DOW | 2021 ESG REPORT | 5 • We continue to take deliberate actions to drive inclusion, diversity and equity throughout our organization and beyond. We believe diverse teams make more innovative and better-performing teams. That is why we are institutionalizing inclusion in everything we do – from hiring to who has a seat at the decision-making table. We are creating a culture that embraces and values differences. In 2021, we introduced new global paid time-off policies that will provide employees with equal opportunity for parental leave, to take care of their families, and to volunteer and engage in Employee Resource Group (ERG) activities. Our ERG participation is redefining best-in-class performance, with nearly 100% of People Leaders and more than 50% of global employees participating. We also continue to advance supply chain diversity. Since launching four years ago, our Supply Chain Diversity Program has led to more than $1.74 billion in spend with small and diverse suppliers and delivered over $15 million in EBIT to our bottom line. • We are mobilizing alliances of diverse stakeholders to create meaningful social change across our communities. In 2021, we increased our commitment to $13 million for Dow ACTs, a framework designed to address systemic racism and inequality. We joined OneTen, a coalition of businesses that have pledged to upskill, hire and advance 1 million Black individuals in the United States over the next decade. We also continued engagement with historically Black colleges and universities (HBCUs) to reinforce the STEM and Ph.D. pipelines. Through the Future of STEM Scholars Initiative (FOSSI), we are underwriting the education of 10 students per year who are pursuing STEM degrees at HBCUs to help increase the number of underrepresented professionals in the chemical industry. And because we believe sustainable business creates positive social change, we invested $2 million in seed grants for projects in 12 countries, including infrastructure projects that help keep plastic waste out of the environment and back into the circular economy. • We are improving governance, transparency and accountability across Dow. We have raised the bar in our ESG reporting and disclosures through improved carbon emissions and circularity reporting and improved climate risk disclosures and greenhouse gas intensity metrics. And we are working with the World Economic Forum’s International Business Council to help develop consistent international frameworks for reporting and accounting standards for ESG matters. We continued to actively deepen and diversify our Board, electing three new directors in 2021 and 2022. Also, we modified our Annual Performance Award and Executive Compensation Program metrics to include ESG components – holding every member of Team Dow accountable for the same metrics that we report to all our stakeholders. A sustainable world is one of intersections – between the environment and society, science and innovation, collaboration and action. Because the challenges facing our local and global communities are increasingly complex and interconnected, they demand a collaborative and integrated approach. They also require game-changing ideas fueled by science. Within this report, you’ll see how Dow is working with our stakeholders to deliver on a broad range of ESG priorities through our purpose-driven strategies and processes. I’m proud of the many ways that Team Dow is making real progress in helping society meet its most urgent needs. While we know there is still much work to do, we are passionately committed – as we have been for well over a century – to imagine a better world. A more equitable world. A more resilient world. A more sustainable world. And a company that will thrive for the next 125 years as it helps build that new future. Sincerely, Jim Fitterling Chairman and Chief Executive Officer As a science and technology company, we eagerly take on the responsibility for finding answers to the most pressing challenges of our time.
![ESG Report | Dow - Page 5](/cdn-cgi/image/width=600,quality=80,format=webp/https://cdn.relayto.com/images_originals/62c2e338e33de.jpeg)