Environmental Toxins
2005 – Dow Chemical Company
Whereas:
- The U.S. Centers for
Disease Control recently reported on the testing of 9,282 people
nationwide. The study found that 93% of the US population has levels of
chlorpyrifos metabolites in their bodies.
The average tested child aged 6-11 was found to have exposure to
the neurotoxic pesticide chlorpyrifos at four times the level the U.S.
Environmental Protection Agency considers acceptable for long term
exposure. One market analysis concluded that Dow Chemical was likely to
have contributed at least 80% of the chlorpyrifos exposure in the U.S.
Although all residential uses of chlorpyrifos were phased out beginning in
2000,
agricultural and industrial uses are still
allowed.
In
the opinion of the proponents, such test results will aid the correlation of
exposure to disease, and increase the likelihood of liability suits against
chemical producers, including our company.
- Dow’s Midland,
Michigan facility releases dioxin to air, land and water. The surrounding
city and floodplain are contaminated with dioxin. Levels detected downriver are up to 80
times the state's residential cleanup standard, and blood testing has
detected dioxin levels above average in some residents. State advisories warn residents to
limit exposure to contaminated soil and consumption of fish and wild game.
A class action lawsuit representing up to 2000 residents asserts property
damages and seeks medical monitoring.
- The herbicide Agent
Orange was contaminated with dioxin, exposing soldiers and residents in
Vietnam. US and Vietnamese
veterans and their families are suing Dow for compensation. A 2003 Supreme
Court decision may allow thousands of new US veterans’ suits to proceed.
- Emerging public
policies may alter markets for certain Dow product lines. The European Union proposes requiring
manufacturers that sell chemicals to provide data on hazards and uses, and
to require approval of certain "very high concern" chemicals,
including persistent and bioaccumulative toxins (PBT), carcinogens,
mutagens and reproductive toxins. The Stockholm Treaty on Persistent
Organic Pollutants and the Great Lakes Water Quality Agreement both
encourage elimination of PBT products and precursors.
In the proponents’ opinion, management’s
disclosures obscure rather than clarify important policy issues confronting Dow
because they fail to:
§
Analyze
implications for the company of the human blood testing trend, including the
CDC tests showing pervasive exposures to chlorpyrifos;
§
Describe how
public policies may restrict markets for each category of Dow product lines,
including under the Stockholm POPs treaty, emerging state programs, and the
proposed European REACH program;
§
List Dow
products anticipated under the proposed European “REACH” program to require
specific authorization or be restricted; and,
§
Provide a
plan and timeline for phase-out of each product involving a
PBT chemical or byproduct, or an
explanation of why alternatives cannot be substituted, explaining how the
company will respond to rising regulatory and market pressures to eliminate
these substances.
RESOLVED: Shareholders request that the Board publish by October
2005, at reasonable cost and excluding proprietary information, a report
filling the gaps in transparency discussed above.