MIDLAND, Mich.--(BUSINESS WIRE)--Dow Inc. (NYSE: DOW) today released “INtersections,” its first consolidated Environmental, Social and Governance (ESG) Report highlighting the Company’s significant progress to fully integrate environmental stewardship and positive social impact throughout its operations, teams, supply chain and communities. Dow’s 2020 ESG Report builds on its annual Sustainability Reports, which Dow has published since 2003, and its annual Inclusion and Diversity Reports, Shine, which Dow has published since 2018.
Dow’s INtersections report details how the company is delivering on its ambition and commitments to change the world for the better. Specific areas of focus include actions to reduce its carbon footprint, foster a circular economy for plastics, support its communities, and accelerate an equitable workforce. Additionally, the INtersections report highlights Dow’s best-in-class corporate governance practices that drive accountability and protect the long-term interest of its stakeholders.
“The events of 2020 affirmed the important and positive role Team Dow plays in the lives of our many stakeholders,” said Jim Fitterling, chairman and CEO of Dow. “We take that role seriously, and with a purpose to deliver a sustainable future for the world through our materials science expertise and collaboration with our partners, we made impressive gains toward our ESG priorities. The launch of this year’s consolidated ESG report reiterates our commitment to set bold goals, measure our progress, and increase the transparency of our performance.”
This comprehensive report applies ESG management and reporting principles to Dow’s sustainability and corporate social responsibility strategy, building on the Company’s long-standing commitment to environment, health and safety, inclusion and diversity, community engagement and corporate governance.
Key highlights in the 2020 ESG Report include:
Environmental Performance: Inroads for Sustainable Development
- Valuing Nature: Realized $100 million in business value from nature-related projects that are both good for the environment and for business, for a total of $530 million since inception. This marks the midpoint of Dow’s $1 billion target by 2025.
- Close the Loop: Tripled sales of products made with renewable raw materials. Today, 81 percent of Dow products for packaging applications are reusable or recyclable. Dow also introduced its first post-consumer recycled (PCR) resin for shrink film.
- Scaling E-Cracker Technology: Working to develop an electrified cracking technology powered by clean energy in partnership with Shell, a breakthrough for dramatically reducing emissions across the industry.
Inclusion & Diversity: Intention, Action and Sustainable Progress
- Dow ACTs: Dow launched a holistic framework and commitment for improving Advocacy, Community engagement, and the Talent pipeline (ACT) and pledged to invest more than $10 million over the next five years to address systematic racism and social inequality.
- Investing Internally: Despite the challenges of 2020, Dow achieved its highest-ever overall employee satisfaction level of 74 percent.
- Engaging Employees for Impact: Today, 98 percent of Dow’s people leaders participate in Employee Resource Groups (ERG), with 2,000 new participants in the past year, reaching best-in-class participation company-wide. Through its ALL IN ERG Fund, Dow distributed $250,000 to impactful community projects around the globe.
- Supplier Diversity: A strong focus on expanding the reach of Dow’s Supplier Diversity program led to $112 million spent with diverse suppliers, and 52 new diverse vendors.
- Supporting Vets: Dow launched a new Military Degree Equivalency Program (MDE) that helps level the playing field for veterans seeking careers in the U.S. and Canada.
- Recognition: Moved up 15 spots on the DiversityInc® Top 50 Companies for Diversity List, and recognized as a leader in inclusion and diversity by Great Place to Work, Human Rights Campaign, Disability: IN, Out & Equal, INvolve, National Organization on Disability, Forbes, PEOPLE Magazine, Economic Dividends for Gender Equality (EDGE), and the Financial Times.
Community: Investing in Our People and Places Where We Work and Live
- Purpose-Driven Investing: Contributed more than $33.6 million to community programs globally to promote inclusion in communities, build the workforce of tomorrow, and support sustainable business development and disaster relief.
- Inspiring Employees: Galvanized more than 13,800 employees to participate in volunteer efforts around the world. This led to milestones such as more than 1.2 million pounds of waste collected via Dow’s #PullingOurWeight cleanups.
Corporate Governance: Instrumental to Accountability
- Transparency: Continued implementation of Task Force on Climate-related Financial Disclosures guidelines and Sustainability Accounting Standards Board standards.
- Industry-Leading Diversity: Continued to refresh our Board of Directors with an emphasis on diverse experience and skillsets, appointing four new directors in 2020-2021. Today, Dow’s Board of Directors are 55% women or U.S. ethnic minority.
- Leadership: Dow’s senior leadership has the highest percentage of U.S. ethnic minority representation and second highest percentage of women leaders compared to industry peers.
- Accountability: Redesigned the annual Performance Award bonus program to include new ESG metrics. This reflects the accountability and commitment Team Dow has for delivering against the company’s mission for sustainability, inclusion and diversity.
The 2020 ESG Report was prepared in accordance with the Global Reporting Initiative (GRI) Standards: Comprehensive option. It also includes reporting against the Sustainability Accounting Standards Board (SASB) Standard and the Taskforce on Climate-related Financial Disclosures (TCFD) guidelines. Dow is also working with Deloitte & Touche LLP (“Deloitte”) to perform a review engagement on management’s assertion related to the ESG disclosures referenced in the Global Reporting Initiative (GRI) Content Index as of, and for the year-ended December 31, 2020. To learn more about Dow’s industry-leading commitment to creating a more sustainable, equitable and prosperous world, please read Dow’s comprehensive 2020 ESG Report here.
Dow (NYSE: DOW) combines global breadth, asset integration and scale, focused innovation and leading business positions to achieve profitable growth. The Company’s ambition is to become the most innovative, customer centric, inclusive and sustainable materials science company, with a purpose to deliver a sustainable future for the world through our materials science expertise and collaboration with our partners. 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 care. Dow operates 106 manufacturing sites in 31 countries and employs approximately 35,700 people. Dow delivered sales of approximately $39 billion in 2020. 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.
Cautionary Statement about Forward-Looking Statements
Certain statements in this communication 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. 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; capital requirements and need for and availability of financing; 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; weather events and natural disasters; and disruptions in Dow’s information technology networks and systems.
Risks related to Dow’s separation from DowDuPont Inc. include, but are not limited to: (i) Dow’s inability to achieve some or all of the benefits that it expects to receive from the separation from DowDuPont Inc.; (ii) certain tax risks associated with the separation; (iii) the failure of Dow’s pro forma financial information to be a reliable indicator of Dow’s future results; (iv) non-compete restrictions under the separation agreement; (v) receipt of less favorable terms in the commercial agreements Dow entered into with DuPont de Nemours, Inc. (“DuPont”) and Corteva, Inc. (“Corteva”), including restrictions under intellectual property cross-license agreements, than Dow would have received from an unaffiliated third party; and (vi) Dow’s obligation to indemnify DuPont and/or Corteva 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, 2020 and its subsequent reports on Form 10-Q and Form 8-K. 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 assumes 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.