this
commitment and build traceable and transparent agricultural supply chains. ADM is working with TFT to
identify direct suppliers and determine if they share our No DE values. By identifying and procuring from
suppliers with shared values, ADM is participating in the transformation of the soy supply chain. Of
course, ADM cannot transform the industry alone, and we encourage others in the soy supply chain to
employ No DE values and practices.

Actions taken in the first half of 2017 will be reported under the following categories:

 Traceability – publication of traceability scores

 Transformation – supplier engagement in support of No DE
 Monitoring and Verification – monitoring of issues within the supply chain through satellite
imaging and verification through implementation of an Issues and Resolutions mechanism
 Topics of Interest – other relevant activities in support of No DE within the industry

Soy Action Plan 2016/17: Milestones and Status

No. Milestone Status

1 Update 2017 soybean sourcing analysis for Paraguay, Brazil, Argentina, Complete
Uruguay, and Bolivia
2 Conduct a pilot study addressing land use change in soybean growing areas Complete
within the Brazilian Cerrado biome—particularly focusing on Matopiba—as
well as Paraguay´s Atlantic Forest biome.
3 Develop a public-facing Issues and Resolutions mechanism, and a procedure Complete
outlining a clear process for resolutions of issues that may emerge.
4 Achieve 95% traceability to municipality/district for soybeans procured Complete –
directly from farmers currently at 99%
5 Obtain farm maps of our current, direct soybean suppliers in the Matopiba Ongoing –
region, a high risk area within the Cerrado biome in Brazil. currently at 50%
6 Participate in No Deforestation initiatives, events and discussions around the Ongoing
globe, engaging with stakeholders from across the soybean supply chain.

Traceability

H1 2017 Procurement Update

The 2017 procurement analysis provides a basis for identifying potential shifts in soybean sourcing, and
targeting and guiding transformation efforts. The H1 2017 procurement analysis is an update on
previous analyses of 2014 and 2016 ADM soybean procurement, and includes soybean procurement
during the first half of the calendar year, from January 1, 2017- June 30, 2017.

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During the first half of 2017, procurement volumes were updated for all countries in South America
from which ADM sourced soybeans.

5% 7%
14% 2%

72%

Argentina Bolivia Brazil Paraguay Uruguay

ADM considers detailed analysis in Brazil and Paraguay to be important, given that certain areas within
the Brazilian Cerrado and the Paraguay Atlantic Forest are identified as high-risk biomes. These areas
were selected as the initial focus geographies for implementation of our Commitment to No-
Deforestation (see Q1 2016 progress report for more information on risk assessment and selection).

ADM Brazil H1 2017 soybean procurement ADM Paraguay H1 2017 soybean

volume distribution by supplier type procurement volume distribution by
supplier type

35%
42%

65% 58%

Direct suppliers Indirect suppliers Direct suppliers Indirect suppliers

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Municipality Level Traceability

ADM’s sustainability journey encompasses many goals, including farmer-level traceability in the soybean
supply chain. The Q4 2016 progress report included data on state-level traceability for Brazil and
Paraguay for the first time. Now, thanks to advances in ADM’s traceability capacity during H1 2017, the
company can report traceability to municipality/district of origin for soybeans sourced directly from
farmers in Brazil and Paraguay. Municipality traceability will support implementation of our No DE
Commitment by allowing us to prioritize traceability to the farm level and engagement with suppliers in
high-risk municipalities with high rates of conversion of native vegetation to soy.

For H1 2017, ADM Brazil has 99% traceability to municipality of origin for soybeans procured directly
from farmers; ADM Paraguay has 100% traceability.

Different levels of information are available for traceability of soybeans procured directly from farmers
vs. procured indirectly from third party suppliers. Further analysis is needed to reach municipality of
origin for indirect purchases from third party suppliers such as cooperatives, brokers, traders, and third
party silos. We are exploring sources of traceability information for indirect purchases and will report on
indirect supplier traceability in future progress reports.

We view municipality level traceability as an interim goal and indicator of progress. Our next objective is
to begin engaging with indirect suppliers to identify the municipality/district where they source their
soybeans, and to engage with direct suppliers to continue to collect digital farm maps and other farm
location information that will provide farm-level traceability.

ADM will publish global soybean procurement data annually and will report on traceability in each semi-
annual progress report.

Traceability Verification Process for ADM Brazil

TFT carried out a verification process to ensure the accuracy of the data used to calculate municipality
traceability in Brazil. This verification confirms the credibility of our municipality level traceability in
Brazil, and allows us to identify gaps in traceability. The verification process crosschecked ADM’s data
source for municipality of origin with several other data sources: supplier invoices, information provided
by ADM regional offices, digital farm maps, and property location information from the government,
which requires farmers to register their farm location.

Transformation
Stakeholder Engagement
ADM participated in several multi-stakeholder initiatives/events during H1 2017, including:
- January:
o World Business Council for Sustainable Development (WBCSD) – Meeting in NYC with
senior sustainability officers from major global trading companies and NGOs.

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 - April:
o The Innovation Forum – Forum that brought stakeholders together in Washington, D.C.,
to discuss deforestation issues in several supply chains (palm, soybean, beef, pulp,
coffee, others). ADM participated as a speaker on the soybean supply chain panel.
o Coalition for Decision Making system – ADM hosted a multi-stakeholder event with
Bunge and The Nature Conservancy to support the design of the Agro Ideal tool which
will help to identify areas for soybean development that would not involve
deforestation.
- May:
o More Sustainable Mato Grosso do Sul Seminar – ADM—in coordination with ABIOVE and
other stakeholders—sponsored this Campo Grande event at which an environmental
compliance guide for farmers was launched, and the Soja Plus program objectives and
advantages were reinforced as a first step to achieve environmental compliance at the
farm level.
o ADM Responsible Soy events – ADM-sponsored meetings in several producing regions
across Brazil that enrolled new suppliers and awarded top farmers (those who have
been audited and are in full compliance with the program, regulations and best
practices).
o The Agricultural Strength event – Sponsored by Santander Bank and the Mato Grosso
government, ADM presented its Responsible Soy Program.
o MATOPIBA Sustainable Coalition – Sponsored by Conservation International (CI) and
with the presence of the World Wildlife Federation (WWF), Brazilian Rural Association
(SRB), ADM joined as a member to discuss sustainability actions focused in the Brazilian
Cerrado.
- June:
o Bahia Farm Progress Show – The Nature Conservancy (TNC) and ADM presented their
Correntina Environmental Portal at the Luiz Eduardo Magalhaes Agricultural fair. ADM
invited producers to join its certified Responsible Soy Program.
o Strategic Alliances to promote commodities free of deforestation – Organized by the
Paraguayan Environmental Ministry and the United Nations (UN/GEF) Green
Commodities Program, ADM participated as a moderator of the soy panel at this event
in Asuncion, Paraguay.
o Cerrado Working Group meeting – ADM, as an active member, participated in the
meeting at WWF´s HQ in Brasilia, DF.
Incorporating the No Deforestation Commitment into Procurement Processes
Through partnerships with TNC, Aliança da Terra (Doing it Right Program) and ABIOVE (Soja Plus), ADM
invested in extension projects in 94 farms in the Brazilian states of Bahia, Mato Grosso, Mato Grosso do
Sul and Pará.

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Social Issues in Sourcing Regions
To address the No Exploitation aspect of our commitment, ADM has signed a renewal of its commitment
against Slave Labor in Brazil with InPacto. ADM has also entered a service agreement with Agrotools to
monitor and ensure suppliers in Brazil are not part of the Slave Labor List issued by the Brazilian Ministry
of Labor.

Monitoring and Verification

Monitoring Methodology
ADM worked with Agrosatelite to conduct a pilot to monitor land use change and soy expansion during
the last 10 years in the Cerrado biome, with a focus on Matopiba. The pilot also covered a few selected
areas of the Atlantic Forest biome in Paraguay. This study enabled us to gather facts about our suppliers,
better understand land use trends within these biomes, and visualize areas available for agriculture and
land that should be set aside as protected areas.
We also entered a service agreement with Agrotools to improve the way we monitor and verify farms,
making sure they are not blacklisted in programs such as IBAMA´s embargoed areas list, the Amazon Soy
Moratorium or Para´s Green Protocol.
Development of an Issues and Resolutions Mechanism
ADM believes that stakeholders will play an important and constructive role in the implementation of
the No DE Policy, as they offer valuable and independent contributions to the monitoring of supply
chains, as well as detection and disclosure of issues. In order to formalize this process, ADM recently
launched an Issues and Resolutions Protocol, which enables any stakeholder to raise a grievance against
ADM or any party in ADM’s supply chain, and creates a direct forum for stakeholder dialogue. Any
concerns can be sent to responsibility@adm.com. If ADM receives input under the Issues and Resolution
Protocol, we will promptly notify the appropriate stakeholders and provide a fair and objective
evaluation in a timely manner. Relevant issues and grievances will also be logged in the Issues and
Resolutions Summary Table on the Sustainability Progress Tracker, and regular progress updates will be
provided.

Topics of Interest
ADM in Europe has successfully crushed its first non-GMO soybeans at its facility in Spyck, northwestern
Germany. Located close to the Dutch border, the site was previously only used to crush rape and
sunflower seeds. This is the second ADM plant in Europe to install these capabilities, following our
facility in Straubing, Bavaria, which started to crush non-GMO soybeans in 2016. These changes are
allowing ADM to meet customer demand as the European non-GMO soybean market continues to grow.
The soybeans crushed in the two facilities are of European origin, mainly coming from the Danube
region, France and Ukraine.

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Conclusion
In second half of 2017, we will continue investigating land use change in South American soybean
producing areas, and we will keep investing in our geospatial database of suppliers.
We will also continue our dialog with stakeholders throughout the value chain and around the globe,
and we will invest in projects that contribute to the protection of sensitive ecosystems, focusing efforts
directly with our suppliers in order to improve sustainable agriculture practices at field level and raise
environmental awareness.
This is our sixth public Progress Report. We welcome feedback and comments from our interested
readers at responsibility@adm.com.