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    2015 SUSTAINABILITY REPORT


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    Table of Contents Introduction – Our Commitment .................................................................... 4 – Letter from the CEO – Applying Science to Make the World a Better Place ................................................................................................. 5 – Letter from the CSO – Our Sustainability Story: Moving Forward .. 6 – 2015 Sustainability Goals: A Successful Decade Long Vision..........7 • Ten Year Impact ............................................................................................... 9 • 2015 Year in Highlights...............................................................................12 – 2025 Sustainability Goals: Redefining the Role of Business in Society..............................................................................................................14 Who we are – Strategy & Profile ...................................................................16 – Company’s Profile ............................................................................................ 17 – Countries of Operation ...................................................................................18 – Economic Value.................................................................................................19 – The Culmination of this Transformational Journey ..............................19 – Drivers, Risks and Opportunities............................................................... 20 Why we do it – Global Challenges ................................................................25 – The Importance of Chemistry ..................................................................... 26 – United Nation’s (UN) Sustainable Development Goals Alignment . 29 – Materiality Process ......................................................................................... 30 What we do – Our Products and Solutions ...............................................33 – Chemistry in Everyday Life ...........................................................................34 – Markets served and products by Business ............................................35 – Responsible Chemistry ................................................................................. 38 How we do it – Our People and Operations .............................................42 – People.................................................................................................................. 43 • Employee Indicators .....................................................................................45 • Enhancing Communities and Engaging Employees for Impact... 50 – Operations ..........................................................................................................55 • Feedstocks......................................................................................................55 • Sustainable Supply Chain .......................................................................... 56 • Transportation Stewardship...................................................................... 60 • Leaks, Breaks and Spills .............................................................................62 • Energy and Climate Change ..................................................................... 63 • Water ..................................................................................................................73 • Waste................................................................................................................. 76 • Biodiversity...................................................................................................... 78 Awards and Recognition in 2015 .................................................................... 80 Additional Material: Covering the Remaining G4 Aspects ....................85 GRI G4 Index .................................................................................................... 134 2 | The Dow Chemical Company


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    2015 Sustainability Report For the 13th year, The Dow Chemical Company report follows the Global Reporting Initiative (GRI). This document follows the GRI G4 framework, making information available on a range of Environmental, Social, and Economic topics. This document also serves as Dow’s UN Global Compact Communication on Progress for 2015. Other Company reporting that may be of interest to readers is available on www.dow.com as follows: • 2015 Dow Annual Report under Investors, Financial Information • Code of Business Conduct under Investors, Corporate Governance • Dow’s Annual Report on Form 10-K for the fiscal year ended December 31, 2015 (Dow 2015 10-K) under Investors, Financial Information, SEC Filings • 2016 Proxy Statement under Investors, Financial Information • Dow’s Global Citizenship website • Sustainability Updates found under the Company, Sustainability, Reporting Center Dow attains an externally verified comprehensive application level Dow is fully committed to transparency and accountability in achieving its Sustainability Goals. Transparent, in depth reporting assures that the public, as well as the entire Dow enterprise, is aware of the Company’s goals and priorities. This is one of the reasons this report has been prepared in accordance with the Global Reporting Initiative (GRI) G4 Sustainability Reporting Guidelines. Dow attains externally verified reporting ‘in accordance’ with comprehensive option using the GRI G4 Guidelines which means that this report covers all the General Standard Disclosures of the G4 Sustainability Reporting Guidelines and all the Sustainability Aspects we have identified as material to the Company. We value your interest in our report and welcome questions, comments and suggestions. You can contact Erica Ocampo regarding the report or its content: Erica Ocampo eocampo@dow.com 1- 989-638-2138 Dow Sustainability Reporting GRI G4-31 dow.com/sustainability 3


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    • Letter from the CEO – Applying Science to Make the World a Better Place Introduction • Letter from the CSO – Our Sustainability Story: Moving Forward • 2015 Sustainability Goals: A Successful Our Commitment Decade Long Vision – Ten Year Impact – 2015 Year in Highlights • 2025 Sustainability Goals: Redefining the Role of Business in Society 4 | The Dow Chemical Company


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    2015 Sustainability Report Applying Science to Make the World a Better Place Sustainability is an integral part of who we are as a Company and how we do business. It’s not just the products we create; it’s the problems we help solve. We are at the forefront of innovation, technology and science, which puts us in a unique position to apply our science to help solve the problems facing the planet today, including energy, climate change, water, food, housing and health — all through the power of innovation. Dow is now more than two decades into our sustainability journey, and we continue to raise the bar not just for ourselves, but also for our industry and the global business community. We have reduced the “footprint” of our operations; we have focused on the “handprint” of our products — that is, their impact on global sustainability; and we have courageously collaborated with others, from our work on natural capital with The Nature Conservancy to the 45,000 homes we have built with Habitat for Humanity. Last year, we successfully closed out our 2015 Sustainability Goals and renewed our commitment to sustainability with the launch of our 2025 Sustainability Goals — our third set of 10-year goals. In this report, you will discover our progress so far within our own operations and through our innovative solutions, and Dow’s renewed commitment to the 10 principles of the United Nations Global Compact. You will also see how we will redefine the role of business in society by using science and technology to drive sustainability excellence and lead a “blueprint” for a sustainable planet and society. Even with two historic transactions underway, as we welcome Dow Corning fully to the Dow family, and merge with DuPont, both of which will revolutionize our industry, we will remain solidly focused on applying the sciences to make the world a better place. We will deliver against our 2025 Sustainability Goals and continue to grow value through innovation. We will set an even higher bar for social and environmental progress by pursuing game-changing collaborations and engaging in significant dialogues across the public and private sectors. As leaders in chemistry and innovation, we are privileged to have the opportunity to influence the future of the planet. Advancing the well-being of humanity is not just our vision for sustainability; it is our chosen path for success. We look forward to a world in 2025 where Dow has proven to be a force for positive change. Andrew N. Liveris Chairman and Chief Executive Officer The Dow Chemical Company GRI G4-1 5


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    Our Sustainability Story: Moving Forward From footprint, to handprint, to blueprint we keep moving forward in our sustainability evolution as we start on a new exciting chapter in our story. In 1995 we released our first set of 10 year goals focused on the reduction of our ‘Footprint’, our 2005 Sustainability Goals. These goals created a culture of safety and operational efficiency that continues today. In 2006, we set the bar even higher with the introduction of a more ambitious, next-generation set of goals which focused on our ‘Handprint’, our 2015 Sustainability Goals. These goals focused on expanding our efforts into products and solutions that helped our customers and the world to save energy, grow better food, and create clean water supplies without losing sight of our footprint. In 2015, we launched our 2025 Sustainability Goals, where we assume a leadership role in developing a sustainability blueprint for society and the planet by addressing a large picture of sustainable development. These goals challenge Dow to be a constructive partner in helping bring chemistry, public policy innovation, and value chain innovation to solve pointed sustainability challenges. And with these goals, we seek to redefine the role of business in society. In September 2015, the United Nations (UN) announced its Sustainable Development Goals (SDGs) for the next 15 years. As we accomplish our 2025 Sustainability Goals, we will make a significant contribution toward the UN SDGs vision of global sustainable development. Over the next decade, we will continue to reduce our own operational “footprint,” deliver ever-increasing value to customers and society through our “handprint” of products and solutions, and develop and deliver a “blueprint” for a sustainable planet and society. Thank you for following our sustainability story. We have come a long way, but many chapters are yet unwritten… chapters that will likely be of crucial importance to our shared future. We look forward to writing them together with you. Sincerely, Neil C. Hawkins Corporate Vice President, Chief Sustainability Officer The Dow Chemical Company 6 | The Dow Chemical Company


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    2015 Sustainability Report 2015 Sustainability Goals: A Successful Decade-Long Vision Our approach to sustainability is to set clear and ambitious goals, measure rigorously and report regularly. In 1995, we established our first set of 10-year goals to improve the Company’s environmental, health and safety (EH&S) performance. We were recognized for several achievements stemming from those goals, including the number of lives saved and injuries prevented, as well as the amount of waste eliminated. In 2006, we decided to go beyond the company’s fence lines to include the value of sustainable solutions provided to customers that allow us to have a larger positive impact on the world. These 2015 Sustainability Goals expanded beyond EH&S to include strengthening community relationships, improving product stewardship, innovating to solve global challenges, and reducing the Company’s global footprint. These goals represent our journey for the past 10 years. During that time, we overcame many challenges and learned better ways to do things that helped us become what we are today: a leader in sustainability with established best practices, a continuous improvement process and a clear vision of our path forward. Our third generation sustainability goals, Dow’s 2025 Sustainability Goals, are our next adventure. Sustainability as a Value Driver Integrating the 2015 Sustainability Goals into our market-driven strategy and corporate processes contributed significantly to the Company’s top- and bottom-line growth, as well as to society. Contributing to Top-line Growth As part of our 2015 Sustainable Chemistry goal, we developed the Sustainable Chemistry Index (SCI). SCI is a metric used to assess the relative sustainability performance of our products based on their sustainability attributes. In 2013, we reached our 2015 Sustainable Chemistry target of 10 percent of sales from products highly advantaged by sustainable chemistry, marking a significant improvement from the baseline of 1.7 percent in 2007. And in 2015, we achieved 25 percent of our sales from highly advantaged products! This accomplishment reflects the shift in our product portfolio toward products that deliver value to society by addressing sustainability challenges such as energy efficiency, food production, and water scarcity. The increase in SCI performance during the 2015 goal timeframe reflects enhanced sustainability awareness within the Dow culture. This awareness has enabled Dow employees to better understand how to integrate sustainability into their roles, from informing business strategies to developing and communicating solutions that capture sustainability opportunities. Together, highly advantaged sales by Sustainable Chemistry and sales from Breakthroughs to World Challenges account for more than $12.4 billion of Dow’s revenue, and these sales continue to grow significantly faster than the chemical industry average. 7


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    Contributing to Bottom-line Growth The purpose of the Product Safety Leadership goal established in We continue to build value through a disciplined focus on 2006 was to further differentiate Dow as a product stewardship operational excellence as part of our sustainability priorities. leader in our industry and increase public confidence in our Collectively, these efforts have a positive impact on Dow’s products. Dow was the first chemical company to make non- bottom-line growth. Our focus on EH&S as represented on our technical language summaries of our product safety assessments vision “Drive to Zero” – zero accidents, zero injuries and zero (PSAs) accessible to the public. The assessments cover topics such excuses – is embraced by leadership and reflected by our people as basic hazards, use, risk and risk management. As of today, in what is today a safety culture. Built upon the success of the 99 percent of Dow’s annual revenue and all of our High-Priority 2005 Sustainability Goals, the Local Protection of Human Health chemicals are covered by PSAs, which are accessible to the public & the Environment goal has achieved on average a 75 percent at www.dowproductsafety.com. improvement of key indicators for EH&S operating excellence since 2005. Strong community relations have been an essential element of Dow’s business practices since the founding of the Company Contributing to Society in 1897. Understanding the needs of each community where Unlocking the potential of people and science delivers many we have a presence and recognizing our role and impact as a benefits to society. Our Breakthroughs to World Challenges goal respected community partner is an ongoing and iterative process. is about improving global society’s ability to solve the challenges Our Contributing to Community Success goal identified ways of affordable and adequate food and water supply, housing, energy to raise the quality of life in the communities where Dow has and climate change, and improved personal health and safety. We a major presence. We gathered input and feedback from these exceeded this goal by achieving four breakthroughs: Omega-9 communities where Dow has a major presence. Then we created Oils, FILMTEC™ ECO Membrane Modules, BETAMATE™ Structural local Community Success Plans to prioritize environmental, social Adhesives and POLYOX™ Water-Soluble Polymers. and economic issues and drive the appropriate allocation of Dow resources – people, know-how, donations – to address those issues For more than 75 years, we have and support meaningful change. This work not only ensures 2015 Goal had a program to assure that that Dow is a good neighbor and partner, but also strategically Achieve at least three our products are safe for their positions our Company in areas where we seek to have a breakthroughs that will intended use. All products must future presence. significantly help solve be managed in a responsible way world challenges to minimize the potential for adverse effects on human life and the environment. Dow takes We achieved 4 breakthroughs this responsibility very seriously. That is why thousands of highly trained scientists and engineers work to assure that our products are developed, manufactured, stored, transported, used and recovered in a manner that shows high regard for human health, safety and the planet’s resources. 8 | The Dow Chemical Company


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    2015 Sustainability Report Evolution – Continuing the Integration of Sustainability into Corporate Strategy As Dow evolves as a company, sustainability increasingly becomes Our goals have resulted in significant, quantifiable improvements a catalyst for our success. Both Dow’s 2005 EH&S goals and 2015 in personal safety, environmental performance, and economic Sustainability Goals have produced significant financial and non- value creation – generating tens of billions of dollars in benefits financial benefits. These benefits are ongoing, as they represent for Dow’s top-line growth, bottom-line growth and global society changes in how we operate our plants, encourage new behaviors since 2005. As we strive to continuously set the standard for and identify new business opportunities. sustainability, we are ready for the next stage in our journey to redefine the role of business in society. Ten Year Impact Since 2006, Dow’s 2015 Sustainability Goals have served as our guide – directing effort, resources and new ways of thinking that have enabled our Company to address pressing global challenges, while realizing financial, business and operational benefits from our sustainability efforts. There were seven ambitious and measurable goals, and this is how we did: 2015 Goals Results Status Sustainable Chemistry Increase the percentage of sales to 10 % We achieved 25% of sales ($12.4Billion) from ✓ for products that are highly advantaged by products highly advantaged by sustainable sustainable chemistry chemistry Breakthroughs to Committed to achieve at least three We exceeded this goal by achieving four ✓ World Challenges breakthroughs that will significantly help solve breakthroughs: Omega-9 Oils, FILMTEC™ ECO world challenges in the areas of food, water, Membrane Modules, BETAMATE™ Structural health, energy and climate change Adhesives and POLYOX™ Water-Soluble Polymers Addressing Climate Change. Work to maintain all greenhouse gas emissions Since 2006, our GHG emissions have been ✓ below 2006 levels reduced 27% with a cumulative of 75 million metric tons of GHG emissions avoided from our operations. This is the equivalent of removing 16 million cars from the roads for one year Energy Efficiency and Aim to reduce our energy intensity 25% by We reduced our energy intensity by 1.2%, and Not met Conservation 2015, using our 2006 levels as a baseline we continue to work on energy efficiency and expanding our renewable energy use Product Safety Leadership We will publish product safety assessments By the end of 2015, we published 510 (PSAs) ✓ (PSAs) for all products by 2015 covering 99% of Dow’s annual revenue, with several PSAs in the final stages of review. Additionally, all of our 149 High-Priority Chemicals are now covered by a PSA Contributing to Achieve individual community acceptance In the 10 locations that were surveyed, average ✓ Community Success ratings at all Dow sites where the company has Community Acceptance Ratings increased by a major presence 25 percent Local Protection of Human Health Achieve on average 75% improvement of key Since 2005 we have achieved more than ✓ and the Environment indicators for EH&S operating excellence from 1,500 fewer injuries and illnesses, more than our 2005 baseline 11,000 fewer spills, and 400 fewer process safety incidents 9


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    DELIVERING SUSTAINABLE SOLUTIONS FOR SOCIETY Breakthroughs to World Challenges in the areas of water, food, health, energy and climate change DOW FILMTEC™ ECO Omega-9 Oils eliminated Reverse Osmosis Elements deliver 40% better purification more than 1.5 billion pounds of with 30% less energy trans and saturated fat from the than industry standard reverse osmosis North American diet since 2005 elements, resulting in an ecologic and economic win. Omega-9 Oils address an important societal need to improve the fat profile of popular foods and decrease instances of type 2 diabetes, cardiovascular and coronary disease. LIFEBUOY™ SOAP BETAMATE™ Structural Adhesives Featuring POLYOX™ Water-Soluble are an enabling technology for dissimilar material Polymers from Dow delivers a positive assembly, which enables improved vehicle safety impact on health and hygiene, and and durability while optimizing weight reduction. most importantly, helps save lives around the world Saved 23 Enables Lifebuoy™ Soap from Unilever to be million metric longer lasting, more affordable, and easier to lather. tons of CO2 emissions and 10 billion liters of gasoline since 1999. MAXIMIZING GROWTH FROM Tens of billions of dollars saved for our customers, consumers and society through innovations $12.4 billion in revenue 25 % increase in average Community Acceptance Ratings for all Dow sites surveyed since 2005 in 2015 from products highly advantaged by sustainable chemistry A record pace of Products covered by 510 Product Safety Assessments 99% 667 U.S. patents granted and patent-advantaged posted since 2005 account of Dow’s sales represent more than revenue for more than 24% of our revenue . 10 | The Dow Chemical Company


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    2015 Sustainability Report 472 364 while the 44 to 32 company grew 5.8 billion 1,500 400 11


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    2015 Highlights 2015 was a transformative year for Dow … a year of accomplishments that will define the future of Dow… a year that demonstrated the strength and resiliency of our enterprise and set the foundation for the Company’s future success. The year 2015 marks the closing of a successful decade-long vision and the beginning of a new chapter. The 2015 Sustainability goals became an integrated part of our market-driven strategy and our corporate processes which have saved resources and supported the Company’s actions to drive operational efficiency and growth. SUSTAINABILITY Received SEVEN 15th time 2015 R&D 100 AWARDS ACRYSOL™ RM-725 Rheology Modifier BETAMATE™ Structural adhesives Named to the Dow Jones DOW ENDURANCE™ HFDC-4202 EC Sustainabilty World Index Insulation Compound PacXpert™ Packaging Technology Joint Venture Polyethylene Stand-up Pouch Restructuring SOLDERON™ BP TS6000 Tri-Silver PURINZE™ Ultrafiltration Module Finalized transaction to sell its received special recognition in the ownership interest in MEGlobal to Green Technology category EQUATE Petrochemical Company K.S.C. Announced definitive agreement to restructure ownership of Dow Corning 21 DOW technologies were selected as finalists The greatest number of any company awarded this year Closed acquisition of Univation Technologies, LLC INVESTING IN U.S. Gulf Coast Projects GROWTH ENGINES PDH Start-Up: st Achieved successful start-up of polyethylene Freeport, Texas: World-scale propane production at largest-ever products dehydration (PDH) unit – largest chemical complex built in a on-purpose propylene facility of its kind single phase with capacity of 750 KTA Sadara Joint Venture 12 | The Dow Chemical Company


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    2015 Sustainability Report Three Dow Researchers Named Fellows of the Society of Plastics Engineers OPERATIONAL EXCELLENCE Dow was named 9 Consecutive Quarters of Manufacturer of the Year, Year-Over-Year Volume Growth large enterprise, at the 11th Annual Manufacturing Leadership Summit excluding acquisitions and divestitures Signed a definitive agreement with THIRTEEN DuPont to combine through a merger Consecutive Quarters of equals with the intent to subsequently Year-over-year growth of separate to create three leading, independent, operating Earnings Per Share and science-based companies operating EBITDA margin Successfully closed out our Dow was honored for the 11th 2015 Sustainability Goals and celebrated the consecutive year by the Human launch of our new 2025 Sustainability Goals Rights Campaign (HRC) for achieving a 100 percent rating on its corporate equality index = (CEI) – a global benchmarking Dow was recognized as a tool on corporate policies and practices related to lesbian, leader in climate change reporting and gay, bisexual and transgender disclosure by Climate Disclosure Project (LGBT) employees (CDP), earning the highest possible disclosure score of 100 percent. Dow was also selected to the S&P 500 Climate Disclosure Leadership Index (CDLI) in 2015, which recognizes only the top 10 percent of companies reporting for disclosure of high-quality carbon emissions and energy data 13


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    2025 Sustainability Goals: Redefining the Role of Business in Society In 2015 Dow announced a strategic set of commitments deliver $1 billion in cost savings or new cash flow for the Company designed to redefine the role of business in society. Dow’s 2025 by valuing nature in business decisions. Sustainability Goals use a global lens to magnify the Company’s impact around the world, driving unprecedented collaborations “At Dow, by combining the ‘Human Element’ with our passion to develop societal blueprints that will facilitate the transition for science – we constantly strive to deliver long-term value with to a sustainable planet and society. Through harnessing sustainable, global solutions,” said Andrew N. Liveris, Dow’s Dow’s innovation strengths, global reach, and dedicated chairman and chief executive officer. “Our 2025 Sustainability employee population, the Company has set bold and aggressive Goals will help redefine the role of business at its intersection sustainability targets designed to develop breakthrough product with society. They will be our guide as we work to improve the innovations, positively impact the lives of 1 billion people, and well-being of humanity with solutions that are good for business and good for the world.” Among Our Key Performance Indicators* 0 10 6X 100% Zero severe unplanned safety events impactful “blueprint” net positive impact on sustainable value chain and stakeholder support and process safety events collaborations development measures for safe use of chemical technology 20% 750 MW $1B 1B reduction in freshwater intake of its power demand from renewable in nature-enhancing projects people positively impacted by intensity and waste intensity sources by 2025 Dow employees •KPIs are not all-inclusive but are an overview. Dow’s 2025 Goals, the Company’s third set of sustainability-related Goals since 1995, build upon its previous decade-long commitments. Dow’s 2005 Environment, Health & Safety Goals resulted in $5 billion in safety, waste, water and energy savings after a $1 billion investment. Dow’s 2015 Sustainability Goals provided more sustainable products and solutions addressing global challenges in food, energy, sustainable water supplies and improved personal health. For more information, visit www.dow.com/sustainability/goals 14 | The Dow Chemical Company


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    2015 Sustainability Report Dow’s seven 2025 Sustainability Goals are as follows: Goal 1: Leading the Blueprint – Dow leads 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. To develop the blueprints, Dow will engage in 100 significant dialogues across the public and private sector and establish 10 new collaborations. The initial blueprints will be published year-end 2017 and will be updated throughout the goal time frame, considering world progress towards sustainability and emerging challenges. Goal 2: Delivering Breakthrough Innovations – Dow delivers breakthrough sustainable chemistry innovations that advance the well-being of humanity. By 2025, Dow’s product portfolio will have a six-fold net positive impact on sustainable development. Dow products will offset three times more carbon dioxide than they emit throughout their life cycle and save three times more energy than they use throughout their life cycle. Goal 3: Advancing a Circular Economy – By 2025, Dow will work with other industry leaders, non-profit organizations and governments to deliver six major projects that facilitate the world’s transition to a circular economy, where waste is designed into new products and services. Goal 4: Valuing Nature – Dow applies a business decision process that values nature, which will deliver business value and natural capital value through projects that are good for the Company and good for ecosystems. Dow will generate $1 billion by 2025 in the form of cost savings or new cash flow as measured by net present value, a measure of future cash flows discounted to the present day. Goal 5: Increasing Confidence in Chemical Technology – Dow increases confidence in the safe use of chemical technology through transparency, dialogue, unprecedented collaboration, research and the Company’s actions. By 2025, Dow will work with non-profit, businesses and government partners to develop new, cutting-edge predictive modeling capabilities and integrate them into 100 percent of our new product assessments. Goal 6: Engaging Employees for Impact – Dow people worldwide directly apply their passion and expertise to advance the well-being of people and the planet. By 2025, Dow employees worldwide will apply their talents to positively impact the lives of 1 billion people. Dow employees will give 600,000 hours to support students and teachers in science, technology, engineering and math (STEM) education. Dow volunteers will complete 700 sustainability projects around the world. Goal 7: World-Leading Operations Performance – Dow maintains world-leading operations performance in natural resource efficiency, environment, health and safety. By 2025, Dow will reduce its freshwater intake intensity at key water stressed sites and its waste intensity footprint by 20 percent. It will also obtain 750 megawatts of its power demand from renewable sources and strive to eliminate unplanned safety events. 15


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    Who we are – • Company’s profile • Countries of Operation Strategy & Profile • Economic Value • The Culmination of this Transformational Journey • Drivers, Risks, and Opportunities 16 | The Dow Chemical Company


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    2015 Sustainability Report Company’s Profile The Dow Chemical Company, with global headquarters in Dow combines the power of science and technology to Midland, Michigan, is a diversified, worldwide, manufacturer passionately innovate what is essential to human progress. and supplier of products, used primarily as raw materials in the We are driving innovations that extract value from materials, manufacture of customer products and services. polymers, chemicals and biological sciences to help address GRI G4-3, G4-5 many of the world’s most challenging problems such as the need for clean water, clean energy generation and conservation, and We are a publicly traded company with the total common increasing agricultural productivity. Dow’s integrated, market- stock outstanding at January 31, 2016 of 1,117,112,448 shares. driven, industry-leading portfolio of specialty chemicals, advanced GRI G4-7 Personnel count was 49,495 at December 31, 2015, materials, agrosciences and plastics businesses delivers a broad down from 53,216 at December 31, 2014. Headcount decreased in range of technology-based products and solutions to customers 2015 primarily due to the separation of employees as a result of in approximately 180 countries and in high-growth sectors such divestitures and the Company’s 2015 restructuring program. as packaging, electronics, water, coatings and agriculture. Net Sales – $48,778 million GRI G4-9 Dow conducts its worldwide operations through global businesses, Total Capitalization which are reported in five operating segments: Agricultural • Total Assets: $68,026 million Sciences, Consumer Solutions, Infrastructure Solutions, • Total Debt: $17,210 million Performance Materials & Chemicals and Performance Plastics. • Total Equity: $26,183 million GRI G4-8 2015 Sales by Geographic Region (dollars in millions) Latin America Asia Pacific EMEAI North America $6,783 $8,308 $15,291 $18,396 2015 Sales by Operating Segment (dollars in millions) Total Sales: $48,778 Agricultural Science s Infrastructure Solutions Performanc e Plastics $6,381 $7,394 Performanc e Materials $18,357 Consumer Solutions & Chemical s $4,379 $11,973 Corpor ate: $294 17


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    Countries of Operation GRI G4-6 In 2015: Annual Sales – $48,778 million Properties of Dow include facilities which, in the opinion of management, are suitable and adequate for the manufacture 49,500 $1.6 billion employees worldwide Investments in R&D and distribution of Dow’s products. During 2015, the Company’s production facilities and plants operated at 85 percent of capacity. Founded in >6,000 The Company’s major production sites, including consolidated product families 1897 variable interest entities, are as follows: Manufactured at 179 sites in 35 countries Location Agricultural Consumer Infrastructure Performance Performance Sciences Solutions Solutions Materials Plastics and Chemicals Bahia Blanca, Argentina • Candeias, Brazil • Canada: Fort Saskatchewan, Alberta • Joffre, Alberta • Germany: Boehlen • • • Leuna • Schkopau • • • • Stade • • • • • Terneuzen, The Netherlands • • • • Tarragona, Spain • • • Map Ta Phut, Thailand • • • United States: Louisville, Kentucky • Hahnville (St. Charles), Louisiana • • • Plaquemine, Louisiana • • • • Midland, Michigan • • • • • Deer Park, Texas • • Freeport, Texas • • • • Seadrift, Texas • • • • Texas City, Texas • • Including the major production sites, the Company has plants and holdings in the following geographic areas United States: 55 manufacturing locations in 22 states. Canada: 6 manufacturing locations in 3 provinces. Europe, Middle East, 51 manufacturing locations Africa and India: in 18 countries. Latin America: 28 manufacturing locations in 4 countries. Asia Pacific: 39 manufacturing locations in 11 countries. 18 | The Dow Chemical Company


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    2015 Sustainability Report Economic Value GRI G4-EC1 Economic value retained, millions USD 2015 2014 Taxes 2015, Dollars in Millions Revenues 48,778 58,167 (payments to governments) Operating Costs 32,804 42,289 Wages/Benefits 7,692 7,792 Payments to providers of capital 1,908 2,952 Payments to governments 2,165 1,403 Asia North EMEAI Latin Donations/Community investments 41 50 Pacific America $523 America $160 $1250 $233 Economic value retained 4,167 3,681 Corporate Taxation Dow’s commitment toward leadership, innovation, and action Economic Co-Operation and Development (OECD), and aligns in Sustainability includes our transparency on corporate with the arm’s length principle taxation. We operate in more than a hundred countries around • Dow’s tax staff has qualified tax professionals with the world. Dow aligns its tax policies, procedures, and prin- experience and education in taxation ciples consistently to ensure that it ethically complies with • There are strong internal controls and procedures in place to the laws in these countries. minimize risk in reporting, compliance, and other areas of tax application • Dow applies tax practices that comply with respective • Tax risks are considered relating to: changes in rates, countries’ tax laws and regulations legislation, repatriation of earnings, tax controversy, and • Dow does not implement structures for the sole purpose of other areas tax avoidance • Dow discloses expanded information on revenue, income • Dow acts in accordance with international guidelines in its before taxes and taxes in footnotes to its financial statements application of transfer pricing such as the Organization for The Culmination of this Transformation Journey During 2015, we made significant progress on our strategic chapter of our 119-year history by separating a substantial investments in Saudi Arabia and the U.S. Gulf Coast, and portion of the chlorine value chain – the chemistry upon completed a number of divestitures, approaching more than which Dow was founded. We also moved forward with plans $13.5 billion(*) in pre-tax value, exceeding our initial targets. to optimize the ownership of our joint venture portfolio. This includes the completion of the Dow Chlorine Products transaction in October, where we closed on a momentous (*) Assumes 37 percent tax rate on the Dow Chlorine Products transaction. DOW AND DUPONT MERGER OF EQUALS TO DELIVER LONG-TERM SHAREHOLDER VALUE Three industry leaders with focused investment profiles Agriculture Net Sales ~$16 B (1) Material Net Sales ~$46 B(1) Specialty Net Sales ~$12B (1) Cost Synergies ~$1.3B Science Adjusted Net Sales: ~$51B(2) Products Cost Synergies ~$0.3B Cost Synergies ~$1.5B ~$10B ~$6B ~$46B ~$5B ~$10B ~$2B Agriculture Agricultural Performance Performance Electronics & Consumer Sciences Plastics Materials Communications Solutions: Dow Electronic Performance Safety & Materials Materials & Protection Chemicals Nutrition & Infrastructure Health Solutions Industrial (1) Based on Dow and DuPont’s Net Sales as reported Consumer Solutions: Biosciences in each company's 2015 Form 10-K filing. Consumer Care (2) Adjusted Net Sales includes revenue attributable to Dow Corning Corporation's Silicones businesses in 2015. Dow Automotive Systems Dow Corning Silicones 19


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    We took measures to reduce our equity base in our Kuwaiti joint ventures, and announced strategic plans to restructure the ownership of Dow Corning Corporation’s silicones business, 2015 R&D Strengths and Achievements our 72-year joint venture with Corning. • ~6,800 researchers working at R&D sites worldwide In December of 2015, we announced the signing of a definitive agreement for an all-stock merger of equals with DuPont to • 667 U.S. patents granted create DowDuPont. This transaction marked a culmination • 917 priority patent applications filed of a series of actions strategically laid out in 2012 to fully transform our enterprise. • $11.7B or 24% on patent advantaged sales • At December 31, 2015, the Company owned 4,651 After the transaction close, DowDuPont intends to active U.S. patents and 19,541 active foreign patents subsequently spin into three new companies: a world-leading Agriculture company; a Material Science company where • Received seven 2015 R&D 100 Awards: 21 Dow 85 percent of revenue will be focused on three key end- technologies were selected as finalists – the greatest markets (packaging, transportation and infrastructure); and number of any company recognized this year a technology-driven, innovative Specialty Products company. GRI G4-13 Drivers, Risks, and Opportunities GRI G4-2 • Global integration advantage as significant investments Over the last decade, our entire industry has experienced on the U.S. Gulf Coast and in the Middle East ramp to tectonic shifts – requiring a response built on foresight, agility full production over the next 24 to 36 months. These and focused execution. Dow is ready to extend its long history investments in advantaged feedstocks are enabling us of success, and is positioned to do so by building on our to capitalize on global growth opportunities and drive foundational strengths and growth drivers: increased returns. In the Middle East, our Sadara joint venture enables a powerful position with access to high- • Industry-leading innovation engine reflected in this growth geographic regions such as Asia Pacific and year’s best-ever innovation EBITDA results and most- Africa for decades to come. In Texas and Louisiana, our awarded external innovation recognitions achieved. U.S. Gulf Coast investments build on our physical and Our ability to innovate in a volatile economy is essential molecular integration to maximize margins across to our growth and future success. To drive returns, we are our franchise including a new, on-purpose propylene prioritizing our investment in high-value markets such as production facility in Freeport, Texas, which commenced agriculture, electronics, automotive, energy and water. We operations in December 2015; and a new, world-scale also work closely with customers to develop differentiated, ethylene production facility in Freeport, Texas, with science-based solutions and to commercialize these start-up expected in the first half of 2017. technologies faster than our competitors. Record Pace of U.S. Patents Granted Patent-Advantaged Sales on the Rise (% of Dow’s revenue) 1010 925 936 930 917 912 24% 23% 23% 23% 22% 667 659 20% 635 567 411 301 313 205 2009 2010 2011 2012 2013 2014 2015 2010 2011 2012 2013 2014 2015 n Dow U.S. Patent Grants n Priority Patent Applications 20 | The Dow Chemical Company


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    2015 Sustainability Report Projects Delivered Near-Term Mid-Term Dow Louisiana TX Ethylene Freeport Dow Corning Productivity Sadara Ethane and USGC PDH Silicones Program Flexibility Derivatives Delivered $345MM in 2015 Successfully started First product delivered on Construction progressed Cost synergies of Ethane cracker with Target of additional > up in 4Q15 and plan to 65% $300MM captured within initial propane flexibility $300MM in 2016 ramping to full rates Multiple units starting in Increasing ethylene 24 mo. after close up to 30% $1B/yr run-rate by 2017 2016 (EO and PO capacity by 250 KTA Growth synergies of Several derivative plants derivatives) $100MM synced with start up of TX Ethylene • Value-expanding market focus through an accelerated – Raw Materials: Availability of purchased strategy, narrowing our industry participation and going feedstocks and energy, and the volatility of these deeper in targeted, higher value markets. As an example, costs, impact Dow’s operating costs and add we completed the highly complex separation of the Dow variability to earnings. Chlorine Products transaction ahead of schedule – while Purchased feedstock and energy costs account for realizing significant valuation and changing the portfolio a substantial portion of our total production costs and to enable higher return on capital for our owners. operating expenses. Feedstock and energy costs generally follow price trends in crude oil and natural Risk and Opportunities gas, which are sometimes volatile. While we use our We have an Executive Sustainability Team chartered by feedstock flexibility and financial and physical Andrew Liveris, Chairman and CEO, to work with Dow’s hedging programs to help mitigate feedstock cost business units, functions, and geographies. The team is increases, we are not always able to immediately raise chaired by the Chief Sustainability Officer, and it is composed selling prices. Ultimately, the ability to pass on of several senior executives serving as the Company’s underlying cost increases is dependent on market governance body for Environment, Health & Safety (EH&S), conditions. Conversely, when feedstock and energy Public Policy Issues, and Sustainability. This team provides costs decline, selling prices generally decline as well. direct linkage to the EH&S and Technology Committee of As a result, volatility in these costs could impact Dow’s Board of Directors to lead in oversight responsibilities Dow’s results of operations. for Dow’s performance in these critical areas. Dow has a number of investments in the U.S. Gulf Corporate-level identification and management of risk Coast to take advantage of increasing supplies of is systematically accomplished using an Enterprise Risk low-cost natural gas and natural gas liquids (“NGLs”) Management approach. Examples include the potential impact from shale gas. As a result of these and other of weather-related events, access to credit, effect of foreign investments, Dow’s exposure to purchased ethylene currency exchange rate movements and volatility in purchased and propylene is expected to decline, offset by feedstock and energy costs. Risk management results are increased exposure to ethane and propane feedstocks. regularly communicated to the Chief Financial Officer with Also, if our key suppliers of feedstocks and energy a formal annual review with the Board of Directors and the are unable to provide the raw materials required for Audit Committee. production, it could have a negative impact on Dow’s results of operations. – Global Economic Considerations: We operate in a global, competitive environment which gives – Chemical Safety: Increased concerns regarding rise to operating and market risk exposure. the safe use of chemicals in commerce and their We sell our broad range of products and services in potential impact on the environment as well as a competitive, global environment, and compete perceived impacts of plant biotechnology on health worldwide for sales on the basis of product quality, and the environment have resulted in more price, technology, and customer service. Increased restrictive regulations from local, state and federal levels of competition could result in lower prices or governments and could lead to new regulations. lower sales volume, which could have a negative impact on Dow’s results of operations. 21


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    Concerns regarding the safe use of chemicals in commerce and their potential impact on health and the environment and the perceived impacts of plant biotechnology on health and the environment reflect a growing trend in societal demands for increasing levels of product safety and environmental protection. These c oncerns could manifest themselves in stockholder proposals, preferred purchasing, delays or failures in obtaining or retaining regulatory approvals, delayed product launches, lack of market acceptance, continued pressure for more stringent regulatory intervention and litigation. These concerns could also influence public perceptions, the viability of Dow’s products, Dow’s reputation and the cost to comply with regulations. In addition, terrorist attacks and natural disasters have increased concerns about the security and safety of chemical production and distribution. These concerns could have a negative impact on Dow’s results of Dow specifically. Concerns have been raised that climate operations. Local, state and federal governments change may result in more frequent incidents of severe continue to propose new regulations related to the weather and the potential for rising sea levels. In the past, security of chemical plant locations and the major hurricanes have caused significant disruption in transportation of hazardous chemicals, which could our operations on the U.S. Gulf Coast, logistics across the result in higher operating costs. region, and the supply of certain raw materials, which had an adverse impact on volume and cost for some of – Climate Change GRI G4-EC2 Dow’s products. Due to our substantial presence on the Climate change matters for Dow are likely to be driven U.S. Gulf Coast, similar severe weather in the future could by changes in regulations, public policy and physical negatively affect our results on operations. Hurricanes climate parameters. Gustav and Ike, who hit the U.S. Gulf Coast in 2008, caused temporary outages for several of the Company’s Regulatory Matters: These include cap and trade Gulf Coast production facilities, resulting in $181 million schemes; increased greenhouse gas (“GHG”) limits; and in additional operating expenses. To mitigate risks taxes on GHG emissions, fuel and energy. The potential associated with severe weather, we have engineered the implications of each of these matters are all very similar, facilities to better withstand these events. Additionally including increased cost of purchased energy, additional these sites have specific Emergency Preparedness plans capital costs for installation or modification of GHG that detail actions to take in the event of severe weather. emitting equipment, and additional costs associated These measures have historically been in place and these directly with GHG emissions (such as cap and trade activities and associated costs are driven by normal systems or carbon taxes), which are primarily related operational preparedness. Dow continues to study the to energy use. Reducing Dow’s overall energy usage and long-term implications of changing climate parameters GHG emissions through new and unfolding projects will on water availability, plant siting issues, and impacts and decrease the potential impact of these regulatory matters. opportunities for products. We also have a dedicated commercial group to handle energy contracts and purchases, including managing While we may face risks associated with climate change, emissions trading. opportunities also arise. As highlighted by the Carbon Disclosure Project (CDP), despite having no federal Physical Climate Parameters: Many scientific academies regulatory price on carbon in the U.S., Dow is one of the throughout the world have concluded that it is very likely pioneer companies incorporating a carbon price into that human activities are contributing to global warming. its business planning and risk management strategies. At this point, it is difficult to predict and assess the Through our energy efficiency programs and focused GHG probability and opportunity of a global warming trend on management efforts, we have significantly reduced our 22 | The Dow Chemical Company


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    2015 Sustainability Report GHG emissions Rio 2016 footprint. Our In 2015, our annual absolute The challenge of tackling climate change is tremendous manufacturing energy use was 95 trillion and no company, government or organization can solve energy intensity, it alone. In addition to our role as the Official Chemistry measured in BTUs less than in 2005 Company of the Olympic Movement, Dow is also the BTU per pound Official Carbon Partner of Rio 2016 Organizing Committee, of product, has helping Rio to deliver low-carbon Games. improved more than 40 percent since 1990, saving the Dow has a legacy of innovation and leadership in sustain- Company over 6,100 trillion BTUs as of 2015 of which 2,900 ability, redefining the role of business in society by pushing trillion BTUs have been saved since 2005. In 2015, our the boundaries of our current capabilities and products to annual absolute energy use was 95 trillion BTUs less than cultivate a more sustainable society and planet. in 2005. Since 1990, Dow has prevented over 320 million metric tons of GHG emissions entering the atmosphere, We are bringing this vision to life through the innovative reducing the Company’s absolute emissions footprint by carbon mitigation program with Rio 2016 built upon more than 35 percent or the equivalent of 67 million cars three pillars: driven for a year. As part of our 2025 Sustainability Goals, • Fostering sustainable development Dow will maintain GHG emissions below 2006 levels on an through a tailor-made program and absolute basis for all GHGs. a commitment to mitigate 500,000 tons of CO2e related to the direct The widespread impact of climate change extends well carbon footprint of the Organizing beyond energy production. It creates huge markets Committee. for Dow’s products and solutions. Through our science • Recognizing the impact that other and technology capabilities, we are committed to activities associated with the Games bringing solutions to enable a sustainable energy future such as spectator travel and lodging by producing products that help others reduce GHG will have. While these emissions are beyond emissions. For example, compared to current best-in- Rio 2016’s direct control and influence, Rio 2016 and class water purification membranes, our Breakthrough Dow are collaborating to generate an additional to World Challenges product, FILMTEC™ ECO Membrane 1.5 million MT of CO2eq in climate benefits by 2026. Modules filter out 40 percent more salt from water, while • Leveraging the Rio 2016 Olympic Games to increase consuming 30 percent less energy than industry standard awareness on climate change, thereby inspiring RO elements. In the building and infrastructure sector, people to consider the impact on climate change Dow’s building insulation materials and air-sealing when making their daily decisions. products can save up to 20 percent on heating and cooling costs and significantly reduce GHG emissions. Through a comprehensive portfolio of solutions and our deep The Company’s STYROFOAM™ insulation is installed heritage and relationships in the region, we are working with in over 20 million buildings worldwide, saving over $10 customers in food packaging, agriculture, industrial processes billion in energy costs annually. DOWTHERM™ A heat and building & construction to increase awareness and adop- transfer fluids are used in 35 large, concentrating solar tion of energy efficient and low-carbon technologies. The portfo- power plants, with a total capacity of over 700 megawatts. lio is designed to impact key sectors in Brazil and Latin America These plants will provide enough electrical generation and will enable industries to do more with less, switch to capacity to meet the needs of over one million homes at a lower-carbon energy sources and conserve energy through savings of close to 4 million metric tons of carbon dioxide efficient solutions. These projects push for innovation, over- emissions per year. come real or perceived barriers and catalyze long term change in market practices, instead of simply being the result of normal operations. 23


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    The mitigation projects are: ®™ Marcas registradas de The Dow Chemical Company ou companhias afiliadas. Biomass-generated energy for industrial utilization: Fuel switch projects with greenhouse gas (GHG) GOLD MEDAL FOR A MORE • Precision Farming: reductions at two of Dow’s sites in SUSTAINABLE AGRICULTURE: more productivity and opmization of resources MORE PRODUCTIVITY AND LOWER and energy Brazil including sustainable biomass ENVIRONMENTAL IMPACT processing and reforestation along • Climate monitoring with cogeneration of steam and through weather stations installed in the property electricity. By generating steam with Sustainable Agriculture Project: implemented in partnership with eucalyptus and sugarcane bagasse, Dow international experts • Analysis of satellite is demonstrating that chemical sites Dow AgroSciences support and imagery and variability solutions mapping on the field can be powered by clean energy – an innovation that sets a new standard in sustainable manufacturing. • Productivity data processing to harvest maps Versatile packaging technologies for food, cosmetic, hygiene and cleaning products: working with film manufacturers in five countries (Brazil, Argentina, Guatemala, Mexico and Colombia) to accelerate the adoption of a proprietary Dow technology (Microfoaming) that enables an As of today, the total annual sales of products providing significant energy and GHG benefits exceed enhanced sustainability profile while $30 billion, which accounts for more than 60% of Dow’s revenue. Dow will continue to focus on offering the same protection and managing its energy and GHG emissions footprint and delivering solutions to help our customers conservation properties. manage theirs. Adoption of polyurethane-based insulation panels in the civil construction sector: This helps the farmers to use information technology on engaging with the entire construction value chain on the the decsion making process during seeding, growing and importance of integrating energy efficiency into their decision- harvesting phases, optimizing the use of inputs and making as essecitial way of reducing their environmental reducing emissions. impact and helping property owners lower their energy costs. To widen and deepen awareness of climate change and Recovery of degraded pastureland in Mato Grosso, related issues with consumers, we are also a premier cor- Brazil: partnering with a leading agriculture group (Roncador) porate partner of Rio 2016’s Transforma education program. to demonstrate weed control and seed solutions that enable Reaching more than six million students in Brazil, Dow soil to capture more carbon, thereby recovering pastureland is introducing science, technology, engineering and math and increasing productivity. The project offers educational and (STEM)-related content, including physics, chemistry, biol- consulting services to farms within the region, advising on ogy, and environmental lessons taught through the lens techniques and benefits of intensifying livestock production. of the Olympic Games to inspire and motivate future Dow and Roncador are also introducing farmers to a carbon generations of scientists across Brazil. tracking methodology to quantify emissions reductions, with a goal of restoring more than 20,000 hectares of pastureland. Our work with Rio 2016 is one of the new ways in which we are strengthening partnerships to achieve our goals and Precision Agriculture in Mato Grosso, Brazil: enabling help Rio 2016 deliver a long lasting positive legacy. access to world leading services in precision agronomy to provide variable rate technology and expertise to farmers. Together, we are designing the path to a more sustainable future for the Olympic Games and Latin America. 24 | The Dow Chemical Company


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    2015 Sustainability Report Why we do it – • The Importance of Chemistry • UN Sustainable Development Goals Alignment Global Challenges GRI G4-1 • Materiality Process 25


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    The Importance of Chemistry In a rapidly NEW DEMANDS changing ARISE: world… 50% water needs increase 35% of the world’s WATER by 2030 Only 2.5% population will live in RESOURCES of the world’s water water scarce regions is fresh water by 2020 30% is the estimated increase in energy consumptionfor the next 15 years. Every new shirt made, cell phone produced and house ENERGY built results in tangible energy spent which means more GHG released In 2030, the world’s population will reach 8.3 Billion 1 billion 70% more mouths to feed will be the total by 2025 while today, increase in food FOOD 30% of the world’s demand food is wasted (2000-2050) 40% is the GHG emissions reduction needed to limit GHG the average global temperature rise to 2°C and EMISSIONS avoid irreversible changes to ecosystems by 2030 26 | The Dow Chemical Company


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    2015 Sustainability Report Collaboration, WHAT THE CHEMICAL Innovation INDUSTRY CAN DO: and science are the solution Climate Change Food and Provide solutions in agriculture transportation and mobility  Develop and use renewable  Increase crop yields and clean energy sources Offer technologies for 95% of the world’s Find smarter ways to use energy healthier diets Develop solutions for pest Increase emissions control and weeds control in the field manufactured goods are created from chemistry Water Reduce water scarcity with new treatments Develop technologies to improve water availability, In the U.S., for every one water quality, cost and energy efficiency job created from the Turn wastewater into a valuable resource through business of advanced reclamation processes chemistry, Waste Provide solutions to prevent and reduce waste Collaborate to improve waste management 6 infrastructure Advance a circular economy jobs are created in other sectors Provide technologies to prevent food loss and food waste Consumer Goods Develop effective biotechnology that help treat the population’s evolving needs Increase the safety, durability and service life of products Offer technologies that help support an active lifestyle 27


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    With over 95 percent of manufactured products enabled productivity, building efficiency, development and by chemistry, world challenges will ultimately be solved commercialization of carbon mitigation, alternative by companies like Dow, who collaborate with customers, energy and many more solutions that improve lives while industries, governments, academia and civil society. Our protecting the planet. We are as committed to minimizing innovation engine is focused on water purification, crop our own footprint as we are to delivering technology that helps the rest of society do the same. Our commitment to sustainability is integral to our corporate vision, mission, and values – which continue to drive change that is good for the Mission: environment, good for people, and good for business. To passionately create innovation for our Taken together, Dow’s essential elements of mission, vision, values, and strategy describe why the company exists, who stakeholders at the intersection of chemistry, we are, what we intend to do, and how we intend to do it. biology and physics These essential elements provide insight, offer motivation, and point the way forward as we seek to grow and achieve our goals. Vision: The Diamond Standard, Dow’s Code of Business Conduct To be the most valuable and respected summarizes many of the ethical principles and policies created to deal with issues such as bribery, political science company in the world contributions, equal employment opportunity, and environment, health and safety. All of us at Dow, no matter Corporate Strategy: where we happen to live, are expected to apply these principles in the daily performance of our job responsibilities. Invest in a market-driven portfolio of In December 2010, a new Code of Conduct was approved by advantaged and technology-enabled Dow’s Board of Directors. The Code has been translated into businesses that create value for our 24 languages. A refreshed Code of Conduct will be issued in 2016. shareholders and customers More information about Ethics & Compliance at Dow can be found on our website. GRI G4-56 Values: Winning in today’s volatile, global marketplace requires • Integrity sound strategy and disciplined execution. Building on our • Respect for People strengths, we continue to accelerate our market-driven approach — going narrower and deeper into strategically • Protecting Our Planet aligned end-markets, increasing productivity across our integrated value chains and maximizing the value of our investments. Dow’s 2025 Sustainability Goals are about maximizing Economic, Environmental and Societal Value. From our operations, our products to redefining the role of business in society through thought leadership and actions. 28 | The Dow Chemical Company


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    2015 Sustainability Report Dow is redefining the role of business in society. Dow’s Aspiration: • Dow advances the well-being of humanity by helping lead the transition to a sustainable planet and society. • Dow maximizes economic, environmental and societal value. Dow’s Approach Footprint Handprint Blueprint World-leading Operations Performance Product Solutions to World Challenges Dow’s Thought, Leadership and Action Dow’s Solutions to Global Challenges Food Energy Water Climate Change Nature Social Issues United Nation’s (UN) Sustainable Development Goals Alignment We understand that capitalism can make a positive difference UN’s goals, ours are not merely business as usual. They will for all of the world’s 7 billion people. Our ambitious 2025 lead us to transform our company. By working together, at the Sustainability Goals address each of the UN SDGs and will intersections of business, government, and civil society, we incorporate the value of nature and society into all of our can leverage the best of what each of us has to offer – and help business decisions. Dow’s 2025 Sustainability Goals drew from create a better world. The table below shows how our goals align the UN Goals as they were developed concurrently and like the to the UN SDGs goals. Leading the Delivering Advancing Valuing Increasing Engaging World-Leading Blueprint Breakthrough a Circular Nature Confidence in Employees Operations Innovations Economy Chemical for Impact Performance Technology 1 • • • 2 • • 3 • • • • 4 • • 5 • • 6 • • 7 • • 8 • • 9 • • 10 • • • • 11 • • • 12 • • • 13 • • 14 • • • 15 • • • 16 • • 17 • 29


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    The top three SDGs to which Dow’s 2025 Goals align are: 3 GOOD HEALTH AND WELL-BEING 9 INDUSTRY, INNOVATION AND INFRASTRUCTURE 15 LIFE ON LAND redefine the role of business in society and advance progress on these goals. We are excited to stand with them, and we invite others to join us in developing a blueprint for global sustainable development. ❤ Together, we can work to redefine the role of business in society, help achieve the UN SDGs and drive transformative We recognize that we are not alone in supporting the UN change. As we collaborate together, we can leverage the best of SDGs, and we applaud other companies that are helping what each of us has to offer – and help create a better world. Materiality Process GRI G4-18, G4-19 The principle of Materiality as defined under the GRI the material topics that govern this report. However, 2015 Reporting Guidelines is used in this report to cover the marks a pivotal moment in our sustainability journey as we Aspects that reflect the organization’s significant economic, announce our new set of 10 year goals. The 2025 Sustainability environmental and social impacts that substantially influence goals will be reflected on next year’s report key performance the assessments and decisions of stakeholders. indicators as our new material aspects. Defining our material aspects and boundaries is a continuous When defining a new material aspect, we see it as a building process. The results are reflected in our established 2015 step towards expanding our reach while we continue to work sustainability goals as well as the introduction of the new on the foundation and culture created, and the successes generation targets which are summarized in our 2025 achieved from previous Sustainability Goals. sustainability goals. This report reflects 2015 performance and during this period the 2015 sustainability goals represented 2025 Sustainability Goals Dow’s Thought Leadership and Actions 2015 Sustainability Goals Dow’s Blueprint Product Solutions to World Challenges Changes in technology, public policy, and the value chain that lead human society toward sustainability. 2005 EH&S Goals Dow’s Handprint Journey to EH&S Excellence Products and services that help customers meet their challenges Dow’s Footprint and EH&S Culture World-leading operations and supply chain performance 1995 2006 2016 2025 30 | The Dow Chemical Company


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    2015 Sustainability Report The materiality process requires a recurrent evaluation. Broad Consultation The steps are captured in the periodic four step cycle of identification, prioritization, validation, and revision. ✓ Analysis of internal and industry standards, Identification A critical element in the development of the 2015 and public policy Sustainability Goals was a constant dialogue with a wide ✓ Interviews with specialists range of stakeholders on a wide range of topics which later became the key components of the goals. This process began ✓ More than 500 interviews in 2003, when we developed a first draft of the goals using a ✓ Customers, Community Advisory Panels “bottom-up” approach with a number of functional experts and resources within the company. We also sought guidance from ✓ SEAC members a number of external stakeholders who shared a common view ✓ Employee focus groups of the overall sustainable development agenda, as well as their expertise in the specific areas under consideration ✓ Senior leadership for emphasis. One of the external stakeholders was the Sustainability communities. Key customers, consumer-facing companies, and External Advisory Council (SEAC), who since 1992 has Community Advisory Panels (CAPs) were also interviewed. been a key contributor to Dow’s outside-in perspective on More than 500 interviews were conducted to understand environment, health and safety, and sustainability issues for and prioritize environmental, social and economic needs in the company. The SEAC played a critical role in developing our the communities in which Dow has significant operations. 2015 Sustainability Goals. Individual conversations were conducted with SEAC members, senior leadership and employees in focus groups. Robust In addition, part of our stakeholder engagement is through our analytics and text mining were applied to analyze the annual Public Policy Issues Prioritization process. Through the extensive data collected through the interview process to Government Affairs, Public Policy, Regulatory Affairs and Issue assess the importance of issues to stakeholders and to the Management teams, the Dow’s Issue & Policy Management Company, which resulted in validation and prioritization of Council drives alignment of global issues and policy the topics. management strategies, setting priorities, and coordinating efforts and resources. Validation In 2014, as part of building Dow’s Next Generation In an increasingly changing world, continuous dialog Sustainability Goals, a series of scenario-based probabilistic with stakeholders is important. The periodic review of our analyses was performed to evaluate the direct/indirect value, identified materiality aspects enable us to also work on the intangible value, and externalities (those born by society) development of new metrics which provide the flexibility of Dow’s activities. The approach is a natural extension of a necessary to adjust to emerging issues and keep our progress method which was originally developed by Dow and several relevant. For example, in 2013 as part of building Dow’s other companies, as well as the American Institute of Chemical next-generation approach to sustainability, we conducted Engineers (AIChE). The analyses show that Dow’s sustainability an extensive stakeholder and corporate interview process activities will bring significant value to Dow from growing top to identify the issues that are the most important to our line and bottom line value by improving reputation, increasing stakeholders and most relevant for Dow. More than 300 human capital return, and improving resilience. The analyses one-on-one and small group interviews were conducted also show that many external stakeholders will receive mutual across the globe with stakeholders including individuals benefits from Dow’s sustainability activities, such as reducing from non-governmental organizations, academia, and environmental impacts, increasing ecosystem value, and governments as well as the environmental and sustainability improving life quality. 31


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    For example, as highlighted by the Carbon Disclosure Project single process, LCA takes a holistic view, examining impacts (CDP), despite having no federal regulatory price on carbon in over the complete “cradle to grave” life cycle. A life cycle the U.S., Dow is one of the pioneer companies incorporating a perspective helps us prioritize materials aspects according to carbon price into its business planning and risk management their impact given the sustainability context and the influence strategies. The price of carbon is included in the Company’s on stakeholder assessments and decisions. Dow applies life cycle internal calculations used for prioritizing capital projects. thinking across our entire product portfolio. Another example is the results of the collaboration between Dow and The Nature Conservancy (TNC) on valuing ecosystem Review services which are demonstrating that protecting nature After having prioritized the material issues, the process at can be both a global business strategy and a company Dow becomes not only a process to decide the content of Dow’s priority. By combining the resources and expertise of our two sustainability report, but also an important element for the organizations, we are integrating the value of nature into company to repetitively incorporate sustainability into its Dow’s business decision-making. strategy and leverage existing resources for sustainable value creation. Prioritization By extending the reach of our scope outside our operations, The results of the materiality assessment are mapped out we understand that each action taken to address the material below. The y-axis maps the relative importance of the topics to issues will have broader and long term impact upstream and our stakeholders; the x-axis shows the relevance of the topics downstream of the value chain, which often can be beyond from Dow’s internal perspective. Those topics with a high or the Company’s direct control. However, to truly understand very high importance to stakeholders or to the Company are the pros or cons of our decisions, we weigh them against other presented in the map. options and measure impact over time. Life Cycle Assessment (LCA) is an excellent methodology for examining the total This map shows our 2015 Sustainability Goals as well as our impact of a product or service. Rather than focusing on a 2025 Sustainability Goals to show our direction. Materiality Map World Leading Operations (including Climate Change) Local Protection of Human Valuing Nature Health & the Environment Energy Delivering Breakthrough Influence on Stockholder’s Decisions Product Safety Leadership Innovations Advancing a Circular Economy Increasing Confidence in Chemical Technology Sustainable Chemistry Community Success Leading the Blueprint Engaging Employees for Impact Climate Change Breakthroughs to World Challenges 2015 Goals 2025 Goals Impact on Dow 32 | The Dow Chemical Company


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    2015 Sustainability Report What we do – • Chemistry in Everyday Life • Markets Served and Products by Business Our Products and Solutions • Responsible Chemistry 33


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    Economic Impact Chemistry in everyday life The presence of our products and solutions in our daily lives AG R I C U LT U R E PHARMA ISOCLAST™ ENLIST™ Novel sap-feeding Advanced herbicide METHOCEL™ DC2 insecticide that protects and trait system to Enables pharma companies crop yields. Isoclast’s deliver exceptional to lower manufacturing costs unique mode of action weed control. by up to 60% while improving and low use rates fit tablet quality and shortening IPM programs. development time. E L EC T R O N I C S IKONIC™ Polishing Pads Chemical mechanical WAT E R planarization (CMP) polishing pads—helping to support FILMTEC™ the ever-evolving technical Reverse Osmosis elements requirements of the produce . high-quality, great- semiconductor market. tasting water with consistently high impurity rejection rates. I N F R AS T R U C T U R E STYROFOAM™ Enables an interior environment that is more comfortable for homeowners while saving up to 30% on heating and cooling costs. T R A N S P O RTAT I O N CO N S U M E R D U R A B L ES PAC K AG I N G BETAMATE™ INFUSE™ INTUNE™ ELITE™ Enables the use of lightweight materials Improved performance and lightest Breakthrough technology providing Liquid and semi-solid food packaging in vehicle construction and helps improve weight material for athletic shoe midsoles. previously unattainable performance levels providing toughness, resistance to flex durability by replacing welds and fasteners- in end-use consumer durables. cracking, and seal integrity. contributing to lighter, more fuel-efficient cars. 34 | The Dow Chemical Company


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    2015 Sustainability Report Markets served and products by Business GRI G4-8, G4-4 We serve the following industries: appliance; automotive; agricultural; building and construction; chemical processing; electronics; furniture; housewares; oil and gas; packaging; paints, coatings and adhesives; personal care; pharmaceutical; processed foods; pulp and paper; textile and carpet; utilities; and water treatment. We conduct worldwide operations through global businesses, which are reported in five operating segments: AGRICULTURAL SCIENCES CONSUMER SOLUTIONS Segments ✓ Seeds ✓ Crop Protection ✓ Consumer Care ✓ Dow Automotive Systems ✓ Dow Electronic Materials PERFORMANCE PLASTICS PERFORMANCE MATERIALS INFRASTRUCTURE ✓ Dow Elastomers AND CHEMICALS SOLUTIONS ✓ Dow Electrical and ✓ Chlor-Alkali and Vinyl ✓ Dow Building & Construction Telecommunications ✓ Industrial Solutions ✓ Dow Coating Materials ✓ Dow Packaging and ✓ Polyurethanes ✓ Energy & Water Solutions Specialty Plastics ✓ Performance Monomers ✓ Energy ✓ Hydrocarbons 2015 Sales by Operating Segment (dollars in millions) Total Sales: $48,778 Agricultural Science s Infrastructure Solutions Performanc e Plastics $6,381 $7,394 Performanc e Materials $18,357 Consumer Solutions & Chemical s $4,379 $11,973 Corpor ate: $294 35


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    Economic Impact The Agricultural Sciences is a global leader in providing The Infrastructure Solutions segment is comprised of an crop protection and seed/plant biotechnology products and industry-leading portfolio of businesses utilizing advanced technologies, urban pest management solutions and healthy technology to deliver products such as architectural and industrial oils. The business invents, develops, manufactures and markets coatings, construction material ingredients, building insulation, products for use in agricultural, industrial and commercial adhesives, microbial protection for the oil and gas industry, and pest management, and food service. Agricultural Sciences water technologies. Infrastructure Solutions consists of four global consists of two businesses – Crop Protection and Seeds. businesses: Dow Building & Construction, Dow Coating Materials, Energy & Water Solutions and Performance Monomers. Agricultural Sciences Infrastructure Solutions Seeds Crop Protection Performance Energy & Water Dow Coating Dow Building & Monomers Solutions Materials Construction North EMEAI Asia Latin North EMEAI Asia Latin America Pacific America America Pacific America The Consumer Solutions segment consists of three global The Performance Materials & Chemicals segment is businesses: Consumer Care, Dow Automotive Systems and comprised of three technology-driven, customer-centric global Dow Electronic Materials. These global businesses develop businesses that are advantaged through integration and driven and market customized materials using advanced technology by innovative technology and solutions: Chlor-Alkali and Vinyl, and unique chemistries for specialty applications – including Industrial Solutions and Polyurethanes. Products produced by semiconductors and organic light-emitting diodes, adhesives and this segment are back-integrated into feedstocks, supporting a foams used by the transportation industry, cellulosics and other low-cost manufacturing base and consistent, reliable supply. The polymers for innovative pharmaceutical formulations and food Performance Materials & Chemicals segment is positioned for solutions. These businesses serve the needs of market segments as growth through diverse markets and product offerings. diverse as: automotive; electronics and entertainment; food and pharmaceuticals; and, personal and home care products. Consumer Solutions Performance Materials & Chemicals Dow Electronic Materials Dow Automotive Systems Consumer Care Polyurethanes Industrial Solutions Chlor-Alkali and Vinyl North EMEAI Asia Latin North EMEAI Asia Latin America Pacific America America Pacific America 36 | The Dow Chemical Company


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    2015 Sustainability Report The Performance Plastics segment is the world’s leading plastics franchise, and is a market-oriented portfolio composed of five global businesses: Dow Elastomers, Dow Electrical and Performance Plastics Telecommunications, Dow Packaging and Specialty Plastics, Energy and Hydrocarbons. The segment is advantaged through its low cost position into key feedstocks and benefits from Dow’s R&D Dow Elastomers Dow Packaging and Energy expertise to deliver leading-edge technology that provides Hydrocarbons Dow Electrical and Specialty Plastics a competitive benefit to customers in key strategic markets. Telecomunications You can find more details of these operating segments and major products on our Dow 2015 10-K, PART I, Item 1. Business, and North EMEAI Asia Latin on the Products section of Dow’s website for further product America Pacific America overviews. 37


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    Economic Impact Responsible Chemistry In 1934, Dow established its first toxicology lab to enhance chemical safety testing capabilities decades ahead of government regulation. 2015 Goal Sustainable Chemistry Index (SCI) Increase the percentage We developed SCI as a tool to review the risks and opportunities sales were achieved due to of sales to 10% for associated with our products, to track the relative sustainability improved manufacturing products that are Highly performance of our global product portfolio, and to generate efficiency, including record Advantaged by sustainable product sustainability awareness and life cycle insights. SCI is EH&S performance, as well as chemistry comprised of a set of sustainability-related questions that span the from opportunities realized full cradle-to-grave product life cycle; addresses environmental, in agriculture, packaging, 25% of our products are social and economic benefits; and highlights sustainability communication, infrastructure, highly advantaged by opportunities and risks associated with Dow products. energy and personal care. These sustainable chemistry accomplishments reflect Dow’s In 2015, Dow delivered 25 percent ($12.4 billion) of sales from vision and strategy to drive value by solving world challenges products that are “highly advantaged” by sustainable chemistry. through scientific expertise and collaborating with customers to These results surpassed the 10 percent target more than two-fold, develop new solutions. and represent the realization of sustainable chemistry efforts under Dow’s 2015 Sustainable Chemistry goal. Applied annually to the entire Dow product portfolio since 2007, the SCI has enabled the generation of detailed sustainability Across the Company, highly advantaged products have brought insights and has provided a sustainability indicator that is sustainable chemistry to life – from improving manufacturing helping to position the Company for success over the long term. efficiency, to applications that enable energy efficiency, waste As we move forward with our 2025 Sustainability Goals, we have reduction and healthier food options. Most of the 2014 highly developed the next generation SCI tool to increase our scope and advantaged products remained highly advantaged for 2015, and drive sustainability deeper into each of our businesses. as a group their sales continue to grow. New highly advantaged Highly Advantaged Sales Dow Aggregate SCI Highly Advantaged Sales 35 2015 Goal 30 Highly Advantaged Sales Dow Aggregate SCI 25% 25% 25.7 24.4 25.0 22.4% 25 20% 20.4 20.1 21.2 21.4 21.8 22.0 20 15% 15 10% 10% 7.1% 10 4.8% 4.3% 5% 3.4% 5 1.7% 1.7% 0% 0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2007 2008 2009 2010 2011 2012 2013 2014 2015 38 | The Dow Chemical Company


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    2015 Sustainability Report Risk Characterization Process All products (100 percent) are assessed in an appropriate manner – depending upon or when triggered, in certain cases, EH&S profile, application, and exposure potential – for improvement opportunities by the passage of time. Improvement as part of Dow’s EH&S management approach at each stage of the product life cycle opportunities have been identified shown below. to clarify and strengthen these triggers. The frequency of which The human and environmental risks of all our products are characterized using risk reviews should be repeated is Dow’s risk characterization process/tool. The tool requires the assessment determined by the risk tier for the of hazard and exposure information to identify the risk tier. The risk tier will product/application identified with then determine the depth of the Product Stewardship program, including EH&S Dow’s product risk characterization information, Business Risk Review requirements and Distributor/Customer support. tool. In the process, and through use of supporting processes and Dow businesses utilize the Business Risk Review process to assess and minimize tools, health and safety impacts are possible adverse impacts on people, property and the environment as a result of assessed with respect to new product Dow’s business activity, including minimizing EH&S impacts associated with new development, manufacture of product, and existing operations, products, applications and services throughout the products’ transportation and distribution, use life cycle. of product at customer facilities, and recycle, reuse or disposal. Businesses are required to conduct risk reviews when material new information is received, including material changes in product uses, regulations, raw materials, etc., Risk mitigation measures are identified and implemented as a direct result of the Business Risk Review work process. Various Product Development Stewardship efforts such as distributor of product concept and customer qualifications and industry advocacy work are just a Disposal, resuse or recycling R&D couple examples of involvement in the storage, distribution, supply and use steps of product life. With increasing interest of the value chain in chemical identity and use, working with these stakeholders to support Use and Product Certification their users and address their questions service Lifecycle is a priority. Dow increased its engagement with the value chain in 2015 to provide a better opportunity for us to understand the uses and exposure potential of Dow products. Storage Further, this interaction provides a distribution Manufacturing and supply better opportunity to not only address the needs of our direct customers for Marketing and health and safety information but also promotion their customers. GRI G4-PR1 39


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    Economic Impact Product Labeling 1897 The following information is provided for all significant products where subject to The Dow Chemical national laws or the OECD Guidelines. Company founded Sourcing of components Content that might produce environmental impact 1934 The Dow Chemical Company’s Toxicology Safe use of product Disposal of product and impacts Laboratory established 1958 Our products must comply with all applicable hazard communication program Dow publishes first Material requirements, including appropriate labeling and Safety Data Sheets (SDSs), for all Safety Data Sheet (MSDS) countries in which we sell them. The content of the label and safety data sheet is specified in local laws and regulations and includes such information as product 1970 composition, safe use recommendations, and appropriate disposal practices. Dow publicly commits to While not all our products are governed by such regulations, our Global Product product stewardship role Stewardship Management Standard establishes that MSDSs will be generated for 100 percent of our products, which requires an assessment of health and environmental U.S. EPA established impact. The only exception is for certain articles where SDSs are not relevant. 1976 In addition, we provide direct customer support when additional handling or safety Toxic Substances information is requested; including information that supports the use of product in ControlAct enacted critical applications (food contact, pharmaceuticals, biocidal applications, etc.) and 1992 for customs purposes. For certain products, we require that customers be qualified Dow established Corporate through inspection of their operations and training of their employees before we Environmental support first shipment of product. We provide technical data (physical properties, Advisory Council performance in application) and recommendations for safe handling and storage and give specific guidance regarding product uses that we support. 2006 Dow announces 2015 We are in compliance with all applicable country chemical inventory control laws. Sustainability Goals including Currently, the most comprehensive requirement is the European Union REACH Product Safety Leadership Goal (Registration, Evaluation, Authorisation and Restriction of Chemicals) regulation, which does require information on the chemical properties, hazard , and uses of 2007 U.S. EPA launches ToxCast™ all products manufactured in or imported into the EU that have met the criteria for inclusion. We are in the midst of complying with the Korea REACH regulation and 2010 are preparing for other countries, e.g., Taiwan, who have passed into law similar Europe’s Registration, Evaluation, programs to the EU. Authorization and Restriction of Chemicals (REACH) is enacted We completed a significant project to ensure compliance with the Globally Harmonized System for Classification and Labeling, which has been implemented in 2011 many countries across the globe. The most significant was the U.S. implementation Dow establishes Predictive completed in June 2015 with classification of Mixtures required in the European Toxicology Center Union in 2015 as well. GRI G4-PR3 2015 PSAs covered 100% of Dow’s high priority chemicals, and 99% of all Dow’s products and revenue Dow announces 2025 Sustainability Goals, including Increaseing Confidence in Chemical Technology Goal 40 | The Dow Chemical Company


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    2015 Sustainability Report Product Safety Transparency and Communication and stewardship documents, Dow accepts the responsibility to be a good steward of the which are part of the product 2015 Goal environment on behalf of current and future generations. responsibility package Publish Product Safety Dow identifies the management of chemicals to protect human offered by Dow to strengthen Assessments for all health and the environment as a priority issue. To learn more relationships with communities products by 2015 about our Policy on Chemicals Management and our Product and customers. Dow is dedicated Stewardship program, visit the Market & Solutions section on to providing the public with All our high priority chemicals are covered by a www.dow.com. accurate information and PSA and we published 510 building trust as we use PSAs covering 99% of One initiative to facilitate the mitigation of the environmental technology to develop better Dow’s annual revenue impacts of products is through the 2015 Sustainability Goal of products, and this holistic Product Safety Leadership. A primary focus of this goal is to approach enables our customers develop Product Safety Assessments (PSAs) for all Dow products and the communities in which we do business to stay by 2015. informed about the Company’s products and the plants that produce them. At the end of 2015, we published 510 PSA covering 99 percent of Dow’s annual revenue, with the remaining PSAs completed in Other mitigation efforts include our Product Stewardship 2Q16. Additionally, all of Dow’s 149 High-Priority Chemicals are program and our commitment to implement the European now covered by a PSA. Since 2Q 2014, the number of PSAs and Union regulation for the Registration, Evaluation, High-Priority Chemicals has decreased due to divestitures and Authorization and Restriction of Chemicals, known as the discontinuation of several High-Priority Chemicals. REACH and similar regulatory management programs being implemented in other countries. GRI G4-EN27 PSAs are written for the lay public and cover topics such as basic hazards, exposure potential and risk management measures. They complement other product safety, handling Cumulative Product Safety Assessments Sales Covered by Assessments PSAs now cover products that Actual represent 99% of Company sales. 99% 600 100% 95% 510 Actual 86% 89% 500 78% Percentage of Sales 69% 400 48% 300 50% 33% 200 23% 100 7% 0% 0% 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 41


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    Economic Impact How we do it – • People • Operations Our People andOperations 42 | The Dow Chemical Company


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    2015 Sustainability Report People The Human Element at Work: Our solution is science. Our purpose is human G4-DMA Integrity, Respect for People, and Protecting our Planet are At Dow, we seek to build a diverse talent pipeline that will grow the values upon which Dow’s corporate culture are based professionally, as we expect and nurture leadership in every and that guide our engagement with both internal and employee as we challenge each other to be the best. We’re an external stakeholders. We keep sustainability at the forefront inclusive community highlighted by respect, collaboration, of everything we do, from internal processes, to how we open and honest communication and a diverse culture. Our treat people, to the products we create. Through Dow’s 2025 culture of diversity and inclusion means that we value and Sustainability Goals, we have re-affirmed our commitment to respect one another for our differences at all levels and we protecting our planet and we have become more purposeful actively work to increase diversity within the organization. about how our employees can directly contribute to and Our employees perform at high levels, as Dow drives a benefit from these goals, thereby Engaging Employees for performance culture that is supported through continuous Impact. We consider sustainability as a key success factor as feedback and ongoing development opportunities. We measure related to our strategic people roadmap of winning top talent, culture and employee engagement on an annual basis and accelerating performance, maximizing potential, fostering take action on corporate priority areas for improvement. We superior leadership, and catalyzing culture. encourage employee volunteerism as aligned to our Global Citizenship Strategy as way to build engagement and make an impact in local communities and across the globe. Employee headcount by region/gender 9,421 Asia Pacific 15,847 3,192 EMEAI North America 6,267 4,011 2,105 Latin America 3,187 1,303 Total per Gender F – 12,867 M – 32,466 6267 43


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    Environment 49% Average Tenure: Female 2015 Early-career 14.5 years professional hiring (global) all roles globally 6% above benchmark of peer companies “People in my work area are protected from health and safety hazards” (2015 GEOAS) * “My workgroup has a climate in which diverse perspectives are valued” A 95% favorable employee (2015 GEOAS) * survey response *more information can be found on GRI G4-26 and G4-27 Integrity We believe our promise is our most vital product—our word is our bond. The relationships that are critical to our success depend entirely on maintaining the highest ethical standards around the world. Respect for People We believe in the inherent worth of all people. We, the employees of Dow, are the engine of value creation; our imaginations, determination and dedication are essential to growth. Protecting Our Planet We believe in protecting the world’s resources. Dow’s sustainability journey involves the world’s best problem solvers working on the world’s biggest challenges. The decisions we make, the innovations we deliver and the goals we achieve are all driven by our intent to “Set the Standard for Sustainability,” making the world safer, cleaner and greener for generations to come. 44 | The Dow Chemical Company


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    2015 Sustainability Report Employee indicators GRI G4-10, G4-LA1, G4-LA12 EMEAI Latin America North America Asia/Pacific Global Workforce Representation F M F M F M F M F M Administrative 95% 5% 65% 35% 92% 8% 94% 6% 87% 13% Technical Employees 17% 83% 9% 91% 16% 84% 19% 81% 16% 84% Professionals & Managers 31% 69% 39% 61% 34% 66% 38% 62% 34% 66% Global Leaders & Executives 5% 95% 0% 100% 18% 82% 0% 100% 13% 87% Total 25% 75% 29% 71% 28% 72% 34% 66% 28% 72% Full-time Employees 23% 77% 29% 71% 28% 72% 34% 66% 28% 72% Part-time Employees 85% 15% 67% 33% 93% 7% 100% 0% 87% 13% Technical Professionals Global Leaders Diversity Indicators Administrative Global Employees & Managers & Executives *Minority 15% 23% 21% 19% 22% *Non-minority 85% 77% 79% 81% 78% Under age 30 16% 13% 14% 0% 14% Between 30-50 53% 50% 58% 28% 54% Over 50 31% 37% 28% 72% 33% *United States only EMEAI Latin America North America Asia/Pacific Global Hiring F M F M F M F M F M Administrative 100% 0% 59% 41% 74% 26% 93% 7% 78% 22% Technical Employees 18% 82% 15% 85% 13% 87% 17% 83% 15% 85% Professionals & Managers 51% 49% 46% 54% 40% 60% 44% 56% 44% 56% Global Leaders & Executives 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% Global Total 36% 64% 33% 67% 28% 72% 35% 65% 32% 68% Total 212 376 76 155 330 864 158 289 776 1684 Professionals Global Leaders Administrative Technical Employees & Managers & Executives *Minority 26% 32% 30% 19% *Non-minority 74% 68% 70% 81% *United States only 45


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    Environment Voluntary Attrition EMEAI Latin America North America Asia/Pacific Global Female 2.9% 5.9% 4.6% 4.7% 4.3% Male 3.0% 2.9% 4.7% 3.9% 4.0% Total 3.0% 3.8% 4.7% 4.1% 4.1% 0-1 years of service 2.4% 1.8% 2.4% 2.2% 2.3% 2-3 years of service 6.4% 6.3% 6.9% 7.0% 6.7% 4-5 years of service 5.0% 6.2% 8.1% 7.3% 7.0% 6-10 years of service 2.7% 2.7% 4.5% 4.2% 3.8% 11-15 years of service 1.0% 2.3% 2.2% 2.4% 1.9% 16+ years of service 2.8% 3.1% 4.7% 2.1% 3.8% Involuntary Attrition Includes the impact of divestitures Female 7.8% Male 9.8% Total 9.3% Compensation Equity G4-LA13 Return to work and retention rates after parental leave, by Global pay equity studies have been conducted at Dow over gender G4-LA3 the last 20 years, in order to assess fair treatment and ensure Return-from-Leave Rates Female Male Number our pay practices are being implemented appropriately. These studies are updated bi-annually. The most recent analysis took leave in 2015 61% 39% 197 was conducted during 2014, following global pay planning returned by EOY 2015 44% 56% 121 activities. still w/ Dow as of QE1 2016 45% 55% 118 (of those that returned) The impact of gender on pay decisions is examined globally, remained on leave as of 96% 4% 51 and the impact of ethnicity is examined in the United States. QE1 2016 Dow’s three components of compensation are analyzed (base pay, performance award, and long-term incentives). The studies examine any impact to pay differences that cannot Proportion of senior management hired from the local be explained by legitimate factors (e.g., performance ratings, community at significant locations of operation G4-EC6 job level, education, years of service, time since promotion, Employee Group Total 2015 Hires from within and/or geography). Country China 221 100% The 2014 pay equity study found no significant difference in base pay, annual bonus, or long-term incentives between Korea 67 100% genders or between U.S. minorities and non-minorities. Pay India 71 100% differences were attributable to the legitimate factors listed Global 2497 90% above, and not to gender or ethnicity. Senior Management 5 80% These results demonstrate that pay equity existed at Dow in 2014, and that global pay planning guidelines are being applied appropriately across Dow. 46 | The Dow Chemical Company


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    2015 Sustainability Report Injury and Illness Rate 2.5 U. S. Responsible Care® Chemical Company Rate 0.82 U.S. Manufacturing Rate 4.0 2.0 New Dow Portfolio* 1.5 Dow history, before 2009 acquisition 1.0 2015 Goal 0.5 0 01 11 07 97 04 02 05 14 12 15 06 03 08 09 13 00 10 94 95 96 98 99 20 20 20 19 20 20 20 20 20 20 20 20 20 20 20 20 20 19 19 19 19 19 *post Rohm and Haas acquisition Employee Safety GRI G4-LA5, G4-LA6 Following a highly successful 2015 performance that saw Protecting people and our planet is the essence of our broad- nearly a 15 percent improvement in overall performance as based 2025 World-Leading Operations Sustainability Goal, compared to 2014 and a record low injury and illness rate of which consists of traditional areas such as injury and illness, 0.16, we’re now looking toward 2025 and the start of our next process safety and motor vehicle accidents. However, we have cycle of aggressive 10 year goals. added new goals that include an emphasis on transportation stewardship, health, environment, resource efficiency and Our efforts between 2005 and 2015 have prevented over 1,500 energy and climate change. These critical components reflect injuries and more than 11,000 spills. We are proud of these our efforts toward being a sustainable organization. achievements, but our journey does not end here. As part of the highly successful Drive to Zero effort, the SAVE A LIFE We remain an industry leader in safety and we will continue to campaign was introduced in late 2014. This campaign features use our strong foundation and organizational commitment to a new metric called LIFE or Life-changing Injury or Fatality make the world a better place. As we closed 2015, we achieved Event. LIFE creates a greater sense of urgency around life a 69 percent improvement in our Injury and Illness rate. With threatening injuries and potential life threatening injuries. a 0.16 rate we were close to meeting the 75 percent or 0.12 rate We believe zero fatalities each year can be achieved by reduction goal as compared to the 2005 baseline. The progress focusing on potential life threatening or life altering events, made in reducing our rate of injury and illness since 1994 has and treating near misses and potential life threatening prevented more than 36,000 recordable incidents involving injuries as if they were actual injuries. In addition, all our Dow employees and contractors. employees are represented by a facility and workgroup level Environmental, Health and Safety team through which they work to improve our safety culture using various tools such as behavior based safety, safety suggestion response, unsafe condition and near miss response systems. 47


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    Environment The following information from the U.S. Bureau of Labor Statistics provides context for Injury and Illness performance (for U.S. operations): Comparative Injury/ Illness rate (incidents / 200,000 hours) Safety by gender data for Dow employees in the United States Values for 2015 Values for 2014 2013 Recordable 2014 Recordable 2015 Recordable Gender Injury Rate Injury Rate Injury Rate Dow employees and 0.16 0.19 contractors, Global Male 0.24 0.24 0.24 U.S. Chemical Manufacturing * 2.3 All U.S. Manufacturing* 4.0 Female 0.22 0.21 0.08 *2014 most recent data available Safety Metrics by Region – The contractor rate of Injury and Illness in 2014 was 0.20, Employees & Contractors 2015 while that of employees was 0.18 injuries per 200,000 hours. The contractor rate of Injury and Illness in 2015 was 0.20, while that of employees was 0.14 injuries per 200,000 hours. 0.30 Recordable Injury Rate 0.25 DAWC Rate & Farality Rate Days Away from Work Injury and Illness Cases (DAWC) are included in the Dow Injury and Illness rate. In 2015, DAWC 0.20 occurred at a rate of 0.040, down from 0.046 per 200,000 hours 0.15 in the prior year. 0.10 The illness rate in 2015 for employees and contractors 0.05 combined was 0.004 per 200,000 hours. 0.00 Information on absenteeism is not aggregated by the Company. North Latin Europe, Middle East Asia Pacific America America and Africa In July 2015 a contractor employee died after descending 30 feet down a large pipe into an oxygen deficient atmosphere to retrieve a piece of equipment. An investigation of this event found that the employee had not followed safety procedures. 48 | The Dow Chemical Company


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    2015 Sustainability Report Severe Motor Vehicle Accident Rate 0.50 New Dow Portfolio* Accidents per million miles Dow history, before 2009 acquisition 0.40 0.30 0.20 0.10 0.09 0 2007 2008 2009 2010 2011 2012 2013 2014 2015 *post Rohm and Haas acquisition Process Safety Incidents 200 New Dow Portfolio* History, using prior definition of PSI 150 100 50 12 0 01 11 07 97 94 04 95 02 05 14 12 15 96 03 06 98 99 08 09 13 00 10 20 20 20 19 19 20 19 20 20 20 20 20 19 20 20 19 19 20 20 20 20 20 *post Rohm and Haas acquisition 2015 Goal Achieve on average a 75% improvement in key indicators for Environment, Health & Safety operating excellence from a 2005 baseline We achieved it. Since 2005, we have more than 1,500 fewer injuries and illnesses, more than 11,000 fewer spills, 400 fewer process safety incidents 49


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    Environment Enhancing Communities and Engaging employees Dow, as a global leader in manufacturing, has a vision of how for impact – G4-DMA government and policy stakeholders can reinvigorate econo- mies, reform regulations, enable long-term trade policies, We put into action our commitment to address global chal- educate a 21st century workforce, create a cleaner energy lenges and advance human progress by engaging our people to future, and cultivate a more competitive marketplace. create more sustainable communities. As part of our efforts, we seek to create socially healthy and resilient communities, while Through financial contributions and the volunteer efforts of also supporting and furthering business success. our employees, Dow supports programs that address educa- tion, the environment and economic success – all important Manufacturing is an incredibly powerful economic engine aspects of community sustainability. In 2015, Dow and The because it produces more value across the economy per dollar Dow Chemical Company Foundation contributed $40.8 million spent than any other economic sector, creates more jobs, and to hundreds of programs globally. In-kind contributions for drives innovation that produces new goods that fundamentally product were valued at an additional $5.9 million and $106,590 change the world. for equipment. GRI G4-EC7 Total Site and Local Initiatives $15.3 U.S. milliion Total Corporate Initiatives $25.5 U.S. million Business $1.8 million Europe/ North Latin Middle Asia America America East/ Africa/ Function India $9.1 million Corp/Exec/ Disaster Relief 55% 9% 16% 20% $14.6 million 50 | The Dow Chemical Company

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