For bondholders, this matters. Governance is not an abstract ESG label: it is a first line of defence against risk. Where faith is shaken in management’s integrity, it needs to be restored as quickly as possible.
The timing is also relevant. Roughly USD1 billion of ADM debt matures in 2026, and the company has not tapped the bond market since 2023, meaning the next visit to market could carry greater weight. When an issuer returns to the market following a governance issue, investors can probe more closely on controls, transparency, and culture, and sometimes price in any uncertainty.
ADM is included in the AFII Deforestation Debt Universe,[1] a group of fixed income issuers that have substantial exposure to deforestation where engagement by investors is recommended. For ADM, this exposure comes from palm oil, soy, and pulp & paper supply chains.
ADM has publicly stated an aim to eliminate deforestation from all of its supply chains by December 2025 (2024 Corporate Sustainability Report, p.21), following its first no-deforestation policy in 2015. At the time of writing ADM’s website reports that its Forests, Biodiversity & Communities policy is “under revision and will be available in the coming weeks.”
ADM also reiterated at the beginning of last year that it intends to maintain its climate ambitions, in contrast to several US peers that have softened or delayed targets. However, given recent developments, this commitment may need to be frequently restated.
In addition, ADM has actively courted sustainable capital. In 2022, it issued a sustainable bond with USD743 million of proceeds allocated to eligible environmental and social projects. In its allocation reporting, ADM emphasised its commitment “to advance the critical work to end deforestation, preserve biodiversity, reduce greenhouse gas emissions and conserve resources in our operations and across the entire food and agriculture supply chain”. For investors in the sustainable bond, the message is straightforward: a sustainability label must be underpinned by credible governance and verifiable data.
AFII has developed a toolkit for effective bondholder engagement,[2] and our analysis suggests an appropriate tool to use here could be ‘empowering issuers’. Given potentially anticipated issuance, investors might urge ADM to host briefings on sustainability and transition risk now. ADM could use these to explain specific governance issues identified and how internal controls have been strengthened; how sustainability and climate data are overseen, verified and audited; and how the company aims to meet its deforestation commitments.
Issuer-led engagement can reduce adversarial dynamics and improve information flow ahead of refinancing. In short, the combination of the recent SEC action, a 2026 maturity wall, the presence of labelled debt investors, and previous deforestation targets makes ADM a compelling case for bondholder engagement. Proactive and early substantive engagement by ADM is likely to count for more than last-minute marketing during a bookbuild.
For bondholders this is about resilience: better governance, reliable data, and ultimately, better credit and risk mitigation.
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[1] “Deforestation Debt Universe: update”, AFII, 29 Jan 2026.
[2] “Finding your voice: tools for better bondholder engagement on climate and nature risk”, AFII, 5 Dec 2025.
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IMPORTANT DISCLAIMER:
This report is for information and educational purposes only. The Anthropocene Fixed Income Institute (‘AFII’) does not provide tax, legal, investment, accounting, or any regulatory or regulated advice or services. This report is not intended to provide, and should not be relied on for, tax, legal, investment, accounting, or regulatory or regulated advice or services. Nothing in this report is intended (i) as investment advice, as an offer or solicitation of an offer to buy or sell, or as a recommendation, endorsement, or sponsorship of any security, company, issuer, or fund or (ii) to express a particular investment proposal in respect of a financial instrument or an issuer, or (iii) to propose a particular investment decision in respect of a financial instrument or an opinion as to the present or future value or price of any financial instrument or (iv) to recommend or suggest any investment strategy.
AFII is not responsible for any investment decision made by you. You are responsible for your own investment research and investment decisions. This report is not meant as a general guide to investing, nor as a source of any specific investment recommendation. Unless attributed to others, any opinions expressed are our current opinions only. AFII does not take into account your own circumstances or assets and AFII assumes no direct or indirect responsibility or liability for any investment decisions you make, and you remain fully responsible for your own research, legal and regulatory compliance, and decisions.
Certain information presented may have been sourced from third parties. AFII believes that such third-party information is reliable, and has checked public records to verify it wherever possible, but does not guarantee its accuracy, timeliness or completeness; and it is subject to change without notice.
Any reference to an issuer’s creditworthiness or likelihood of positive or negative performance in the current or future market is purely observational and should not be taken as a recommendation, endorsement or advice in relation to such issuer or its securities.
AFII is a non-profit organisation that provides fixed income investors with the insights and tools they need to align their portfolios with ambitious climate and nature targets. For more information about the Institute, please visit www.anthropocenefii.org.
