GRI Sustainability Reporting 2010 CSR Performance
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Transcript of GRI Sustainability Reporting 2010 CSR Performance
GRI Sustainability Reporting 2010 CSR Performance
This is the third consecutive year that Croda International Plc has provided a Global Reporting Initiative (GRI) Report using the G3 sustainability reporting guidelines.
In 2010, the Strategy and Profile Disclosures and Performance Indicators that Croda selected in 2008 were reviewed and found to still be relevant. Croda continue to report at Level C for the 2010 reporting period. The report is self declared.
Application of GRI guidelines at Level C requires information relevant to all those points of the ‘G3 Strategy and Profile Disclosures’ (Strategy and Analysis, Organisational Profile, Report Parameters, Governance, Commitment and Engagement) and at least ten Performance Indicators, including at least one from each of: Social (SO), Economic (EC) and Environmental (EN). Croda’s published CSR Report for 2010 contains a GRI content summary only. This full GRI Report provides more detail on Strategy and Profile Disclosures and selected Performance Indicators. Croda has reported on twenty one Performance Indicators this year. These indicators were chosen as having high relevance and materiality to our business. Croda aim to report fully in all instances and when this has not been possible they have identified partial reporting. The main sources of information for this GRI Report are www.croda.com/CSR, www.croda.com, 2010 CSR report and the Company Annual Report. The following abbreviations are used in this report: CSR – Corporate Social Responsibility, GRI – Global Reporting Initiative and www.croda.com – the Company website.
GRI G3 Content Index
The table below gives the Standard Disclosures that Croda disclose for their GRI G3 report at Level C.
Strategy and Profile Disclosures
Description Reporting Level
1.1 Statement from the most senior decision-maker of the organisation and overall vision Reported
1.2 Description of key impacts, risks and opportunities Reported
2.1 Name of the organisation Reported
2.2 Major brands, products and/or services including volume or quantity Reported
2.3 Operational structure of the organisation Reported
2.4 Location of the organisation's headquarters and major divisions Reported
2.5 Countries of operation Reported
2.6 Nature of ownership and legal form Reported
2.7 Markets served Reported
2.8 Scale of the reporting organisation Reported
2.9 Significant changes during the reporting period regarding size, structure or ownership Reported
2.10 Awards received in the reporting period Reported
3.1 Reporting period Reported
3.2 Date of most recent previous report Reported
3.3 Reporting cycle Reported
3.4 Contact point for questions regarding the report or its contents Reported
3.5 Process for defining report content Reported
3.6 Boundary of the report Reported
3.7 Limitations on the scope or boundary of the report Reported
3.8 Basis for reporting that can significantly affect comparability Reported
3.9 Data measurement techniques and the bases of calculations Not Reported
3.10 Explanation of any re-statements of information Reported
3.11 Significant changes from previous reporting Reported
3.12 Table identifying the location of the standard disclosures in the report Reported
3.13 Policy regarding external assurance for the report Not Reported
4.1 Governance structure of the organisation Reported
4.2 Is the Chair of the Board of Directors also an executive officer? Reported
4.3 Members of the Board of Directors that are independent and/or non-executive members Reported
4.4 Mechanisms to provide recommendations or direction to the highest governance body Reported
4.5 Linkage between compensation and the organisation's performance Reported
4.6 Processes to ensure conflicts of interest are avoided Not Reported
4.7 Process for determining the qualifications and expertise of the members of the Board of Directors Not Reported
4.8 Statements of mission or values, codes of conduct and principles Reported
4.9 Procedures for overseeing economic, environmental and social performance Not Reported
4.10 Process for evaluating the highest governance body's performance Not Reported
4.11 Explanation of how the precautionary approach or principles are addressed Not Reported
4.12 Externally developed economic, environmental and social charters to which the organisation subscribes
Reported
4.13 Memberships in associations Reported
4.14 List of stakeholder groups engaged by the organisation Reported
4.15 Basis for identification and selection of stakeholders Reported
4.16 Approaches to stakeholder engagement Not Reported
4.17 Key topics and concerns raised through stakeholder engagement Not Reported
Performance Indicators
Economic Performance Indicators Reporting Level
EC1 Direct economic value generated and distributed Reported
EC2 Financial implications and other risks and opportunities due to climate change Not Reported
EC3 Coverage of the organisation’s defined benefit plan obligations Reported
EC4 Significant financial assistance from government Not Reported
EC5 Range of wage ratios Not Reported
EC6 Policy practice and proportion of spending on locally-based suppliers Not Reported
EC7 Procedures for local hiring Not Reported
EC8 Development and impact of infrastructure investments and services Not Reported
EC9 Significant indirect economic impacts Not Reported
Environment Performance Indicators Reporting Level
EN1 Materials used Reported
EN2 Recycled input materials Not Reported
EN3 Direct energy consumption by primary source Reported
EN4 Indirect energy consumption by primary source Reported
EN5 Energy saved due to conservation and efficiency improvement Not Reported
EN6 Initiatives to provide energy-efficient or renewable energy based products and services Not Reported
EN7 Initiatives to reduce indirect energy consumption Not Reported
EN8 Total water withdrawal by source Reported
EN9 Water sources significantly affected by withdrawal of water Not Reported
EN10 Water recycled and reused Not Reported
EN11 Land in or adjacent to protected areas and areas of high biodiversity value Not Reported
EN12 Significant biodiversity impacts Not Reported
EN13 Habitats protected or restored (Additional) Not Reported
EN14 Strategies, current actions and future plans for managing impacts on biodiversity Not Reported
EN15 IUCN Red List species in areas affected by operations Not Reported
EN16 Direct and indirect greenhouse gas emissions Reported
EN17 Other relevant indirect greenhouse gas emissions Not Reported
EN18 Initiatives to reduce GHG emissions Not Reported
EN19 Emissions of ozone-depleting substances Not Reported
EN20 NOx, SOx and other air emissions Reported
EN21 Total water discharge Reported
EN22 Total weight of waste Reported
EN23 Significant spills Reported
EN24 Waste deemed hazardous under the terms of the Basel Convention Not Reported
EN25 Identity, size, status and biodiversity value of water bodies and related habitats Not Reported
EN26 Initiatives to mitigate environmental impacts of products and services Reported
EN27 Products and packaging materials reclaimed Not Reported
EN28 Significant fines and sanctions Reported
EN29 Transportation impacts Not Reported
EN30 Environmental protection expenditures Not Reported
Human Rights Performance Indicators Reporting Level
HR1 Investment agreements with human rights clauses Not Reported
HR2 Suppliers and contractors screened on human rights Not Reported
HR3 Employee training on aspects of human rights Not Reported
HR4 Incidents of discrimination and actions taken Not Reported
HR5 Right to exercise freedom of association Not Reported
HR6 Risk for incidents of child labour Not Reported
HR7 Risk for incidents of forced labour Not Reported
HR8 Security training – human rights policies Not Reported
HR9 Violations involving rights of indigenous people Not Reported
Labour Practices & Decent Work Performance Indicators Reporting Level
LA1 Workforce by employment type, contract and region Reported
LA2 Employee turnover Reported
LA3 Benefits provided only to full-time employees Not Reported
LA4 Employees covered by collective bargaining Not Reported
LA5 Minimum notice periods Not Reported
LA6 Workforce represented in health and safety committees Not Reported
LA7 Rates of injury and illness and number of work-related fatalities Reported
LA8 Education, training, counselling, prevention and risk-control programmes for workforce and others
Not Reported
LA9 Health and safety topics covered in union agreements Not Reported
LA10 Training per year per employee Reported
LA11 Programmes for skills management and lifelong learning Not Reported
LA12 Employees receiving regular performance and development reviews Not Reported
LA13 Composition of governance bodies and workforce per category Not Reported
LA14 Ratio of salary of men to women Not Reported
Society Performance Indicators Reporting Level
SO1 Programmes to assess impacts on communities Reported
SO2 Business units analysed for risks related to corruption Not Reported
SO3 Training about anti-corruption policies Not Reported
SO4 Actions in response to incidents of corruption Not Reported
SO5 Public policy positions and lobbying Not Reported
SO6 Value of contributions to political parties and groups Reported
SO7 Legal actions for anti-competitive behaviour Not Reported
SO8 Fines and sanctions for non-compliance Not Reported
Product Responsibility Performance Indicators Reporting Level
PR1 Assessment of health and safety impacts Not Reported
PR2 Non-compliance with regulations and codes during life cycle Not Reported
PR3 Information required by procedures Reported
PR4 Incidents of labelling non-compliance Not Reported
PR5 Practices related to customer satisfaction Not Reported
PR6 Adherence to laws and standards related to marketing communications Not Reported
PR7 Incidents of non-compliance with marketing related regulations Not Reported
PR8 Customer privacy and data loss Not Reported
PR9 Non-compliance with regulations for use of products Reported
Strategy and Analysis
1.1 Statement from the most senior decision-maker of the organisation and overall vision
Corporate Social Responsibility Executive Sponsor Statement
Our Responsibility
For more than eighty years, Croda has been a global leader in naturally derived speciality chemicals. The successful Uniqema integration in 2006 has resulted in a business that is well placed to meet the challenges of the twenty first century.
Throughout its history, Croda has shown a commitment to safety, environmental and social responsibility through recognising and implementing good practice and encouraging a culture of responsibility and action in all that they do.
Sustainability and social responsibility have always been synonymous within Croda and continues to be central to its vision going forward.
The Croda Vision
Underpinning life at Croda is the Croda Vision: a statement of the Company culture, which both informs and describes our behaviour:
• To remain an independent company and operate as one global team
• We will remain a ‘fun’, lively, stimulating and exciting place to work, where all employees have the courage to question, and all functions and individuals are valued
• There will be a place for many styles of leadership, but all leaders will have as their primary objective to build other leaders
• We can only achieve our goals through excellent and constant communication, creativity and setting clear objectives at every level
• We will continually improve
• We will continue to be an ethical and responsible company.
Croda CSR Policy
The Croda Vision was the basis for the Croda CSR Policy. Croda believes that to be successful as a company it must act responsibly and with integrity in all areas of its activities. Croda is committed to its business operations throughout the world being conducted in a manner that is consistent with relevant good practice in relation to social responsibility. It is the responsibility of everyone working within the Company to ensure that wherever Croda operates in the world they will:
• Work within the standards in our Code of Ethics to ensure that all our business practices are conducted with integrity
• Treat our employees fairly, complying with the ILO declaration on the Fundamental Principles and Rights at Work and providing a rewarding environment in which our employees are engaged and developed
• Respect our customers and suppliers and aim to treat them honestly and responsibly with consistent standards wherever we operate
• Minimise any negative impact on the environment that might be associated with our operations or our products, searching out new ways to conserve natural resources and innovating to improve our products and processes
• Be a good neighbour. Not just keeping our own house in order but also reaching out to support, aid and relate to those in our neighbourhood. In particular we will focus on providing educational and academic support and engaging in projects that will benefit our local communities
• Seek out opportunities for dialogue with all our stakeholders
• Monitor and record our achievements under this policy so that we may continuously improve
Our Strategy
The core principles of Croda’s strategy have remained valid since 1999. They are tested every year and every year they have been found to be a solid framework for successful growth. Croda's aim is to be a leading, independent, global speciality chemical company. They will only invest in businesses, current and future, that can:
• Be truly global
• Create profitable innovation
• Operate in end markets that have long term growth well above global GDP
• Realistically sustain high operating margins
A focus on markets and market drivers means Croda is well aligned with the major trends that will shape the future consumer and industrial markets. Trends like an ageing population, health and well-being, sustainability and the correct use of renewable resources present great challenges and even greater opportunities. Croda’s culture of pragmatic innovation in every aspect of the business, not just in product development, means they are well placed to be a truly leading speciality chemicals company. Croda has offices and technical facilities in 35 countries and operate 17 state of the art factories across Europe, Asia and the Americas. Through this network they are able to match and, in many instances, exceed their customers’ rapid globalisation.
All operating companies are set sales, profit growth and operating margin targets that form the basis of Croda's budgets and strategic plans. They report annually on progress against five key financial performance indicators:
• Return on sales
• EPS growth
• Post tax ROIC
• Net debt to EBITDA
• EBITDA to interest cover
Our Corporate Social Responsibility Commitments
The use of the ‘4 Pillars’, which are Our Partners, Our World, Our People and Our Neighbours - has improved communication throughout the organisation and helped to share best practice with Croda's more than 3150 employees around the world.
Croda's CSR Steering Committee, which has representation from all of the business divisions and regions, has made a huge difference by building on the existing momentum. Their commitments and their objectives have been carefully selected to align with the priorities across their ‘4 Pillars’ of CSR.
The commitments for each of Croda's ‘4 Pillars’ are detailed in the Corporate Social Responsibility Action Plan (2010 CSR report), which identifies the company's commitments, targets, achievements, progress and future. This plan is reviewed annually to ensure the priorities remain relevant and to set new objectives if necessary. Ownership and delivery of these objectives and targets rests with the Executive Committee.
Croda has identified its top priorities for action and this report provides information on performance against objectives.
In order to provide a consistent and transparent approach to CSR reporting Croda decided to adopt the Global Reporting Initiative (GRI) format. Most important, however, is the enthusiasm, creativity and inspiration of employees worldwide in their endeavours to sustain a successful and responsible company.
Further details of Croda's aims, commitments and targets can be found in the 2010 CSR Report.
1.2 Description of key impacts, risks and opportunities
Croda has continued to pursue the broad opportunities available to them as defined in the commitments and targets set in the 2010 CSR report. Croda aims to continue focusing efforts on strengthening its relationships with key stakeholders and with the communities in which they operate, continuing to develop and improve product stewardship and innovation and to reduce environmental impact.
The use of formal internal risk assessment processes help Croda to identify the opportunities and challenges associated with corporate responsibility. Croda also talks to stakeholders in order to identify and understand developments not directly under their span of control. A comprehensive description of Croda’s commitments and targets can be found in the 2010 CSR report on pages 25-29. These will be reviewed annually (or every 5 years for Our World targets) to make sure that they continue to be relevant. Key developments and areas of focus in 2011 are:
Our Partners The ‘responsible sourcing and use of natural and renewable raw materials’ and ‘climate change’ objective are still Croda's key priorities. In 2010, Croda also expanded the 2009 gate-to-gate pilot assessment of products manufactured at their sites in the USA to include information from suppliers on raw materials, enabling the compilation of cradle-to-gate data. They also developed systems to enable them to map the use of renewable raw materials in new product launches and will continue to monitor the results in 2011 to obtain baseline measurements for the setting of future targets. Four new targets have been set for 2011 under Our Partners, further details can be found in the 2010 CSR report page 25.
Our World Croda has established and measured performance against a set of stretching objectives and targets in this area for many years. Since previous targets were set in 2006, Croda has made significant progress in reducing their energy and water use, reducing their VOC emissions and reducing their waste to landfill. In 2010, all 17 of manufacturing sites achieved accreditation to the OHSAS 18001 and ISO 14001 standards and Group average compliance with effluent discharge consents was 99%. Ambitious targets for the future for Our World have been set, more information on these can be found in the 2010 CSR report pages 27-28.
Our People Croda has identified a range of objectives and targets relating to employee engagement and satisfaction, communication and openness, employee development and best practice in occupational health. In 2010, they conducted employee surveys in a number of locations and aim to complete these other major locations during 2011. Also in 2010 they launched a company wide performance appraisal system, ‘Croda Aspire’, improving the quality of the appraisal process for employees and managers. New targets for 2011 and beyond have been set, more information can be found in the 2010 CSR report page 26.
Our Neighbours The commitment of Croda to its communities has been a focus for a number of years. The ‘Croda in the Community’ policy declares their intent to be a good neighbour. In 2008, Croda set three objectives with regard to Our Neighbours:
• Openness of Communication
• Community Involvement
• Community Education
These were selected because of their importance to the community and to the business. It is expected that these core issues will remain as part of the CSR strategy in future years and will develop to provide greater benefit to Our Neighbours and the business. During 2010, Croda completed the implementation of the ‘1% Club’ at all of its global manufacturing sites, enabling all employees around the world to spend time actively involved in their communities. New targets have been set in 2011 for stakeholder engagement and community activity, more information on this can be found in the 2010 CSR report page 29.
Organisation Profile
2.1 Name of the organisation
Croda International Plc.
More information can be found on the company website at www.croda.com.
2.2 Major brands, products and/or services
Croda uses a variety of technologies to manufacture a uniquely broad portfolio of oleochemical and speciality products. These products provide enhanced functionality when used as ingredients, additives, or processing aids within a wide cross section of industries, including many of the following:
Consumer Care
Personal Care
Markets: Croda create products for the skin care, sun care, hair care, baby care, colour cosmetics, male grooming, bath and shower and antiperspirant markets. Products: These include inorganic UV absorbers, lanolins, emollients, polymers, proteins, surfactants and skin care actives. Read more at www.croda.com
Health Care
Markets: Croda's high purity ingredients are used in the pharmaceutical, dermatological, nutraceutical, functional food and animal health markets. Products: These include concentrated omega fatty acids, ultra pure medical grade lanolins, Super Refined™ excipients and a wide range of surfactants, solubilisers, emulsifiers and fatty acid esters.. Read more at www.croda.com
Crop Care
Markets: Croda provide inert ingredients and adjuvants for the full spectrum of agrochemical applications. Products: These include polymeric surfactants, dispersants, wetting agents, emulsifiers, stabilisers, adjuvants and seed coating binders. Read more at www.croda.com
Industrial Specialities
Home Care
Markets: Croda supply ingredients for laundry, household, industrial and institutional cleaning applications, as well as for wipes, tissues, nappies and hygiene articles. Products: These include proteins and their derivatives, softeners, surfactants, solvents, emulsifiers, solubilisers, hydrotropes, tissue lotions, botanical extracts, fatty acids and glycerine. Read more at www.croda.com
Process Additives
Markets: Croda supply ingredients and additives for use in a range of market applications including rubber, candles, textiles, leather and surfactants. Products: These include the full range of our products; from base oleochemical fatty acids and glycerine to esters, polymeric surfactants and amides. Read more at www.croda.com
Polymer Additives
Markets: Croda provide speciality effects for a wide range of industrial and consumer plastics, packaging and rubber applications. Products: These include slip, anti-block, antistatic, anti-fog, mould and torque release agents as well as UV absorbers, dispersants and concentrates. Read more at www.croda.com
Coatings and Polymers
Markets: Croda provide environmentally friendly, high performance solutions to paint formulators, resin manufacturers and additive producers. Products: This includes a wide range of naturally derived oleochemicals and speciality surfactants. Read more at www.croda.com
Lubricant Additives
Markets: Croda supply ingredients based on renewable raw materials to automotive and industrial lubricant markets. Products: These include multi-functional esters, polyalkylene glycols and speciality lubricant additive products deliver high performance, energy efficient solutions to meet the challenging demands of the lubricant industry. Read more at www.croda.com
Geo Technologies
Markets: Croda provide innovative, efficient solutions for the oil field, mining and water treatment markets. Products: These include demulsifiers for the oil field industry, emulsifiers for explosives and water soluble polymer components for the formulation of water treatments. Read more at www.croda.com
More information on Croda's products, markets and applications can be found at www.croda.com.
2.3 Operational structure of the organisation, including main divisions, operating companies, subsidiaries and joint ventures
Croda’s corporate headquarters are at Cowick Hall in East Yorkshire, England. They have technical centres and manufacturing plants throughout the world and are a world leader in natural based speciality chemicals, sold to virtually every type of industry.
Croda's activities can be broadly classified into two sectors:
Consumer Care, which consists of global businesses in personal care, health care and crop care.
Industrial Specialities, which comprises home care, base oleochemicals, additives for polymers, polymers and coatings, lubricants and lubricant additives and processed vegetable oils.
In addition, the Group has an Enterprise Technology function that identifies and integrates new technology into the global business structure.
More information on the organisation structure can be found at www.croda.com under: Worldwide Facilities and Locations and Company Overview.
2.4 Location of organisation’s headquarters and major divisions, operating companies, joint ventures and subsidiaries
Croda’s corporate headquarters are at Cowick Hall in East Yorkshire, England.
More information can be found at www.croda.com under: Worldwide Facilities and Locations
2.5 Number of countries where the organisation operates and names of countries with major operations, or that are specifically relevant to the sustainability issues covered in the report
Croda is a truly international company with over 3174 (at 31 December 2010) employees working in 35 countries. The strength of the research, development and manufacturing capabilities is underpinned by a global network of sales offices and technical/customer support teams.
Countries of Operation
As at 31st December 2010
Asia Pacific Europe and the Middle East The Americas
Australia UK†**** USA**
China France** Canada
India* Germany* Argentina
Indonesia* Italy* Brazil*
Japan* The Netherlands* Chile
Singapore* Poland Columbia
South Africa Russia Mexico
South Korea Spain* Peru
Thailand Sweden
Zimbabwe United Arab Emirates
Hong Kong Belgium
Malaysia Czech Republic
Taiwan Hungary
Key † Head Office * Manufacturing site
More information can be found at www.croda.com under: Worldwide Facilities and Locations.
2.6 Nature of ownership and legal form
Croda International is a Public Limited Company.
The Articles of Association can be found at www.croda.com under: Corporate Governance
The ownership structure and major shareholders can be found in the 2010 Annual report at www.croda.com.
2.7 Markets served (including geographic breakdown, sectors served and types of customers/beneficiaries)
Markets served can be found under disclosure 2.2.
The markets served and their geographic breakdown can be found at www.croda.com website under: Products and Markets and Worldwide Facilities and Locations.
2.8 Scale of the reporting organisation
The Group employed, on 31 December 2010, 3174 employees worldwide.
Croda operated 17 manufacturing sites and more than 40 commercial offices in 35 countries around the world on 31 December 2010.
In 2010, 51.5% of sales revenue was to the Consumer Care market and 48.5% to Industrial Specialties.
In 2010, the net sales by revenue and destination were: Europe 43%, Americas 35%, Asia 17% and ROW 5%.
In 2010, revenue from continuing operations was £1001.9 million.
At 31 December 2010 total capitalisation was £2203.6 million, £220.3 million debt and £1983.3 million equity.
These figures apply to Croda International Plc in total.
Further information can be found in the Annual report at www.croda.com.
2.9 Significant changes during the reporting period regarding size, structure or ownership
In May 2010, the Group sold its Emmerich site and associated business in Germany to KLK Emmerich GmbH, a subsidiary of the KLK Group (Kuala Lumpur Kepong Berhad), for €55.0m. The Emmerich site produced fatty acids and glycerine, most of which were sold into the Industrial Specialities market.
In November 2010, the Group purchased its joint venture partners’ 40% share in PT Croda Indonesia Ltd for a cash consideration of $1.6m. At the date of purchase the valuation of this holding was £0.7m, therefore, a small amount of goodwill of £0.3m was generated on the transaction, which has been written off directly to reserves.
2.10 Awards received in the reporting period
• Croda International Plc has been awarded membership of the FTSE4Good series for a fourth consecutive year. FTSE4Good recognises companies that meet globally recognised corporate social responsibility standards.
• Croda received the 'Most Successful Large Company' award at Yorkshire Excellence in Business Awards.
• The Sun Care & Biotechnology team at Ditton won the 'Innovation Award' at the Chemicals NorthWest Annual Awards, for Croda’s development and launch of SolPerForm™ 100.
• Paul Staniland from Ditton won the 'Young Achiever' award at the Chemicals NorthWest Annual Awards, Paul has worked at Croda since 2008 as a research scientist in the metal oxides group.
• Croda Singapore received the 'Community Awareness & Emergency Response' award at Singapore Chemicals Industry Council's 2010 Annual Dinner.
• Croda Singapore received the 'Pollution Prevention' award at Singapore Chemicals Industry Council's 2010 Annual Dinner.
• Rawcliffe Bridge site received a 'Safety Award' from the CIA (Chemical Industries Association) in recognition of obtaining a mean lost time accident rate of 0.17 per 100,000 hours worked for the period 2007-2009.
• Croda South Africa won the 'Johnson and Johnson Supplier of the Year' award for 2010, this is the second year in a row Croda South Africa has won the award.
• Croda Japan received the award for Most Influential Distributor 2009/2010 from Dai-Ichi Kogyo Sieyaku Co. Ltd.
• Croda Sederma won the 'Connect & Develop Award' from Proctor & Gamble for 2009/20010 for Small/Medium Enterprise Partner of the Year.
• Croda Peru received the 'Supplier Award for Service and Quality' in 2010 from one of its key customers, Yobel.
• Croda's New Manager Development Programme was awarded a prestigious 'National Training Award' in recognition of its outstanding contribution and commitment to training and development in the workplace.
• Sean Christie, Group Finance Director, received the 'Outstanding Achievement' award at the Yorkshire Finance Director of the Year awards.
• Croda Brazil received the 'Silver Award' 2010 from O Boticário.
• Croda Brazil received the 'Bronze Award' 2010 from Jequiti.
• Croda Mexico received 'Quality & Service Award 2010' from Chinoin.
• Croda Brazil received the 'Award of Qualified Supplier' from the ABIHPEC (Brazilian Association of the Cosmetic Toiletries and Fragrance Industry).
Report Parameters
3.1 Reporting period for information provided
The Reporting Period is the 2010 calendar year. Reporting on objectives and target covers the period of application and not just performance in 2010.
3.2 Date of most recent previous report
The CSR Report for 2010 can be found at www.croda.com/CSR
With the implementation of GRI Reporting in 2008, this report is Croda's third GRI Report and reflects their application at level C. Previous reports can be downloaded from the GRI report archive.
3.3 Reporting cycle
Croda has an annual reporting cycle and their printed CSR Report is published each year and released in conjunction with the Annual Report.
3.4 Contact point for questions regarding the report or its content
The contact point is Sarah Millns, CSR Manager.
Contact details: [email protected]
Report Scope and Boundary 3.5 Process for defining report content
Croda has prioritised key issues based on an external review with stakeholders and an internal review conducted across all divisions worldwide.
The GRI indicators were selected following a process of assessment against these priorities and accounting for relevance and materiality as set out in the GRI G3 Guidelines.
3.6 Boundary of the report
This report covers all of Croda's international manufacturing and business locations.
Detailed reporting on Our World key performance indicators is for the manufacturing locations only.
3.7 State any specific limitations on the scope or boundary of the report
There are no specific limitations with concern to the scope or boundary of the report However, entities over which the business does not have control or significant influence are excluded from the scope of the report unless otherwise stated.
3.8 Basis for reporting on joint ventures, subsidiaries, leased facilities, outsourced operations and other entities that can significantly affect comparability from period to period and/or between organisations
The basis for reporting on joint ventures, subsidiaries, leased facilities and other entities does not significantly affect comparability from period to period.
3.10 Explanation of the effect of any re-statements of information provided in earlier reports and the reasons for such re-statement
There were no significant re-statements with relevance for GRI reporting.
3.11 Significant changes from previous reporting periods in the scope, boundary or measurement methods applied in the report
A set of four year continuous improvement targets for the key safety and environmental objectives were issued in 2007 using 2006 as the baseline. These targets run until the end of 2010.
Where necessary the performance against these objectives and targets has been re-based on current manufacturing operations at the end of 2010. For example, in 2010 the site at Emmerich, Germany, was sold and all data relating to the site has been removed from the statistics.
3.12 Table identifying the location of the standard disclosures in the report
Navigation to the standard disclosures that Croda report can be found at www.croda.com under CSR > GRI Report.
Governance, Commitments and Engagement
4.1 Governance structure of the organisation
The Board of Croda International Plc is committed to high standards of corporate governance as outlined in the Combined Code ("the Code") on Corporate Governance appended to the UK Listing Authority Listing Rules. The Board, which meets at least eight times a year has a formal schedule of matters specifically reserved to it for decision. It is primarily responsible for the strategy needed for the successful direction of an international company and currently comprises of the Chairman, the Group Chief Executive, the Group Finance Director and three independent non-executive directors. The Chairman is an independent (non-executive) director. All members of the Board have full access to the advice and services of the Company Secretary. Under the Company's Articles of Association all directors must offer themselves for re-election at least once every three years.
More information together with the Articles of association can be downloaded from www.croda.com under: Corporate Governance
4.2 Indicate whether the Chair of the highest governance body is also an executive officer
The Chairman is an independent (non-executive) director.
More information on the Board of Directors can be found in the Annual report.
4.3 For organisations that have a unitary board structure, state the number of members of the highest governance body that are independent and/or non-executive members
The Board is committed to high standards of corporate governance and to complying with the provisions of The Financial Reporting Council’s Combined Code on Corporate Governance (“the Code”) where practicable. This statement, together with the directors’ remuneration report, set out on pages 28-39 of the 2010 Annual report, describes how the relevant principles of governance set out in the 2006 version of the Code are applied to the Company.
The Board has ultimate responsibility for the overall leadership of the Company and in this role it assists in the development of a clear strategy for the Group, monitors operational and financial performance against agreed goals and objectives and ensures that appropriate controls and systems are in place to manage risk. It comprises the Chairman, the Group Chief Executive, the Group Finance Director and three independent non-executive directors who have a range of business, financial and international skills and experience. This provides an appropriate balance within the Board. Biographical notes appear on pages 21-22 of the 2010 Annual report. The Chairman and the Group Chief Executive have written accountabilities that have been approved by the Board. It is the Board’s opinion that all non-executive directors who served throughout the period under review were independent in accordance with the Code.
The Board has a formal schedule of matters specifically reserved to it and this is posted on the Company’s website, www.croda.com.
The Chairman and non-executive directors meet together without the executive directors present on an ad hoc basis and the non-executive directors meet at least annually in the absence of the Chairman in order to appraise his performance. In addition to formal Board meetings, the Chairman and the Group Chief Executive meet on a regular basis.
4.4 Mechanisms for shareholders and employees to provide recommendations or direction to the highest governance body
Croda holds an annual general meeting each year to which all shareholders are invited to attend and ask questions relating to the agenda of the meeting, which customarily deals with the annual report and accounts including the report on directors’ remuneration. In addition, UK company law provides statutory mechanisms for shareholders to require directors of companies to hold shareholder meetings and propose resolutions submitted by shareholders.
Croda believes that effective internal communication is vital to achieving its business objectives and communication and consultation strengthen the relationship between Croda and its employees. The Croda Vision states that:
• We can only achieve our goals through excellent and constant communication, creativity and setting clear objectives at every level.
The Vision also states that:
• All employees have the courage to question, and all functions and individuals are valued.
The company promotes a transparent and open way of working and is committed to developing and improving the effectiveness of the communication and consultation process.
Communication and consultations may take various forms that include, but are not limited to:
• Face to face meetings that may be formal or informal
• Telephone calls
• Letter
• Notice
• Memo
• E-list
• Announcements on intranet
• Article in company magazine
• Team briefing and cascades
• Group meetings
• Meeting with Union representatives and/or consultative bodies
• Focus groups
• Questionnaire
• Team consultations
The appropriate method of communication and/or consultation will be decided by the Company dependant upon the nature of the topic involved.
4.5 Linkage between compensation for members of the highest governance body, senior managers and executives (including departure arrangements) and the organisation’s performance (including social and environmental performance)
Remuneration of the executive members of the Board includes performance related aspects rewarding contribution to sustained increases in Company performance and value.
More information can be found in the 2010 Annual report in the Director’s remuneration report.
4.8 Internally developed mission and values statements, codes of conduct, and principles relevant to economic, environmental and social performance and the status of their implementation
In 2005 the Croda Vision was set out as a statement of six values inherent to the Croda business. Since its conception the Vision has remained unchanged, but has become the underlying statement against which all social, economical and ecological policies and procedures are carried out. Every new employee is given a copy of the Croda Vision and Group policies are available on Croda's company intranet, Connect.
Social Performance Two key social policies outlined in the Group CSR policy document state that; “We will be a good neighbour. Not just keeping our own house in order but also reaching out to support, aid and relate to those in our neighbourhood. In particular we will focus on providing educational and academic support and engaging in projects that will benefit our local communities”. Secondly; “We will seek out opportunities for dialogue with all our stakeholders.”
Croda firmly believe that social performance depends not only on the actions of the Group as a whole, but is also reflected by the actions of individual employees. As such a ‘Code of Conduct’ has been developed that sets the high standards to which all individual employees are expected to conduct themselves with respect to colleagues, stakeholders and company.
Economic Performance Enshrined within the Croda Vision is Croda’s key economic mission; “To remain an independent Company and operate as one global team”. As an established multi-national company economic performance policies and indicators have been developed in areas such as finance, risk management, acquisitions and disposals with significant issues in these areas being communicated to all employees. Furthermore, the authority to act in any area of economic importance in the Group is detailed in a freely available document, which explains at what level of the business specific decisions should be made.
Environmental Performance Croda has many policies that govern environmental performance and these are best summed up in the Groups CSR policy, which states that; “We will minimise any negative impact on the environment that might be associated with our operations or our products, searching out new ways to conserve natural resources and innovating to improve our products and processes”.
Croda's performance is monitored and externally audited against the ISO14001 environmental management standard and in 2010 all of Croda's global manufacturing sites were certified to this standard. Croda has also implemented the ‘12 principles of green chemistry’ in R&D centres around the Group. These principles guide the development of new products in such a way that reduces waste, improves efficiency and ensures that new product ranges will continue Croda’s ‘green’ ethos in the future.
Commitments to External Initiatives
4.12 Externally developed economic, environmental and social charters, principles or other initiatives to which the organisation subscribes or endorses
Croda International actively participates in a number of organisations and bodies.
Many relate to the speciality chemical sector and the responsible management of Croda's products and to social responsibility and sustainability.
Charters
Responsible Care®
Croda are signatories to Responsible Care®, which is the chemical industry’s global voluntary initiative that companies, through their national associations, work together to continuously improve their health, safety and environmental performance and to communicate with stakeholders about their products and processes. The Responsible Care® ethic helps industries to operate safely, profitably and with due care for future generations. It was commended by UNEP as making a significant contribution to sustainable development at the World Summit on Sustainable Development in 2002.
Round Table on Sustainable Palm Oil (RSPO)
The mission of RSPO is to advance the production, procurement and use of sustainable oil palm products through: the development, implementation and verification of credible global standards and the engagement of stakeholders along the supply chain. Croda are members of the RSPO, which collectively brings oil palm growers, oil processors, food companies, retailers, NGOs and investors to work together towards a global supply of palm oil that is produced in a socially and environmentally responsible way. The Roundtable promotes palm oil production practices that help reduce deforestation, preserve biodiversity, and respect the livelihoods of rural communities in oil-producing countries. It ensures that no new primary forest or other high conservation value areas are sacrificed for palm oil plantations, that plantations apply accepted best practices and that the basic rights and living conditions of millions of plantation workers, smallholders and indigenous people are fully respected.
4.13 Memberships of associations
The Company is a signatory to the Responsible Care® Initiative of the chemical industry trade associations in the UK and USA, and more recently has endorsed the Global Charter agreed amongst the members of the International Council of Chemical Associations. Croda has also demonstrated its commitment to Sustainable Development by endorsing the principles developed in cooperation with stakeholders and member companies of the Chemical Industries Association.
Croda is also members of:
• The Chemical Industry Association (CIA) in the UK
• The European Chemical Industries Federation (CEFIC)
• European Oleochemical Industry Association (APAG)
• European Surfactants Industry Association (CESIO)
• The European Federation for Cosmetic Ingredients (EFfCi)
• American Chemistry Council in the USA (ACC)
• The American Cleaning Institute (ACI)
• The British Association for Chemical Specialties in the UK (BACS)
• The Chemical Industry Association in The Netherlands (VNCI)
• The Chemical Industry Association in Germany (VCI)
• The Chemical Industry Association in Italy (Federchimica)
• Cosmetics, Toiletries and Perfumery Association in the UK (CTPA)
• Business in the Community (BITC) in the UK
• Round Table for Sustainable Palm Oil (RSPO)
• The International Pharmaceuticals Excipients Council (IPEC)
• The Council for Responsible Nutrition in the UK (CRN)
• The Global Organisation for EPA and DHA Omega 3 (GOED)
• The Chemical Producers and Distributors Association in the USA (CPDA)
• Brazilian Chemical Industry Association (ABIQUIM)
• Argentinean Association of Cosmetics Chemists (AAQC)
• Chilean Society of Cosmetic Chemists (SChQC)
• Peruvian Association of Cosmetics Chemists (APQC)
• Society of Cosmetic Chemists in Mexico (SQC)
• Colombian Association of Cosmetic and Tec (ACCyTec)
• Singaporean Chemical Trade Associations
• Consumer Specialty Products Association (CSPA)
• Worldwide Cleaning Industry Association (ISSA)
• Responsible Care Initiative there (Singapore)
• Independent Lubricant Manufactures Association
• Society of Tribologists and Lubrication Engineers
• Society of Plastics Engineers
• Society of Cosmetic Chemists
• Personal Care Products Council
• Cosmetic Executive Women
• American Chemistry Council
• American Chemical Society
• New Jersey Chemistry Council
• National Safety Council
• Ethylene Oxide Panel
• Pennsylvania Chemical Industry Council (PCIC)
• Delaware Safety Council (DSC)
• Center for Chemical Process Safety (CCPS)
• International Pharmaceutical Excipient Council (IPEC) of Americas
• Chemistry Council of New Jersey (CCNJ)
• UK Lubricants Association
• Canadian Association Of Chemical Distributors (CACD)
• Canadian Cosmetic, Toiletry & Fragrance Association (CCTFA)
• Canadian Sanitation Supply Association
• Toronto North CAER Group
• International Society for Agrochemical Adjuvants (ISAA)
• American Society for Testing and Methods (ASTM)
• North Central Weed Science Society (NCWSS)
• The Korea International Trade Association (KITA)
• Korea Pharmaceutical Traders Association (KPTA)
• Korea Chemical Management Association (KCMA)
• Korea Cosmetic Association (KCA)
• European Union Chamber of Commerce on Korea (EUCCK)
• The Sung Nam Chamber of Commerce & Industry (SNCCI)
• The Confederation of Indian Industry (CII)
• Thane Belapur Industries Association – India (TBIA)
• Federation of Indian Chambers of Commerce and Industry (FICCI)
• Bombay Chambers of Commerce
• Indian Specialty Chemicals Manufacturers Association
• Indian Chemical Council
• Peruvian Association of Textiles Technician
• Society of Petroleum Engineers (SPE)
• French national association of surfactants manufacturers (ASPA-INGRECOS)
• Spanish Surfactants Association (AEPSAT)
• British Adhesives & Sealants Association (BASA)
• German Paint Association (VILF)
• Dutch Paint Association (NVVT)
• French coating association (AFTPVA)
Stakeholder engagement
List of stakeholder groups engaged by the organisation 4.14
Croda encourage and facilitate engagement with a wide selection of stakeholders including employees, the communities they operate in, suppliers and customers, public bodies, capital market, the scientific community and responsible Non-Government Organisations (NGOs).
During 2010, 14 of Croda's 17 manufacturing sites around the world met the target of holding at least one face-to-face dialogue with stakeholders in their local community. During this year a stakeholder survey was also undertaken with the intention of identifying the community groups that are engaged with most around the Group.
To do this thoroughly, the target was extended beyond just manufacturing sites to include commercial centres with more than 30 employees. 100% of the targeted sites and offices completed the survey and it was also encouraging to see voluntary participation from many of the company’s smaller commercial centres around the world. This level of participation meant that Croda successfully surveyed the communities of over 78% of its global workforce.
In recognising that employees work and live in communities that are very different from one another it is an important element of the company’s volunteering scheme, ‘1% Club’, that although each employees has the same provision for spending time in the community, it can be tailored to meet local cultural, legal and business needs. During 2010, the implementation of the ‘1% Club’ at all of Croda's global manufacturing sites was completed, enabling every employee around the world to spend time actively involved in their communities.
For more information please read pages 15-18 of the 2010 CSR report
4.15 Basis for identification and selection of stakeholders with whom to engage
Croda’s CSR Steering Committee has identified the company’s stakeholders and this has been integrated into the Groups approach to CSR and Sustainability. Croda’s stakeholders are individuals or groups who can have an impact on the company’s ability to function. They can also be individuals or groups who are impacted by Croda’s activities, such as consumers.
Economic Performance
EC1 Direct economic value generated and distributed including revenues, operating costs, employee compensation, donations and other community investments, retained earnings and payments to capital providers and governments
2010 CSR Report – Page 3
EC3 Coverage of the organisation’s defined benefit plans
EC3 - Partial reporting:
Defined benefits plan coverage - Based on sample of 66.6% of employment population
Total number of employees in sample 2,806
Number of employees covered by DB Schemes (expressed as a percentage) 1,764 (63%)
Countries in sample: UK, India, Brazil, Netherlands, Singapore, Malaysia, US/Canada, France, Spain, Italy
Environmental Performance
EN1 Materials used by weight or volume
As one of the world’s leading suppliers of speciality chemicals Croda aim to deliver products based on renewable raw materials. Their definition of ‘natural’ and ‘renewable’ relates to both source and the capacity for replacement and renewal, which means only plant and animal sources qualify. In 2010, 68% of the raw materials Croda used were from renewable sources.
In 2010, Croda developed systems that enable us to map their use of renewable raw materials in new product launches and will continue to monitor the results in 2011 to obtain baseline measurements for the setting of future targets.
In 2010, Croda continued to work with the RSPO and industry peers to develop a set of guidelines for users of palm oil derivatives. They also mapped the palm oil derivative content of 100% of their relevant finished products. During 2011 Croda will continue mapping their use of palm oil and palm kernel oil derivatives and work with Our Partners in the palm oil supply chain and the RSPO.
EN3 Direct energy consumption by primary source
Croda’s performance on this indicator is linked to their objective to improve the energy efficiency of their processes. Reviewing their direct energy usage, as defined by source, shows natural gas to be predominant although their direct investment in renewable energy projects has begun to make a contribution. 2009 experienced the full effects of the wind turbine and bio-fuel projects that were completed in late 2008. There are several energy saving projects that have been identified for 2010, to read more about these see page 15 of Croda’s 2010 CSR Report.
Total direct energy consumption by the Group reduced by 0.3% compared to 2008 and has reduced by 18.0% since 2006.
Croda’s progress with energy reduction projects is demonstrated by their continued compliance with energy reduction targets of the UK Climate Change Agreement and the EU Emissions Trading Scheme.
EN4 Indirect energy consumption by primary source
In 2010, the company estimates that indirect energy to produce products totalled 1,323,757 GJ (gigajoules).
Note - These figures are calculated from data published by the IEA (International Energy Agency) for 2008 (most recent data available) and not from individual supplier data.
EN8 Total withdrawal of water by source
Croda’s use of water as defined by source shows 21.5% from surface water, 64.0% from ground water, 13.4% from mains water and 1.0% from municipal process water.
Croda’s objective between 2006 and 2010 was for all manufacturing sites to reduce the use of potable water (m3 per tonne manufactured) by 2.5% each year (10% in total). Despite reducing their total consumption of potable water by 12.6% based on 2006 levels, they did not achieve this four year target.
Since 2006 Croda’s overall water consumption has reduced by 2.9%.
Croda have set themselves a new target for 2015:
• Based on 2010, to reduce total Group water consumption by 10% by 2015.
EN16 Total direct and indirect greenhouse gas emissions by weight
Croda’s overall objective is to work progressively towards a reduction in carbon emissions. They have taken the decision to be an active contributor to the Carbon Disclosure Project reporting on green house gas emissions and energy. They also support their customers by participating in the supply chain leadership cooperation.
In 2010 the total direct and indirect GHG emissions were 216,882 tonnes CO2. The breakdown between direct and indirect GHG emissions was 72.9% and 27.1% respectively. No significant emissions of other greenhouses gases have been identified from manufacturing operations.
Croda has set two related targets for 2015:
• Based on 2010, to reduce Group energy consumption by 5% by 2015.
• To have 25% of the Group’s energy requirements generated from non-fossil fuel sources by 2015.
EN20 NOx, SOx and other significant air emissions by type and weight
Since 2006, Croda has focussed on reducing the Volatile Organic Compound (VOC) losses from processes where they use solvents for product separation and purification. The Group set an objective to reduce the VOCs emitted to air (kg/manufactured tonne) by 20% relative to 2006. Croda succeeded in achieving this aim with an overall reduction of 25.5%.
This improvement was due to major investments during this period to control the releases of VOCs on some of Croda’s manufacturing sites.
Croda have set a new target for 2015:
• Based on 2010, to reduce total Group VOC emissions by 10% by 2015.
The global figures for NOx and SOx emissions in 2010 were 607 and 1,303 tonnes respectively.
CIA Responsible Care Indicators of Performance conversion factors are used for combustion fuels.
EN21 Total water discharge by quality and destination
The Group set an objective to reduce the environmental impact on controlled waters with a target that all manufacturing sites achieve greater than 97.5% compliance with their effluent discharge consents by 2010.
In 2010, the compliance with Croda’s effluent discharge consents was 99.0% compared to the baseline compliance of 91.6% in 2006. Also nine out of their 17 manufacturing sites maintained 100% compliance with effluent discharge consents in 2010.
Following the completion of Croda’s previous objective in this area, they have set a new target:
• To achieve 100% compliance with effluent discharge consents by 2015.
EN22 Materials used by weight or volume
The total breakdown of weight of hazardous and non hazardous waste was 6,273 tonnes and 36,134 tonnes respectively. The proportion of hazardous to non-hazardous waste was 14.8% and 85.2% respectively.
The disposal of hazardous waste was by landfill (2.3%), incineration (44.6%), recycling (38.2%) and other methods (14.9%).
For non hazardous waste, disposal methods were landfill (13.2%), incineration (18.4%), recycling (37.5%) and other methods (31.0%).
Croda set a target in 2006 to reduce waste to landfill (kg/tonne manufactured) by 5% per year every year to 2010 (20% overall). They surpassed this target with a reduction of 22.7% per tonne manufactured in 2010, and five of their manufacturing sites sent no waste to landfill in 2010.
Croda’s objective relating to waste for 2015 based on 2010 levels is:
• Based on 2010, to reduce total Group waste to landfill by 20% by 2015.
To achieve this aim all of Croda’s manufacturing sites now have active programmes to reduce their waste output. They will also begin to measure absolute waste to give a more comprehensive view of their performance.
EN23 Total number and volume of significant spills
There were no significant and reportable spills in 2010.
EN26 Initiatives to mitigate environmental impacts of products and services and extent of impact mitigation
Croda’s suppliers help to ensure that they source renewable raw materials in a responsible way. Their customers work with us to develop products that consumers want. Official bodies provide guidance on the regulations that allow their business to operate. NGOs help us to understand and continually improve the environmental performance and inherent safety of their products.
In 2010, Croda set two objectives that encapsulated the key issues addressed in working with Our Partners. These were Responsible Sourcing and Climate Change.
Responsible sourcing is driven by consumer demand and the creation of products based on renewable raw materials. Croda deliver ingredients to a wide range of product manufacturers within two key market sectors: Consumer Care and Industrial Specialities. These sectors have very different end users, but both require innovative and efficacious products based on renewable raw materials.
For example for Consumer Care, in 2010 Croda launched a range of non-petrochemical derived solubilisers and emulsifiers called NatraGems™.
For Industrial Specialities Croda’s range of Eco-Label certified Crodamol™ and Priolube™ lubricant bases enable their customers to develop formulations that are biodegradable, based on renewable raw materials and suitable for use in environmentally sensitive areas.
The responsible sourcing of palm oil has remained a focus of Croda’s targets in 2010. Their aim is to provide their customers with the information they need to support the growth of sustainable palm oil through the Roundtable on Sustainable Palm Oil (RSPO) ‘Book and Claim’ method. In 2010, Croda joined a technical working group along with industrial peers to develop a set of guidelines for users of Palm Oil derivatives to help calculate the information required for the ‘Book and Claim’ method. Also in 2010 Croda successfully completed mapping and quantifying the use and equivalent volumes of palm derivatives needed to make out products. Despite their efforts in 2010, they were unable to verify their calculations of volume equivalents due a lack of resolution on accepted guidelines from the RSPO on how this can be measured. Also the complexities of the supply chain means that it is not yet possible to supply consistent information that would allow us to make these calculations using primary data.
As an ethical and responsible company, Croda are concerned about climate change. Hence they continue to develop tools, such as C-CaLC and an internal product assessment process in the USA that analyse product carbon footprint data in the supply chain and during manufacture.
To highlight Croda’s commitment to the environment they have set an objective to encourage the use of natural and renewable raw materials:
• To source and use renewable raw materials in line with responsible supply chain management
An example of this from Croda's 2010 CSR report is their commitment to using sustainable marine resources.
Case study
Sustainable Resources
Croda recognise the importance of sustainable marine resources, hence in 2010 they applied for accreditation of their Incromega™ and Ωmelife™ to the International Fishmeal and Fish Oil Organisation’s Global Standard for Responsible Supply (IFFO-RS).
This audit standard is the first to cover the full marine supply chain and reflects Croda’s commitment to providing their customers with responsibly sourced products. They expect to receive accreditation in 2011.
An example of Croda’s investment in efficiency projects is their ‘Combined Heat and Power Plant at Gouda’ case study from Croda’s 2010 CSR report.
Case study
Combined Heat and Power Plant at Gouda
In 2010, Croda's Gouda site took control of the poorly optimised and unreliable ‘Unicorn’ combined heat and power (CHP) plant. Following an energy efficiency study, the first stage of the €2 million two stage capital project was completed by June 2010 which increased the turbine's production uptime.
The second stage, due to be completed in 2011, will further improve reliability saving approximately 96 tonnes of steam generation per day, which is equivalent to a saving of 5,400 tonnes CO2 per annum.
For more information about the boiler house and savings made from the project please see Croda's 2010 CSR report.
There are other examples of innovative developments featuring mitigation of environmental impact for products and services in Croda's 2010 CSR report and on www.croda.com/CSR.
EN28 Monetary value of significant fines and total number of non-monetary sanctions for non-compliance with environmental laws and regulations
In 2010 there were no prosecutions against the Group and no non-monetary sanctions to report.
Labour Practices & Decent Work Performance
LA1 Total workforce by employment type, employment contract and region
Croda recognise that business success depends on retaining the skilled and motivated employees who are part of their global team. 62% of their workforce is based at manufacturing sites, sales offices and administration centres in Europe. The remaining 38% are split between the Americas and the rest of the world.
Retaining a committed workforce is a key element of Croda’s people management strategy and offering permanent employment is a vital component of this. Only 1.9% of their global workforce is employed on temporary contracts and many within this group are undergraduate interns or apprentices to whom permanent employment is normally offered upon successful completion of a training period.
GRI Indicator - LA1:
Total workforce by region
Europe 1,964
The Americas 605
Rest of the World 605
Total 3174
LA2 Total number and rate of employee turnover by age group, gender and region
Partial Reporting
Croda's global voluntary turnover figure of 5% is comparable to the industry standard. In the UK, exit interviews are conducted so that detailed reasons for leaving can be ascertained, trends spotted and strategies put in place to ensure turnover does not increase.
GRI Indicator - LA2:
Employee turnover
Global average 5%
Calculations based on voluntary turnover as defined by GRI indicator LA2
Calculations based on resignations only - global average - 3%
LA7 Rates of injury, occupational diseases, lost days and absenteeism and number of work related fatalities by region
Partial Reporting
In 2010 there was a slight increase in the reportable accident rate to 0.32 per 100,000 man hours. It is worth noting that very few of the accidents sustained in 2010 were of a serious nature or related to chemical handling.
The accident rate does not include minor injuries and refers to recordable injuries which are defined under RIDDOR.
There were no work related fatalities during the reporting period.
LA10 Average hours of training per year per employee by employee category
Partial Reporting
Throughout the year Croda have invested in many forms of learning and development. These range from structured classroom based training and webinars, to one on one coaching, further education courses, distance learning and leadership development groups. During 2010 their employees received, on average, 30 hours of training each. They achieved their target of providing 20 hours of training per employee and hence they have extended their target to an average of 22 hours per employee in 2012.
Examples of internally run training attended to fill skills gaps highlighted by employee appraisals are 'Financial Awareness', 'Project Management' and 'Presentation Skills'.
Employee development will continue to be core to Croda's people management strategy. By 2015 Croda aim to increase the availability of development opportunities by implementing and online learning zone on their intranet.
GRI Indicator - LA10:
Average hours of training per employee
Total hours of training for all employees 93,884
Employees receiving training 2477
Average hours of training per employee for 2010 = 30hrs Average hours of training for those who received training = 31hrs
Societal Performance
SO1 Nature, scope and effectiveness of any programmes and practices that assess and manage the impact of operations on communities, including entering, operating and exiting
Croda’s commitment to the communities in which they operate has been a focus for a number of years. The ‘Croda in the Community’ policy statement describes their intent of being a good neighbour, not only by managing their own affairs in a proper manner, but by also reaching out to support and relate to the local community. Specifically, they have committed to four elements of engagement with their neighbours:
• Protecting the community
• Employment for the community
• Standards within the community
• Engaging with the community
This defines Croda’s attitude towards the community, allowing us to proactively pursue and positively respond to projects and opportunities that support it. For example, activities such as their employee volunteering programme, ‘The 1% Club’, their association with relevant local charities and good causes and their development and educational programmes. In summary, ‘Our Responsibility’ is to act responsibly and with integrity towards their neighbours and they are committed to having a positive impact on the local community, wherever they operate in the world.
SO6 Total value of financial and in-kind contributions to political parties, politicians, and related institutions by country
No donations were made for political purposes in 2010.
Product Responsibility Performance
PR3 Type of product and service information required by procedures and percentage of significant products and services subject to such information requirements
Croda’s commitment to product performance, quality and safety is represented by product stewardship being a key element of their approach to business. Croda look beyond regulatory compliance and their policies encompass the protection of their customers and the public by the assessment and management of the potential risks posed by their products throughout their lifecycle. This covers research and development, raw material sourcing, manufacture, storage, distribution and ultimate application including safe handling and use.
Equally, quality is fundamental to everything Croda do through independently accredited quality management systems for all manufacturing locations and the integration of quality management into their enterprise management systems, ensuring the delivery of high quality products to their customers.
PR9 Monetary value of significant fines for non-compliance with laws and regulations concerning the provision and use of products and services
Enforcement action
In 2010, there were no prosecutions against the group.
