AGCO, a worldwide manufacturer and distributor of agricultural equipment, announced the release of its first global sustainability report.
The report describes AGCO's approach to enhancing the sustainability of its business processes and global agriculture. It presents data supporting the strategy and updates progress toward change.
"At AGCO, sustainability is vital to our vision to offer high-tech solutions for farmers feeding the world," said Martin Richenhagen, Chairman, President and CEO of AGCO. "We are in a very unique position to impact sustainability along the manufacturing and agricultural value chains. We developed our approach to provide the best impact to both."
In 2011, AGCO kicked off a comprehensive corporate sustainability initiative. The company developed a plan to invest in projects and program development in areas that will reduce operating expenses, develop revenue opportunities, and reduce operating risks.
"We are working to integrate sustainability into our operations by continuously improving resource management. Our employees throughout the world are key partners in this journey and we will look to them for new ideas to enhance efficiency, reduce costs, eliminate waste and create whole-farm technology solutions for our customers," continued Richenhagen.
The company is already working to design and develop solutions that address the evolving needs of farmers and reduce environmental impacts. The report, which aligns with the Global Reporting Initiative, includes company accomplishments such as:
• Downstream-focused innovation: In 2011, AGCO directed $275.6 million to research and engineering, a 25.5% increase over 2010.
• Operations: Among AGCO's largest wholly-owned sites, more than half are certified to ISO 14001 and/or the EU Eco-Management and Audit Scheme. Going forward AGCO will monitor and report energy use by source and develop an energy management program that drives efficiency and cost saving across its organization.
• Supplier relations: AGCO released the company's Supplier Code of Conduct to build and strengthen relationships with preferred suppliers that support quality, environmental stewardship and high labor standards.
During the first half of 2012 AGCO began building the structures to drive accountability for its performance. AGCO's development and progress will be disclosed yearly in the company's sustainability report.
The full report can be accessed here.