Each of the intended companies is fueled by the powerful combination of highly complementary portfolios, resources, and capabilities from Dow and DuPont. They will each be positioned better than their predecessors to continue driving innovation, provide superior solutions for customers and better serve communities around the world.
DowDuPont’s collective heritage is impressive, but the significant potential of the partnership is the intention to create three independent companies whose greatest opportunities and most important contributions are yet to come. Each will be committed to making sure that sustainability is central to DowDuPont’s value creation strategy.
DowDuPont, like its heritage companies Dow and DuPont, believes that creating societal value is an important factor in driving long-term shareholder value. Team members were excited by the opportunity to work with other asset creators, asset managers and asset owners to determine measurements that better communicate how the value that they are creating is enhancing the group’s financial performance.
DowDuPont started this project with the knowledge that the group was taking on a very challenging issue in developing leading indicators that demonstrate long-term value. The work has helped clarify how asset owners and managers use information provided directly by a company and the unique pressures that owners and managers face. The work with the Advisory Council and other academics provided additional evidence that those companies that are managing for and communicating about human capital, culture, innovation and contributions to the UN Sustainable Development Goals delivered enhanced shareholder value.
While in the unique position of preparing to separate into three companies, the company has found the work particularly useful as it thinks about its communications to key stakeholders, including the investment community. DowDuPont recognizes that the work of the Embankment Project is not done — much more work is required to hone the recommended metrics and ensure that companies across multiple sectors can provide information that helps asset managers and owners better understand how they can invest in a way that supports better societal outcomes. The key challenge is to build momentum so that a larger group of companies starts to report on key metrics and asset manager and owners start to include the information in their decision making.
Both Dow and DuPont have displayed a proven, decades-long track record of consistently integrating industry-leading sustainability, environmental and social metrics into the company strategy and using those metrics to drive company performance.
Highlights of both companies’ performance were included starting on page 12 of the 2018 Proxy Statement. Additional information about Dow’s and DuPont’s legacy sustainability programs, goals and reports can be found online at the Dow and DuPont sustainability websites.