Dow Chemical 2014 Annual Report Download - page 87

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including managing emissions trading. The Company has not experienced any material impact related to regulated GHG
emissions. The Company continues to evaluate and monitor this area for future developments.
Physical Climate Parameters
Many scientific academies throughout the world have concluded that it is very likely that human activities are contributing to
global warming. At this point, it is difficult to predict and assess the probability and opportunity of a global warming trend on
Dow specifically. Preparedness plans are developed that detail actions needed in the event of severe weather. These measures
have historically been in place and these activities and associated costs are driven by normal operational preparedness. Dow
continues to study the long-term implications of changing climate parameters on water availability, plant siting issues, and
impacts and opportunities for products.
Dow’s Energy business and Public Affairs and Sustainability functions are tasked with developing and implementing a
comprehensive strategy that addresses the potential challenges of energy security and GHG emissions on the Company. The
Company continues to elevate its internal focus and external positions - to focus on the root causes of GHG emissions -
including the unsustainable use of energy. Dow's energy plan provides the roadmap:
• Conserve - aggressively pursue energy efficiency and conservation
• Optimize - increase and diversify energy resources
• Accelerate - develop cost-effective, clean, renewable and alternative energy sources
• Transition - to a sustainable energy future
Through corporate energy efficiency programs and focused GHG management efforts, the Company has and is continuing to
reduce its GHG emissions footprint. The Company’s manufacturing intensity, measured in Btu per pound of product, has
improved by more than 40 percent since 1990. As part of the Company's 2015 Sustainability Goals, Dow will maintain GHG
emissions below 2006 levels on an absolute basis for all GHGs.
Environmental Remediation
Dow accrues the costs of remediation of its facilities and formerly owned facilities based on current law and regulatory
requirements. The nature of such remediation can include management of soil and groundwater contamination and 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 the ability to apply 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 $628 million at December 31, 2014, related to the remediation of current or
former Dow-owned sites. At December 31, 2013, the liability related to remediation was $649 million.
In addition to current and former Dow-owned sites, under the federal Comprehensive Environmental Response, Compensation
and Liability Act ("CERCLA") 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 $78 million at
December 31, 2014 ($73 million at December 31, 2013). The Company has not recorded any third-party recovery related to
these sites as a receivable.