- Details progress against its ambition to be the most innovative, customer-centric, inclusive and sustainable materials science company in the world
- Continues the Company's 19-year legacy of transparent and voluntary reporting
- Comprehensive disclosures with limited assurance against the GRI Sustainability Standards and the Greenhouse Gas Protocol
MIDLAND, Mich., June 19, 2023 -- Dow Inc. (NYSE: DOW) today released its INtersections Progress Report, demonstrating how the Company's continued focus and actions align to its ambition and goal to deliver value growth; best-in-class performance; and innovative, sustainable solutions to address global challenges.
Dow's INtersections Progress Report outlines the performance and management of its commitment to deliver long-term value for all of the Company's stakeholders while also addressing environmental, social and governance priorities. The integrated, comprehensive report continues a total 19 consecutive years of voluntary sustainability reporting and five years of inclusion, diversity and equity reporting.
"Guided by our ambition, we are using our expertise, products, technologies and partnerships to meet the evolving needs of our customers while leading the transition to a more sustainable and inclusive future," said Dow Chair and CEO Jim Fitterling. "Every day we are becoming a stronger, more competitive and future-ready company that is well-positioned to continue delivering value to our customers, employees, shareholders and communities."
Key highlights from the report, which is based on full-year 2022 data, include:
Advancing Dow's strategy to Decarbonize & Grow, while achieving carbon neutrality by 2050.
- Reached significant milestones toward the planned construction of the world's first net-zero Scope 1 and 2 carbon emissions integrated ethylene cracker and derivatives site, including a preliminary investment decision in 2022. Progress continues with Fluor contracted to provide front-end engineering and design, procurement and construction management services; and Linde was selected as the industrial gas partner to supply clean hydrogen and nitrogen. To be located at Dow's Fort Saskatchewan site in Alberta, Canada, the project is part of Dow's path to increase its underlying earnings by more than $3 billion per year while also reducing its global CO2 emissions by 30% by 2030 versus a 2005 baseline.
- Outlined detailed carbon reduction plans for each of Dow's 25 highest carbon-emitting sites, which collectively account for approximately 95% of its Scope 1 and 2 carbon emissions.
- Announced a joint development agreement with X-energy to install the first grid-scale advanced nuclear reactor for Dow's UCC1 Seadrift Operations manufacturing site in Texas. The project is expected to provide the site with safe, reliable, zero-carbon emissions power and steam.
Partnering across value chains to build materials ecosystems to collect, reuse or recycle plastic waste and meet customers' increasing demands for more sustainable and circular products.
- Expanded our Stop the Waste sustainability target to Transform the Waste, with a new commitment to commercialize 3 million metric tons of circular and renewable solutions annually by 2030.
- Expanded partnership with Mura Technology to construct multiple world-scale advanced recycling facilities in the United States and Europe, with the goal of collectively adding as much as 600 kilotons of annual recycling capacity by 2030.
- Partnered to minimize and manage plastic pollution, including a collaboration with WM to address hard-to-recycle plastic films by enabling them to be placed directly into residential curbside recycling.
Taking action to drive inclusion, diversity and equity and create meaningful social impact.
- Achieved best-in-class employee resource group (ERG) participation, with 57.3% of employees participating in at least one of the Company's 10 ERGs. Dow's annual employee engagement survey shows ERG participants have 13 percentage points higher overall job satisfaction than non-ERG participants.
- Surpassed Dow's target for certified diverse supplier spend by 12%, achieving approximately $275 million globally and retaining 84% of diverse suppliers.
- Leveraged our people and partnerships to advance community-driven solutions around the world, resulting in 75,000 people benefitting from increased access to community resources; 40,000 students improving academic performance or earning credentials; and 136,000 people gaining access to safe, affirming and inclusive environments.
Enhancing governance, transparency and accountability.
- Maintained Dow's clear link to pay-for-performance by adding a quantifiable carbon emissions reduction metric to its long-term incentive compensation program, and significantly advanced Scope 3 reporting methodology as the Company works toward setting specific targets.
- Continued the Company's focus on Board refreshment and expertise – electing one new Director in 2022 – and outpacing the S&P 500 for board diversity.
- Enhanced structural oversight and responsibility for environmental, social and governance progress and enterprise risk management within Board Committee charters.
The 2022 INtersections Progress Report includes disclosures prepared in accordance with the Global Reporting Initiative (GRI) Standards and the Greenhouse Gas (GHG) Protocol. The report also includes disclosures aligned with the Task Force on Climate-related Financial Disclosures (TCFD), Sustainability Accounting Standards Board (SASB), and World Economic Forum (WEF) Stakeholder Capitalism Metrics. Dow engaged Deloitte & Touche, LLP to perform a review engagement to obtain limited assurance on management's assertion related to disclosures presented in accordance with the 2021 GRI Sustainability Reporting Standards as of, and for the year ended, December 31, 2022, and related to Scopes 1, 2 and 3 emissions presented in accordance with the GHG Protocol Corporate Accounting and Reporting Standards under its Corporate Standards for the year ended December 31, 2022.
To learn more about Dow's industry-leading contributions toward a better, more sustainable and equitable future, please read our comprehensive 2022 Progress Report here. Convenient access to data and disclosures aligned with key environmental, social and governance reporting frameworks can be found here.
1 Union Carbide Corporation is a wholly-owned subsidiary of The Dow Chemical Company
Dow (NYSE: DOW) combines global breadth; asset integration and scale; focused innovation and materials science expertise; leading business positions; and environmental, social and governance leadership to achieve profitable growth and help deliver a sustainable future. The Company's ambition is to become the most innovative, customer centric, inclusive and sustainable materials science company in the world. Dow's portfolio of plastics, industrial intermediates, coatings and silicones businesses delivers a broad range of differentiated, science-based products and solutions for its customers in high-growth market segments, such as packaging, infrastructure, mobility and consumer applications. Dow operates manufacturing sites in 31 countries and employs approximately 37,800 people. Dow delivered sales of approximately $57 billion in 2022. References to Dow or the Company mean Dow Inc. and its subsidiaries. For more information, please visit www.dow.com or follow @DowNewsroom on Twitter.
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Cautionary Statement about Forward-Looking Statements
Certain statements in this press release are "forward-looking statements" within the meaning of the federal securities laws, including Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). Such statements often address expected future business and financial performance, financial condition, and other matters, and often contain words or phrases such as "anticipate," "believe," "estimate," "expect," "intend," "may," "opportunity," "outlook," "plan," "project," "seek," "should," "strategy," "target," "will," "will be," "will continue," "will likely result," "would" and similar expressions, and variations or negatives of these words or phrases.
Forward-looking statements are based on current assumptions and expectations of future events that are subject to risks, uncertainties and other factors that are beyond Dow's control, which may cause actual results to differ materially from those projected, anticipated or implied in the forward-looking statements and speak only as of the date the statements were made. These factors include, but are not limited to: sales of Dow's products; Dow's expenses, future revenues and profitability; the continuing global and regional economic impacts of the coronavirus disease 2019 ("COVID-19") pandemic and other public health-related risks and events on Dow's business; any sanctions, export restrictions, supply chain disruptions or increased economic uncertainty related to the ongoing conflict between Russia and Ukraine; capital requirements and need for and availability of financing; unexpected barriers in the development of technology, including with respect to Dow's contemplated capital and operating projects; Dow's ability to realize its commitment to carbon neutrality on the contemplated timeframe; size of the markets for Dow's products and services and ability to compete in such markets; failure to develop and market new products and optimally manage product life cycles; the rate and degree of market acceptance of Dow's products; significant litigation and environmental matters and related contingencies and unexpected expenses; the success of competing technologies that are or may become available; the ability to protect Dow's intellectual property in the United States and abroad; developments related to contemplated restructuring activities and proposed divestitures or acquisitions such as workforce reduction, manufacturing facility and/or asset closure and related exit and disposal activities, and the benefits and costs associated with each of the foregoing; fluctuations in energy and raw material prices; management of process safety and product stewardship; changes in relationships with Dow's significant customers and suppliers; changes in consumer preferences and demand; changes in laws and regulations, political conditions or industry development; global economic and capital markets conditions, such as inflation, market uncertainty, interest and currency exchange rates, and equity and commodity prices; business or supply disruptions; security threats, such as acts of sabotage, terrorism or war, including the ongoing conflict between Russia and Ukraine; weather events and natural disasters; disruptions in Dow's information technology networks and systems; and risks related to Dow's separation from DowDuPont Inc. such as Dow's obligation to indemnify DuPont de Nemours, Inc. and/or Corteva, Inc. for certain liabilities.
Where, in any forward-looking statement, an expectation or belief as to future results or events is expressed, such expectation or belief is based on the current plans and expectations of management and expressed in good faith and believed to have a reasonable basis, but there can be no assurance that the expectation or belief will result or be achieved or accomplished. A detailed discussion of principal risks and uncertainties which may cause actual results and events to differ materially from such forward-looking statements is included in the section titled "Risk Factors" contained in the Company's Annual Report on Form 10-K for the year ended December 31, 2022 and the Company's subsequent Quarterly Reports on Form 10-Q. These are not the only risks and uncertainties that Dow faces. There may be other risks and uncertainties that Dow is unable to identify at this time or that Dow does not currently expect to have a material impact on its business. If any of those risks or uncertainties develops into an actual event, it could have a material adverse effect on Dow's business. Dow Inc. and TDCC assume no obligation to update or revise publicly any forward-looking statements whether because of new information, future events, or otherwise, except as required by securities and other applicable laws.
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