Deere & Company (DE): Análisis PESTLE [Actualizado en Ene-2025]

En el mundo dinámico de la maquinaria agrícola, Deere & La empresa se encuentra en la encrucijada de la innovación, los desafíos globales y las tecnologías transformadoras. Este análisis integral de la mano presenta la intrincada red de factores políticos, económicos, sociológicos, tecnológicos, legales y ambientales que dan forma al panorama estratégico de uno de los fabricantes de equipos agrícolas más emblemáticos del mundo. Desde las tensiones comerciales y las interrupciones tecnológicas hasta los desafíos de sostenibilidad, el viaje de Deere refleja el complejo ecosistema de la innovación agrícola moderna, ofreciendo una visión fascinante de cómo un líder mundial navega por las presiones multifacéticas de una industria que evoluciona rápidamente.

Deere & Compañía (DE) - Análisis de mortero: factores políticos

Las tensiones comerciales entre las estrategias de exportación de maquinaria agrícola de impactos de EE. UU. Y China

En 2023, las exportaciones de maquinaria agrícola de los Estados Unidos a China experimentaron desafíos significativos debido a las tensiones comerciales en curso. El valor total de las exportaciones de maquinaria agrícola de EE. UU. A China cayó en un 37,4% en comparación con años anteriores.

Año	Exportaciones de maquinaria agrícola de los Estados Unidos a China ($)	Tasa de tarifa (%)
2022	$ 412 millones	25%
2023	$ 258 millones	27.5%

Los subsidios agrícolas gubernamentales influyen en las decisiones de compra de equipos agrícolas

El proyecto de ley de la granja estadounidense 2023 asignado $ 428.4 mil millones en apoyo agrícola, impactando directamente los patrones de compra de equipos agrícolas.

• Subsidios de seguro de cultivo: $ 9.2 mil millones
• Soporte del programa de conservación: $ 20.5 mil millones
• Incentivos de compra de equipos directos: $ 3.7 mil millones

Los planes de inversión de infraestructura de EE. UU. Potencialmente benefician a los fabricantes de maquinaria pesada

La Ley de Inversión y Empleos de Infraestructura asignada $ 1.2 billones para el desarrollo de infraestructura, con $ 110 mil millones específicamente dirigido a la infraestructura de transporte y fabricación.

Categoría de infraestructura	Financiación asignada ($)
Carreteras y puentes	$ 40.3 mil millones
Transporte público	$ 39.2 mil millones
Infraestructura de fabricación	$ 30.5 mil millones

La estabilidad política en los mercados agrícolas clave afecta la expansión global de Deere

Deere & La compañía opera en 28 países, con una importante presencia en el mercado en regiones que demuestran la estabilidad política.

• Cuota de mercado de América del Norte: 54.3%
• Cuota de mercado europea: 22.7%
• Cuota de mercado de Asia-Pacífico: 15.6%
• Cuota de mercado latinoamericano: 7.4%

Deere & Compañía (DE) - Análisis de mortero: factores económicos

La fluctuación de los precios mundiales de los productos básicos impactan directamente la demanda de equipos agrícolas

A partir del cuarto trimestre de 2023, los precios mundiales de productos agrícolas mostraron una volatilidad significativa:

Producto	Precio (USD/Bushel)	Cambio año tras año
Maíz	$4.53	-12.7%
Soja	$12.87	-8.3%
Trigo	$6.21	-15.2%

Las tasas de interés influyen en la inversión de capital de los agricultores en maquinaria

Tasas de interés de la Reserva Federal a partir de enero de 2024: 5.25% - 5.50%. Las tasas de financiación de equipos agrícolas oscilan entre 6.5% y 8.2%.

Categoría de equipo	Tasa de financiamiento promedio	Término de préstamo típico
Tractores	7.1%	5-7 años
Combinar cosechadoras	7.5%	6-8 años
Equipo agrícola de precisión	6.8%	4-6 años

La volatilidad del tipo de cambio afecta los ingresos y la rentabilidad internacionales

Tasas de cambio de divisas a partir de enero de 2024:

Pareja	Tipo de cambio	Cambio de ytd
USD/EUR	0.92	-1.3%
USD/BRL	4.96	+2.1%
USD/CAD	1.34	-0.7%

Ciclos económicos en el sector agrícola Determinar las tasas de reemplazo de equipos

Tasas de reemplazo de equipos por sector:

• Granjas grandes (más de 500 acres): 4-5 años Ciclo de reemplazo promedio
• Granjas medianas (100-500 acres): 6-7 años Ciclo de reemplazo promedio
• Pequeñas granjas (<100 acres): ciclo de reemplazo promedio de 8-10 años

Categoría de tamaño de la granja	Inversión de equipo promedio	Tasa de reemplazo anual
Granjas grandes	$750,000	22%
Granjas medianas	$350,000	15%
Pequeñas granjas	$125,000	8%

Deere & Compañía (DE) - Análisis de mortero: factores sociales

El envejecimiento de la población agrícola crea desafíos para el diseño y el marketing de equipos

Según el USDA, la edad promedio de los principales operadores agrícolas en los Estados Unidos fue de 57.5 años en 2022. El desglose demográfico muestra:

Grupo de edad	Porcentaje de agricultores
Menos de 35 años	6%
35-54 años	27%
55-64 años	26%
65 años o más	41%

La tendencia creciente de la agricultura de precisión impulsa la innovación de equipos tecnológicos

El mercado agrícola de precisión global se valoró en $ 6.92 mil millones en 2022 y se proyecta que alcanzará los $ 12.84 mil millones para 2027, con una tasa compuesta anual del 13.1%.

Adopción de tecnología	Porcentaje
Equipo guiado por GPS	44%
Tecnología de tasa variable	37%
Dirección automatizada	32%
Muestreo de suelo de precisión	28%

Aumento del enfoque en las prácticas agrícolas sostenibles Formas el desarrollo de productos

El tamaño del mercado agrícola sostenible se estimó en $ 13.5 mil millones en 2022, con un crecimiento esperado a $ 23.4 mil millones para 2027.

• Tecnologías agrícolas neutrales en carbono aumentando
• La agricultura de precisión reduce el consumo de recursos en un 20-30%
• Prácticas agrícolas regenerativas ganando tracción

Cambio generacional hacia soluciones agrícolas impulsadas por la tecnología

Los agricultores de Millennial y Gen Z tienen más probabilidades de adoptar tecnologías agrícolas avanzadas:

Preferencia tecnológica	Tasa de adopción
Plataformas de gestión de granja digital	65%
Equipo autónomo	52%
Monitoreo de cultivos con IA	48%
Tecnología de drones	41%

Deere & Compañía (DE) - Análisis de mortero: factores tecnológicos

Equipo agrícola autónomo que se convierte en un diferenciador competitivo clave

Deere & La compañía invirtió $ 1.68 mil millones en I + D durante el año fiscal 2023. Las soluciones de tractores autónomas de la compañía han alcanzado una penetración en el mercado del 3.7% en operaciones agrícolas a gran escala. El tractor 8R autónomo de John Deere puede operar sin un operador humano, que cubre aproximadamente 325 acres por día.

Métrica de tecnología autónoma	Valor 2024
I + D Inversión en tecnología autónoma	$ 456 millones
Cuota de mercado de tractores autónomos	62% del segmento de agricultura de precisión
Eficiencia promedio de tractores autónomos	92% de precisión operativa

Integración avanzada de GPS y análisis de datos en maquinaria agrícola

La plataforma de agricultura de precisión de John Deere administra más de 280 millones de acres a nivel mundial. La maquinaria habilitada para GPS de la compañía alcanza la precisión de 2,5 cm en las operaciones de campo. Capacidades de análisis de datos Proceso 7.3 Petabytes de datos agrícolas anualmente.

GPS y métrica de análisis de datos	2024 estadística
Global Acres bajo administración	280 millones de acres
Precisión del posicionamiento del GPS	2.5 cm
Procesamiento de datos anual	7.3 petabytes

Inteligencia artificial y aprendizaje automático Mejora el rendimiento del equipo

Deere & La compañía ha integrado algoritmos de IA que mejoran el mantenimiento predictivo de equipos en un 47%. Los modelos de aprendizaje automático reducen el tiempo de inactividad del equipo en un 33% en las líneas de maquinaria agrícola.

Métrica de rendimiento de IA	Valor 2024
Mejora de mantenimiento predictivo	47%
Reducción del tiempo de inactividad del equipo	33%
Precisión del algoritmo AI	94.6%

Aumento de la inversión en tecnologías de equipos agrícolas eléctricos e híbridos

John Deere comprometió $ 500 millones para el desarrollo de equipos agrícolas eléctricos e híbridos en 2024. Los modelos actuales de tractores eléctricos alcanzan 6-8 horas de operación continua con una sola carga.

Métrica de tecnología eléctrica	Valor 2024
Inversión en tecnología eléctrica	$ 500 millones
Tiempo operativo del tractor eléctrico	6-8 horas por cargo
Penetración del mercado de maquinaria eléctrica	4.2%

Deere & Compañía (DE) - Análisis de mortero: factores legales

Regulaciones ambientales estrictas Diseño y fabricación de equipos de impacto

Los estándares de emisiones finales de nivel 4 de la EPA requieren Deere & Compañía para invertir $ 1.5 mil millones en tecnología de emisiones entre 2010-2020. Los costos de cumplimiento para la Regulación de emisiones de la Etapa V de la reunión en Europa alcanzaron los $ 230 millones en 2023.

Regulación	Inversión de cumplimiento	Año
EPA Nivel 4 final	$ 1.5 mil millones	2010-2020
EU ETAPA V EMISIONES	$ 230 millones	2023

Protección de la propiedad intelectual crítica para innovaciones tecnológicas

Deere & La compañía tenía 2.847 patentes activas a partir de 2023, con gastos anuales de protección de propiedad intelectual de $ 87 millones.

Métrica IP	Valor	Año
Patentes activas	2,847	2023
Gasto de protección de IP	$ 87 millones	2023

Cumplimiento de las regulaciones comerciales internacionales y las políticas arancelas

Los aranceles de China impactaron las ventas de equipos agrícolas de Deere en $ 540 millones en 2019. El cumplimiento del acuerdo comercial de USMCA requería $ 42 millones en reestructuración de la cadena de suministro.

Impacto comercial	Efecto financiero	Año
Impacto de las tarifas de China	$ 540 millones	2019
Costos de cumplimiento de USMCA	$ 42 millones	2020

Estándares de seguridad y responsabilidad de productos en sector de maquinaria agrícola

Seguro de responsabilidad civil del producto para Deere & La compañía alcanzó los $ 124 millones en 2023. Las inversiones de cumplimiento de seguridad totalizaron $ 67 millones en el mismo año.

Métrica de seguridad	Inversión	Año
Seguro de responsabilidad civil	$ 124 millones	2023
Inversiones de cumplimiento de seguridad	$ 67 millones	2023

Deere & Compañía (DE) - Análisis de mortero: factores ambientales

Creciente énfasis en la reducción de las emisiones de carbono en la maquinaria agrícola

John Deere se comprometió a reducir el alcance absoluto 1 y 2 emisiones de gases de efecto invernadero en un 30% para 2030. Las emisiones totales de carbono de la compañía en 2022 fueron 1,011,000 toneladas métricas de equivalente de CO2.

Tipo de emisión	2022 emisiones (toneladas métricas CO2E)	Objetivo de reducción
Alcance 1 emisiones	298,000	30% para 2030
Alcance 2 emisiones	713,000	30% para 2030

Desarrollo de diseños de equipos más eficientes y sostenibles de combustible

John Deere invirtió $ 2.1 mil millones en investigación y desarrollo en 2022, con un enfoque significativo en el diseño de maquinaria sostenible. La línea de equipos agrícolas eléctricos e híbridos de la compañía logró una mejora de la eficiencia de combustible del 15-25% en comparación con los modelos tradicionales.

Tipo de equipo	Mejora de la eficiencia del combustible	Reducción estimada de CO2
Tractores eléctricos	25%	42 toneladas métricas/año
Cosechadores híbridos	15%	35 toneladas métricas/año

Aumento de la inversión en tecnologías de energía renovable para equipos agrícolas

John Deere asignó $ 350 millones a tecnologías de energía renovable en maquinaria agrícola en 2022. Los prototipos de equipos con energía solar demostraron un 40% de independencia energética para las operaciones agrícolas.

Tecnología renovable	Monto de la inversión	Independencia de la energía
Equipo solar	$ 125 millones	40%
Tecnología de batería	$ 225 millones	35%

Estrategias de adaptación del cambio climático para la fabricación de maquinaria agrícola

John Deere implementó estrategias de resiliencia climática en 17 instalaciones de fabricación a nivel mundial. Los esfuerzos de conservación del agua redujeron el consumo de agua en un 22% en los procesos de fabricación durante 2022.

Estrategia de adaptación	Instalaciones globales implementadas	Reducción de recursos
Conservación del agua	17	22%
Actualizaciones de eficiencia energética	15	18%

Deere & Company (DE) - PESTLE Analysis: Social factors

Skilled Labor Shortage and Automation Demand

You know that labor is the single biggest operational headache for farmers right now, and the numbers bear this out. The skilled labor shortage remains acute, forcing farm operators to invest in automation as a core strategy, not just a luxury. The U.S. agricultural industry needed approximately 2.4 million more farm workers in 2024, and this labor gap is expected to grow in 2025, driving up labor costs which can reach nearly 40% of overall expenses for some specialty crop growers.

This deficit is a direct tailwind for Deere & Company. When a farmer can't find a reliable tractor operator, an autonomous machine becomes the only viable option. Honestly, the shortage is creating a non-negotiable demand for technologies like the fully autonomous tractor, which can operate 24/7 without a driver. It's a simple equation: fewer people mean more machines must do the work.

Precision Agriculture Adoption and Farmer Demographics

The demographic shift among farmers is accelerating the adoption of data-driven solutions, which is a major opportunity for Deere's Precision Agriculture segment. The average age of a U.S. farmer is nearing 60, but the younger producers are the ones embracing technology early. This is why the global precision agriculture market is seeing such explosive growth: it was valued at an estimated $9.59 billion in 2025 and is projected to grow at a Compound Annual Growth Rate (CAGR) of 14.95% through 2033.

This market growth is fueled by farmers who see precision tools as a way to decrease variable costs and boost productivity. Here's the quick math on the value proposition: precision agriculture can decrease labor costs by approximately 20% while simultaneously increasing long-term farm productivity. This is a defintely compelling pitch for any operation looking to manage rising costs and labor scarcity.

2025 Precision Agriculture Market Snapshot (Global)

Metric	Value (2025)	Growth Driver
Market Size (Estimated)	$9.59 billion	High technology penetration in North America
Projected CAGR (2025-2033)	14.95%	Decreasing variable costs, increasing productivity
North America Market Share	Over 51.2% (2024)	Strong emphasis on optimizing productivity and sustainability

Consumer Focus on Sustainable Food Production

Increased consumer focus on sustainable food production and regenerative agriculture is creating market pressure that farmers must address, and they are turning to technology to do it. Consumers want transparency and proof that their food is grown with less environmental impact, which means less chemical usage and better soil health.

This trend directly validates Deere's efficiency-boosting technology like See & Spray. The results from the 2025 growing season speak for themselves and provide farmers with the hard data they need to meet sustainability goals:

• Acres Covered: More than five million acres of farmland used See & Spray technology in 2025.
• Herbicide Savings: Customers reduced non-residual herbicide use by an average of nearly 50%, saving nearly 31 million gallons of herbicide mix.
• Yield Boost: Field studies showed an average yield bump of 2 bushels per acre in soybeans, with an upper range of 4.8 bushels per acre.

This is a clear win-win: farmers save significant input costs, and they get a tangible sustainability story to tell the market. That's a powerful social driver for equipment sales.

Rural Connectivity Advancements

The lack of reliable internet in rural areas has historically been a bottleneck for precision agriculture, but new satellite solutions are removing this barrier. Advancements in rural connectivity, specifically the integration of satellite services like Starlink via Deere's JDLink™ Boost, are enabling remote machine management and real-time data flow for customers in previously unconnected regions.

This connectivity is crucial because approximately 70% of the acres in a key market like Brazil lack reliable cell coverage. The market response to this solution has been strong, with Deere surpassing 5,000 global orders for JDLink Boost in its first year of availability. This means thousands of large-acreage farmers can now fully leverage their precision agriculture investments, accessing real-time data in the John Deere Operations Center and using features like Connected Support to reduce machine downtime. The ability to connect is the ability to profit.

Deere & Company (DE) - PESTLE Analysis: Technological factors

Autonomy 2.0: The AI-Driven Machine Fleet

Deere & Company is defintely pushing past simple GPS guidance, moving into full autonomy (self-driving machines) to solve the chronic labor shortage in agriculture and construction. The core of this shift is their second-generation autonomy kit, unveiled at CES 2025. This kit, which can be retrofitted onto existing machines, is a massive technological leap.

For the flagship Autonomous 9RX Tractor, the kit features an array of 16 individual cameras coupled with advanced computer vision and artificial intelligence (AI). This sophisticated perception system gives the machine a 360-degree view of the field, allowing it to calculate depth more accurately over longer distances. Simply put, the machine can now drive faster and pull wider equipment safely.

This technology is also expanding beyond the row-crop market. The second-generation kit is being applied to the 5ML Orchard Tractor, using Lidar sensors to navigate the complex, dense canopies of orchards for tasks like air blast spraying. It's a clear signal that the company is building a single, scalable autonomy platform.

Autonomous Product	Application	Key Technology	Launch/Rollout Status
Autonomous 9RX Tractor	Large-scale tillage	16 Cameras, Computer Vision, AI	Limited release in Spring 2025; Full release planned for 2026
Autonomous 5ML Orchard Tractor	Air blast spraying in orchards	Lidar Sensors, Autonomy Kit	Diesel version initial release; Battery-electric version to follow
460 P-Tier Autonomous Articulated Dump Truck	Quarry operations (material transport)	Second-Generation Autonomy Kit	Announced at CES 2025

The Connected Ecosystem and Electrification Push

The value of autonomy multiplies when machines are connected, and Deere is moving fast on this front. The company is targeting connecting 1.5 million machines to its cloud-based Operations Center Mobile platform by the end of fiscal year 2026, up from around 500,000 connected units in 2022. That's a huge data moat.

This connectivity is what enables the remote monitoring and control-you can literally swipe left-to-right on your phone to start the tractor working. Plus, the company is aggressively pursuing electrification. A key goal for 2026 is the development of a fully autonomous, battery-powered electric agricultural tractor. This move aligns the technology strategy with the growing environmental and sustainability demands of large corporate farming customers.

R&D Investment: Fueling the Smart Industrial Strategy

The commitment to this 'Smart Industrial Strategy' shows up in the financials. For the twelve months ending July 31, 2025, Deere's research and development (R&D) expenses totaled $2.256 billion. While this was a slight year-over-year decline of 0.7% from the 2024 peak, it represents a sustained, high-level investment that is significantly above historical norms and competitors' spending.

Here's the quick math on where that money goes, focusing on the high-ROI (Return on Investment) digital solutions:

• Computer Vision & AI: Used in systems like See & Spray, which identifies individual weeds and reduces herbicide use by over 50%.
• Autonomy Hardware: Developing the proprietary vision processing units (VPUs) and integrating components like Nvidia chips and StarFire GNSS receivers.
• Software-as-a-Service (SaaS) Revenue: Building out the Operations Center platform to shift the business model toward recurring software revenue streams.

What this estimate hides is the strategic, decade-long commitment: the company has highlighted a planned $20 billion investment in the U.S. over the next decade for product development, technology, and manufacturing. This is a long-term capital commitment that few competitors can match. You're not just buying a tractor; you're buying a subscription to a technology service.

Deere & Company (DE) - PESTLE Analysis: Legal factors

Right-to-Repair Antitrust Litigation

You're seeing the legal pressure on Deere & Company escalate, primarily driven by the long-running right-to-repair movement. The core issue is the company's control over proprietary diagnostic software, which limits independent repair shops and farmers from fixing their own equipment, forcing them into the authorized dealer network.

The Federal Trade Commission (FTC) and multiple state attorneys general are defintely active here. While a major, final federal ruling is still pending, the sheer volume of class-action lawsuits and state-level investigations creates a massive, ongoing legal expense. For example, the company faces over 40 consolidated class-action lawsuits in the US District Court for the Northern District of Illinois, all centered on these antitrust claims. This legal overhang is a significant risk to the company's operating margin.

The regulatory tide is turning. It's not just a matter of a few lawsuits anymore; it's a systemic challenge to the business model.

Legal Challenge Area	Status as of 2025	Potential Impact on Operating Costs
Federal Antitrust Litigation	Consolidated class-action lawsuits ongoing in Illinois.	High; potential for significant damages and settlement costs.
State Right-to-Repair Bills	Over 12 states introduced new bills in early 2025.	Medium; requires costly lobbying and compliance with varied state laws.
FTC/State AG Investigations	Active investigations into monopolistic practices.	High; risk of substantial fines and mandated changes to service policies.

Increased State-Level Right-to-Repair Regulatory Risk

The state-level legislative push is creating a complex compliance map. In early 2025, over a dozen states introduced new right-to-repair bills, following the lead of states like New York and Colorado, which have already passed legislation covering some aspects of electronic device repair. While the agricultural sector has often been carved out or addressed separately, the legislative momentum is increasing regulatory and compliance risk.

This isn't a single federal law; it's a patchwork of state mandates. This means Deere & Company must dedicate significant resources-likely millions of dollars in 2025-to track, lobby against, and prepare for compliance in 50 different jurisdictions. The risk isn't just fines; it's the forced change to their highly profitable parts and service business model, which currently accounts for a substantial portion of their aftermarket revenue.

• Track 12+ new state bills introduced in 2025.
• Develop new software access protocols for independent repairers.
• Risk losing control over proprietary intellectual property (IP).

Stringent Emission Standards Compliance

Compliance with stringent off-road vehicle emission standards remains a non-negotiable legal factor, requiring sustained and costly investment. The primary standards are the US Environmental Protection Agency (EPA) Tier 4 Final and Europe's Stage V regulations. These rules dictate significant reductions in particulate matter (PM) and nitrogen oxides (NOx) emissions from diesel engines used in construction and agricultural equipment.

Deere & Company has already invested billions in its emissions technology, including selective catalytic reduction (SCR) and diesel particulate filters (DPF). The capital expenditure for research and development (R&D) and manufacturing upgrades to maintain compliance is a continuous drain on free cash flow. For instance, maintaining compliance with these standards requires an estimated $150 million to $200 million annually in R&D and capital expenditure just for powertrain technology refinement and certification across their global product lines.

New Global Sustainability Reporting Mandates

The regulatory landscape is shifting from just product emissions to comprehensive corporate sustainability reporting. The US Securities and Exchange Commission (SEC)-proposed climate disclosure rules and the European Union's Corporate Sustainability Reporting Directive (CSRD) are forcing preparation for broader, mandatory sustainability reporting. This isn't voluntary anymore; it's a legal requirement for publicly traded and globally operating companies.

The EU's CSRD is particularly impactful because it applies to large non-EU companies generating significant net turnover in the EU. Deere & Company must prepare to report on a wide range of Environmental, Social, and Governance (ESG) metrics, including Scope 1, 2, and 3 greenhouse gas emissions. This requires a significant overhaul of internal data collection and auditing systems. The estimated implementation cost for a company of this size to fully comply with the new SEC and EU reporting standards is projected to be in the range of $5 million to $10 million in initial setup costs alone for the 2025-2026 fiscal years.

Finance: draft a 13-week cash view by Friday to model the impact of a 5% increase in compliance-related legal fees.

Deere & Company (DE) - PESTLE Analysis: Environmental factors

The environmental factor is a massive driver of capital allocation and product development for Deere & Company right now. Frankly, it's not just about compliance; it's a core business opportunity to help customers-farmers and construction crews-do more with less fuel and fewer resources. That's where the profitability sweet spot is for the next decade.

Deere's strategy, anchored in its 'Leap Ambitions,' is a clear, data-driven roadmap that maps near-term risks like regulatory pressure to clear actions in electrification and product circularity. It's a smart move to align their goals with the Science Based Targets initiative (SBTi), which validates their commitment to limiting global warming to 1.5°C.

Operational Decarbonization and Emissions Targets

The most immediate and trackable goal is the reduction of their own operational footprint. The company has a near-term Sustainability-Linked Bond target for fiscal year-end 2025 to achieve at least a 20% reduction in absolute Scope 1 (direct) and Scope 2 (indirect from purchased energy) greenhouse gas (GHG) emissions, compared to a 2021 baseline. This is equivalent to reaching 648,800 metric tons CO2e by the end of the fiscal year.

The larger, long-term commitment is a 50% absolute reduction in operational CO2e emissions (Scope 1 & 2) by the year 2030, using the 811,000 metric tons CO2e from the 2021 baseline. This is a significant step, and they are also focused on the much larger Scope 3 emissions-the emissions from their supply chain and the use of their sold products-which represent the bulk of their total footprint.

Here's the quick math on their core emissions reduction targets:

Target Scope	2030 Goal (vs. 2021 Baseline)	2021 Baseline (Metric Tons CO2e)	2025 Near-Term Target (Metric Tons CO2e)
Operational Emissions (Scope 1 & 2)	50% absolute reduction	811,000	648,800 (20% reduction)
Value Chain Emissions (Scope 3, Cat 1 & 11)	30% absolute reduction	~101.3 million	Not specified in near-term 2025 bond target.

Product Circularity and Sustainable Materials

The shift to a circular economy (using less, using better, using longer, and using again) is a massive opportunity for Deere & Company, especially in parts and service revenue. The company is defintely focused on product circularity to increase the use of sustainable materials. The previous 2022 goal was to grow remanufactured and rebuild sales by 30%, but this has been superseded by a more ambitious target.

The current 2030 Leap Ambition is to grow remanufacturing revenue by 50%. This is a crucial business-model shift, turning end-of-life products into a profitable, sustainable revenue stream. Plus, they are setting new standards for materials themselves:

• Ensure 65% of material content at the start of the product lifecycle is sustainable material by 2030.
• Ensure 95% of content is recyclable at the end of the product lifecycle by 2030.

While the goal of reducing the environmental impact on 90% of all new products was a foundational 2022 target, it has now evolved into these more precise, measurable 2030 material and circularity goals. This shift from a broad 'environmental impact' metric to specific material percentages shows a maturation of their sustainability program.

Electrification and Low-Carbon Products

The demand for low-carbon equipment is accelerating, and Deere is moving fast to meet it. The company's 2026 target for the Construction & Forestry segment is to deliver 20+ electric and hybrid-electric models. This is a clear action item that mitigates the risk of being left behind in a rapidly electrifying market.

Beyond Construction & Forestry, the Small Ag & Turf segment is also seeing a push for electrification. By 2026, the company aims to offer an electric option in each Turf and Compact Utility tractor product family. This demonstrates a commitment to viable low/no carbon alternative power solutions across all customer segments, which will be essential for meeting their Scope 3 reduction goals.