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1P.Dawson/02.02.2008®Trademark of The Dow Chemical Company
EH&S Challenges and Opportunities for Dow in China
2P.Dawson/02.02.2008®Trademark of The Dow Chemical Company
Agenda
•Dow Chemical Company Vision and Mission
•Environmental, Health & Safety (EH&S) Policy
•Challenges In Asia…And Opportunities!
•Business Realities
•Summary
3P.Dawson/02.02.2008®Trademark of The Dow Chemical Company
Our Vision
To be the largest, most profitable and most respected chemical company in the world.
Our Mission
To constantly improve what is essential to human progress by mastering science and technology.
Who We Are
4P.Dawson/02.02.2008®Trademark of The Dow Chemical Company
Who We Are
• A science and technology leader with annual sales of $49 billion • Founded in 1897 by Herbert H. Dow in Midland, Michigan• Supplies more than 3,300 products to customers in 175 countries• 156 manufacturing sites in 37 countries• Employs 43,000 people globally• Ranked 34th and 105th on FORTUNE 500 and FORTUNE Global 500
5P.Dawson/02.02.2008®Trademark of The Dow Chemical Company
What We Do
• Apply science and technology to create innovative solutions for the global marketplace
• Provide innovative chemical, plastic and agricultural products and services• Focus on delivering value to our customers• Respect the diverse cultures and mindsets of our people
6P.Dawson/02.02.2008®Trademark of The Dow Chemical Company
Who We Are In Asia
Doing business in China since 1930’s, opening Hong Kong office in 1957 and Taiwan office in 1968
1979 Dow established its first China office in Guangzhou Today, Dow has:
• 5 business centers in Beijing, Shanghai, Guangzhou, Taipei and Hong Kong
• 10 manufacturing sites and joint ventures in Greater China. Employs over 2,000 professionals Dow continues to invest in the region:
• Yulin Coal-to-Chemicals project• Expanding our Research & Development facilities to become one of
our global centers – will work on developing energy efficient technology
7P.Dawson/02.02.2008®Trademark of The Dow Chemical Company
Dow in Asia Pacific
Sapporo
Kanuma Tokyo
Nagoya
Kinu Ura Osaka Kasaoka
Ogori
Matsuyama Fukuoka
GumiSeoul
Yeosu
Ulsan Zhangjiagang
Nantong
Shanghai
Ningbo
Taipei Hsinchu Nankang
Ping Tung
Zhongshan
Hong Kong
Manila
General Santos City
Perth
Brisbane
AucklandNew Plymouth
Sydney
Altona
Sunbury
Medan
Merak
Jakarta
SingaporePetaling Jaya
Shah AlamKerteh
Bangkok
Map Ta Phut
Ho Chi Minh City
Guangzhou
Wuhan
Beijing
Christchurch
Kasugade
Huzhou
Sendai
Gotemba Niihama
Yokkaichi
Kawasaki
Tawau
Morioka
Business Center
Manufacturing Site
R&D/TS&D Center
• US$5.4 billion sales revenue for 2006
• About 4,000 employees in 13 countries
• Over 60 manufacturing site & office locations
8P.Dawson/02.02.2008®Trademark of The Dow Chemical Company
What is Dow’s Environmental, Health & Safety (EH&S) Policy
At Dow, protecting people and the environment is part of everything we do and every decision we make. Each employee has a responsibility to ensure that our products and operations meet applicable government or Dow standards - whichever is more stringent. - from the Dow EH&S Policy
9P.Dawson/02.02.2008®Trademark of The Dow Chemical Company
Environmental, Health & Safety (EH&S) Challenges
Lack of Government Regulations and Strong, Uniform Enforcement
Lack of EH&S Culture
Lack of Knowledgeable and Experienced EH&S Professionals
10P.Dawson/02.02.2008®Trademark of The Dow Chemical Company
Lack of Government Regulations and Strong, Uniform Enforcement
The Challenge: Dow’s EH&S policies are more stringent that other companies Government does not enforce standards and fines are trivial Government does not have common, fair approach to enforcing standards Fines and penalties are minimal Dow values its reputation and values its right to operate in communities
The Opportunity:Good EH&S performance has helped Dow:
Avoid costs associated with employee injury and illness, environmental remediation, fines and penalties, and even being shut-down
Attract and retain the best people Attract credible partners to form value creating business alliances Strengthen our relationships in the communities where we operate Establish stronger relationships with government officials Demonstrate leadership by sharing best practices with other companies in the region Differentiate ourselves in the market with global customers/partners
11P.Dawson/02.02.2008®Trademark of The Dow Chemical Company
Lack of EH&S Culture
The Challenge: Continue to educate Chinese employees on the importance of EH&S on a personal
and business level Increase awareness among Dow customers and value-chain partners of the property
safety and handling of our products.
The Opportunity:Good EH&S performance has enhanced Dow’s reputation.
Working with State Administration of Worker Safety to share best practices to improve the EH&S performance of other small to medium size businesses
Established safety programs within the communities we operate to educate children and families on safe behaviors
Helps retain good employees Helps protect current and future sales
12P.Dawson/02.02.2008®Trademark of The Dow Chemical Company
Lack of Knowledgeable and Experienced EH&S Professionals
The Challenge Dow’s growth in China is significant and an essential part of our overall business
strategy. In order to be successful we must have competent EH&S professional to
implement our programs at manufacturing and R&D facilities as well as product stewardship programs.
Competition for talent is fierce and it can be difficult to keep the best peopleThe OpportunityGood EH&S performance has:
Built Dow’s reputation as a best-in-class employer, allowing us to be more successful than other Western companies at attracting and retaining EH&S professionals
Demonstrated to EH&S professionals that they will be valued by Dow and will have many more leadership opportunities
Provided EH&S professionals with opportunities to learn and grow within their field of study
13P.Dawson/02.02.2008®Trademark of The Dow Chemical Company
Business RealitiesIn Asia
•Growth - Is - Tremendous!Must be “sustainable
•Asia Business Practices Are DifferentEthics and ComplianceGovernment and Industry CooperationWestern Companies Must Learn“Know Who” vs. “Know How”
•Western Mindset Asian MindsetLegal vs. RelationshipLogic vs. LogicRelationship vs. Legal
•Environmental Issues Must Be Addressed In a Business Strategy
•Development and Retention of Local People Is Critical To Success
14P.Dawson/02.02.2008®Trademark of The Dow Chemical Company
Summary
•Environmental Challenges In Asia…Must Be Viewed As Opportunities
•Dow Chemical is Providing Environmental Leadership
•People and Technology Turn Environmental Challenges Into Business Opportunities
15P.Dawson/02.02.2008®Trademark of The Dow Chemical Company