ENVIRONMENTAL PERFORMANCE INROADS FOR SUSTAINABLE DEVELOPMENT DOW | 2021 ESG REPORT | 22 CLIMATE PROTECTION Reducing Emissions Across Our Value Chain Scope 3 emissions are inclusive of upstream emissions from products and services we procure from suppliers, as well as downstream emissions from the transportation of our products and the emissions emanating from the use and disposal of our sold products. These emissions are critical to Dow and represent approximately 70% of our total emissions. Because more than half of our Scope 3 emissions come from raw materials, transportation and other services we purchase as a company, it is critical to partner with suppliers and customers across the value chain to reduce emissions. Purchased goods and services We have partnered with CDP (formerly the Carbon Disclosure Project) to collect climate data from approximately 100 suppliers, representing 31% of our 2020 spend. Of those suppliers, 92% of respondents reported Scope 1 carbon emissions, and 80% have set a carbon reduction target. We are expanding the CDP program to target engagement with approximately 350 suppliers in 2022 and 500 globally in 2023, with an ask to disclose carbon emissions data and reduction plans. With this data, we will improve the accuracy of our Scope 3 values along with our ability to take action and track progress toward our emissions reduction goals. Transportation footprint Our Integrated Supply Chain (ISC) team developed the Transportation Carbon Footprint Tracker, which collects shipment data and uses with the Global Logistics Emissions Council (GLEC) Framework to calculate the carbon emissions generated at the shipping stage. This tracker produces much more granular data than historical reporting and will serve as the main source of transportation emissions data internally. Externally, this tracker can provide a baseline for discussions with customers and lead to collaborative efforts to reduce transportation emissions across the value chain. Value chain and enhancing ESG engagement Several efforts are underway to embed ESG criteria into supplier engagement activities, including all requests for proposals, tenders, contracts and supplier relationship management strategies. This will help us access robust ESG data and include sustainability as a key metric in the decision-making matrix. Beyond our efforts within Purchasing and Integrated Supply Chain, we are investing in external collaborations to meet the goals we share with many stakeholders across our value chains. For example, in 2021, we joined Together for Sustainability, an industry group that enables us to engage with suppliers in a streamlined and strategic way alongside our peers in the chemical sector. We also are collaborating with the World Business Council for Sustainable Development (WBCSD) through the Partnership for Climate Transparency (PACT) to develop robust methodologies and systems for sharing product carbon footprint data along supply chains. In addition, we actively participate in several working groups that focus on improving sustainability in the chemical industry through the European Chemical Industry Council (Cefic) and the American Chemistry Council (ACC). Our logistics supplier award programs (S4TAR and DowGOL) are designed to encourage and recognize logistics partners for excellent performance in the areas of safety, sustainability, social responsibility and service. The award program acts as a platform for sharing best practices, partnership cultivation, operation excellence recognition and sustainability advocacy. Every year, Dow surveys its logistics partners about their sustainability strategies, certifications, carbon reduction efforts, waste reduction, recycling efforts and water conservation, as well as employee training and incentivization. Responses are shared with all participants to encourage a collaborative environment and cultivate new ideas for improvement. • Shipping Type • Weight Transportation Carbon Footprint Tracker • Distance • Region • Mode of Transportation • GLEC Carbon Factor