Science for a Sustainable World:

The Value of Water as a Driver for Innovation

Gen Leathers
Corporate Water Strategy Leader The Dow Chemical Company
25 March 2011

Todays Agenda
The Value of Nature

The Manufacturing Footprint

The Value of Solutions

25 March 2011

Our Industry
Turning feedstocks into essential products

Building & Construction

Salt

Gas

Electronics

Agriculture

Oil

Coal

Wire & Cable

Coatings

Biomass

Recycle

Automotive

25 March 2011

Integrating Sustainability into our Corporate Strategy

MISSION To passionately innovate what is essential to human progress by providing sustainable solutions to our customers VISION VALUES To be the most profitable and Integrity respected science-driven chemical Respect for People company in the world Protecting Our Planet
CORPORATE STRATEGY Preferentially invest in a portfolio of technology-integrated, market-driven performance businesses that create value for our shareholders and growth for our customers

Corporate Themes:

Financial Discipline Strategic Growth

Sustainability
Performance Culture
25 March 2011

A Breakthrough Collaboration:
The Economics of Ecosystems

NAME TITLE The Dow Chemical Company

25 March 2011

Business risks and opportunities Risk

Operational
Increased scarcity/cost of inputs Reduced quality of inputs Disruption to business operations Stricter environmental policies and legislation Fines Permit or license suspension Challenge to license to operate Changes in customer preferences Higher cost of capital More rigorous lending requirements New products or services Markets for certified products Markets for ecosystem services Green banking
25 March 2011

Opportunity
Increased resource use efficiency License to expand operations Ability to shape government policy Improved or differentiated brand

Regulatory and legal

Reputational Damage to brand or image Market and product Financial

Valuing Nature a Strategic Fit for Dow

Access to ecosystem services
Product alignment to fit growing need Project planning and stakeholder buy-in Expansion/Permitting Process Green Infrastructure Remediation Conservation Activities

Recognition of offsets or payments from ecosystem services on lands Dow owns

25 March 2011

25 March 2011

Dow A History of Working with Nature

Seadrift, TX 1996
Tertiary Wastewater Treatment
Seadrift Operations Manufacturing Site

110 Acre Wetland, $1.4 million

Traditional treatment installation cost: $40-44 million 5 million gallons per day
Seadrift Constructed Wetlands Project

Consistent, low TSS and BOD effluent (single digit PPM)

Habitat for alligators, nutria, hogs, deer, bobcats and various birds Tours coordinated with local schools

4 3 2
Existing Wastewater Treatment Ponds

25 March 2011

Terneuzen Water Re-use Public Private Partnership

25 March 2011

10

25 March 2011

11

Production Technology
Dow and BASF received the Institution of Chemical Engineers Innovation and Excellence Award in Core Engineering for their jointly developed Hydrogen Peroxide to Propylene Oxide (HPPO) production technology

Innovation offers distinct economic and environmental benefits As compared to conventional propylene oxide (PO) process technologies.

New process reduces wastewater by 70 to 80 percent energy use reduced by approximately 35 percent.

25 percent less capital to build than conventional technologies - reduced

infrastructure, a smaller physical footprint and simpler raw materials integration. 25 March 2011

12

Value of Solutions
Value of nature and the ecosystem services

Manufacturing footprint and efficient operations to achieve sustainable water use and management

Value of solutions -Technology

25 March 2011

13

Water

More than a billion people in the world do not have access to clean, safe drinking water

25 March 2011

14

Harnessing the Power of Chemistry for Product Innovation

Dow is committed to
developing sustainable solutions to world challenges by leveraging the power of science.

25 March 2011

15

Technological expertise and innovative solutions

Agricultural Use: Drought-tolerant crops

With world population growth and the need for increased global food production, demand for water management in agriculture becomes more crucial

Dow AgroSciences, the agriculture subsidiary of The Dow Chemical Company, is developing drought-tolerant crops including corn and canola

We are working with millions of farmers across the globe to produce more while conserving the precious resource of water

25 March 2011

16

Sewage Pipelines
Conserving the worlds water supply through sewage pipe rehabilitation Dow epoxy resins are used in technology that rehabilitates aging or damaged sewage pipelines by constructing a new pipe inside an existing pipe which can contribute to 90 million more served people every day.

25 March 2011

17

25 March 2011

18

25 March 2011

19

25 March 2011

20

25 March 2011

21

Dow technologies treat more than nine billion gallons (36 billion liters) of water every day
Dow Water & Process Solutions Business
FILMTEC Reverse Osmosis membranes, ion exchange resins and electrodeionization are used in dozens of applications. These technologies: make seawater fit for human consumption and industrial use remove contaminants from municipal water supplies, purify industrial and residential water

reduce and reclaim water used in industrial processing.

The Company plans to dedicate even more resources to the next generation of clean water technologies through its Global Water Technology Development Center in Tarragona, Spain, which is slated to open in June.
25 March 2011

22

Dow 2015 Sustainability Goals

25 March 2011

23

25 March 2011

24

At Dow, we view chemistry as the work of humanity. The most important element of all is not found on the

periodic table.
It is the Human Element. With it, we are a differencemaker in the world.

www.dow.com/commitments
25 March 2011

25

Thank You

25 March 2011

26