This is how shareholder initiatives work
In response to shareholder engagement
led by Rhode Island General Treasurer Seth Magaziner, Archer Daniels Midland
(ADM), one of largest agricultural processors in the world, has agreed to
assess the feasibility of adopting quantitative, company-wide goals for
reducing the company's greenhouse gas emissions, including increasing its use
of renewable energy.
As a result of this agreement,
Rhode Island has withdrawn the shareholder proxy proposal filed on
this topic at ADM late last year.
"Pension funds are
long-term investors," said Treasurer Magaziner. "Companies,
especially those as large as Archer Daniels Midland, must have a plan to adapt
their business model to reduce dependence on fossil fuels. A transition to
renewable energy can help stabilize and reduce energy costs - freeing up
corporate resources that can be invested for sustainable growth."
Beyond decreasing price
volatility, increasing the use of renewable energy can help companies
proactively prepare for the implementation of energy-efficiency standards and
carbon-reduction regulations. Increased use of clean technologies and renewable
energy may also reduce business continuity risk.
The Rhode Island Treasurer's
Office appreciates ADM's engagement with investors and looks forward to
continued conversations. We hope that ADM continues to take an industry-leading
position by integrating sustainability concerns into all aspects of the
company; creating long-term value for shareholders - including members of
Employees' Retirement System of Rhode Island.
More information on Treasurer
Magaziner's shareholder engagement can be found at: treasury.ri.gov/shareholderengagement