Dow Chemical - Issue Summary
Dow Chemical shareholders are being asked to vote on a resolution seeking a report to provide greater transparency and accountability on potential future liabilities related to dioxin and persistent toxics.

Significant new liabilities could be represented by new class action by Michigan residents alleging dioxin contamination, and lawsuits by Plaquemine, Louisiana residents alleging water contamination with vinyl chloride.

This action closely follows Dow’s announcement in December that identified long-term estimates of the costs of asbestos liabilities at recently acquired Union Carbide at $2.2 billion. Just as Dow management put off calculating its asbestos liabilities at Union Carbide, it has failed to assess potential risks and disclose its long-term dioxin liabilities.

This resolution asks the company to:

• Account to investors for the array of costs and liabilities associated with dioxins and other persistent bioaccumulative toxics generated at Dow facilities and in Dow products.
• Report on its plans for remediation and for prevention of future risks.

The Dow opposition statement claims that its website on dioxin contains the needed information and the report requested in the resolution would be duplicative. This is not the case.

The Dow website does contain information on Dow's ongoing dioxin emissions, and progress in reducing emissions; and limited data on dioxin contamination in Midland, Michigan and New Plymouth, NZ.

The Dow website does NOT:

• Provide projections, similar to Dow’s new asbestos calculations, on the largest potential dioxin liabilities and market risks.
• Inform investors on the extent of contamination at existing Dow facilities or quantify the associated long-term liabilities as requested in the resolution.