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Growing Green Headlines� ‘Global warming puts the Arctic on thin ice’

� ‘CO2 emissions rising’

� ‘Further destruction of rainforests’

� ‘Scientists drug-test whole cities’

� ‘Why are chemicals in our babies’

� ‘Parents worry about toys’

� ‘No more PVC for Sears and Kmart’

� As consumers become more aware of green issues,

consumer goods companies must deliver products that

are better for the environment and chemical companies

must deliver ingredients that allow you to formulate such

products

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What Does ‘Green’ Mean?

Organiccontent

Reduced or Recyclable Packaging

Carbon reduced/ neutral

Biodegradable formula

Locally produced/ sourced

Ethical claims/

Fair-trade

‘Free from’claims

Naturalcontent

Green

personal

care claims

1 in 7 personal care

products launched

globally in 2008, claimed

at least one of these!

Source: Mintel GNPD

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Why Do Consumers Buy Green?

Source: NMI's 2007 LOHAS

Consumer Trends Database

USA market research company splits the consumers into 5

categories:

� LOHAS - Lifestyle of health and sustainability) - driven by

health and environmental concerns

� Naturalites - personal health concerns

� Drifters - follow the latest trend

� Conventionals - driven by practicality

Five Classes of Consumers

% of general population adults by segment

Unconcerned

17%

LOHAS

19%Drifters

26%

Conventionals

19%

Naturalites

19%


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More Than Green

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Natural and Organic StandardsEurope North

AmericaAsia

PacificLatin

America

Organic certified products

Organic agriculture origin

Limited chemical processes

Natural cosmetics standard

Some requirement for

organic ingredients

Environmentally friendly

(e.g. biodegradable using a calculation model)

Eco label

Data source: Organic Monitor

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Croda's Position

� We have used the COSMOS standards as a guide when we talk about ‘certifiability’ of ingredients or formulations

� As a global company we will help our customers with any certification inquires

� We welcome the COSMOS standards but realize we are still a long way off from ‘true harmonization’

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Where Does Croda Fit?

� A copy of our 2008 Corporate and Social Responsibility Report is available on our website and we have practiced many Green principles for years:

� Biodiversity of our Raw Materials

� IMAFLORA (Institute of forest Management and

Certification), SAN (Sustainable Agriculture

Network), Forest Stewardship Council, CITES (the

Convention on International Trade in endangered

species of wild fauna and flora)

� Reducing Our Carbon Footprint

� Non-Animal Testing

� Improvements in Manufacturing

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Corporate Social Responsibility

� ‘Our Responsibility’ is Croda’s approach to Corporate Social Responsibility (CSR)….so what is CSR?

� There are many definitions, but broadly they all mean the same:

Corporate Social Responsibility is ‘a concept whereby companies integrate social and environmental concerns into their business operations and in their interaction with their stakeholders, on a voluntary basis’

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Already part of the Croda culture

The Croda Vision states….“We will continue to be an ethical and responsible company”. This means….

� We will treat our employees fairly

� We will have a positive relationship with the local communities in which we operate

� Any negative impact on the environment is minimized

� Our relationship with the market place (customers, consumers, suppliers) is led with integrity

It goes beyond the legal requirements and involves voluntary action to improve the quality of life for society

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Renewable Energy at Hull manufacturing site

Croda was the first chemical company in the UK to build and operate a wind turbine. It is producing 40% of the sites electricity demand during full capacity manufacture and exporting excess to the national grid

Alternative transportation

Rape oil is now delivered to Hull by barge, displacing the need for more than 1,000 round trips by road tankers and saving on fuel consumption

Sustainable raw materials

Croda is a member of the Roundtable on Sustainable Palm Oil, whose aim is to ensure that the production and use of palm oil is done in a sustainable manner


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Green GuideGreen Formulary

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Green Chemistry...

….is not new for Croda

� A business built on these principles

� Over 70% of the raw materials used by Croda are from renewable sources

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A Range of Green Platforms..

� Renewable resources base

� Oleochemicals

� Sugars

� Proteins

� Botanicals

� Biocatalysis / fermentation

� No solvents or waste ‘by-products’

� Improved environmental profile

� Biodegradable

� Low/non-toxic

� Energy efficient

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Product guide featuring a selection of ‘greener’ ingredients

Products had to meet this criteria in order to feature in the Green Guide

� No petrochemicals*

� No phthalates

� No parabens

� No formaldehyde releasing preservatives

� No Petroleum distillates (mineral oil, petrolatum, paraffin)

� No animal testing� In at least the last 10 years for any purpose

*Except where phenoxyethanol has been used for preservation

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Product information allows the formulator to select the

criteria that they value most!

Example of layout…

Green Guide

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� Product Origin� Plant, mineral or unharmed animal

� % Natural� Active content only

� No Radiation� Products have not been subjected to gamma irradiation as a means

of sterilisation.

� No Sulfonation� Products have not undergone sulfonation.

� No Petrochemistry Applied� product does not contain components derived from the

petrochemical industry, with the exception of hydrogen from hydrogenation (where applicable).

� Not Silicone Derived� Product does not contain any silicone components.

� Preservatives & Other Additives are listed

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Green Formulary

� Four formulation sections

� Detergent Systems

� Anhydrous Systems

� Emulsions (oil-in-water and water-in-oil)

� Gel systems

� Market insight into each section

� Green Gems, hand picked selection of greener products

� Formulators notes, formulating tips and advice

Selected formulations are available to view with your local

representative, look out for this symbol:

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Prerequisite Formulation Criteria

� Levels of greenness vary for each formulation, but within the Green formulary they all comply with:

� No phthalates

� No parabens

� No formaldehyde-releasing preservatives

� No silicone

� No synthetic UV filters, colourants or fragrances

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Green Claims Glossary� Each formulation has been assessed and assigned the

appropriate Green Claims, these include:

� % Natural� Firstly calculate % natural proportion of each ingredient

� Ingredients are weighted within the formulation to give an overall % natural result

� Water is considered natural

� Certifiable natural (according to EU natural standards)*

� Organic content (indicates which formulations contain at least one organically certified ingredient)*

� Cold process

� Preservative free the formulation does not contain any preservatives listed in Annex VI of the European Cosmetics Directive

� Sulphate free

*formulation certification has not been applied for, so cannot be guaranteed

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Green Gems� Luxurious Shampoo (Green Formulary page 8)

• Cold processed

• Sulfate-Free


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The Future

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Greening The Supply Chain� Recently stated within the dishwasher and laundry

market, carbon emissions come from the following areas

� Production of ingredients and packaging 30-40%

� Finished product manufacturing 2-6%

� Consumer use (auto-dish and laundry) 50-70%

� The chemical industry needs to assist our customers

lower their environmental burden

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Environmental Metrics� Biodegradability

� Performance against one of the globally accepted

Organization of Economic and Commercial

Development (OECD) 301 and 302 test methods.

� Aquatic Toxicity

� On fish, daphnia or algae

� Raw material source

� Origin of each feedstock, animal, vegetable,

petroleum, sustainable?

� % Natural

� Proportion of active content derived from a natural

source

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Environmental Metrics� Energy use

� A quantified measure of the energy required to make

each raw material

� Water use

� Measure water use

� % waste

� Total amount of waste generated

� % recycled

� Total amount of waste recycled

� Air pollution

� VOC emissions

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Environmental Goal Setting

� Using European standards we are calculating our carbon footprint for all domestically manufactured products

� Upon completion we can set carbon reduction goals for all products


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