ADM, Cargill & ofi-backed supply chain intelligence platform secures Series A funding – foodingredientsfirst.com

Report on Tract’s Series A Funding and Contribution to Sustainable Development Goals

Executive Summary

Tract, a provider of traceability and sustainability data solutions, has secured €18.6 million (US$21.6 million) in Series A funding. This investment is designated for the expansion of its supply chain intelligence platform, which is purpose-built for the global agri-food industry. The platform aims to integrate supplier data with procurement processes, thereby fostering more resilient and sustainable supply chains. This initiative directly supports the achievement of several United Nations Sustainable Development Goals (SDGs), particularly those related to responsible production, climate action, and global partnerships.

Alignment with SDG 12: Responsible Consumption and Production

The core function of the Tract platform is to enhance transparency and accountability in agri-food supply chains, which is central to SDG 12. It provides a mechanism for large-scale CPG and commodity-trading companies to ensure their sourcing practices are sustainable and compliant with international standards.

• Supply Chain Mapping: The platform allows companies to map their complete supply chains, from the source to the final product.
• Sustainability Data Management: It facilitates the collection, management, and reporting of Environmental, Social, and Governance (ESG) metrics, making them more consistent and actionable.
• Risk Monitoring: Companies can monitor sourcing risks related to environmental and social factors, enabling proactive management.
• Regulatory Compliance: The tool is designed to help businesses meet stringent regulatory requirements, such as the EU Deforestation Regulation, thereby promoting responsible production patterns.

Contribution to SDG 13 (Climate Action) and SDG 15 (Life on Land)

Tract’s platform is a critical tool for climate change mitigation and the protection of terrestrial ecosystems. By improving data visibility, it empowers companies to take concrete steps toward reducing their environmental footprint.

1. Climate Resilience: The platform helps businesses build more resilient supply chains in the face of challenges posed by climate change.
2. Emissions Transparency: Enhanced traceability is essential for making carbon emissions transparent throughout the value chain, which is a prerequisite for effective climate action.
3. Preventing Deforestation: By enabling compliance with anti-deforestation regulations, the platform directly contributes to the goals of SDG 15, which aims to protect forests and halt biodiversity loss. This is particularly relevant for commodities like cocoa, coffee, and corn.

Advancing SDG 2 (Zero Hunger) and SDG 8 (Decent Work and Economic Growth)

A stable and equitable food system is foundational to achieving Zero Hunger (SDG 2). Tract’s focus on creating resilient and efficient supply chains supports this objective by mitigating disruptions to food availability. Furthermore, the platform’s emphasis on transparency and efficiency can lead to improved economic outcomes and working conditions across the value chain, aligning with the principles of SDG 8.

• Food System Stability: Resilient supply chains are the foundation of a more equitable and sustainable food system, ensuring a stable flow of agricultural goods.
• Value Chain Efficiency: By streamlining reporting and data management, the platform reduces inefficiencies, allowing resources to be redirected toward creating larger-scale impact for both people and the planet.

Fostering SDG 17: Partnerships for the Goals

The establishment and funding of Tract exemplify a multi-stakeholder partnership, a key component of SDG 17. The initiative was collaboratively developed by major industry players to address shared challenges, demonstrating a commitment to collective action.

Founding and Investment Partners

1. Founding Agri-Food Companies: The platform was initiated by a consortium of industry leaders, including ADM, Cargill, Louis Dreyfus Company, and Olam Food Ingredients (ofi).
2. Lead Investor: The Series A funding round was led by Icos Capital.
3. Additional Investment: Rabo Investments also participated in the funding round.

This collaborative approach was designed to create a shared, industry-aligned platform, avoiding the development of incompatible and inefficient proprietary systems. The vision is for Tract to operate as an independent, co-owned industry initiative that drives systemic change in supply chain management for the entire agri-food sector.

Analysis of the Article in Relation to Sustainable Development Goals (SDGs)

1. Which SDGs are addressed or connected to the issues highlighted in the article?

The article discusses a supply chain intelligence platform for the agri-food industry, which connects to several Sustainable Development Goals. The primary focus on sustainability, traceability, climate action, and collaboration directly addresses the following SDGs:

• SDG 9: Industry, Innovation and Infrastructure: The article is centered on a technological innovation—the Tract platform—designed to build “smarter and more resilient” supply chain infrastructure for the agri-food industry. The €18.6 million funding highlights investment in this new infrastructure.
• SDG 12: Responsible Consumption and Production: The platform enables companies to “manage sustainability data,” “monitor sourcing risk,” and achieve a “sustainable and transparent supply chain.” This directly supports the goal of ensuring sustainable consumption and production patterns, particularly within the global agri-food sector.
• SDG 13: Climate Action: The article explicitly states that the platform helps businesses address “climate change challenges” and supports “advancing climate mitigation action.” It aims to make emissions “transparent” and turn “complex supply chain data into real climate action.”
• SDG 15: Life on Land: A key feature mentioned is helping companies meet regulatory requirements like the “EU Deforestation Regulation.” The platform’s role in supply chain traceability is described as “essential in preventing deforestation,” which is a core component of protecting terrestrial ecosystems.
• SDG 17: Partnerships for the Goals: The formation of Tract is a collaborative effort. The article highlights that major agri-food companies like ADM, Cargill, and others came together to create a “shared platform.” This multi-stakeholder partnership, which also includes investors and is “EU-backed,” exemplifies the spirit of SDG 17.

2. What specific targets under those SDGs can be identified based on the article’s content?

Based on the functions and goals of the Tract platform described in the article, several specific SDG targets can be identified:

1. SDG 9: Industry, Innovation and Infrastructure

   • Target 9.4: By 2030, upgrade infrastructure and retrofit industries to make them sustainable, with increased resource-use efficiency and greater adoption of clean and environmentally sound technologies and industrial processes. The Tract platform is a technology designed to make agri-food supply chains (an industrial process) more sustainable and efficient.

2. SDG 12: Responsible Consumption and Production

   • Target 12.6: Encourage companies, especially large and transnational companies, to adopt sustainable practices and to integrate sustainability information into their reporting cycle. The article states that Tract helps “large CPG and commodity-trading companies” to “manage sustainability data” and provides “industry-aligned metrics for traceability and transparency and a streamlined reporting process.”

3. SDG 13: Climate Action

   • Target 13.3: Improve education, awareness-raising and human and institutional capacity on climate change mitigation, adaptation, impact reduction and early warning. The platform builds institutional capacity by providing companies with the data and intelligence needed to “turn complex supply chain data into real climate action” and make emissions “transparent.”

4. SDG 15: Life on Land

   • Target 15.2: By 2020, promote the implementation of sustainable management of all types of forests, halt deforestation, restore degraded forests and substantially increase afforestation and reforestation globally. The platform directly supports this target by enabling companies to comply with the “EU Deforestation Regulation” and using traceability to “prevent deforestation.”

5. SDG 17: Partnerships for the Goals

   • Target 17.17: Encourage and promote effective public, public-private and civil society partnerships, building on the experience and resourcing strategies of partnerships. The article describes Tract as a collaborative venture between major private companies (ADM, Cargill, etc.), backed by the EU (a public entity), and funded by investment firms, representing a clear public-private partnership.

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

The article implies several indicators that can be used to measure progress towards the identified targets:

• Reporting on Sustainability Practices (for Target 12.6): The article mentions the platform’s ability to help companies manage “ESG metrics” and “sustainability data.” An implied indicator is the number of companies using the platform to report on sustainability performance and the consistency of these reports.
• Deforestation-Free Supply Chains (for Target 15.2): The platform’s function to help meet the “EU Deforestation Regulation” implies an indicator related to the volume or percentage of commodities (like cocoa, coffee, corn) sourced through verified deforestation-free supply chains.
• Transparency in Emissions (for Target 13.3): The statement about making emissions “transparent” suggests an indicator such as the level of greenhouse gas emissions data captured and reported across the supply chains of participating companies.
• Investment in Sustainable Infrastructure (for Target 9.4): The article explicitly states a “€18.6 million (US$21.6 million) Series A funding.” This figure serves as a direct financial indicator of investment in developing and scaling sustainable industrial technology.
• Strength of Partnerships (for Target 17.17): The collaboration itself is an indicator. The progress can be measured by the number of founding partners and new companies joining the platform, demonstrating the growth of this multi-stakeholder initiative.

4. Table of SDGs, Targets, and Indicators

Source: foodingredientsfirst.com