Dow faces risks from fluctuating energy and raw material prices, supply chain disruptions, significant litigation and environmental matters, market acceptance of products, and competition. The company's investments in nonconsolidated affiliates, particularly Sadara Chemical Company, are negatively impacted by macroeconomic conditions. Potential environmental remediation costs are uncertain and could exceed accrued amounts. The company also faces risks related to the ongoing conflicts in Russia and Ukraine, and the Middle East.
Financial Upside
Dow anticipates higher returns to shareholders as economic cycles improve. Growth investments in higher-value businesses and regions with resilient demand and competitive cost advantages are expected to generate over $3 billion in underlying earnings by 2030. The company's strong financial position and access to capital markets support these investments. Acquisitions, like Circulus Holdings, PBLLC, aim to enhance circular economy solutions.
