Eversheds Sutherland acted as sole external counsel to consortium of global food and agricultural industry leaders in sustainability JV

Eversheds Sutherland has acted as sole legal counsel to a consortium comprising leading global food and agricultural companies in a joint venture (JV) to develop and establish TRACT – a pioneering digital sustainability measurement platform.

TRACT provides a simplified, consistent and secure solution for reporting traceability and sustainability performance across industry supply chains. The easy-to-use platform enables its users to compare metrics and methodologies across multiple product categories all in one place for the first time.

Developed by and for the food and agriculture industry, TRACT is the result of a collaborative effort of more than 30 companies committed to driving positive change. Four leading global food and agriculture companies - Archer Daniels Midland Company (ADM), Cargill, Louis Dreyfus Company and Olam – provided the initial funding and talent for TRACT and worked with other companies and non-profit organisations to develop a digital platform that uses common metrics and methodologies.         

The food and agriculture sector faces unprecedented challenges, including the vulnerability of long-term supply chains, strict sustainability goals set by stakeholders and growing public and legislative pressure for greater transparency. TRACT will help meet these challenges and accelerate food and agriculture system transformation, by improving transparency from growers to retailers across industry supply chains.                                                   

Led by senior technology Partner Olaf Van Haperen, we advised on all elements of the highly complex, multijurisdictional initiative throughout the two-year period including corporate, commercial, employment and competition (merger control).

Notably, as part of the initiative, our team drew on its technical legal excellence to help secure a ruling from Brazil's antitrust authority, the Administrative Council for Economic Defense, approving the launch of the commercial platform. In doing so, the firm facilitated the setting of a legal precedent and a case study on how to advance sustainability goals without compromising competition.

Our team comprised: Partners Olaf van Haperen, Miriam van Ee, Michel Chatelin, Annique Bitterlich, Legal Director, as well as Head of Legal Project Management Wyn Jones, Principal Associate Eline van Nimwegen, Senior Associate Judith Vieberink and Associates Cornelius Litt, Natalia Toeajeva, Fons Leijten and Bianca Miguel.

TRACT is now officially established as an independent company, with a leadership team consisting of experienced senior leaders across food, agriculture, banking and technology.

Olaf Van Haperen, commented:

“This has been an exhilarating, legally ground-breaking initiative which we have had both the honour and the pleasure of advising this consortium on. Working so closely with such an impressive group of businesses and people for the last two years has been fantastic. To have also been part of a legal team who has helped to set a precedent in establishing guidelines pertaining to horizontal cooperations, and which may open the door to others harbouring similar ambitions in wanting to advance similar sustainability goals, is incredibly rewarding. We're thrilled."

Roel Van Poppel, TRACT'S Co-founding CEO, commented:

“This initiative has been a catalyst for significant cross-industry innovation on a global scale. Olaf and the Eversheds Sutherland team have become an extension of our own throughout the last two years, helping to secure important legal firsts while helping to make this initiative a success. Their tenacity to secure the very best outcome for us as a client is admirable and we look forward to continuing our relationship with them."

We have built a formidable track record in helping to successfully establish other major sustainability-related JV entities. We previously advised a consortium, comprising six of the leading corporations in the global commodities industry, on the design, build and operation of 'Covantis'– a transformational blockchain platform for global trade execution.