Dow Chemical Company (A): The WRAP Program

This case study describes the Waste Reduction Always Pays (WRAP) program implemented by the Louisiana Division of the Dow Chemical Company. Originally evolving from an energy-saving contest in 1981, WRAP was formally announced in 1986 to reduce pollution and operating costs through employee-led innovation. The program utilizes a competitive submission process where projects are evaluated on technical viability and return on investment (ROI), rewarding winners with public recognition and project leadership roles rather than direct financial prizes.

• The WRAP program evolved from a 1981 energy contest initiated by the Louisiana Division to address capital scarcity caused by oil price shocks and a corporate shift toward specialty chemicals. While it began with energy savings, it expanded to include yield improvement and eventually waste reduction, though it continued to include energy projects under the name Energy/WRAP.
• The implementation of WRAP in 1986 was influenced by external pressures, including a 1985 congressional committee request for a corporate-wide emissions summary, pressure from environmental groups, and the upcoming reporting requirements of SARA Title III.
• Dow established a hierarchy of pollution policy options, prioritizing pollution prevention at the top, followed by reuse or recycling, then waste treatment (preferably on-site), and finally disposal in secure landfills.
• To incentivize waste reduction, Dow used full-cost accounting, charging specific units for the management of the waste streams they produced. This ensured that costs for incineration, treatment, or landfill were borne by the products and processes responsible rather than being hidden in overhead accounts.
• The program's financial requirements evolved over time; while it initially required a return on investment (ROI) of at least 100% during a period of high interest rates, the cutoff was later lowered to 30%, with a minimum required saving of $10,000 per project.
• Employee motivation was driven by non-financial rewards, including distinctive plaques presented by the general manager, visibility among peers, and the opportunity to lead the implementation of their own projects. Success in the contest was also perceived to influence promotions during annual performance reviews.
• By 1992, the WRAP program demonstrated significant quantitative success, achieving a 55% return on investment, savings exceeding $10 million, and a reduction of 13 million pounds of waste. The number of winning projects increased from 24 in the first full year to 54 by 1992.

APA

Baker, K. (1994). Dow Chemical Company (A): The WRAP Program. World Resources Institute. https://pdf.wri.org/bell/case_1-56973-140-3_full_version_a_english.pdf

Chicago

Baker, Kenneth. Dow Chemical Company (A): The WRAP Program. World Resources Institute, 1994. https://pdf.wri.org/bell/case_1-56973-140-3_full_version_a_english.pdf.

Wikipedia

{{cite report |last1=Baker |first1=Kenneth |title=Dow Chemical Company (A): The WRAP Program |publisher=World Resources Institute |date=1994 |url=https://pdf.wri.org/bell/case_1-56973-140-3_full_version_a_english.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{baker1994dow, author = {Baker, Kenneth}, title = {{Dow Chemical Company (A): The WRAP Program}}, institution = {World Resources Institute}, year = {1994}, url = {https://pdf.wri.org/bell/case_1-56973-140-3_full_version_a_english.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }