Andrew Liveris, President, CEO and Chairman, The Dow Chemical Company
Notes from Wall Street Journal ECO:nomics Conference
Santa Barbara, California
March 12-14, 2008
Another impressive CEO, who clearly knows his stuff, Andrew Liveris talked about world energy costs rising from $8 billion in 2002 to $26 billion last year. Commenting on Cap and Trade, Liveris explained that market volatility and instability is an issue that makes achieving margins very difficult.
Humans Have An Environmental Impact
As a US company that for some time has been managed by non-US born CEOs, Dow Chemical’s approach is to adhere to the “best” standards in the global market.
When the question came up on whether this [Eco, Carbon, etc.] is a business opportunity or a “should” the response was “all of the above.” Liveris provided the example of how Chinese companies were implementing sustainability measures in an effort to win production through “good will.”
Dow Chemical’s goals for the period of 2005-2015 intend to capitalize on the opportunity of population growth, through:
- Affordable housing
- Clean water
- Health
- Nutrition
“I am a scientist,” Liveris stated point blank “there is a human impact.” Does one really need to be a scientist to figure this out…
The audience was polled for the first time. Using little remote control devices we were asked to select responses based on questions posted on a Powerpoint slide. On a yes/no question, 75% of the audience polled believed that there could be a 50% reduction in CO2 by 2050.
Liveris commented, “we are so wasteful as a society.” Why not teach consumers this can be done.
Need for a US Energy Policy
Affordability of change influences the pace of business efforts. Government needs to step in. Liveris complained that he spent $60 Billion in capital outside of the US last year because of the US energy policy context. The US needs a coherent energy policy so that companies can determine their stance and start taking action. Today 80% of Tcf Natural Gas is not accessible. He said that Natural Gas needs to be put back on the table as every energy input needs to be on the table – “this is the price of being on the planet.” Liveris provided stats about Michigan where the average consumer’s bill has doubled in the last 4 years -- and it's cold in Michigan -- the bill could represent 40% of a consumer’s income.
Liveris was asked to comment on Washington lobbying and said, “why am I there trying to herd cats?” He implied that he didn’t want to be herding cats – that it’s a waste of his time - and threw out a statement that sounds like a cheer, “this country has skill, needs the will.” He provided the example of acid rain and the achievement of the Clean Air Act as a fix.
“Volatility and uncertainty kill demand”, was Liveris response to questions regarding Dow’s climate change interests/motivations. He stated that a signal at the 50-60%+ CO2 reduction level was needed to be a sufficient signal.
About the author; Revi Schlesinger heads RVN Consulting, a network of experts aligning to support the success of large-scale corporate sustainability integration initiatives. Continue the conversation at www.ReviSchlesinger.com/blog.html
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