Croda International is a global speciality chemicals manufacturer producing high-quality ingredients and technologies for some of the most successful brands in the world in sectors such as personal care, health and agriculture. Croda puts sustainability at the heart of its operations and has made ambitious commitments to set a science-based emissions reduction target and create innovative products that have a positive effect on the environment and society. This is supported by its long-term strategy to become Climate, Land and People positive by 2030.
This level of ambition requires Croda to not only understand its impacts on the environment, climate and the opportunities for reduction, but also to collect, calculate and report relevant and highly accurate data, including its greenhouse gas (GHG) emissions from own operations and the value chain.
Effective mitigation of climate impacts starts with the appropriate measurement of emissions and identification of yearly performance trends. However, as most manufacturing companies would relate, accurate data collection and calculation of emissions in line with standards comes with its challenges, risks of errors and subsequent misreporting of impacts.
Croda has taken steps to reduce the risk of reporting materially incorrect emissions by undertaking independent third-party verification. This type of engagement increases the integrity of the GHG inventory and helps demonstrate to stakeholders the alignment with relevant standards and best practice. In addition, verification provides confidence to Croda that any organisational changes, such as acquisitions, are fully incorporated in the footprint and the process of re-baselining / restating emissions is done correctly.
Most organisations that have their emissions verified, do so to a limited level, where a relatively small percentage of emissions are included in scope of verification and the independent opinion outlines a negative statement, where the verifier did not identify any “material” discrepancies between GHG emissions reported and actual data. Whilst a limited engagement does provide many benefits in reporting, it has a significantly lower scope and overall coverage of verified emissions compared to the most comprehensive level, reasonable verification.
Croda appointed Avieco as subject-matter experts, to conduct a reasonable verification engagement using ISO 14064-3:2019 standard, taking an approach that followed the rigour of the standard and streamlined the process through a 3-phase delivery model.
The level of verification requires a distinct approach by requiring a more thorough assessment of the boundary of reporting and the procedures applied in data collection, whilst also comprising a much wider emissions’ scope through extensive data testing, ranging between 70% – 80% coverage of all emissions. This is the most comprehensive approach, as absolute verification is not attainable due to intrinsic uncertainties related to the nature of accounting systems and emissions conversions.
By having the most of the GHG emissions and reporting processes scrutinised in such detail, Croda’s customers and other interested parties, such as ESG rating agencies, analysts and investors, can use the data in their assessments with confidence that it has a high degree of accuracy and completeness.
Despite the challenges faced due to the COVID-19 pandemic, Croda decided to undertake another reasonable verification engagement in 2020 and start implementing the key opportunities identified with Avieco. This demonstrates to internal and external stakeholders the commitment to reporting accurate GHG emissions statements, and equally important, an appetite for continuous improvement in reporting practices and long-term performance, supporting its customers to further reduce their scope 3 emissions.
Croda’s 2019 verification statement issued by Avieco (formerly Carbon Smart) can be accessed here.
Verification engagements provide a host of benefits to organisations that measure and disclose GHG emissions impacts, regardless of their level of experience in the reporting space, namely:
Corina Radu, Senior Consultant
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