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Procurement and sustainable sourcing

Using natural resources brings a responsibility to ensure there are no associated negative social or environmental impacts, and an opportunity to advocate for, and contribute to, positive change. This is only possible through intimate knowledge of our supply chains, collaboration with all parties in them, and with complete transparency and traceability. This is the heart of SDG 17, Partnership for Goals, with effective collaboration in the supply chain resulting in greater positive impacts.

We have an important role to play in trading responsibly, with honesty and integrity at all times. We therefore want to ensure that organisations we deal with, our suppliers and their representatives, share this responsibility and live up to our values and standards. From sourcing raw materials to delivering safe products to customers, we are committed to responsible stewardship at every stage, meeting all relevant legislation and registrations. 
 

Supplier engagement and monitoring

We partner with EcoVadis, the world’s most trusted business sustainability ratings. We use its universal scorecard, benchmarks and performance improvement tools across four areas: environment, labour and human rights, ethics, and sustainable procurement.

Alongside our own work with suppliers, we look for third party certifications to validate the sustainability credentials of suppliers and their raw materials. These include International Sustainability and Carbon Certification (ISCC), Roundtable on Sustainable Palm Oil (RSPO), USDA BioPreferred®*, Union for Ethical BioTrade (UEBT) and Sustainable Castor Oil Association (SuCCESS). *USDA BioPreferred is a registered trademark of the US department of Agriculture

As part of our commitment to responsible and ethical trading, we developed a Supplier Code of Conduct, which outlines our sustainability commitments and key principles for suppliers to do business with us. The Code covers: 

Sustainable Trees in a forest

Our approach

Sustainability means doing business the right way, adapting and challenging ourselves to meet business needs, today and in the future.

Ethics

Responsible and ethical behaviour is fundamental to the way we operate at Croda.

Sustainability Legal Requirements  Conflict of Interest  Human Rights 
Health and Safety Environmental Management  Bribery and Corruption Conflict Minerals 
Animal Welfare Confidentiality  Quality 

Supplier Code of Conduct

Sustainable palm derivatives

Our customers, suppliers and peers acknowledge our leadership in supporting sustainable palm derivatives. Our transformation to fully RSPO-certified physical supply chains is nearly complete, with more than 85% of our palm derivative volumes certified as we exited 2020. This covers 100 suppliers and more than 300 raw materials into 14 RSPO-certified manufacturing sites. While this change was led by our Personal Care business, the 85% achievement is across all finished ingredients into all industries. 

We are a founder member of Action for Sustainable Derivatives (ASD), a collaborative initiative that promotes responsible sourcing. This has accelerated the transformation of the palm derivatives industry towards compliance with No Deforestation, No Peat, No Exploitation (NDPE) principles. We work with the consultancy Transitions to carry out supplier investigations to ensure compliance.
 
 

Our palm oil supply chain

Supply chain mapping in 2020 covered 96.8% of total volumes of palm-based raw materials, and suppliers responded to upstream transparency investigations representing 99.31% of the palm feedstock volume equivalent. Supply chain transparency was achieved for:

  • 94% of volume to refineries
  • 90% of volume to mills
  • 27% of volume to plantations 

More than 98% of traceable volumes originate from Indonesia (46%), Malaysia (51%) and Thailand (1.2%) with 1,025 mills representing 90% of traceable volumes. 

Mapping enables geographical risk assessments to identify and measure environmental risks at the province level and at a mill’s catchment area level. These ongoing assessments via the Global Forest Watch Pro tool demonstrate the reductions in our suppliers sourcing from potentially high-risk areas.

We have made a commitment for our use of bio-based organic raw materials to reach 75% by 2030, three times that of the European Chemical Industry target of 25%.

In order to accelerate our transition to bio-based products, we are keen to collaborate with suppliers or technology providers to find innovative, sustainable solutions. 
These could include: 

  • Biobased alternatives to high volume petrochemical materials
  • Novel feedstocks made from CO2 captured from the atmosphere and transformed into building blocks
  • Recycled or regenerated materials from waste streams

Exploring these types of feedstocks is integral to Our Commitment and becoming Climate Positive. If you are a supplier or technology provider who can help, please get in touch below. 

Sustainable palm oil statement

Palm substitution

Statement on human rights in the palm sector

As founder members of ASD, we share its 2021 update on progress

sustainable clouds and trees

Our Commitment

We will be the most sustainable supplier of innovative ingredients, our action plan for the decade is to be Climate, Land and People Positive by 2030.

Environmental, Social and Governance (ESG)

Useful links to further information on our environmental, governance and social impact.

aerial shot of wind turbine

Our strategy

Our focus on innovation, sustainability and growth ensures that Croda smart science helps our customers meet their own sustainability targets as well as consumer demands.