Executive Briefings

Supply Chain Sustainability: Five Steps You Can Steal

Archer Daniels Midland Company (ADM) announced in its sustainability report this month that it has reached its goal in palm oil traceability - achieving 98 percent traceability for palm oil and more than 95 percent for palm kernel oil, as well as 24 percent reduced water usage since 2008.

Supply Chain Sustainability: Five Steps You Can Steal

ADM says it also reduced energy intensity and emissions by 25 percent and 11 percent, respectively. The company shared step-by-step details on how it conducted the report.

Step 1: Engage adviser to assess the stakeholders that would rely on information from the report

First, ADM says, the company engaged Deloitte Advisory to undertake a formal materiality assessment to apply its knowledge of the Global Reporting Initiative (GRI) methodology and the industry as a whole to select stakeholders whom the report would affect.

To assess those who would be most affected by the report, Deloitte looked at four variables:

• Responsibility: those stakeholders linked to the organization through legal, financial, operational regulations, contracts and/or policies.

• Influence: stakeholders who have the ability to influence whether or not the organization can reach its intended goals, including those with formal decision-making power, internally or externally.

• Proximity: Stakeholders on whom the organization depends for daily operations and those living close to operation sites.

• Dependency: Stakeholders who are most dependent on the organization’s operations, such as customers/clients reliant on the organization’s products and services, and suppliers for which the organization is a large client.

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ADM says it also reduced energy intensity and emissions by 25 percent and 11 percent, respectively. The company shared step-by-step details on how it conducted the report.

Step 1: Engage adviser to assess the stakeholders that would rely on information from the report

First, ADM says, the company engaged Deloitte Advisory to undertake a formal materiality assessment to apply its knowledge of the Global Reporting Initiative (GRI) methodology and the industry as a whole to select stakeholders whom the report would affect.

To assess those who would be most affected by the report, Deloitte looked at four variables:

• Responsibility: those stakeholders linked to the organization through legal, financial, operational regulations, contracts and/or policies.

• Influence: stakeholders who have the ability to influence whether or not the organization can reach its intended goals, including those with formal decision-making power, internally or externally.

• Proximity: Stakeholders on whom the organization depends for daily operations and those living close to operation sites.

• Dependency: Stakeholders who are most dependent on the organization’s operations, such as customers/clients reliant on the organization’s products and services, and suppliers for which the organization is a large client.

Read Full Article

Supply Chain Sustainability: Five Steps You Can Steal