What the changes say
- ADM added comprehensive risks regarding ESG targets, carbon capture operations, and AI deployment.
- Tax law exposures were expanded, noting potential impacts from the U.S. One Big Beautiful Bill Act.
- Prior year risks concerning specific ongoing SEC and DOJ investigations and internal control material weaknesses were removed.
What changed since the prior 10-K
New
- NewOperational Risks
Geopolitical risks could disrupt global markets and negatively impact the Company’s business and financial results
ADM faces operational and financial risks from global political instability, trade tariffs, labor conditions, and environmental policies.
- NewOperational Risks
The Company is subject to a wide range of food safety and quality, manufacturing and labeling, occupational health and safety, environmental, and other regulatory requirements which may expose the Company to certain regulatory or reputational risks
Compliance with evolving food safety, manufacturing, and labeling regulations exposes ADM to regulatory scrutiny and reputational harm.
- NewOperational Risks
The Company is subject to various evolving regulations related to ESG matters which impacts the Company’s business and strategies, and could adversely affect its reputation, business and results of operations
Divergent global ESG regulations, including greenhouse gas emission rules, could increase ADM's compliance and operational costs.
- NewOperational Risks
ADM may not be able to achieve the goals and objectives, and ADM may not realize, on a timely basis or at all, the anticipated benefits of these investments and actions, any of which could adversely impact the Company’s reputation and business
ADM's carbon capture and storage operations face complex regulatory permitting hurdles and scaling uncertainties.
- NewOperational Risks
The Company’s goals and stakeholder expectations relating to ESG-related matters and sustainable practices may expose the Company to increased costs, reputational harm and other risks
Failure to achieve public ESG goals or facing anti-ESG stakeholder sentiment could harm ADM's reputation and business results.
- NewRegulatory Risks
Risks relating to regulations specifically affecting the agricultural sector and related industries, as well as those that affect the Company’s other business and practices, could adversely affect the Company’s business, reputation and operating results
Agricultural policies, low carbon fuel mandates, and traceability standards directly impact ADM's crop production and trade flows.
- NewRegulatory Risks
Changes in tax laws or exposure to additional tax liabilities could have a material impact on the Company’s financial condition and results of operations
Changes in tax laws, including the U.S. One Big Beautiful Bill Act, could adversely affect ADM's effective tax rates.
- NewRegulatory Risks
The Company’s inability to successfully upgrade its information and operational technology systems could have a material and adverse effect on the Company’s business, financial condition, and operational results
ADM is pivoting to regional IT upgrades, which may still encounter delays, costs, and execution challenges.
- NewRegulatory Risks
collection, storage, handling, use, disclosure, transfer, and security of personal data. Compliance with and interpretation of various data privacy regulations continue to evolve, and any violation could subject the Company to legal claims, regulatory penalties, and damage to its reputation
System breaches or failures could disrupt ADM's operations and violate evolving data privacy regulations.
- NewRegulatory Risks
The Company is subject to various technical, legal, and opportunistic-related risks relating to use of artificial intelligence and other emerging digital technologies
Leveraging artificial intelligence creates risks of data breaches, cybersecurity incidents, and rapid regulatory changes.
- NewOther Risks
The Company is involved in a number of legal proceedings that may result in adverse outcomes
Ongoing legal proceedings and lawsuits could divert management attention and result in excessive fines or adverse verdicts.
Dropped
- DroppedOperational Risks
Political instability and changes in trade policies could negatively impact the Company’s financial results
- DroppedOperational Risks
The Investigation and related events have had and may continue to have a material adverse impact on the Company
- DroppedOperational Risks
The risks described above have had and may in the future have a material adverse effect on the Company’s business, results of operations, financial condition and liquidity
- DroppedOperational Risks
The Company is subject to ongoing government investigations, and the timing for their resolution and outcome cannot be predicted
- DroppedOperational Risks
The Company identified a material weakness in the Company’s internal control over financial reporting, which could impact the Company’s ability to report its results of operations and financial condition accurately and in a timely manner
- DroppedOperational Risks
While the Company has implemented a remediation plan, the Company will not be able to conclude whether the steps the Company has taken will remediate the material weakness until a sustained period of time has passed to allow management to test the design and operational effectiveness of the new and enhanced controls
- DroppedOperational Risks
The Company may be impacted by carbon emission regulations in multiple regions throughout the globe
- DroppedOperational Risks
Operations could be impacted by deforestation regulations, including the European Union (EU) deforestation-free regulation as part of the EU Green Deal, and by Brazil's Amazon soy moratorium
Political instability and trade policy changes.
- DroppedOperational Risks
Food or feed risks derived from quality issues or off label product usage, occupational health and safety issues, and ineffective diversification programs may expose the Company to certain regulatory or reputational risks
SEC investigation into Nutrition segment intersegment sales.
- DroppedOperational Risks
The Company’s sustainable practices require oversight and robust monitoring requirements. The lack of unified reporting standards increases sustainability regulatory compliance and reporting requirements
Investigation impacts on business and stock price.
- DroppedRegulatory Risks
Regulations specifically affecting the agricultural sector and related industries; regulatory policies or matters that affect a variety of businesses; and taxation polices could adversely affect the Company’s operating results
Ongoing SEC and DOJ government investigations.
- DroppedRegulatory Risks
The Company’s inability to successfully complete its ongoing implementations of new enterprise resource planning (ERP) systems and upgrades of its information technology (IT) systems could have a material and adverse effect on the Company’s business, financial condition, and operational results
Material weakness in internal controls over financial reporting.
- DroppedRegulatory Risks
Data Security and Privacy
Remediation uncertainty for segment reporting material weakness.
- DroppedRegulatory Risks
Regulatory and Legal Compliance
- DroppedRegulatory Risks
Operational Risks and Reliability
Carbon emission regulations in multiple global regions.
- DroppedRegulatory Risks
Talent and Resource Challenges
EU deforestation-free regulations and Brazil's Amazon soy moratorium.
Reworded
- 90% rewrittenRegulatory Risks
The Company is subject to numerous laws, regulations, and mandates globally which could adversely affect the Company’s operating results and forward strategy
Added explicit mention that compliance failures with global laws could impact strategy, reputation, and liabilities.
- 82% rewrittenRegulatory Risks
The Company’s systems, processes, and sites are subject to cybersecurity and other incidents, which could expose the Company to operational and various regulatory risks
Expanded cybersecurity risks to specifically note email phishing attacks, ransomware, and industrial espionage.
Was: The Company’s IT systems, processes, and sites may suffer cybersecurity breaches, which could expose the Company to operational and various regulatory risks
- 71% rewrittenOperational Risks
The Company may fail to realize the benefits of or experience delays in the execution of its strategic priorities
Shifted focus to operational excellence, targeted cost reductions, and Nutrition segment operating leverage.
Was: The Company may fail to realize the benefits of or experience delays in the execution of its growth strategy
- 51% rewrittenOperational Risks
The Company is exposed to potential business disruption risks which could adversely affect the Company’s operating results and could result in increased expenses and liabilities
Added explicit examples of business disruption causes including strikes, war, terrorism, and environmental events.
Was: The Company is exposed to potential business disruption which could adversely affect the Company’s operating results
- 39% rewrittenOperational Risks
Transportation, inflationary impacts, and fluctuations in energy prices could affect the Company’s operating results
Added ocean freight availability and port operations as factors affecting transportation costs.
- 39% rewrittenStrategic and Economic Risks
The Company is subject to risks relating to global and regional economic downturns, which could adversely affect the Company’s operating results
Clarified that a global economic downturn could directly lead to reduced demand for agricultural commodities.
Was: The Company is subject to economic downturns and regional economic volatilities, which could adversely affect the Company’s operating results
- 39% rewrittenStrategic and Economic Risks
The Company’s risk management strategies may not be effective
Expanded risk management scope to include geopolitical and market risks alongside operational disruptions.
- 37% rewrittenRegulatory Risks
Information and operational technology systems are subject to interruptions or failures which may affect the Company’s ability to conduct its business
Broadened IT system dependency risk from key IT systems to key technology systems.
Was: Information technology systems are subject to interruptions or failures which may affect the Company’s ability to conduct its business
- 35% rewrittenOther Risks
Negative publicity has in the past and in the future may adversely affect the Company and the market price of its common stock
Was: Negative publicity has and may continue to adversely affect the Company and the market price of its common stock
- 35% rewrittenOperational Risks
The Company faces risks related to international conflicts, acts of terrorism, war, other geopolitical events, such as the ongoing Russia-Ukraine conflict, maritime piracy, and other economic disruptions
Was: The Company faces risks related to international conflicts, acts of terrorism or war, or other geopolitical events, such as the ongoing Russia-Ukraine war, Israel-Hamas war, sanctions, maritime piracy, and other economic disruptions
- 29% rewrittenOperational Risks
The Company has limited control over, may not realize the expected benefits of, and may be required to write down, its equity investments and joint ventures, and may not be able to monetize the investments at an attractive value when the Company decides to exit the investments
Was: The Company has limited control over and may not realize the expected benefits of its equity investments and joint ventures and may not be able to monetize the investments at an attractive value when the Company decides to exit the investments
- 24% rewrittenStrategic and Economic Risks
The Company has significant competition in the markets in which it operates and is subject to industry-specific risks which could adversely affect the Company’s operating results
All 27 risk factors
Headings as the filing states them, in filing order.
Operational Risks
- 01The Company is exposed to potential business disruption risks which could adversely affect the Company’s operating results and could result in increased expenses and liabilities51% rewritten
- 02Transportation, inflationary impacts, and fluctuations in energy prices could affect the Company’s operating results39% rewritten
- 03Human capital availability may not be sufficient to effectively support global operations
- 04The Company may fail to realize the benefits of or experience delays in the execution of its strategic priorities71% rewritten
- 05The Company has limited control over, may not realize the expected benefits of, and may be required to write down, its equity investments and joint ventures, and may not be able to monetize the investments at an attractive value when the Company decides to exit the investments29% rewritten
- 06The Company faces risks related to health epidemics, pandemics, and similar outbreaks
- 07The Company faces risks related to international conflicts, acts of terrorism, war, other geopolitical events, such as the ongoing Russia-Ukraine conflict, maritime piracy, and other economic disruptions35% rewritten
- 08Geopolitical risks could disrupt global markets and negatively impact the Company’s business and financial resultsNew
- 09The Company is subject to a wide range of food safety and quality, manufacturing and labeling, occupational health and safety, environmental, and other regulatory requirements which may expose the Company to certain regulatory or reputational risksNew
- 10The Company is subject to various evolving regulations related to ESG matters which impacts the Company’s business and strategies, and could adversely affect its reputation, business and results of operationsNew
- 11ADM may not be able to achieve the goals and objectives, and ADM may not realize, on a timely basis or at all, the anticipated benefits of these investments and actions, any of which could adversely impact the Company’s reputation and businessNew
- 12The Company’s goals and stakeholder expectations relating to ESG-related matters and sustainable practices may expose the Company to increased costs, reputational harm and other risksNew
Financial Risks
- 13Limitations on access to external financing could adversely affect the Company’s operating results due to its capital-intensive nature
Strategic and Economic Risks
- 14Agricultural commodities, agricultural commodity products, and non-agricultural commodity raw materials the Company procures, transports, stores, processes, and merchandises can be affected by various factors beyond the Company’s control
- 15The Company is subject to risks relating to global and regional economic downturns, which could adversely affect the Company’s operating results39% rewritten
- 16The Company has significant competition in the markets in which it operates and is subject to industry-specific risks which could adversely affect the Company’s operating results24% rewritten
- 17The Company’s risk management strategies may not be effective39% rewritten
Regulatory Risks
- 18The Company is subject to numerous laws, regulations, and mandates globally which could adversely affect the Company’s operating results and forward strategy90% rewritten
- 19Risks relating to regulations specifically affecting the agricultural sector and related industries, as well as those that affect the Company’s other business and practices, could adversely affect the Company’s business, reputation and operating resultsNew
- 20Changes in tax laws or exposure to additional tax liabilities could have a material impact on the Company’s financial condition and results of operationsNew
- 21The Company’s inability to successfully upgrade its information and operational technology systems could have a material and adverse effect on the Company’s business, financial condition, and operational resultsNew
- 22Information and operational technology systems are subject to interruptions or failures which may affect the Company’s ability to conduct its business37% rewritten
- 23The Company’s systems, processes, and sites are subject to cybersecurity and other incidents, which could expose the Company to operational and various regulatory risks82% rewritten
- 24collection, storage, handling, use, disclosure, transfer, and security of personal data. Compliance with and interpretation of various data privacy regulations continue to evolve, and any violation could subject the Company to legal claims, regulatory penalties, and damage to its reputationNew
- 25The Company is subject to various technical, legal, and opportunistic-related risks relating to use of artificial intelligence and other emerging digital technologiesNew
Other Risks
- 26The Company is involved in a number of legal proceedings that may result in adverse outcomesNew
- 27Negative publicity has in the past and in the future may adversely affect the Company and the market price of its common stock35% rewritten
Other Archer-Daniels-Midland 10-Ks
- FY2024 10-K risk factors32 risks
ADM faces substantial risks from ongoing SEC and DOJ investigations, material weaknesses in internal controls, and negative publicity related to its Nutrition segment accounting practices.
Filed Feb 20, 2025
About this page
The headings are the filing's own. The one-line readings and the overview are automated and can be wrong: read Item 1A of the 10-K for the exact wording.