At Bunge, we connect farmers to consumers to sustainably deliver essential food, feed and fuel to the world. Our key areas of growth – expansion of our oilseed processing and origination capabilities, production of renewable feedstocks, increasing our plant lipids portfolio and development of new plant-based protein ingredients – are not only central to our business strategy but also a testament to the alignment of sustainability with our corporate vision.
In the past two years, company-wide improvements enabled Bunge to take advantage of improved market conditions and generate record earnings, positioning ourselves for long-term success. We provide value for our shareholders while continuing to accelerate our focus on sustainable business opportunities that contribute to more climate-friendly agribusiness and food systems.
OneBunge global operating model helps incorporate sustainability across strategic business decisions
After Bunge’s 2019 One Bunge announcement of a new, global operating model that eliminated multiple regional structures, the company also implemented more disciplined financial practices around risk management, the balance sheet and capital allocation. At the same time, Bunge began more directly incorporating sustainability into the strategic business decision-making process.
- Bunge divested more than $1 billion in non-strategic assets and businesses and is investing in sustainable businesses such as plant-based fats, oils and proteins. A joint venture with Chevron will produce feedstock to supply the rapidly growing renewable fuel industry, helping lower the lifecycle carbon intensity of fuels.
- Bunge made significant technology investments to improve traceability and monitoring of supply chains, help connect upstream supplies and enhance efficiency of transportation.
Meeting sustainability targets via non-deforestation supply chains, regenerative farming, and incentive bonuses
We fight climate change with carbon-focused decision making across our organization. We are constantly working to minimize our environmental footprint and take action to reduce greenhouse gas emissions through our commitment to climate action.
- We announced Science-Based Targets (SBTs) to achieve absolute reduction in carbon emissions for our own operations and in our supply chains. To meet these targets, Bunge will make significant enhancements across our global operations, promote regenerative farming practices, and emphasize decarbonization in shipping and logistics.
- A substantial portion of emissions reduction within our supply chains (Scope 3) is tied to our industry-leading commitment to have deforestation-free supply chains in 2025. The decision to pair our SBTs to our non-deforestation policy was praised by stakeholders, including Ceres, PRI, and Climate Action 100+ investors.
- In December 2021, we closed on the refinancing of our $1.75 billion, three-year revolving credit facility. The interest rate is linked to our credit ratings and to five core sustainability targets, creating a meaningful connection between Bunge’s capital structure and sustainability strategy.
- As of January 1, 2021, performance-based sustainability goals are a component of the annual incentive bonuses paid to our executive team and over 5,500 of our employees. Our compensation framework is based on a pay-for-performance philosophy with payout now directly impacted by our attainment of certain sustainability targets.
ESG disclosure earns best-in-class scores from institutional investment community
Bunge is a leader among our peers across leading environmental, social and governance (ESG) disclosure platforms and our efforts to integrate sustainability into our business and supply chains have contributed to strong ESG disclosure scores year over year.
- We continue to receive AAA ratings from MSCI, positioning us ahead of industry peers.
- In 2021, Bunge received “B” ratings – leading scores in our peer group – for CDP Forests, Water and Climate, an important platform used by our global customers to assess supplier sustainability.
- For 2021 and 2022 Bunge was named “Most Responsible Companies” by Newsweek Magazine.
- Over 3,000 investors surveyed by Institutional Investor placed Bunge at #3 in the Food Producer category for ESG performance and transparency.
Actions taken over the past few years have resulted in a noteworthy business and financial turnaround for Bunge. And we did so as we raised our climate ambition by progressing toward our existing sustainability commitments, setting more aggressive ones as needed, and investing in our potential across new growth areas. Taken together, we believe we are on the right path to deliver meaningful and impactful climate action while delivering strong results for shareholders.