Climate Change Data

Environmental Metrics

ESG Focus Areas

• Reducing carbon
• Saving waste
• Improving people’s lives

Environmental Achievements

• In 2021, 29% of the volume sold was carbon neutral
• Redesigned plastic packaging rolled out to 7 countries
• In 2021, 48% of Castrol’s sales were from products which qualified to be part of the PATH360 family

Social Achievements

• Aiming to improve mechanic education, supporting sustainable livelihoods, and focusing on customer inclusion

Governance Achievements

• Established a governance process for reviewing qualifying criteria, including technical experts and Castrol’s leadership team

Climate Goals & Targets

Environmental Challenges

• Reducing life-cycle carbon emissions across the value chain
• Helping customers achieve their sustainability goals

Mitigation Strategies

• Developing products and services that support the world’s transition to renewable energy and sustainable technologies
• Developing carbon offset backed offers to support commercial customers
• Investing in and developing products and services that support the world’s transition to renewable energy and sustainable technologies

Supply Chain Management

Responsible Procurement

• Encouraging supply chain to decarbonise
• Collaborating to source lower carbon raw materials

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GHG Protocol’s Product Standard, GHG Protocol’s corporate value chain standard, PAS 2060

Third-party Assurance: Ricardo Energy & Environment

Sustainable Products & Innovation

• Castrol ON e-fluids range for EVs
• Castrol Optigear Synthetic X320 for wind turbine gears
• Techniclean XBC range of recyclable cleaners

Environmental Metrics

ESG Focus Areas

• saving waste
• reducing carbon
• improving people’s lives

Environmental Achievements

• Introduced new light-weight bottle designs for medium packs, reducing plastic use by 20% per bottle (2021)
• Launched Castrol POWER1 ULTIMATE in 100% recycled bottles, made from reprocessed plastic waste (2022)
• Reduced specific power & fuel consumption across manufacturing plants by 8% to 13% due to multiple energy efficiency initiatives.
• Successfully registered as Brand Owner and Importer with the Central Pollution Control Board (CPCB) and have a well-planned Extended Producer Responsibility (EPR) in place to ensure compliance with recycling of an equivalent quantity of plastic used for our packaging getting generated as waste post-consumer use.

Social Achievements

• CSR initiative, ‘Sarathi Mitra’, supported 169,000 truck drivers’ health, wellbeing, and livelihoods (2022)
• CSR program for mechanics, Castrol Eklavya, reached 244,000 mechanics (2022)
• Rolled out an EV-readiness training program for 200 mechanics in Delhi and Chennai (2022)
• Women held 20% of managerial positions and overall representation of women employees stood at 16% (2022).

Governance Achievements

• Implemented Program – Quality Energizer to implement risks reduction measures and best practice sharing across manufacturing sites.
• Completed recertification audits of ISO 9001:2015 and IATF 16949:2016 standards (2022)
• Silvassa plant received Ford Q1 recertification (2022)

Climate Goals & Targets

Environmental Challenges

• Volatile and difficult business environment with rising input costs, increased forex & inflationary challenges
• Supply chain disruptions due to Russia-Ukraine crisis and adverse Forex
• Unprecedented rise in input costs combined with supply chain disruptions due to Russia-Ukraine crisis and adverse Forex
• Inflationary pressures
• Intense competition in the Indian lubricants market
• Digitally-enabled service ecosystems gaining prominence
• Growing electric vehicle (EV) market
• Risk of attrition due to opportunities for employability

Mitigation Strategies

• Strategic pricing decisions to maintain an optimal price-volume mix
• Strategic sourcing of raw materials for supply security and cost avoidance
• Value improvement initiatives and continuous monitoring of costs
• Best value purchase model and value-based inventory management
• Enhanced play in service & maintenance, rural expansion, and strategic collaborations with leading industry players
• Strategic collaboration with ki Mobility Solutions
• Investment in training car and bike mechanics with a unique EV-readiness training program
• Appropriate strategic and pricing interventions as well as cost and efficiency management program

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• HSSE clauses embedded as part of supply agreements

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI, SASB, TCFD, UNGC

Certifications: ISO 9001:2015, ISO 14001:2015, ISO 45001, IATF 16949:2016, Ford Q1

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Castrol POWER1 ULTIMATE in 100% recycled bottles

Awards & Recognition

• Platinum award at the Apex India Occupational Health & Safety Awards 2022
• Best Innovative CSR Project award for Eklavya & Sarathi Mitra
• Best Use of Machine Learning Award for Castrol POWER1 ULTIMATE campaign
• Product of the Year 2022 for Castrol Magnatec

Environmental Metrics

ESG Focus Areas

• Waste reduction
• Carbon emission reduction
• Improving people's lives
• Employee well-being
• Diversity and Inclusion
• Sustainable supply chain
• Responsible governance

Environmental Achievements

• 27% Reduction in Scope 1 and 2 operation emissions in 2023 vs. 2022
• 100% Renewable electricity at Patalganga Plant
• 1,800 Metric Tonnes Reduction per annum in virgin plastic consumption through PCR 8 packaging design
• 100% PCR bottles for the POWER1 range
• 100% collection of plastic packaging waste, amounting to 10,321 Metric Tonnes during 2023
• 30% PCR in the blow-moulded HDPE bottles
• 2,600 Metric Tonnes Reduction in carbon emissions per annum by replacing virgin plastic with PCR 8 packaging.

Social Achievements

• Castrol Sarathi Mitra initiative impacting truck drivers' road safety awareness, work-life quality, preventive healthcare, and financial literacy.
• Castrol Eklavya initiative enhancing mechanics' technical skills, service efficiency, customer relationships, earnings, and digital financial literacy.
• Ujjwal Kal initiative contributing to community well-being in areas surrounding Castrol plants.
• Training over 1000 mechanics for EV readiness
• Empowered over 18,000 mechanics through Castrol Super Mechanic Learning Academy

Governance Achievements

• Prioritising transparency and good governance
• Robust policies and governance frameworks to ensure ethical business practices
• Implementation of digital tools and apps to streamline processes, standardise data management, strengthen controls, enhance customer responsiveness, and manage quality performance in real-time.

Climate Goals & Targets

Environmental Challenges

• Volatile raw material markets
• Global events impacting raw material prices
• Depreciation of the Indian Rupee
• Inflation impacting consumer demand
• Electrification of vehicles
• Widening drain intervals for lubricating fluids
• Intense competition in the Indian lubricant market

Mitigation Strategies

• Proactive management and understanding of market forces
• Strategic sourcing and long-term contracts
• Value improvement initiatives
• Prioritizing service and quality
• Vigilant cost monitoring
• Value-based inventory management
• Focus on cash costs and working capital
• Investing in EV fluids and OEM alliances
• Expanding product range and brand-building activities
• Strengthening Castrol Auto Service network and developing new formats such as Castrol Express

Supply Chain Management

Responsible Procurement

• bp’s code of conduct and supplier expectation guidelines
• Annual awareness programs on code of conduct with distributor partners

Climate-Related Risks & Opportunities

Opportunities

• Development of energy-efficient products
• Transition to renewable energy sources

Reporting Standards

Frameworks Used: National Guidelines on Responsible Business Conduct (NGRBC)

Certifications: ISO 9001:2015, ISO 14001:2015, ISO 45001:2018, IATF 16949:2016 (two plants)

Sustainable Products & Innovation

• Castrol ON EV transmission fluids
• BS-VI engine lubricants
• Products with higher specifications, lower viscosity, improved efficiency

Awards & Recognition

• INDIASTAR award for Castrol anti-counterfeit pail pack
• Golden Peacock Award for Patalganga plant
• Apex Safety Award for Silvassa Plant
• ICC Safety Award for Paharpur Plant
• Platinum award for Silvassa plant in ‘Apex India Quality Excellence 2023’
• Top Ten Chemical Supply Chain Company of the Year