Croda’s response to Sustainable Markets Initiative for supplier sustainability targets
The recent open letter from the Sustainable Markets Initiative Health Systems Task Force called for Healthcare supply chains to become greener, more efficient and circular and set out a series of supplier targets to enable value chain decarbonisation. We are delighted to see this topic being tackled so emphatically and Croda fully endorses the view that joint action at scale is needed to move the needle on sustainability and stands ready and willing to participate.
We are pleased to provide the following overview of Croda’s current status regarding the relevant supplier targets announced:
Assess and disclose Scope 1, 2, and 3 emissions by 2025
✓ Croda has been assessing and disclosing Group level Scope 1, 2 and 3 emissions for a number of years and uses 2018 as our baseline year for reduction targets. By 2024, using methodology aligned with Together for Sustainability guidance, Croda will provide Product level Scope 1, 2 and upstream Scope 3 emissions in the form of a Product Carbon Footprint.
By 2025, commit to set near-term targets aligned with the 1.5 degree pathway (SBTi)
✓ In 2021, Croda International Plc committed to be net zero by 2050 and had our near-term targets verified to SBTi 1.5 degree pathway.
By 2025, set targets to reduce waste (including solvents) and energy and reuse materials in manufacturing
✓ Croda’s target is to eliminate process waste to landfill across our operations by the end of 2024. Croda’s R&D community have been guided by the principles of Green Chemistry for more than a decade and are now aligned with the UN SDGs focusing on minimising carbon, energy and water use. Where solvent use is critical to maintaining quality, efforts are made to eliminate hazardous materials and reduce, reuse or recycle where possible. For example a 90% reduction is solvent use was achieved in scaling our LNP production as part of the COVID-19 response.
Commit to switch to at least 80% renewable power by 2030 and make commitment public
✓ Each of our manufacturing sites have an externally verified roadmap to achieve our 2030 target of reducing emissions by 50%. In 2022, 31% of our energy was from non-fossil sources. Our Croda Pharma manufacturing site in Denmark is working to achieve scope 1 & 2 carbon neutrality in 2024 utilising 100% renewable power.
By 2030, explore options to source green heat
✓ Each of our manufacturing sites has an externally verified roadmap to achieve our 2030 target of reducing emissions by 50%. This includes options to source green heat appropriate to the geographical region of the manufacturing site.
Commit to set standards for own suppliers
✓ By the end of 2024, all key suppliers will be required to achieve a minimum of the average score from EcoVadis (or equivalent) or will have an action plan with timelines to close gaps.
Set targets to increase water efficiency and commit to adopt water stewardship standard
✓ Croda’s target is to reduce our water use impact by 50% by the end of 2029 (from 2018 baseline). Minimising our water impact is critical in our aspiration to become Net Nature Positive by 2030.
We hope this information is useful and reassuring to you. We are committed to continuing along our sustainability journey, becoming climate, land & nature and people positive by 2030, and contributing to your positive impact in this sphere. We look forward to engaging further on these matters.