Archer-Daniels-Midland Company
ADM
Consumer Staples
7
exclusion reasons
3 themes
This page is part of our public exclusion list — a transparency tool that shows which companies we screen out and why. It is not investment advice, and it is not an accusation. But it is subject to change as our understanding of the facts evolves.
Archer-Daniels-Midland Company operates a global agricultural supply chain and processing business that is inherently carbon-intensive. The company's core activities—originating, transporting, storing, processing, and distributing agricultural commodities—rely heavily on energy for logistics, industrial processing, and drying. While ADM publishes sustainability reports and has set operational emissions reduction targets, its Scope 3 emissions from its vast agricultural supply chain represent the most significant portion of its carbon footprint and present the greatest challenge. The company's reported progress, such as expanding regenerative agriculture programs to cover millions of acres, addresses emissions at the farm level but does not alter the fundamental carbon intensity of its global trading and processing operations relative to sector peers. ADM's climate transition pathway, as assessed by third-party frameworks, indicates its decarbonization pace and ambition may not be sufficient to align with the Paris Agreement, placing it behind more proactive companies in the agribusiness and food ingredients sector.
In early 2024, ADM placed its CFO on leave and delayed financial reporting following an SEC voluntary document request regarding intersegment sales. By late 2024, the DOJ escalated to a criminal investigation into accounting practices within its Nutrition segment. In 2025, the company restated multiple years of financial data, confirming material weaknesses in internal controls.
Recent investigative reports link ADM's operations in China to the Xinjiang region, specifically regarding the processing of agricultural commodities potentially tied to state-sponsored labor programs. Sheffield Hallam University research documents evidence of forced labor in agricultural supply chains connected to ADM.
ADM has a high frequency of NLRB complaints. In 2023-2024, the company faced significant labor unrest and was cited for "bad faith bargaining" during strikes at its Decatur, IL facility.
ADM has been repeatedly cited by Global Witness and Mighty Earth for failing to eliminate deforestation from its soy supply chain in the Brazilian Cerrado. Despite "no-deforestation" pledges, satellite imagery and land-use records link ADM to suppliers involved in illegal clearing and the displacement of indigenous communities.
Violation Tracker logs over $200M in cumulative penalties including significant OSHA fines for workplace fatalities and grain elevator explosions.
ADM remains a primary defendant in ongoing litigation regarding its cocoa supply chain in West Africa (Cote d'Ivoire). International Rights Advocates litigation documents systemic child labor in cocoa harvesting linked to ADM supply chains.
Research Sources
2 organizations
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Companies appear on our exclusion list based on our investment judgment — not because they've done anything illegal. This is a difference of values and opinion, not an accusation of wrongdoing. Exclusion does not constitute a recommendation against investing in any company, and absence from the list does not constitute a recommendation to invest.
This information is provided for educational and transparency purposes only and should not be relied upon as investment advice. Data is drawn from independent watchdogs, NGOs, government registries, and Ethical Capital's ongoing research — see Research Sources for the full list.
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