Croda is committed to using raw materials from sustainable sources. This commitment includes palm oil (PO), palm kernel oil (PKO) and their derivatives.

Since 2011, we have taken a very proactive approach to fully support sustainable PO and PKO and continue working with the industry to secure a sustainable source of derivatives.

Twelve of our manufacturing sites are Roundtable on Sustainable Palm Oil (RSPO) Supply Chain Certified to handle sustainable PO/PKO derivatives via Mass Balance. These certified sites handle more than 99% of our palm derivative volumes and have enabled us to meet our initial corporate target 'To have RSPO certification of all our relevant supply chains by the end of 2015'.

We are making good progress towards adopting sustainable palm-based raw materials globally with over 400 of our finished products converted to Mass Balance or Segregated. Our continued programme for conversion is intended to only supply RSPO certified palm oil derived finished products by 2017, subject to the continued development of the supply chains.

In 2016, we have also continued to make progress against our target to implement a system that will facilitate the traceability of palm derived raw materials by the end of 2017 by working with our key suppliers in all regions.

We engaged in face to face meetings and an on-line questionnaire with suppliers from whom we source 80% of our palm derivative volumes. The questionnaire focussed on transparency in the supply chain, public commitments against deforestation, reporting greenhouse gas (GHG) and smallholder inclusion.

The key outcomes were:

  • 100% response from our suppliers
  • 50% of suppliers declared that they have transparency back to mill/refinery for palm oil derivatives and back to mills for palm kernel derivatives
  • 56% of suppliers confirmed their public commitments against deforestation
  • 32% of our suppliers publicly report their GHG emissions
  • 40% of our suppliers declared that they have programmes to support smallholders

During 2017 we shall continue to work closely with our suppliers on transparency and traceability with the aim of total elimination of deforestation in our palm derivative supply chains.

We will continue to publish progress against our commitments through our annual Sustainability Report, on our website and within the RSPO’s Annual Communication of Progress.

Dr Terence Thistlethwaite
VP of Sustainability