Environmental

Responsibilities and resources

Our Group Sustainability Team and Executive Committee supports the various businesses with operational and strategic activities, by providing input on product development and guiding the wider group sustainability agenda. Whilst these functions set and monitor standards, operational responsibility lies with each site, which also nominates a responsible person for day-to-day operational SHEQ matters.

Goals and targets

By 2020, we aim to achieve significant improvements on six major parameters compared to a 2015 baseline:

• To reduce total Group energy intensity by 5% by the end of 2020

• To reduce total Group carbon intensity by 10% by the end of 2020

• To generate 27% of the Group’s total energy requirements from non-fossil fuel sources by the end of 2020.

• To reduce total VOC emissions by 10% by the end of 2020.

• To reduce total Group water withdrawal by 10% by the end of 2020

• To reduce Group waste to landfill by 10% by the end of 2020.

 

Further components

We are committed to the International Council of Chemical Associations’ Responsible Care® initiative. This initiative promotes shared responsibility between chemical producers, suppliers and customers and requires close, sustained dialogue and working relationships between all stakeholders. This means sharing information up and down the value chain to identify and manage risks, and to ensure that chemicals are used and managed safely and responsibly throughout their lifecycle.

Waste Management

Our performance in waste management has continuously improved over recent years due to programmes rolled out globally and individual sites continuing efforts.

2019 saw a further reduction in our waste sent to landfill: we have now achieved a 17.8% reduction since 2015, exceeding our 2020 target of a 10% reduction. We recycle or reuses materials wherever possible in order to avoid sending waste to landfill and each category of waste is identified and analysed. Disposal methods must be documented in internal records.

In 2019, ten of our manufacturing sites sent zero waste to landfill, therefore reducing potential adverse consequences for the environment.

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Energy

Since 2015, our overall energy use has increased by 14.9%, due to our continuing production expansions, in particular the commencement of biobased Ethylene Oxide (EO) production at Atlas Point. During this time, our energy intensity figure has fallen by 13%, a measure of our efforts to increase efficiency.

In 2019, 22.7% of the energy used came from non-fossil fuel sources. 2019 saw installation of further capacity for energy generation from landfill gas at Atlas Point, which will contribute towards further progress against this target.

In recognition for our focus on carbon management we recently won the “Bio-based Industry Story of the Year” award. In April, we were awarded the 2019 Bio-Based World News Innovation Award for ‘Bio-based Industry Story of the Year’ for the launch of our new 100% bio-based, 100% renewable range of non-ionic surfactants, our ECO range.

Water

Since 2015, our total water withdrawal has reduced by 17.4%, due to water saving initiatives across our manufacturing sites. The impact of our water use is very dependent on geographical location and so we are working to develop a water impact measure which will take into account the quantity of water withdrawal as well as level of water stress at source; water displacement effects and quality of discharged water. We have also developed an industry leading 2030 target to reflect this.

Read more: GRI 303-1 Interactions with water as a shared resource

Read more: GRI 303-2 Management of water discharge-related impacts

Read more: pages 27, 32 & 35 of our 2019 Sustainability Report

 

Protection of Ecosystems

In 2019, 63% of the raw materials we used were from renewable sources, a unique position amongst our peers in the speciality chemical manufacturing industry. The growth of crops from which many of our raw materials are derived, removes CO₂ from the atmosphere, resulting in low carbon footprints for many of our products. The extrinsic sustainability impacts of our products include the social, environmental and financial benefits that our products have in use. We are working to quantify these benefits for some of our product application areas, calculating associated carbon savings.

Fourteen of our manufacturing sites are Roundtable on Sustainable Palm Oil (RSPO) Supply Chain Certified to handle sustainable Palm derivatives via physical supply chains. 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 transparency of our supply chains, collecting data from major suppliers, responsible for 80% of the volume of palm 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.

Evaluation and outcome

At Croda, our Group Sustainability Team exchanges knowledge between stakeholders within the business to reduce environmental impacts. In addition, we have formed an Executive Sustainability Steering Committee and a Product Sustainability Subgroup to identify bottlenecks and generate new ideas to achieve our newly launched 2030 targets. Participants in these groups include representatives from around the business including the VP Customer Alliances, Corporate Sustainability, the Head of Global Business Development, the Research and Technology Manager and the Head of Global Marketing amongst others, who are the main stakeholders in implementing strategies at the product level.

Indicators

We collect data on a quarterly basis to monitor progress against our targets and these data are used as a basis to improve efficiency and performance. Our Intelex SHEQ reporting tool is used to track the progress of projects related to environmental performance and capture any additional activities in this area.

Waste Management

Indicators monitored include the weight of hazardous and non-hazardous waste by disposal method as well as the number and volume of significant spills.

Energy

We are ahead of target to achieve our five-year energy intensity plan, which is calculated by dividing energy consumption by ‘value added’ (operating profit before depreciation and employee costs). By the end of 2019 we had achieved a 13% reduction compared to 2015.

Water

We monitor several water-related indicators, including total volume withdrawn by sources, water consumption related to production, and discharge volumes to various water sources.

Protection of Ecosystems

We track parameters including number of manufacturing sites located in biologically or water stress sensitive areas.

We also participate in end to end supply chain engagement with palm oil producers to tackle the issue of deforestation and to ensure transparency and sustainable practices.

We also develop ingredients using sources derived from Brazilian biodiversity and the greatest challenge of regulatory compliance in biodiversity is that each country defines the mechanisms of regulation. We have a responsibility to assure our customers of the compliance of our products and our Product Safety and Regulatory and Affairs (PSRA) department has registered more than 70 products with the Ministry of the Environment. This enables our customers to register their final products using our ingredients from these sources.

Basis for Materiality

Our commitment to ethical practice and environmental sustainability is reflected in our conscientious approach to managing resources and the environment. Pursuing energy efficiency, refining operations and reducing emissions through behavioural and technological changes helps us reduce our impact on the environment.

Materials

By being close to our customers we understand and fulfil their needs, finding new ways to improve sustainable product performance and reduce environmental impacts. In 2016 we introduced the concept of intrinsic and extrinsic sustainability benefits. Intrinsic refers to attributes such as renewable raw material content, product purity and cradle-to-gate life cycle assessment. We assess the compliance of our new products with the 12 Principles of Green Chemistry and in 2017 our New and Protected Products (NPP) scored an average of 11 out of 12.

In 2019, 66% of the raw materials we used were from renewable sources, a unique position amongst our peers in the speciality chemical manufacturing industry. The growth of crops from which many of our raw materials are derived, removes CO₂ from the atmosphere, resulting in low carbon footprints for many of our products. The extrinsic sustainability impacts of our products include the social, environmental and financial benefits that our products have in use. We are working to quantify these benefits for some of our product application areas, calculating associated carbon savings.

 

Fourteen of our manufacturing sites are Round-table on Sustainable Palm Oil (RSPO) Supply Chain Certified to handle sustainable Palm derivatives via physical supply chains. 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 transparency of our supply chains, collecting data from major suppliers, responsible for 80% of the volume of palm 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.

Waste Management

Waste Management is highly regulated subject and is an important theme for us and the chemical industry as a whole. For us, dealing with waste responsibly is not only a sustainability issue, it is also an operational issue as with increased waste come higher costs for the business.  Process efficiency, which generates increased yields, contributes to our profitability via associated volume reductions in the waste stream.

Energy

Many chemical manufacturing processes are energy intensive and we wholeheartedly accept the implications for climate change arising from green-house gases (GHG) associated with energy generation. We have carefully measured operational emissions of gases implicated in climate change and for more than 15 years have set targets for their reduction. Improving cost-efficiency and conserving resources by managing energy consumption is of utmost importance to us and we aim to minimise emissions and the greenhouse effects from energy use.

Increasingly demanding targets have been set for 2020 by our Group Executive Committee under the guidance of the SHEQ Steering Committee. To ensure actions can be taken to bring about change, all major SHE targets are set over a five-year time period.

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Water

Responsible water management is a critical concern for the chemical industry as water is used in many production processes. We use water for a variety of purposes in the production of our ingredients which generates wastewater effluent.

Biodiversity

We are a beneficiary of ecosystems services which provide a variety of provisioning, regulating and cultural services. Critical resources such as clean water, energy and flood protection benefit us as well as society at large and we take great care in monitoring and remediating any impact we have in order to protect these gifts from the natural environment.

 

Contribution to value creation

Our approach to waste management reduces the risk of environmental harm as well as the associated costs of waste management, adding value. Our efforts in this are linked to our sustainable strategy and demonstrates integrity throughout our global operations.

Energy

Energy reductions enable increases in profitability, enhancement in the reputation of our products and helps to protect natural resources. Further, our sustainably developed products enable our customers to benefit from significant energy reductions in their processes as well as carbon benefits ‘in use’ during the lifetime of the end application.

Water

Efficient water management not only reduces costs associated with wastewater treatment but protects this vital resource. By innovating in product design and manufacturing processes we aim to lead the way in efficient water use in a chemical industry setting at our operations across the globe, especially in those areas of water insecurity or stress.

Protection of Ecosystems

As responsible stewards of ecosystems and the services they provide, we contribute to the future availability of these essential resources to humanity and the natural world.

 

Boundary

We focus on the impacts of our own operations, which can be monitored and controlled directly. Increasingly, we are also taking account of impacts along our supply chains.

Waste Management

We ensure that as little waste as possible is generated during the development and manufacture of our products. Our sites are carefully monitored in order to gather data on which create the most waste over a defined period, the make-up and classification of the waste and which waste stream it belongs to e.g. recycled, landfill, hazardous.

Energy

We continuously make energy efficiency improvements our own operations and are increasingly influencing our supply chain to make reductions in energy use. Further, the in-use benefits of our products provide further energy reductions in our customers end applications.

Water

Croda uses water in all its operations.

Read more: pages 27, 32 & 35 of our 2019 Sustainability Report.

Read more: GRI 303-2 Management of water discharge-related impacts

Biodiversity

A review of the locations of our 19 manufacturing sites did not identify any sites that are located in, or adjacent to protected areas or in areas of high biodiversity according to the Ramsar Convention on Wetlands and UNESCO World Heritage Sites.

As our manufacturing sites are mainly located in industrial areas, sensitive habitats are normally unimpacted.

We have identified that six of our manufacturing sites are close to some areas of high biodiversity, which are Hull (UK), Rawcliffe Bridge (UK), Campinas (Brazil), Mevisa (Spain), Cikarang (Indonesia) and Shiga (Japan). We are managing the environmental impact of these sites at a local level and setting targets to ensure that we minimise our impact on the environment by effectively managing the material business risk of Environmental Impact.

Further, we have helped to develop guidance for compliance with the Nagoya Protocol, an international agreement that aims to fairly share benefits that come from using genetic resources (GRs), the final objective being the sustainable use of biodiversity globally. We have been a constant voice in driving industry transformation to RSPO (Roundtable on Sustainable Palm Oil) certified physical supply chains, contributing to over 30 industry presentations, panel debates and media interviews on the issues around sustainable palm oil.