A Quick Look at Dow Feeding the World Life Cycle Analysis Role in Improving Food Supply

2. A Quick Look at Dow Feeding the World Life Cycle Analysis Role in Improving Food Supply Questions and Answers Agenda 2 ®™Trademark of The Dow Chemical Company (“Dow”) or an affiliated company of Dow

3. A Quick Look at Dow • Our Mission • To passionately innovate what is essential to human progress by providing sustainable solutions to our customers • Key Facts • Founded in 1897 by Herbert H. Dow in Midland, Michigan, USA • Supplies a broad range of products and services to customers in approximately 160 countries • More than 5,000 products manufactured at 188 sites in 35 countries • Employs ~50,000 people worldwide • Sales revenue of USD 53.7 billion in 2010 • 2010 R&D spending of USD 1.7 billion 3 ®™Trademark of The Dow Chemical Company (“Dow”) or an affiliated company of Dow

4. Packaging – a Strategic Focus for Dow Dow in Packaging: $8 billion • Packaging resins • Specialty adhesives • Specialty films Flexible Packaging $81 Billion Rigid Packaging $114 Billion Paper & Board$145 Billion Metal, Glass & Other $160 Billion Global Packaging Industry = $500 Billion Source: 2010 Dow estimates 4 ®™Trademark of The Dow Chemical Company (“Dow”) or an affiliated company of Dow

5. A Quick Look at Dow Feeding the World Life Cycle Analysis Role in Improving Food Supply Questions and Answers Agenda 5 ®™Trademark of The Dow Chemical Company (“Dow”) or an affiliated company of Dow

6. We Need More Food on the Global Dinner Table • Population is growing  200,000 new mouths to feed every night • Global population will grow by >30% between now and 2050 • Arable land for food production is finite • Will grow by only 5% by 2050 – mostly in Sub-Saharan Africa and Latin America • In 2008, homo sapiens became a majority urban species*; most of the world’s food now has to travel great distances from farm to mouth 6 * According to 2011 State of the World – Innovations that Nourish the Planet, The Worldwatch Institute, published January 12, 2011 ®™Trademark of The Dow Chemical Company (“Dow”) or an affiliated company of Dow

7. One-third of the food produced for human consumption in both developing and developed markets – about 1.3 billion tons per year – gets lost or wasted* Innovative food packaging can improve both, food preservation and food safety More Food on the Global Dinner Table 40% lost in processing, distribution and household handling 28% lost to post-harvest spoilage and animal feed 100% of food harvested globally * Source: Food and Agriculture Organization of the United Nations, May 2011 7 ®™Trademark of The Dow Chemical Company (“Dow”) or an affiliated company of Dow

8. More People with Greater Need for Good Packaging Increasing wealth around the world can lead to increased demands on packaging • Consumerism • Easy opening • Re-closable • On the go consumption • Portion Packs • From freezer to microwave • Healthy food • Food safety – increased regulations 8 8 ®™Trademark of The Dow Chemical Company (“Dow”) or an affiliated company of Dow

9. Innovative packaging can be Lighter and easier to transport Preserving food longer than traditional packaging Adapted to address specific geographic needs Delivering new or added functionality Innovative Packaging can be One Answer 9 ®™Trademark of The Dow Chemical Company (“Dow”) or an affiliated company of Dow

10. A Quick Look at Dow Feeding the World Sustainability and Life Cycle Analysis (LCA) Questions and Answers Agenda 10 ®™Trademark of The Dow Chemical Company (“Dow”) or an affiliated company of Dow

11. Dow Thoughts on Sustainability “Sustainability requires making every decision with the future in mind.  It is about our relationship with the world around us – creating economic prosperity and social value while contributing to the preservation of the planet."  11

12. Understanding Sustainability • Narrow definitions of sustainable products • Bio-based / renewable • Compostable / biodegradable • Recycled • The problem with these definitions • Sustainable attributes ≠ sustainability per se • Traditional products  different sustainable attributes • Our approach • Full life cycle thinking = key to understanding sustainable solutions 12

13. Life Cycle Analysis/Thinking Source: UNEP 13

14. LCA Examines Many Different Parameters • For example: • Total energy requirement of the value chain to deliver the functional unit • Global warming potential (carbon footprint) • Measures emissions of all greenhouse gases in units of carbon dioxide equivalents (CO2- eq) by weight; Note: Carbon footprint is just one derived parameter from LCA • Total system fresh water requirement; • Ozone depletion potential; • Acidification potential; • Photochemical ozone creation potential (POCP); • Etc. Focusing on just one parameter can be misleading! 14

15. Which One is Best? • Generally, in any LCA comparison, one solution will look better against some parameters and worse against others. Decisions frequently involve trade-offs 15

16. Packaging Life cycle thinking & life cycle assessment decision support is crucial PO43- CH4 NOx CO2 Resources 16 Reworked graph from L. Lundquist, Nestlé Research Center

17. Consider the Needs of the Entire Product Life Cycle • PRODUCT MFRS. • Mfg Efficiency • Faster Packing Speeds • Improved Product Protection • Less re-work • CONSUMERS • Easier to Open/Close • Easier to Cook • Less Refrigeration • Longer Shelf Life • Greater Pkg. Functionality • MATERIALS SUPPLIER • Energy Efficiency • Bio-based Materials and/or Additives • Renewable Feedstocks • DISTRIBUTION AND RETAIL • Better Food Preservation and Product Protection • Lower/Easier Transportation • Longer Shelf Life • Reduced Need to Restock • END-OF-LIFE • Re-use/Recycle • Recycle-to-Energy • Chemical Transformation • Composting • Landfil • Litter/Marine Debris • PACKAGE MFRS. • Easier extrusion • Reduced scrap • Down-gauged or Light-weighted materials 17

18. Make Lasting Change with Life Cycle Analysis (LCA) Life cycle thinking is an objective, scientific approach and provides a comprehensive view of a product from cradle to grave: • It is critical to look at a product’s application and its function. • It is not appropriate to compare a Kg of one material to a Kg of another material because different materials require different weights. • A balanced look at end-of-life options is also necessary. • Being compostable is a desirable attribute where composting is readily available, but could be undesirable if the item is disposed of in a landfill. • Packaging is part of a product delivery system, not separate from it. • Reducing the amount of packaging, and then throwing away the product because of damage or spoilage, wastes far more resources. 18 ®™Trademark of The Dow Chemical Company (“Dow”) or an affiliated company of Dow

19. LCA Helps Make Better Choices for Beverage Pkg. Beverage Packaging • The flexible beverage pouch: • Consumes ½ the energy of the closest alternative • Generates 75% less emissions than the closest alternative • Significantly reduces greenhouse gases released and energy consumed in transport of unfilled packages from converter to filling operation 19 Source: Flexible Packaging Association; Cradle-to-grave energy consumption and CO2 emissions data developed by Battelle Memorial Institute

20. LCA Helps Make Better Choices for Cereal Pkg. • Dow internal calculations based on: • System boundary: Raw Material Cradle-to-Gate, plus recycle • *Discards = package mass – recycle stream • Cereal box assumptions • ― 100% recycled content • ― 30% recovered to recycle stream † • **Lifecycle inventory data sources: • ― Paper: Environmental Defense- • www.papercalculator.org • ― EVA: The Dow Chemical Company • ― Other Plastics: Boustead Model V5 • †From The ULS Report, February 2007

21. Plastics LCA Extends Far Beyond Food Packaging

22. Conclusion ®™Trademark of The Dow Chemical Company (“Dow”) or an affiliated company of Dow

23. Conclusion – LCA is the Right Tool for this Industry Life cycle thinking is an objective, scientific approach and provides a comprehensive view of a product from cradle to grave: • It is critical to look at a product’s application and its function. • It provides a balanced look at end-of-life options. • It provides a tool that can be shared across the value chain and promote better, linked decision making. 23

24. Thank You! ®™Trademark of The Dow Chemical Company (“Dow”) or an affiliated company of Dow