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Chemical giant The Dow Chemical Company (DOW - Analyst Report) and its environmental partner, The Nature Conservancy (“TNC”), have entered into an agreement with Santa Vitória Açúcar e Álcool Ltda. (“SVAA”), a joint venture between Dow and Mitsui & Co. Ltd.

The collaboration between Dow and TNC will be utilizing SVAA's Santa Vitória site in Brazil for their second pilot project which is aimed at providing benefits to neighboring communities and the society on the whole. The pilot will focus on making better judgments on agricultural lands, increasing accessibility to clean water, and fostering natural habitats along with protecting and restoring important forests.

SVAA is developing the largest integrated plant ever for producing biopolymers from renewable sugar cane, which will be powered to some extent by using waste biomass. The pilot will enable Dow and TNC to study how Dow’s operations affect and are affected by natural surroundings and finally devise ways for implementing sustainable solutions that can be applied both locally and globally.

Dow and TNC are already running a pilot at Dow’s Texas Operations in Freeport. Dow is focused on bringing scientific innovation which will help it understand the significance of natural surroundings on its business. The company is also going to share its findings with other players, enabling them to use it for their own businesses. Dow is going to spend $10 million over a period of five years for pursuing these objectives.

Dow faces stiff competition from EI DuPont de Nemours & Co. (DD - Analyst Report). Currently, the stock retains a Zacks #3 Rank, indicating a short-term Hold rating and we have a long-term Neutral recommendation on the shares of the company.

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