SUSTAINABILITY@DOW

COLLABORATING FORCHANGE

VINYL INSTITUTE MEETING

November 2019

THE NEW DOW: FOCUSED ON COLLABORATION

Ambition: Become the most innovative, customer-centric, inclusive and sustainable materials science company in the world

GOAL: VALUE GROWTH ANDBEST-IN-CLASS PERFORMANCE

RESPECT FOR PEOPLECORE VALUES INTEGRITY PROTECTING OUR PLANET

DOW PLASTICS ADDITIVES: AN OVERVIEW

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ManufacturingTech Center

LauterbourgLouisvilleCollegeville Shanghai

Singapore

Gebze

Countries served

68

Ship-to customers

~1000

% Sales from Innovation

Brand names Products Patents

100 patent families

30 filings in last 5 years

DPA Facts

PARALOID™SURECEL™ACRYLIGARD™ELVALOY™

30 %164

products

WE ARE FACED WITH NUMEROUS ENVIRONMENTAL, ECONOMIC AND SOCIAL CHALLENGES

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WHAT CAN WE DO ABOUTTHEM?

WHAT ARE WE DOINGABOUT THEM?

WHAT DO WE WANT OUR LEGACY TO BE?

Food Water Climate Change Nature Waste

1 in 9 people experiencing chronic hunger

40% world population impacted by water scarcity

9 of 10warmest years ever were recorded since 2005

15% total greenhouse gas emissions estimated from deforestation

18Bestimated pounds of plastic waste flows into oceans every year

We Will Succeed by Delivering Value to SocietySources: UN FAO, World Bank, NOAA, World Wildlife Fund, University of Georgia

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Lack of infrastructure to deal with the amount of waste our society produces

Adequate market demand for recycled products

Recycled PVC (US vs Europe)

CHALLENGES FACING THE PLASTICS INDUSTRY

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Billion lbs 2013 2016 2018CAGR % ('13-'16)

Recycled PVC volume 1.008 1.057 N.A. 1.6%

US domestic PVC resin consumption (1) 9.98 10.41 10.89 1.4%(1) American Chemistry Council(2) Tarnell, Krock et al (VI commissioned study)

0.980 1.060 1.1201.260

1.4101.630

2013 2014 2015 2016 2017 2018

+11%

Total volume of recycled PVC in US has been relatively flat (2013-2016), Billion lbs

Recycled PVC volume growth in Europe, (2013-2018), 25% recycle rate based on available to recycle PVC waste- VinylPlus 2019 report , Billion lbs

2025 SUSTAINABILITY GOALS- DEVELOPED IN PARALLEL WITH UN-SDGADVANCING THE WELL-BEING OF HUMANITY THROUGH SCIENCE, INNOVATION AND COLLABORATION

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Leading the Blueprint

Dow develops societal blueprints that integrate public policy, science and technology, and value chain innovation to facilitate the transition to a sustainable planet and society.

Delivering Breakthrough Innovations

Delivers breakthrough sustainable chemistry innovations that advance the well-being of humanity.

Advancing a Circular Economy

Dow advances a circular economy by delivering solutions to close the resource loops in key markets.

Valuing Nature

Dow applies a decision process that delivers business value and natural capital value through projects that are good for the company and better for ecosystems.

Safe Materials for a Sustainable Planet

We envision a future where every material we bring to market is sustainable for our people and our planet.

Engaging for Impact: Communities, Employees, Customers

Dow people worldwide directly apply their passion and expertise to advance the well being of people and the planet.

World-Leading Operations Performance

Dow maintains world-leading operations performance in natural resource efficiency, environment, health and safety.

OUR SUSTAINABILITY JOURNEY: EVOLVING AS THE WORLD EVOLVES

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Inside the fence line Dow + Customers Collaboration1995 2006 2016 2025

Transformed Dow’s Safety Culture

Saved $5B, 1.6B lbs waste and 183B lbs water 10K fewer injuries

2025 Sustainability GoalsDow’s Thought Leadership and Actions2015 Sustainability Goals

Product Solutions to World Challenges2005 EH&S Goals

Journey to EH&S ExcellenceDow’s Blueprint

Dow’s Handprint

Dow’s Footprint and EH&S Culture

Transformed Sustainability Mindset

Additional $1B savings$13B highly advantaged sales

New Company, Partnering to Transform the World

Positively impact 1B people $1B NPV nature

LEADING THE BLUEPRINT

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4,33 MM tonnesof CO2e

An equivalent measure: • 100,000 cars taken off the road permanently or• 1.3 million cars off the road per year

Lead in developing societal blueprints that integrate public policy solutions, science and technology, and value chain innovation to facilitate the transition to a sustainable planet and society.

• Founding member of non-profit formed by > 40 global firms across the plastics value chain

• Commits $1.0 B over five years to develop and scale solutions that manage plastic waste and promote post-use solutions of plastic

SUSTAINABLE ALTERNATIVES FOR MATERIALS OF CONCERN

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• Can coatings: protect food from the can and the can from the food

• Brand owners seeking alternatives to traditional BPA based epoxy coatings as consumer demands evolve.

• CANVERA™ Polyolefin Dispersions enables can producers to use a water-borne, spray-applied replacement for epoxy coating systems, thus avoiding BPA-NI and other materials of concern.

Sustainability measures* Life cycle impact*

CO2 emissions -27%

Acid rain -40%

Oxygen demand -47%

Water depletion -40%

* CANVERA ™ Lifecycle impact of raw materials, manufacturing, conversion, waste, end of life on the environment vs. BPA-NI epoxy can coatings

WORLD-LEADING OPERATIONS PERFORMANCE IN EH&S AND EFFICIENCY

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OUR 2019 ACTIONS• Implementing technology to eliminate life critical work• Delivering digital technology in Dow vehicles to ensure safe

driving• Prioritizing capital projects based on environmental &

financial value• Continuing the Healthy Culture improvement journey with a

focus on struggling sites

World-Leading Operations Performance in EH&S and Efficiency

OUR SUCCESSES• To prevent injuries, some of the riskiest jobs in our

operations are being replaced by robots and drones

• In 2018, we eliminated more than 1,000 confined space entries using robotics for tank inspections.

ADVANCING A CIRCULAR ECONOMY (OF PLASTICS)

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• Working with businesses and nonprofits we are helping to build and improve roads using recycled plastics

• Plastic roads in Indonesia, India, Thailand, Vietnam, Texas have diverted the equivalent of about 25 million flexible pouches from landfills

• Plastics roads are up to 30% stronger vs asphalt alone with better traction.

Dow advances a circular economy by delivering solutions to close the resource loops

OUR SUCCESSES

ADVANCING A CIRCULAR ECONOMY (OF POLYURETHANES-PU)

RENUVA™ Mattress Project• Recycle polyurethane foam from

end-of-life mattresses

• Building a new business eco-system model

• Collaboration across entire value chain (recycling companies, equipment and material manufacturers, PU foam makers, brand owners)

RENUVA™ Polyols • New, high-value recycled raw

materials created from the conversion of end-of-life mattresses

• Can be tailored for flexible or rigid foam applications

• Can be used as a starting point for new foam mattresses (up to 25% replacement)

RENUVA™ Circular Economy ProgramWith Redesign, Recycle, Reuse and Re-Manufacture as its core values, RENUVA helps support the transition of polyurethane-based products from a linear to a circular economy.

ENGAGING FOR IMPACT: COMMUNITIES, EMPLOYEES, CUSTOMERS

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OUR 2019 ACTIONS• Using our $1MM Business Impact Fund to help drive the

ambitions of the new Dow

• Building service work and a “passion with purpose” mindset among our employees with new signature programs

• Establishing a new volunteer strategy

Our people apply their passion and expertise to advance the well-being of people and the planet.

OUR SUCCESSES YTD-2019, our #PullingOurWeight cleanup campaign, we removed > 156,000 pounds of trash from beaches, waterways and green spaces while raising awareness about the benefits of a circular economy.

DELIVERING BREAKTHROUGH INNOVATIONS

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• As the global photovoltaic market (PV) grows, material selection can be critical to PV module manufacturers

• ENGAGE™ PV Polyolefin Elastomers help provide exceptional long-term performance, reliability and lower overall energy cost.

Dow delivers breakthrough sustainable chemistry innovations that advance the well-being of humanity.

OUR SUCCESSES

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Making the Shirts on Our Backs More Sustainable

• 1.3 trillion gallons of water is used each year to dye textiles, and 20% of the world’s industrial water pollution is from textile mills.

• ECOFAST™ Pure Sustainable Textile Treatment reduces-• Chemicals use (up to 90%) in dyeing cotton• Water and dye use (up to 50% each) • Room temperature dyeing baths reduces energy use

DELIVERING BREAKTHROUGH INNOVATIONS

Reuse/recycling of PVC waste material Higher recycled PVC content in window profiles WITH improved end-product

performance Upgrade performance of recycled Polycarbonate

Light-weighting of building and automotive products without compromising performance: Foamed rigid PVC, impact modifiers for engineering resins

Usage of renewable resins Boost impact strength of Polylactic acid (PLA)

Manufacturing of end-products in renewable energy (e.g., windmills, photovoltaics)

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DOW PLASTICS ADDITIVES- ENABLING SUSTAINABLE DEVELOPMENT

BY ASKING THE RIGHT QUESTIONS AND SEEKING THE RIGHT ANSWERS, SUSTAINABILITY ACTIONSBENEFITS DOW, OUR VALUE CHAIN PARTNERS AND CUSTOMERS, AND SOCIETY

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BENEFITS

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VALUING NATURE

OUR 2019 ACTIONS• Working on a Natural Lands Management Strategy to

drive nature-based solutions on Dow properties

• Deploying a Nature Scorecard to evaluate which projects are better for nature

• Updating our collaboration with The Nature Conservancy to reflect global priorities and the new Dow

We seek to incorporate nature into all of our business decisions.

OUR SUCCESSES At Elizabethtown, Kentucky, a 5-acre wetland was installed to holds the site’s fire water. The wetland helped solve downstream flood and total suspended solids issues that the site was experiencing, while providing a habitat for wildlife. Employees also are building houses for purple martins.