In line with our contribution to United Nations Sustainable Development Goal 15, Life on Land, 15.2 by 2020, promote the implementation of sustainable management of all types of forests and halt deforestation, we are committed to using palm oil (PO), palm kernel oil (PKO) and their derivatives from sustainable sources. 

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.

Fourteen of our manufacturing sites are Roundtable on Sustainable Palm Oil (RSPO) Supply Chain Certified to handle sustainable PO/PKO derivatives via physical supply chains, Mass Balance and Segregated. These certified sites handle more than 99% of our palm derivatives.

In 2018 we further strengthened our commitment by working with a third party, independent organisation to confirm and verify transparency of our supply chains. This work involved collecting data from major suppliers, responsible for 80% of the volume of palm and palm kernel derivatives we use. We have identified the mills associated with this volume, including location and GPS coordinates, and ongoing work using these data will inform a risk assessment of the sourcing areas and ensure progress towards fully sustainable and deforestation-free sourcing by 2020. 

We shall preferentially source from suppliers who can confirm NDPE compliance (no Deforestation, no Peat, no Exploitation)* based on the following:
1. A public policy of no deforestation
2. No fires and no plantation on peatlands regardless of depth
3. No planting on High Conservation Value areas (HCVs) and High Carbon Stock areas (HCS), have HCV management and monitoring plans at a landscape level 
4. Respect for workers’ rights, of the legal and customary rights as well as the Free Prior and Informed Consent (FPIC) of indigenous communities, no forced      labour, no slave labour, no child labour. In the absence of a Decent Living Wage in a given country, palm oil growers must engage with their workers to mutually agree terms
5. Support for smallholders, growers to develop outreach programmes to support smallholders with sustainability and business skills
6. Have a management and monitoring plan that includes targeted reductions of GHG emissions
7. Will support Croda’s transparency and traceability work.**
 *Through 2019 we shall engage with all our palm derivative suppliers to obtain their confirmation of NDPE compliance and support of our policy.
**either directly or through a third party 

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, Vice President, Sustainability
May 2019