Companies included in the agricultural products and commodities segment are active in one of the following areas: through farms or plantations producing key commodities (cocoa, grains, oilseeds, fruits, vegetables, coffee, tea, or sugar cane); sourcing and trading large volumes of any of the above commodities to food processing, retail or consumer facing companies; manufacturing and selling animal feed products; and producing and selling ingredients to food or beverage processing companies.
Seven of the 142 companies in the agricultural products and commodities segment feature among the top 25 in the benchmark. Companies in this segment perform well in the governance and strategy measurement area, with Firmenich leading the group. While around two-thirds of companies in this segment report on reducing their direct and indirect (scope 1 and 2) emissions, there is a general lack of reporting across other key environmental issues. For example, among the worst performing indicators is water use, where around 60% of companies demonstrate no efforts to reduce water withdrawals across their operations. Furthermore, over half of the companies in this segment do not report improving soil health and agrobiodiversity. Given that most companies in this segment are directly involved in food production, they have substantial opportunities to improve towards promoting sustainable production practices.
Similarly, many of the agricultural products and commodities companies are yet to meet the minimum requirements for social issues such as eliminating child and forced labour, and respecting land rights. Nonetheless, over half of the companies are demonstrating commitments towards supporting farmer productivity and resilience. While companies in this segment have a less direct impact on nutritional topics, compared to those producing consumer products, they still have a role in reducing food insecurity by ensuring the availability of healthy foods, and its accessibility and affordability. While most companies are yet to set commitments on these key topics, DSM and Arla Foods are demonstrating best practices through their programs and partnerships.