Palm tress for sustainable sourcing page

Procurement and sustainable sourcing

Responsible sourcing starts with how we source materials

Using natural resources brings both responsibility and opportunity. When sourcing materials, we aim to avoid negative environmental and social impacts, while contributing to positive change across our supply chains.

This requires:

  • A deep understanding of where and how materials are sourced
  • Close collaboration with suppliers and partners
  • Full transparency and traceability across the supply chain

By working in partnership, we support the United Nations Sustainable Development Goal 17, recognising that collaboration leads to greater impact.


Responsible procurement across the value chain

From sourcing raw materials to delivering products, we embed responsible stewardship at every stage.

We are committed to:

  • Operating with honesty and integrity
  • Meeting all relevant legislation and regulatory requirements
  • Ensuring suppliers share our standards and values

Our approach ensures that sustainability is integrated into both procurement decisions and long-term supplier relationships.

Sustainable farming outside sun shining

Working with suppliers to improve performance

Effective sourcing of materials depends on strong supplier partnerships. We work proactively with suppliers to improve sustainability performance and encourage continuous progress.

We use independent assessment through EvoVadis, covering:

  • Environment
  • Labour and human rights
  • Ethics
  • Sustainable procurement

Alongside this, we look for recognised third-party certifications to validate sustainability credentials, including:

  • ISCC (International Sustainability and Carbon Certification)
  • RSPO (Roundtable on Sustainable Palm Oil)
  • UEBT (Union for Ethical BioTrade)
  • SuCCESS (Sustainable Castor Oil Association)
  • USDA BioPreferred®*

*USDA BioPreferred is a registered trademark of the US department of Agriculture

 

Setting clear expectations for suppliers

Our Supplier Code of Conduct defines the minimum standards required for doing business with Croda.

It covers:

  • Human rights and labour standards
  • Health, safety and environmental management
  • Ethical business conduct, including bribery and corruption
  • Animal welfare and conflict minerals
  • Quality and compliance

This ensures that sourcing materials is consistently aligned with our sustainability commitments.

Supplier Code of Conduct

Sustainable palm derivatives

Our approach to sourcing materials, including palm-derived raw materials, focuses on certification, transparency and traceability across the supply chain.

We support responsible sourcing through RSPO supply chain mapping and certification. In 2022, 89.3% of our global palm derivatives consumption was RSPO physically certified (Mass Balance), rising to 99% in Europe and the Americas. Completion of full certification remains challenging, largely due to slower market progress in Asia.

Through our partnership with Action for Sustainable Derivatives (ASD), 99.4% of our palm-based raw material volumes were covered by supply chain mapping in 2022.


Driving greater transparency

We continue to strengthen visibility across key stages of the value chain:

  • 97.7% traceability at refinery level
  • 95.4% at mill level
  • 33.5% at plantation level

Of the volumes that are traceable, 99% originate from Indonesia (57%), Malaysia (39.2%), Thailand (2.3%) and Colombia (0.5%), with 1,078 mills accounting for 90.0% of traceable volumes.

Statement on grievances in the Palm Sector

Palm substitution

Action for sustainable derivatives

Sustainable palm oil statement