Dow Inc: Report on Petrochemical Risks
WHEREAS: Investors are concerned about the financial, health, environmental, and reputational risks associated with operating and building new chemical plants and related infrastructure in Gulf Coast locations that are increasingly prone to catastrophic storms and flooding associated with climate change.
Petrochemical facilities like ethane crackers and polyethylene processing plants produce dangerous pollutants including benzene (a known carcinogen), Volatile Organic Compounds, and sulfur dioxide. These operations can become inundated and pose severe chemical release risks during extreme weather events. Flooding from recent storms like Harvey, Laura, and Delta caused Dow plant shutdowns and the release of unpermitted, unsafe levels of pollutants. Nearby residents reported respiratory and other health concerns following such releases.
Storms and the costs they bring our company are predicted to increase in frequency and intensity as global warming escalates. Houston alone saw three 500-year floods in the span of three years, and major hurricanes have caused significant disruption to our company’s operations—Hurricane Harvey reduced DowDupont’s 2017 third quarter earnings by 250 million dollars. Sea level rise poses particularly significant risks to Dow’s Louisiana activities, where land loss from rising seas is already occurring. Reports show that greenhouse gas emissions throughout the petrochemical and plastic supply chain contribute significantly to climate change, exacerbating the threat of physical climate risks.
Civil society groups have opposed the expansion of petrochemical facilities in their communities due to concerns regarding impacts to their health and livelihoods—impacts disproportionately felt by low income communities and communities of color. Local opposition threatens to jeopardize Dow’s social license to operate in the region. Historically, Dow has paid out millions in settlements with regulatory agencies for various clean air and water violations. As climate change intensifies flooding and storm strength, the potential for unpermitted chemical releases grows.
Despite these growing risks, Dow has accelerated its petrochemical activities in the Gulf Coast, investing heavily to expand in flood-prone areas.
Dow discloses that Gulf Coast storms have had and may continue to have significant impacts on its business and that it has engineered its susceptible facilities to withstand such events. The impacts to Dow’s operations from Harvey, however, indicate the company’s level of preparedness is insufficient. While the company expands its petrochemical assets, investors seek improved disclosure to understand whether Dow is adequately evaluating and mitigating public health risks associated with climate-related impacts and the dangerous chemicals it uses.
BE IT RESOLVED: Shareholders request that Dow Inc., with board oversight, publish a report, omitting proprietary information and prepared at reasonable cost, assessing the public health risks of expanding petrochemical operations and investments in areas increasingly prone to climate change-induced storms, flooding, and sea level rise.
SUPPORTING STATEMENT: Investors request the company assess, among other related issues at management and Board discretion: The adequacy of measures the company is employing to prevent public health impacts from associated chemical releases.
Resolution Details
Company: Dow Inc.
Lead Filers:
As You Sow
Year: 2021
Filing Date:
October 2020
Initiative(s): Petrochemical Risks
Status: Resolution Withdrawn, Agreement Reached