In Dow Inc.’s third-quarter conference call with stock analysts, Chairman and CEO Jim Fitterling talked about the debate over virgin resin production caps in the United Nations plastics treaty.
Fitterling was surprised by the Biden administration’s decision to back caps on virgin resin production, but he added that “there is certainly no alignment around the world on production caps or bands in that agreement.”
The idea of capping virgin resin production is controversial, but the idea is getting more attention as the talks move toward their fifth and final scheduled round of negotiations, set for Nov. 25 to Dec. 1 in Busan, South Korea.
“We think we're all surprised by the shift in positioning of the [Biden] administration, but we're not at the end of this process yet,” Fitterling said. “And so we continue to advocate that we focus on the issue — which is plastic pollution — focus on the solutions, which are circularity policies, recycled-content mandates, extended producer responsibility schemes, all forms of recycling and dealing with the pollution part of the situation.”
Fitterling gave a strong pitch for plastics in reducing carbon emissions, highlighting Dow’s plan to build the world's first net-zero carbon emissions ethylene cracker in Fort Saskatchewan, Alberta.
“Plastics are the lowest carbon footprint products that are out there. They are easiest to use, they're the cheapest to use. They have the best sustainability footprint. And as we convert to making them with Zero Scope 1 and 2 emissions like we're going to do at the Fort, nothing — no alternative will be able to touch the sustainability footprint.”
In the call, Fitterling also announced plans to carry out a strategic review of some of Dow’s assets in Europe, primarily in its polyurethanes business.