Independent Verification Statement

Croda International Plc’s reported scope 1 and 2 GHG emissions have received limited verification in accordance with the requirements of the ISO 14064 – part 3 standard. The verification covers emissions from the reporting years ending 31st December 2015 and 31st December 2016.

Our verification opinion – scope 1 and 2

Based on the verification assessment, we have found no evidence to suggest that the GHG emissions assertion of Croda International Plc’s scope 1 and 2 emissions are not:

  • prepared in accordance with Croda International Plc's relevant internal GHG emissions reporting methodologies
  • materially correct and a fair representation of their GHG emissions

Organisational scope and subject matter

The boundary of the verification process included 18 manufacturing, 40 non-manufacturing sites and 13 newly acquired Incotec sites across 31 countries over which Croda International Plc have operational control.
GHG sources included in the verification process:
  • Scope 1: Natural gas; landfill gas; biogas; light fuel oil; heavy fuel oil; gasoline; diesel; propane/LPG; energy from waste oil; biodiesel
  • Scope 2: Electricity; steam; renewables; district heating
Croda’s GHG assertions:
  • 2015: Scope 1: 130,492 metric tonnes of CO₂e; Scope 2: 71,727 tCO₂e; Outside of scopes: 27,309 tCO2e
  • Intensity: 186.9 tCO2e/£m turnover
  • 2016: Scope 1: 128,550 metric tonnes of CO₂e; Scope 2: 67,350 tCO₂e; Outside of scopes: 28,885 tCO2e
  • Intensity: 181.1 tCO2e/£m turnover

Verification standards used and work performed

The scope described above was verified to a limited level in accordance with ISO 14064 – part 3.
The GHG assertions have also been assessed against the Greenhouse Gas Protocol1 GHG accounting and reporting principles2 of completeness, consistency, transparency and accuracy.
Our limited assurance procedures included verification of:
  • The process and procedure for establishing the organisational and operational boundary
  • The GHG sources of scope 1 and 2 emissions (i.e. activities and processes generating GHGs in CO2e) stated in the initial GHG assertion. This does not include verification of emissions from VOCs
  • The methodologies and calculations used for conversion and estimation of CO2e emissions
  • A sample of original underlying data and documentation as relevant and required to evaluate GHG emission assertions
  • The internal quality assurance procedures and results
  • The data management system, including conversion factors applied
  • A site visit to Croda International Plc’s largest manufacturing site in Gouda, Netherlands
The acceptable materiality threshold is 5% at the GHG source level and at an organisational level. Our verification opinion – scope 3 Based on the verification procedures followed by Carbon Smart, we have found no evidence to suggest that the GHG emissions assertions of Croda International Plc’s scope 3 emissions are not prepared in accordance with Croda International Plc’s relevant internal GHG emissions reporting methodologies. The materiality and accuracy of these reported emissions is under significant development by Croda International Plc at this time and Carbon Smart’s observations on development needs are being actively incorporated into Croda International Plc’s approach for future reporting. The organisational boundary for the scope 3 verification process is one and same as for the scope 1 and 2 verification engagement and adheres to the same timeframe.
GHG sources included in the verification process:
  • Scope 3: Raw materials; water supply and treatment; legal services; capital goods; well to tank fuels; well to tank electricity; electricity transmission and distribution (T&D), waste; air travel; car travel; other travel; employee commuting; downstream T&D
Croda’s GHG assertions:
  • 2015: Scope 3: 583,140 metric tonnes of CO₂e
  • 2016: Scope 3: 596,330 metric tonnes of CO₂e

Responsibilities of Croda International Plc and Carbon Smart

Croda International Plc were responsible for the preparation of the GHG emissions assertions, including the data collection and calculations performed. Carbon Smart were responsible for carrying out a limited verification assessment in accordance with the ISO 14064 – part 3 standard, and providing an independently expressed conclusion on the performance data for the reporting periods, and the emissions sources and data included in the scope of this verification exercise.

Carbon Smart’s independence and team competencies

We are able to confirm our independence and objectivity as follows:
  • We are independently appointed by Croda International Plc
  • No member of the verification team has a business relationship with Croda International Plc
  • Our team consists of professionals with a combination of sustainability, reporting and verification experience and training 

Recommendations to improve

In future we recommend Croda International Plc:
  • Train data Safety, Health and Environment managers in the technical aspects of the reporting protocol to ensure consistency, accuracy and transparency in reporting
  • Design a consistent, material and accurate approach for reporting scope 3 and VOCs in order to bring these emissions sources within one united verification assertionCarbon Smart
    London, United Kingdom
    Issued: 10/02/17
1 WRI and WBCS Greenhouse Gas Protocol: A Corporate Accounting and Reporting Standard revised edition 2004
2 The GHG assertion were not assessed against the principle of relevance