Chief Executive’s Statement
Our embedded approach to sustainability
At Croda, we have continually stated that we are passionate about sustainability, not because we have to be, but because we believe that it is the right thing to do and good for business. This hasn’t changed, but in recent years we have also seen our customers becoming more aware of the power of sustainability as a differentiator, both in the products they offer to their consumers and in the way they choose and work with their suppliers.
Our customers and their consumers, who increasingly demand that performance and responsible sourcing go hand in hand, are at the heart of our focus on sustainability. As such, sustainability is embedded in our strategic thinking and crucial to our organic and inorganic growth. By listening to our industry, our customers and our own people, we make sure that we respond to customer and consumer demands, act on wider market opportunities, and go above and beyond to do the right thing.
We have also seen a major shift in the external perception of our sustainability credentials; we have gone from being a highly regarded follower of sustainability, to being seen as a true leader in this field. Initiatives such as our work in responsibly sourced palm oil and our investment into non-ionic bio-surfactants show that we are driving the industry forward, as well as our Business. We are focused on maintaining this leadership position.
Our key sustainability achievements in 2015
In 2015 we have committed to the biggest manufacturing site capital spend in our history, which will see US$170 million invested into enabling our Atlas Point site in North America to produce non-ionic bio-surfactants (p10). This investment will give us a new and significant opportunity to support the growing number of our customers across all of our core markets who are launching new sustainable products. It will also allow us to mitigate risk in a key North American supply chain as we move to more sustainable, naturally derived feed stock.
I’m also very pleased to say that we have performed extremely well against our sustainability targets, all of which further differentiates our Business in the eyes of our customers. Some highlights include:
Widening the scope of our sustainable solutions
Our sustainability programme is now well established, so our position is rightly one of evolution rather than revolution: widening the scope of our sustainable solutions outside our Business to increasingly engage and align with our customers and consumers, suppliers, regulators, academics and communities.
In particular, we are increasingly focusing on the sustainable benefits of our products in use. Working closely with our customers to find ‘green’ solutions will allow us to satisfy their unmet needs in a sustainable way: enabling them to reduce the amount of product they need to use, increase performance levels and reduce packaging, amongst many other in use benefits.
Another major focus for the future is to work more closely with our suppliers to ensure that our whole supply chain operates ethically and with integrity.
Our people are at the heart of our innovation in sustainability
All of our success in sustainability can be attributed to our people, those whose daily business practices ensure that we do business the right way. Our high-level steering team for sustainability, supported by regional teams driving action plans, is responsible for making sure we deliver against our sustainability targets. I would like to thank everyone within our Business for their daily contributions to our excellent performance in sustainability.
Our people are also key to how we grow our Business, particularly through our focus on innovation as a means to maintain our leadership in sustainability, such as those who are responsible for delivering New and Protected Products where we continue to place our attention on green chemistry. More widely, we are a knowledge-based business, and the know-how, decisions and actions of our excellent people is crucial to our continued success.
Steve Foots, Group Chief Executive
To continue to deliver improvement we must establish clear commitments and performance targets aligned to our 10 Material Areas and their longer-term objectives. By Material Areas we mean topics or issues with the potential to affect the long term success of our business, which includes the economies, environments and societies in which we operate. Targets have been set with our Group Executive Committee that support our sustainability strategy and ensure that progress is made in addressing our Material Areas.
Our Material Areas and targets are reviewed on an annual basis at a Strategic Review meeting between the Sustainability Steering Committee and our Group Executive Committee. As a result of this meeting, in 2015 our 10 Material Areas were further developed and have been linked with the risks in our Global Risk Framework (see G4-14). We will continue to review and develop the scope, objective and targets of each Material Area as the risks and opportunities in each area change.
Our 10 Material Areas are now as follows:
|Material Area||Long-term Objective||Link to Key Risks|
|Environmental Impact||Minimise the impact of our operations||Major environmental incident|
|Product Stewardship||Ensure that the ingredients we produce contribute positively to the environment and society throughout their lifecycle|
|Product Design||Deliver the most innovative and sustainable ingredients to our customers||Global Raw material security and sustainability|
|Quality Assurance||To contribute to, and proactively seek, higher quality standards across product
and operational aspects of our Business to ensure consumer safety
|Product Liability Chemical regulatory compliance|
|Process Safety||Keeping our manufacturing sites safe and legally compliant||Major safety incident|
|Occupational Health & Safety||Empower employees to have health and safety at the forefront of their thinking||Major safety incident|
|Our People||Create an environment where people can thrive||Employee recruitment, retention and motivation
Succession planning for senior positions
|Diversity & Inclusion||Embrace and empower all individuals|
|Knowledge Management||Safeguard our knowledge and expertise||Security of business information and assets|
Education & Involvement
|Support the communities in which we operate, with a primary focus on encouraging young people to work within science and technology|