ENVIRONMENTAL PERFORMANCE INROADS FOR SUSTAINABLE DEVELOPMENT DOW | 2021 ESG REPORT | 26 Empowering Amazon Communities to Protect Biodiversity and Generate Social Development Could the seeds of the Andiroba tree also be a seed that protects the Amazon rainforest, increases local family incomes and generates value-added products? We believe so. Under a Dow strategic sustainability initiative, Project Ybá – Conservation that Transforms, we are collaborating with multiple parties to develop and scale a community-oriented “bio-business” model in Brazil’s Amazon rainforest that sustainably uses standing-forest resources, such as seeds and fruits, and provides livelihoods for families. Near our Breu Branco site, Dow maintains a 38,000-hectare Amazon rainforest preserve, half the size of New York City. Surrounding the preserve, continued deforestation and ecosystem degradation pose major economic, cultural and environmental threats to the region. Project Ybá seeks to empower Amazon communities to protect biodiversity and generate income by developing a local cooperative that would harvest seeds, fruits and other renewable resources – called bioactives – on Dow’s forestland and then sell them for use in cosmetics or other products. Currently, Dow is collaborating with the Peabiru Institute and TNC to analyze the biodiversity within Dow’s preserved native Amazon forests and identify a local community to manage the commercial cooperative. Dow is also working with cosmetics brand Natura, the first commercial collaborator of Project Ybá. Natura will support the development of the local cooperative and contribute its expertise in the technical evaluation of the bioactives. In 2021, Dow and our project partners: • Completed biodiversity mapping of Dow’s preserve to evaluate its potential as a source for bioactives. A survey found 17 species of commercial interest identified on the land. Of particular interest to Natura was andiroba, a tropical tree that usually produces 180 to 200 kilograms of seeds per plant each year. Approximately 60% of their weight is oil. Andiroba seed oil is used in the pharmaceutical and cosmetics industry because of its analgesic, antibacterial, anti-inflammatory, antifungal ability and anti-allergic properties. 1 • Completed 22 social field visits to identify a local community as a commercial partner for the cooperative. Supported by Dow, the Peabiru Institute will develop and train a local cooperative to harvest and sell bioactives. Once the commercial cooperative is fully trained and organized, it is estimated that up to 150 families will benefit from Project Ybá’s sustainable commerce. • Engaged TNC and EcoMetrix Solutions Group to quantify ecosystem services at the preserve using an existing tool developed through Dow’s partnership with TNC. This will help identify the key parameters needed to incorporate harvesting practices that respect forest life cycles and maintain native species. Eventually, Dow and its collaborators expect to scale Project Ybá’s sustainable commerce model to other communities to help preserve and restore the Amazon rainforest. By fostering a culture of land stewardship that supports inclusion and generates job opportunities, we intend to show that the environment, society and business growth can all thrive together. 1 https://bioresources.cnr.ncsu.edu/wp-content/uploads/2019/12/BioRes_15_1_894_SodreSouza_PFODQ_Valoriz_Andiroba_Residue_Optimiz_Alk_Pretreatm_Ferment_Sugar_16508.pdf  CLIMATE PROTECTION