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.
We create products for the skin care, sun care, hair care, baby care, colour cosmetics, male grooming, bath and shower and antiperspirant markets.
These include inorganic UV absorbers, lanolins, emollients, polymers, proteins, surfactants and skin care actives. Read more at www.croda.com
We provide inert ingredients and adjuvants for the full spectrum of agrochemical applications.
These include polymeric surfactants, dispersants, wetting agents, emulsifiers, stabilisers, adjuvants and seed coating binders. Read more at www.croda.com
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
Coatings and Polymers:
We provide environmentally friendly, high performance solutions to paint formulators, resin manufacturers and additive producers.
This includes a wide range of naturally derived oleochemicals and speciality surfactants. Read more at www.croda.com
We provide innovative, efficient solutions for the oil field, mining and water treatment markets.
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
We supply ingredients for laundry, household, industrial and institutional cleaning applications, as well as for wipes, tissues, nappies and hygiene articles.
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
We supply ingredients based on renewable raw materials to automotive and industrial lubricant markets.
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
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 atwww.croda.com
We supply ingredients and additives for use in a range of market applications including rubber, candles, textiles, leather and surfactants.
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|
|The Netherlands^^||South Africa||Mexico||Indonesia^|
|Spain^||United Arab Emirates||Peru||Japan^|
† 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:
Meanwhile, the breakdown of revenue and operating profit during 2016, separated by market sector, was as follows:
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:
During 2016, our net sales revenue by geographic market was:
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|
|2016||Western Europe||Middle East and Africa||Asia Pacific||North America||Latin America|
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:
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.
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 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
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
COSMED (L’association De La Filière Cosmétique)
Cosmetic Executive Women
Cosmetic, Toiletry & Fragrance Association Of South Africa (CFTA)
Council For Responsible Nutrition
Council Of Producers And Distributors Of Agrochemicals
Delaware State Chamber Of Commerce
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)
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
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
Kinki Cosmetic Material Association
Korea Chemicals Management Association
Korea Cosmetic Association
Korea International Trade Association
Korea Pharmaceutical Traders Association
Margarine, Fats And Oils Association In The Netherlands (MVO)
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
Professional Association Of Industrial Plastics Of Chile (ASIPLA)
RAL For Phase Change Materials
Roundtable For Sustainable Palm Oil
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)
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