Dow Chemical Faces Significant Environmental and Social Risks: Innovest Report

Strategic Insights -

Dow Chemical, one of the world's largest chemical companies, is facing a multitude of environmental and social risks that could impact its investors and stakeholders, according to a new report by Innovest Strategic Value Advisors Inc. The report, titled "Dow Chemical: Risks for Investors," details the significant unreported or underreported environmental risks facing the company, including asbestos, Agent Orange, and dioxin contamination in its product portfolio. The report is set to be released at a breakfast launch event at the Harvard Club in Midtown Manhattan on April 21st, and will be available online thereafter.

Key Takeaways:

  • The report identifies significant unreported or underreported environmental risks facing Dow Chemical, including asbestos, Agent Orange, and dioxin contamination in its product portfolio.
  • Dow Chemical is facing shareholder questions about the ongoing Bhopal disaster in its most recent proxy statement.
  • The company is dealing with major risks such as asbestos, Agent Orange, dioxin contamination in Midland, Michigan, and numerous other risks relating to toxic chemicals and polluting by-products in its product portfolio.
  • Marc Brammer, the primary author of the Innovest report, notes that the company will be under increasing pressure from investors and potential investors to mitigate these issues.
  • Innovest Strategic Value Advisors is an internationally recognized, independent investment research firm specializing in analyzing "non-traditional" sources of investment risk and out-performance.
  • The report is the most recent of Innovest's extensive work in the chemical sector, following a benchmarking study of major international chemical industry players.
  • An update to this benchmarking study will be available in September 2004.
  • Innovest was selected as the chief technical advisors to the Carbon Disclosure Project, an unprecedented collaboration of 90 financial institutions with combined assets of over $9 trillion under management.

Statistics:

  • The worth of assets under management of the 90 financial institutions participating in the Carbon Disclosure Project is over $9 trillion.
  • Dow Chemical is one of the world's largest chemical companies.
  • The report identifies over 15 specific environmental and social risks facing the company.

Sources:

  • Innovest Strategic Value Advisors Inc.
  • "Dow Chemical: Risks for Investors" report.
  • Globe 2004 Capital Markets Award.
  • Carbon Disclosure Project.
  • Boston Common Asset Management, LLC.
  • Harvard Club.
  • Reuters.