Climate Change Data

AGCO Corporation

Climate Impact & Sustainability Data (2020, 2021, 2022, 2023)

Reporting Period: 2020

Environmental Metrics

Renewable Energy Share:42% (goal of 60% by 2026)

ESG Focus Areas

  • Animal Welfare
  • Climate Smart Agriculture
  • Climate Risk
  • Decarbonization
  • Digital Agriculture
  • Product Lifecycle Stewardship
  • Soil Health and Soil-Carbon Sequestration
  • Sustainable Food Systems
  • Sustainable Mechanization
  • Employee Health and Safety

Environmental Achievements

  • Increased renewable energy use to approximately 42% across global manufacturing sites.
  • Implemented several initiatives across Fendt sites in Germany, resulting in 100% green electricity usage at some locations and significant emission reductions.
  • Installed a ground-mounted solar panel system at the Assumption, Illinois plant, expected to provide approximately 20% of the site’s power requirements.
  • Used Neste MY Renewable Diesel in all internal logistics vehicles at the Nokia engine plant in Finland, reducing emissions by approximately 130,000 kWh.
  • Harnessing energy from engine testing at Linnavuori, Finland, generating emission reductions of approximately 553,000 kWh.

Social Achievements

  • Launched global pulse surveys to understand employee experiences with working from home during COVID-19.
  • Established two employee resource groups (AGCO Global Women’s Network and AGCO Black Employee Network).
  • Provided diversity and inclusion training (TRAIT) to more than 6,000 employees.
  • Increased female representation in leadership to 16.4% from 14.1% the previous year.
  • Launched a sustainable poultry initiative in Zambia, supporting approximately 150 farmers, including 50 women.

Governance Achievements

  • Appointed a new Lead Independent Director.
  • Enhanced the duties of the Lead Independent Director role.
  • Appointed three new Committee chairs.
  • Adopted five-year term limits for Board leadership positions.
  • Updated AGCO’s Hedging and Pledging Policy.

Climate Goals & Targets

Long-term Goals:
  • Integrate Sustainability into Customer Engagement Activities Across All Core Brands by 2025
  • Deliver 100% Connected Fleet by 2025
  • Commercial Availability of Fendt E100 by 2025
Medium-term Goals:
  • Decrease GHG intensity by 20% by 2026.
  • Reach 60% renewable energy by 2026.
  • Increase Remanufacturing Business Revenue 150% by 2025.
  • Deliver Animal Welfare Innovations across AGCO’s Protein Brand Portfolio by 2025.
Short-term Goals:
  • Reduce recordable injury rate in 2021.
  • Increase the number of women in leadership positions to a minimum of 18% by 2021.
  • Engage 100% of global workforce in employee engagement survey and establish an engagement baseline in 2021.

Environmental Challenges

  • Climate risk and its impact on agriculture and food security.
  • Need to reduce carbon emissions from operations and product use.
  • Maintaining employee health and safety during a global pandemic.
  • Addressing stakeholder concerns about animal welfare and sustainable farming practices.
Mitigation Strategies
  • Setting goals to decrease GHG intensity by 20% and reach 60% renewable energy by 2026.
  • Investing in technologies to reduce carbon emissions of products in-use, including electrification and alternative fuel solutions.
  • Implementing a ‘ONEAGCO’ approach to health and safety with the FOCUS 2.0 program.
  • Engaging with experts on animal welfare and establishing research partnerships to improve animal care and productivity.

Supply Chain Management

Responsible Procurement
  • Supplier Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather events
Transition Risks
  • Regulatory changes
Opportunities
  • Development of energy-efficient products and services

Reporting Standards

Frameworks Used: GRI Standards, SASB

Sustainable Products & Innovation

  • Fendt E100 electric tractor
  • Xaver autonomous field robot
  • Smart Firmer
  • Momentum Planter with Load Logic™ system
  • Tecno AS250 and AS227 aviary layer systems

Awards & Recognition

  • RSC Distinction 2020 (Argentina)

Reporting Period: 2021

Environmental Metrics

Total Carbon Emissions:105,290 tCO2e/year (Scope 1+2 market-based)
Scope 1 Emissions:55,846 tCO2e/year
Scope 2 Emissions:49,445 tCO2e/year (market-based)
Renewable Energy Share:32% of total energy use
Total Energy Consumption:2,091,846 GJ/year
Water Consumption:466,160 m3/year (withdrawal)
Carbon Intensity:9.45 tCO2e/million USD net sales (2021)

ESG Focus Areas

  • Climate change
  • Soil health and carbon sequestration
  • Animal welfare
  • Decarbonizing operations and products
  • Employee health and safety
  • Diversity, Equity and Inclusion

Environmental Achievements

  • 8% reduction in emissions intensity (Scope 1 and 2) during a record year of growth
  • Increased use of renewable electricity across facilities to 52%
  • Increased renewable energy use to 32%
  • 12 manufacturing sites using 100% renewable electricity (up from 8)
  • 11% increase in Reman revenue
  • Launched 23 new Precision Ag solutions, including developments in targeted spraying to reduce herbicide use

Social Achievements

  • Reduced safety-related incidents by 12%
  • Introduced the global Focus 2.0 safety program
  • Reached 18% women in leadership
  • Appointed a dedicated global head of Diversity, Equity and Inclusion
  • Expanded unconscious bias training
  • 62% of employees participated in a global engagement and experience survey

Governance Achievements

  • Established a Sustainability Council and Core Team to drive sustainability initiatives
  • Incorporated the TCFD framework into sustainability program
  • Issued first TCFD Report
  • Improved Board oversight of sustainability through Governance Committee

Climate Goals & Targets

Long-term Goals:
  • Commercial availability of Fendt e100 by 2025
Medium-term Goals:
  • Deliver 100% connected fleet by 2025
  • Reach 20% women in leadership by 2022; 25% by 2030
Short-term Goals:
  • Reduce GHG intensity by 20% by 2026
  • Reach 60% renewable energy across global manufacturing operations by 2026
  • Increase remanufacturing business revenue 150% of 2020 baseline revenue by 2025
  • Achieve TCIR below 1.0

Environmental Challenges

  • Climate change impacts on farming and AGCO operations
  • Supply chain disruptions
  • Labor shortages in farming
Mitigation Strategies
  • Global climate risk assessment using TCFD framework
  • Smart Supply initiative to improve supply chain sustainability and resilience
  • Investing in precision agriculture and automation to address labor shortages
  • Developing low- and zero-emission tractors

Supply Chain Management

Responsible Procurement
  • Supporting local suppliers
  • Partnering with suppliers on sustainability
  • Supplier sustainability and resiliency awards program
  • Smart Supply initiative

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather events (drought, flooding)
  • Water stress
Transition Risks
  • Regulatory changes
  • Market shifts
Opportunities
  • Development of energy-efficient products
  • Precision agriculture solutions

Reporting Standards

Frameworks Used: GRI Standards: Comprehensive option, SASB, TCFD

Certifications: ISO 45001 (multiple manufacturing sites), ISO 9001 (multiple manufacturing sites), ISO 50001 (2 manufacturing sites)

UN Sustainable Development Goals

  • Goal 2: Zero Hunger
  • Goal 7: Affordable and Clean Energy
  • Goal 13: Climate Action

AAF supports projects contributing to food security, climate-smart agriculture, and animal welfare.

Sustainable Products & Innovation

  • Fendt e100 all-electric tractor
  • Concept hybrid tractor
  • Precision Planting technologies
  • AGCO Reman products

Awards & Recognition

  • German Association for Materials Management, Purchasing & Logistics innovation award (Smart Supply initiative)

Reporting Period: 2022

Environmental Metrics

Total Carbon Emissions:122,421 tCO2e (Scope 1 & 2 market-based)
Scope 1 Emissions:80,618 tCO2e
Scope 2 Emissions:41,803 tCO2e (market-based)
Scope 3 Emissions:19,562,638 tCO2e (use of sold products) + other categories
Renewable Energy Share:36% (manufacturing sites)
Total Energy Consumption:2,505,224 GJ (Complete Portfolio)
Water Consumption:467,440 m3 (withdrawal from municipal supply) + 258,509 m3 (withdrawal from other sources)
Carbon Intensity:7.57 tCO2e/million USD net sales (2022)

ESG Focus Areas

  • Climate Change
  • Soil Health
  • Decarbonization
  • Health and Safety
  • Animal Welfare
  • Diversity, Equity and Inclusion
  • Employee Well-being
  • Community Impact
  • Responsible Sourcing
  • Governance

Environmental Achievements

  • Exceeded Scope 1 and 2 emission intensity reduction target three years ahead of schedule by reducing emissions intensity by 31% compared to 2020 baseline.
  • Increased renewable energy use to 36% and renewable electricity to 63% in 2022.
  • 17 manufacturing sites using 100% renewable electricity.
  • Launched Radicle Agronomics, a suite of soil sampling tools.

Social Achievements

  • 14% reduction in safety incident rate.
  • 79% employee participation in 'Voices' survey, with 88% of employees proud to work for AGCO.
  • Launched several initiatives to promote diversity and inclusion.

Governance Achievements

  • Established a Board-level Sustainability Committee.
  • Continued to strengthen climate-related management processes.

Climate Goals & Targets

Long-term Goals:
  • Reach 25% women in leadership by 2030.
  • Develop a long-term emissions abatement strategy.
Medium-term Goals:
  • Reduce Scope 1 and 2 GHG intensity by 20% by 2026 (achieved).
  • Achieve TCIR below 1.5 by 2025.
  • Reach 75% employee engagement by 2025.
  • Launch Fendt e100 fully electric tractor (2024).
Short-term Goals:
  • Reduce water consumption in water-stressed areas.
  • Improve energy efficiency and switch to renewable energy (60% by 2026).

Environmental Challenges

  • Supply chain disruptions due to climate events (extreme weather, droughts, floods).
  • Europe's energy crisis.
  • High energy prices.
  • Increased regulation of water and fertilizer use.
  • Costs to develop new low-emission technologies.
Mitigation Strategies
  • Localizing more suppliers, dual-sourcing critical components, and investing in verticalization.
  • Reducing natural gas use, improving building insulation, and installing electric heat pumps in European sites.
  • Implementing energy efficiency measures and increasing renewable energy use.
  • Actively engaging with industry associations and monitoring regulatory developments.
  • Investing 3.5% of revenue in R&D for low-emission technologies and processes.

Supply Chain Management

Supplier Audits: 500 largest tier 1 suppliers assessed using EcoVadis platform.

Responsible Procurement
  • Supplier Code of Conduct
  • EcoVadis platform for ESG assessment
  • Conflict minerals policy

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather events impacting suppliers and supply infrastructure.
  • Reduced crop yields due to extreme weather.
  • Increased temperatures reducing crop yields.
  • Financial impacts on company assets due to climate hazards.
Transition Risks
  • Increased operational costs due to carbon pricing.
  • Increased regulation of water and fertilizer use.
  • Costs to develop new low-emission technologies.
Opportunities
  • Develop products supporting carbon sequestration.
  • Improve energy efficiency and switch to renewable energy.
  • Develop new low-emission technologies and processes.

Reporting Standards

Frameworks Used: GRI Standards, SASB Standards, TCFD Framework, CDP Climate Change Questionnaire

Certifications: ISO 45001 (some manufacturing sites), ISO 9001 (some manufacturing sites)

UN Sustainable Development Goals

  • Goal 2 (Zero Hunger)
  • Goal 7 (Affordable and Clean Energy)
  • Goal 13 (Climate Action)

AGCO Agriculture Foundation supports initiatives related to food security, renewable energy, and climate change mitigation.

Sustainable Products & Innovation

  • Fendt e100 electric tractor
  • AGCO Power CORE engines compatible with renewable diesel
  • Radicle Agronomics soil sampling tools
  • Precision agriculture technologies

Awards & Recognition

  • Sustainable Company of the Year at Enablon’s Sustainable Performance Forum
  • Second-highest report card score in Churchill Risk Control Awards Program

Reporting Period: 2023

Environmental Metrics

Scope 1 Emissions:64,126 tCO2e (manufacturing); 79,541 tCO2e (complete portfolio)
Scope 2 Emissions:28,768 tCO2e (market-based, manufacturing); 37,999 tCO2e (market-based, complete portfolio)
Scope 3 Emissions:21,435,904 tCO2e (estimated)
Renewable Energy Share:39% (manufacturing)
Total Energy Consumption:2,178,437 GJ (manufacturing); 2,505,470 GJ (complete portfolio)
Water Consumption:512,133 m³ (municipal) + 339,338 m³ (other) (manufacturing)
Waste Generated:93,324 metric tons (total); 83,839 metric tons (non-hazardous)
Carbon Intensity:6.45 tCO2e/million USD net sales (manufacturing)

ESG Focus Areas

  • Climate Change
  • Decarbonization
  • Soil Health
  • Animal Welfare
  • Health and Safety
  • Workforce Diversity
  • Community Investment
  • Responsible Sourcing
  • Ethics and Compliance

Environmental Achievements

  • 15% reduction in Scope 1 and 2 emission intensity and 3% reduction in absolute emissions from 2022
  • 11% reduction in energy intensity since 2022
  • 72% renewable electricity use across manufacturing sites
  • Launched Fendt e100 Vario, the first battery-powered electric tractor
  • Developed Fendt e100 Vario Range Extender concept using fuel cells

Social Achievements

  • 15% reduction in Total Case Incident Rate (TCIR)
  • 88% of employees reported being proud to work for AGCO
  • 71% employee engagement index (2% increase from 2022)
  • Expanded AGCO Finance Climate Journey Fund to €100 million to support farmers' transition to climate-smart practices

Governance Achievements

  • 30% of Board directors are women
  • 30% of Board directors are ethnically diverse
  • Refreshed Global Code of Conduct

Climate Goals & Targets

Long-term Goals:
  • Reduce absolute Scope 1 and 2 emissions by 90% by 2050
Medium-term Goals:
  • Reduce absolute Scope 1 and 2 emissions by 55% by 2033
  • Achieve 90% renewable electricity for non-manufacturing sites by 2033
  • Electrify company vehicles by 2033
Short-term Goals:
  • Reduce water consumption by 10% by 2026
  • Divert >90% non-hazardous waste from landfills by 2026
  • Reach 60% renewable energy by 2026
  • Increase remanufacturing revenue to 150% of 2020 baseline by 2025
  • Achieve a TCIR <1.5 by 2025
  • Reach 75% employee engagement index by 2025

Environmental Challenges

  • Climate-related extreme weather events impacting supply chains and crop yields
  • Increased regulation of water and fertilizer use
  • Costs of developing new low-emission technologies
  • High energy prices impacting operating costs
  • Supply chain disruptions due to various factors (geopolitical, pandemic, etc.)
Mitigation Strategies
  • Localizing suppliers, dual-sourcing critical components, investing in verticalization
  • Developing technologies to build resilience for farmers (precision ag, smart machines)
  • Investing in R&D for low-emission technologies and alternative fuels
  • Implementing energy efficiency measures and increasing renewable energy use
  • Implementing risk management strategies for supply chain resilience (dual sourcing, risk-based sourcing)

Supply Chain Management

Supplier Audits: EcoVadis assessment of top 500 tier 1 suppliers

Responsible Procurement
  • Supplier Code of Conduct
  • EcoVadis assessment
  • Conflict Minerals Policy
  • Dual sourcing for critical components

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather events
  • Flooding
  • Drought
  • Wildfires
  • Heat stress impacting crop yields
Transition Risks
  • Carbon pricing
  • Increased regulation of water and fertilizer use
  • Costs of developing low-emission technologies
Opportunities
  • Developing products that support carbon sequestration
  • Improving energy efficiency and switching to renewable energy
  • Developing low-emission products and services

Reporting Standards

Frameworks Used: GRI Standards, SASB Standards, TCFD Framework

Certifications: ISO 14001, ISO 45001, ISO 50001

Third-party Assurance: No third-party assurance for non-financial data

UN Sustainable Development Goals

  • Goal 7 (Affordable and Clean Energy)
  • Goal 13 (Climate Action)
  • Goal 2 (Zero Hunger)
  • Goal 8 (Decent Work and Economic Growth)
  • Goal 12 (Responsible Consumption and Production)

Initiatives contribute to these goals through decarbonization efforts, sustainable farming solutions, and responsible business practices.

Sustainable Products & Innovation

  • Fendt e100 Vario electric tractor
  • AGCO Power CORE engines
  • Precision Planting technologies

Awards & Recognition

  • Sustainable Tractor of the Year (Fendt e107 V Vario)
  • Engine of the Year (AGCO Power CORE75)
  • DLG AgriFuture Concept Award
  • AGRITECHNICA Silver Innovation Awards
  • CropLife IRON Showstopper Award