Executive Summary Dow Brazil Sustainability
2009
Table of Contents I - Responsible Management Management and Strategy Suppliers and Partners Customers People Management
04
II - Social and Environmental Investments Ecoefficiency Social Development and Transparency Participation in Social Projects
16
Editorial Staff Editorial Committee
Pedro E. Suarez (President for Latin America), Pablo Edelstein (Finance Director for Latin America), Paul Oakley
(Director of Institutional Relationships for Latin America), Osvaldo Kalaf (Manager of Commercial Excellence and Training for Latin America), Maria Lucia Bechara (Manager of Health Services for Brazil).
Coordination
Amin Salloum (Sustainability Manager for Latin America); Fernão Silveira (Communication Manager for Brazil), Regina Moura (Communication Manager for Latin America).
Collaborators
Bruno Pereira, Daniela Miranda, John Biggs, Jorge Buckup, Laila Pinheiro, Laura Nagle, Marcelo Junho, Marconi Oliveira,
Table of Contents
Maria Lucia Bechara, Maria Lucia Marra, Osvaldo Kalaf, Pablo Edelstein, Paul Oakley, Rita Carvalho, Vinício Stancati.
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Editorial Production - In Press Porter Novelli
Amanda Rabelo Veloso (Editorial Content), Claudio Andrade (Sustainability Consultant), Daniela Barroso F. Dias
(Editorial Project and Editing), Gleicy Souza (Manager of the Off Line Integrated Communication Group), Maria Clara Viana Stoqui (Art Editing and Graphical Project).
Images
Dow and sxc.hu files.
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Editorial
Dow is a global leader in the chemical industry that operates in
more than 160 countries. The Company was established with the objective of applying chemistry to solutions for the world’s most challenging problems. Today, it offers technology-enabled solutions to key sectors such as water, energy, infrastructure, health and consumer goods. However, innovation has always been Dow’s feedstock. Present in its DNA, it is the fuel and driving force for the transformations enabled at Dow and by Dow. Innovation that makes the Company be always open to research and development and that makes it notice its large sustainable potential.
With the arrival of the 21st century, the Company put into practice a project to assure the
health of both the planet and its inhabitants, seeking “Innovative solutions for the human progress.” Without leaving behind the “Ethics and integrity in its businesses” that have always characterized Dow’s activities worldwide.
The first step was to engage its team – more than 52,000 professionals all over the world – in the
search for these objectives. And primarily make them aware that the commitment to sustainability goes beyond donations and the participation in social and environmental projects. Dow’s nature calls to a forward-thinking behavior, an exceptional behavior. For this reason, to assure the success of its businesses and strategies, Dow counts on the Human Element (Hu), an essential and crucial agent that, through its work, energy and commitment, develops solutions and works towards a sustainable future.
The recent demands have also led Dow to update its strategy and reformulate its vision and
mission. In 2005, the Company established goals for 2015. Objectives that have been debated and reflected – internally and externally – through public discussions, press materials and publications, among which, Sustainability Reports and Summaries.
Today, Sustenability is neither a concern nor a project, but part of Dow’s businesses and
daily activities. It is linked to the Company’s culture and guides both its corporate strategy and its procedures. For this reason, many of the programs and projects presented in Brazil’s 2009 Sustainability Summary are already known by the society. Therefore, more than merely transcribing the Company’s actions, the Summary is now focused on evidencing Dow’s results and commitments with the constant presence of the projects it develops. The Company is aware that, more than introducing innovations to the market, it is necessary to assure the continuity of the projects launched, most of them medium- and long-term projects. Accordingly, in addition to sharing the satisfaction of having active programs, Dow is sure that it is on the right way to reach a sustainable and prosperous future.
Pedro E. Suarez President for Dow Latin America
Dow Brazil Sustainability • 03
Management and Strategy Absolutely everything, without exception, results from chemical combinations. Without chemistry, living in our planet is something unimaginable. Due to this, the responsibility and the challenges of a Company that exists because of chemistry are unquestionable. Therefore, managing Dow is a mission that requires aligned strategies and efforts. One of the world’s largest chemical companies, with a history of 113 years and more than five decades operating in Brazil, Dow reached the 21st century adapting its Mission, its Vision and its Values, which are based on three pillars: Integrity, Respect for People and Protecting our Planet. Resourced by unique talents, know-how and technology recognized worldwide, Dow combines the power of science and technology with the “Human Element” to passionately innovate what is essential to human progress. The Company connects chemistry and innovation with the principles of sustainability to help address many of the world’s most challenging problems such as the need for clean water, renewable energy generation and conservation, and increasing agricultural productivity. Dow’s diversified industryleading portfolio of specialty chemical, advanced materials, agrosciences and plastics businesses delivers a broad range of technology-based products and solutions to customers in approximately 160 countries and in high growth sectors such as electronics, water, energy, coatings and agriculture. Mindful of the needs and challenges faced by the new global business landscape, Dow bets on a management aligned by global values, but that respects the autonomy and characteristics of its distinctive geographies. Brazil, where Dow has been operating since 1956, is home to the Company’s headquarters for Latin America, a region that has been growing significantly thanks to its consistent results, proven business
I - Responsible Management
potential and unique natural resources that makes it an important platform for sustainability.
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positioning in the benefit of the development of the communities where it operates. The Company’s social activities comprise from long-established policies on the management of human resources that allow it to provide its employees with distinctive conditions, to articulated strategies designed to strengthen Dow’s positioning as an active corporate citizen engaged in the development of the communities
Sustainability Management For Dow, sustainability is a mandatory and
where it operates. Dow’s social responsibility projects in Latin America follow three main pillars – education,
decisive attribute that guides projects, processes
environment and entrepreneurship – and
and business opportunities. The Company is
are designed to be long-lasting projects with
proud of managing sustainability not based on an
a broad scope. Most programs developed by
isolated managerial approach but on an approach
Dow are characterized by a multidisciplinary
that is closely connected with its overall strategy.
approach and permeate several areas of the
This means that all Dow’s areas and collaborators,
social and environmental development. An
without exception, work in a way that guarantees
example is the Ecosmar project, aimed at the
a sustainable management, which in turn assures
economic development of the community living
the business success, profitability and longevity.
Ilha de Matarandiba (State of Bahia), but that
Dow believes that it is not possible to plan the future without fighting for the human progress, for simpler and healthier life conditions, for the
also comprises actions in the environmental, educational and entrepreneurship areas. Dow’s Community Advisory Panels are
preservation of ecosystems and for the protection
another highlight of the Company’s corporate
of our planet. To make this commitment public
social strategy. These panels are supported by the
and clear, the Company established in 2005 a
Company in Franco da Rocha, Guarujá (State of São
complete sustainability-oriented plan of actions
Paulo) and Vila de Matarandiba (State of Bahia)
and objectives – the 2015 Goals.
and comprise periodical meetings with leaders
These goals are: • Protection of Human Health and the Environment;
• Contributing to Community Success; • Commitment to Product Safety; • Sustainable Chemistry;
• Solutions for the world’s main challenges; • Energy Efficiency and Conservation; • Addressing Climate Changes..
In addition to being a global leader in the
and other local stakeholders for the discussion of relevant topics for the community and updating of the Company’s operations. Guarujá’s Community Panel, for example, celebrated 17 years of operations in 2009 and is the first panel in Brazil established by a chemical industry. In 2009, Dow invested some R$ 1,775,000.00 in corporate citizenship programs and benefited approximately 6,600 people in Brazil. In addition, the Company strives to engage other
chemical industry and focused on its shareholders’
companies – partners, customers and suppliers
return on investments, Dow maintains a strong
in corporate social responsibility actions.
Dow Brazil Sustainability • 05
I - Responsible Management
Dow Brazil, through its president, Pedro
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information about +Unidos Group and make the
Suarez, participates in the Board of Directors
public aware of the social responsibility efforts
of Grupo+Unidos de Responsabilidade Social
developed by US companies based in Brazil.
(“+United Group of Social Responsibility”), a body
The event, which brought together some 4,000
established by the United States Diplomatic
people at Parque do Ibirapuera, in São Paulo,
Mission in Brazil which objective is to discuss and
included a campaign for the collection of food
make feasible the expansion of social projects
and clothes for Fundo de Solidariedade do Estado
developed by U.S. companies that operate in the
de São Paulo – FUSESP (Solidarity Fund of the
country. In August 2009, through a partnership
State of São Paulo). Through the initiative, 1 ton of
led by Dow and supported by USAID (United
donations were collected.
States Agency for International Development) and Qualcomm, a free concert was held to spread
Ethics and transparency when addressing sustainability as other characteristics of Dow’s operations. The Company prepares quarterly updates on its goals and progress made available for the public in dow.com (in English). The Company’s global sustainability reports, which follow the GRI (Global Reporting Initiative) standard, have earned the highest “grade” (A). In an effort to replicate its global practices in Brazil, Dow has been preparing the Sustainability Executive Summary since 2009, a local publication that adds information to its global report.
Sustainability in practice Dow has been globally investing in the environment since last century and was six times awarded with the “U. S. Presidential Green Chemistry Challenge Award”, in addition to being nominated nine times to be listed in Dow Jones Sustainability World Index. This recognition results not only from its strategy and programs to preserve the environment but also from the manufacturing of products that contribute to a better use of natural resources, such as the POWERHOUSE solar roofing, considered one of “The 50 Best Inventions of 2009” by TIME magazine. Dow’s sustainability projects are created based on discussions conducted with several audiences of interest (internal and external audiences) and take into account needs that go far beyond the Company’s limits. Among the most long-lasting projects are the programs to reduce energy consumption and improve the reuse of water. From 1995 to 2005, Dow invested US$ 1 billion in these areas on a global basis. These investments led to a reduction in waste levels and an increase in energy efficiency, in addition to generating an output of US$ 5 billion. As one of the signatories of Programa de Atuação Responsável®, the Brazilian version of the Responsible Care Program ®, coordinated in Brazil by Associação Brasileira da Indústria Química - Abiquim (the Brazilian Association of GRI Category Indicator Economic EC1 Performance EC8
the Chemical Industry), Dow invests significantly in safety through programs of continuous improvements, management systems and assessment processes. A good example comes from the Transportation area. Dow makes 70,000 shipments/year in Brazil, most of them referring to the shipment of chemical products. In 2009, the Company did not register any severe transportation incident, after reaching, in 2008, a reduction of 60% in this index. Initiatives such as DowGOL Award, created with the objective of recognizing and encouraging safety in suppliers’ transportation and storage operations, which celebrated its 8th edition in 2009, are practical
Description Revenues Operating Costs Wages/Benefits Comunity investments
2008 4.830* (4.245)* (286)* (1)*
Dividends Economic Profit/ (Loss) Development and impact of infrastructure investments and services provided primarily for public benefit through commercial, in-kind, or pro bono engagement (in thousand reais)
97* (93)* 142* (189)* 906.00* US$ 1.159.910,98
Operating Profit/(Loss) (*) Income Tax/Social cost Net Profit/(Loss) for the Fiscal Year
298* (253) 45*
2009 4.543* (4.471)* (292)* (1)* (221)* 125 (96)*
(*) in million reais
Dow Brazil Sustainability • 07
and successful examples of how Dow encourages
natural gas) aimed at using agricultural-based
the spreading of safety concepts and practices
resources and feedstock generation sources to
all over the value chain. In addition to that, Dow
replace petroleum.
conducts training sessions in partnership with institutions such as SEST/Senat to train both
measures to reduce the disposal of perishable
its own drivers and suppliers’. The Chemical
items and leverage the use of non-perishable
Distribution Institute is audited by Dow.
waste, in addition to discussing this topic with
Customers’ safety is also a source of
the society. In 2009, Dow opened dialogues
research by Dow. Its products and solutions are
about the topic with ABRE Environmental
manufactured according to stringent quality
& Sustainability Committee, of which it is a
standards, audited and monitored by indicators
member. Also in 2009, it developed a course
developed by the Company itself and external
on Packaging in partnership with ESPM (Escola
institutions. The Purity Plus is one of the
Superior de Propaganda e Marketing). Part of
programs most broadly applied in the Company’s
Núcleo de Estudos da Embalagem (“Packaging
production and assures the product quality,
Studies Center”), the course aims at enabling
safety and application.
professionals from the Brazilian industry to find
Two years ago, the Company put into practice
I - Responsible Management
The Company also addresses practical
alternatives to reduce waste (primarily food),
in Latin America the Alternative Feedstock
seeking energy and logistic efficiency. The piece
program (alternative feedstock to naphtha and
of work has become a reference in Latin America.
Awards - 2009 In 2009, Dow was recognized in the local and international markets. The Company was awarded for its transparency, technological development and leadership in sustainability: • The Global Reporting Initiative (GRI) was rated A + for the second consecutive year; • The POWERHOUSE ™ product was listed as one of the “50 Best Innovations in 2009” by Time Magazine; • The Company was awarded as one of the “50 Top Sustainable Corporations” by Watch Magazine; • Dow AgroSciences was awarded by the Michigan government in the Green Chemistry category for its Spinetoram insecticide derived from the fermentation of organisms in natural soil; • Innovation and Excellence Award from Institution of Chemical Engineers for the development of Hydrogen Peroxide in propylene oxide and production technology – partnership between Dow and BASF; • Listed in Dow Jones’ Sustainability Index for the 9th time; • Selected as Brazil’s most admired company in 2009 in the Chemical and Petrochemical sectors by Carta Capital magazine; • Recognized as one of the most innovative companies in Brazil by the National Association of Research and Development of Innovative Companies (ANPEI); • The only chemical company to receive the State Seal of Diversity (“Adesão” category); • In 2009, Dow Brazil earned the 13th straight recognition as one of the best companies to work for in Brazil by Guia Você S/A Exame.
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Suppliers and Partners
In 2005, when it established its 2015 goals, Dow was aware that part of its results is linked to third parties. With this in mind, the areas that deal directly with suppliers – such as the Purchasing area – have been receiving greater attention. Accordingly, 2009 was an important year for the evaluation of opportunities and new improvements. Consistent with the Company’s sustainability and social responsibility view, the Purchasing Department played a crucial role in the process to select products and services suppliers, helping disseminate some of Dow’s essential values throughout the chain. In this sense, the Company consolidated measures such as the inclusion of contract clauses that ban any and all businesses with suppliers that do not adopt proven policies and practices against forced or compulsory labor and child labor. Audits promoted by the Company help assure the alignment of suppliers with these requirements. Another important process was the greater autonomy for Purchasing areas to implement specific procedures in each region, according to the local peculiarities, with a view to optimizing the relationship with suppliers. For Brazil and the remaining Latin American countries, the Company analyzed specific strategies that lead to a greater autonomy for the evaluation and contracting of regional partners, primarily regarding the contracting of services. Another measure considered feasible to optimize the activities of this important department was the review of some Purchasing processes with a view to reducing the bureaucracy and assuring a greater efficiency in the relationships with suppliers and internal customers. The Purchasing department also played a very important role in the integration of Rohm & Haas, helping consolidate processes and assuring synergies capable of leveraging the saving of resources, review of agreements and a broader use of the capacity of the distinctive providers. In addition to being consistent with the Company’s 2015 Sustainability Goals, these changes were designed to come into force in 2010, improving the way Dow make businesses with its distinctive suppliers. The Company has a team of partners that cooperate in several social and environmental projects. SESI and SENAI are among the most active ones, with which Dow carries out projects related to educational programs and entrepreneurship (Força Jovem and Telecurso 2000 are two examples), universities, such as UFBA and Unisanta that, together with Dow, participate in the Ecosmar and Mangue Limpo (“Clean Mangrove”) projects (respectively), and the United Way, partnership in volunteerism projects.
Dow Brazil Sustainability • 09
Customers
In 2009, Dow had annual sales of US$ 2.28 billion in Brazil, corresponding to approximately 5% of the Company’s global result (US$ 45 billion). These figures show the importance of Brazil as a prominent “emerging geography” – together with other important countries
I - Responsible Management
such as China and India -, helping leverage Latin America as a highly strategic area for the Company’s businesses. With a view to supporting the region’s growth plans and solid results, where the Company has been operating for more than 50 years, several investments are done to strengthen the relationship with customers and improve the services provided to meet their needs. Workshops and forums designed to customers and that count on the participation of employees and other players of the value chain, debate innovations, operation efficiency and the rational use of natural resources. Ten events were organized in Latin America in 2009, four of which in Brazil, with each one bringing together 200 participants. In addition to promoting the contact among distinctive audiences of interest (stakeholders), these meetings helped customers get familiar with
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the sustainability topic and gave rise to new
discussions, confirming the inclusion of the topic in the entire value chain’s agendas. In 2009, Dow Brazil also invested in the improvement of a Commercial Excellence area that gathers several functions, among which, Marketing, Sales and Research & Development. The area is responsible for strengthening the relationship and promoting more intelligent solutions for customers, among other discussions. The Commercial Excellence area, which main project is the Latin America Customer Academy – LACA, leads the development process of specific and highly specialized projects with customers and other parties of the value chain, such as suppliers and distributors. Given they include the discussion of strategic information for all those involved, LACA’s projects are addressed through non-disclosure agreements. An important project managed in LACA’s discussions led to the substitution of glass for plastic in wine packaging for export. This change, which demanded hard and integrated Research & Development efforts between Dow and its customer, resulted in the reduction of logistic and transportation costs and a lower energy consumption – benefits achieved thanks to the reduction in the packaging weight and
volume. Not to mention the gains in handling safety, without prejudice to the properties that are essential to the beverage quality. Another good example for the food industry achieved through LACA resulted in the creation of a stand up pouch (a type of stiffer and more hermetic plastic envelope) for cereals that eliminated the need of the cardboard box to protect the product on the shelf. The Academy’s discussions are not limited to packaging. The Company also developed a vegetable fat that substitutes the animal fat without prejudice to its properties and flavor, in addition to a technology that reduces the use of oil in the preparing of frozen food to be fried. Both to meet customers’ demands. Another relevant factor when it comes to LACA is the international interchange inherent to its projects. All projects discussed through the Academy has a strong interface with Dow Brazil, even when outside the country, since part of the Marketing and R&D teams for Latin America is based in Brazil.
GRI Category
Indicator
Customers PR7
Description Total number of incidentsof non-compliance with regulations and voluntary codes concerning marketing communications, including advertising, promotion, and hip by type of outcomes
2008
2009
new
zero
The excellence in R&D and the stringent safety requirements assure very high quality standards to Dow Brazil’s products. One of the measures with this objective is the “Purity Plus”, a standard that assures its commitment to the product’s purity, in accordance with Boas Práticas de Fabricação – BPF (“Good Manufacturing Practices”) program. The Company also invests in global programs for the auditing, qualification and training of its distributors. Dow follows strict handling, storage, packaging, transportation and distribution practices and provides support through its global technical services groups. All this without leaving behind investments in internal training programs and policies that assure the free competition and ethical relationships with customers and help the Company work against unlawful practices, such as bribery and illegal favors, in strict compliance with the Company’s Ethics and Compliance principles.
Dow Brazil Sustainability • 11
People Management To reach its View, that is, to be the most profitable and respected science-driven chemical Company in the world, Dow invests in the most important element: the Human Element (Hu). Accordingly, it invests in initiatives, programs and events that maintain the Human Resources Management aligned with the Company’s own management. The HR management is based on four pillars: 1. Organization aligned with the businesses; 2. Organization aligned with the functions, which primary responsibility is the management of talents; 3. Organization aligned with the geographies; and 4. Technology centers. In 2009, the Company put into practice several programs to integrate with Rohm and Haas, acquired on that same year. To assure the success of its goals, the Company had to optimize the integration of approximately 200 new employees, a process that was organized during three years, together with the Company’s repositioning. The “new” Dow was created based on new global guidelines that posed challenges to both companies’ employees, with different cultures, giving rise to a third Company. Two of its main values – Integrity and Respect for people – guided the integration processes, supported by two key actions: transparency and communication. Considered by the Human Resources leaderships as the great tool in the period, it was present from the Company’s acquisition and exercised through formal and informal means. Important decisions were announced by Latin American leaders – region that managed to integrate and complete the integration process faster – and even by the Company’s CEO. Resources like Dow World News, a global broadcast, put the leaders in direct contact with employees, whereas publications like Dow Today Newsletter updated the news related to the changes made to the Company. One of the most used channels during that period was the Intranet, which required significant technological investments to
I - Responsible Management
promote the integration of both companies. The channel worked as a two-way “route”, answering doubts
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and responding to requests. Meanwhile, each unit sought to constitute focal points that, for more than five months, gathered information about the needs and doubts of both those who were just arriving at the Company and Dow’s veterans.
Leaders Dow’s leaders played an important role during the integration and transition periods. They worked as spokespeople and true “focal points” for employees. Trained to expand the scope of HR activities, they worked to anticipate information, clarify doubts and forecast crises. They were also responsible for informing the destination of each new member, and for leading the integration processes and adjusting them according to the Company’s management strategies and pillars. To leverage leaders’ role as communicators, Dow promoted workshops, lectures and training sessions throughout the year. The initiative of training its leadership is recognized both internally and externally as a strong point of Dow Latin America. One of the most successful efforts was the updating of these professionals, divided into three workshops. The first topic addressed was “Self-Awareness”, followed by the “Change” and “Culture” workshops. In Brazil, the initiative counted on the partnership of Fundação Dom Cabral (“Dom Cabral Foundation”) and the participation of some 100 leaders. In 2009, Dow Brazil expanded its “learning and relationship lunches” strategy, called “Lunch & Learn”. The initiative was developed together with the HR department and other functions and businesses to better teach leaders about relevant topics, among which, management, strategy, and operations. In 2009, the “Lunch & Learn” meetings brought together approximately 25 people per event, many of whom coming from Rohm and Haas. The initiative continues in 2010.
shares and Stock Options. The Company also develops distinctive and targeted programs, among which: • President’s Award: recognizes financial impact results;
• Platinum Distinction: recognizes
extraordinary events with significant impact on functions/businesses/Company;
• Recognition@Dow: recognizes, on a global basis, those who “make the difference” and rewards results aligned with the Company’s strategies; • Genesis Award (Prêmio Genesis):
recognizes the development of leaders in all levels of the organization;
Valuing Talents
• Pinnacle Award: for Sales professionals,
To retain the best professionals, Dow resorts
• SAC (Special Assignment Compensation):
to career development and benefit programs. Among the more attractive programs are those related to the purchase of shares, deferred
recognizes distinctive performances; awards employees with specific
knowledge who moved to other locations (lateral position).
Dow Brazil Sustainability • 13
Dow recognizes that the employees are the major responsible ones for their careers; on the
Dow conducted check ups and several medical
other hand, the Company provides them with
follow-ups among its leaders.
tools and policies to make their development
One of Dow Brazil’s goals for 2009 was
possible. Among the assessment and growth
to reduce the number of smokers by 0.5%.
tools are e-Learning methods, behavioral training
To this end, the Company implemented a
sessions, functional training sessions, PGAE -
structured anti-tobacco campaign, developed in
Programa Global de Assistência ao Empregado
partnership with the pharmaceutical company
(“Global Employee Assistance Program”),
Pfizer, which includes lectures, group activities,
Programa de Transferências Internacionais
individual follow-up and subsidy of 80% for
(“Foreign Expatriation Program”) and Avaliação
the purchase of medicines used in treatments.
360 Graus (“360o Evaluation”), which are applied
In recognition of this successful initiative, the
and offered according to the employees’ activity
VivaVida anti-tobacco program was presented
and function.
as an example in the Latin American version of
Healthy and safe One of Dow’s major concerns is its employees’ and relatives’, customers’ and suppliers’ safety. In 2009, the Company invested significantly in
I - Responsible Management
Traffic Safety campaigns, assuring a reduction
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of physical exercises and healthy eating habits,
of 50% in drivers’ accidents and surpassing the 30% goal for the year. In 2009, Dow did not register any accident that caused injuries to its employees on Brazilian roads. The Company’s health programs are also a tradition and part of its global strategy. Programa de Promoção de Saúde – VivaVida (“Program for Health Promotion – VivaVida”), through which educational and self-improvement experiential actions have been developed since 1993, faced in 2009 the challenge of establishing goals to improve the health indicators of its Brazilian leaders. The initiative selected three main fronts: reduce the number of sedentary and obese employees, as well as employees who were overweight. In addition to the general programs to raise awareness and encourage the practice
2009 World Economic Forum, which took place in Rio de Janeiro. The campaign against sedentarism had the support of the Company’s president for Latin America, Pedro Suarez, who started inviting his leaders (some 40 people) and employees from the most diverse levels to weekly walks in São Paulo. In addition to that, on December 2, the Company promoted the Wellness Day in its Headquarters (São Paulo), a whole day dedicated to raise awareness about physical activities and healthier habits. Lectures and a special lunch (named Leve e Saudável [“Light and Healthy”]) brought together the more than 700 employees who work at the office. In the afternoon, more than 130 collaborators participated in a walk at Parque do Ibirapuera. Dow also has gym centers in several of its units and offers agreements with gym centers in locations where it is not possible to have such facilities. Thanks to the awareness campaigns in the benefit of a healthier life, which includes efforts like the “12% Solution to Weight Management”
(medium-term and multi-faceted program aimed at leading employees to healthily reduce 12% of their weight), the number of obese people remained stable but the number of employees who were overweight was reduced by 1.5%. Also in 2009, Dow implemented a program to survey and control stress. The mapping was part of a global alignment and all Brazilian units took part in it. The objective was to communicate to the leaders which factors cause most stress among the employees. The survey also showed aspects that minimize stressful situations. Among the strongest points, the positive power and companionship among the peers was a highlight. Vaccination campaigns were also part of Dow’s agenda. A highlight was the vaccination against the H1N1 flu in Brazil, Mexico and Argentina. The strategy included the planning of emergency actions, in addition to the mass immunization in countries with the highest incidence levels. More than 1,500 employees were vaccinated.
GRI Category
Indicator
Description
2008
2009 Notes
People Management
LA2
Total number and rate of employee turnover by age group, gender, and region
new
2.81
LA7
Rates of injury, occupational diseases, lost days, and absenteeism, and number of work-related fatalities by region
0.22
0.19
LA10
Average hours of training per year per employee by employee category
new
1.8
Average hours of training per employee
LA13
Composition of governance bodies and breakdown of employees per category according to gender, age group, minority group membership, and other indicators of diversity
22 30
23 30
In percentage
LA14
Ratio of basic salary of men to women by employee category
0.98
0.99 proportion
Percentage of employees who left the company after Dow and Rohm & Haas merger
Dow Brazil Sustainability • 15
Ecoefficiency Ecoefficiency is more than a modern term. It is the combination of strategies and actions that guide companies and the society to reach the balance between the planet and human needs. For a manufacturing industry like the chemical sector, the challenge includes two perspectives – to promote the efficient use of energy not only in its units but also among customers and the society as a whole. In 2009, the Company invested globally more than US$ 1 billion in research and more than 6,000 people worked towards this objective. Part of that amount was used in the development of concentrated formulas of products for domestic and industrial applications, what in 2009 corresponded to more than 79 projects, some of which already implemented in the market. These formulas, such as those used in laundry detergents, also reduce the use of water both in terms of production process and residential consumption. In the case of the powder detergent alone, the entire production chain saved approximately 15 million liters of water in the year. These formulas also bring savings for the chain, such as transportation and storage, since their
II - Social and Environmental Investments
packaging occupies less space. In addition to that, the product is advantageous in domestic terms
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because of its reduced washing time. Another example is that of formulas developed to clean places where a large number of people moves around, such as shopping malls and supermarkets, because they reduce not only the need of continuous cleaning, what minimizes water and energy consumptions, but also require a reduced quantity of water in their production. Their performance allows water savings of up to 30% in their final use. Another effort focused on reducing energy consumption that started to be implemented in 2009 was the move of Dow’s Latin American headquarters, located in the city of São Paulo.
Estimated to take place in mid-2010, the Company will be moving to a modern building equipped with environmentally responsible technologies:
Source of solutions In 2009, Dow implemented the Fontain
Condomínio Rochaverá, certified as a “Green”
project with the objective of fostering
complex by the prominent US Green Building
improvement projects, primarily regarding the
Council. The complex follows international
reuse of its waste to be used as feedstock given
“green construction” standards and uses lots of
their high energy capacity.
natural lighting thanks to its internal distribution
The studies conducted by Dow’s
and glass walls. The construction used recycled
multidisciplinary teams in its own labs showed
material and certified wood, in addition to
that both liquid and solid waste has a large energy
rainwater to irrigate gardens, wash external areas
potential, in addition to being feasible to be
and cool the air conditioning system.
transformed into feedstock. Other types of waste
As part of this same concept of
can be either used by Dow’s customers or disposed
ecoefficiency, Rohm and Haas’ units, including
of in a sustainable manner. With this, some
the important complexes located in the cities
50 projects were presented by the Company’s
of Jacareí and Pindamonhangaba, were subject
collaborators, highlighting those related to the
to programs designed to reduce their energy
use of distinctive feedstock that generate a kind
consumption, as well as other Dow’s standards
of waste that causes less impact and allows the
in terms of safety and efficient operations.
recycling of the so-called “white waters.”
Dow Brazil Sustainability • 17
II - Social and Environmental Investments
Social Development and Transparency
Executive Summary •
18
For Dow, to be active in promoting the quality of life in the locations it operates and with the communities it relates to is crucial to establish reliable relationships and sustainable operations. To reach this objective, one of the Company’s 2015 Sustainability Goals is “Contributing to Community Success.” The programs focused on this objective stood out in 2009, primarily regarding the mapping out of the communities and the “Ombudsman activities” to learn about the problems and receive suggestions from these important local stakeholders. The most significant example of the Contributing to Community Success goal in Brazil in 2009 took place in Aratu, city of Candeias, State of Bahia – where Dow has an important industrial complex. The Company mapped out the community’s needs and claims through face-to-face interviews with approximately 500 local stakeholders, all of them with ages above 18. The survey criteria included social and economical indexes and challenges related to the local infrastructure. Based on the results of this comprehensive survey, which was also carried out in other nine “Category 1” complexes (the category is defined according to some factors, such as size and strategic importance for Dow’s businesses) worldwide, a group of Dow leaders, including Pedro Suarez, president of Dow Brazil, and the American Jeffrey Martin, manager of the global “Success in the Communities” team, gathered in Aratu in the second half of the year to establish an action plan designed to strengthen the relationship between the Company and the community, aligning global goals with local needs. The plan includes improvements in the internal and external communication of the programs’ objectives and results, establishing of clearer measurements of success and definition of most active responsibilities to be taken by the local stakeholders. The measures discussed were presented to strategic stakeholders and started to be implemented in 2009.
Transparency and ethics in businesses Dow’s transparency in all society levels goes beyond the relationship with its neighbors. It includes employees, suppliers, partners, customers, consumers and governmental bodies. Among the internal public-oriented actions, highlights are the compulsory training sessions for employees about the Company’s Code of Business Conduct, which objective is to make clear Dow’s procedures and rules adopted on a global basis to fight corruption and avoid unethical relationships in businesses and with its several stakeholders. All collaborators are subject to face-to-face and online courses that address several topics, such as the relationship with other market’s players, that is, strategic information and attitudes that assure the open and free competition. With the acquisition of Rohm & Haas, a challenge in terms of Ethics was to include the company’s people in the same curriculum as that of Dow’s employees, assuring uniformity and amplitude to the Company’s strict rules in this area. Other important channels for Dow’s transparency among its audiences of interest are its sustainability reports and summaries, which objective is to communicate the Company’s objectives, commitments and goals to the society. Such publications, published both on a global and local basis, are directed to the several sectors of the society such as customers, suppliers, agencies, NGOs, and investors. Global documents related to The Dow Chemical Company are periodically made available for the public, with free access, through the Internet (www.dow.com).
Dow Brazil Sustainability • 19
Participation in social projects
Dow’s social responsibility strategy in Latin America is based on three main pillars: Education,
Environment and Entrepreneurship. Among the several characteristics of this strategy are the informed planning and partnership with non-governmental institutions, public agencies, and scientific and education communities. Another important feature is its broad scope: most of the projects developed by Dow permeate several social and environmental development areas. For this reason, they were classified
II - Social and Environmental Investments
according to their major objective.
Executive Summary •
20
Education Mangue Limpo (“Clean Mangrove”), developed
University of the State of Bahia) and Seduc -
in the Industrial Complex of Guarujá (State of São
Secretaria de Educação e Cultura de Candeias
Paulo) in partnership with Universidade Santa
(Candeias Department of Education and Culture),
Cecília (Unisanta - Santos), is a project aimed at
the project is aimed at facilitating the access to
raising awareness and educating youngsters
distinctive educational resources, such as libraries
about the environment and making them
and laboratories, training teachers and providing
become multiplying agents that protect the
the city’s students with didactic materials. In 2009,
mangrove. In 2009, Dow invested approximately
the project was adopted by SESI - Serviço Social da
R$ 85,000.00 in the project and organized free
Indústria (“Industry Social Service) following the
visits for more than 2,000 children - closing the
implementation model developed by Dow.
year with 10,000 visitors since the opening of
Força Jovem - Candeias (State of Bahia):
Estação Manguezal (“Mangrove Station”), in 2004.
created in 2007, it is focused on providing the
The project started in 2002.
community’s youngsters with better perspectives
Other important projects in the education area:
by investing in their professional and technological
• EducanDow – Candeias (State of Bahia):
qualification. The project, developed in partnership
Developed in partnership with UFBA (Federal
with SESI, serves 75 youngsters with ages from 13
Environment As previously described, the preservation of the Environment is part of Dow’s global strategy. A highlight in 2009 was Projeto Cachoeira (“Waterfall Project”), in Piracaia (State of São Paulo), a partnership between Dow and The Nature Conservancy that restored and preserved the Brazilian Atlantic Forest in the region of Cachoeira reservoir, in Piracaia (State of São Paulo), major source of freshwater for more than 9 million people living in the city of São Paulo. The project, started in 2008, estimates investments of US$ to 19 who attend training sessions about human development, citizenship and entrepreneurship. In 2009, it started to include the communities of Madeira and Pasto de Fora. • Telecurso 2000 and Programa de
1.5 million during a three-year term, US$ 500 thousand of which already invested in 2009. Dow also invested in other environmental projects in 2009: • Dow Novo Mundo Cooperative - Guarujá
Alfabetização de Adultos – PAI (Literacy
(State of São Paulo): located in Vicente de
Paulo): Maintained in partnership with SESI
recycling of the waste generated by Dow’s
Industrial (“National Service for Industrial
cooperative members to increase their income.
Classes for Adults) - Guarujá (State of São
Carvalho, its major objective is to promote the
and SENAI - Serviço Nacional de Aprendizagem
industrial complex, in addition to helping
Training”), the programs offer literacy classes (PAI) and secondary education (Telecurso 2000) for approximately 70 underprivileged adults per year. The students are selected by Sesi in Vicente de Carvalho’s neighboring communities, where Dow’s industrial complex is located. • Jovens Embaixadores (“Young
Ambassadors”) - São Paulo (State of São Paulo):
promoted by the United States Embassy in Brazil and supported by Dow since 2007, it provides underprivileged youngsters nationwide with 3-week interchange opportunities in Washington D.C. In 2009, its 8th edition selected 35 students from 23 states to have contact with the US culture, improve their English skills and be trained for leadership and social services.
Dow Brazil Sustainability • 21
Empreendedorismo
chain. The second phase comprised the creation of several ventures, among which Ascomat (Cultural Association – to promote the valuing of the local culture), Infomar (community IT teaching center and access to the Internet), Ascoma (Community Association) and Ilhamar, community bank that grants the region’s inhabitants with credit using its own currency – the Concha (the “Shell”) – and that encourages the local economy. The third phase was implemented in 2009, which main objective was to consolidate the efforts started in the previous years. Actions included the growing of food through a better use of the soil and remaining natural resources,
II - Social and Environmental Investments
Entrepreneurship is one of the most important areas in reaching Dow 2015 Goals. With this in mind, the Company has been investing in projects that benefit several social sectors, such as Relationships with the Community, Citizenship, Education, and Environmental Preservation. The major highlight in this area is Ecosmar Project – one of Dow’s most successful projects in Latin America. Ecosmar - Economia Sustentável e Solidária de Matarandiba (“Matarandiba Sustainable and Solidarity Economy”) integrates actions in the human and environmental development areas. Created in 2007, it is a major process to transform the Matarandiba community, in the city of Vera Cruz, State of Bahia, where the rock salt mining unit is located. Developed in partnership with UFBA (Federal University of
the commercialization of fish and shellfish. The expansion project also includes the building of commercial points, such as markets and bakeries, plan presented to the community in the Matarandiba Community Development Forum organized by Dow. The community, in turn, started to spread its knowledge and engaged in driving the island’s development and protection projects, efforts that allowed it to fully exercise its citizenship. Some 150 inhabitants work as environmental supervisors and spread information about the balance between development and preservation among other inhabitants and tourists – addressing topics such as predatory fishing activities.
Volunteerism Projects
ventures aimed at fostering the community,
The Company’s most robust volunteerism
social, cultural and economic organization of the more than 500 inhabitants living in the village. The program was strategically planned and divided into phases. The first one comprised the mapping out of the island, which resulted development and strengthening of its economic
22
restructuring of the local market to strengthen
the State of Bahia), it comprises a set of collective
in attitudes and solutions for the local
Executive Summary •
the island’s technological development and the
program is SolidariDow, which in 2009 was restructured with the objective of reaching a broader scope and being more adjusted to the characteristics and needs of the several regions where Dow operates in Latin America – Brazil, South Region (which base is Argentina) and North Region (which base is Mexico).
SolidariDow started to be reformulated in
2009 based on three areas:
internal contest through which employees are encouraged to recommend social projects to
- Volunteerism Activities: scheduling of
receive a yearly donation from the Company.
activities for the engagement of employees
One of the criteria used in the selection of
and their relatives in voluntary activities that
recipients is the employee’s direct participation
benefit the communities that are important for
– primarily as a volunteer – in the suggested
Dow. It includes actions in special dates such as
project. Accordingly, Dow assures support to
the World Environment Day, the International
projects with which its employees are already
Volunteer Day and the International Coastal
identified and committed to.
Cleanup Day that, in 2009, brought together some 1,000 people in the beaches of Guarujá, in the Southern Coast of São Paulo. - Shared Donations: employees are
encouraged to make donations, which are discounted from their payrolls, to United Way, international institution that passes on the funds to social institutions according to its rules. The funds passed on by Dow benefit institutions with operations aligned with the Company’s Social Responsibility strategy. Thanks to the participation of employees, the amount collected increased by 80% in 2009. - Solidary Solutions: very successful program in Latin America’s South Region, it is an
GRI Category
Indicator
Description
2008
2009
Notes
Sustainability
LA2
Habitats protected or restored
new
R$ 1,229 (3 projects in Brazil) million
LA7
Weight of waste
65.5
48.9
In thousand tons (including Rohm & Haas)
LA10
Significant fines and sanctions (in reais)
zero
zero
Values related to health, safety, environment and serious accidents
LA13
Transportation impacts
2
1
Accidents during transportation
LA14
Training about anti-corruption policies
50
118
The increase is related to the merger of Dow and Rohm & Haas
Dow Brazil Sustainability • 23
Sustainability Reports (2009 Global Report)
Since 2009, Dow has been publishing Dow Brazil’s Sustainability Executive Summary with a view
to addressing the Company’s actions and strategies in Brazil and in Latin America. This material does not substitute the Global GRI; on the contrary, it is an introduction to the Company’s activities in Latin America and brings some indicators achieved related to the topic. Yet the 2009 GRI addresses Dow’s global activities and the materialization of sustainability. The report follows the methodology of the Environmental Resources Management (ERM), which, in turn, is based on the International Standard on Assurance Engagements – ISAE 3000. These institutions assure the validity of the data collected, checking processes, content and development of the formal warranty statement. ERM has interviewed collaborators at Dow headquarters, in Michigan (USA) and at Marlborough, Massachusetts, Tarragona (Spain) and Stade (Germany) sites. The analyses took the following criteria into consideration: Understanding Dow’s business and its sustainability strategy on behalf of collaborators; review both the GRI report and other supporting materials; understanding the logistic for the collection of data, processes and systems; inventory of global emissions and Global Asset utilization report; checking data related to the facilities visited; analyze control mechanisms; check facilities; analyze the management process used to change data. ERM evaluated the 2009 GRI report from the following perspectives: • Does the report reflect Dow’s sustainability issues and challenges? • Does it meet the requirements set by the Accountability AA1000 Assurance Standard (2008) regarding the inclusion and materialization of answers? • Does it provide accurate data for the collection of data and presentation of the report? ERM concluded that the 2009 GRI: • Reflects Dow’s sustainability issues and challenges; • Meets AA1000AS (2008) – requirements on materiality, completeness and responsiveness; • Incorporates compiled data from powerful processes; • Provides a reasonable and balanced presentation of the company’s sustainability performance. The 7th GRI 2009 produced by the Dow Chemical Company for the January 01 to December 31 period can be found at www.dow.com/sustainability.