30% of Dow Shareholders Urge Company to Study Future With Less Virgin Plastic
FOR IMMEDIATE RELEASE
MEDIA CONTACT: Stefanie Spear, [email protected], 216-387-1609
BERKELEY, CALIFORNIA—APRIL 25, 2023—A first-time shareholder resolution filed with Dow Inc. by shareholder representative As You Sow, asking the company to report on the impact of reduced global demand for virgin plastic on its business was supported by more than 30% of shareholders during the company’s recent annual general meeting.
Dow is the world’s third largest producer of single-use bound plastic resins (9.2 million tons), which ultimately results in as much as 5.3 million tons of plastic waste. Single-use plastics are a major source of the 11 million tons of plastics that enter global waterways annually, fueling the global plastic pollution crisis.
“We are pleased that a strong contingent of shareholders agree that Dow should assess its reliance on virgin single-use plastics,” said Conrad MacKerron, senior vice president of As You Sow. “This analysis will help it manage the growing risks and provide transparency on its commitment to use recycled postconsumer plastic as feedstock for new products.”
The Pew Charitable Trust’s widely respected Breaking the Plastic Wave report lays out a viable path for reducing plastic pollution by 80% by 2040 through actions including reducing virgin single-use plastics demand.
Global and local leaders are beginning to impose laws and regulations to curb plastic use and to impose costs to manufacturers and users of plastics for the disposal and recycling of plastic waste. Last year California passed the first U.S. law mandating specific cuts in the use of plastic packaging: 25% over 10 years. Calls for reduced production are supported by influential groups like UNEP, OECD, and NAS, which all agree that the current rate of expansion of virgin plastic production is unsustainable.
Large users of plastic packaging also recognize the need for action. Coca-Cola Co, Nestle, PepsiCo, Unilever, and Walmart are members of the Business Coalition for a Global Plastics Treaty and have each signaled their support for a “reduction of plastic production and use,” especially single-use plastic made from fossil fuels that risks worsening the plastic pollution crisis.
Investors, regulators, and customers alike look to companies like Dow to effectively respond to the plastic pollution crisis, and the requested actions would be a strong step forward.
The proposal also asked the company to disclose information about controversial chemical recycling technologies it will use as it begins to generate significant amounts of new resin from discarded plastic waste to ensure they are cost-effective, process and energy efficient, and environmentally sound.
Last year, similar proposals at ExxonMobil and Phillips 66 attracted strong support at other petrochemical companies — 50.4% at Phillips 66 and 37% at ExxonMobil. Both companies face pending proposals next month.
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As You Sow is the nation’s leading shareholder advocacy nonprofit, with a 30-year track record promoting environmental and social corporate responsibility and advancing values-aligned investing. Its issue areas include climate change, ocean plastics, pesticides, racial justice, workplace diversity, and executive compensation. Click here for As You Sow’s shareholder resolution tracker.