Deere & Empresa (DE): Análise de Pestle [Jan-2025 Atualizado]

No mundo dinâmico das máquinas agrícolas, Deere & A empresa está na encruzilhada da inovação, desafios globais e tecnologias transformadoras. Essa análise abrangente de pestles revela a intrincada rede de fatores políticos, econômicos, sociológicos, tecnológicos, legais e ambientais que moldam o cenário estratégico de um dos fabricantes de equipamentos agrícolas mais icônicos do mundo. Desde tensões comerciais e interrupções tecnológicas até desafios de sustentabilidade, a jornada de Deere reflete o complexo ecossistema da inovação agrícola moderna, oferecendo um vislumbre fascinante da maneira como um líder global navega pelas pressões multifacetadas de uma indústria em rápida evolução.

Deere & Empresa (DE) - Análise de Pestle: Fatores Políticos

As tensões comerciais entre os EUA e a China afetam as estratégias de exportação de máquinas agrícolas

Em 2023, as exportações de máquinas agrícolas dos EUA para a China sofreram desafios significativos devido às tensões comerciais em andamento. O valor total das exportações de máquinas agrícolas dos EUA para a China caiu 37,4% em comparação com os anos anteriores.

Ano	Exportações de máquinas agrícolas dos EUA para a China ($)	Taxa tarifária (%)
2022	US $ 412 milhões	25%
2023	US $ 258 milhões	27.5%

Os subsídios agrícolas do governo influenciam as decisões de compra de equipamentos agrícolas

A conta da fazenda dos EUA de 2023 alocada US $ 428,4 bilhões no apoio agrícola, impactando diretamente os padrões de compra de equipamentos agrícolas.

• Subsídios de seguro de colheita: US $ 9,2 bilhões
• Suporte ao programa de conservação: US $ 20,5 bilhões
• Incentivos de compra de equipamentos diretos: US $ 3,7 bilhões

Os planos de investimento em infraestrutura dos EUA beneficiam potencialmente os fabricantes de máquinas pesadas

A Lei de Investimento de Infraestrutura e Empregos alocados US $ 1,2 trilhão para desenvolvimento de infraestrutura, com US $ 110 bilhões especificamente direcionado para a infraestrutura de transporte e fabricação.

Categoria de infraestrutura	Financiamento alocado ($)
Estradas e pontes	US $ 40,3 bilhões
Transporte público	US $ 39,2 bilhões
Infraestrutura de fabricação	US $ 30,5 bilhões

A estabilidade política nos principais mercados agrícolas afeta a expansão global de Deere

Deere & A empresa opera em 28 países, com presença significativa no mercado em regiões demonstrando estabilidade política.

• Participação de mercado norte -americana: 54,3%
• Participação de mercado européia: 22,7%
• Participação de mercado da Ásia-Pacífico: 15,6%
• Participação de mercado latino -americana: 7,4%

Deere & Empresa (DE) - Análise de Pestle: Fatores Econômicos

Os preços globais de commodities flutuantes afetam diretamente a demanda de equipamentos agrícolas

A partir do quarto trimestre 2023, os preços globais das commodities agrícolas mostraram volatilidade significativa:

Mercadoria	Preço (USD/bushel)	Mudança de ano a ano
Milho	$4.53	-12.7%
Soja	$12.87	-8.3%
Trigo	$6.21	-15.2%

As taxas de juros influenciam o investimento em capital agrícola em máquinas

Taxas de juros do Federal Reserve em janeiro de 2024: 5.25% - 5.50%. As taxas de financiamento de equipamentos agrícolas variam entre 6,5% e 8,2%.

Categoria de equipamento	Taxa de financiamento médio	Termo de empréstimo típico
Tratores	7.1%	5-7 anos
Combine colheitadeiras	7.5%	6-8 anos
Equipamento agrícola de precisão	6.8%	4-6 anos

A volatilidade da taxa de câmbio afeta a receita e a lucratividade internacionais

Taxas de câmbio em janeiro de 2024:

Par de moeda	Taxa de câmbio	Mudança do YTD
USD/EUR	0.92	-1.3%
USD/BRL	4.96	+2.1%
USD/CAD	1.34	-0.7%

Ciclos econômicos no setor agrícola determinam as taxas de reposição de equipamentos

Taxas de substituição de equipamentos por setor:

• Grandes fazendas (mais de 500 acres): 4-5 anos de reposição média ciclo
• Fazendas médias (100-500 acres): 6-7 anos de reposição média ciclo
• Pequenas fazendas (<100 acres): 8 a 10 anos de ciclo de reposição média

Categoria de tamanho da fazenda	Investimento médio de equipamento	Taxa de substituição anual
Grandes fazendas	$750,000	22%
Fazendas médias	$350,000	15%
Pequenas fazendas	$125,000	8%

Deere & Empresa (DE) - Análise de Pestle: Fatores sociais

A população agrícola envelhecida cria desafios para o design e marketing de equipamentos

De acordo com o USDA, a idade média dos principais operadores agrícolas nos Estados Unidos foi de 57,5 ​​anos em 2022. O colapso demográfico mostra:

Faixa etária	Porcentagem de agricultores
Abaixo de 35 anos	6%
35-54 anos	27%
55-64 anos	26%
65 anos ou mais	41%

Tendência crescente de precisão Agricultura impulsiona a inovação de equipamentos tecnológicos

O mercado global de agricultura de precisão foi avaliado em US $ 6,92 bilhões em 2022 e deve atingir US $ 12,84 bilhões até 2027, com um CAGR de 13,1%.

Adoção de tecnologia	Percentagem
Equipamento guiado por GPS	44%
Tecnologia da taxa variável	37%
Direção automatizada	32%
Amostragem de solo de precisão	28%

O aumento do foco nas práticas agrícolas sustentáveis ​​molda o desenvolvimento do produto

O tamanho do mercado de agricultura sustentável foi estimado em US $ 13,5 bilhões em 2022, com um crescimento esperado para US $ 23,4 bilhões até 2027.

• Tecnologias agrícolas neutros em carbono
• A agricultura de precisão reduz o consumo de recursos em 20 a 30%
• Práticas de agricultura regenerativa ganhando tração

Mudança geracional para soluções agrícolas orientadas pela tecnologia

Os agricultores milenares e da geração Z têm maior probabilidade de adotar tecnologias agrícolas avançadas:

Preferência de tecnologia	Taxa de adoção
Plataformas de gerenciamento agrícola digital	65%
Equipamento autônomo	52%
Monitoramento de culturas movidas a IA	48%
Tecnologia de drones	41%

Deere & Empresa (DE) - Análise de Pestle: Fatores tecnológicos

Equipamentos agrícolas autônomos se tornando o principal diferenciador competitivo

Deere & A empresa investiu US $ 1,68 bilhão em P&D durante o ano fiscal de 2023. As soluções de tratores autônomos da empresa atingiram uma penetração de mercado de 3,7% em operações agrícolas em larga escala. O trator 8R autônomo de John Deere pode operar sem um operador humano, cobrindo aproximadamente 325 acres por dia.

Métrica de tecnologia autônoma	2024 Valor
Investimento em P&D em tecnologia autônoma	US $ 456 milhões
Participação de mercado de tratores autônomos	62% do segmento de agricultura de precisão
Eficiência média de trator autônomo	92% de precisão operacional

Integração avançada de GPS e análise de dados em máquinas agrícolas

A plataforma de agricultura de precisão de John Deere gerencia mais de 280 milhões de acres em todo o mundo. A maquinaria habilitada para GPS da empresa atinge a precisão de 2,5 cm em operações de campo. Recursos de análise de dados Processo 7.3 Petabytes de dados agrícolas anualmente.

GPS e métrica de análise de dados	2024 Estatística
Global Acres sob gerenciamento	280 milhões de acres
Precisão de posicionamento do GPS	2,5 cm
Processamento anual de dados	7.3 Petabytes

Inteligência artificial e aprendizado de máquina Aprimorando o desempenho do equipamento

Deere & A empresa integrou algoritmos de IA que melhoram a manutenção preditiva do equipamento em 47%. Os modelos de aprendizado de máquina reduzem o tempo de inatividade do equipamento em 33% nas linhas de máquinas agrícolas.

Métrica de desempenho da IA	2024 Valor
Melhoria preditiva de manutenção	47%
Redução de tempo de inatividade do equipamento	33%
Precisão do algoritmo da AI	94.6%

Aumentar o investimento em tecnologias de equipamentos agrícolas elétricos e híbridos

John Deere comprometeu US $ 500 milhões ao desenvolvimento de equipamentos agrícolas elétricos e híbridos em 2024. Os atuais modelos de tratores elétricos atingem 6-8 horas de operação contínua com uma única carga.

Métrica de tecnologia elétrica	2024 Valor
Investimento em tecnologia elétrica	US $ 500 milhões
Tempo operacional do trator elétrico	6-8 horas por cobrança
Penetração do mercado de máquinas elétricas	4.2%

Deere & Empresa (DE) - Análise de Pestle: Fatores Legais

Regulamentos ambientais rigorosos afetam o projeto e a fabricação de equipamentos

Os padrões de emissões finais da EPA TIER 4 requerem Deere & Empresa para investir US $ 1,5 bilhão em tecnologia de emissões entre 2010-2020. Os custos de conformidade para atender aos regulamentos de emissões do estágio V na Europa atingiram US $ 230 milhões em 2023.

Regulamento	Investimento de conformidade	Ano
Final da EPA Tier 4	US $ 1,5 bilhão	2010-2020
Emissões de estágio V da UE	US $ 230 milhões	2023

Proteção da propriedade intelectual Crítica para inovações tecnológicas

Deere & A empresa detinha 2.847 patentes ativas a partir de 2023, com despesas anuais de proteção à propriedade intelectual de US $ 87 milhões.

Métrica IP	Valor	Ano
Patentes ativas	2,847	2023
Despesas de proteção IP	US $ 87 milhões	2023

Conformidade com regulamentos comerciais internacionais e políticas tarifárias

As tarifas da China impactaram as vendas de equipamentos agrícolas da Deere em US $ 540 milhões em 2019. A conformidade do contrato comercial da USMCA exigiu US $ 42 milhões em reestruturação da cadeia de suprimentos.

Impacto comercial	Efeito financeiro	Ano
Tarifas da China Impacto	US $ 540 milhões	2019
Custos de conformidade da USMCA	US $ 42 milhões	2020

Padrões de segurança e responsabilidade de produtos no setor de máquinas agrícolas

Seguro de responsabilidade de produto para Deere & A empresa atingiu US $ 124 milhões em 2023. Os investimentos em conformidade de segurança totalizaram US $ 67 milhões no mesmo ano.

Métrica de segurança	Investimento	Ano
Seguro de Responsabilidade do Produto	US $ 124 milhões	2023
Investimentos de conformidade de segurança	US $ 67 milhões	2023

Deere & Empresa (DE) - Análise de Pestle: Fatores Ambientais

Ênfase crescente na redução de emissões de carbono em máquinas agrícolas

John Deere se comprometeu a reduzir o escopo absoluto 1 e 2 emissões de gases de efeito estufa em 30% até 2030. As emissões totais de carbono da empresa em 2022 foram de 1.011.000 toneladas de CO2 equivalentes.

Tipo de emissão	2022 emissões (toneladas métricas)	Alvo de redução
Escopo 1 emissões	298,000	30% até 2030
Escopo 2 emissões	713,000	30% até 2030

Desenvolvimento de projetos de equipamentos mais eficientes em termos de combustível e sustentáveis

John Deere investiu US $ 2,1 bilhões em pesquisa e desenvolvimento em 2022, com foco significativo no design de máquinas sustentáveis. A linha de equipamentos agrícolas elétricos e híbridos da empresa alcançou uma melhoria de eficiência de combustível de 15 a 25% em comparação com os modelos tradicionais.

Tipo de equipamento	Melhoria da eficiência de combustível	Redução estimada de CO2
Tratores elétricos	25%	42 toneladas métricas/ano
Colheitadeiras híbridas	15%	35 toneladas métricas/ano

Aumento do investimento em tecnologias de energia renovável para equipamentos agrícolas

John Deere alocou US $ 350 milhões para tecnologias de energia renovável em máquinas agrícolas em 2022. Os protótipos de equipamentos movidos a energia solar demonstraram 40% de independência energética para operações agrícolas.

Tecnologia renovável	Valor do investimento	Independência energética
Equipamento movido a energia solar	US $ 125 milhões	40%
Tecnologia da bateria	US $ 225 milhões	35%

Estratégias de adaptação para mudanças climáticas para fabricação de máquinas agrícolas

John Deere implementou estratégias de resiliência climática em 17 instalações de fabricação em todo o mundo. Os esforços de conservação da água reduziram o consumo de água em 22% nos processos de fabricação durante 2022.

Estratégia de adaptação	Instalações globais implementadas	Redução de recursos
Conservação de água	17	22%
Atualizações de eficiência 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.