Case Study

Verification for Croda’s scope 1, 2 and 3 emissions

We initially engaged Carbon Smart to conduct a verification of our Scope 1 and 2 GHG reporting, following a recommendation from an industry contact. We found their consultants to be well experienced in this kind of assignment, which enabled us to make rapid progress in identifying and resolving issues. Following their successful verification of our Scope 1 and 2 GHG emissions, we also asked Carbon Smart about verification of our Scope 3 GHG emissions report, and at short notice, they were able to offer advice and coaching to us on our approach, leading to verification of our Scope 3 reporting. We are very pleased with Carbon Smart’s work, which enabled us to achieve verification of our Scope 1, 2 and 3 GHG emissions reporting on time and within budget. 

Dr Terry ThistlethwaiteVP Sustainability, Croda International Plc

The challenge

Croda is a global speciality chemicals company creating, making and selling innovative ingredients that deliver real benefits to a range of diverse end-products including health and beauty, engine lubricants and plastics.  Croda has monitored and publicly disclosed its global greenhouse gas (GHG) emissions performance for 7 years and has been continuously challenging itself to develop leading-edge sustainable technologies and industry expertise as the business grows

Croda discloses its GHG emissions annually, according to the World Resources Institute (WRI) GHG Protocol Corporate Standard and is committed to achieving reporting excellence by ensuring relevant, accurate and transparent reporting procedures. The SHE (Safety, Health and Environment) team retrieves, collates and translates raw data into GHGs from over 70 global manufacturing, warehousing and office sites, across more than 20 emissions categories.  Such a task is extremely challenging; and as such, the SHE team has sought third party verification to mitigate the risk of errors and misstatements in its reporting.

The process

During the course of 2016, Carbon Smart ran a first ‘dry run’ verification process for Croda on their 2015 environmental data. The team tested Croda’s reporting methodology, processes and procedures against the best practice reporting principles of accuracy, transparency, consistency and completeness. Carbon Smart issued a practical prioritised recommendations report; and Croda set in place a programme of reporting improvements across the globe to ensure they were reporting-ready.  At the start of 2017, Carbon Smart ran a full verification engagement on Croda’s 2016 data against tough timeframes. During the verification engagement, Carbon Smart evaluated:

  • Alignment of organisational scope and coverage of emissions data
  • Raw data evidence pathway from invoices / activity data through to final GHG inventory results
  • Data consolidation systems and internal quality assurance processes
  • Application of extrapolations / estimations and energy / carbon conversion factors applied
  • Overarching data collection processes, timeframes and communications

The impact

Croda has achieved limited verification of its GHG emissions in accordance with the ISO 14064:3 standard, across scopes 1, 2 and 3 for 2015 and 2016 against challenging reporting timeframes.  Over the course of the past 9 months, the Croda SHE team has significantly tightened up its reporting practices, updated its procedures for the latest reporting standards, and taken the global data collection team on this journey. With the attribute of third party verification, Croda has increased trust in their reporting from stakeholders and investors and has significantly reduced the risk of material emissions misstatements.