Message from Our Chair and CEO

When asked what sets Dow apart, I often start with our exceptional team’s ambition to be the world’s most innovative, customer-centric, inclusive and sustainable materials science company. Fueled by the passion of Team Dow, our ambition inspires best-in-class performance and contributes to long-term value creation for our customers, shareholders and society.

In 2023, we put our ambition into action in important ways, while also increasing our accountability and transparency. We responded to our customers’ demand for products, technologies and services that are lower-emissions, more circular, and continue delivering performance benefits. Through our Decarbonize & Grow and Transform the Waste strategies, we progressed our sustainability targets for greenhouse gas (GHG) emissions reductions and to help end plastic waste. We also took steps to build an even greater culture of inclusion, diversity and equity (ID&E) in our workplace and communities. We did this through strategic collaborations with external partners and with our employee resource groups (ERGs). Here is a summary of our 2023 progress.

Protecting the Climate

We are taking actions to both mitigate and adapt to climate change and have a clear pathway to reduce Scope 1 and 2 GHG emissions by approximately 15% by 2030 and simultaneously growing annual earnings by more than $3 billion.

• In 2023, Dow’s Board of Directors approved the final investment decision for our Fort Saskatchewan Path2Zero project in Alberta, Canada. This paved the way for us to begin construction on the world’s first net-zero scope 1 and 2 GHG emissions integrated ethylene facility and derivatives site, which will decarbonize approximately 20% of our global ethylene capacity and grow our polyethylene supply by about 15%.
• To help meet our need for safe, reliable, zero-emissions power and steam, we selected our site in Seadrift, Texas, for a proposed collaboration with X-Energy to construct a grid-scale advanced nuclear reactor – which would be the first of its kind for an industrial site in North America.
• We set the groundwork to update our Water & Nature strategy to include new goals focused on building resilience in the places where we operate. We also achieved our ambitious 2025 Valuing Nature Goal by realizing $1.2 billion in net present value from business-driven projects that enhance nature.

Advancing a Circular Economy and Safer Materials

Through our Transform the Waste strategy, Dow is working across the value chain to eliminate plastic pollution and help meet the growing demand for recycled and renewable solutions. With a partnership approach and innovative technologies, we expect to realize more than $500 million in incremental earnings per year by 2030 as we commercialize 3 million metric tons of circular and renewable solutions annually.

• With the mechanical completion of the Valoregen and Mura Technology recycling facilities in late 2023, we took important steps to become a major off-taker of lower GHG-emissions, circular feedstocks. Valoregen’s 15,000 metric ton mechanical recycling plant in France and Mura’s 20,000 metric ton advanced recycling plant in the United Kingdom will provide Dow with recycled feedstock for the production of new, high-value plastic products.
• We announced a collaboration with New Energy Blue to transform agricultural residue in the form of corn stover into bio-based ethylene used to make plastics.
• We also are using our materials science expertise to enable brands to quickly bring to market sustainable solutions for plastic packaging and other applications. For example, in 2023, we collaborated with LVMH Beauty on the use of bio-based and circular plastics for cosmetic packaging with our SURLYN™ REN and CIR Ionomers.

Cultivating a Thriving Team and Community

Our commitment to ID&E plays a critical role in enhancing our competitiveness and innovation. By building a diverse team and fostering inclusion in our workplace, we are enhancing our ability to create innovative solutions and deliver long-term business success.

• Our employee resource groups (ERGs) remain a valuable platform for advancing inclusion and driving profitable growth. In 2023, we increased our best-in-class ERG participation by 4 percentage points over 2022, with nearly 61% of employees participating in one or more of our 10 ERGs.
• Our ID&E efforts earned external recognition through industry-leading awards and certifications in 2023. Dow was recognized for the first time by Great Place To Work® and FORTUNE as one of the World’s Best Workplaces™ — a recognition provided to only 25 companies in the world.
• We significantly outpaced our industry peers on leadership diversity, with 50% of our executive team reporting as women and/or U.S. ethnic minorities. Our Board of Directors also continues to outpace the S&P 500 on U.S. ethnic diversity.
• In 2023, we reimagined our global citizenship strategy to more closely align to Dow’s ambition. Through this work, we partnered with 640 nonprofits, educational institutions and other community organizations to accelerate social change and create a more sustainable and equitable future.

Driving Accountability and Best-in-Class Performance

How we do business is just as important to our success as what we do. That’s why we continued to strengthen our governance practices and further our commitment to transparency and accountability throughout 2023.

• We enhanced disclosures for Board of Director qualifications, enterprise risk management and leadership succession planning.
• We refreshed the Dow Code of Conduct in alignment with industry best practices.
• Our 2023 environmental, social and governance disclosures were aligned to five leading standards and frameworks – GRI (Global Reporting Initiative), Greenhouse Gas Protocol, Taskforce on Climate-related Financial Disclosures, Sustainability Accounting Standards Board, and World Economic Forum Stakeholder Capitalism Metrics.

I’m proud of what Team Dow accomplished in 2023 to create value and advance our ambition. Our colleagues are shaping a more sustainable future in collaboration with our customers, value chain partners, communities and many stakeholders. Together, we are building a stronger company with competitive advantages and a more resilient world.

Best regards,

Jim Fitterling
Chair and Chief Executive Officer