Founded in 1897, Dow is a household name as one of the world’s leading materials science companies, serving customers in high-growth markets such as packaging, infrastructure, mobility and consumer applications. Dow’s stated ambition is to be the most innovative, customer-centric, inclusive, and sustainable materials science company.
The Company has set sustainability targets, designed to advance a circular economy and protect the climate. In 2024, Dow issued its inaugural Green Bond in two tranches, chiefly to support its project to build the world's first net-zero Scope 1 and 2 emissions ethylene and derivatives complex in Alberta, Canada.
How has your career journey led you to this role?
After obtaining an engineering degree, I worked at several consulting companies in Italy, and then moved to the U.S. and earned an MBA in Finance.
I started my Treasury career 20 years ago and assumed my current role in 2021 after almost eight years working in the Middle East. While there, I worked for two of Dow’s joint ventures, serving as the Assistant Treasurer at Sadara in Saudi Arabia, before moving to Kuwait, where I was Corporate Treasurer at Equate.
In my current role at Dow, I’m in charge of capital markets, which includes managing global relationships with all of our banking partners, ensuring access to capital, advisory, and transactional services. This role also entails leading our sustainable financing activity, including execution of our Green Bond program.
Ten years ago, Dow introduced sustainability goals for 2025. How has Dow performed against these goals and how is Dow thinking about sustainability strategy over the next decade and beyond?
Dow has a long history of advancing sustainability initiatives, having progressed through three generations of 10-year sustainability goals and it is inherent in our long-term value proposition.
These goals have focused on improving the sustainability of our operations and our products while providing thought leadership to advance sustainability more broadly. Dow is committed to integrating sustainability into our business strategy to create value for all stakeholders and make a positive impact on society.
We are committed to delivering a sustainable future through our materials science expertise and collaboration with our partners and publish our goals and progress in our annual INtersections report. While our goals continue to evolve, we are proud that of the seven 10-year 2025 Sustainability Goals, we achieved four by the end of 2023, and we are on track or in progress for the remaining three.
Looking ahead, we are actively aligning our business and sustainability strategy, operational footprint, product offerings, and technologies to unlock new sustainable growth opportunities within the markets we serve and deliver long-term value for our stakeholders.
‘We are committed to integrating sustainability into our business strategy to create value for all shareholders and make a positive impact on society.’
Andrea Vigo, Senior Global Director of Capital Markets and Sustainable Financing, Dow
In 2024, Dow issued its inaugural Green Bond in two tranches. What was the rationale for establishing Dow’s Green Bond program?
Establishing a Green Bond program was a natural next step in Dow’s sustainability strategy, and issuing Green Bonds allowed investors to participate in our strategy to decarbonize and drive circularity. Our Green Finance Framework was established to further integrate our sustainability strategy across operating and market segments, and the Framework outlines how we align to internationally-accepted best practices to issue under a green label. Green project categories defined in the Framework directly align to Dow’s sustainability targets focused on climate protection and circular economy.
Your inaugural Green Bonds primarily fund Dow’s Fort Saskatchewan, Alberta Path2Zero project – what does that project entail?
In February 2024, we issued $1.25 billion in dual tranche Green Bonds. As of December 31, 2024, Dow has allocated the full net proceeds of the Green Bond to help fund investments and expenditures toward decarbonization projects, circular economy-adapted products and process technologies, renewable energy and energy efficiency projects, in line with our Green Finance Framework.
65% of the net proceeds of our Green Bond has been allocated to expenditures for the development and construction of our decarbonization project in Alberta, Canada -- Fort Saskatchewan Path2Zero Expansion Project. In 2023, Dow’s Board of Directors approved the final investment decision for this project. The Path2Zero Project requires a total investment of approximately $6.5 billion on a gross basis, excluding governmental incentives and subsidies of around $1.5 billion which bring the net spend to around $5 billion. It converts cracker off-gas into hydrogen as a clean fuel for ethylene production.
The result will be the world’s first net-zero emissions integrated ethylene cracker and derivatives site with respect to scope 1 and 2 emissions. It will decarbonize about 20% of Dow’s global ethylene capacity.
What was the response from investors to Dow’s Green Bond offering?
The book was almost 10x oversubscribed. We had over 200 unique investors, which represents a significant improvement in participation over a traditional bond issuance. We were able to attract more than 50 ‘dark green’ investors among a total of 75 new investors who had never participated in our issuance before. We also estimate that we were able to achieve 5 basis points and 10 basis points of savings (or “greenium”) across the 10-year and 30-year tranches attributable to the Green label.
While this was our first Green Bond, we have been to the market numerous times with regular-way bonds and have a stable group of investors. By issuing under the Green label, our aim was to attract an additional set of investors, particularly so-called ‘dark green’ investors, who focus on sustainability – which we achieved with our inaugural Green Bond offering.
In terms of how Green Financing will play into our future funding needs, we have many other projects that would fit within the eligibility criteria listed in our Green Finance Framework. Of course, we will be looking at investor sentiment and market conditions in the changing political environment.
‘By issuing under the Green label, our aim was to attract an additional set of investors, particularly so-called ‘dark green’ investors, who focus on sustainability – which we achieved with our inaugural Green Bond offering.’
Andrea Vigo, Senior Global Director of Capital Markets and Sustainable Financing, Dow
What are the other major sustainability projects under way?
A key pillar of our sustainability strategy is focused on advancing a circular economy. Our acquisition of Circulus, a U.S.-based mechanical recycler, will enable Dow to provide customers with high-performance circular resins suitable for collation shrink packaging, stretch film and liners for a wide range of applications in the industrial, consumer and transportation markets. It will also help us advance our Transform the Waste target.
Another project that's extremely interesting to me as an engineer is our agreement with X-energy, a developer of advanced small modular nuclear reactor and fuel technology. We are now working with them on a project to develop the first grid-scale advanced nuclear reactor plant for an industrial site. The idea is to install X-energy’s Xe-100 high-temperature gas-cooled reactor technology at Dow’s site in Seadrift, Texas, providing the site with safe, reliable, low-greenhouse gas emissions energy, as well as clean industrial steam, which is another key component of our production cycle.
Lastly, what advice would you offer to companies thinking about an inaugural labeled issuance?
Start early. Coordination and alignment across various teams are key to success. A successful green bond issuance is a team sport! We set up a cross-functional sustainable financing committee to provide strategic guidance and engaged the auditors early in the process. Most importantly, a Green Bond should not be viewed as a standalone initiative – it must be seamlessly integrated into a well-defined strategy that aligns with your company's overarching vision. To maximize its impact, you must clearly articulate to investors the purpose of the bond, how the proceeds will be utilized, and how it fits within the broader goals of your organization.
‘A Green Bond should not be viewed as a standalone initiative – it must be seamlessly integrated into a well-defined strategy that aligns with your company's overarching vision.’
Andrea Vigo, Senior Global Director of Capital Markets and Sustainable Financing, Dow
