EDITORS NOTE


SUSTAINABILITY EDITION 2023


Climate Change, Sustainability, Agriculture, Energy, Food, Power, Shipping, Water, Supply Chains, Legal, Emissions, Solutions, Regenerative, Sourcing, Inclusion, Resilience, Ecosystems, Biodiversity.


Welcome to this special Sustainability edition of the Ghost In The Machine, in which we take a closer look at how some of the moves to transition the global economy are impacting commodity trading, agriculture, energy and shipping. Reducing emissions and improving carbon


sequestration in the agricultural sector is critical to reaching the global goal of net-zero emissions and fighting climate change, so how can this be scaled up? How is this being deployed in practical terms, PepsiCo outlines the pillars of its drive to encourage regenerative farming, align all aspects of its product portfolio with its comprehensive abatement strategy. Maritime decarbonisation will be one of the


many critical aspects for achieving sustainability, but aligning the efforts of the diverse array of stakeholders is a challenge, though by tackling the ‘dinosaur’ operational practice of ‘Sail Fast Then Wait’ via a contractual mechanism, which incentivizes


the sharing of both costs and benefits among owners, charters and cargo interests, fuel savings of 20% could be achieved, and the obstacle of split incentives overcome.


A further important element


will be efficient and liquid markets for the trading and clearing of risk management products related to the transition, we look at what is on offer and how these may evolve. Europe has ostensibly been


in the vanguard of global energy transition efforts over the past two decades. But as the shock of both the pandemic and Russia’s invasion of Ukraine have highlighted, divergent national interests, a lack of holistic and systemic thinking about how to effect transition, and often contradictory regulations and directives run the risk of too much ‘stick’, and not enough ‘carrots’ to drive much needed investment for this transition, above all when compared to the US Inflation Reduction Act and China’s drive for great self- sufficiency.


THE GHOST IN THE MACHINE


EDITORS IN CHIEF Eddie Tofpik


E: eddie.tofpik@admisi.com Marc Ostwald


E: marc.ostwald@admisi.com


PRODUCTION & CIRCULATION CREATIVE DESIGN Alfred Michelin


MARKETING Alfred Michelin


Simrat Kaur Sounthe


ADM CONTRIBUTORS Ana Yaluff


Eddie Tofpik Marc Ostwald Stuart Jackson


EXTERNAL CONTRIBUTORS Haris Zografakis Stefan Kramis


© 2023 COPYRIGHT ADM INVESTOR SERVICES INTERNATIONAL LIMITED - ALL RIGHTS RESERVED


ADM Investor Services International Limited, registered in England No. 2547805, is authorised and regulated by the Financial Conduct Authority [FRN 148474] and is a member of the London Stock Exchange. Registered office: 3rd Floor, The Minster Building, 21 Mincing Lane, London EC3R 7AG. A subsidiary of Archer Daniels Midland Company. The information within this publication has been compiled for general purposes only. Although every attempt has been made to ensure the accuracy of the information, ADM Investor Services International Limited (ADMISI) assumes no responsibility for any errors or omissions and will not update it. The views in this publication reflect solely those of the authors and not necessarily those of ADMISI or its affiliated institutions. This publication and information herein should not be considered investment advice nor an offer to sell or an invitation to invest in any products mentioned by ADMISI. © 2023 ADM Investor Services International Limited.


2 | ADMISI - The Ghost In The Machine | Sustainability Edition 2023


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