At Dow, our ambition is to become the most innovative, customer-centric, inclusive, and sustainable materials science company in the world. To achieve this vision requires a combination of near-term adaptability and long-term strategic decision making, to ensure the Company remains relevant and competitive while creating meaningful value for all stakeholders both today and into the future. Since its separation from DowDuPont in 2019, Dow has made significant progress advancing its ambition, supported by a long-term mindset that is reflected in everything we do. This approach has ensured Dow’s business remains resilient across the economic cycle, delivering top-quartile cash flow, cost performance, net debt reduction and shareholder renumeration, all while advancing our leadership position in ESG.
Consumers drive demand for sustainable products
The foundation of our leadership is a purpose-built portfolio, which is positioned to solve many of the world’s toughest challenges. Importantly, there are several growth drivers in the industry that will increase demand for our products, including connectivity, efficiency, and sustainability. Specifically, sustainability is a significant growth opportunity for Dow as customers around the world are demanding more circular and sustainable products. And with Dow’s global scale, leadership in materials science and chemistry, and alignment to attractive market verticals, our portfolio is differentiated and well-equipped to capture growth across these trends over the long-term.
Plan to achieve a net-zero carbon emissions future while growing earnings
To that end, in October 2021, we announced a disciplined plan to continue delivering value growth while achieving a net-zero carbon emissions future. Through these efforts, we expect to increase underlying EBITDA by more than $3 billion through the execution of higher-return, lower-risk, faster-payback projects as well as our efficiency programs, including plans to digitalize the company and become more customer-centric. At the same time, we are implementing a phased, site-by-site approach to replace end-of-life assets with lower-emissions, lower-capex, higher-ROIC and higher-capacity operations, with a clear path to a 30% reduction in scope 1 and 2 emissions by 2030, and zero-carbon emissions by 2050.
Developing the world’s first net-zero carbon emissions ethylene cracker and derivatives complex that
will decarbonize 20% of Dow’s worldwide ethylene capacity
Notably, we are developing the world’s first net-zero carbon emissions ethylene cracker and derivatives complex in Fort Saskatchewan, Alberta, which will decarbonize ~20% of our global ethylene capacity while more than tripling the ethylene and downstream derivative capacity at the site and delivering ~$1 billion in EBITDA growth by 2030. This is a key investment that allows us to meet the increasing needs of our customers and brand owners seeking to lower the carbon footprint of their products. For example, plastics remain an indispensable part of a low-carbon future – they make cars lighter and more fuel efficient, homes more energy-efficient and reduce food waste – a major contributor to the world’s carbon emissions. Our disciplined approach positions us well to lead the industry in decarbonizing, growing and accelerating our path toward carbon neutrality.
ESG metrics added to employee performance awards programs
We expect to deliver all this while continuing to enhance our industry-leading ESG profile in support of our ambition. We are accelerating our actions to protect the planet, placing an intentional focus on inclusion, diversity and equity, and driving best-in-class governance practices. We do this while ensuring the health, safety and wellbeing of our people; the reliability of our operations; and serving as a force for positive social change in the communities where we live and work. Consistent with our commitment to transparency and accountability, we’ve set clear goals against which to measure our progress, including the addition of ESG metrics to our employee and officer Performance Award programs, as well as the publication of INtersections – our holistic and comprehensive ESG report.
By working at the intersections of science and sustainability, culture and accountability, Dow is partnering with others to encourage new thinking, advance ESG issues that matter most to our stakeholders, and unlock new avenues of growth that will power our success for the future.