The Transformation of ADM: A Report on Sustainable Development Goals
In the early 2010s, ADM, a century-old agricultural products and services company, embarked on a significant transformation. The company streamlined and reorganized its divisions, refocused its teams on smart investments and innovation, and became more strategic and disciplined about capital, costs, and cash. However, the leadership team recognized the need to shift their attention to another crucial aspect: customers. The goal was to reorient the business towards value-added nutrition products and services, a more stable sector that could provide a broader base for growth and impact.
Segmentation and Differentiation
Currently, ADM is divided into three segments: agricultural services and oilseeds; carbohydrate solutions; and nutrition. All three units not only sell raw or processed commodities but also offer differentiated products. This strategic move allows ADM to cater to the evolving needs of its customers while staying ahead in the market.
Alignment with Global Macro Trends
ADM’s leaders have identified three long-term global macro trends that serve as guiding principles for the company’s decision-making processes:
- Food Security
- Sustainability
- Health and Well-being
These trends shape ADM’s capital-allocation, strategic, and operational decisions. By aligning its business with these trends, ADM aims to contribute to the achievement of the Sustainable Development Goals (SDGs) set by the United Nations.
Methodical and Mission-Driven Transformation
ADM’s transformation has been both methodical and mission-driven. In 2019, the company unveiled a new corporate purpose: “to unlock the power of nature to enrich the quality of life.” Over the past decade, ADM has intensified its focus on customer-centric innovation, bringing it closer to fulfilling its purpose. This transformation serves as a valuable example for other companies seeking to envision and execute similar change efforts.
SDGs, Targets, and Indicators
| SDGs | Targets | Indicators |
|---|---|---|
| SDG 2: Zero Hunger | 2.4: By 2030, ensure sustainable food production systems and implement resilient agricultural practices that increase productivity and production, that help maintain ecosystems, that strengthen capacity for adaptation to climate change, extreme weather, drought, flooding and other disasters and that progressively improve land and soil quality. | Not mentioned or implied in the article. |
| SDG 3: Good Health and Well-being | 3.4: By 2030, reduce by one third premature mortality from non-communicable diseases through prevention and treatment and promote mental health and well-being. | Not mentioned or implied in the article. |
| SDG 12: Responsible Consumption and Production | 12.2: By 2030, achieve the sustainable management and efficient use of natural resources. | Not mentioned or implied in the article. |
| SDG 17: Partnerships for the Goals | 17.17: Encourage and promote effective public, public-private and civil society partnerships, building on the experience and resourcing strategies of partnerships. | Not mentioned or implied in the article. |
1. Which SDGs are addressed or connected to the issues highlighted in the article?
The SDGs that are connected to the issues highlighted in the article are SDG 2: Zero Hunger, SDG 3: Good Health and Well-being, SDG 12: Responsible Consumption and Production, and SDG 17: Partnerships for the Goals.
2. What specific targets under those SDGs can be identified based on the article’s content?
Based on the article’s content, the specific target identified under SDG 2: Zero Hunger is 2.4: By 2030, ensure sustainable food production systems and implement resilient agricultural practices that increase productivity and production, that help maintain ecosystems, that strengthen capacity for adaptation to climate change, extreme weather, drought, flooding and other disasters and that progressively improve land and soil quality.
There are no specific targets mentioned or implied in the article for SDG 3: Good Health and Well-being, SDG 12: Responsible Consumption and Production, and SDG 17: Partnerships for the Goals.
3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?
There are no indicators mentioned or implied in the article that can be used to measure progress towards the identified target under SDG 2: Zero Hunger.
SDGs, Targets, and Indicators
| SDGs | Targets | Indicators |
|---|---|---|
| SDG 2: Zero Hunger | 2.4: By 2030, ensure sustainable food production systems and implement resilient agricultural practices that increase productivity and production, that help maintain ecosystems, that strengthen capacity for adaptation to climate change, extreme weather, drought, flooding and other disasters and that progressively improve land and soil quality. | Not mentioned or implied in the article. |
| SDG 3: Good Health and Well-being | 3.4: By 2030, reduce by one third premature mortality from non-communicable diseases through prevention and treatment and promote mental health and well-being. | Not mentioned or implied in the article. |
| SDG 12: Responsible Consumption and Production | 12.2: By 2030, achieve the sustainable management and efficient use of natural resources. | Not mentioned or implied in the article. |
| SDG 17: Partnerships for the Goals | 17.17: Encourage and promote effective public, public-private and civil society partnerships, building on the experience and resourcing strategies of partnerships. | Not mentioned or implied in the article. |
Behold! This splendid article springs forth from the wellspring of knowledge, shaped by a wondrous proprietary AI technology that delved into a vast ocean of data, illuminating the path towards the Sustainable Development Goals. Remember that all rights are reserved by SDG Investors LLC, empowering us to champion progress together.
Source: hbr.org
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