Climate Change Data

Environmental Metrics

ESG Focus Areas

• Product Stewardship
• Product Design
• Quality Assurance
• Environmental Impact
• Process Safety
• Occupational Health & Safety
• Our People
• Knowledge Management
• Diversity & Inclusion
• Community Education & Involvement

Environmental Achievements

• Achieved a 6.5% reduction in GHG emissions since 2010.
• Achieved a 48.9% reduction in VOC emissions since 2010.
• Achieved a 56.8% reduction in waste to landfill since 2010.
• Achieved a 5.5% reduction in water consumption since 2010.
• 11 manufacturing sites achieved RSPO sustainable palm oil certification, handling over 99% of palm oil derivatives volume.

Social Achievements

• Launched a new Learning Management System ahead of the targeted deadline.
• 30% increase in graduate intake in 2015 compared to 2014.
• 91.2% of employees received training in 2015, totaling over 100,000 hours.
• 6,321 hours of employee time volunteered through our 1% Club community scheme.

Governance Achievements

• Continued supervision by the Group Safety Health Environment and Quality (SHEQ) Steering Committee.
• Involvement of top management through the National Skills Academy for the Process Industries (NSAPI, now known as Cogent) leadership training and planned visits by Board members to manufacturing sites.

Climate Goals & Targets

Environmental Challenges

• Increased energy requirements due to business growth and expansion.
• Changes in the fuel mix utilized by power grids in various countries.
• Operational difficulties with a novel water recovery unit at the Gouda site.
• Areas of concern identified in the social and ethical practices of key suppliers.

Mitigation Strategies

• Investment in renewable energy projects (e.g., bio-gas system at Gouda).
• Relocating a process from Rawcliffe Bridge to Leek for greater efficiency.
• Implementing a phased engagement with key suppliers via Sedex to mitigate risks.
• Implementing a recovery plan for health and safety improvement at underperforming sites.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Code of Conduct
• Engagement with Sedex for social and ethical data assessment.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI G4 Core

Certifications: ISO 9001, ISO 14001, OHSAS 18001, RSPO

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Majestem™
• Atlox™
• Incroslip™
• CrodaTherm™

Awards & Recognition

• Britain’s 8th most admired company
• Top Graduate Employer for the Science and R&D Sector
• Ranked number 15 in the Top 100 Graduate Employers

Environmental Metrics

ESG Focus Areas

• Sustainability: Product, Planet and People

Environmental Achievements

• 14.9% reduction in scope 1 and 2 greenhouse gas emissions intensity since 2015
• 15.9% reduction in total waste sent to landfill since 2015
• 4.4% reduction in water usage since 2015
• 60% increase in sales of products made with RSPO certified palm oil derivatives compared to 2016

Social Achievements

• 82.7% of employees received training
• Global Behavioural Safety Training Programme implemented
• 80% response rate to the employee survey

Governance Achievements

• Completed externally facilitated Board evaluation
• Established a Group Ethics Committee
• Adopted a Diversity and Inclusion programme

Climate Goals & Targets

Environmental Challenges

• Revenue generation in established and emerging markets
• Talent development and retention
• Product and technology innovation
• Protect new intellectual property
• Product liability claims
• Major safety or environmental incident
• Security of raw material supply
• Major capital project management
• Chemical regulatory compliance
• Security of business information and networks
• Ethics and compliance
• Ineffective management of pension fund

Mitigation Strategies

• Global sector sales, marketing and technology teams identify consumer trends and respond swiftly
• Outstanding technical resources are fully integrated into global sector leadership teams
• Specialist IP team participates in technical and business planning
• Reward programmes, strong development culture and excellent learning opportunities support retention
• Sites are certified to demanding external quality standards
• Global network of safety specialists enforce compliance
• Professional purchasing teams monitor supply
• Specialist project management teams are formed for all major capital expenditure programmes
• Global regulatory expertise is provided by in-house specialists
• Information security specialists monitor IT services and network
• Group Ethics Committee meets quarterly
• Close dialogue with the UK Pension Trustee

Supply Chain Management

Responsible Procurement

• RSPO certified palm oil derivatives
• Work with specialists to characterise the physical palm oil derivative supply chains

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Development of energy-efficient products
• Bio-based ingredients

Reporting Standards

Frameworks Used: ISO 26000

Certifications: OHSAS 18001, ISO 14001, ISO 27001

Third-party Assurance: Carbon Smart

Sustainable Products & Innovation

• ECO range of bio-based ingredients

Environmental Metrics

ESG Focus Areas

• Climate Positive
• Land Positive
• People Positive
• Fundamentals

Environmental Achievements

• Reduced GHG emissions by 15.4%
• Reduced water consumption by 16.0%
• Reduced waste to landfill by 33.9%
• Reduced VOC emissions by 13.3%
• Increased non-fossil fuel energy share to 25.0%
• Avoided 839,220 tonnes CO2e emissions through product use (verified by Avieco)
• Increased bio-based organic raw materials to 67%

Social Achievements

• Launched Acts of Kindness initiative, providing £200,000 to support local communities during COVID-19
• Formally incorporated the Croda Foundation
• Increased number of women in leadership roles by 19%
• Increased number of women in direct production roles by 40% since 2018
• Achieved a 0.54 TRIR (Total Recordable Injury Rate) excluding acquisitions and COVID-19 cases

Governance Achievements

• Achieved EcoVadis Platinum medal award (top 1% of assessed organizations)
• Updated SHE Behaviour Standard
• Implemented specific training for leadership teams of newly acquired businesses
• Partnered with the Fair Wage Network to ensure living wages for all employees

Climate Goals & Targets

Environmental Challenges

• Technical reasons prevented reaching the 27% non-fossil fuel energy target.
• Supply chain disruptions due to COVID-19
• Scope 3 emissions (supply chain emissions) represent the majority of total emissions.
• Operational error at Mill Hall site resulted in a notice of violation for effluent discharge.
• Notice of violations received relating to air permitting on the ethylene oxide plant at Atlas Point.

Mitigation Strategies

• Developed decarbonisation roadmaps for top 10 emitting sites.
• Maintained operations and supply chains during COVID-19.
• Collaboration with suppliers to set their own emissions reduction targets.
• Developing a methodology for water impact assessment.
• Corrective actions taken at Atlas Point and Mill Hall sites.

Supply Chain Management

Supplier Audits: 199 suppliers (50% of spend) evaluated by EcoVadis

Responsible Procurement

• Supplier Code of Conduct
• EcoVadis assessments
• CDP Supply Chain engagement
• RSPO certification
• Partnership with Fair Wage Network

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Development of energy-efficient products
• Increased use of bio-based raw materials

Reporting Standards

Frameworks Used: GRI, SASB, TCFD

Certifications: ISO 14001

Third-party Assurance: Avieco

UN Sustainable Development Goals

• Goal 2
• Goal 3
• Goal 5
• Goal 6
• Goal 7
• Goal 8
• Goal 12
• Goal 13
• Goal 15
• Goal 17

The report maps each objective within material areas to show how they contribute to specific targets of relevant SDGs.

Sustainable Products & Innovation

• Microplastic-free seed coatings
• ECO range of bio-based surfactants
• Veritas™ biostimulant
• MicNo™ zinc oxide sunscreen technology
• Phytolea™ range of natural derived oils

Awards & Recognition

• EcoVadis Platinum medal
• Syngenta 2020 Supplier Partnership Award

Environmental Metrics

ESG Focus Areas

• Climate Change
• Land Use
• People Positive
• Biodiversity
• Circular Economy

Environmental Achievements

• 27% reduction in scope 1 and 2 GHG emissions intensity since 2020
• 69% of organic raw materials from bio-based sources
• 951,000 tonnes CO2e emissions avoided through the use of ingredients
• 33,734 hectares of land saved over 2019 baseline

Social Achievements

• 36% of leadership roles held by women
• Croda Foundation established, providing £1m of annual funding
• All employees paid a living wage
• 55 million people protected annually through the use of Croda sun protection ingredients

Governance Achievements

• 1.5°C Science Based Target (SBT) verified
• Commitment to net zero by 2050
• Gender balanced Board as of February 2022
• EcoVadis Platinum award received in 2020

Climate Goals & Targets

Environmental Challenges

• Disappointing progress against personal and process safety targets
• Permit violation notice at one of our recently acquired locations
• Challenges in Asia completing RSPO conversion for palm derivatives
• Increased emissions associated with raw material purchases due to increased production volumes

Mitigation Strategies

• Increased resources and focus on safety targets
• Working with local regulators to gain approval for permit violation
• Working with Action for Sustainable Derivatives to address RSPO challenges
• Developing decarbonisation roadmaps across manufacturing sites, implementing energy efficiency projects, and moving to alternative fuel sources

Supply Chain Management

Supplier Audits: Suppliers representing 65% of spend evaluated for responsible practices

Responsible Procurement

• EcoVadis assessments
• RSPO certification for palm derivatives
• ISCC certification
• NDPE commitments
• Collaboration with Action for Sustainable Derivatives and Together for Sustainability

Climate-Related Risks & Opportunities

Physical Risks

• Increase in natural raw material pricing
• Water scarcity

Transition Risks

• Increased carbon taxation

Opportunities

• Development of energy-efficient products
• Increased use of bio-based raw materials

Reporting Standards

Frameworks Used: GRI, SASB, TCFD, UNGC

Certifications: RSPO, ISCC, UEBT, EcoVadis Platinum, Zero Waste Certification (Iberchem)

Third-party Assurance: Avieco

UN Sustainable Development Goals

• 2
• 3
• 4
• 5
• 6
• 7
• 9
• 12
• 13
• 15
• 17

The report maps how Croda's activities impact various SDG targets across its business units and value chain.

Sustainable Products & Innovation

• ECO surfactants
• Solaveil™ MicNo® range
• Microplastic-free seed coating technology
• Coltide™ Radiance
• LoVOCoat

Awards & Recognition

• Best Raw Material Supplier award from Natura
• Societal contribution award from the American Chemistry Council
• Business of the Year at the World Sustainability Awards

Environmental Metrics

ESG Focus Areas

• Climate Change
• Biodiversity
• Land Use
• Social Inequality
• Global Human Development
• Health & Wellbeing
• Diversity & Inclusion

Environmental Achievements

• Reduced scope 1 and 2 emissions by 19.8% since 2018 baseline.
• Every Croda location completed decarbonisation roadmaps demonstrating how they can achieve a 50% reduction in scope 1 and 2 emissions by the end of 2029.
• Avoided 687,926 tonnes of CO2e emissions through the use of ingredients.
• Increased bio-based organic raw materials to 59.4%.

Social Achievements

• Protected over 61 million people from potentially developing skin cancer (7 years ahead of 2030 target).
• Croda employees donated 5,336 hours through the 1% Club.
• Croda Foundation sustainably improved the lives of at least 300,000 people.

Governance Achievements

• Completed an internal audit of methodologies and responsibilities for collecting data associated with all 2030 non-financial KPIs.
• Increased internal shadow carbon price from £55/tonne to £124/tonne.
• Sustainability considerations for Non-Executive Director appointments and plans for Board-level sustainability competence development in 2023.

Climate Goals & Targets

Environmental Challenges

• High Total Recordable Injury Rate (TRIR).
• Slow market progress in Asia completing palm oil conversion to RSPO.
• Need to work harder to make a real impact on the circular economy post-divestment of industrial businesses.
• 3% increase in upstream scope 3 emissions since 2021.

Mitigation Strategies

• Group CEO and leadership team committed to a fundamental shift in how leadership approaches safety.
• Working with Action for Sustainable Derivatives (ASD) to improve practices.
• Increased resources allocated to supplier engagement and reporting on sustainable sourcing.
• Developing sector decarbonisation roadmaps to include scope 3 emissions.

Supply Chain Management

Supplier Audits: 81% of targeted spend evaluated using EcoVadis

Responsible Procurement

• Supplier Code of Conduct
• Supplier Scorecard
• RSPO certification
• SBTi commitments

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Development of energy-efficient products
• Transition to bio-based raw materials

Reporting Standards

Frameworks Used: GRI, SASB, TCFD, UNGC

Certifications: ISO 14001

Third-party Assurance: Avieco (part of Accenture)

UN Sustainable Development Goals

• SDG 2
• SDG 3
• SDG 5
• SDG 7
• SDG 9
• SDG 12
• SDG 13
• SDG 15
• SDG 17

The report details how Croda's initiatives contribute to these goals through its Climate, Land, and People Positive commitments and Croda Foundation projects.

Sustainable Products & Innovation

• CroBiotic™ 100
• ECO range of bio-surfactants
• Symiro™ biostimulant

Awards & Recognition

• Syngenta Sustainability Award – Carbon Reduction
• India Biologics & Vaccines Outstanding Industry Awards: Best Supplier for Covid-19 Vaccine Development Award

Environmental Metrics

ESG Focus Areas

• Climate Change
• Nature
• People

Environmental Achievements

• Reduced Scope 1 and 2 emissions by 33% since 2018.
• Reduced upstream Scope 3 emissions by 22% since 2018.
• Avoided 812,620 tonnes CO2e through the use of ingredients.
• Saved 58,815 hectares of land (versus 2019 baseline).
• Reduced water usage by 35% versus 2018 baseline.

Social Achievements

• Croda Foundation sustainably improved the lives of more than 22.8 million people worldwide since 2021.
• Increased the number of women in leadership roles to 39% (2022: 38%).
• Reduced Total Recordable Injury Rate (TRIR) from 0.74 to 0.72.
• Delivered over 4,500 hours of safety culture training.

Governance Achievements

• Established a Board-level Sustainability Oversight Committee (BSOC) for 2024.
• Included a sustainability target in the annual bonus scheme for all managers and leaders (10% of the plan).
• Non-financial metrics account for 30% of the long-term incentive plan for senior management.

Climate Goals & Targets

Environmental Challenges

• High inflation and extended destocking impacted Croda’s business.
• Challenges in quantifying upstream scope 3 emissions.
• Slow market progress in Asia for completing RSPO certification for palm oil derivatives.
• Challenges in achieving gender-balanced shortlists for new roles.

Mitigation Strategies

• Introduced a new internal scope 3 dashboard and prioritised work with key suppliers.
• Started receiving primary emissions data from suppliers.
• Targeting primary data from suppliers covering at least 20% of purchased raw material volumes by the end of 2024.
• Working with recruitment agencies, charities and STEM-focused industry groups to improve gender balance in recruitment.

Supply Chain Management

Supplier Audits: 83% of top suppliers participated in EcoVadis assessment.

Responsible Procurement

• Croda Supplier Code of Conduct
• EcoVadis assessments
• Science Based Targets (SBT) for key suppliers
• Supply chain mapping and certification for palm oil derivatives.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Development of energy-efficient products
• Increased demand for sustainable products

Reporting Standards

Frameworks Used: TCFD, GRI, SASB/ISSB review

Certifications: ISCC, RSPO

Third-party Assurance: KPMG (limited assurance)

UN Sustainable Development Goals

• 2
• 3
• 6
• 7
• 8
• 9
• 12
• 13
• 14
• 15
• 17

The SDGs underpin Croda's Commitment. Twenty-three out of the 169 targets that sit below the SDGs are drivers of Croda's strategy.

Sustainable Products & Innovation

• Mel[o]stem™ (100% natural ingredient)
• Crobiotic 100 (probiotic ingredient)
• Atlox BS-50 (delivery system for biopesticides)

Awards & Recognition

• Leadership status (A-) by CDP across Climate, Water and Forest programs.
• Innovation Award from the UK Chemical Industry Association.
• EFCE European Process Innovation Award.
• BSB Innovation Award 2023 (Raw Material – Environment Category for Mel[o]stem™)
• Europharma’s Euro Health Innovation Award 2023 (for Calixcoca vaccine)
• 2023 Sustainability Award at the 8th edition of the Plantum Sustainability Awards (for smart tree seeds).