AGCO is standing with farmers in taking on the challenge of sustainably feeding our world. In 2021, we worked to establish the foundations of a comprehensive sustainability strategy, built around four pillars:
Advancing soil health and soil carbon sequestration through smart solutions
We offer farmers the precision agriculture tools and technologies they need to increase their soil’s productivity while using less inputs, capturing more carbon dioxide and leaving the soil healthier and more resistant to erosion.
Decarbonizing our operations and products
We are designing machines and technologies that reduce fossil fuel consumption and GHG emissions for a given amount of work. And we are finding ways to reduce energy use and incorporate more renewable energy in our own operations.
Elevating employee health and safety
Sustainability includes protecting employees, and we have been taking a wide range of steps through our Focus 2.0 program to ensure our own employees enjoy safe work environments and practices that enable them to come home safely to their families at the end of each workday.
Prioritizing animal welfare in food production
Animals raised for food production must be kept as healthy and comfortable as possible. Our poultry, egg and swine production offerings have been developed with animal health and welfare as a top priority.
Progress towards targets
2021 marked the first full year of AGCO’s sustainability strategy. We’ve identified various commitments and goals to measure our progress.
2021 marked the first full year of AGCO’s sustainability strategy. We’ve identified various commitments and goals to measure our progress.
- Achieved
- On track
- Off track
- Updated
Soil health and carbon sequestration
Commitment:
Integrate sustainability into customer engagement activities
Action:
- Quarterly farmer panel with AGCO senior team
- Research into farmer perspectives on soil health and carbon sequestration in Europe through independent research partner
- Global voice of customer activities
Status: On Track
Commitment:
Integrate soil health best practice into Future Farms trials and Global Crop Tours
Action:
- Focus on sustainable practices aimed at improving soil health, sequestering carbon, and improving farm profitability
- Research conducted in the United States, Denmark, Switzerland, and Zambia on cover crops, tillage systems, and fertilizer practices
- Insights disseminated to employees, dealers, and farmers via reports, online videos, social media, television and field tours
Status: On Track
Commitment:
Develop new sensors, technologies, and machine features to support soil health and carbon sequestration
Action:
- Initiated process to identify data requirements for map and gap analysis of soil carbon sequestration
Status: On Track
Commitment:
Deliver 100% connected fleet by 2025
Action:
- 80% connected AGCO production agriculture fleet based on machines retailed and activated in 2021
- Focus in 2022 is to hold activation rate and expand proactive customer support that leverages data from connected machines
Status: On Track
Decarbonizing our operations and products
Commitment:
Decrease GHG Intensity by 20% by 2026
Action:
- 13% GHG intensity reduction *Scope 1 &2 manufacturing sites
- 8% reduction in energy intensity *manufacturing sites
- Baseline year (2020) had significant disruptions to operations due to Covid-19. This resulted in lower-than-normal energy use, which increased in 2021 with operations returning to pre pandemic production levels
- Focus in 2022 is to continue tracking progress and achieve comparable reduction in both emissions intensity and absolute emissions
Status: On Track
Commitment:
Reach 60% renewable energy by 2026
Action:
- 32% renewable energy *manufacturing sites
- 52% renewable electricity *manufacturing sites
- Twelve manufacturing sites running on 100% renewable electricity
- Focus in 2022 is to increase the use of renewable electricity by expanding the procurement of EACs for European locations, increasing the number of sites with green supply contracts and exploring vPPA solutions in North America. In parallel, our QUEST program focuses on energy conservation projects, fuel switching, energy recovery, and building more on-site solar power systems, to reduce total energy consumption while increasing the share of renewable energy
Status: On Track
Commitment:
Invest in technologies to reduce carbon emissions of products in-use
Action:
- Progress in our development of low- and zero-emission tractors:
- Fendt e100 prototype tractor powered by carbon-free, hydrogen-based fuel cell technology
- Concept hybrid tractor combining battery-powered motor with a smaller internal-combustion engine, offering an interim route to all-electric farming
- R&D project on biomethane as a reduced emission fuel
- Quantifiable (estimated up to 10%) CO2 emission savings from the use of CVT technology, reductions in material use, fuel consumption, and efficiencies in logistics and shipping
Status: On Track
Commitment:
Commercial availability of Fendt e100 by 2025
Action:
- Currently in the advanced pilot stage and targeted for commercial launch before 2025
Status: On Track
Commitment:
Increase remanufacturing business revenue 150% of 2020 baseline revenue by 2025
Action:
- 11% increase in reman revenue in 2021
Status: On Track
Commitment:
Publish our Climate Risk Assessment in 2021
Action:
- Completed in 2021 and published alongside our 2021 Sustainability Report
- Submitted first CDP disclosure
Status: Achieved
Elevating employee health and safety
Commitment:
Roll out AGCOs Focus 2.0 project globally in 2021
Action:
- Rolled out a revamped organization-wide safety initiative that goes beyond manufacturing to instill a culture of safety throughout our entire company
Status: Achieved
Commitment:
Deliver a year-on-year improvement to our recordable injury rate for manufacturing sites
Action:
- 12% improvement
- TCIR of 2.53
Status: Achieved
Prioritizing animal welfare in food production
Commitment:
Convene an expert Animal Welfare Advisory Panel in 2021
Action:
- Animal welfare panel was established and held first meeting in 2021
Status: Achieved
Commitment:
Develop and publish a Corporate Policy on Animal Welfare in 2021
Action:
- Animal Welfare Guiding Principles published
Status: Achieved
Commitment:
Establish a research program in partnership with The University of Georgia Poultry Science Department in 2021
Action:
- Partnership established with University of Georgia
Status: Achieved
Commitment:
Finalize a product strategy and roadmap in 2021 to deliver animal welfare innovations across AGCO’s protein brand portfolio by 2025
Action:
- Added Faromatics SCOUT robot to our precision livestock farming (PLF) product roadmap
- Completed the development and launch of the AS310 layers aviary product solution with Tecno
- Further developing animal welfare product line in poultry and swine business
Status: On Track
Valuing our people
Commitment:
Conduct employee engagement survey for global workforce and establish an engagement baseline in 2021
Action:
- 62% of our non-production workforce participated in our employee engagement survey and an engagement baseline was established
Status: On Track
Commitment:
Increase the number of women in leadership to 18%
Action:
- Reached 18% women in leadership positions and set new target of 25% women in leadership by 2030
Status: Achieved Updated
Commitment:
Extend mandatory unconscious bias training to all employees in 2021
Action:
- Unconscious bias training was cascaded to our global workforce
Status: Achieved
