For AGCO, sustainability is a business imperative. It helps us build long-term value by supporting our mission and vision while also helping to solve complex global issues. Our approach to long-term economic, social and environmental sustainability is aligned with our vision to provide high-tech solutions for professional farmers feeding the world. This approach challenges us to look for dynamic solutions to major issues that impact our business, such as food security, farmer livelihood, and resource efficiency. We have developed strategic corporate sustainability goals that relate to each link in our product’s lifecycle in four focus areas: our Operations, our Customers, our Suppliers and our Communities. These areas represent AGCO’s sustainability priorities, and they drive direction and focus through innovation, efficiency and long-term sustained growth.
Our sustainability strategy was further developed by conducting a materiality assessment in 2011, in which AGCO defined issues of relevance to stakeholders and the business. From this process, 20 key topics were identified and prioritized. These topics have been categorized into the broad issues that form the basis of AGCO’s sustainability reporting framework.
Please review the information provided on this site for more information on how AGCO is managing its sustainability. AGCO’s Global Sustainability Reports further detail our annual progress and are available for download and hardcopy by request.
When it comes to our operations, we are working to systematically and continuously improve efficiency, reduce excessive waste and build a healthy, productive workforce. AGCO has established reduction targets for our core manufacturing centers to meet reduction goals in several key areas. AGCO routinely measures progress on these targets and uses that information to continually improve performance. These targets are:
- Decrease Energy Intensity 10% by 2017
- Decrease Operational GHG Intensity 10% by 2017
- Achieve 1.5 Lost-time Injury Frequency Rate by 2015
- Reduce Operational Waste 10% by 2015
In addition to AGCO’s commitment to increased efficiency, we value the health and safety of our workforce. AGCO’s health and safety program, FOCUS, is working to create a culture of individual responsibility and safety at our locations, through the principles of employee involvement, prevention, improvement, education and training. AGCO also seeks to create a culture that fosters diversity and good business practices. AGCO adheres to an ethics and compliance program to promote ethical behaviour throughout the company.
Supply chain integrity is a business imperative and a responsibility for AGCO. AGCO's supplier relationships are vital to our business. Procurement practices and supply chain management significantly impact the long-term competitiveness of a business and its ability to create value for shareholders and stakeholders alike. It is our aim to foster long-term profitability through high performance in quality, ethics and environmental standards among our suppliers. We believe this can be achieved by strengthening long-term relationships with our preferred, responsible suppliers.
To develop our sustainable supply chain, AGCO will work to create healthy relationships with open communication that enable us to better ensure that suppliers share our own values with respect to environmental stewardship and social responsibility. We will also work to promote high labor standards and an ethical business climate throughout our supply chain by training and tracking suppliers’ performance.
As we expand globally, we must be vigilant that labor conditions and human rights standards are not only compliant with local regulations, but also with our own, often higher, expectations. To this end, we recognize the need to incorporate greater transparency and traceability into our upstream supply chain, as well as to better understand labor conditions downstream among our customers around the world. AGCO’s Conflict Minerals response is one example of this transparency, in which AGCO will ensure compliance through comprehensive engagement of its at-risk suppliers.
At AGCO, we believe that we can help ensure a dependable, adequate and accessible global food supply. Our customers are under intense pressure to produce more food with fewer resources. To support our customers, AGCO works to leverage opportunities that will allow them to experience higher profitability through more efficient and sustainable products that can achieve greater productivity. For example, our application equipment division creates products that can increase overall water efficiency and better control the application of fertilizer in order to conserve resources and help protect surrounding ecosystems. AGCO is also the first tractor manufacturer to begin serial production of biogas tractors, which can replace up to 82 percent of the diesel fuel with renewable biogas.
We strive to continuously provide the products and services our customers need to prosper over the long term. Along with enabling farmers to increase the technology in their farming practices, we work towards providing them with solutions to better farm productivity and soil health by facilitating precise use of fuel, water and treatment aids.
Today, farmers are using our proven technology and products to save fuel, effectively use treatment aids, increase crop yield and ensure compliance with environmental regulations. Key to this effort is making the necessary investments in product development, design and manufacturing to meet the varying needs of the developed and developing nations where farmers operate. AGCO also supports these farmers through increasingly innovative technology that allows more efficient operations of farm equipment, saving time and resources and allowing the farmer to do more with less.
Our business and the communities in which we operate are mutually dependent. Therefore, corporate citizenship has been long embedded into the values and operations of our employees, our customers, our suppliers and our dealers. We value community relations and consider it an investment for our stakeholders. To attain and maintain impact for our community involvement, we strive to be a thoughtful citizen of the communities in which we operate by proving to be an employer of choice in our communities and making positive contributions that improve the lives of our neighbors.
AGCO works with the global farming community to produce the world's food, fiber and fuel. We are pursuing a shared value principle in philanthropic efforts to impact communities that support the global food, fuel and fiber supply. We will use our knowledge and assets to proactively invest in programs to positively strengthen communities where we operate, while growing our business. Helping farmers maintain their livelihoods through more profitable agricultural operations in an indirect way that we also impact communities in a positive manner, as financially healthy farms create jobs and grow the local economy in their area.