Sustainable purchasing is how we identify and reduce the environmental impact of ourvalue chains. It helps us tap supply markets safely and ethically—driving a greenmarketplace and a more sustainable future. Our new sustainable purchasing strategy laysout a concrete roadmap for the years ahead based on three main pillars.
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Purchasing
Accelerating an inclusive and sustainable value chain
The 3 key pillars of Dow’s sustainable purchasing strategy
Inspire
Encourage Team Dow and our suppliers to drive the transition to a more sustainable andinclusive value chain.
Engage
Drive deeper environmental and social integration through targeted collaborations withsuppliers to deliver on Dow’s ambitious targets.
Innovate
Use a science- and data-driven purchasing approach to accelerate sustainable and inclusiveoutcomes.
Take a deeper dive into our sustainable purchasing strategy
To help drive the transition to a sustainable world, our strategy begins with a commitment to keep inspiring our team and suppliers around Dow’s goals. We encourage all of them to contribute new and deeper ways to implement sustainability and supplier diversity into their work.
This is important for several reasons including community and environmental impact, customer expectations, cost savings, brand reputation, and regulatory compliance.
We aim to embed sustainability into every purchase, so we’re enabling our purchasing teams to access robust ESG data (including diverse supplier options) and use sustainability as a meaningful metric in the decision-making process.
Supplier outreach and partnership with diverse suppliers, certifying bodies and councils are key to our success in driving sustainable procurement. That includes collaboration on ESG assessments, diverse supplier identification and influence of industry on sustainable outcomes.
To positively impact communities and society by supporting underrepresented and minority businesses in a meaningful
and sustainable way, our strategy will allow us to improve our supply base by including diverse suppliers while also
widening our pool of potential suppliers. To identify hotspots in the supply chain where more reliable and sustainable
alternatives can be sourced, advancing end-to-end transparency is critical. Our strategy will allow us to continuously
improve based on developments in our supply chains as the low-carbon, circular transition keeps evolving—along with
requirements for human rights, ID&E, and adherence to the Business Code of Conduct for Suppliers.
Purchasing’s contributions to Dow’s sustainability strategy are broad and growing
Protect the climate
- Partner with suppliers to reduce emissions
- Drive Scope 3 emissions reduction to advance Dow’s 2050 net-zero goal
- Improve data quality and reporting transparency
- Collaborate to implement next-generation, low-carbon technologies to support Dow’sdecarbonize and grow strategy
Transform the waste
- Integrate recycled, renewable, bio-based raw materials
- Incorporate post-consumer recycled (PCR) resins into our packaging
- Make investments to significantly increase global circularity rates
- Commercialize 3MM metric tons of circular and renewable solutions annually by 2030
- Build industrial ecosystems to collect, reuse or recycle waste
Close the loop
- Design packaging for circularity
- Collaborate for reverse logistics
Positively impact communities
- Support underrepresented and minority businesses
- Diversify our supplier pool
Respect human dignity
- Protect human rights in the supply chain
- Demand responsible behavior from suppliers
- Identify and mitigate risks with suppliers
- Collaborate for a more sustainable and inclusive supply chain
- Set expectation of Fair Labor Practices with suppliers
Tackling scope 3 emissions critical to reach net zero
Scope 3 emissions account for more than 70% of Dow’s corporate carbon emissions footprint, with more than half of thoseemissions coming from the raw materials, transportation and other services we purchase as a company. As such, targetedScope 3 reduction initiatives are a powerful lever in delivering on Dow’s net-zero ambition.
What are scope 3 emissions?
Scope 3 emissions include upstream emissions from products and services we procure from suppliers, as well as downstreamemissions from the transportation of our products to customers, plus the emissions related to the processing, use, and end-of-life of our sold products.
How are we taking action?
At Dow, we’re working closely with our 30,000+ supplier base to identify and advance scope 3 emissions reduction
opportunities. We recognize the significant opportunity we have to work with our suppliers to reduce those emissions – just as
our customers are looking to us to reduce emissions for the products they buy from us.
Dow continues to advance our scope 3 emissions reduction strategy through:
- Partnering with Carbon Disclosure Project (CDP) to collect climate data on key suppliers
- Developing the Supplier Climate Dashboard to help Team Dow understand our suppliers’ climate strategies
- Expanding the CDP program and urging our 500+ suppliers to disclose carbon emissions data and reduction plans
Partnering with our suppliers on sustainability assessments
Dow's membership in the TfS initiative reflects our commitment to promotingsustainability and responsible business practices, as well as upholding the higheststandards of integrity and transparency in our operations.
How is Dow promoting responsible practices throughout its supply chain?
Dow joined the Together for Sustainability (TfS) initiative in 2021 and has undertaken a thorough analysis of our supplychain sustainability risks. We developed a comprehensive supplier sustainability program that includes policies andprocedures for identifying and mitigating sustainability risks, offering training and education to employees and businesspartners, and promoting sustainability initiatives throughout the supply chain.
How can suppliers assess their sustainability performance?
The EcoVadis assessment gives suppliers a framework to evaluate and improve their sustainability performance basedon a comprehensive set of criteria. In comparison, TfS audits ensure that suppliers comply with the industry'ssustainability standards and demonstrate responsible practices throughout the supply chain.
By driving progress toward a more sustainable supply chain, Dow is contributing to a better future for customers ,employees, investors, and the environment.
