Pursuing our ambition is core to creating value for all our stakeholders and delivering a more sustainable future.
Earlier today, as part of our Investor Day webcast, we shared how we will continue to grow our business while also delivering strong performance and a more sustainable future – which together adds value for all our stakeholders.
Leaders from across our company participated, highlighting our sustainable and circular product offerings, and outlining our disciplined plan to continue delivering long-term value growth while achieving a zero-carbon emissions future. It’s a future we will deliver with a clear focus on our financial priorities.
The progress we’ve made on our commitments since our spin in 2019 speaks to Team Dow’s focus and strong execution. I’m very proud of our team and all they’ve accomplished, especially in this dynamic and unrelenting environment.
We’ve achieved incredible continued earnings growth and provided top-quartile cash conversion to support our financial priorities. We were disciplined in our investments. We also demonstrated a best-owner mindset, which has unlocked value by aligning our manufacturing, production and supply chain capabilities more closely with our priorities. And Team Dow delivered all of this while continuing to make progress towards our ambition and purpose.
What we make here at Dow will help create the better future we all desire. Our products and the markets we serve are well-positioned to grow, meeting both increasing customer demand as well as the drive towards a more circular and sustainable world.
Our product portfolio was built with one purpose in mind: to generate value growth through creating a more sustainable future as we solve many of the world’s toughest challenges. And, today, we announced multiple investments to make further progress towards that purpose.
It is not only within our control to show the world how to take our industry to a zero-carbon emissions future — we believe it’s our responsibility. And that’s what we’re going to do.
Sustainability has been a business imperative for us for more than 30 years. Our path toward zero-carbon emissions began in the early 2000s; and, last year, we announced our intent to be carbon neutral by 2050. Since 2005, we have already reduced our CO2 emissions by 15%, and the announcements we made today will take us to ~30% total by 2030.
To further our progress, we will begin replacing end-of-life production facilities with capacity that has lower-carbon emissions using both existing and new carbon-efficient technologies. A major project we just completed in the U.S. Gulf Coast, TX-9, has provided us necessary learnings. By incorporating technologies such as hydrogen and carbon capture and storage, we have a clear path to reduce carbon emissions by 5 million metric tons by 2030, including:
We know the next steps in our journey to a zero-carbon future that we announced today will be impactful, but we also know that to have the most robust impact, we’ll need public policy to help accelerate progress.
We’re actively engaged and collaborating with governments and community partners to help our industry achieve carbon neutrality faster — because we know that public policy will be a key consideration in our investment decisions. There are technologies available right now that would lower carbon emissions, but they need supportive policy and incentives to scale up, ensure affordability, and improve access. That’s why we support:
Every past success, every announcement we made today, and every policy we support is based on our ambition. And that’s fitting because our path ahead is an ambitious one. In fact, it will be challenging.
But most rewarding things in life are — pursuing our ambition is core to creating value for all our stakeholders and delivering a more sustainable future.
Jim Fitterling, Dow Chairman and CEO