Dow Chemical 2012 Annual Report Download - page 89

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Dow continually works to strengthen partnerships with local responders, law enforcement and security agencies, and to
enhance confidence in the integrity of the Company’s security and risk management program, as well as strengthen its
preparedness and response capabilities. Dow also works closely with its supply chain partners and strives to educate
lawmakers, regulators and communities about the Company’s resolve and actions to date that mitigate security and crisis
threats.
Climate Change
Dow will continue to focus on managing its energy and greenhouse gas ("GHG") emissions footprint and delivering solutions
to help our customers manage theirs. Through its science and technology capabilities, Dow is committed to bringing solutions
to enable a sustainable energy future by producing products that help others reduce GHG emissions, such as lightweight
plastics for automobiles and insulation for energy efficient homes and appliances. For example, Dow's building insulation
materials and air-sealing products can save up to 20 percent on heating and cooling costs and significantly reduces GHG
emissions. The Company's STYROFOAM™ insulation is installed in over 20 million buildings worldwide, saving over
$10 billion in energy costs annually. Dow's DOWTHERM™A heat transfer fluids are used in 14 large, concentrating solar
power plants, with a total capacity of over 700 megawatts. These plants will provide power for the equivalent of approximately
415,000 homes and save 1.6 million metric tons of GHG emissions per year.
Through corporate energy efficiency programs and focused GHG management efforts, the Company has significantly
reduced its GHG emissions footprint. The Company's manufacturing energy intensity, measured in Btu per pound of product,
has improved more than 40 percent since 1990, saving the Company a cumulative $25 billion and 5,400 trillion Btus. Since
1990, Dow has prevented over 200 million metric tons of GHG emissions entering the atmosphere, reducing the Company's
absolute emissions footprint by more than 30 percent. As part of our 2015 Sustainability Goals, Dow will maintain GHG
emissions below 2006 levels on an absolute basis for all GHGs.
Dow is studying the life cycle impact of its products on climate change and additional global projects that could improve
the Company's overall GHG emissions footprint. The Company has some units subject to the European Union's Emissions
Trading Scheme ("EU ETS"); however, the Company has not experienced any considerable impact in regard to regulated GHG
emissions from the EU ETS. Dow will continue to evaluate and monitor future developments that may affect operations in the
region.
Dow's Energy & Climate Change Policy and Issue Management Team is tasked with developing and implementing a
comprehensive strategy that addresses the challenges of climate change and energy security and is advocating an international
framework that establishes clear pathways to help slow, stop and reverse the rate of GHG emissions globally.
Environmental Remediation
Dow accrues the costs of remediation of its facilities and formerly owned facilities based on current law and existing
technologies. The nature of such remediation includes, for example, the management of soil and groundwater contamination
and the closure of contaminated landfills and other waste management facilities. In the case of landfills and other active waste
management facilities, Dow recognizes the costs over the useful life of the facility. The accounting policies adopted to properly
reflect the monetary impacts of environmental matters are discussed in Note 1 to the Consolidated Financial Statements. To
assess the impact on the financial statements, environmental experts review currently available facts to evaluate the probability
and scope of potential liabilities. Inherent uncertainties exist in such evaluations primarily due to unknown environmental
conditions, changing governmental regulations and legal standards regarding liability, and emerging remediation technologies.
These liabilities are adjusted periodically as remediation efforts progress or as additional technical or legal information
becomes available. Dow had an accrued liability of $685 million at December 31, 2012, related to the remediation of current or
former Dow-owned sites. At December 31, 2011, the liability related to remediation was $664 million.
In addition to current and former Dow-owned sites, under the Federal Comprehensive Environmental Response,
Compensation and Liability Act and equivalent state laws (hereafter referred to collectively as “Superfund Law”), Dow is liable
for remediation of other hazardous waste sites where Dow allegedly disposed of, or arranged for the treatment or disposal of,
hazardous substances. Because Superfund Law imposes joint and several liability upon each party at a site, Dow has evaluated
its potential liability in light of the number of other companies that also have been named potentially responsible parties
(“PRPs”) at each site, the estimated apportionment of costs among all PRPs, and the financial ability and commitment of each
to pay its expected share. The Company’s remaining liability for the remediation of Superfund sites was $69 million at
December 31, 2012 ($69 million at December 31, 2011). The Company has not recorded any third-party recovery related to
these sites as a receivable.