Changing environment

Climate Positive

Delivering greater impact

Growing consumer demand for sustainable ingredients means our customers require transparency and the ability to deliver products with proven, substantiated claims on their environmental footprint, including carbon. Delivery against our decarbonisation roadmaps, through the switch to alternative energy sources and technology transformation, alongside the transition away from fossil towards an increasingly bio-based portfolio of ingredients, allows us to demonstrate quantifiable carbon reductions at a product level, to support our customers in meeting these consumer expectations. Developing products which offer benefits in use, including avoiding emissions, also support customers and consumers in living more sustainably and reducing their carbon footprint.#

Our scope 1, scope 2 and upstream scope 3 emissions, along with additional Climate Positive, Land Positive, and People Positive KPIs have been assured (limited assurance) under ISAE (UK) 3000 and ISAE 3410 by KPMG, our independent assurance provider and reflects the position for the year ending 31st December 2024. The limited assurance opinion and reporting criteria are available here.

Croda has announced updated climate goals that have been externally validated by the Science Based Target initiative (SBTi) and published on SBTi Target Dashboard. These targets science-based target conform with the SBTi Net-Zero Standard and the SBTI Forest, Land and Agriculture Guidance (FLAG). Croda has integrated these targets into our business strategies, not only reducing the environmental impact of our own operations but also helping customers advance our decarbonisation objectives. 

Our 2025 corporate carbon footprint

Total carbon footprint: 1,446, 979 TCO₂e

Over 90% of our carbon footprint is scope 3 GHG emissions, mostly connected with our raw materials

As part of re-validation of our Science-based targets in 2025 we have fully remodelled our corporate carbon footprint to align with SBTi requirements. At the same time, we have increased our data accuracy and granularity, increasing our primary supplier data to >24% of raw material volumes, and removing all spend-based factors from raw material GHG emission calculations.

All 2022-2025 GHG emission data in this section is presented on the same basis. Please refer to p188 for details of the restatements since ARA2024 and our approach to reporting scope 3 GHG emissions with improved data quality.

Performance summary for strategic targets

Strategic climate target
         
Metric 2030 Targets Unit 2025 2024+ Change
Refreshed Science-based targets




Scope 1 and 2 GHG emissions 42% reduction
from 2022 baseline
TCO₂e
116,418
114,227
+1.9%
Scope 3 E&I GHG emissions 25% reduction
from 2022 baseline
TCO₂e
1,038,643 946,481  +9.7%
Scope 3 FLAG GHG emissions 30.3% reduction
from 2022 baseline
TCO₂e
291,918 243,651 +19.8%
Other strategic climate targets
       
Organic raw materials bio-bases* 75% % 58Δ 56 +2ppt

* Croda's refreshed strategic target is 75% carbon sourced from renewable carbon (biomass, carbon capture and utilisation (CCU) and recycling). Development of this measure is underway, with the intention to report fully on % renewable carbon from FY2026. For ARA 2025, we are reporting on % organic raw materials bio-based as an assured metric.

Limited assurance of GHG emissions data Δ

Δ indicates where metrics have been assured (limited assurance) under ISAE (UK) 3000 and ISAE 3410 by KPMG, our independent assurance provider.

Scope 1 and 2 GHG emission

Our scope 1 and 2 GHG emissions have risen by 1.9% 2025 vs 2024, as a result of production volume increases at some of our major sites. However, over the period 2022–25, our scope 1 and 2 GHG emissions have fallen by 8.8%.

Scope 2 (location-based) emissions were 71,544 TCO2eΔ in 2025 (2024: 70,416 TCO2e).

Scope 1 GHG emission reduction strategies 2022-25 have focused on our major emitting manufacturing sites and include:

  • Shifting to renewable energy sources, for example biogas and bioethanol
  • Electrification of our manufacturing processes, for example replacing steam heat tracing with electric
  • New process technologies requiring less heat, for example biotechnology.

Scope 3 GHG Emissions

Forest, Land and Agriculture (FLAG) GHG emissions

Our scope 3 FLAG GHG emissions have risen by 19.8% 2025 vs 2024, significantly as a result of increased purchases of bio-based raw materials (other than palm) that are not yet certifiable as deforestation-free. Over the period 2022–25, our scope 3 FLAG GHG emissions have fallen by 23.1%, driven by our move to increasingly certified sustainable palm derivatives, reducing deforestation risks.

Energy and Industry (E&I) GHG emissions

Our scope 3 upstream E&I GHG emissions have increased by 10.5% 2025 vs 2024, as a result of short-term sales volume recovery not yet fully decoupled from supply chain decarbonisation activities planned as part of the sustainability strategy refresh. Over the period 2022-25, our scope 3 upstream E&I GHG emissions have fallen by 2.5%.

Our scope 3 downstream E&I GHG emissions have increased by 7.7% in 2025 vs 2024, also as a result of short term sales volume recovery. Over the period 2022-25, our scope 3 downstream E&I GHG emissions have increased by 5.6%.

GHG emissions intensity

tonnes CO₂e / £m value add

Emission intensity

Our chosen measure of GHG emissions intensity divides our GHG emissions (including market-based scope 2 emissions) by value added3 a measure of our business activity. The GHG emission intensity for 2025, 2024 and 2023 are calculated using scope 1 and scope 2 emissions data and value add. The result for 2022 uses scope 1 and 2 emissions and an estimated value add if the PTIC divestment have been completed at 1 January 2022. All acquisitions have been included in the GHG emissions numerator for all years, with no adjustment for the value add prior to date of acquisition. On this basis, our GHG emissions intensity was 150Δ tonnes COe / £m value add in 2025 and has increased by 6.4% since 2022, our new baseline year.