These ESG innovations really exist: Bayer, Deere & Company, Argo Living Soils

Deere & Company brings science fiction to the field

When farmers use machines from Deere & Company to sow new seeds, the ExactShot™ system causes great amazement. Thanks to sensors and robot control, the system fertilizes with such precision that large amounts of fertilizer can be saved without having to accept lower yields. Almost even more revolutionary is the See & Spray technology: an AI-supported camera ensures that unwanted plants are treated with herbicide with pinpoint accuracy.** According to Deere itself, farmers have reduced their pesticide use by two-thirds with this technology, saving more than 8 million gallons of plant toxins. Precision approaches like those developed by Deere & Company reduce costs and protect soil, water, and endangered species.

The smart farming systems are controlled via the John Deere Operations Center, a digital platform that provides real-time data on field conditions, machine utilization, and performance metrics. Farmers can monitor their operations via smartphone or PC and make data-driven decisions – from sowing time to harvest. This is not only efficient and reduces costs but is also sustainable. Analysts are giving Deere & Company's shares a good rating: Following the second quarter figures in May 2025, numerous banks have raised their price targets. Examples include JPMorgan (price target USD 540, Neutral), Barclays (USD 530, Overweight) and Raymond James (USD 560, Outperform).

Bayer aims to become more innovative – Will acquisitions follow?

Analyst opinions are more mixed when it comes to seed specialist Bayer – the consensus rating is "Hold." Those analysts who are more optimistic believe that the efficiency program launched last year will be successful. The core of the strategy is further innovation around sustainability: The Company plans to generate EUR 3.5 billion in additional revenue through new seed generations and more precise crop protection solutions that are more targeted and resource-efficient with the help of digital tools. Bayer plans to become as innovative as John Deere already is. Acquisitions also seem possible for the Leverkusen-based company.

Argo Living Soils: Will this technology reduce our CO2 emissions?

The Canadian company Argo Living Soils was founded with the aim of being a driver of innovation. The young company develops and produces organic products such as biofertilizers, worm compost, and other additives that make agricultural soils more fertile in a natural way. The business model focuses on the conversion of biomass into biochar. This biochar improves soil quality in agriculture and is considered a sustainable alternative to artificial fertilizers.

But there is much more to the biochar produced by Argo Living Soils: the Company has developed a process to synthesize graphene from its biochar. This extremely stable carbon nanomaterial has a wide range of applications, such as an additive in asphalt to increase heat resistance or as a storage medium for hydrogen in energy systems. Argo Living Soils initially wants to use its graphene as an additive in construction and has already found partners for this. It recently entered into a research alliance with the technology company Graphene Leaders Canada with the aim of developing graphene nanoplatelets as an additive for ready-mixed concrete. The goals are to improve durability while reducing CO2 emissions in construction by around 20% through lower cement requirements. Argo Living Soils and its partners believe that this technology offers a significant lever for reducing CO2 emissions. According to the Karlsruhe Institute of Technology (KIT), concrete production is Germany's third-largest source of industrial greenhouse gas emissions.

1,000% in one year: What is in it for investors?

But does Argo Living Soils' approach also pay off for investors? Comparing the performance of Deere & Company and Bayer over a one-year period, the more innovative company John Deere is ahead with a return of 32.8% compared to Bayer, which lost 11% over the same period. The development of Argo Living Soils' share price, which rose by an incredible 1,061% over the course of a year, shows that the hunger for innovation is huge and that the market also offers excellent opportunities for small companies. Given its still low market capitalization of CAD 8.9 million and plans for the recently formed research alliance to deliver results by the end of the year, investors should keep an eye on ESG innovator Argo Living Soils. If the technology delivers what it promises, the Company is a takeover candidate – too many corporations are desperately looking for sustainable innovations.