Dow Chemical 2015 Annual Report Download - page 74

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Transportation Security Administration. Dow continues to support uniform risk-based national standards for securing the
chemical industry.
The focus on security, emergency planning, preparedness and response is not new to Dow. A comprehensive, multi-level
security plan for the Company has been maintained since 1988. This plan, which has been activated in response to significant
world and national events since then, is reviewed on an annual basis. Dow continues to improve its security plans, placing
emphasis on the safety of Dow communities and people by being prepared to meet risks at any level and to address both
internal and external identifiable risks. The security plan includes regular vulnerability assessments, security audits, mitigation
efforts and physical security upgrades designed to reduce vulnerability. Dow’s security plans also are developed to avert
interruptions of normal business operations that could materially and adversely affect the Company’s results of operations,
liquidity and financial condition.
Dow played a key role in the development and implementation of the American Chemistry Council’s Responsible Care®
Security Code, which requires that all aspects of security – including facility, transportation and cyberspace – be assessed and
gaps addressed. Through the Company’s global implementation of the Security Code, Dow has permanently heightened the
level of security – not just in the United States, but worldwide. Dow employs several hundred employees and contractors in its
Emergency Services and Security department worldwide.
Through the implementation of the Security Code, including voluntary security enhancements and upgrades made since 2002,
Dow is well-positioned to comply with U.S. chemical facility regulations and other regulatory security frameworks. Dow is
currently participating with the American Chemistry Council to review and update the Responsible Care® Security Code.
Dow continues to work collaboratively across the supply chain on Responsible Care®, Supply Chain Design, Emergency
Preparedness, Shipment Visibility and transportation of hazardous materials. Dow is cooperating with public and private
entities to lead the implementation of advanced tank car design, and track and trace technologies. Further, Dow’s Distribution
Risk Review process that has been in place for decades was expanded to address potential threats in all modes of transportation
across the Company’s supply chain. To reduce vulnerabilities, Dow maintains security measures that meet or exceed regulatory
and industry security standards in all areas in which the Company operates.
Dow's initiatives relative to chemical security, emergency preparedness and response, Community Awareness and Emergency
Responses and crisis management are implemented consistently at all Dow sites on a global basis. Dow participates with
chemical associations globally and participates as an active member of the U.S. delegation to the G7 Global Partnership Sub-
Working Group on Chemical Security.
Climate Change
Climate change matters for Dow are likely to be driven by changes in regulations, public policy and physical climate
parameters.
Regulatory Matters
Regulatory matters include cap and trade schemes; increased greenhouse gas (“GHG”) limits; and taxes on GHG emissions,
fuel and energy. The potential implications of each of these matters are all very similar, including increased cost of purchased
energy, additional capital costs for installation or modification of GHG emitting equipment, and additional costs associated
directly with GHG emissions (such as cap and trade systems or carbon taxes), which are primarily related to energy use. It is
difficult to estimate the potential impact of these regulatory matters on energy prices.
Reducing Dow's overall energy usage and GHG emissions through new and unfolding projects will decrease the potential
impact of these regulatory matters. Dow also has a dedicated commercial group to handle energy contracts and purchases,
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.