2015 sustainability report - dow - duurzaam · report year, as part of the sale of a section ......

48
2015 SUSTAINABILITY REPORT DOW BENELUX

Upload: others

Post on 11-Jan-2020

0 views

Category:

Documents


0 download

TRANSCRIPT

Page 1: 2015 SuStainability RepoRt - Dow - Duurzaam · report year, as part of the sale of a section ... Dow 2015 Sustainability Report 3 Contents a biRD’S-eye View oF Dow 5 - Dow benelux

2015 SuStainability RepoRtDow benelux

Page 2: 2015 SuStainability RepoRt - Dow - Duurzaam · report year, as part of the sale of a section ... Dow 2015 Sustainability Report 3 Contents a biRD’S-eye View oF Dow 5 - Dow benelux

Dow 2015 Sustainability Report 2

the Dow Chemical Company (Dow) is highly committed to transparency and verifiability when it comes to attaining its sustainability goals.that is why Dow publishes an annual global Sustainability Report in line with the Global Reporting initiative (GRi) G4 frame-work. Dow benelux b.V. is a subsidiary of the Dow Chemical Company. Considering Dow benelux’s importance and impact in the netherlands, a national report has also been compiled. this report is also inspired by the GRi G4 guidelines. in addition, the criteria of the transparency benchmark in the netherlands are followed.

two production sites in the netherlands - Dow terneuzen and Dow Delfzijl - also belong to Dow benelux b.V. the business process Services Center, abbreviated as bpSC, operates under a separate entity. Dow’s activities in belgium are carried out from belgian companies, namely Dow belgium b.V.b.a. and polyol belgium b.V.b.a.

where reference is made to Dow benelux in this report, this refers to the limited liability company Dow benelux and the above-mentioned Dow legal entities established in the benelux. the report details, however, concern the performance of the sites, particularly the production

locations: terneuzen, Delfzijl, tertre and Zwijndrecht. the emphasis of the report, however, lies on our company’s impact in the netherlands, particularly on the impact of Dow terneuzen. this is because, with its 16 plants, Dow terneuzen is by far the largest site. the report provides more insight, details and background on matters of material importance for our stakeholders. the cumene plant in terneuzen transferred to olin during the report year, as part of the sale of a section of Dow’s chlorine activities. this influenced the total production as well as the related data.

introduction

the numbers and figures stated in this report are derived from Dow’s own data and reporting systems. environmental data is reported separately in the annual environmental Report (aeR) and validated by the relevant competent authority. energy figures are reported in the context of the Mee agreement (Multi-year agreement for energy efficient etS companies), and Co2 figures as part of the Co2 emissions report submitted to the government and verified by DnV Gl (formerly KeMa). the safety figures are in keeping with oSHa guidelines. Financial and other economic data are obtained from Dow eRp data systems, which are validated by an external accountant. we strive to continuously improve our report. this year was the second time an external verification of reported data was carried out. the results are included at the end of this report.

the Sustainability Report can be accessed at www.dowbenelux.com.

Dow benelux is also launching an online platform to coincide with the publication of this report: www.dowduurzaam.nl.

the corporate sustainability reports and other reports relevant for stakeholders can be found at www.dow.com: 2015 Dow annual Report under investors, financial information. Quarterly updates are found under Company, Sustainability, Reporting Center.

we would be delighted to receive questions, comments and suggestions related to this Sustainability Report at the following address:

[email protected]. Dow benelux b.V.postbus 484530 aa terneuzenthe netherlands

Publication date: June 28, 2016

Page 3: 2015 SuStainability RepoRt - Dow - Duurzaam · report year, as part of the sale of a section ... Dow 2015 Sustainability Report 3 Contents a biRD’S-eye View oF Dow 5 - Dow benelux

Dow 2015 Sustainability Report 3

Contents

a biRD’S-eye View oF Dow 5- Dow benelux profile- Core data- our value chain

appenDiCeS 45- independent assurance Report- appendix 1: abbreviations and definitions- appendix 2: benelux sites’ data overview

ouR StRateGy 9- our vision- 2025 Sustainability Goals- Dow benelux in 2015- our sustainability calendar: overview of goals

and results- Challenges- administration, supervision and management

SaFety enViRonMent eneRGy innoVation MaKinG a SuStai-nable DiFFeRenCe

wateR ouR people

17 20 26 30 35 38 42

FoRewoRD 4- anton van beek, president of

Dow benelux- arnd thomas, Vice-president

of benelux Site operations

- Safety results- process safety- Safe environment- Compliance

- emissions- waste- water

consumption- wastewater

- efficient energy consumption

- Dow’s role in the transition towards a sustainable energy future

- energy and climate policy

- Robust water system

- e4 water- water nexus

- anniversary year- Cooperation and dialog- Contact with the community- economic impact- logistics and transport

- Research projects- energy and

raw material innovations

- workforce and formation

- our values and codes of conduct

- Goals and results- Dow as employer

Page 4: 2015 SuStainability RepoRt - Dow - Duurzaam · report year, as part of the sale of a section ... Dow 2015 Sustainability Report 3 Contents a biRD’S-eye View oF Dow 5 - Dow benelux

Dow 2015 Sustainability Report 4

Foreword

2015 was a memorable year in the historyof Dow benelux. together with our employees, with Zeeland, our business partners and customers and with everyone who has a share in our success, we cele-brated our 60th anniversary in the benelux and the 50th anniversary of Dow terneuzen. we also used this anniversary to look for-ward together with our stakeholders. after all, we are facing an important transition towards a sustainable society. our industry can fulfill an important role in this tran-sition, because particularly the chemical industry has the potential and capacity to develop innovations and solutions to realize this sustainable future. our history shows that we have always been capable

of innovating and adapting to new situations. this forms the basis beneath our sound and reliable assets and of our integrated operation in which everyone in the chain - from development, preparation, production and sales to delivery to the client - contributes towards achieving the result and business success. in 2015 the benelux businesses made a strong contri-bution to the Dow Chemical Company result and further growth. overall, volume and margin growth were realized in a flat and challenging european market; a result with which we created an excellent starting position for the next phase in our sustainability journey. the 2025 Sustaina-bility Goals that Dow introduced in 2015

are leading for this and, at the same time, are a source of inspiration. because again, Dow is raising the bar very high with this third set of 10-year goals. it is Dow’s ambi-tion to lead the development of blueprints for a sustainable society. i am proud to be part of a company that has such high ambitions; a company that also demon-strates time and time again that it has the capacity to achieve these ambitions. but mainly, i am proud of the people and the opportunities that we have, as Dow benelux, to make a substantial contribu-tion to Dow’s 2025 goals. the results we achieved for the 2015 goals - detailed in this report - demonstrate this. but above all, we show here how we achieve better

solutions by cooperating with all our stakeholders. our ten-year multi-partner partnership regarding water reuse in the region is a good example of this. and it is our inspiration for developing an ambi-tious set of 2025 goals for the benelux.

anton van beekPresident Dow Benelux

From an operational perspective, the year 2015 presented two themes. on the one hand our plants operated reliably and with extremely high staffing. almost all have broken existing production records. in the first quarter there was a successful and safe turnaround of cracker 3 in terneuzen; a huge operation, which at its peak resulted in an extra 1,600 people at work on the terneuzen site. Many improvement projects were implemented in the organi- zation that have contributed to a more efficient working method in the chain and that have contributed to significant cost savings. all these achievements were, however, overshadowed by a disappoin-

ting safety performance. the first half of 2015 saw a series of safety incidents, resulting in our score being far removed from the 0 objective. although none of these incidents led to permanent injury, for us this does not detract from how seriously we take this. our direct interven-tion on this negative trend included an assessment of our safety culture, as well as the usual investigations into the cause of each incident. we used the outcomes of this assessment to start investing in awareness training courses for ‘influential leaders’ in the workplace. these do not only include formal leaders, but everyone who is in the position to influence the

behavior of others. because, as has been shown repeatedly, safety is mainly a ques-tion of behavior and exemplary behavior from managers, as well as adherence to principles, rules and procedures. Dow terneuzen underwent a transformation during the past 2005-2015 sustainability period; from a site with 24 Dow plants, to an industrial park with some 16 Dow plants as well as other chemical compa-nies. it was not always easy to attract investments for growth during the com-pany’s transformation. nevertheless, the benelux sites were able to confirm and strengthen their position within the top performing Dow sites. within and outside

Dow, the Dow benelux plants have a leading position in the area of safety. this position obliges us to maintain this record; a necessary condition to keep our future safe. our goal and commitment on this point remain unchanged.

arnd thomas, General Director of Dow Terneuzen and Vice President Benelux Site Operations

Page 5: 2015 SuStainability RepoRt - Dow - Duurzaam · report year, as part of the sale of a section ... Dow 2015 Sustainability Report 3 Contents a biRD’S-eye View oF Dow 5 - Dow benelux

Dow 2015 Sustainability Report 5 a bird’s-eye view of Dow

a biRD’S-eye View oF DowDow combines the strength of science and technology to create innovations

Page 6: 2015 SuStainability RepoRt - Dow - Duurzaam · report year, as part of the sale of a section ... Dow 2015 Sustainability Report 3 Contents a biRD’S-eye View oF Dow 5 - Dow benelux

Dow 2015 Sustainability Report 6 a bird’s-eye view of Dow

Dow CoMbineS tHe StRenGtH oF SCienCe anD teCHnoloGy to CReate innoVationS. innoVationS tHat CReate Value at tHe inteRFaCe oF CHeMiStRy, pHySiCS anD bioloGy, wHile at tHe SaMe tiMe ContRi- butinG to SolVinG tHe woRlD’S MoSt uRGent pRobleMS, SuCH aS tHe neeD FoR Clean DRinKinG wateR, tHe Depletion oF natuRal Raw MateRialS, FooD SHoRtaGeS anD tHe eFFeCtS oF CliMate CHanGe.

Dow benelux profile Dow’s integrated, market-driven portfolio of specialty chemicals, hi-tech materials and plastics are trendsetting within the industry. they provide technology-based products and solutions to customers in approximately 180 countries and in high-growth industries such as packaging, electronics, water, coatings and agricultu-ral products.

in 2015, Dow achieved total worldwide sales of more than 49 billion dollars and had around 49,500 employees. the company’s over 6,000 product families are produced at 179 production sites in 35 countries across the world.

in total the Dow benelux production sites produced over five and a half million tons of products in 2015. the basic chemicals and plastics that we produce can be found in numerous products and applications that we encounter in our everyday life, such as packaging, electronics, toys and medicines. at the end of 2015, Dow benelux had 1,957 permanent employees. Dow also employed 462 contract employees and 552 bpSC employees (116 permanent employees and 436 temporary employees).

Page 7: 2015 SuStainability RepoRt - Dow - Duurzaam · report year, as part of the sale of a section ... Dow 2015 Sustainability Report 3 Contents a biRD’S-eye View oF Dow 5 - Dow benelux

7

92

53

42

5

78% 22%

Dow Terneuzen with 16 plants, this is the second largest Dow production site in the world. the three naphtha crackers form the heart of the terneuzen site (also see infographic on value chain at Dow terneuzen). the head office for the benelux, one of Dow europe’s largest research departments and the business process Services Center (bpSC) are also located in terneuzen. the bpSC provides services to Dow businesses and joint ventures in europe, the Middle east, africa and india (eMeai).

Delfzijl in Delfzijl, Dow produces Methylene Diphenyl Diisocyanate (MDi), an important basic ingredient for polyurethane. polyurethane is used in such products as mattresses, furniture, refrigerators, dashboards and cell phones.

Zwijndrecht in Zwijndrecht, Dow has one plant for the production of Dow Cellosize™. this substance is used as a thickener in various products, such as paint, building materials and personal care products. the plant is operated by ineos.

Antwerp Dow’s service center and sales office for the benelux, including the Dow agrosciences sales office.

Tertre Dow produces polyol in tertre, a raw material for polyurethane production, similar to MDi in Delfzijl.

Brussels the office for eu Government affairs & public policy, which promotes the interests of Dow in european union organizations, is located in brussels. 24Virtual /

Home office

the bpSC is a multi-services organi-zation. it provides services to Dow businesses in the Dow eMeai region. 116 permanent employees, 436 temporary employees.

BPSC 552

17329

Dow benelux core data

Dow 2015 Sustainability Report a bird’s-eye view of Dow

Formation of Dow Benelux

1957

>22nationalities of employees

Production volume

5,512 mln kton

1.6 billion turnover

Energy consumption

60.3 PJ

Page 8: 2015 SuStainability RepoRt - Dow - Duurzaam · report year, as part of the sale of a section ... Dow 2015 Sustainability Report 3 Contents a biRD’S-eye View oF Dow 5 - Dow benelux

Dow 2015 Sustainability Report a bird’s-eye view of Dow8

our value chainDow operates in an integrated chemical production chain. Raw materials are converted into products through various process steps. these products are sold by Dow to customers as end products, but are actually intermediates. Dow benelux is an important location for the production of hydrocarbon-based chemistry.

Raw MateRialS tRanSpoRt inteGRateD pRoDuCtion tRanSpoRt to CuStoMeRS

SaleS MaRKetS

ethylene

propylene

benzene

butadiene

polyol

polyglycol

aminesCumeene

polyethylenelDpe + Dowlex*

ethylene oxide

our sustainable role in the chemical chain lies primarily in the core process of converting raw materials into chemical products. our knowledge and technology have enabled us to successfully take major steps towards increasing the sustainability of our production chain. but in keeping with our broad view of sustainability, we view sustainability increasingly and more emphatically through the eyes of our stakeholders throughout the entire chain, from raw material to the customer.

Chemicals

plastics

Food/agro

Home & personal Care

Furniture

water membranes

Coatings

transportation & infrastructure

Carpet/tiles industry

building & Construction

Page 9: 2015 SuStainability RepoRt - Dow - Duurzaam · report year, as part of the sale of a section ... Dow 2015 Sustainability Report 3 Contents a biRD’S-eye View oF Dow 5 - Dow benelux

Dow 2015 Sustainability Report our strategy9

ouR StRateGy working with passion and creativity on solutions and innovations

Page 10: 2015 SuStainability RepoRt - Dow - Duurzaam · report year, as part of the sale of a section ... Dow 2015 Sustainability Report 3 Contents a biRD’S-eye View oF Dow 5 - Dow benelux

Dow 2015 Sustainability Report our strategy10

Dow’s long-term strategy is based on this, which means that sustainable thinking and doing is in our Dna. we do not only search continuously for ways to integrate sustai-nability in all facets of our company and to reduce our footprint, we are also convinced that we can and must play an important role in a more sustainable world. with our technology and chemistry and with our solution-focused people, we deliver an important contribution to a sustainable society.

our vision according to the united nations, the global population will amount to 8.3 billion people by 2030; a billion more than in 2015. the global population will also continue to grow further after this, to 9 billion people in 2050. 1.3 planets are already needed for current production and consumption patterns. this human footprint will only increase if we continue as we are doing now. the expectation is that we will need 50% more food by 2030. the food pro-duction increase that we need to achieve in the coming 40 years is just as high as that of the past 8,000 years.

at Dow we combine science and techno-logy and work with passion and creativity for developing solutions and innovations.

at Dow we CoMbine SCienCe anD teCHnoloGy. we woRK paSSionately anD CReatiVely on Solu-tionS anD innoVationS. witH tHat we GeneRate Value, FoR ouR CoMpany, HuManity anD tHe enViRonMent.

this enables us to generate value - for our company, humanity and the environment. these challenges must be addressed sustai-nably if we are to make and keep the pla-net livable for everyone. the principles of sustainability are incorporated in everything that we do. they form an integral part of who we are as company, what we see as our mission and how we are guided. we want to contribute towards protecting

our planet. we do this through combining science and technology and by working with passion and creativity every day on solutions and innovations. this enables us to create value - for our company, humanity and the environment.

Figure: our vision on sustainability: anchored in

mission, vision and values

ouR MiSSion

we work with passion towards

innovation for our stakeholders. we do this at

the cutting-edge of chemistry, biology and physics.

ouR ViSion we want to be the most valuable and respected

science/technology company in the world.

ouR ValueSintegrity, respect for people, the protection of our planet.

Page 11: 2015 SuStainability RepoRt - Dow - Duurzaam · report year, as part of the sale of a section ... Dow 2015 Sustainability Report 3 Contents a biRD’S-eye View oF Dow 5 - Dow benelux

Dow 2015 Sustainability Report our strategy11

Sustainability Goals for 2025the way in which we handle our planet will need to change drastically in the coming decades if we want to be able to feed all the mouths, provide sufficient clean drinking water, sanitation services, housing, mobility, education and health-care. this has considerable consequences for our way of life, how we work and our leisure time. we are also convinced that the chemical industry should play a key role in the transition towards a sustainable society.

with this international focus, in april 2015 Dow introduced its Sustainability Goals for 2025; a third phase in Dow’s sustainable development. the 2005 objectives had a strong focus on drastically reducing our footprint. the 2015 goals added a hand-

print element to this, by also incorporating breakthrough technologies in the goals. we are again going that step further in the 2025 Goals. as well as reducing the footprint and increasing our handprint, we aim to redefine the role of companies such as Dow in society and in cooperating with governments and business partners. it is Dow’s ambition to play a leading role in multi-partner partnerships, in order to have a stake in the development of a blueprint for a sustainable society. Dow’s 2025 Sustainability goals comprise the seven goals stated below. after Dow’s 2025 goals were published, the board of Directors of Dow benelux established a taskforce of approximately 20 employees from the various function areas in the benelux.together, these employees have a huge

wealth of knowledge about and expe-rience with technologies, processes and innovation opportunities in the benelux organization. this taskforce is working on operationalizing Dow’s 2025 goals in the benelux. this set of objectives will be adopted during 2016 and form the basis for the 2016 report.

this report focuses on the developments in 2015 in the light of the 2015 goals.

achieving groundbreaking innovations

involving employees to make a difference together

Development of a blueprint for sustainability

promoting a circular economy

Valuing nature promoting confi-dence in chemical technology

Global top level operational performance

Page 12: 2015 SuStainability RepoRt - Dow - Duurzaam · report year, as part of the sale of a section ... Dow 2015 Sustainability Report 3 Contents a biRD’S-eye View oF Dow 5 - Dow benelux

Dow 2015 Sustainability Report our strategy12

our approachin its pursuit of a permanent improvement in its reporting practices, Dow carried out an assessment of the materiality of sustainability at group level. to this end, a large-scale and comprehensive survey was held in 2013 among all relevant stake-holder groups. they indicated what they believed were important issues for Dow. as well as this impact analysis among stakeholders, Dow is also analyzing the most important issues and priorities. this is based on permanent input from globally operating functional teams including public affairs, Government affairs, Regulatory affairs and Dow’s issue & policy management. this sustainability assessment resulted in the following materiality matrix. SiGniFiCanCe oF iMpaCt

iMpo

Rta

nC

e Fo

R St

aK

eHo

lDeR

Sa

nD

tH

eiR

DeC

iSio

nS

leiDenD in

pRoDuCtVeiliGHeiD

DuuRZaMe Supply

CHain

Breakthroughs

in gloBal

challenges

Water

sustainaBle

chemistry

successful

relationship With

the local community

bioDiVeRSity &

eCoSySteMS

climate

change

safety

local protection

of safety,

the environment

& energy

SuStainable

aGRiCultuRe

CoMMeRCial poliCy

HiGH

HiG

H

VeRy HiGH VeRy

HiG

H

MateRialiteitSMatRix

Page 13: 2015 SuStainability RepoRt - Dow - Duurzaam · report year, as part of the sale of a section ... Dow 2015 Sustainability Report 3 Contents a biRD’S-eye View oF Dow 5 - Dow benelux

Dow 2015 Sustainability Report our strategy13

Dow benelux in 2015 2015 was an extremely productive year for Dow benelux. Many plants operated at maximum capacity and improved their production record. nevertheless, total production volume fell. this was because of the major shutdown at cracker 3 in the first quarter.

the production has a significant impact on our footprint regarding such things as energy consumption, water consumption and the emission of substances in the surrounding area. appendix 2 gives an overview of the most important data for all Dow benelux product locations.

the terneuzen production was also in-fluenced by the october 5, 2015 transfer of the Cumene plant to olin Corporation. this was a consequence of Dow’s strategic decision to sell a substantial part of the chlor-alkali products. Cumene formed part of this section of Dow’s business portfolio.

pRoDuCtion VoluMe benelux SiteS (in Mton x 1000)

2014 2015

terneuzen (nl) 5578 5284Delfzijl (nl) 129 145tertre (be) 70 74Zwijndrecht (be) 7 9Total 5783 5512

our sustainability calendar2015 was the final year of Dow’s 2015 goals. this was a period in which Dow experienced significant changes; changes that also influenced Dow benelux and particularly by Dow terneuzen. From a site with 23 Dow plants in 2005, terneuzen became an industrial park. it is an industrial park in which Dow operates 16 plants, but in which various other independent businesses also operate: trinseo, olin and MasChem b.V.

an overview of our sustainability calendar and the results is given below. the compo-nents of the overview correspond with the chapters in this report. these chapters give further clarification regarding the 2015 results and the final results of the 2015 goals.

the major shutdown of cracker three took place in the first quarter of 2015. it was the first shutdown in nine years of operating this cracker.

Page 14: 2015 SuStainability RepoRt - Dow - Duurzaam · report year, as part of the sale of a section ... Dow 2015 Sustainability Report 3 Contents a biRD’S-eye View oF Dow 5 - Dow benelux

Dow 2015 Sustainability Report our strategy14

SaFe FoR people anD SuRRounDinG aRea

enViRonMent

Kpi’s Goal achieved in 2015 Statusour focus

ouR SuStainability CalenDaR: oVeRView oF GoalS anD ReSultS

Personal safetySafety incidents expressed as injury & illness rate

number of process safety incidents

Safe environmentnumber of incidents expressed as lopCs (spills > 50 kg)

Compliance with all legal and regulatory demands

Emissionsemissions of substances into the air

Reducing Co2 emissions (scope 1 and scope 2)

WasteReducing the amount of waste processed externally, plus incineration (flare losses) improving energy efficiency

75% improvement in 2015 compared to 2005 (0.08)

Maintain at 0

Maximum of 4

Maximum of 3 compliance issues

in 2015, 30% reduction in VoC, priority emissions and nox compared to 2005

in 2015, 10% reduction in greenhouse gas emissions intensity compared to 2005

Keep absolute scope 1 and scope 2 emis-sions below 2006 level

15% reduction compared to 2005

0,18

1 process safety incident

3 spills, best result ever

the number of issues reduced significantly over the years. there was only 1 violation in 2015

over 30% reduction in VoC (-40%) and priority emissions (-80%).

For nox less than 30% reduction in 2005 - 2015 (-12%)

-0.3% compared to 2005

absolute emissions reduced by 20% compared to 2006

overall reduction of 43% achieved

Page 15: 2015 SuStainability RepoRt - Dow - Duurzaam · report year, as part of the sale of a section ... Dow 2015 Sustainability Report 3 Contents a biRD’S-eye View oF Dow 5 - Dow benelux

Dow 2015 Sustainability Report our strategy15

providing a distinct and recognizable contribution

Contributing to sustainable chemistry and processes

Minimizing our water footprint

open dialog with the local community and most important stakeholders

Contributing to local economy and quality of the living environment

energy savings in own processes and/or chain in 2015 of at least 15% compared to own energy consumption in 2005*

in 2015, 25% improvement of energy intensity compared to 2005

examples of innovations in which Dow benelux is leading

Contribution is measurable thanks to global recognition of the benelux contribution

Closure of water cycle in 2020; alter-native for approximately 5 million cubic meters of drinking water collection

acceptance by our local environment

providing a proportional contribution

20% energy savings, primarily in the chain

energy intensity increase of 2.7% compared to 2005

Rheodata platformenergy and water innovations

terneuzen share in Dow awards for in-novation, technology, development and waste reduction

75% of 2020 goals achieved. on course to achieve the remaining 25% in 2020

positive image from 2014 Community Survey

investments in quality of local community through donations and contribution to good education: anniversary donation of 500,000 euro for technology education

eneRGy

innoVation

wateR

MaKinG a SuStainable DiFFeRenCe

* Goal only for Dow Terneuzen

`

ouR people

goal met2015 goal not met

Page 16: 2015 SuStainability RepoRt - Dow - Duurzaam · report year, as part of the sale of a section ... Dow 2015 Sustainability Report 3 Contents a biRD’S-eye View oF Dow 5 - Dow benelux

Dow 2015 Sustainability Report our strategy16

the challenges a chemical company like Dow faces nume-rous challenges. the following are the most significant.

european market. the majority of products produced by Dow benelux are exported to other european countries. the european market for chemical products is not a growth market in principle. in 2015, this market remained under pressure due to adverse exchange rates and strong price fluctuations. the effect of the strong fall in oil prices since 2014 has not only had a favorable effect on the costs of raw material purchase, it also leads to increased price pressure and more market uncertainty. Competitive position. Dow’s competitive position has been under pressure for years due to the relatively unfavorable position of raw materials in europe. this adverse com-petitive position makes it especially difficult to attract funding for new investments. after all, on a global level, the primary focus is on which investment yields the highest returns. Furthermore, the chemical sector in the netherlands faces a relatively high regulatory burden. this entails additional costs and further reduces the willingness to innovate and invest.

european energy policy. europe does not have a coherent energy policy. at the same time, europe imposes standards for the generation and production of sustainable energy. as a result, every country approaches the transition towards more sustainable energy in a different manner. this creates an uneven playing field, resulting in competitive disadvantages. it also creates a misrepresen-tation of matters in the debate on a transition towards a more sustainable economy. the emphasis too often lies on the development of alternative energy, renewables and a switch to biobased. in reality, we should use all pos-sible energy sources, including fossil energy. this is particularly true in the chemical sector, which requires sufficient and affordable energy in order to arrive at innovations that bring us closer to a sustainable future.

transition and innovation. Much attention is devoted - and justifiably so - to the social necessity of a transition to a more sustainable economy. Companies like Dow play a key role in this, but cannot go it alone. numerous changes also require public investments in order to bridge the gap between what is technically possible and what is economically feasible. public funding for research and development is scarce, highly fragmented and usually not applicable to innovation projects with genuine potential.

administration, supervision and managementthe board of Directors of Dow benelux b.V., which is responsible for general manage-ment, is comprised of the following mem-bers: anton van beek* (chairman), arnd thomas (also director of the site in terneuzen) and pierre taalman. Marc Sloot* serves as secretary.

the Supervisory board of Dow benelux b.V. supervises the directors of the company and advises the board of Directors. this board was comprised of the following members on 31 December 2015: Gerard van Harten (chairman), brian ames and noelle walsh.

in addition to this formal structure for the benelux, the benelux is also part of the Dow company matrix structure. this means that employees are part of the geographically organized businesses or functions, but are also often affiliated with a regional organi-zation, as is the case with the benelux. the benelux Country leadership team, under the direction of anton van beek, is responsible for strategy development and implementa-tion within the broader framework of Dow eMeai. as president of Dow benelux, anton van beek is also a member of the eMeai leadership team.

the terneuzen management is headed by the general director of the site, arnd thomas. as Vice president of operations, he is also responsible for all production and operational activities in the benelux. three functional and multidisciplinary teams fall under his responsibility: the people Success leadership team (pSlt), the Responsible Care leadership team (RClt) and the Site Services leadership team (SSlt). *also manager of belgian sites, together with other officials.

Page 17: 2015 SuStainability RepoRt - Dow - Duurzaam · report year, as part of the sale of a section ... Dow 2015 Sustainability Report 3 Contents a biRD’S-eye View oF Dow 5 - Dow benelux

Dow 2015 Sustainability Report Safety17

SaFetySafety always comes first at Dow

Page 18: 2015 SuStainability RepoRt - Dow - Duurzaam · report year, as part of the sale of a section ... Dow 2015 Sustainability Report 3 Contents a biRD’S-eye View oF Dow 5 - Dow benelux

Dow 2015 Sustainability Report Safety18

SaFety alwayS CoMeS FiRSt at Dow. we HaVe a leaDinG poSition in inDuStRy ReGaR-DinG SaFety peRFoRManCe anD tHe DeVelopMent oF pRoGRaMS tHat aiM to ContinuouSly RaiSe SaFety to a HiGHeR leVel.

the safety of employees working at the site and surrounding area is always top priority. the chemical industry in the netherlands operates at a high safety level compared to other sectors. Dow is among the frontrunners in the chemical industry. within Dow, the benelux sites have also been among the safest in the world for many years. this is the result of a consistent policy, enforcement of high quality standards and daily investments in safety. our excellent safety performance is also due to the fact that safety is an integral part of our company culture. it is something we work on each and every day, since safety is never absolute. we use programs, inspections and training for our employees, as well as contractors and sup-pliers, to continuously pursue our ultimate goal: year-in, year-out production without any accidents or process safety incidents.

Dow benelux, unfortunately ended the 2015 goal period with a disappointing result. this was caused by various conse-cutive safety incidents at Dow terneuzen, particularly in the first half of the year. in almost all these incidents, personal beha-vior was the main cause. Carelessness, wanting to finish something quickly at a time at which concentration was already diminished. this is the kind of behavior that results in near misses, but actually resulted in incidents in 2015. after the fifth consecutive incident the manage-ment decided to introduce a so-called ‘safety stand down’. all departments were obliged to set work aside for one hour; an hour in which dialog started regarding the safety situation and the safety culture. an outcome of these discussions was that each department offered suggestions and improvement points. this stand down resulted in many valuable ideas, suggestions and improvement points regarding safe behavior in the workplace, as well as sug-gestions for improving workplace commu-nications. one of the subsequent actions was an assessment into the safety culture, implemented by a team of Dow experts from other regions. all other benelux sites achieved excellent safety performance; in Delfzijl, tertre and Zwijndrecht there were no personal safety incidents at all. For Zwijndrecht, 2015 was the third consecu-tive year without personal safety incidents.

process safety process safety refers to the management of potential risks of damage to people and the environment. an incident qualifies as a process safety incident if it involves a disruption of the process, resulting in an explosion or fire that causes damage of more than $25,000, and/or an accident resulting in absenteeism, and/or emissions of a chemical substance above a specific threshold value. there was a leak at the lHC in February 2015 that qualified as process safety incident.

The incident in 2011 occurred in Delfzijl. The other process safety incidents occurred in Terneuzen.

pRoCeSS SaFety inCiDentS 2005-2014

‘05 ‘06 ‘07 ‘08 ‘09 ‘10 ‘11 ‘12 ‘13 ‘14 ‘15

3 3

1

2

0

1

0 0

11

DeVelopMent oF peRSonal SaFetyall SiteS inCluDinG ContRaCtoR eMployeeS 2005-2014

Accident absenteeism index: accidents per 200,000 hours worked

Goal: 0,08

‘05 ‘06 ‘07 ‘08 ‘09 ‘10 ‘11 ‘12 ‘13 ‘14 ‘15

0,290,32

0,28

0,16

0,100,14 0,14

0,11

0,000,05

0,18

1

Page 19: 2015 SuStainability RepoRt - Dow - Duurzaam · report year, as part of the sale of a section ... Dow 2015 Sustainability Report 3 Contents a biRD’S-eye View oF Dow 5 - Dow benelux

Dow 2015 Sustainability Report Safety

Safe environmentevery spill or wastage of product greater than 50 kilos that does not qualify as a process safety incident, qualifies as an lopC. the leakage in itself does not have to be hazardous, as is often the case since the process provides for a safe collection of any leakages. liquid products, for example, are collected in concrete tanks. lopC is therefore also an indicator of how well we manage our process in order to avoid damage to people and the environ-ment. the 2015 goal for reducing leakages - maximum of 4 and a reduction of 75% compared with 2005 - was already achieved in 2012. in 2015 we achieved the best result in this period and terneuzen achieved an absolute record with just 1 spillage. two spillages occurred in Delfzijl.

Compliance

a large chemical complex like Dow in terneuzen has to comply with 400 diffe-rent laws and regulations. Some of these are rules, decisions and regulations based on Dutch legislation, but there is a lot of legislation based on european decrees. Dow also has its own global standards and requirements. in essence, all of these laws, rules and regulations are aimed at ensuring the safest possible operation of the plants with minimum impact on the environment and surrounding area. all of this is specified in a permit enforced by the government. but Dow also has its own monitoring system of self-assessments and audits.

to comply with the increasing requirements of government inspections, extra measures have been introduced to improve Dow’s comprehensive and globally implemented management system; the operating Discipline Management System (oDMS). it is important that this Safety Management System is in line with the requirements that flow from national legislations and regulations.when complete, this lays the foundation for system-oriented monitoring, a moni-toring model in which the government gradually lets Dow use its own monitoring and control system and only carries out minimal government inspections.

For now, the integration of all requirements and systems into one cohesive safety management system demands some additional effort. also because of additional adaptations in the organization of the terneuzen site. the shortcomings in the system were highlighted during a bRZo inspection in 2015, which led to a formal warning in 2015. the required actions have been set in motion, in consultation with the government.

As big contractors, we are true Dow partners regarding maintenance and safety at the site. We share experiences, knowledge and solutions and keep each other focused.” “Dow challenges the Associated Maintenance Partners (AMP) to search continuously for ways to make the work as safe as possible and, where possible, minimize our environmental impact.Dow is a real inspiration for us in this

Jack van der Staal, ENGIE Services Sou-

th, Terneuzen and Chair of Associated

Dow Maintenance Partners (AMP) leaks

(LOPCs) since 2005, Terneuzen

leaKaGeS (lopCS) SinCe 2005, teRneuZen

‘05 ‘06 ‘07 ‘08 ‘09 ‘10 ‘11 ‘12 ‘13 ‘14 ‘15

2926

20 21

16 17

10 10

46

3

5

3

‘08 ‘09 ‘10 ‘11 ‘12 ‘13 ‘14 ‘15

1415

10 10 10

1 1

6

10

3

2

5

1

3

3

3

2

1

5

3

1

2

1 1 1

CoMplianCe at Dow teRneuZen

Permit exceedance Indication with recovery deadline Violation Fine

The figures shown here are based on data reported by Dow Benelux in the Dow reporting system for EH&S inci-dents (GIRD). These have been verified by internal EH&S audits carried out by the Dow auditing organization.

In Delfzijl, there was one permit exceedance during the years 2010, 2012 and 2013.

11

Goal: 4

Goal: 3

Page 20: 2015 SuStainability RepoRt - Dow - Duurzaam · report year, as part of the sale of a section ... Dow 2015 Sustainability Report 3 Contents a biRD’S-eye View oF Dow 5 - Dow benelux

Dow 2015 Sustainability Report environment20

enViRonMentour impact on the environment always has our full attention

Page 21: 2015 SuStainability RepoRt - Dow - Duurzaam · report year, as part of the sale of a section ... Dow 2015 Sustainability Report 3 Contents a biRD’S-eye View oF Dow 5 - Dow benelux

Dow 2015 Sustainability Report environment21

tHe iMpaCt oF ouR inDuStRy on tHe enViRonMent iS alwayS a FoCal aRea oF ouR SuStainability poliCy. it ConCeRnS tHe eFFeCtiVe uSe oF Raw MateRialS anD aDDitiVeS anD tHe ReDuC-tion oF waSte, wateR ConSuMption anD eneRGy ConSuMption. in tHe 2005 - 2015 peRioD tHeRe waS a lot oF FoCuS on liMitinG eMiSSionS into Soil, wateR anD aiR aS FaR aS poSSible. we weRe SuCCeSSFul in SiGniFiCantly ReDuCinG eMiSSionS tHRouGH a VaRiety oF MeaSuReS.

emissionsthe reduction in the emission of substances into the water and air has the continuous attention of industry. this is driven by legislation, permit granting and enforce-ment on the one hand, and the implemen-tation of a large number of initiatives that have strongly reduced emissions on the other. the environmental Report, which is drawn up annually and discussed with the regulatory authorities, and the Co2 emissi-ons Report serve to monitor the emissions policy1. below is an overview of the results from the 2015 report.

VoC emissions VoC is the collective term for volatile organic compounds. these compounds, primarily ethylene, methane and other hydrocarbons, are released into the at-mosphere in various ways.

2015 saw the end of the downward trend for VoC emissions that started in 2012. a combination of flaring during the start-up and shutdown of cracker three prior to and after the major shutdown and more leakage losses from monitoring and fol-low-up, resulted in higher VoC emissions.

nevertheless, there was a 40% reduction in Volatile organic Compounds (VoCs) throughout the entire 2005-2015 period.

priority emissions part of the VoC emissions in terneuzen concern priority emissions of priority sub-stances. these are substances that are hazardous to health such as ethylene oxide (eo), benzene and acrylonitrile. they are primarily caused by breathing and working losses from storage tanks and by leakage losses. Such emissions have been reduced by 80% since 2005. a major step was taken in 2009 with the eo-only project. this eliminated the cooling system

emissions.Decommissioning the eb/Styrene 3 also contributed to a further reduction. the waste gas emission treatment system at the ship and rail loading also resulted in a reduction of these emissions.

nox emissions nox are nitrogen oxides that are released during incineration processes; they con-tribute to air quality problems and the acidification and eutrophication of the environment. between 2005 and 2015 nox emissions in terneuzen were redu-ced by 12% (from 1,909 Mton in 2005 to 1,688 Mton in 2015). investments in recent years have mainly been made in rebuilding the cracker 1 furnaces with low-nox burners. these result in cleaner incineration. all of the furnaces have now been equipped with these new burners. nox emissions fell slightly in 2015.

VoS eMiSSion Dow teRneuZen (in Mton)

1200

1000

800

600

400

200

0‘05 ‘06 ‘07 ‘08 ‘09 ‘10 ‘11 ‘12 ‘13 ‘14 ‘15

Met

RiC

to

nS

1The emission and waste data were validated at depart-ment, site and business level via the internal GEI (Global Emission Inventory) reporting system. The government conducted an external control of emissions and externally processed waste data. The CO2 report was verified by DNV GL.

2005 2015 Delta compared to 2005

terneuzen 996 599 -40%

Delfzijl 1,9 1,6 -16%

tertre 0,0 0,1

Zwijndrecht 31 20 -35%

Total Bnlx. 1029 621 -40%

VoS eMiSSionS benelux (in Mton)

Met

RiC

to

nS

40

35

30

25

20

15

10

5

0‘05 ‘06 ‘07 ‘08 ‘09 ‘10 ‘11 ‘12 ‘13 ‘14 ‘15

Dow teRneuZen pRioRity eMiSSionS 2005-2015

Goal

Goal

Page 22: 2015 SuStainability RepoRt - Dow - Duurzaam · report year, as part of the sale of a section ... Dow 2015 Sustainability Report 3 Contents a biRD’S-eye View oF Dow 5 - Dow benelux

Dow 2015 Sustainability Report environment22

a disappointing Denox performance meant that the fall was less than expected. More frequent use of our own boiler for gene-rating steam instead of purchasing this from elSta, also resulted in higher nox emissions at Dow.

in Delfzijl, nox emissions increased in 2015; from 6.7 tons in 2014 to 6.8 tons, which coincided with higher production volumes. in the 2005-2015 period nox emissions increased here by 2%. in tertre and Zwijndrecht, there were no nox emissions

Greenhouse gas emissions (Co2)Greenhouse gas emissions are emissions that cause the heat-up of the planet. Greenhouse gas emissions are expressed in Co2 equivalents because Co2 is by far the most important contributor to greenhouse gas emissions. Co2 is released during incineration processes. Co2 is also formed during the production of eo and, in smaller amounts, during the biox water

nox eMiSSionS at Dow teRneuZen 2005 - 2015

purification process, as well as in the pro-duction of Styrofoam until 2012.

the following graph shows the total greenhouse gas emissions at Dow in terneuzen. these emissions consist of direct emissions, also called scope 1 emis-sions, which are released during production processes. the gray section shows the indirect or scope 2 emissions. these result from the generation of steam and power for Dow in the adjoining heat and power station. total greenhouse gas emissions in 2015 were more than 3.04 million tons, a reduction of more than 19% since 2006, the 2015 reference year. this is 22% lower than in 2005. the closure of the eb/Styrene 3 plant in 2008 also contributed to this.

as can be expected, the Co2 emissions in Delfzijl are only a fraction of those in terneuzen. the emissions released here are combustion emissions from the com-bustion installations, such as the furnaces and boiler. in 2015, the emissions increased by 1% compared with the previous year. as the production increased by 12%, this means a reduction in greenhouse gas emission intensity of almost 6%. this is largely the result of lower gas consumption.

the relative emissions of greenhouse gases were 1.3% lower in terneuzen than in 2014. Compared with 2005 the emissions per ton of produced product did, however, increase by 1.4%. this can primarily be attributed to the previously mentioned closure of the eb/Styrene 3 and eG plant in 2008. Since the greenhouse gas emission intensity at these plants was lower than average, the closure of these plants has resulted in an increase in the average intensity. Compared with 2008, the average intensity has, however, decreased

2005 2015 Delta compared to 2005

terneuzen 3126 2526 -19%

Delfzijl 11,9 12,0 +1%

tertre 0 0

Zwijndrecht 0,019 0,012 -36%

Total Bnlx. 3138 2538 -19%

bRoeiKaSGaSeMiSSionS benelux, SCope 1 (in Mton Co2 eq x 1000)

by almost 9%. apart from the focus on process energy efficiency, the intensity was mainly improved through ongoing improvements to the eo catalyst. this converts ethylene more selectively into eo so that less Co2 is formed. in addition, the cracking of increasingly lighter input also produces more and more hydrogen. the reuse of this within our own plant and in the elSta heat and power plant, which produces steam and electricity for Dow, has contributed to reducing Co2 emissions and, with this, reducing the intensity.

Note:The scope 1 emissions were obtained from Dow’s Global Emissions Inventory (GEI), while the scope 2 emissions are estimated by deducting from the total scope 2 emissions, as allocated to Dow by Elsta, those emissions related to steam and power consumption by Trinseo and Olin. This was done for all years.

4500

4000

3500

3000

2500

2000

1500

1000

500

0‘05 ‘06 ‘07 ‘08 ‘09 ‘10 ‘11 ‘12 ‘13 ‘14 ‘15

kt C

o2 e

q

Scope1 Scope2

GReenHouSe GaS eMiSSionS at Dow teRneuZen 2005 - 2015

Goal

2.500

2.000

1.500

1.000

500

0

‘05 ‘06 ‘07 ‘08 ‘09 ‘10 ‘11 ‘12 ‘13 ‘14 ‘15

Met

RiC

to

nS

Goal

0,70

0,60

0,50

0,40

0,30

0,20

0,10

0,00‘05 ‘06 ‘07 ‘08 ‘09 ‘10 ‘11 ‘12 ‘13 ‘14 ‘15

mt C

o2 e

q/m

t pro

duct

intenSity oF GReenHouSe GaS eMiSSionS at Dow teRneuZen (SCope 1 anD 2)

The production data used to calculate intensity are derived from Dow’s Global Emissions Inventory (GEI). The definition for generating data in this system differs for some components from how it is reported to the government.

Goal

Page 23: 2015 SuStainability RepoRt - Dow - Duurzaam · report year, as part of the sale of a section ... Dow 2015 Sustainability Report 3 Contents a biRD’S-eye View oF Dow 5 - Dow benelux

Dow 2015 Sustainability Report environment23

wastea waste reduction of 45% was achieved in terneuzen during the 2005–2015 period. this was primarily the result of reducing flare losses in the first half of the goal period. the incineration of process streams via the flare actually qualifies as waste in the Dow definition.

that is not the case for the government. the government considers waste to be that which is offered as such externally. the table below shows what is offered for processing and what is reported to the government.

Compared with 2014, transport to external wastewater purification sites has increased. this concerns the problems at the biox, in which rinsing water originating from the shutdown at lHC was transported for further processing.

in 2015 a big waste stream originating from the eo (bleed glycol) was no longer transported as waste but as product.

the diagram below shows how the total offered external waste is divided into various processing methods. the diagram indicates that, in 2015, incineration with energy recovery was still the most important method of waste processing for the Dow waste streams. aside from the special 2015 situation regarding offering rinsing water to an external wastewater purifica-tion plant, reuse is usually a good second option nowadays.

DumpingIncinerationWastewater purificationEnergy recoveryReuse

the amount of waste increased in Delfzijl in 2015 (from 541 tons to 1,132 tons), mainly as a consequence of disposal due to additional maintenance activities on the site. both in Delfzijl and tertre, production increased in the 2005-2015 period by, respectively, 22% and 12%

“As neighbors we give shape to sustai-nability together and share our responsi-bility so that the immediate environment can trust Dow and Indaver to process chemical waste safely and sustainably.”

“Our joint sustainability objective ensures that Dow and Indaver search daily for innovative ways to handle chemical material and waste.”

Louis de Lausnay, Site Manager at

Indaver Gevaarlijk Afval B.V., Hoek

Processing method External (Mton)

Dumping 113

incineration 3.304

wastewater purification 12.648

energy recovery 21.970

Reuse 7.011

Total 45.047

2005 2015 Delta compared to 2005

terneuzen* 101.161 55.292 -45%

Delfzijl 1024 1132 +11%

tertre 1641 2432 +48%

Zwijndrecht 69 54 -22%

Total Bnlx. 103.895 58.910 -43%

* GEI reported figures, in accordance with the Dow definition

waSte benelux (waste in Mton)

*Waste data as reported to the government

Page 24: 2015 SuStainability RepoRt - Dow - Duurzaam · report year, as part of the sale of a section ... Dow 2015 Sustainability Report 3 Contents a biRD’S-eye View oF Dow 5 - Dow benelux

Dow 2015 Sustainability Report environment24

water consumption Dow terneuzen uses approximately 10,000 m3 water from various sources. the site also has a developed system for water reuse. the figure shows the terneuzen water management system.

Surface water use (seawater) 352.307.550tap water (via evides) 10.135.660Groundwater extraction (for cleaning) 48.314Total 362.491.524

2015 wateR ConSuMption (in m3)

Dow teRneuZen wateR CyClein M/j= Million CubiC MeteRS peR yeaR

wateR puRiFiCation at teRneuZen

DeCo wateR plant

CoolinG toweRS

wateR puRiFiCation at Dow

weSteRn SCHelDt

SuRFaCe wateR

DRinKinG wateR

teRneuZen

SpuiKoM

RAINWATER/PuRIFIED WATER“POLISHED” WATERDRINkING/INDuSTRIAL WATERINDuSTRIAL/uRBAN WASTEWATERSALT WATER

5 M/j

5 M/j

3 M/j

ca. 6,8 M/j*

3 M/j

4,5 M/j

0,5 M/j

3,5 M/j

* See waste table on page 25

Page 25: 2015 SuStainability RepoRt - Dow - Duurzaam · report year, as part of the sale of a section ... Dow 2015 Sustainability Report 3 Contents a biRD’S-eye View oF Dow 5 - Dow benelux

Dow 2015 Sustainability Report 25 environment

wastewaterthe overview below displays the various Dow terneuzen wastewater streams in m3.

in 2015, there were again problems with the biological water purification (biox). this resulted in the occurrence of more overflow. in spite of these problems and the 6-week shutdown at lHC, the internal reuse of wastewater increased.

internal water reuse increased somewhat due to addressing legionella contamination, which often led to the stoppage of internal reuse. the installation of a legionella unit at the biox wastewater purification plant should further increase this internal reuse over the coming years.

emissions to water can be expressed in the emission of total organic Carbon (toC) and nitrogen. the report on the amount of these substances in the wastewater provides a more realistic picture of the resident equivalents (eis) used in past reports.

the waste content of discharged waste-water increased somewhat due to persis-tent silt problems in the biox operation and through an increase of the direct overflows from extreme rainfall. the silt problem actually led to a restriction of the hydraulic load on the biox wastewater purification.

Overflow Spui via BIOX-effluent total cooling towers

201020112012201320142015

24.50074.626

5.334141005.658

149.785

833.403881267913.416756.854662.059678.408

6 719.5766 486.5435 388.8926 470.9736 094.0846 248.255

7.577.4797.442.4366.307.6427.241.9276.761.8017.076.448

toC waStewateR in KG tHat iS DiSCHaRGeD into tHe weSteRn SCHelDt

Overflow LHC-3 BIOX-effluent total cooling towers

201020112012201320142015

1.3851.425

678862

599

42.93038.07139.91237.18430.83625.433

129.346113.407

92.73587.451

100.353111.958

173.661152.903132.713124.723131.251137.990

total nitRoGen in KG tHat iS DiSCHaRGeD into tHe weSteRn SCHelDt

Overflow LHC-3 BIOX-effluent total cooling towers

201020112012201320142015

169321

283

17300

19.07512.70010.66112.44910.358

6.848

42.07238.31422.10728.61835.58838.541

61.31651.33532.79641.07045.96345.689

Page 26: 2015 SuStainability RepoRt - Dow - Duurzaam · report year, as part of the sale of a section ... Dow 2015 Sustainability Report 3 Contents a biRD’S-eye View oF Dow 5 - Dow benelux

Dow 2015 Sustainability Report energy26

eneRGyKeep energy costs low

Page 27: 2015 SuStainability RepoRt - Dow - Duurzaam · report year, as part of the sale of a section ... Dow 2015 Sustainability Report 3 Contents a biRD’S-eye View oF Dow 5 - Dow benelux

Dow 2015 Sustainability Report energy27

aRounD one-tHiRD oF Dow’S pRoDuCtion CoStS aRe RelateD to eneRGy uSe. aS an eneRGy-intenSiVe inDuStRy, it iS in ouR beSt inteReSt to Keep eneRGy CoStS aS low aS poSSible.

efficient energy consumption the so-called cradle-to-gate energy consumption for the terneuzen location is around 400 pj. around two-thirds of this is in the form of naphtha and lpG, used as raw materials for the crackers.less than 5% goes to energy storage for the conversion of raw materials into intermediate and end products. incidentally, this is only a small percentage of total conversion energy at the site. Much of the conversion energy is delivered through hydrogen and methane, which originates during cracking and is reused as fuel. the remaining energy is captured as steam and electricity from the neighboring heat and power station. Dow’s total conversion energy was 59.3 pj (lHV) in 2015. energy consumption for transporting the raw materials to the plants and for packaging and transporting products from the site is relatively minor (<1%).

Due to the high energy consumption level, much attention is devoted to energy costs. these are relatively high in europe, which has a negative impact on the competitive strength of energy-intensive companies. the oil price drop in 2015 did not really change this situation. the effect is different in every sector and depends on, among other things, whether or not the price of the products is linked to the price of oil and the development of market demand. as a globally operating company, Dow ex-periences the advantages and disadvantages of the different energy prices worldwide. the advent of shale gas led to a decline in

the costs of energy and raw materials in the united States, making it attractive for industrial investments. Dow also invests in new plants in the u.S. in europe, however, the opposite is the case. Relatively high energy costs make the industry here less attractive, resulting in reduced willingness to invest. this is the situation facing an energy-intensive site like Dow terneuzen.

However, Dow has decided to take over the elsta power plant as of September 2018. in early 2015 an agreement was reached regarding this with the parties in the current partnership; the utility companies Delta, essent and aeS. the gas-powered elsta plant’s combined heat and power system generates a large proportion of Dow’s electricity demands and for this uses part of the hydrogen and methane created through cracking lighter input. this means that the power plant is vital to the Dow terneuzen energy model. in 1998, the collaborating parties reached agreement with a 20-year contract. the contract also foresaw the option for the sale of the power plant to Dow in the event that the partners did not wish to extend the contract or purchase the plant themselves. Dow has now made use of this option.

as energy costs form a large proportion of production costs, Dow terneuzen is attempting to limit energy intensity by limiting energy consumption in its own production processes as much as possible. the graph shows that the intensity in

14000

12000

10000

8000

6000

4000

2000

0‘05 ‘06 ‘07 ‘08 ‘09 ‘10 ‘11 ‘12 ‘13 ‘14 ‘15

Mj /

ton

result goal

teRneuZen eneRGy intenSity aCHieVeD

2015 is almost 3% lower than in 2014. Compared to 2005, the intensity has, however, increased somewhat. this is due

to the closure of the eb/Styrene 3 and eG plant in 2008. Since the energy intensity at these plants was lower than average, the 2008 closure of these plants resulted in an increase in the average intensity. Since then, the intensity has fallen by 5%.

Goal

Page 28: 2015 SuStainability RepoRt - Dow - Duurzaam · report year, as part of the sale of a section ... Dow 2015 Sustainability Report 3 Contents a biRD’S-eye View oF Dow 5 - Dow benelux

Dow 2015 Sustainability Report energy28

the significant improvements in energy efficiency that Dow has achieved since 1990 have largely taken place parallel to capacity expansions or large-scale renova-tions, making it possible to also introduce the latest technology. Such major invest-ments have not been relevant in recent years. without these major investments, possibilities to significantly improve energy efficiency are limited and can only take place in small stages. the reuse of hydrogen and methane created during cracking, means that options for capturing sustai-nable energy and thus improving Co2 intensity are limited. Dow’s contribution therefore focuses primarily on energy savings for customers using our products. an example is the polyalkylene glycols used in synthetic oils that result in a more efficient gear wheel transmission. another example is our “enhanced performance polyethylenes”, ultrathin packaging films that can enable material and energy savings.

2In the Energy Efficiency Plan (EEP), companies establish the measures they plan to implement in the coming period to improve energy efficiency in their own processes and in the chain. The formulation and execution of such a plan and annual progress monitoring are obligations associated with participation in the MEE agreement (Multi-year Agreement for energy-efficient ETS companies).

“No greater ambassador for sustainability than Dow. The open and transparent way in which Dow cooperates on innova-tion in energy transition is inspiring. Dow takes the steps that are needed to make the circular economy a reality.”

“Dow is very strong in mobilizing part-ners and companies regarding sustaina-bility. Dow is a real first among equals in connecting parties, regions and sectors.”

Tjeerd Jongsma, Director Institute for

Sustainable Process Technology

thanks to the combination of all measures - in our own processes and in the chain - we succeeded in meeting the 2015 goal established in the energy efficiency plan for 2013-2016. Dow also achieved its internal goal of saving an amount of energy by 2015 that corresponds to 15% of its total energy consumption in 2005. this saving was over 20% in 2015.

Dow’s role in the transition towards a sustainable energy futureas energy intensive company, Dow benelux is involved in many ways and on many levels - nationally and regionally - in the social dialog regarding a transition to a sustainable, low-Co2 energy future. we see this as a must, but are also convinced that, as chemical industry, we can make a significant contribution towards this tran-sition. Dow benelux is active on various tracks and is working with partners - national, regional and cross-sectoral - on various solution directions. these multi- partner partnerships have resulted in various promising routes and innovation tracks. these sustainable energy innovations will be discussed further in the innovation chapter.

.

80

70

60

50

40

30

20

10

0

-10

-20

‘05 ‘06 ‘07 ‘08 ‘09 ‘10 ‘11 ‘12 ‘13 ‘14 ‘15

pj /

hv

eneRGy SaVinGS at Dow teRneuZen

* PE stands for Process Efficiency measures and CE for Chain Efficiency Measures

Goal

Process Efficiency Chain Efficiency

Page 29: 2015 SuStainability RepoRt - Dow - Duurzaam · report year, as part of the sale of a section ... Dow 2015 Sustainability Report 3 Contents a biRD’S-eye View oF Dow 5 - Dow benelux

Dow 2015 Sustainability Report energy29

energy and Climate policythe energy and climate agendas are closely connected to each other. after all, energy consumption is largely decisive for Co2 emissions. internationally, the goal has been set to limit Co2 emissions to the point that global temperature rises by no more than two degrees, and preferably not more than 1.5˚C. the chemical industry in the netherlands has set itself the goal of achieving a greenhouse gas reduction of 40 percent in 2030 compared to 2005. this places high demands on large-scale energy consumers like Dow.

the third trading period of the european Co2 emissions trading System started in 2013. Characteristic of this new trading period is that the free Co2 rights allocated to companies are based on the performance of the top 10% installations in europe. this means that companies only receive sufficient free rights to cover emissions for the best performing installations. extra rights must be purchased for older instal-lations that are less efficient.

Rights also need to be purchased for emissions associated with electricity gene-ration. Since the total european allocation was higher than the previously established industry ceiling with free emission rights,

the european Commission formulated a correction factor in late 2013 for Member States that must adapt to the free allocation of emission rights. a number of companies, including Dow, submitted an appeal case against this decision to the Dutch Council of State. the companies argued that the correction factor was not determined in the correct manner, leading to fewer rights and, consequently, considerably higher costs. the european Court in luxembourg has now examined the case and judged that the correction factor was not determined in the correct way. the Commission must determine a new cor-rection factor before the start of 2017.

in 2015, however, Dow received financial compensation for part of the emissions associated with electricity generation. this compensation possibility was agreed in the SeR energy agreement. Companies participating in the Mee agreement and that fulfill the associated obligations are eligible for such compensation.

other developments that can have a signi- ficant impact on Co2 costs include the proposed introduction of the Market Stability Reserve. this reserve is intended as a buffer for combating major fluctuations in supply and surpluses in the trading period

that runs until 2030. this has a stabilizing effect, but is also expected to result in a higher price for emission rights. there is also considerable focus on the regulations for the allocation of free emission rights in the trading period 2021-2030. although the Commission previously confirmed that best performers should not be confronted with extra Co2 costs in comparison with other parts of the world - to prevent the industry from moving to regions with less strict climate requirements - this is now however endangered by the drop in the emission cap. if the relationship between the number of auctioned and freely alloca-ted rights is not adjusted before the new trading period, another correction factor will probably be needed, with significant negative consequences for the industry’s competitive position.

Page 30: 2015 SuStainability RepoRt - Dow - Duurzaam · report year, as part of the sale of a section ... Dow 2015 Sustainability Report 3 Contents a biRD’S-eye View oF Dow 5 - Dow benelux

Dow 2015 Sustainability Report innovation30

innoVationthe best in science and technology

Page 31: 2015 SuStainability RepoRt - Dow - Duurzaam · report year, as part of the sale of a section ... Dow 2015 Sustainability Report 3 Contents a biRD’S-eye View oF Dow 5 - Dow benelux

Dow 2015 Sustainability Report innovation31

Dow’S 6,000 Male anD FeMale StaFF aRe aMonG tHe woRlD’S beSt in SCienCe anD teCHnoloGy. tHeiR SCientiFiC inteReSt anD CReatiVity FoRM tHe baSiS FoR innoVationS FoR SuStai-nable SolutionS. it iS tHiS innoVatiVe StRenGtH tHat GiVeS uS tHe ConFiDenCe to leaD in DeVelopinG a bluepRint FoR tHe tRanSition towaRDS a SuStainable SoCiety.

From the benelux, we make an important and distinctive contribution to Dow’s global innovation and growth. we do this with some 140 employees in our own Research & Development departments and with several dozens of technical specialists that are connected to globally-operating technological centers. our researchers and specialists and our university programs that focus on stimulating fundamental and applied research, mean that we have an excellent academic network outside Dow. we have concrete research and exchange programs with the universities of Delft, utrecht, eindhoven, Ghent and leuven, among others.

as well as top scientists, Dow benelux also has the expertise, capacity and networks to lead the development of sustainable solutions. this chapter shows a selection of the innovative internal and external projects and platforms to which Dow benelux made a substantial contribution in 2015.

Research projectsDow Rheodata is a good example of ‘Solutionism’ in practice. this is a software platform for studying the flow behavior of materials, specially developed in this case for Dow’s performance plastics business. it enables our R&D department to gain fast access to experimental rheology data and to use this in simulations of the customer’s process environment. this enables solutions

to be found rapidly for the challenges facing customers and in which rheology plays a significant role, such as in smelting breakage effects, film instability in multi- layer systems and so-called ‘die swell’. but the cooperation goes further.Some customers and machine builders have also been given access to the Rheodata software. together with Dow’s specialists, they simulate various scenarios for Dow’s plastics in their own processes and systems. this creates a closer connection with the customer and a real position at the drawing board. the platform was originally devised and developed within R&D in terneuzen as a consequence of a close partnership between the characterization, materials technology and modeling departments.

another example is the materials research into membranes for fluid separation in which R&D terneuzen plays a leading role. in industrial processes a lot of energy is used in separating components. Membrane technology is one of the most energy- efficient technologies to make specific segregations on an industrial scale. the development of membranes that can withstand extreme process conditions, such as high temperature, acid level or solvent level, contributes directly to energy savings. in this research domain, Dow terneuzen works together with iSpt (institute for Sustainable process technology) in a consortium regarding energy-efficient liquid bulk segregation. Dow is also deve-

loping new stable materials to separate process streams and measurement systems to evaluate and improve membrane per-formance.this research is taking place thanks to the unique combination and partnership between the materials technology, modeling and High throughput Research (HtR) departments, enabling extensive datasets to be delivered and processed.

R&D in terneuzen and the polymer Chemistry Research (pCR) group from the university of Ghent are working together on sustainable coatings within the SuSCoat project (Sus-tainable multifunctional coating resins for scavenging applications). Multi-functional chemicals and plastics that are made via a simple and cost-efficient process has be-come indispensable in answering coating industry demands. that is why a new plat-form is being developed for multi-functio-nal plastics, aimed at bio- based thiolactone chemistry. one of the coating applications that is being investi-gated concerns the capture of hazardous substances such as formaldehyde in the internal environment. this research is being sponsored by the european union within the so-called Seventh Framework program.

Page 32: 2015 SuStainability RepoRt - Dow - Duurzaam · report year, as part of the sale of a section ... Dow 2015 Sustainability Report 3 Contents a biRD’S-eye View oF Dow 5 - Dow benelux

Dow 2015 Sustainability Report innovation32

energy and raw material innovations energy optimization is an important spear-head for innovation for Dow benelux as energy intensive company. we are wor-king on this in various ways.

in the first instance by cooperating with the cluster of companies in the region. to this end Dow took the initiative in 2012 to form the Smart Delta Resources platform (SDR). this is a partnership of eleven energy and raw material-intensive industrial companies in the Delta region. Zeeland Seaports, the province of Zeeland and nV economische impuls Zeeland support this initiative. the participating companies have a joint energy consumption level of around 25% of total Dutch gas energy consumption. this high concentration of energy and raw material-intensive compa-nies and the combination of sectors offers major opportunities for synergy, innovation and joint growth.

a successful example of the cooperation within the Smart Delta Resources platform is the Green Deal Hydrogen Symbiosis that was agreed in March 2016 between Dutch Secretary for Commerce Minister Kamp, Dow benelux, fertilizer multinational yara, bromine producer iCl-ip terneuzen, the province of Zeeland, Gasunie transport Services, impuls Zeeland and Zeeland Seaports. in this project, which will be completed in 2017, Dow, yara and iCl-ip would like to exchange hydrogen via pipe- lines. Dow retains hydrogen as residual

product from the cracking process, while yara and iCl-ip need hydrogen as raw material for the end products. by exchan-ging hydrogen, these companies can sig-nificantly reduce their Co2 emissions and gas consumption. the hydrogen will be exchanged via an existing Gasunie pipeline beneath the Canal at terneuzen. this will run from Dow via iCl-ip to yara. For now, the pipeline is only for incidental use.

HyDRoGen FoR tHe ReGion pRojeCt

Co2 savings of

10,000 tons per year

Reduce road transport

of hydrogen to 80%

Drop in energy consumption

by 0.15 pj per year (approx.

3,000 households)

Page 33: 2015 SuStainability RepoRt - Dow - Duurzaam · report year, as part of the sale of a section ... Dow 2015 Sustainability Report 3 Contents a biRD’S-eye View oF Dow 5 - Dow benelux

Dow 2015 Sustainability Report innovation33

Smart gasanother example of a track being explored in the SDR connection is the provision of an alternative for natural gas through optimizing the existing energy and feed-stock sources and to make this available for companies in the Scheldt-Rhine delta.’ this so-called smart gas concept foresees the optimization of existing lnG streams, in harnessing these streams as source of energy and as feedstock for the naphtha crackers and other industrial users in the Scheldt-Rhine delta. this can take place by splitting lnG and natural gas in a methane and ethane fraction.the concept qualifies as ‘smart’ for various reasons and as a technological breakthrough it is of a ‘game changing’ level. this is dependent on the unique position in this region. in the first place, the unique combination of Zeebrugge, where lnG can be split in an energy- neutral way into an ethane and methane component (by using the cold of lnG from -160 degrees); this advantage does not exist in any other place in europe. Various european deep-sea ports have lnG terminals with access to european gas grids. Some ports have spots for com-pressed natural Gas, but only Zeebrugge can offer both.

when used as raw material, methane is the carbon with the highest hydrogen/

carbon ratio, and thus the lowest Co2 footprint. ethane is potentially an extremely favorable feedstock for steam crackers. the concept thus offers the energy intensive industry the opportunity to switch to ano-ther gas source, which is more efficient and has a lower Co2 footprint.

the concept also offers tremendous potential in the area of gas diversification: if only SDR parties were to switch from Groningen gas to methane, this would result in a 7% reduction in the purchase of Groningen gas.

within the SDR, Dow and Delta and impuls Zeeland have developed the smart gas concept in an initial explorative study. efforts are being made to follow-up this study with additional interested parties. However, we have not yet been successful in organizing the required public involve-ment and financing.

Steel to ChemicalsCross sector and cross-border opportuni-ties and concepts for savings within the participating industries are being explored in various partnerships, such as in the iSpt (institute for Sustainable process technology) and the Smart Delta Resources platform. this led to the creation of a Dow benelux and steel industry platform for the further development of opportunities for the

deployment of carbon-rich residual gases in the steel industry for the production of chemical products. the does not only avoid the emission of Co2 but is also an example of the circular use of carbon-rich raw materials.

Carbon-rich residual gases are a bi-product of steel production. Currently, these residual gases are being used in incinera-tor installations to generate electricity; a necessary step in combating the emission of toxic Co gas as component of these residual gasses. within the platform we are examining ways of capturing and processing the carbon-rich residual gasses, so that they form a syngas that can be converted into a valuable chemical raw material for the chemical industry. this will enable syngas to serve as alternative raw material for the chemical industry and partially replace the use of oil-based raw materials. Dow benelux has developed various innovative technologies that enable the use of syngas as alternative raw material. these technologies are now ripe for demonstration at industrial level (pilot-plant and industrial environment).

“Dow can connect action to strategy like no other. Dow always searches for inno-vative solutions so that it actually works more sustainably in the region. This approach, which Dow calls Solutionism, connects well with the down-to earth nature of Zeeland citizens.”

“Dow has a clear vision on the company’s future and the cooperation in the region. Dow takes its role in the energy transition and circular economy extremely seriously. As region we really benefit from this.”

Ben de Reu, Representative of the

Province Zeeland

Page 34: 2015 SuStainability RepoRt - Dow - Duurzaam · report year, as part of the sale of a section ... Dow 2015 Sustainability Report 3 Contents a biRD’S-eye View oF Dow 5 - Dow benelux

Dow 2015 Sustainability Report innovation34

this innovative concept for value creation of carbon-rich waste streams offers tremen-dous opportunities and has unparalleled potential because it links economic possi-bilities to possibilities for making industrial streams circular and to possibilities for large-scale Co2 reduction. a preliminary analysis of the concept indicates that an avoidance of over 2.3 tons of Co2 per chemical product is possible. with further optimizations and integrations in a ‘full plant’ concept, savings of millions of tons of Co2 per year are within reach. Conside-ring the reproducibility of the technology, there is potential to produce twice the amount of raw materials that are required for global basic chemistry.

there are of course still significant challen-ges on the route to further development of this concept. a demonstration of the technical feasibility in an industrial environ-ment is now in preparation. Many more steps in the Co2 valorization or storage also demand further investigation. the desired synergy between industries demands a joint multi-partner approach. that is why Dow is searching for more partners who can jointly develop this concept further into a technological demonstration and develop scenarios and cross-sectoral and geographic business cases.

the high throughput laboratory in Dow terneuzen. Develop new technology using a lot of important research.

Page 35: 2015 SuStainability RepoRt - Dow - Duurzaam · report year, as part of the sale of a section ... Dow 2015 Sustainability Report 3 Contents a biRD’S-eye View oF Dow 5 - Dow benelux

Dow 2015 Sustainability Report water35

wateRtwo-thirds of our planet consists of water.

Page 36: 2015 SuStainability RepoRt - Dow - Duurzaam · report year, as part of the sale of a section ... Dow 2015 Sustainability Report 3 Contents a biRD’S-eye View oF Dow 5 - Dow benelux

Dow 2015 Sustainability Report water36

two-tHiRDS oF ouR planet ConSiStS oF wateR. yet tHe woRlD FaCeS a CHRoniC SHoRtaGe oF SuFFiCiently aVailable FReSH wateR. expeCtationS aRe tHat tHiS pRobleM will be in-CReaSinGly exaCeRbateD. Dow teRneuZen playS a pioneeRinG Role in SettinG tHe aGenDa oF inDuStRial wateR aS paRt oF tHe entiRe wateR CHain anD in tHe joint DeVelopMent oF SolutionS.

Dow terneuzen now has 10 years’ experi-ence in innovative projects and industrial water management. this experience has resulted in a model for integrated water management that applies within and out-side Dow as an example of public-private partnership solution development. in other words; the partnership in which Dow’s

water model was developed is an example of how Dow wishes to play a leading role in developing a blueprint for sustainable developments. it is also an example of successful cooperation in transferring from a linear to a circular process. our develop-ment and experience in water management also gives us confidence in the role we

can play as Dow benelux in promoting a circular economy.

the following infographic summarizes 10 years of success in industrial water management.

tHe CHallenGe

industrial requirement

Dow terneuzen consumes 60,000 m3 per day

transport across 120 km

livestock farming

agriculture

Risk of salinization

tHe Solution

tHe ReSult

Dow

terneuzen

evides industry water

Scheldestromen District water

board

the Goal: by 2025

3000

0 m

3 w

ater

pe

r da

y

aDVantaGeS

Co2 emissions: 60,000 tons per year

energy costs: 95% reduction

Dem

iner

aliz

atio

n

Rec

ycle

Household wastewater

industry water

belgian polder water

75% reuse for industry purposes

Page 37: 2015 SuStainability RepoRt - Dow - Duurzaam · report year, as part of the sale of a section ... Dow 2015 Sustainability Report 3 Contents a biRD’S-eye View oF Dow 5 - Dow benelux

Dow 2015 Sustainability Report water37

together with our partners - evides, the Municipality of terneuzen and the Schelde- stromen District water board - we have been successful in developing a system that currently provides almost 75% of Dow terneuzen’s freshwater requirements. the partnership has now been expanded and we are working on technological solutions within three research platforms so that by 2025 we will no longer need to use water from the biesbosch for industrial purposes; the biesbosch being the primary source for drinking water in the South west of the netherlands. this concerns the Robust water system, e4 water and water nexus.

Robust water system at Dow’s initiative and with provincial support through co-financing, 17 parties entered into a public–private partnership in 2010. together they examined opportunities and possibilities in terms of water in the Zeeland–Flanders Canal Zone. an integral approach was used to determine the extent to which industry, agriculture, nature, culture, recreation, tourism and the urban area can profit from one and the same water system. the resulting concept, entitled the “Robust water System”, aims to convert threats into opportunities with added value for the region. Furthermore, the system an-ticipates future developments, such as drier summers and wetter winters. the Robust water system aims to stimulate the region’s resilience and vitality.

the platform, which is now led by the province of Zeeland, has identified 60 projects with a certain priority for improving water manage-ment. one of these is recycle the seepage, municipal waste and polder water currently flowing into the western Scheldt into indus-trial water. a wetland will be established in a polder close to Dow as pilot for this project.

e4 water this is a european consortium focusing on the sustainability of water management within the european chemical industry. in one of the case studies, Dow is leading the development of mild desalination treatments. to this end, a pilot project was launched in 2013 at the evides water plant neighboring the Dow grounds. the use of this mild desalination technology makes it possible to desalinate various types of brackish water from the immediate surroundings into reusa-ble fresh water. the challenge is to optimize this process so that desalination is a lot more affordable and, consequently, can yield cost savings for Dow as well. in addition to the technical aspects, the use of alternative water sources also has consequences for the landscape. by using natural systems and constructing a “green” infrastructure, the brackish water is collected, buffered and pre-purified prior to the mild desalination treatment, which can benefit the landscape’s appeal.

water nexus this initiative entails a broad research pro-gram compiled jointly by the government (Stw and the Ministries of economic affairs and infrastructure & the environment) and by industry. More than twenty partners, in-cluding wageningen university, the Deltares knowledge institute, Shell and Dow have combined forces and research efforts in order to find an integral solution for remo-ving micropollutants from a brackish water

Het Goalno more drinking water being used for industrial use at Dow terneuzen

2000 2015 2020 2025

75% hergebruik closure of the technological gap

implementation

environment and to integrate this regionally in a green water infrastructure. the goal is to carry out testing in terneuzen since the environment here is already well defined and the necessary infrastructure available. water nexus will help Dow develop and implement on a small scale the final crucial steps in the closure of our water cycle. the research started in 2015.

pRojeCtS anD Multi-paRtneR ConCeptS

Robust water system

broad coalition focusing on solutions in (existing) green infrastructure

water nexuS

salt/fresh modeling and new technology development Stw and Ministries of infrastructure & the environment project, led by wuR

e4 water pilot

Development of mild desalination treatments on a commercial scale

Page 38: 2015 SuStainability RepoRt - Dow - Duurzaam · report year, as part of the sale of a section ... Dow 2015 Sustainability Report 3 Contents a biRD’S-eye View oF Dow 5 - Dow benelux

Dow 2015 Sustainability Report Sustainable difference38

SuStainable DiFFeRenCewe celebrated Dow terneuzen’s 50th anniversary in 2015

Page 39: 2015 SuStainability RepoRt - Dow - Duurzaam · report year, as part of the sale of a section ... Dow 2015 Sustainability Report 3 Contents a biRD’S-eye View oF Dow 5 - Dow benelux

Dow 2015 Sustainability Report Sustainable difference39

we CelebRateD ouR 60 yeaRS oF SuCCeSS in tHe benelux anD Dow teRneuZen’S 50tH anniVeRSaRy in 2015. tHiS SuCCeSS iS Due to ouR GooD CoopeRation witH all ouR StaKeHolDeRS.

anniversary year2015 was a memorable anniversary year. Main ingredients: a huge party for all employees in terneuzen in May (and a party for employees at Dow belgium, which was also established 50 years ago), a party with Zeeland Flanders residents in terneuzen city center and an anniversary symposium for our customers and other external stakeholders, in the presence of King willem alexander.

prince bernhard opened the Dow terneuzen site in 1965. He did this in a symbolic and original way for that time, using a telex device. He used this to connect with the Dow head office in Midland in the united States. King willem alexander opened the new Dow safety center on november 4, 2015. He did this by connecting with Dow in nigeria; the final link in the network of connections combined in the Dow terneuzen Safety Center.

Page 40: 2015 SuStainability RepoRt - Dow - Duurzaam · report year, as part of the sale of a section ... Dow 2015 Sustainability Report 3 Contents a biRD’S-eye View oF Dow 5 - Dow benelux

Dow 2015 Sustainability Report Sustainable difference40

Cooperation and dialogDow feels very strongly about good con-sultation with, and the close involvement of all stakeholders. this keeps us focused and enables us to change direction when necessary. Cooperation and dialog take place with a very wide range of stakeholders.

inVolVeMent aMonG StaKeHolDeRS

GoVeRnMent

eMployeeS

loCal ReSiDentS

SupplieRS anD SeRViCe pRoViDeRS

paRtneR CoMpanieStRaDe

aSSoCiationS

ReSeaRCH anD eDuCation

Contact with the communityDow actively invests in the local community in which its production takes place. we want to act as a good neighbor and to be viewed as such. this is also explicitly in-cluded as a goal in Dow’s 2015 corporate sustainability goals. Having an active and

involved feedback group made up of local residents is considered essential. For several years now, Dow terneuzen has approached the feedback function in a different manner. this is also related to recognition of the fact that today’s information society demands specific communication tailored to the target group. the establishment of the online platform, DowDuurzaam.nl (sustainable Dow) is also in keeping with this development. the level to which our presence is accepted and valued by the local communities was evaluated at various points in the 2005-2015 period. in 2010 this was evaluated in an international survey. Dow also conducted a broader and more specific community survey in 2014. Such surveys are not repeated annually.

the limited sampling that can be made in the community means that this would have little merit.

the most important barometer for the community’s appreciation was in 2015; Dow terneuzen’s 50th anniversary. all the anniversary activities were also viewed as celebration for and with the local commu-nity. this was very successful, as is shown from the many reactions to the anniversary campaign and final celebration on october, 10 in the center of terneuzen. Some 10,000 visitors helped to make this a real family celebration. as gift to the community, Dow handed over a check for 500,000 euros for improvements to technology education in Zeeland-Flanders.

Page 41: 2015 SuStainability RepoRt - Dow - Duurzaam · report year, as part of the sale of a section ... Dow 2015 Sustainability Report 3 Contents a biRD’S-eye View oF Dow 5 - Dow benelux

Dow 2015 Sustainability Report Sustainable difference41

economic impactDow has an economic impact on its sur-roundings through its own expenditures, such as salaries and purchasing (see table). our activities enable us to create economic activity and therefore jobs, for example, at our suppliers and subcontractors. nevertheless, it can be said that Dow’s economic impact in the benelux is relatively large. every Dow job at a production loca-tion is estimated to create three to four indirect jobs.

net turnover for the Dow 58,1 48,7 Chemical Company (in billions of dollars)

net revenue for Dow 1,8 1,6benelux (in billions of euros)*

Capital investments 41 42 (in billions of euros)

Salaries 141 159incl. social insurance (in millions of euros)

Depreciation and 76 62amortization (in millions of euros)

expenditures to third parties 414 412in the netherlands (all entities)**

(in millions of euros)

Donations 237.390 335.500(amounts actually donated, in euros)

2014 2015

tHe Dow CHeMiCal CoMpany ReSultS

logistics and transportthe netherlands offers the right conditions to provide a favorable establishment climate for the chemical industry because the right preconditions are present. impor-tant raw materials are available or can be supplied via the port of Rotterdam or via pipelines. there are also direct lines between the most important chemical centers in the netherlands and those of belgium, Germany and northern France.

Dow’s logistics organization processes around 12 million tons of products each year. this primarily involves Dow raw materials and products, but also includes services carried out for customers like trinseo. around 6.5 million tons are received annually for processing and around 5.5 million tons are sent out. this adds up to a total of around 110,000 transshipments via various modes of transport: road, rail, pipeline and ship. the Dow volume per mode of transport (left) and number of transshipments/movements are shown here.

VoluMe

11100 Kt

tRanSSHipMentS

82000

1840 Kt16%

270 Kt2%

740 Kt7%

8400 Kt75%

7510091%

51006%

00%

26003%

Page 42: 2015 SuStainability RepoRt - Dow - Duurzaam · report year, as part of the sale of a section ... Dow 2015 Sustainability Report 3 Contents a biRD’S-eye View oF Dow 5 - Dow benelux

Dow 2015 Sustainability Report our people42

ouR peoplethinking ahead and in terms of solutions

Page 43: 2015 SuStainability RepoRt - Dow - Duurzaam · report year, as part of the sale of a section ... Dow 2015 Sustainability Report 3 Contents a biRD’S-eye View oF Dow 5 - Dow benelux

Dow 2015 Sustainability Report our people43

tHinKinG aHeaD anD in teRMS oF SolutionS. tHey aRe eSSential in tRanSFoR-MinG ouR aMbitionS into tanGible ReSultS.

in its global personnel policy, Dow endeavors to be the best possible employer. this goal is pursued by means of a strategic HR policy, with the following focal areas:• Acquisition and retention of a diverse

population• Committed and involved employees• Promoting a performance culture• Excellent leadership

Dow measures progress in these areas by means of an annual employee satisfaction survey: the Global employee opinion and action Survey (GeoaS). the world-wide scores are benchmarked with the results of top employers in the Mayflower Group.

new technological inventions and solutions and sustainable products and production processes can only develop in an innovative climate; in an environ-ment with opportunities for pioneers to look beyond their own borders and, in this way, connect to other branches of science. these “scientists” are essential for Dow’s success. this is why we nourish scientific talent and make every effort to promote an innovative climate.

workforce and formationon December 31, 2015, Dow benelux had 1,957 employees. in addition to the permanent Dow employees, on December 31, 462 people were employed through temporary employment agencies (contin-gent staff). the business process Services Center (bpSC), a separate entity alongside Dow benelux, had a staff of 552.

our values and the way we operateDow’s global code of conduct, the Diamond Standard, provides guidelines for the honest and responsible conduct of all employees. employees are provided with online tools to make them more aware of desirable behavior and are trained in recognizing undesirable behavior, conflict of interests and unacceptable practices. employees personally sign the code each year. an ethics line is also available world-wide. in all communication and support involving the Diamond Standard, employees are encouraged to take personal responsibi-lity and to report any matters that conflict with the Dow code of conduct.

Goals and resultsafter the GeoaS in 2013, various measures were initiated to further improve employee satisfaction and involvement. this included leadership engagement training, where the focus was on promoting even greater awareness of what matters to people and how to enter into a dialog about this. the Ready to Move program has also been continued, resulting in better opportunities for the professional development of employees. Managers have also received training in recognizing and dealing with stress among employees. in September 2015, 83% of employees completed the GeoaS.

one aspect of safety, health and the environment, for example, was safety awareness and no fewer than 99% of our employees stated feeling a sense of responsibility for carrying out their work safely

tHe MoSt iMpoRtant SCoReS:

Component Satisfaction 2014 Satisfaction 2015performance management 85% 86%Diversity & inclusion 76% 77%Safety, Health and the environment 77% 73%Strategic alignment 70% 61%job Satisfaction 74% 75%

Page 44: 2015 SuStainability RepoRt - Dow - Duurzaam · report year, as part of the sale of a section ... Dow 2015 Sustainability Report 3 Contents a biRD’S-eye View oF Dow 5 - Dow benelux

Dow 2015 Sustainability Report our people44

Successful cooperation in diverse teamsemployees of more than 40 different natio-nalities work at Dow and bpSC. Dow has developed a number of ways to stimulate its employees to work together effectively, creatively and respectfully within an open and diverse structure. Diversity covers such aspects as differences in education, national, cultural or socio-economic back-ground or hiring people with a physical handicap or different sexual orientation. Dow is convinced that diversity in the workplace is worthwhile and feels strongly about stimulating this.

the number of women in the organization has risen slightly (from 20% to 22%), partly thanks to the additional focus on this in the recruitment process.

Dow as employerin 2015 Dow in the netherlands earned a place on the best workplaces 2015 list. this list is compiled following empiric research by the organization Great place to work® nederland. we earned this place because of our high score in the area of trust, pride and enjoyment within the organization.

of the 79 participating companies, nineteen organizations were awarded the title best workplace in the category ‘large & Multinational Companies’. Dow nederland was one of the lucky ones. this is not only good news for current employees, but also for emerging talent. being noted on the list makes Dow an even more attractive employer, in addition to its good employment conditions, career growth opportunities, open culture and diversity in the workplace.

Great place to work® has been conducting research in organizations for some thirty years. the criteria for being placed on the best workplaces list are strict. the rese-arch takes into account not only employer policy but also the opinion of employees regarding believability, respect, honesty, pride and camaraderie in the workplace. the results showed that, as well as a good, effective policy, employee engage-ment is also extremely high.

Page 45: 2015 SuStainability RepoRt - Dow - Duurzaam · report year, as part of the sale of a section ... Dow 2015 Sustainability Report 3 Contents a biRD’S-eye View oF Dow 5 - Dow benelux

Dow 2015 Sustainability Report 45 appendices

appenDiCeS

Page 46: 2015 SuStainability RepoRt - Dow - Duurzaam · report year, as part of the sale of a section ... Dow 2015 Sustainability Report 3 Contents a biRD’S-eye View oF Dow 5 - Dow benelux

Dow 2015 Sustainability Report appendix 46

independent assurance Report to Dow benelux b.V.

eRM CeRtiFiCation anD VeRiFiCation SeRViCeS (eRM CVS) waS enGaGeD by Dow benelux (Dow) to pRoViDe aSSuRanCe, aS DeSCRibeD below, in Relation to tHe Dow benelux 2015 SuStai-nability RepoRt (tHe RepoRt).

our opinion and our conclusionsin our opinion, based on our activities, the 2015 Scope 1 Greenhouse Gas (GHG) emis-sions for Dow benelux as shown on page 48 in the Report, are fairly presented, in all material respects, with the reporting criteria.based on our activities, nothing has come to our attention to indicate that the 2015 data for all the other indicators on page 48 in the Report, are not fairly presented, in all material respects, with the reporting criteria.

our assurance activities a multi-disciplinary team of sustainability and assurance specialists performed the following assurance procedures:

• A review of the internal environmental reporting guidelines, including the Dow ‘Global emissions inventory’ (Gei) Global Standard and the ‘Global asset utilization Report’ (GauR) as well as the conversion factors used.

• An analytical review of the data from the Dow benelux locations in the netherlands and belgium, seeking explanations for data trends and anomalies where required.

• A visit to the offices of Dow Benelux in terneuzen (the netherlands) where we performed the following activities:

- a review of the data management system and internal review processes used for collecting, consolidating and reporting the 2015 data.

- interviews with relevant staff and review of samples of underlying source data for the selected indicators.

- a review of the consistency of all data covered by the scope of our engagement, in comparison with other reports to the authorities, including the results of audit reports in relation to emission trading.

- a review of the completeness and the accuracy of the calculations and the data consolidation.

• A review of the presentation of the dis-closures and the accompanying explanatory notes for the selected indicators in the Dow benelux 2015 Sustainability report to

Scope:

Reporting Criteria:

Assurance Standard:

Assurance level:

Respective responsibilities:

whether the 2015 data for selected indicators, as shown on page 48 in the Report, are fairly presented, in all material respects, with the stated reporting criteria.

internal indicator criteria developed by Dow and described in the relevant performance sections. For GHG emissions, Dow uses the wRi/wbCSD GHG protocol.

eRM CVS’ assurance methodology, based on the international Standard on assurance engagements (iSae 3000).

For the Scope 1 GHG emissions our engagement was designed to obtain a reasonable level of assurance. For the other selected indicators our engage-ment was designed to obtain a limited level of assurance. the procedures undertaken to obtain a limited level of assurance are aimed at determining the plausibility of information and are less extensive than those for a reasonable level of assurance.

Dow benelux is responsible for preparing the Report and for the collection and presentation of the information within it. our responsibility is to provide assurance in relation to the agreed scope based on the assurance activities performed.

engagement Summary

confirm consistency with our knowledge and understanding.

For the Scope 1 GHG emissions, we also reviewed the consistency of the data with the data in the independent 2015 eu-etS audit reports.

the limitations of our engagementthe reliability of the assured data is subject to inherent uncertainties, given the available methods for determining, calculating or estimating the underlying information.

original Dutch version signed by

jennifer iansen-Rogers, Head of Corporate assurance27 june 2016

ERM Certification and Verification Services, London

Independence and quality: The work that ERM CVS conducts for clients is solely related to independent as-surance, certification and verification activities. ERM CVS provides no consultancy related services to Dow Benelux B.V. in any respect. As part of ERM Group, we apply a Code of Conduct as well as internal systems for quality, independence and competence. ERM CVS is certified by ukAS by the standard ISO17021:2011 for certification bodies. Complying with this standard serves to ensure that our work is performed in a competent, consistent and impartial manner.

Page 47: 2015 SuStainability RepoRt - Dow - Duurzaam · report year, as part of the sale of a section ... Dow 2015 Sustainability Report 3 Contents a biRD’S-eye View oF Dow 5 - Dow benelux

Dow 2015 Sustainability Report appendix 147

appendix 1: abbreviations and definitions

Fine: a fine set by a government body as a result of a violation.

BRZO companies: Companies subject to regulations and supervision in accordance with the Major accident Risks Decree (bRZo).

Compliance Order: official warning issued by a government agency in response to an identified shortcoming with the order to resolve this problem within a set deadline. in the netherlands, this is often issued as a last onder Dwangsom (order subject to a penalty).

DAWC: Day away from work Case. accident according to oSHa criteria leading to an employee’s absence.

EO: ethylene oxide

OSHA: occupational Safety and Health administration. the uS safety standard. Go-vernmental Recordable: Reportable violation of a permitted limit for emission or discharge.

Governmental Recordable: incident that is reported because is exceeds the permit limits for emissions or leakages

MDI: Methylene diphenyl diisocyanate: diisocyanate that can be converted into polyurethane through a reaction with polyol.

Notice of Violation: official warning issued by a government agency in response to an identified shortcoming.

NOx-emissions: emission of nitrogen oxide

PJ: petajoule. used energy unit that is equi-valent to 1015 joules.

PGS: publication Series on Dangerous Substances

PSI: process Safety incident (also called process Safety Code incident). incident that must be reported according to the definitions of the american CCpS (Center for Chemical process Safety).

VOC: Volatile organic Compounds

Page 48: 2015 SuStainability RepoRt - Dow - Duurzaam · report year, as part of the sale of a section ... Dow 2015 Sustainability Report 3 Contents a biRD’S-eye View oF Dow 5 - Dow benelux

Dow 2015 Sustainability Report appendix 248

appendix 2: Dow benelux 2015 data overview

teRneuZen DelFZijl teRtRe ZwijnDReCHt total FoR tHe benelux ReGion

pRoDuCtion VoluMe (in Mton) 5.284 145 74 9 5.512peRSonal SaFety inCiDent Rate 0,18 0 0 0 0,18pRoCeSS SaFety inCiDentS 1 0 0 0 1lopC 1 2 0 0 3otHeR CoMplianCe 1 0 0 0 1eMiSSionS (in Mton) VoS eMiSSionS 599 1,6 0,1 20 621pRioRity eMiSSionS 7 nVt nVt nVt 7nox 1.688 6,8 nVt nVt 1.695Co2 eMiSSionS (in kiloton) SCope 1 / DiReCt eMiSSionS* 2.526,1 12,0 0 0,012 2.538,1SCope 2 / inDiReCt eMiSSionS 512,2 6,5 2,7 3,8 525,2total Co2

eMiSSionS 3.038,3 18,5 2,7 3,8 3.063,3eneRGy ConSuMption (in pj) 59,3 0,35 0,21 0,39 60,3waSte (in Mton) 55.292 1.132 2.432 54 58.910waStewateR 7.076.448 48.866 69,430 0 7.194.744wateR ConSuMption (in m3) 10.183.974** 76.146 77.200 - 10.337.320

** Excluding seawater consumption for cooling