SINGAPORE — ADM will widen its sustainable farming practices and sourcing of sustainably produced goods with the execution of a Green Trade Export Letter of Credit in Singapore, London and New York from Standard Chartered.

The transaction supports supply chain trackability and greater adoption of sustainable farming and production practices.  

“Sustainability powers our strategy, and is foundational to our purpose as a company,” said Olivier Boujol, ADM vice president and global head of Structured Trade Finance. “With an integrated value chain spanning food and agriculture, ADM is uniquely positioned to drive sustainable practices across our industry, and we’re continuously scaling up our efforts to power positive change. We’re proud to work with Standard Chartered to support and encourage sustainable agriculture and food production from the farm gate to the dinner plate, and we look forward to continuing to expand our structured trade efforts in sustainability.”

The commodities underlying the $500 million program are mainly soybeans, oilseeds and cotton, with flows originating from Latin America, the United States and Australia to European markets. Third-party issued approved sustainable goods certifications from Round Table for Sustainable Soy, US Sustainable Soy Assurance Protocol, International Sustainability & Carbon Certification as well as Better Cotton Initiative are issued and evidenced as part of the transaction structure.

“Our clients are increasingly prioritizing sustainability across their supply chain ecosystem, which is not only important to their business agenda but also ensures a more resilient growth for the wider economy,” said Kai Fehr, global head of trade and working capital, Standard Chartered. “As a longstanding trade bank, we have an incredibly important role to play in helping to make global supply chain activities more sustainable. The successful execution of this Export LC program is testament to the significant opportunity we have in catalyzing finance to scale impact, by complementing ADM’s sustainable procurement processes with our tailor-made sustainable trade finance offering to advance their sustainability goals.”

Earlier this year, ADM announced a $20 million commitment to supporting cover crops in the American Midwest, supporting lower-carbon crop production. The company continues to advance its Strive 35 Goals to reduce greenhouse gas emissions, energy intensity, water usage, and waste to landfill. In 2021, the company announced a plan to reduce Scope 3 emissions 25% by 2035, and last year, ADM accelerated its deadline for a completely deforestation-free supply chain by five years, from 2030 to 2025. ADM also recently 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.