Archer Daniels Midland Company Sustainability Steering ... - ADM

Archer Daniels Midland CompanySustainability Steering Committee Charter1. BackgroundAn essential link in the agricultural economy, ADM procures agricultural crops; trades,transports and stores them; and processes them into vital food, feed, fuel and industrialproducts, and distributes these products to customers – primarily large food and energycompanies – throughout the world. ADM’s strategic destination is to be the globalleader in BioEnergy while expanding its premier position in the agricultural processingvalue chain.Success in these efforts requires a long term perspective that balances current needs andeconomic opportunities as well as future demands. It also requires consideration of howADM’s business impacts others and how the social context in which ADM operatesimpacts its business. Therefore, to promote such perspective, consideration andunderstanding, ADM has established the Sustainability Steering Committee and definedthe concept of sustainability to be applied in its business.2. SustainabilityWhile many different terms, such as “corporate social responsibility” and “corporatecitizenship,” are used to label the efforts of business organizations to operate in a mannerthat advances the social good, ADM has chosen the term “Sustainability” as mostappropriate to identify its commitments as follows:• Responsible stewardship of the environment.• Enhancing the social and economic well-being of its colleagues and thecommunities in which it operates.• Creating mutually beneficial relationships with business partners.• Acting with the highest level of integrity in all its dealings.These commitments define the term “Sustainability” as used within ADM. As defined,Sustainability is central to ADM’s position in BioEnergy and the agricultural processingvalue chain as well as its mission, “to unlock the potential of nature, to improve thequality of life.”1

3. Sustainability Steering Committee (“SSC”)ADM’s Sustainability Steering Committee has been formed under the direction of theChairman and Chief Executive and has been delegated by the Company’s StrategicPlanning Committee (SPC) the responsibility to establish corporate direction and policyon Sustainability and ensure that organizational activities align with the Company’scommitment to Sustainability. The SSC operates as a cross-functional team under theoversight of the SPC. Pat Woertz, chairman and CEO, serves as SPC liaison and advisorto the Committee.Membership of the SSC reflects a diversity of responsibilities, experiences andperspectives to facilitate thoughtful, creative decision-making and to ensure integration ofSustainability throughout the organization, allowing access to all relevant resources,experience and knowledge from all units of the Company.The SSC shall designate a Chairman, Vice Chairman and Secretary from among itsmembers. The responsibilities of those officers shall be as follows:a. Chairman – responsibility for the proper functioning of the SSC, includingconformance to the charter, management of meetings and effective functioning of thecommittee to achieve its stated objectives;b. Vice Chairman – support the Chairman in his/her responsibilities, act asChairman in the event of the unavailability of the Chairman and other responsibilities asthe Chairman or the committee may determine;c. Secretary – manage the process flow of the committee by organizingmeetings as directed by the Chairman, ensuring proper distribution of information inpreparation for meetings or otherwise as directed by the Chairman and maintain recordsof the meetings of the committee.Each member of the SSC shall undertake best efforts to allocate adequate time andenergy to the functioning of the committee and its decisions, including participation inmeetings, input on items of discussion, identification of relevant information fordistribution and participation on working groups or sub-committees as needed.The SSC may appoint working groups or expert advisory groups to assist in its functionand achievement of its objectives. The membership and responsibility of any such groupshall be defined by the SSC at the time of appointment of that group, and the SSC shallappoint one of its members as a liaison and advisor to such group.2

4. ObjectivesThe SSC shall establish corporate direction and policy on Sustainability and ensure thatorganizational activities align with the Company’s commitment to Sustainability.Specifically, the SSC shall be responsible for the following objectives:• Strategy – Establish, monitor, manage and coordinate the Sustainabilitystrategy of ADM and its implementation based on annual objectives and anaction program approved by the SPC. This will include identification,assessment and prioritization of challenges and opportunities in regard toSustainability.• Stakeholder Engagement – Develop and increase internal and externalstakeholder awareness of environmental, social and economic issues as theyrelate to ADM’s business and ADM’s Sustainability strategy andperformance. The SSC will manage stakeholder dialogue, establishing underits direction the corporate point of contact for Sustainability matters andcoordinator of responses to questionnaires or other inquiries on issues relatedto Sustainability.• Resources – Ensure the Company has sufficient resources and processes toaddress identified priorities, both risks and opportunities, and align theCompany activities with the Sustainability commitment and strategy.• Metrics – Establish and monitor key performance metrics relating toSustainability.5. Authority and BoundariesThe Committee is sponsored by and accountable to ADM’s SPC. It shall have theauthority to affect the above-stated commitment and objectives. Its activities anddecisions shall align with the principles of The ADM Way, ADM’s strategic destination,business plans, objectives and policies.6. Resources and SupportThe Committee shall be supported by staff in the Office of Compliance and Ethics. TheCommittee shall have the authority within the scope of existing corporate policies andprocedures to engage additional resources, internal or external, to support its work.3

7. OperationsThe team shall meet as often as necessary to carry out its function effectively. It isanticipated that meetings will be held at least monthly for an initial start-up period andthen no less than quarterly after that. Participation in meetings may be by electronicmeans generally, except upon special request of the Chairman. Decision-making willgenerally be by consensus, but in the event of inability to reach consensus, the Chairmanshall have the authority to direct a decision. Any member of the committee may in theevent of an impasse and a decision by the Chairman request that the SPC liaison andadvisor participate in discussion of the issue with the SSC and review the Chairman’sdecision.Meetings shall be well planned with a defined agenda, including clear objectives, andpreparatory materials provided to the committee members in a timely fashion to allowappropriate preparation and feedback on the agenda.Committee members:Pat Woertz – SPC Liaison/AdvisorMark Bemis – ChairmanScott Roney – Vice ChairmanDennis Fisher – SecretaryShannon HerzfeldDomingo LastraVictoria PodestaJoe TaetsTodd WerpyThis Sustainability Steering Committee Charter was approved by the Strategic PlanningCommittee on January 29, 2008.4