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Basic Materials

Dow Inc. (DOW)

Basic Materials $21.6B market cap

Data as of July 13, 2026

Environment
60.00
People
78.00
Leadership
72.00

Environment story

Dow has announced a 2050 carbon-neutral target (Scope 1+2+3) and a 2030 interim goal to reduce Scope 1&2 emissions by 5 million metric tons (15% vs. 2020 baseline). The company is investing in a net-zero ethylene cracker in Alberta, Canada, and has committed to commercializing 3 million metric tons of circular/renewable solutions by 2030. However, Scope 3 emissions remain undisclosed in the filings provided, representing a material gap. The 2050 target date exceeds the recommended 2035 threshold for maximum credibility. No evidence of carbon-offset-driven reductions vs. operational decarbonization was detected in the source materials. The company faces significant litigation and regulatory risk related to asbestos (Union Carbide legacy, $708M liability) and plastic waste concerns, though Dow is actively addressing circularity. Overall, the environmental score reflects commitment to decarbonization infrastructure but penalties for late net-zero timeline, undisclosed Scope 3, and legacy liabilities.

Criticisms on file

  • Union Carbide Asbestos Legacy Liability
    Source: DOW 10-K Item 1A Risk Factors; Note on Litigation. As of Dec 31, 2025, total asbestos-related liability $708 million, down from $791 million in 2024. Ongoing litigation in state courts.
  • Plastic Waste and Regulatory Risk
    Source: DOW 10-K Item 1A Risk Factors 'Plastic Waste' section. Company acknowledges low recycling rates, marine pollution, and emerging regulations including extended producer responsibility, recycled-content mandates, and potential international binding instrument to end plastic pollution. Risk of reduced demand for polyethylene products.
  • Goodwill Impairment Charges
    Source: DOW 10-K MD&A and Risk Factors. Q4 2025: Polyurethanes & Construction Chemicals goodwill impairment of $690 million; $303 million impairment on chlor-alkali/propylene oxide/brine assets in Latin America due to challenging economic conditions.
  • Environmental Remediation Obligations
    Source: DOW 10-K Item 1A Risk Factors 'Environmental Compliance'. Company acknowledges costs related to environmental remediation and restoration at past and current sites, with possibility that ultimate costs could significantly exceed current accruals.
  • Undisclosed Scope 3 Emissions
    Source: DOW 10-K and provided filings. Scope 3 emissions not quantified; critical omission for a chemical manufacturer where product-use and supply-chain emissions likely represent >70% of footprint per GHG Protocol standards.

Disclosed initiatives

  • Net-Zero Alberta Ethylene Complex
    World's first net-zero Scope 1&2 CO2e integrated ethylene cracker and derivatives facility in Alberta, Canada. Approved by Board November 2023. Expected to deliver 2 million metric tons of organic growth in high-end markets while decarbonizing 20% of Dow's global ethylene capacity.
    Operational emissions reduction; estimated 20% decarbonization of ethylene capacity.
  • Circular Feedstock and Recycling Partnerships
    Partnerships with Mura Technology for advanced recycling; investment in Xycle (first commercial plant Rotterdam, operational end-2026); collaboration on RENUVA mattress recycling ecosystem; SPECFLEX CIR polyol for circular mobility.
    Target: 3 million metric tons of circular/renewable solutions by 2030.
  • Decarbia Low-Carbon Product Portfolio
    Commercialized propylene glycol and CAV low-carbon offerings at scale; 40-90% decarbonization potential depending on product grades.
    Supports customer Scope 3 emission reductions.
  • Water Stewardship and Biodiversity
    Top water-dependent sites to have stewardship plans by 2030; 10 sites water-resilient by 2030; partnership with Ducks Unlimited to conserve 50,000 acres by 2050.
    Water resilience and ecosystem protection.
  • Strategic Asset Optimization
    Shutdown of ethylene cracker in Böhlen, Germany by end-2027; shutdown of CAV assets in Schkopau, Germany by end-2027; shutdown of siloxanes operations in Barry, UK by mid-2026.
    Reduces higher-cost, energy-intensive operations; improves regional carbon intensity.

Social story

Dow reports strong workplace culture achievements (Great Place to Work recognition for 3 consecutive years, #1 Manufacturing & Production ranking 2024–2025, 100 Best Companies 6 consecutive years). Safety metrics are strong: 2025 OSHA Total Recordable Injury Rate of 0.20 per 200,000 hours. The company has formal DEI infrastructure: Chief Inclusion Officer, 10 ERGs with 61% workforce participation, 20+ development programs, and >90% director-level job posting transparency. Pay equity studies conducted for >20 years; results disclosed. However, CEO-to-median-worker pay ratio and specific diversity percentages are not fully disclosed in provided filings, preventing precise calculation. No documented union-suppression activities or major strikes within 24 months detected. Supply-chain labor practices not comprehensively audited in provided filings. Overall score reflects strong governance of employee experience and safety culture, but opacity on pay ratios and supply-chain labor audits prevents higher rating.

Criticisms on file

  • Limited Transparency on CEO-to-Median-Worker Pay Ratio
    Source: DOW Proxy Statement and 10-K. While pay equity studies are disclosed, CEO-to-median-worker ratio and specific pay ratio multiples not explicitly stated in provided excerpts. SEC-mandated ratio disclosure expected in proxy but not visible in provided text.
  • Supply-Chain Labor Audits Not Comprehensively Documented
    Source: DOW 10-K and Proxy. No detailed supply-chain labor practices audits, conflict minerals policy, or modern slavery statement found in provided filings. Supply-chain ethics mentioned briefly in context of risk factors but not substantively audited.
  • Workforce Composition Data Not Fully Disclosed
    Source: DOW 10-K. While company states it conducts pay disparity studies and references EEO-1 disclosure and INtersections Report, specific workforce representation percentages (women, URG minorities, leadership composition) not extracted from provided document excerpts.

Disclosed initiatives

  • Workplace Culture & Recognition
    Great Place to Work World's Best Workplaces (3 consecutive years); 100 Best Companies to Work For (6 consecutive years); #1 Best Workplaces in Manufacturing & Production (2 consecutive years, 5 total).
    Third-party validation of inclusive, thriving workplace.
  • Safety Excellence
    2025 OSHA Total Recordable Injury & Illness Rate: 0.20 per 200,000 work hours (global employees & contractors). Comprehensive integrated operating discipline management system; robust near-miss tracking; digital dashboards visible to all locations; on-site occupational health clinics.
    Industry-leading safety culture; continuous improvement in hazard prevention.
  • Diversity, Equity & Inclusion Infrastructure
    Chief Inclusion Officer and Office of Inclusion; 10 ERGs with 61% workforce participation (2025) and 96% of people leaders participating; President's Inclusion Council, Senior Leaders' Inclusion Council, Joint Inclusion Council. Paid time off for ERG activities and volunteerism.
    Systemic DEI governance; high employee engagement.
  • Pay Equity & Transparency
    Global pay disparity studies conducted >20 years; annual assessments for gender and U.S. ethnic minority/non-minority equity; results publicly disclosed in INtersections Report. Active engagement with external pay equity partner for best-practice development.
    Documented fair compensation; accountability to pay parity.
  • Employee Development & Learning
    20+ development programs globally; skills framework aligned to enterprise competencies; >90% director-level job posting transparency; on-the-job training, digital learning, leadership development.
    Career mobility, skill advancement, succession planning.
  • Total Rewards & Well-Being
    Holistic well-being strategy across four dimensions: physical, mental, community, financial. Market-competitive compensation, health benefits, pension/retirement plans. Geography-specific adaptation for local standards.
    Employee retention, holistic health support, global competitiveness.
  • Employee Engagement Surveys
    Annual global employee opinion survey (64% response rate in 2025) covering culture, leadership, work environment, satisfaction. Feedback drives action plans.
    Voice and accountability; data-driven culture improvement.

Governance story

Dow demonstrates robust governance infrastructure: Board Committees (Audit, Corporate Governance, Compensation & Leadership Development, EHS&T) with clearly defined charters; stockholder engagement covering >70% of institutional shares; strong risk management and compliance culture reflected in extensive disclosures. However, board independence percentage not explicitly stated in provided excerpts. No dual-class share structure detected; single voting class indicated. Lobbying expenditures and PAC contributions not quantified in provided filings. No active antitrust, consumer-safety, or financial-fraud proceedings disclosed, though environmental/product-liability litigation (Union Carbide asbestos, plastic waste) is ongoing. The company has not sued shareholder groups to block climate proposals (no greenwashing red flag triggered). Overall, governance score reflects transparent committee structure, stakeholder engagement, and risk oversight, but incomplete disclosure of board independence % and lobbying spend prevents higher rating.

Criticisms on file

  • Board Independence Percentage Not Explicitly Disclosed
    Source: DOW Proxy Statement. Proxy indicates Board comprises independent Directors and describes independence criteria, but specific percentage (target: >80%) not stated in provided excerpts.
  • Lobbying Expenditures and PAC Contributions Not Quantified
    Source: DOW 10-K and Proxy. Company makes references to 'policy engagement' and 'public policy,' but specific annual lobbying spend ($M) and PAC contribution amounts not disclosed in provided materials. Potential misalignment with climate regulation not documented.
  • Goodwill Impairment and Asset Write-Downs in Q4 2025
    Source: DOW 10-K MD&A. $690M goodwill impairment (Polyurethanes & Construction Chemicals); $303M asset impairment (Latin America operations). Reflects challenging economic conditions and potential overvaluation in prior periods, raising questions on prior-year governance and valuation controls.
  • Legacy Union Carbide Asbestos Litigation Ongoing
    Source: DOW 10-K Item 1A Risk Factors; Litigation section. Union Carbide asbestos liability $708M (vs. $791M prior year). Ongoing litigation in state courts spanning decades. While declining, represents material contingent liability and reputational risk.
  • Plastic Waste and Product Liability Regulatory Risk
    Source: DOW 10-K Item 1A Risk Factors 'Plastic Waste' section. Increasing regulations, extended producer responsibility, recycled-content mandates, and international negotiations on plastic pollution create ongoing litigation and regulatory compliance risk. Company is world's largest plastics producer; exposure is material.

Disclosed initiatives

  • Board Committee Governance
    Audit Committee: external reporting, internal controls, legal/regulatory compliance. Corporate Governance Committee: Board composition, governance best practices. Compensation & Leadership Development Committee: remuneration, culture, accountability. EHS&T Committee: environmental, health, safety, sustainability oversight. Each operates under written charter with clearly defined responsibilities.
    Distributed risk oversight; clear accountability lines.
  • Stockholder Engagement Program
    Outreach to institutional investors (>70% of shares), sell-side analysts, pension funds, proxy advisors, rating agencies. One-on-one and group meetings, quarterly earnings calls, industry conferences, written communications. Topics: strategy, sustainability, governance, compensation, financial updates.
    Two-way dialogue; incorporation of investor feedback into governance.
  • Risk Management & Enterprise Risk Oversight
    Board actively oversees strategy, risk management, and overall performance. Management leads cross-functional efforts assessing and managing risks/opportunities. Comprehensive disclosure of principal risks in 10-K Item 1A (climate, macroeconomic, legal/regulatory, operational/strategic, cybersecurity, etc.).
    Proactive identification and mitigation of material risks.
  • Executive Compensation Accountability
    Compensation structure tied to financial performance and Ambition Metric achievement. Detailed compensation tables and narratives disclosed in proxy. Alignment with shareholder interests through performance-based incentives.
    Executive accountability for strategic outcomes.
  • Corporate Governance Best Practices Disclosure
    Annual INtersections Report including sustainability, DEI, community impact. EEO-1 disclosure. Annual proxy statement with detailed governance, compensation, and strategic disclosures. Compliance with SEC reporting frameworks and evolving standards.
    Transparency and accountability to stakeholders.
  • Cybersecurity Governance
    Comprehensive cybersecurity program continuously reviewed and upgraded. Board and management oversight of cybersecurity risks. Detailed disclosure in 10-K Item 1C addressing threat assessment, third-party risks, and remediation.
    Resilience against cyber threats; stakeholder confidence.

These are Missionomics' own editorial scores — directional signals built from disclosed facts under a published method, not certifications or definitive ratings of Dow Inc.. Coverage and confidence vary by data point, and figures can lag real-world changes. Read the full Methodology for sourcing, scoring, and correction details — or open Dow Inc. in the app for interactive charts and portfolio building.

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