Organisational Profile

Croda International Plc.

We are a speciality chemical manufacturer who, through the imaginative and practical use of science, create ingredients and technologies that improve people’s lives by enhancing everyday products.

We have four market sectors: Personal Care, Life Sciences, Performance Technologies and Industrial Chemicals.  Within these four market sectors, we have nine business areas, each working in partnership with our customers to design ingredients that are manufactured globally and sold directly to our customers.

Personal Care:

Markets

We create products for the skin care, sun care, hair care, baby care, colour cosmetics, male grooming, bath and shower and antiperspirant markets.

Products

These include inorganic UV absorbers, lanolins, emollients, polymers, proteins, surfactants and skin care actives. Read more at www.croda.com

Life Sciences:

Crop Care:

Markets

We provide inert ingredients and adjuvants for the full spectrum of agrochemical applications.

Products

These include polymeric surfactants, dispersants, wetting agents, emulsifiers, stabilisers, adjuvants and seed coating binders. Read more at www.croda.com

Health Care:

Markets

Our high purity ingredients are used in the pharmaceutical, dermatological, neutraceutical, functional food and animal health markets. Products

These include concentrated omega fatty acids, ultra pure medical grade lanolins, Super Refined™ excipients and a wide range of surfactants, solubilisers, emulsifiers and fatty acid esters. Read more at www.croda.com

Performance Technologies:

Coatings and Polymers:

Markets

We provide environmentally friendly, high performance solutions to paint formulators, resin manufacturers and additive producers.

Products

This includes a wide range of naturally derived oleochemicals and speciality surfactants. Read more at www.croda.com

Geo Technologies:

Markets

We provide innovative, efficient solutions for the oil field, mining and water treatment markets.

Products

These include demulsifiers for the oil field industry, emulsifiers for explosives and water soluble polymer components for the formulation of water treatments. Read more at www.croda.com

Home Care:

Markets

We supply ingredients for laundry, household, industrial and institutional cleaning applications, as well as for wipes, tissues, nappies and hygiene articles.

Products

These include proteins and their derivatives, softeners, surfactants, solvents, emulsifiers, solubilisers, hydrotropes, tissue lotions, botanical extracts, fatty acids and glycerine. Read more at www.croda.com

Lubricants:

Markets

We supply ingredients based on renewable raw materials to automotive and industrial lubricant markets.

Products

These include multi-functional esters, polyalkylene glycols and speciality lubricant additive products deliver high performance, energy efficient solutions to meet the challenging demands of the lubricant industry. Read more at www.croda.com

Polymer Additives:

Markets

We provide speciality effects for a wide range of industrial and consumer plastics, packaging and rubber applications.Products:

These include slip, anti-block, antistatic, anti-fog, mould and torque release agents as well as UV absorbers, dispersants and concentrates.

Read more at

www.croda.com

Industrial Chemicals:

Markets

We supply ingredients and additives for use in a range of market applications including rubber, candles, textiles, leather and surfactants.

Products

These include the full range of our products; from base oleochemical fatty acids and glycerine to esters, polymeric surfactants and amides. Read more at www.croda.com

As a business to business organisation we strive to maintain an awareness and conformance, where appropriate, to national and local laws and voluntary codes or guidelines, from entities such as the Food and Drug Administration (FDA), the European Food Safety Authority (EFSA), the European Commission, Cosmetics Europe, United States Environmental Protection Agency and Personal Care Products Council (formerly CTFA).

We were a signatory to the chemical industry’s voluntary agreement on the accelerated phase out of the supply and use of products for applications restricted under the EU Marketing and Use Directive, which is now incorporated into our activities under the legislation of Registration, Evaluation, Authorisation and Restriction of Chemical substances (REACH). We therefore focus our sales and marketing on offering alternatives with just small amounts being imported for merchanting purposes' into allowed uses. For example, manufacturing of alkylphenol ethoxylates in our European operations is restricted and we are actively developing and promoting alternatives to alkylphenol ethoxylates in other regions. As a result many customers have already moved to different products.



Our corporate headquarters are located at Cowick Hall in East Yorkshire, England.

We are a global organisation with 4,273 employees across 36 countries.* The strength of our research, development and manufacturing capabilities is underpinned by our global network of sales offices and technical/customer support teams.

This report covers the sustainability performance of Croda International Plc for the period 1 January 2016 to 31 December 2016. The scope of this report is all wholly owned operations, plus those operations where we have significant management influence due to a majority shareholding. Unless otherwise stated, data provided throughout this report is for continuing operations.

Countries of Operation*

Western Europe Eastern Europe, Middle East & Africa North America Latin America Asia Pacific
Belgium Czech Republic Canada Argentina Australia
France^^^ Hungary USA^^ Brazil^ China^
Germany Poland   Chile Hong Kong
Italy^ Russia   Colombia India^
The Netherlands^^ South Africa   Mexico Indonesia^
Spain^ United Arab Emirates   Peru Japan^
Sweden  Iran     Singapore^
Turkey  Malaysia     South Korea
United Kingdom†^^^^       Taiwan
        Thailand
        Vietnam

Key 

† Head Office 

^ Manufacturing site

* As at 31 December 2016

Croda International Plc. is a Public Limited Company; we have been listed on the London Stock Exchange since 1964.

The ownership structure and major shareholders can be found in the Annual report.

The markets served by our business can be found under disclosure GRI 102-2. The revenue generated during 2016, separated by region is detailed below:

  • Europe, Middle East & Africa - £502.9m
  • North America – £341.9m
  • Latin America - £128.8m
  • Asia Pacific – £270.0m

Meanwhile, the breakdown of revenue and operating profit during 2016, separated by market sector, was as follows:

Personal Care:

  • Revenue = 420.6m
  • Operating Profit = £143.1m

Life Sciences:

  • Revenue = £292.2m
  • Operating Profit = £82m

Performance Technologies:

  • Revenue = £402.5m
  • Operating Profit = £66.2m

Industrial Chemicals:

  • Revenue = £128.3m
  • Operating Profit = £6.9m

As recorded at 31 December 2016, the Group employs 4,273 employees worldwide, operating 19 manufacturing sites and with a total of 67 operations in 36 countries. Our revenue for continuing operations was £1,243.6m.

During 2016, our net sales revenue by market sector was:

  • Personal Care – 33.8%
  • Life Sciences – 23.5%
  • Performance Technologies – 32.4%
  • Industrial Chemicals – 10.3%

During 2016, our net sales revenue by geographic market was:

  • Europe, Middle East & Africa – 40.4%
  • North America – 27.5%
  • Latin America – 10.4%
  • Asia Pacific – 21.7%

At 31 December 2016, total debt was £364.1m and £608.8m equity.

These figures apply to Croda International Plc. in its entirety.

Further information can be found on in our Annual Report.

Like all successful businesses, we recognise that our future depends on our ability to attract and retain individuals who are passionate about personal and business growth and want to make a significant contribution to the future of our business.

2016 Full Time Part Time Permanent Temporary
Male 66% 1% 66% 1%
Female 27% 6% 32% 1%
2016 Western Europe Middle East and Africa   Asia Pacific  North America Latin America
Male 35% 1% 19% 10% 3%
Female 18% 1% 6% 4% 3%

The vast majority of our business is completed by employees of the business, and are therefore not self-employed or contractors. Our employee numbers do not fluctuate significantly throughout the year due to seasonal variations. For those employees on a temporary contact, many within this group are undergraduate interns or apprentices to whom permanent employment is normally offered upon successful completion of a training period.

There are a total of 19 manufacturing sites located in Europe, North America, South America and Asia.  Each site/region has its own procurement organisation responsible for all aspects of procurement associated with acquiring all goods and services.  Specific responsibilities include identification of requirements, specifications, assessment of risks, management of tendering processes, ordering, contract award and management and monitoring of suppliers' performance.

There are sales offices and warehousing in 36 different countries.  Sales offices source materials from the worldwide network of manufacturing sites for customers in their local markets.  The global supply chain is supported by a common SAP-based ERP processes.

In December 2015 we acquired Incotec Group BV and in May 2016 we bought the technology platform of Inventiva Ltda. Due to the timing and nature of the investment, our focus during 2016 has been to align and report their financial and SHEQ performance. Unless stated, data within this report includes the activities of these operations, but where they have been excluded while we work with them to embed our systems a note has been made.

There have been no substantive changes in location of and relationships with suppliers in 2016.  However European chemicals raw material production is continuing to migrate to other regions offering the twin benefits of lower cost production allied with a fast growing consumer markets.  In order to uphold the security of supply of raw materials, European sites are increasingly having to look further afield for reliable sources of chemical feedstocks.


The effective management of our risks and opportunities helps to achieve our strategic objectives, protects our people, our local communities and our reputation, and demonstrates good corporate governance. It is essential for creating and protecting value for our shareholders and customers in line with our business model.  Croda is committed to the effective management of key business risks throughout the organisation.

 The Board of Directors determines our overall risk appetite. It also oversees the Group’s risk management and internal control systems, defines risks and monitors risk exposures and ensures that the nature and extent of the risks we take align with our strategic objectives.

 The Group coordinates its global approach through the Risk Management Committee of the Executive which reports directly to the Board via the Audit Committee. The Risk Management Committee is chaired by the Group Finance Director and meets quarterly, with the VP Risk and Control in attendance at each meeting. The Risk Management Committee is responsible for the Group’s Generic Risk Framework, which requires each location to identify location specific risks against 53 generic risks across six categories:

  • People and Process
  • External Environment
  • IT Systems and Security
  • Strategic
  • Financial

 The Framework is applied at Market Sector, regional, functional, manufacturing site and sales site levels.  Senior management teams at each level are responsible for scoring and applying the classifications within the framework. These registers are reviewed and consolidated to ensure that there is a comprehensive view of the material risks facing the Group, along with the controls in place to mitigate these risks. As a minimum, our market sectors, regions and core functions update their registers twice per year.

 Our safety, health, environmental and quality (SHEQ) risks, which are closely aligned to a number of our Material Areas are reviewed and considered by a dedicated Executive level committee. This meets quarterly to consider the results of assurance audits over SHEQ controls and to monitor defined and agreed key performance indicators.

 It is the responsibility of the Risk Management Committee to consider external and emerging risks and their relevance to the Group, assess bottom-up risk registers to identify Group wide impacts and trends and to compare them with key risks, and evaluate whether any risks have escalated and require further attention. Its quarterly meetings feature a presentation by the Executive member responsible for ensuring best practice and continuous progress for each key risk. This covers the risk itself, the mitigating controls, and continuous improvement actions.

 The review of our risk framework is ongoing as our business changes. During 2016 we considered the implications of the result of the UK referendum to leave the EU (‘Brexit’) on our strategy and this was discussed with the Board. Although not currently considered to be key, this developing risk will remain under regular review during 2017 as the Brexit process continues to evolve.

More information about the Group’s Risk Management processes can be found in the Annual Report.

Our proactive approach to working with many external organisations, both inside and outside of our industry, saw us contributing to around 190 different bodies during 2016. Many of these relate to product, personal and process safety and regulatory affairs.

Charters

Responsible Care
We are signatories to Responsible Care®, which is the chemical industry’s global voluntary initiative through which companies, through their national associations, work together to continuously improve their health, safety and environmental performance and to communicate with stakeholders about their products and processes. The Responsible Care® ethic helps industries to operate safely, profitably and with due care for future generations. It was commended by UNEP as making a significant contribution to sustainable development at the World Summit on Sustainable Development in 2002. 

Roundtable on Sustainable Palm Oil (RSPO)
We have been active members of RSPO since it was established in 2004, and sit on the Derivatives Working Group. The mission of RSPO is to advance the production, procurement and use of sustainable oil palm products through the development, implementation and verification of credible global standards and the engagement of stakeholders along the supply chain. We are members of the RSPO, which collectively brings oil palm growers, oil processors, food companies, retailers, NGOs and investors to work together towards a global supply of palm oil that is produced in a socially and environmentally responsible way. The Roundtable promotes palm oil production practices that help reduce deforestation, preserve biodiversity, and respect the livelihoods of rural communities in oil-producing countries. It ensures that no new primary forest or other high conservation value areas are sacrificed for palm oil plantations, that plantations apply accepted best practices and that the basic rights and living conditions of millions of plantation workers, smallholders and indigenous people are fully respected.

12 Principles of Green Chemistry 

The 12 Principles of Green Chemistry were developed in 1991 by Paul Anastas and John C. Warner. The aim of the principles is to minimise the environmental impact of chemical products and reduce the environmental and social risks of these products. We have been using these principles since 2010 to ensure that our New Product Development follows a more sustainable and environmentally friendly path.

We are a signatory to the Responsible Care® Initiative of the chemical industry trade associations in the UK, USA and Singapore, and more recently have endorsed the Global Charter agreed amongst the members of the International Council of Chemical Associations. We have also demonstrated our commitment to Sustainable Development by endorsing the principles developed in cooperation with stakeholders and member companies of the Chemical Industries Association.

In addition to this, we are also members of around 220 industry associations including (but not limited to):

 American Association Of Pharmaceutical Scientists

 American Board Of Industrial Hygiene

 American Chemical Society

 American Chemistry Council

 American Cleaning Institute

 American Institute Of Chemical Engineers

 American Management Association

 American Oil Chemists' Society

 American Payroll Association

 American Society For Testing And Materials

 American Society For Testing And Methods

 American Society Of Mechanical Engineers

 Argentina Chamber Of Cosmetics And Perfumery Industry - CAPA

 Argentinean Association Of Cosmetic Chemists - AAQC

 Assic - Associations Of Trading Chemicals Industries

 Association Francaise Des Techniciens Des Peintures, Vernis, Encred, d'Imprimerie, Colles Et Adhesifs (AFTPVA)

 Association Of Accounting Technician (AAT)

 Association Of Chartered Certified Accountants (ACCA)

 Association Of Russia

 Australian Society Of Cosmetic Chemists

 Beauty Industry West (BIW)

 Biobased Delta

 Biobased Performance Material Project

 Board Of Certified Safety Prof

 Bombay Chambers Of Commerce

 British Chamber Of Commerce

 Canadian Association Of Chemical Distributors (CACD)

 Canadian Cosmetic Toiletry And Fragrance Association (CCTFA)

 Catalan Chemical Industry Federation (FEDEQUIM)

 Chamber Of Commerce Clinton

 Chartered Institute Of Management Accountants (CIMA)

 Chemical Cosmetic Association

 Chemical Industries Association

 Chemical Industries Association (CIA)

 Chemical Industry Council Of Delaware

 Chemicals Northwest

 Chemistry Council Of New Jersey

 Chicago Paint & Coatings Assoc

 Chilean Association Of Cosmetic Chemists

 Colombian Association Of Cosmetic And Technology (Accytec)

 Confindustria - Unione Industriali

 Consumer Specialty Products Association

 Coschem

 COSMED (L’association De La Filière Cosmétique)

 Cosmetic Executive Women

 Cosmetic Valley

 Cosmetic, Toiletry & Fragrance Association Of South Africa (CFTA)

 Council For Responsible Nutrition

 Council Of Producers And Distributors Of Agrochemicals

 Delaware State Chamber Of Commerce

 Deltalinqs

 Dubai Chamber Of Commerce

 Dutch Building Services Knowledge Centre (ISSO)

 Dutch Polymer Institute

 Entreprises Et Environnement

 Enviromental Conservation Association Of Shiga Prefecture

 Environmental Assessment Working Group

 European Oleochemicals And Allied Products Group (APAG)

 European Union Chamber Of Commerce In Korea

 Federation Of Enterprises In Beauty – France (FEBEA)

 Federation Of Indian Chambers Of Commerce And Industry (FICCI)

 Federchimica

 Federsalus

 Formualted Products Industry Coalition

 Global Organisation For EPA And DHA

 Hair Science CHEMISTS OF JAPAN

 Higashiohmi Chamber Of Commerce And Industry

 Higashiomi Fire Desaster Prevention Association

 Hull & Humberside Chamber Of Commerce

 Human Management Association (ACRIP)

 Humberside Chemical Focus

 ICIS CHEMICAL BUSINESS AMERICAS

 Indian Chemical Council

 Indian Specialty Chemicals Manufacturers Association

 Innovation And Chemical Industries In Sweden

 Institute Of Chartered Accountants In England And Wales (ICAEW)

 Instituut Maatschappelijke Innovatie

 International Fish Meal And Fish Oil Organisation

 International Pharmaceutical

 Jababeka Investor Forum

 Japan Chemical Industrial Association (Japanese Organization Of ICCA)

 Japan Cosmetic Suppliers Association

 Japan Hygienic Olefin And Styrene Plastics Association

 Japan Hygienic PVC Association

 Japan Oil Chemisits' Society

 Japanese Cosmetic Science Society

 Japanese Society For Cutaneous Health

 Japanese Society Of Tribologist

 Kashi-Kai

 Kinki Cosmetic Material Association

 Korea Chemicals Management Association

 Korea Cosmetic Association

 Korea International Trade Association

 Korea Pharmaceutical Traders Association

 Lipidforum

 Margarine, Fats And Oils Association In The Netherlands (MVO)

 Mase

 Mexican Institute Of Chemical Engineers (IMIQ)

 Mutual Aid Response Group

 National Association Of Manufacturers Of Paints And Inks - Mexico (ANAFAPYT)

 National Association Of The Chemical Industry - Brazil (ANIQ)

 National Industry Association (ANDI)

 National Lubricating Grease Institute

 National Plastic Industries Association - Mexico (ANIPAC)

 Natural Resources Stewardship Circle (NRSC)

 Nederlandse Vereniging Voor Verf Technici (VVVF/NVVT)

 New Castle County Chamber Of Commerce

 New Jersey Chamber Of Commerce

 New Jersey Institute Of Technology (NJIT)

 New Jersey Society Of Cpas

 National Fire Protection Association (NFPA)

 Netherlands Group of Users of Technology for Separation (NL Guts)

 North Central Weed Science Society

 PA Chamber Of Business

 Pennsylvania Chemical Industry

 Perfumery And Cosmetics

 Personal Care Products Council

 Peruvian Association Of Cosmetic Chemists

 Peruvian Association Of Textil Technicians

 Pharmacopeia

 Professional Association Of Industrial Plastics Of Chile (ASIPLA)

 RAL For Phase Change Materials

 Roundtable For Sustainable Palm Oil

 Rutgers CCB

 Scancos (Scandinavian Cosmetic Association)

 Seong Nam Chamber Of Commerce & Industry

 Sepawa (Soaps, Perfumes And Detergents)

 Singapore Chemical Industry Council

 Société Française De Cosmétologie

 Society For Human Resource Management

 Society Of Cosmetic Chemist

 Society Of Cosmetic Sciences (SCC) - New York, Quebec And Toronto Chapters

 Society Of Plastics Engineers

 Society Of Tribologists And Lubrication Engineers

 Society Of Tribologists And Lubrication Engineers (STLE)

 South African Paint Manufacturers Association (SAPMA)

 Spanish Association Of Manufacturers Of Surface Active Substances For Applications (AEPSAT)

 Technical Symposium

 Thane Belapur Industries Association

 The Ceramic Society Of Japan

 The Chemical Industry Association In Germany (VCI) Via TEGEWA

 The Chemical Industry Association In The Netherlands (VNCI)

 The Confederation Of Indian Industry (CII)

 The European Federation For Cosmetic Ingredients (EFFCI)

 The Japanese Dermatological Association

 The Lock Haven Rotary Club

 The Pharmaceutical Society Of Japan

 The Society Of Cosmetic Chemists Of Japan

 The Society Of Petroleum Engineers

 Tokyo Chamber Of Commerce And Industry

 Tokyo Cosmetic Material Association

 Toronto North CAER Group

 Trans Thane Creek Waste Management Association

 Turkish Chemical Industry Assocciation

 Turkish Paint Industry Association

 Union Des Industrie Chimiques

 West-Japan Cosmetic Industry Association

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