Difference between revisions of "Dow Chemical"

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     | data6 = 108 Megatons of CO2 (2020) (Dow Inc.)
     | data6 = 108 Megatons of CO2 (2020) (Dow Inc.)
     | title =  
     | title =  
    | label7= NCI assessment
    | data7 = Low
     | title =  
     | title =  
     | label7= Total Revenue  
     | label8= Total Revenue  
     | data7 = 38.54 billion USD (2020)
     | data8 = 54.9 billion USD (2020)
     | label8= Stock Exchange
     | label9= Stock Exchange
     | data8 = New York
     | data9 = New York
     | label9= Key People
     | label10= Key People
     | data9 = Anton van Beek(President-director Benelux) Jim Fitterling(CEO & Chairman Dow Inc.)
     | data10 = Anton van Beek(President-director Benelux) Jim Fitterling(CEO & Chairman Dow Inc.)
     | label10= Number of Employees
     | label11= Number of Employees
     | data10 = 4.000 (Benelux)
     | data11 = 4,000 (Benelux)
     | title =
     | title =
     | label11= Subsidiaries
     | label12= Subsidiaries
     | data11 = Dow Inc. consists of 400 subsidiaries<ref> https://s23.q4cdn.com/981382065/files/doc_financials/2020/ar/2020_Dow_Inc_Annual_Report.pdf P211-216</ref>   
     | data12= Dow Inc. consists of 400 subsidiaries<ref> https://s23.q4cdn.com/981382065/files/doc_financials/2020/ar/2020_Dow_Inc_Annual_Report.pdf P211-216</ref>   
   }}
   }}


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'''Dow Inc (International)'''
'''Dow Inc (International)'''


Dow inc,  was founded in 1897  by H.H Dow an electrochemical pioneer.<ref>https://corporate.dow.com/en-us/about/company/history/timeline/golden-age-of-inorganics.html </ref> Dow Chemicals manufactures plastics, chemicals, and agricultural products.<ref>https://nl.dow.com/en-us</ref> The company has 36,500 employees and 109 manufacturing sites in 31 different countries.<ref>https://s23.q4cdn.com/981382065/files/doc_financials/2019/ar/874827_029_CL_WEB.pdf </ref> The headquarters are located in Michigan, United States.<ref>https://corporate.dow.com/en-us/locations.html </ref> In 2020, Dow chemical reported a net income of 1,3 billion USD.<ref>https://s23.q4cdn.com/981382065/files/doc_financials/2020/ar/2020_Dow_Inc_Annual_Report.pdf P4</ref>  
Dow inc,  was founded in 1897  by H.H Dow an electrochemical pioneer.<ref>https://corporate.dow.com/en-us/about/company/history/timeline/golden-age-of-inorganics.html </ref> Dow Chemicals manufactures plastics, chemicals, and agricultural products.<ref>https://nl.dow.com/en-us</ref> The company has 36,500 employees and 109 manufacturing sites in 31 different countries.<ref>https://s23.q4cdn.com/981382065/files/doc_financials/2019/ar/874827_029_CL_WEB.pdf </ref> The headquarters are located in Michigan, United States.<ref>https://corporate.dow.com/en-us/locations.html </ref> In 2021, Dow chemical reported a revenue of 54.9 billion USD.<ref>https://s23.q4cdn.com/981382065/files/doc_financials/2021/ar/Dow_Inc_2021_Annual_Report.pdf#xd_co_f=ZTE3MDQ5MDktOWFlNC00YjQwLWI2ODAtNjY5OGZhZDlmYmYz~ p73</ref>  


'''Dow Chemical (Benelux)'''
'''Dow Chemical (Benelux)'''
   
   
'''Dow Chemical Benelux''' styled as '''Dow Chemical''', is part of Dow Inc. Dow has been active in the Benelux since 1955.<ref>https://nl.dow.com/en-us.html </ref> In 1961 Dow purchased a manufacturing site in Terneuzen, The Netherlands.<ref>https://corporate.dow.com/en-us/about/company/history/timeline/going-global-first-era-commercialization.html </ref> Now Dow Chemical Benelux is located in eight major locations in the Netherlands (Terneuzen, Delfzijl and Dordrecht) and Belgium (Antwerp, Brussels, Tertre, Zwijndrecht and since 2016, Seneffe).<ref>https://nl.dow.com/en-us.html</ref> With 16 factories, Dow Terneuzen is Dow’s second largest manufacturing site in the world.<ref>https://nl.dow.com/en-us/locations/terneuzen.html </ref> Besides this, Terneuzen is also the central point for supporting Dow services in Europe, the Middle East, Africa and India. Dow Benelux overall has approximately 4000 employees<ref>https://nl.dow.com/en-us.html</ref> , of which 3550 employees work at the location in Terneuzen.<ref> https://nl.dow.com/en-us/locations/terneuzen.html</ref> The Value Park, located at the Terneuzen site, covers 140 hectares and is targeted at companies working in the chemical industries. The park is located at a convient location as it is directed to railroads, the road network, and international waterways.<ref>https://nl.dow.com/en-us/locations/terneuzen.html</ref> Futhermore, the park is located to the Dow pipeline that extents from Terneuzen to Antwerp (220km).<ref>https://nl.dow.com/en-us/locations/terneuzen.html</ref> This pipeline transports ethylene, naphtha and propylene.<ref>https://nl.dow.com/en-us/locations/terneuzen.html</ref>   The size and importance of Dow Benelux to Dow Inc. shows that they are a key player in their field.
'''Dow Chemical Benelux''' styled as '''Dow Chemical''', is part of Dow Inc. Dow has been active in the Benelux since 1955.<ref>https://nl.dow.com/en-us.html </ref> In 1961 Dow purchased a manufacturing site in Terneuzen, The Netherlands.<ref>https://corporate.dow.com/en-us/about/company/history/timeline/going-global-first-era-commercialization.html </ref> Now Dow Chemical Benelux is located in eight major locations in the Netherlands (Terneuzen, Delfzijl and Dordrecht) and Belgium (Antwerp, Brussels, Tertre, Zwijndrecht and since 2016, Seneffe).<ref>https://nl.dow.com/en-us.html</ref> With 16 factories, Dow Terneuzen is Dow’s second-largest manufacturing site in the world.<ref>https://nl.dow.com/en-us/locations/terneuzen.html </ref> Besides this, Terneuzen is also the central point for supporting Dow services in Europe, the Middle East, Africa and India. Dow Benelux overall has approximately 4000 employees,<ref>https://nl.dow.com/en-us.html</ref> of which 3550 employees work at the location in Terneuzen.<ref> https://nl.dow.com/en-us/locations/terneuzen.html</ref> The Value Park, located at the Terneuzen site, covers 140 hectares and is targeted at companies working in the chemical industries. The park is located at a convient location as it is directed to railroads, the road network, and international waterways.<ref>https://nl.dow.com/en-us/locations/terneuzen.html</ref> Futhermore, the park is located to the Dow pipeline that extents from Terneuzen to Antwerp (220km).<ref>https://nl.dow.com/en-us/locations/terneuzen.html</ref> This pipeline transports ethylene, naphtha and propylene.<ref>https://nl.dow.com/en-us/locations/terneuzen.html</ref> The size and importance of Dow Benelux to Dow Inc. shows that they are a key player in their field.


== Company Structure ==
== Company Structure ==


Dow Inc. works with two boards, the leadership team and the board of directors. The leadership team is focused on the day-to-day business such as creating strong and balanced growth for their stakeholders.<ref>https://s23.q4cdn.com/981382065/files/doc_financials/2020/ar/2020_Dow_Inc_Annual_Report.pdf p6</ref> The Board of Directors focuses on the broad corporate policy and the overall performance of the company through oversight of management and stewardship of the company.<ref>https://s23.q4cdn.com/981382065/files/doc_financials/2020/ar/Dow_Inc_2021_Proxy_Statement.pdf p19</ref> The board appoints the company’s officers and assigns to them responsibility for the management of the company’s operations.<ref>https://s23.q4cdn.com/981382065/files/doc_financials/2020/ar/Dow_Inc_2021_Proxy_Statement.pdf p19</ref>  
Dow Inc. works with two boards, the leadership team and the board of directors. The leadership team is focused on the day-to-day business such as creating strong and balanced growth for their stakeholders.<ref>https://s23.q4cdn.com/981382065/files/doc_financials/2020/ar/2020_Dow_Inc_Annual_Report.pdf p6</ref> The board of directors focuses on the broad corporate policy and the overall performance of the company through oversight of management and stewardship of the company.<ref>https://s23.q4cdn.com/981382065/files/doc_financials/2020/ar/Dow_Inc_2021_Proxy_Statement.pdf p19</ref> The board appoints the company’s officers and assigns to them responsibilities for the management of the company’s operations.<ref>https://s23.q4cdn.com/981382065/files/doc_financials/2020/ar/Dow_Inc_2021_Proxy_Statement.pdf p19</ref>  


There is no information available on the structure of the leadership at Dow Benelux. What is known is that Anton van Beek is the president-director of Dow Benelux<ref>https://www.ad.nl/zeeland/nieuw-hoofdkantoor-dow-zie-dit-als-de-bol-com-van-de-chemie~aed92043/ </ref> and that Neil Carr is the president of the operations in Europe.
There is no information available on the structure of the leadership at Dow Chemical. What is known is that Anton van Beek is the president-director of Dow Chemical<ref>https://www.ad.nl/zeeland/nieuw-hoofdkantoor-dow-zie-dit-als-de-bol-com-van-de-chemie~aed92043/ </ref> and that Neil Carr is the president of the operations in Europe.


=== Leadership Team ===
=== Leadership Team ===
Line 80: Line 82:
|Jim Fitterling
|Jim Fitterling
|Chief Executive Officer & Chairman
|Chief Executive Officer & Chairman
|22211,3
|22211
|-
|-
|Howard Ungerleider
|Howard Ungerleider
|President and CFO
|President and CFO
|8475,7
|8475
|-
|-
|Jack Broodo
|Jack Broodo
|President, Feedstocks & Energy
|President, Feedstocks & Energy
|Unkown
|Unknown
|-
|-
|Neil Carr
|Neil Carr
|President, Europe, Middle East, Africa, and India
|President, Europe, Middle East, Africa, and India
|Unkown
|Unknown
|-
|-
|Karen S. Carter
|Karen S. Carter
|Chief HR and Chief Inclusion Officer
|Chief HR and Chief Inclusion Officer
|Unkown
|Unknown
|-
|-
|Diego Donoso
|Diego Donoso
|President Packaging & Specialty Plastics
|President Packaging & Specialty Plastics
|Unkown
|Unknown
|-
|-
|Mauro Gregorio
|Mauro Gregorio
|President, Performance Materials & Coatings
|President, Performance Materials & Coatings
|Unkown
|Unknown
|-
|-
|Melanie Kalmar
|Melanie Kalmar
|Corporate VP Chief Information Officer & Chief Digital Officer
|Corporate VP Chief Information Officer & Chief Digital Officer
|Unkown
|Unknown
|-
|-
|Torsten Kraef
|Torsten Kraef
|Senior VP, Corporate Development
|Senior VP, Corporate Development
|Unkown
|Unknown
|-
|-
|Jane Palmieri
|Jane Palmieri
|President, Industrial Intermediates & Infrastructures; Asia Pacific Oversight
|President, Industrial Intermediates & Infrastructures; Asia Pacific Oversight
|Unkown
|Unknown
|-
|-
|John Sampson
|John Sampson
|Senior VP, Operations, Manufacturing and Engineering
|Senior VP, Operations, Manufacturing and Engineering
|Unkown
|Unknown
|-
|-
|A.N. Sreeram
|A.N. Sreeram
|Senior VP, Research & Development and Chief Technology Officer
|Senior VP, Research & Development and Chief Technology Officer
|5185,6
|5185
|-
|-
|Amy E. Wilson
|Amy E. Wilson
|General Counsel and Corporate Secretary
|General Counsel and Corporate Secretary
|5729,9
|5729
|}
|}


The remuneration is from 2020 and includes 1. Salary, 2. Stock Awards, 3. Option Awards, 4. Non-Equity Incentive Plan Compensation, 5. Change in pension value, 6. Other(Travel Expenses, Tax reimbursements, etc.)<ref>https://s23.q4cdn.com/981382065/files/doc_financials/2020/ar/Dow_Inc_2021_Proxy_Statement.pdf P62</ref>
The remuneration is from 2020 and includes i) Salary, ii) Stock Awards, iii) Option Awards, iv) Non-Equity Incentive Plan Compensation, v) Change in pension value, vi) Other (Travel Expenses, Tax reimbursements, etc.).<ref>https://s23.q4cdn.com/981382065/files/doc_financials/2020/ar/Dow_Inc_2021_Proxy_Statement.pdf P62</ref>


===Board of Directors===
===Board of Directors===
Line 142: Line 144:
|Jim Fitterling
|Jim Fitterling
|Chief Executive Officer & Chairman
|Chief Executive Officer & Chairman
|22211,3
|22211
|-
|-
|Jeff M. Fettig
|Richard K. Davis
|Lead Director Dow Inc.
|Lead Director Dow Inc.
|418,8
|
|-
|-
|Samuel R. Allen
|Samuel R. Allen
Line 152: Line 154:
|325
|325
|-
|-
|Ajay Banga
|Guardie Banister Jr.
|Executive Chairman, Mastercard Inc.
|310
|-
|Guardie Banister Jr.  
|Former President and CEO, Aera Energy LLC
|Former President and CEO, Aera Energy LLC
|185,8
|185
|-
|Jacqueline K. Barton
|John G. Kirkwood and Arthur A. Noyes Professor of Chemistry
|330
|-
|James A. Bell
|Former Executive VP, Corporate President and CFO, The Boeing Company
|342,3
|-
|-
|Wesley G. Bush
|Wesley G. Bush
|Former Chairman and CEO Northrop Grumman Corporation
|Former Chairman and CEO Northrop Grumman Corporation
|310  
|310
|-
|Debra L. Dial
|Senior Vice President and Controller
|
|-
|-
|Richard k. Davis
|Jeff M. Fettig
|President and CEO Make-A-Wish America
|Former Chairman and Chief Executive Officer
|310
|
|-
|-
|Jacquiline C. Hinman
|Jacquiline C. Hinman
|Former Chairman, President and CEO CH2M HILL
|Former Chairman, President and CEO CH2M HILL
|310
|310
|-
|Luis Alberto Moreno
|Managing Director
|
|-
|-
|Jill S. Wyant
|Jill S. Wyant
|Executive VP of Innovation and Transformation Ecolab Inc.
|Executive VP of Innovation and Transformation Ecolab Inc.
|278,8
|278
|-
|-
|Daniel W. Yohannes  
|Daniel W. Yohannes  
Line 193: Line 191:
=== Accountant ===
=== Accountant ===


The independent Auditors of Dow Chemical are Deloitte & Touche LLP (Deloitte).<ref>https://s23.q4cdn.com/981382065/files/doc_financials/2020/ar/2020_Dow_Inc_Annual_Report.pdf P169</ref> They have been the auditors since 1905.<ref>https://s23.q4cdn.com/981382065/files/doc_financials/2020/ar/2020_Dow_Inc_Annual_Report.pdf P73</ref>
The independent Auditors of Dow Chemical are Deloitte & Touche LLP (Deloitte).<ref>https://s23.q4cdn.com/981382065/files/doc_financials/2020/ar/2020_Dow_Inc_Annual_Report.pdf P169</ref> They have been the auditors since 1905.<ref>https://s23.q4cdn.com/981382065/files/doc_financials/2020/ar/2020_Dow_Inc_Annual_Report.pdf P73</ref> In their auditor reports, they do not mention climate change or climate-related risks.


=== Main Activities ===
=== Main Activities ===


Dow Chemical is active in the Chemical sector with products like polystyrene, polyurethane, polyethylene, polypropylene.<ref>https://nl.dow.com/en-us.html</ref> These products are used in many different markets such as Agriculture, Healthcare, and Packaging.<ref>https://nl.dow.com/en-us.html</ref>
Dow Chemical is active in the chemical sector with products like polystyrene, polyurethane, polyethylene, and polypropylene.<ref>https://nl.dow.com/en-us.html</ref> These products are used in many different markets such as agriculture, healthcare, and packaging.<ref>https://nl.dow.com/en-us.html</ref>


===Government===
===Government===
Line 203: Line 201:
Dow Chemical does not have royal status.<ref>https://www.koninklijkhuis.nl/onderwerpen/onderscheidingen/predicaat-koninklijk/overzicht-predicaat-koninklijk</ref> Dow Chemical has not received NOW support from the Dutch government.<ref>https://www.uwv.nl/overuwv/Images/uwv-register-now-vijfde-aanvraagperiode.pdf</ref>
Dow Chemical does not have royal status.<ref>https://www.koninklijkhuis.nl/onderwerpen/onderscheidingen/predicaat-koninklijk/overzicht-predicaat-koninklijk</ref> Dow Chemical has not received NOW support from the Dutch government.<ref>https://www.uwv.nl/overuwv/Images/uwv-register-now-vijfde-aanvraagperiode.pdf</ref>


== Paris Agreement to Today ==
== Paris Agreement until Today ==
Dow inc. accepts the scientific consensus that climate change caused by increasing greenhouse gas (GHG) emissions from human activity has serious consequences for the planet and society if left unaddressed.<ref>https://corporate.dow.com/documents/about/066-00338-01-2020-esg-report.pdf p35</ref> Furthermore, Dow supports the Paris agreement and is committed to achieve the goal of keeping global temperature rise well below 2°C, and to pursue efforts to limit the increase to 1.5°C.<ref>https://corporate.dow.com/documents/about/066-00338-01-2020-esg-report.pdf p35</ref>
Dow Inc. accepts the scientific consensus that climate change caused by increasing greenhouse gas (GHG) emissions from human activity has serious consequences for the planet and society if left unaddressed.<ref>https://corporate.dow.com/documents/about/066-00338-01-2020-esg-report.pdf p35</ref> Furthermore, Dow Inc. supports the Paris agreement and is committed to achieve the goal of keeping global temperature rise well below 2°C, and to pursue efforts to limit the increase to 1.5°C.<ref>https://corporate.dow.com/documents/about/066-00338-01-2020-esg-report.pdf p35</ref>
 
Dow Inc. created a set of sustainability goals to reach by 2025. In its latest ESG report, the company provided an update on these goals in relation to the progress made by 2020.
 
Goal 1: Leading the Blueprint. With this goal, Dow Inc aims to cultivate a societal mindset shift on the value and necessity of incorporating diverse perspectives and collaborations to address global challenges. Dow Inc measures this goal through the creation and implementation of the company's Blueprint Thinking Toolkit and through sharing blueprints.<ref>https://corporate.dow.com/documents/about/066-00338-01-2020-esg-report.pdf P53</ref> In 2020 Dow Inc's Blueprint thinking work and the toolkit were shortlisted in the Think Global Forum's award.<ref>https://corporate.dow.com/documents/about/066-00338-01-2020-esg-report.pdf P53</ref>
 
Goal 2: Delivering Breakthrough Innovations. This goal focuses on the well-being of humanity and the environment based on the life-cycle of Dow Inc's products.<ref>https://corporate.dow.com/documents/about/066-00338-01-2020-esg-report.pdf P54</ref> Each Dow business has its own business-specific product sustainability goals. These goals are tracked using the Sustainable Chemistry Index (SCI) survey. This survey showed that, in 2020, 48% of sales were from products that address world challenges.<ref>https://corporate.dow.com/documents/about/066-00338-01-2020-esg-report.pdf P54</ref>
 
Goal 3: Advancing a Circular Economy. In 2020, Dow announced that the company will focus on: designing materials for a circular economy, stopping waste and closing the loop on materials in the company's operations, enabling others to advance the circular economy, and scaling business models to keep materials in play.<ref>https://corporate.dow.com/documents/about/066-00338-01-2020-esg-report.pdf P55</ref>
 
Goal 4: Valuing Nature. In 2020, Dow Inc realized $100 million in business value towards this goal. Since the launch of this goal, Dow Inc has realized $530 million in business value through projects that are better for business and better for nature.<ref>https://corporate.dow.com/documents/about/066-00338-01-2020-esg-report.pdf P56</ref>
 
Goal 5: Safe material for a sustainable planet. In 2020, Dow announced a sustainable alternative ECOSURF EH. This product offers a reduction in aquatic toxicity and reduces potential eco-toxicity over a lifetime. This product allows Dow Inc to create more sustainable formulations for cleaning, coating, and agriculture products.<ref>https://corporate.dow.com/documents/about/066-00338-01-2020-esg-report.pdf p57</ref>


Dow inc. created a set of sustainability goals to reach by 2025. In their latest ESG report, they provided an update on these goals in relation to their progress made by 2020.  
Goal 6: Engaging for impact. Target, by 2025 Dow inc. employees and partners worldwide will apply their resources to help build sustainable and resilient communities. In 2020, the Employee Experience score was 8 percentage points higher for Dow employees who volunteered vs. those who did not.<ref>https://corporate.dow.com/documents/about/066-00338-01-2020-esg-report.pdf p58</ref>


{| class="wikitable"
Goal 7: World-leading operations (WLO) performance. Dow Inc uses the WLO to track its performance in natural resource efficiency, environment, and health and safety. In 2020, Dow Inc increased its total worker health index by 10 percentage points over 2019.<ref>https://corporate.dow.com/documents/about/066-00338-01-2020-esg-report.pdf p 59</ref>
|+Dow Chemical 2025 Goals and 2020 Progress <ref>https://corporate.dow.com/documents/about/066-00338-01-2020-esg-report.pdf P53-59</ref>
!2025 Goal
!2020 Progress
|-
|Leading the Blueprint
|Created and shared Blueprint Thinking Toolkit
|-
|Delivering Breakthrough Innovations
|48% of sales were from products that address world challenges
|-
|Advancing a Circular Economy
|external recognition of the circularity impact of six major projects
|-
|Valuing Nature
|$100 million in business value was used towards this goal
|-
|Safe Materials for a Sustainable Planet
|A sustainable alternative was announced, ECOSURF™ EH
|-
|Engagign for Impact
|the goal team refreshed the targets to ensure they are measurable and verifiable
|-
|World-Leading Operations Performance
|Increased total worker health index by 10 percentage points
|-
|}


===Financial Results since 2015===
===Financial Results since 2015===
{| class="wikitable"
{| class="wikitable"
|+Financial situation
|+Financial situation Dow Inc
!Year
!Year
!Revenue
!Revenue
!Profit
!Profit (loss)
!Dividend
!Dividend
|-
|-
|2015<ref>annualreports.com/HostedData/AnnualReportArchive/t/NYSE_DOW_2015.pdf</ref>
|2015<ref>annualreports.com/HostedData/AnnualReportArchive/t/NYSE_DOW_2015.pdf</ref>
|48,778 billion USD  
|48.8 billion USD  
|7,345 billion USD
|7.4 billion USD
|1,913 billion USD
|1.91 billion USD
|-
|-
|2016<ref>https://www.annualreports.com/HostedData/AnnualReportArchive/t/NYSE_DOW_2016.pdf</ref>
|2016<ref>https://www.annualreports.com/HostedData/AnnualReportArchive/t/NYSE_DOW_2016.pdf</ref>
|48,158 billion USD  
|48.2 billion USD  
|3,978 billion USD
|3.9 billion USD
|2,037 billion USD
|2.04 billion USD
|-
|-
|2017<ref>https://www.annualreports.com/HostedData/AnnualReportArchive/t/NYSE_DOW_2017.PDF</ref>
|2017<ref>https://www.annualreports.com/HostedData/AnnualReportArchive/t/NYSE_DOW_2017.PDF</ref>
|62,484 billion USD  
|62.5 billion USD  
|1,460 billion USD
|1.5 billion USD
|3,394 billion USD
|3.40 billion USD
|-
|-
|2018
|2018
Line 265: Line 249:
|-
|-
|2019
|2019
|42,951 billion USD  
|42.9 billion USD  
|XXX billion USD
| (1.2) billion USD
|XXX billion USD
|XXX billion USD
|-
|-
|2020
|2020
|38,542 billion USD  
|38.5 billion USD  
|1,4 billion USD
|2.1 billion USD
|XXX USD
|XXX billion USD
|-
|-
|2021
|2021<ref>https://s23.q4cdn.com/981382065/files/doc_financials/2021/ar/Dow_Inc_2021_Annual_Report.pdf#xd_co_f=ZTE3MDQ5MDktOWFlNC00YjQwLWI2ODAtNjY5OGZhZDlmYmYz~ p73</ref>
|XXX billion USD  
|54.9 billion USD  
|XXX billion USD
|8.1 billion USD
|XXX billion USD
|XXX billion USD
|}
|}
====Scandals and controversies====
'''Terneuzen'''
In 2014 the court in Middleburg gave Dow Benelux BV in Terneuzen a 1,8 million euro fine.<ref>https://www.nu.nl/economie/3734244/miljoenenboete-chemiebedrijf-dow-.html?_ga=2.138385145.893487642.1643714626-1201189375.1643036636</ref> Originally 5 million euros were demanded of the company due to various environmental crimes between 2005 and 2008. The crimes were in relation to chemical leaks at the manufacturing sites in Terneuzen. The court could not conclude that there was a lack of safety protocols at Dow Benelux, but could say that the safety protocols were not enforced strictly enough. Therefore, the court demanded 1,8 million euros instead of 5 million.<ref>https://www.nu.nl/economie/3734244/miljoenenboete-chemiebedrijf-dow-.html?_ga=2.138385145.893487642.1643714626-1201189375.1643036636 </ref> 
One of these incidents was in 2005 when a tank with benzene flooded. Another example was in 2006 when benzene was leaking from the pipelines for multiple days.<ref>https://www.nu.nl/economie/3734244/miljoenenboete-chemiebedrijf-dow-.html?_ga=2.138385145.893487642.1643714626-1201189375.1643036636 </ref> Even though Dow Benelux did hire companies to repair this leak they did not close down the manufacturing site, putting their employees at risk of explosion.<ref>https://www.nu.nl/economie/3734244/miljoenenboete-chemiebedrijf-dow-.html?_ga=2.138385145.893487642.1643714626-1201189375.1643036636 </ref>
'''Groningen'''
In 2011 at one of the daughter companies of Dow Chemicals, Farmsun in Groningen, a fault in loading Sodium off of a train wagon caused for a fire.<ref>https://nos.nl/artikel/310870-brand-in-natriumfabriek-onder-controle</ref>  While off-loading the Sodium off the train wagon several hundred kilos of sodium fell on the ground and caught fire. After several explosions in the building next to the train, the fire department was able to put out the fire.<ref>https://nos.nl/artikel/310870-brand-in-natriumfabriek-onder-controle</ref> The fire caused for a lot of smoke in the surrounding neighborhoods, the fire department recommended that people keep their windows and doors closed, and to stay inside.<ref>https://nos.nl/artikel/310870-brand-in-natriumfabriek-onder-controle</ref>


== Current Emissions ==
== Current Emissions ==
{| class="wikitable"
{| class="wikitable"
|+Total emissions 108 Megatonnes of CO2 (2020)
|+Total emissions 108 Megatons of CO2 (2020)
!Scope 1
!Scope 1
!Scope 2
!Scope 2
!Scope 3
!Scope 3
|-
|-
|28,2 Megatonnes of CO2 (2020)
|28.2 Megatonnes of CO2 (2020)
|11,46 Megatonnes of CO2 (2020)
|11.46 Megatonnes of CO2 (2020)
|69,257 Megatonnes of CO2 (2020)
|69.257 Megatonnes of CO2 (2020)
|-
|-
|}
|}


====Scope 1 and 2====
====Scope 1 and 2====
For the Dow inc. GHG emissions report, Scope 1 includes Kyoto Protocol greenhouse gases carbon dioxide (CO2), methane (CH4 ), nitrous oxide (N2 O), hydrofluorocarbons (HFCs), perfluorocarbons (PFCs), sulfur hexafluoride (SF6),and nitrogen trifluoride (NF3) as well as any non-Kyoto greenhouse gases emitted.<ref>https://corporate.dow.com/documents/about/066-00338-01-2020-esg-report.pdf P65</ref>  Scope 2 includes carbon dioxide (CO2), methane (CH4) and nitrous oxide (N2 O).<ref>https://corporate.dow.com/documents/about/066-00338-01-2020-esg-report.pdf P65</ref> Reported Scope 1 and 2 GHG emissions showed little change from 2018.  
For the Dow Inc. GHG emissions report, scope 1 includes Kyoto Protocol greenhouse gases carbon dioxide (CO2), methane (CH4), nitrous oxide (N2O), hydrofluorocarbons (HFCs), perfluorocarbons (PFCs), sulfur hexafluoride (SF6),and nitrogen trifluoride (NF3) as well as any non-Kyoto greenhouse gases emitted.<ref>https://corporate.dow.com/documents/about/066-00338-01-2020-esg-report.pdf P65</ref>  Scope 2 includes carbon dioxide (CO2), methane (CH4) and nitrous oxide (N2 O).<ref>https://corporate.dow.com/documents/about/066-00338-01-2020-esg-report.pdf P65</ref> Reported scope 1 and 2 GHG emissions showed little change from 2018.  


{| class="wikitable"
{| class="wikitable"
Line 316: Line 288:
|-
|-
|Scope 1 GHG Emissions
|Scope 1 GHG Emissions
|28,4
|28.4
|27,2
|27.2
|28,2
|28.2
|-
|-
|Scope 2 GHG Emissions - Market-Based
|Scope 2 GHG Emissions - Market-Based
|6,66
|6.66
|6,07
|6.07
|6,56
|6.56
|-
|-
|Scope 2 GHG Emissions - Location-Based
|Scope 2 GHG Emissions - Location-Based
|7,6
|7.6
|5,2
|5.2
|4,9
|4.9
|-
|-
|Scope 1 + Scope 2 GHG Emissions
|Scope 1 + Scope 2 GHG Emissions
|35,06
|35.06
|33,27
|33.27
|34,76
|34.76
|-
|-
|}
|}


====Scope 3====
====Scope 3====
Scope 3 emissions are defined by the GHG Protocol as indirect emissions from value chain activities.<ref>https://corporate.dow.com/documents/about/066-00338-01-2020-esg-report.pdf P66</ref> Estimates include all or a subset of Kyoto GHGs [carbon dioxide (CO2 ), methane (CH4 ), nitrous oxide (N2 O), hydrofluorocarbons (HFCs), perfluorocarbons (PFCs), sulfur hexafluoride (SF6 ), and nitrogen trifluoride (NF3 )] depending on the category and estimation methodology.<ref>https://corporate.dow.com/documents/about/066-00338-01-2020-esg-report.pdf P66</ref>   
Scope 3 emissions are defined by the GHG Protocol as indirect emissions from value chain activities.<ref>https://corporate.dow.com/documents/about/066-00338-01-2020-esg-report.pdf P66</ref> Estimates include all or a subset of Kyoto GHGs [carbon dioxide (CO2 ), methane (CH4 ), nitrous oxide (N2 O), hydrofluorocarbons (HFCs), perfluorocarbons (PFCs), sulfur hexafluoride (SF6 ), and nitrogen trifluoride (NF3 )] depending on the category and estimation methodology.<ref>https://corporate.dow.com/documents/about/066-00338-01-2020-esg-report.pdf P66</ref>   


{| class="wikitable"
{| class="wikitable"
|+GHG Emissions (Megatons of CO2e) <ref>https://corporate.dow.com/documents/about/066-00338-01-2020-esg-report.pdf P180</ref>
|+GHG Emissions (Megatons of CO2e)<ref>https://corporate.dow.com/documents/about/066-00338-01-2020-esg-report.pdf P180</ref>
!GHG Emissions  
!GHG Emissions  
!2018
!2018
Line 348: Line 320:
|-
|-
|Scope 3 GHG Emissions - Total
|Scope 3 GHG Emissions - Total
|69,163
|69.163
|93,943
|93.943
|69,257
|69.257
|-
|-
|Category 1: Purchased Goods & Services  
|Category 1: Purchased Goods & Services  
|42,841
|42.841
|60,053
|60.053
|38,166
|38.166
|-
|-
|Category 2: Capital Goods
|Category 2: Capital Goods
|2,590
|2.590
|2,776
|2.776
|1,760
|1.760
|-
|-
|Category 3: Fuel & Energy-Related Activities
|Category 3: Fuel & Energy-Related Activities
|0,863
|0.863
|8,270*
|8.270*
|4,745
|4.745
|-
|-
|Category 4: Upstream Transportation & Distribution  
|Category 4: Upstream Transportation & Distribution  
|2,158
|2.158
|N/A
|N/A
|N/A
|N/A
Line 377: Line 349:
== Climate Policy and Plans ==
== Climate Policy and Plans ==


===Dow Inc.===
===Dow Chemical (Benelux)===
In order to set clear sustainability goals for 2030 and 2050, Dow Inc. came up with three different focus areas that matched their company the best. the three focus areas are Climate Protection, Circular Economy, and Safer Materials.<ref>https://corporate.dow.com/documents/about/066-00338-01-2020-esg-report.pdf P33</ref>
In 2020 Dow Chemical initiated a joint development agreement with Shell to develop electrified cracking technology. This technology can be powered by clean energy. Ethylene steam crackers are one of the technologies used by Dow and Shell. This technology relies on fossil fuel combustion.<ref>https://corporate.dow.com/en-us/esg/report/environmental-performance/climate-protection.html </ref>  Using renewable electricity could help decarbonize the chemical industry. Currently projects from Shell and Amsterdam and Dow in Terneuzen are working to design and scale “e-cracker” technologies.<ref>https://corporate.dow.com/en-us/esg/report/environmental-performance/climate-protection.html</ref>


'''Climate Protection'''
The overall sustainability statement of Dow Checmical is that the company is in agreement with the goals set by Dow Inc. but Dow Checmical (Benelux) does have its own sustainability targets.


Targets:  
Targets:<ref>https://investors.dow.com/en/news/news-details/2021/Dow-Benelux-outlines-roadmap-to-support-Dutch-Climate-Agreement-achieve-CO2-emissions-neutrality/default.aspx</ref>
*By 2030, Dow will reduce its net annual carbon emissions by 5 million metric tons vs. its 2019 baseline (15% reduction).
* reduce CO2 emissions from Terneuzen operations by more than 40% by 2030


*By 2050, Dow aspires to be carbon neutral (Scope 1 + 2 + 3 plus product benefits).<ref>https://corporate.dow.com/documents/about/066-00338-01-2020-esg-report.pdf P34</ref> 
* Achieve net CO2 neutrality by 2050  


Dow aims to reach these goals through their climate action plan, which includes: Optimizing their facilities and Processes, Increasing Renewables in their Purchased Power Mix, Evaluating Investments in Carbon Capture Usage and Storage, Developing Low-Carbon Technologies for Emissions Reductions, and Deploying Materials to Help Reduce Emissions fr Customers and Industries.<ref>https://corporate.dow.com/documents/about/066-00338-01-2020-esg-report.pdf P36</ref>  
The company is of the opinion that "This roadmap makes Terneuzen one of the most important sites and a role model for the Company's global transition".<ref>https://investors.dow.com/en/news/news-details/2021/Dow-Benelux-outlines-roadmap-to-support-Dutch-Climate-Agreement-achieve-CO2-emissions-neutrality/default.aspx</ref>


'''Circular Economy'''


Targets:
Dow Chemical aims to reach these goals through a three-phase plan:  
* By 2030, Dow will help “stop the waste” by enabling 1 million metric tons of plastic to be collected, reused, or recycled through direct actions and partnerships.
*By 2035, Dow will “Close the loop” by enabling 100% of Dow products sold into packaging application to be reusable or recyclable.<ref>https://corporate.dow.com/documents/about/066-00338-01-2020-esg-report.pdf P44</ref> 


One step that Dow has taken to reach these goals is by becoming an active partner in Operation Clean Sweep.<ref>https://corporate.dow.com/documents/about/066-00338-01-2020-esg-report.pdf P47</ref>  Through these partnership Dow states that they will prevent pellet, flake and powder loss to the marine environment. Each of the Dow facilities has completed a gap assessment to identify and eliminate pellet loss, furthermore their sites are also in the process of upgrading procedures and assets to drive gap closure and eliminate pellet loss.<ref>https://corporate.dow.com/documents/about/066-00338-01-2020-esg-report.pdf P47</ref>  Lastly, they have the company has increased their transparency in reporting on incidents of any uncovered release of plastic from inside Dow facilities.
''Phase 1''


'''Safer Materials'''
The Terneuzen site wants to start the construction of a clean hydrogen plant where by-products from core production processes would be converted into hydrogen and CO2. The hydrogen would be used as a clean fuel in the production process. The CO2 would be captured and stored until alternative technologies develop, and Dow will also look for ways to enable usage of the CO2 in its processes rather than storing it.<ref>https://investors.dow.com/en/news/news-details/2021/Dow-Benelux-outlines-roadmap-to-support-Dutch-Climate-Agreement-achieve-CO2-emissions-neutrality/default.aspx</ref> This hydrogen plant is expected to startup in 2026 and could allow Dow Benelux to reduce their CO2 emissions by approximately 1.4 million tons per year.


Dow inc. does not have a clear goal for 2030 or 2050 when it comes to innovating safer materials.  
Furthermore, phase 1 would include additional investments in site infrastructure for CO2 liquefaction, air separation, hydrogen distribution and CO2 transport.<ref>https://investors.dow.com/en/news/news-details/2021/Dow-Benelux-outlines-roadmap-to-support-Dutch-Climate-Agreement-achieve-CO2-emissions-neutrality/default.aspx</ref>


The steps Dow has taken to produce safer materials are<ref>https://corporate.dow.com/documents/about/066-00338-01-2020-esg-report.pdf P48</ref>:
''Phase 2''


* Assess all products in an appropriate manner to see where they can be improved at each stage of the product life cycle
In the second phase, by 2030, Dow Chemical states that it will capture CO2 from its ethylene oxide plant and replace some gas turbines with electrical motor drives.<ref>https://investors.dow.com/en/news/news-details/2021/Dow-Benelux-outlines-roadmap-to-support-Dutch-Climate-Agreement-achieve-CO2-emissions-neutrality/default.aspx</ref> These two steps together could avoid another 300.000 tons of CO2 per year.  
* Characterize all human and environmental risks of all products using the Dow’s risk characterization process/tool. The risk tier determines the required actions and reviews needed for the product.
* Utilize the Business Risk Review process to assess and minimize possible adverse impact on people, property, and environment as a result of business activity.


===Dow Benelux===
''Phase 3''
In 2020 Dow Chemicals Benelux initiated a joint development agreement with Shell to develop electrified cracking technology. This technology can be powered by clean energy. Ethylene steam crackers are one of the technologies used by Dow and Shell. This technology relies on fossil fuel combustion.<ref>https://corporate.dow.com/en-us/esg/report/environmental-performance/climate-protection.html </ref>  Using renewable electricity could help decarbonize the chemical industry. Currently projects from shell and Amsterdam and Dow in Terneuzen are working to design and scale “e-cracker” technologies.<ref>https://corporate.dow.com/en-us/esg/report/environmental-performance/climate-protection.html</ref>


The overall sustainability statement of Dow Benelux is that they are in agreement with the goals set by Dow Inc but Dow Benelux does have its own sustainability Targets.
In the third phase Dow Chemical aims to develop and implement additional breakthrough technologies to replace fuel usage in the production processes.<ref>https://investors.dow.com/en/news/news-details/2021/Dow-Benelux-outlines-roadmap-to-support-Dutch-Climate-Agreement-achieve-CO2-emissions-neutrality/default.aspx</ref> An example of this is the collaboration with Shell to work on "E-Crackers" as mentioned above.


Targets<ref>https://investors.dow.com/en/news/news-details/2021/Dow-Benelux-outlines-roadmap-to-support-Dutch-Climate-Agreement-achieve-CO2-emissions-neutrality/default.aspx</ref>:
=== NewClimate Institute (NCI) Report ===
* reduce CO2 emissions from Terneuzen operations by more than 40% by 2030


* Achieve net CO2 neutrality by 2050
== Due Diligence ==


This roadmap makes Terneuzen one of the most important sites and a role model for the Company's global transition.<ref>https://investors.dow.com/en/news/news-details/2021/Dow-Benelux-outlines-roadmap-to-support-Dutch-Climate-Agreement-achieve-CO2-emissions-neutrality/default.aspx</ref>
===Due Diligence===
According to research conducted by the Political Economy Research Institute, Dow Inc. ranks sixth on the Toxic 100 Air Rank and 2nd on the Toxic 100 Water Rank.<ref>Political Economy Research Institute. ''Combined Toxic 100/Greenhouse 100 Indexes (2021 Report, Based on 2019 Data),'' accessed on May 5th 2022. https://peri.umass.edu/combined-toxic-100-greenhouse-100-indexes-current</ref>


===Scandals and controversies===


Dow Benelux aims to reach these goals through a three-phase plan:
'''Terneuzen'''


''Phase 1''
In 2014, the court in Middleburg gave Dow Benelux BV in Terneuzen a 1.8 million euro fine.<ref>https://www.nu.nl/economie/3734244/miljoenenboete-chemiebedrijf-dow-.html?_ga=2.138385145.893487642.1643714626-1201189375.1643036636</ref> Originally 5 million euros were demanded of the company due to various environmental crimes between 2005 and 2008. The crimes were in relation to chemical leaks at the manufacturing sites in Terneuzen. The court could not conclude that there was a lack of safety protocols at Dow Benelux, but could say that the safety protocols were not enforced strictly enough. Therefore, the court demanded 1,8 million euros instead of 5 million.<ref>https://www.nu.nl/economie/3734244/miljoenenboete-chemiebedrijf-dow-.html?_ga=2.138385145.893487642.1643714626-1201189375.1643036636 </ref> 


The Terneuzen sites wants to start the construction of a clean hydrogen plant where by-products from core production processes would be converted into hydrogen and CO2. The hydrogen would be used as a clean fuel in the production process. The CO2 would be captured and stored until alternative technologies develop, and Dow will also look for ways to enable usage of the CO2 in its processes rather than storing it.<ref>https://investors.dow.com/en/news/news-details/2021/Dow-Benelux-outlines-roadmap-to-support-Dutch-Climate-Agreement-achieve-CO2-emissions-neutrality/default.aspx</ref> This hydrogen plant is expected to startup in 2026 and could allow Dow Benelux to reduce their CO2 emissions by approximately 1,4 million tons per year.
One of these incidents was in 2005 when a tank with benzene flooded. Another example was in 2006 when benzene was leaking from the pipelines for multiple days.<ref>https://www.nu.nl/economie/3734244/miljoenenboete-chemiebedrijf-dow-.html?_ga=2.138385145.893487642.1643714626-1201189375.1643036636 </ref> Even though Dow Chemical did hire companies to repair this leak it did not close down the manufacturing site, putting its employees at risk of explosion.<ref>https://www.nu.nl/economie/3734244/miljoenenboete-chemiebedrijf-dow-.html?_ga=2.138385145.893487642.1643714626-1201189375.1643036636 </ref>


Furthermore, phase 1 would include additional investments in site infrastructure for CO2 liquefaction, air separation, hydrogen distribution and CO2 transport. <ref>https://investors.dow.com/en/news/news-details/2021/Dow-Benelux-outlines-roadmap-to-support-Dutch-Climate-Agreement-achieve-CO2-emissions-neutrality/default.aspx</ref>
'''Groningen'''
 
''Phase 2''
 
In the second phase, by 2030, Dow states that they will capture CO2 from its ethylene oxide plant and replace some gas turbines with electrical motor drives.<ref>https://investors.dow.com/en/news/news-details/2021/Dow-Benelux-outlines-roadmap-to-support-Dutch-Climate-Agreement-achieve-CO2-emissions-neutrality/default.aspx</ref> These two steps together could avoid another 300.000 tons of CO2 per year.


''Phase 3''
In 2011, at one of the daughter companies of Dow Chemicals, Farmsun in Groningen, a fault in loading Sodium off of a train wagon caused for a fire.<ref>https://nos.nl/artikel/310870-brand-in-natriumfabriek-onder-controle</ref>  While off-loading the Sodium off the train wagon several hundred kilos of sodium fell on the ground and caught fire. After several explosions in the building next to the train, the fire department was able to put out the fire.<ref>https://nos.nl/artikel/310870-brand-in-natriumfabriek-onder-controle</ref> The fire caused for a lot of smoke in the surrounding neighborhoods, the fire department recommended that people keep their windows and doors closed, and to stay inside.<ref>https://nos.nl/artikel/310870-brand-in-natriumfabriek-onder-controle</ref>
 
In the third phase Dow aims to develop and implement additional breakthrough technologies to replace fuel usage in the production processes.<ref>https://investors.dow.com/en/news/news-details/2021/Dow-Benelux-outlines-roadmap-to-support-Dutch-Climate-Agreement-achieve-CO2-emissions-neutrality/default.aspx</ref> An example of this is the collaboration with Shell to work on "E-Crackers" as mentioned earlier.
 
===Due Diligence===


== Conclusion ==
== Conclusion ==


Dow Chemicals is one of the biggest companies in their field. With 109 manufacturing sites in 31 different countries and employing around 36,500 employees, this company has a moral responsibility to be a leader in fighting climate change.
Dow Inc is one of the biggest companies in the chemical sector. With 109 manufacturing sites in 31 different countries and employing around 36.500 employees, this company has a moral responsibility to be a leader in fighting climate change.


Dow Chemicals and Dow Benelux have both set clear goals for 2030 and 2050 but the way in which these goals will be achieved is less clear. The three-phase plan set by Dow Benelux makes them one of the most important sites and a role model for the Company's global transition. However, the three-phase plan lacks concrete ideas and the scope 3 emissions.  
Dow Chemical (Benelux) has set clear goals for 2030 and 2050 but the way in which these goals will be achieved is less clear. The three-phase plan, according to the company itself "one of the most important sites and a role model for the company's global transition". However, the three-phase plan lacks concrete ideas and the scope 3 emissions are not yet included at all.  


These limitations with the climate goals of 2030 and 2050 make it difficult to assess if it is enough to stay within the set limits of the Paris Agreement.
These limitations with the climate goals of 2030 and 2050 make it difficult to assess if it is enough to stay within the set limits of the Paris Agreement.


==References==
==References==

Latest revision as of 11:27, 13 July 2022

Dow Chemical Benelux
Bedrijf Logo
Quick Facts
TypePublic
sectorChemical Industries
Headquarters (Benelux Organization)Terneuzen, Netherlands
Year of Origin1955
Emissions (All Scopes)108 Megatons of CO2 (2020) (Dow Inc.)
NCI assessmentLow
Total Revenue54.9 billion USD (2020)
Stock ExchangeNew York
Key PeopleAnton van Beek(President-director Benelux) Jim Fitterling(CEO & Chairman Dow Inc.)
Number of Employees4,000 (Benelux)
SubsidiariesDow Inc. consists of 400 subsidiaries[1]

Dow Inc (International)

Dow inc, was founded in 1897 by H.H Dow an electrochemical pioneer.[2] Dow Chemicals manufactures plastics, chemicals, and agricultural products.[3] The company has 36,500 employees and 109 manufacturing sites in 31 different countries.[4] The headquarters are located in Michigan, United States.[5] In 2021, Dow chemical reported a revenue of 54.9 billion USD.[6]

Dow Chemical (Benelux)

Dow Chemical Benelux styled as Dow Chemical, is part of Dow Inc. Dow has been active in the Benelux since 1955.[7] In 1961 Dow purchased a manufacturing site in Terneuzen, The Netherlands.[8] Now Dow Chemical Benelux is located in eight major locations in the Netherlands (Terneuzen, Delfzijl and Dordrecht) and Belgium (Antwerp, Brussels, Tertre, Zwijndrecht and since 2016, Seneffe).[9] With 16 factories, Dow Terneuzen is Dow’s second-largest manufacturing site in the world.[10] Besides this, Terneuzen is also the central point for supporting Dow services in Europe, the Middle East, Africa and India. Dow Benelux overall has approximately 4000 employees,[11] of which 3550 employees work at the location in Terneuzen.[12] The Value Park, located at the Terneuzen site, covers 140 hectares and is targeted at companies working in the chemical industries. The park is located at a convient location as it is directed to railroads, the road network, and international waterways.[13] Futhermore, the park is located to the Dow pipeline that extents from Terneuzen to Antwerp (220km).[14] This pipeline transports ethylene, naphtha and propylene.[15] The size and importance of Dow Benelux to Dow Inc. shows that they are a key player in their field.

Company Structure

Dow Inc. works with two boards, the leadership team and the board of directors. The leadership team is focused on the day-to-day business such as creating strong and balanced growth for their stakeholders.[16] The board of directors focuses on the broad corporate policy and the overall performance of the company through oversight of management and stewardship of the company.[17] The board appoints the company’s officers and assigns to them responsibilities for the management of the company’s operations.[18]

There is no information available on the structure of the leadership at Dow Chemical. What is known is that Anton van Beek is the president-director of Dow Chemical[19] and that Neil Carr is the president of the operations in Europe.

Leadership Team

Dow Chemical Leadership Team of 2020[20]
Name Function Remuneration x1000USD
Jim Fitterling Chief Executive Officer & Chairman 22211
Howard Ungerleider President and CFO 8475
Jack Broodo President, Feedstocks & Energy Unknown
Neil Carr President, Europe, Middle East, Africa, and India Unknown
Karen S. Carter Chief HR and Chief Inclusion Officer Unknown
Diego Donoso President Packaging & Specialty Plastics Unknown
Mauro Gregorio President, Performance Materials & Coatings Unknown
Melanie Kalmar Corporate VP Chief Information Officer & Chief Digital Officer Unknown
Torsten Kraef Senior VP, Corporate Development Unknown
Jane Palmieri President, Industrial Intermediates & Infrastructures; Asia Pacific Oversight Unknown
John Sampson Senior VP, Operations, Manufacturing and Engineering Unknown
A.N. Sreeram Senior VP, Research & Development and Chief Technology Officer 5185
Amy E. Wilson General Counsel and Corporate Secretary 5729

The remuneration is from 2020 and includes i) Salary, ii) Stock Awards, iii) Option Awards, iv) Non-Equity Incentive Plan Compensation, v) Change in pension value, vi) Other (Travel Expenses, Tax reimbursements, etc.).[21]

Board of Directors

Dow Chemical Board of Directors Team 2020[22]
Name Function Remuneration x1000USD
Jim Fitterling Chief Executive Officer & Chairman 22211
Richard K. Davis Lead Director Dow Inc.
Samuel R. Allen Former Chairman and CEO, Deere & Company 325
Guardie Banister Jr. Former President and CEO, Aera Energy LLC 185
Wesley G. Bush Former Chairman and CEO Northrop Grumman Corporation 310
Debra L. Dial Senior Vice President and Controller
Jeff M. Fettig Former Chairman and Chief Executive Officer
Jacquiline C. Hinman Former Chairman, President and CEO CH2M HILL 310
Luis Alberto Moreno Managing Director
Jill S. Wyant Executive VP of Innovation and Transformation Ecolab Inc. 278
Daniel W. Yohannes Former U.S. Ambassador to the Organisation for Economic Co-operation and Development 310

The remuneration is of 2020 and includes; Fees earned and stock awards.[23]

Accountant

The independent Auditors of Dow Chemical are Deloitte & Touche LLP (Deloitte).[24] They have been the auditors since 1905.[25] In their auditor reports, they do not mention climate change or climate-related risks.

Main Activities

Dow Chemical is active in the chemical sector with products like polystyrene, polyurethane, polyethylene, and polypropylene.[26] These products are used in many different markets such as agriculture, healthcare, and packaging.[27]

Government

Dow Chemical does not have royal status.[28] Dow Chemical has not received NOW support from the Dutch government.[29]

Paris Agreement until Today

Dow Inc. accepts the scientific consensus that climate change caused by increasing greenhouse gas (GHG) emissions from human activity has serious consequences for the planet and society if left unaddressed.[30] Furthermore, Dow Inc. supports the Paris agreement and is committed to achieve the goal of keeping global temperature rise well below 2°C, and to pursue efforts to limit the increase to 1.5°C.[31]

Dow Inc. created a set of sustainability goals to reach by 2025. In its latest ESG report, the company provided an update on these goals in relation to the progress made by 2020.

Goal 1: Leading the Blueprint. With this goal, Dow Inc aims to cultivate a societal mindset shift on the value and necessity of incorporating diverse perspectives and collaborations to address global challenges. Dow Inc measures this goal through the creation and implementation of the company's Blueprint Thinking Toolkit and through sharing blueprints.[32] In 2020 Dow Inc's Blueprint thinking work and the toolkit were shortlisted in the Think Global Forum's award.[33]

Goal 2: Delivering Breakthrough Innovations. This goal focuses on the well-being of humanity and the environment based on the life-cycle of Dow Inc's products.[34] Each Dow business has its own business-specific product sustainability goals. These goals are tracked using the Sustainable Chemistry Index (SCI) survey. This survey showed that, in 2020, 48% of sales were from products that address world challenges.[35]

Goal 3: Advancing a Circular Economy. In 2020, Dow announced that the company will focus on: designing materials for a circular economy, stopping waste and closing the loop on materials in the company's operations, enabling others to advance the circular economy, and scaling business models to keep materials in play.[36]

Goal 4: Valuing Nature. In 2020, Dow Inc realized $100 million in business value towards this goal. Since the launch of this goal, Dow Inc has realized $530 million in business value through projects that are better for business and better for nature.[37]

Goal 5: Safe material for a sustainable planet. In 2020, Dow announced a sustainable alternative ECOSURF EH. This product offers a reduction in aquatic toxicity and reduces potential eco-toxicity over a lifetime. This product allows Dow Inc to create more sustainable formulations for cleaning, coating, and agriculture products.[38]

Goal 6: Engaging for impact. Target, by 2025 Dow inc. employees and partners worldwide will apply their resources to help build sustainable and resilient communities. In 2020, the Employee Experience score was 8 percentage points higher for Dow employees who volunteered vs. those who did not.[39]

Goal 7: World-leading operations (WLO) performance. Dow Inc uses the WLO to track its performance in natural resource efficiency, environment, and health and safety. In 2020, Dow Inc increased its total worker health index by 10 percentage points over 2019.[40]

Financial Results since 2015

Financial situation Dow Inc
Year Revenue Profit (loss) Dividend
2015[41] 48.8 billion USD 7.4 billion USD 1.91 billion USD
2016[42] 48.2 billion USD 3.9 billion USD 2.04 billion USD
2017[43] 62.5 billion USD 1.5 billion USD 3.40 billion USD
2018 XXX billion USD XXX billion USD XXX billion USD
2019 42.9 billion USD (1.2) billion USD XXX billion USD
2020 38.5 billion USD 2.1 billion USD XXX billion USD
2021[44] 54.9 billion USD 8.1 billion USD XXX billion USD

Current Emissions

Total emissions 108 Megatons of CO2 (2020)
Scope 1 Scope 2 Scope 3
28.2 Megatonnes of CO2 (2020) 11.46 Megatonnes of CO2 (2020) 69.257 Megatonnes of CO2 (2020)

Scope 1 and 2

For the Dow Inc. GHG emissions report, scope 1 includes Kyoto Protocol greenhouse gases carbon dioxide (CO2), methane (CH4), nitrous oxide (N2O), hydrofluorocarbons (HFCs), perfluorocarbons (PFCs), sulfur hexafluoride (SF6),and nitrogen trifluoride (NF3) as well as any non-Kyoto greenhouse gases emitted.[45] Scope 2 includes carbon dioxide (CO2), methane (CH4) and nitrous oxide (N2 O).[46] Reported scope 1 and 2 GHG emissions showed little change from 2018.

GHG Emissions (megatons of CO2e) [47]
GHG Emissions 2018 2019 2020
Scope 1 GHG Emissions 28.4 27.2 28.2
Scope 2 GHG Emissions - Market-Based 6.66 6.07 6.56
Scope 2 GHG Emissions - Location-Based 7.6 5.2 4.9
Scope 1 + Scope 2 GHG Emissions 35.06 33.27 34.76

Scope 3

Scope 3 emissions are defined by the GHG Protocol as indirect emissions from value chain activities.[48] Estimates include all or a subset of Kyoto GHGs [carbon dioxide (CO2 ), methane (CH4 ), nitrous oxide (N2 O), hydrofluorocarbons (HFCs), perfluorocarbons (PFCs), sulfur hexafluoride (SF6 ), and nitrogen trifluoride (NF3 )] depending on the category and estimation methodology.[49]

GHG Emissions (Megatons of CO2e)[50]
GHG Emissions 2018 2019 2020
Scope 3 GHG Emissions - Total 69.163 93.943 69.257
Category 1: Purchased Goods & Services 42.841 60.053 38.166
Category 2: Capital Goods 2.590 2.776 1.760
Category 3: Fuel & Energy-Related Activities 0.863 8.270* 4.745
Category 4: Upstream Transportation & Distribution 2.158 N/A N/A

(*)Value adjusted to reflect correction of an error since reported in the 2018/2019 Sustainability Report

Climate Policy and Plans

Dow Chemical (Benelux)

In 2020 Dow Chemical initiated a joint development agreement with Shell to develop electrified cracking technology. This technology can be powered by clean energy. Ethylene steam crackers are one of the technologies used by Dow and Shell. This technology relies on fossil fuel combustion.[51] Using renewable electricity could help decarbonize the chemical industry. Currently projects from Shell and Amsterdam and Dow in Terneuzen are working to design and scale “e-cracker” technologies.[52]

The overall sustainability statement of Dow Checmical is that the company is in agreement with the goals set by Dow Inc. but Dow Checmical (Benelux) does have its own sustainability targets.

Targets:[53]

  • reduce CO2 emissions from Terneuzen operations by more than 40% by 2030
  • Achieve net CO2 neutrality by 2050

The company is of the opinion that "This roadmap makes Terneuzen one of the most important sites and a role model for the Company's global transition".[54]


Dow Chemical aims to reach these goals through a three-phase plan:

Phase 1

The Terneuzen site wants to start the construction of a clean hydrogen plant where by-products from core production processes would be converted into hydrogen and CO2. The hydrogen would be used as a clean fuel in the production process. The CO2 would be captured and stored until alternative technologies develop, and Dow will also look for ways to enable usage of the CO2 in its processes rather than storing it.[55] This hydrogen plant is expected to startup in 2026 and could allow Dow Benelux to reduce their CO2 emissions by approximately 1.4 million tons per year.

Furthermore, phase 1 would include additional investments in site infrastructure for CO2 liquefaction, air separation, hydrogen distribution and CO2 transport.[56]

Phase 2

In the second phase, by 2030, Dow Chemical states that it will capture CO2 from its ethylene oxide plant and replace some gas turbines with electrical motor drives.[57] These two steps together could avoid another 300.000 tons of CO2 per year.

Phase 3

In the third phase Dow Chemical aims to develop and implement additional breakthrough technologies to replace fuel usage in the production processes.[58] An example of this is the collaboration with Shell to work on "E-Crackers" as mentioned above.

NewClimate Institute (NCI) Report

Due Diligence

Due Diligence

According to research conducted by the Political Economy Research Institute, Dow Inc. ranks sixth on the Toxic 100 Air Rank and 2nd on the Toxic 100 Water Rank.[59]

Scandals and controversies

Terneuzen

In 2014, the court in Middleburg gave Dow Benelux BV in Terneuzen a 1.8 million euro fine.[60] Originally 5 million euros were demanded of the company due to various environmental crimes between 2005 and 2008. The crimes were in relation to chemical leaks at the manufacturing sites in Terneuzen. The court could not conclude that there was a lack of safety protocols at Dow Benelux, but could say that the safety protocols were not enforced strictly enough. Therefore, the court demanded 1,8 million euros instead of 5 million.[61]

One of these incidents was in 2005 when a tank with benzene flooded. Another example was in 2006 when benzene was leaking from the pipelines for multiple days.[62] Even though Dow Chemical did hire companies to repair this leak it did not close down the manufacturing site, putting its employees at risk of explosion.[63]

Groningen

In 2011, at one of the daughter companies of Dow Chemicals, Farmsun in Groningen, a fault in loading Sodium off of a train wagon caused for a fire.[64] While off-loading the Sodium off the train wagon several hundred kilos of sodium fell on the ground and caught fire. After several explosions in the building next to the train, the fire department was able to put out the fire.[65] The fire caused for a lot of smoke in the surrounding neighborhoods, the fire department recommended that people keep their windows and doors closed, and to stay inside.[66]

Conclusion

Dow Inc is one of the biggest companies in the chemical sector. With 109 manufacturing sites in 31 different countries and employing around 36.500 employees, this company has a moral responsibility to be a leader in fighting climate change.

Dow Chemical (Benelux) has set clear goals for 2030 and 2050 but the way in which these goals will be achieved is less clear. The three-phase plan, according to the company itself "one of the most important sites and a role model for the company's global transition". However, the three-phase plan lacks concrete ideas and the scope 3 emissions are not yet included at all.

These limitations with the climate goals of 2030 and 2050 make it difficult to assess if it is enough to stay within the set limits of the Paris Agreement.

References

  1. ↑ https://s23.q4cdn.com/981382065/files/doc_financials/2020/ar/2020_Dow_Inc_Annual_Report.pdf P211-216
  2. ↑ https://corporate.dow.com/en-us/about/company/history/timeline/golden-age-of-inorganics.html
  3. ↑ https://nl.dow.com/en-us
  4. ↑ https://s23.q4cdn.com/981382065/files/doc_financials/2019/ar/874827_029_CL_WEB.pdf
  5. ↑ https://corporate.dow.com/en-us/locations.html
  6. ↑ https://s23.q4cdn.com/981382065/files/doc_financials/2021/ar/Dow_Inc_2021_Annual_Report.pdf#xd_co_f=ZTE3MDQ5MDktOWFlNC00YjQwLWI2ODAtNjY5OGZhZDlmYmYz~ p73
  7. ↑ https://nl.dow.com/en-us.html
  8. ↑ https://corporate.dow.com/en-us/about/company/history/timeline/going-global-first-era-commercialization.html
  9. ↑ https://nl.dow.com/en-us.html
  10. ↑ https://nl.dow.com/en-us/locations/terneuzen.html
  11. ↑ https://nl.dow.com/en-us.html
  12. ↑ https://nl.dow.com/en-us/locations/terneuzen.html
  13. ↑ https://nl.dow.com/en-us/locations/terneuzen.html
  14. ↑ https://nl.dow.com/en-us/locations/terneuzen.html
  15. ↑ https://nl.dow.com/en-us/locations/terneuzen.html
  16. ↑ https://s23.q4cdn.com/981382065/files/doc_financials/2020/ar/2020_Dow_Inc_Annual_Report.pdf p6
  17. ↑ https://s23.q4cdn.com/981382065/files/doc_financials/2020/ar/Dow_Inc_2021_Proxy_Statement.pdf p19
  18. ↑ https://s23.q4cdn.com/981382065/files/doc_financials/2020/ar/Dow_Inc_2021_Proxy_Statement.pdf p19
  19. ↑ https://www.ad.nl/zeeland/nieuw-hoofdkantoor-dow-zie-dit-als-de-bol-com-van-de-chemie~aed92043/
  20. ↑ https://s23.q4cdn.com/981382065/files/doc_financials/2020/ar/2020_Dow_Inc_Annual_Report.pdf P6
  21. ↑ https://s23.q4cdn.com/981382065/files/doc_financials/2020/ar/Dow_Inc_2021_Proxy_Statement.pdf P62
  22. ↑ https://s23.q4cdn.com/981382065/files/doc_financials/2020/ar/2020_Dow_Inc_Annual_Report.pdf P7
  23. ↑ https://s23.q4cdn.com/981382065/files/doc_financials/2020/ar/Dow_Inc_2021_Proxy_Statement.pdf P38
  24. ↑ https://s23.q4cdn.com/981382065/files/doc_financials/2020/ar/2020_Dow_Inc_Annual_Report.pdf P169
  25. ↑ https://s23.q4cdn.com/981382065/files/doc_financials/2020/ar/2020_Dow_Inc_Annual_Report.pdf P73
  26. ↑ https://nl.dow.com/en-us.html
  27. ↑ https://nl.dow.com/en-us.html
  28. ↑ https://www.koninklijkhuis.nl/onderwerpen/onderscheidingen/predicaat-koninklijk/overzicht-predicaat-koninklijk
  29. ↑ https://www.uwv.nl/overuwv/Images/uwv-register-now-vijfde-aanvraagperiode.pdf
  30. ↑ https://corporate.dow.com/documents/about/066-00338-01-2020-esg-report.pdf p35
  31. ↑ https://corporate.dow.com/documents/about/066-00338-01-2020-esg-report.pdf p35
  32. ↑ https://corporate.dow.com/documents/about/066-00338-01-2020-esg-report.pdf P53
  33. ↑ https://corporate.dow.com/documents/about/066-00338-01-2020-esg-report.pdf P53
  34. ↑ https://corporate.dow.com/documents/about/066-00338-01-2020-esg-report.pdf P54
  35. ↑ https://corporate.dow.com/documents/about/066-00338-01-2020-esg-report.pdf P54
  36. ↑ https://corporate.dow.com/documents/about/066-00338-01-2020-esg-report.pdf P55
  37. ↑ https://corporate.dow.com/documents/about/066-00338-01-2020-esg-report.pdf P56
  38. ↑ https://corporate.dow.com/documents/about/066-00338-01-2020-esg-report.pdf p57
  39. ↑ https://corporate.dow.com/documents/about/066-00338-01-2020-esg-report.pdf p58
  40. ↑ https://corporate.dow.com/documents/about/066-00338-01-2020-esg-report.pdf p 59
  41. ↑ annualreports.com/HostedData/AnnualReportArchive/t/NYSE_DOW_2015.pdf
  42. ↑ https://www.annualreports.com/HostedData/AnnualReportArchive/t/NYSE_DOW_2016.pdf
  43. ↑ https://www.annualreports.com/HostedData/AnnualReportArchive/t/NYSE_DOW_2017.PDF
  44. ↑ https://s23.q4cdn.com/981382065/files/doc_financials/2021/ar/Dow_Inc_2021_Annual_Report.pdf#xd_co_f=ZTE3MDQ5MDktOWFlNC00YjQwLWI2ODAtNjY5OGZhZDlmYmYz~ p73
  45. ↑ https://corporate.dow.com/documents/about/066-00338-01-2020-esg-report.pdf P65
  46. ↑ https://corporate.dow.com/documents/about/066-00338-01-2020-esg-report.pdf P65
  47. ↑ https://corporate.dow.com/documents/about/066-00338-01-2020-esg-report.pdf P180
  48. ↑ https://corporate.dow.com/documents/about/066-00338-01-2020-esg-report.pdf P66
  49. ↑ https://corporate.dow.com/documents/about/066-00338-01-2020-esg-report.pdf P66
  50. ↑ https://corporate.dow.com/documents/about/066-00338-01-2020-esg-report.pdf P180
  51. ↑ https://corporate.dow.com/en-us/esg/report/environmental-performance/climate-protection.html
  52. ↑ https://corporate.dow.com/en-us/esg/report/environmental-performance/climate-protection.html
  53. ↑ https://investors.dow.com/en/news/news-details/2021/Dow-Benelux-outlines-roadmap-to-support-Dutch-Climate-Agreement-achieve-CO2-emissions-neutrality/default.aspx
  54. ↑ https://investors.dow.com/en/news/news-details/2021/Dow-Benelux-outlines-roadmap-to-support-Dutch-Climate-Agreement-achieve-CO2-emissions-neutrality/default.aspx
  55. ↑ https://investors.dow.com/en/news/news-details/2021/Dow-Benelux-outlines-roadmap-to-support-Dutch-Climate-Agreement-achieve-CO2-emissions-neutrality/default.aspx
  56. ↑ https://investors.dow.com/en/news/news-details/2021/Dow-Benelux-outlines-roadmap-to-support-Dutch-Climate-Agreement-achieve-CO2-emissions-neutrality/default.aspx
  57. ↑ https://investors.dow.com/en/news/news-details/2021/Dow-Benelux-outlines-roadmap-to-support-Dutch-Climate-Agreement-achieve-CO2-emissions-neutrality/default.aspx
  58. ↑ https://investors.dow.com/en/news/news-details/2021/Dow-Benelux-outlines-roadmap-to-support-Dutch-Climate-Agreement-achieve-CO2-emissions-neutrality/default.aspx
  59. ↑ Political Economy Research Institute. Combined Toxic 100/Greenhouse 100 Indexes (2021 Report, Based on 2019 Data), accessed on May 5th 2022. https://peri.umass.edu/combined-toxic-100-greenhouse-100-indexes-current
  60. ↑ https://www.nu.nl/economie/3734244/miljoenenboete-chemiebedrijf-dow-.html?_ga=2.138385145.893487642.1643714626-1201189375.1643036636
  61. ↑ https://www.nu.nl/economie/3734244/miljoenenboete-chemiebedrijf-dow-.html?_ga=2.138385145.893487642.1643714626-1201189375.1643036636
  62. ↑ https://www.nu.nl/economie/3734244/miljoenenboete-chemiebedrijf-dow-.html?_ga=2.138385145.893487642.1643714626-1201189375.1643036636
  63. ↑ https://www.nu.nl/economie/3734244/miljoenenboete-chemiebedrijf-dow-.html?_ga=2.138385145.893487642.1643714626-1201189375.1643036636
  64. ↑ https://nos.nl/artikel/310870-brand-in-natriumfabriek-onder-controle
  65. ↑ https://nos.nl/artikel/310870-brand-in-natriumfabriek-onder-controle
  66. ↑ https://nos.nl/artikel/310870-brand-in-natriumfabriek-onder-controle
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