Grade summary

In this year’s ranking, Dow has increased the number of hazardous chemicals it produces or uses. Also, after having reduced its portfolio of persistent chemicals in last year’s ranking, it has now increased again from five to seven – one of which is a globally banned POP (Persistent Organic Pollutant). In addition, the company lacks a strategy for phasing out hazardous chemicals. Dow gets zero points in the Lack of Controversies category, due to its substantial penalty record over the last decade. Dow’s attempt to drive the circular economy by improving the circularity of plastics is a good initiative. However, clear and timebound targets are missing. The company has developed circular products and has a product stewardship team that conducts hazard assessments of its products, which helps them attain 7 out of 12 points in the Development of Safer Chemicals category.

How did we come to this score?

Opportunities for improvement

1. Map and phase out persistent chemicals
   Dow produces seven persistent chemicals, two more than in the previous year. In addition, one of these is a globally restricted POP (Persistent Organic Pollutant). Persistent substances are also known as “forever chemicals” due to the fact that they do not break down in nature. Instead, these chemicals — which are linked to many negative health effects — build up over time. The consequences of these substances are becoming increasingly detrimental, not only for human health and the environment but also for investors. Investors risk stranded assets now that the regulatory speed is accelerating, and are also exposed to significant liability risks since more chemical companies are being sued for contamination. Dow should therefore identify all uses, and publish volumes and percentage of total revenue of its persistent substances. The company should also publish a time-bound phase-out plan of each persistent chemical and an annual progression report to go with it.
2. Reduce hazardous portfolio
   Scientists agree that chemical pollution has crossed a planetary boundary and become an urgent global problem. This threatens the stability of global ecosystems upon which humanity depends, by damaging the biological and physical processes that underpin all life. Since Dow has 73 hazardous chemicals in its product portfolio, a paramount improvement point for the company is to reduce this number. Dow should therefore make sure to identify all uses, and publish volumes and percentage of total revenue of its hazardous substances. It should also publish a reduction road map of each hazardous chemical and an annual progression report. If the company continues to produce any hazardous substances, it needs to present a rationale for its essential use, motivate the production volume, and state how much money it spends on research and development to find a safer alternative.

3. Market sustainable products and safer alternatives
   Dow has self-declared sustainable products in its portfolio, but these are not marketed on any independent third-party platform. Therefore, they are hard to find for downstream users looking to substitute hazardous chemicals. A good place to advertise is ChemSec’s Marketplace, where buyers and suppliers can find and market safer alternatives.

Category breakdown