Carbon neutrality – Castrol Carbon Neutral products
Statement to customers
Since launching the first Carbon Neutral engine oil in 2014, Castrol has maintained a portion of its product portfolio as Carbon Neutral in accordance with the BSI PAS 2060 standard (‘Carbon Neutral’). Over the past eleven years, the scope and geographic coverage of the Carbon Neutral portfolio has adapted to shifts in customer demand, peaking in 2023 when ~33% of Castrol's offerings were Carbon Neutral. Over the programme's duration, Castrol has procured and retired over eight million carbon credits to offset greenhouse gas emissions linked to lubricant life cycle. Castrol’s Carbon Neutral programme, including the cost of “offsets” helped accelerate the development and execution of carbon reduction strategies.
In response to the evolving environment, particularly concerning the use of carbon credits to support Carbon Neutrality claims for consumers and customers, Castrol began to reduce its Carbon Neutral portfolio, in 2024. Resources previously allocated to this portfolio have been redirected towards programs and practices aimed at decreasing the carbon intensity of its products within its value chain and operations.
Castrol will discontinue its Carbon Neutral programme on 30 November 2025, as BSI retire their Carbon Neutral standard PAS 20601. While continuing to consider credit-backed initiatives for interested customers, Castrol will focus primarily on reducing carbon emissions within the lubricant value chain and improving circularity. Castrol has applied learnings from its Carbon Neutral programme to the rest of its products and now calculates the carbon footprint of each of its products annually and uses this insight to identify potential to reduce carbon emissions.
2024 Carbon Neutral portfolio
Castrol’s Carbon Neutral portfolio for 2024 was reduced and focused on B2B products.
The brands of BIOBAR, BIOSTAT and BIOTAC sold in the Marine sector and the brands BRAYCO and TRANSAQUA sold in the Energy sector remained Carbon Neutral globally.
The Carbon Neutral offer for industrial brands of OPTIGEAR, ALUSOL XBB, HYSOL XBB and TECHNICLEAN XBC was reduced in scope. From 2024, these products are only Carbon Neutral when sold in the US, Europe and Japan.
For Automotive products, EDGE, POWER1, VECTON and Castrol ON are no longer Carbon Neutral globally. Only PROFESSIONAL products in the Americas and Japan, VECTON and TRANSYND products in the US, products sold to Toyota in AsPac, and OEM-specific products in China are Carbon Neutral2.
Because accordance with the PAS 2060 Carbon Neutral standard is assessed retrospectively, the 2024 portfolio is undergoing assurance. This will be finalized and published on this webpage by November 2025.
2025 Carbon Neutral portfolio
Castrol’s 2025 Carbon Neutral portfolio was reduced further to remove OEM-specific products in China, PROFESSIONAL products in the Americas, and TRANSYND, ALUSOL XBB, HYSOL XBB and TECHNICLEAN XBC products in the US.
The brands of BIOBAR, BIOSTAT and BIOTAC sold in the Marine sector and the brands BRAYCO and TRANSAQUA sold in the Energy sector continue to be certified as Carbon Neutral globally.
The Industrial brands of OPTIGEAR, ALUSOL XBB, HYSOL XBB and TECHNICLEAN XBC remain Carbon Neutral when sold in Europe and Japan.
The Automotive brands of PROFESSIONAL remain Carbon Neutral when sold in Japan, as do products sold to Toyota in AsPac.
With the withdrawal of the PAS 2060 standard, these products will only be Carbon Neutral in 2025 for the period of January to June.
Because Carbon Neutrality is assessed retrospectively, the 2025 portfolio is undergoing assurance. This will be finalized and published on this webpage by November 2025.
2023 Carbon Neutral achievement (Latest published declaration)
“Carbon neutrality of the products in scope achieved by Castrol in accordance with PAS 2060 at 31st December 2023, DNV certified”– Castrol’s Carbon neutrality declaration as documented in its PAS 2060 Qualifying Explanatory Statement - Castrol Carbon Neutral Products.
This 2023 QES does not declare a 2024 commitment because in accordance with the PAS 2060 standard, a new Carbon Neutral sequence must be initiated when the subject is significantly changed. As a result, a separate QES (see above – 2024 Carbon Neutral portfolio) will be published to declare a Carbon Neutral achievement for this new smaller subject. And as carbon neutrality is a backward-looking process, this 2024 Carbon Neutral achievement will be demonstrated in 2025.
Castrol has achieved carbon neutrality via a combination of carbon offsets (credits) and GHG emissions reductions. For the year 2021, Castrol relied on 100% offsets to meet the requirements of Carbon Neutral achievement and to compensate for the carbon emissions in its baseline period – this is in accordance with the provisions of PAS 2060. Carbon emission reduction activities were nonetheless in action and the impact of these actions are now visible in the 2022 and 2023 reassessments of the carbon footprint of Carbon Neutral products. Some examples of these activities are included in Section 5.3 of the Qualifying Explanatory Statement that also resides under the Documentation and verification section below. Table 6.1 of the Qualifying Explanatory Statement lists the projects from which carbon credits were retired for achievement of product carbon neutrality in 2023.
Carbon Neutral – guiding principles
Applicable to all Castrol Carbon Neutral products
- PAS 2060 is an internationally applicable specification developed by the British Standards Institution (BSI) for the demonstration of carbon neutrality. Carbon Neutral is defined within PAS 2060:2014 as a condition in which during a specified period there has been no net increase in the global emission of greenhouse gases to the atmosphere as a result of the greenhouse gas emissions associated with the subject during the same period. PAS 2060 follows a 4-step process establishing guidelines for measuring, reducing, and offsetting greenhouse gas (GHG) emissions for businesses, products, and events as well as reporting of these actions.
- In 2014, Castrol became the first company in the world to offer a Carbon Neutral lubricant, verified and assured by an independent third party to be Carbon Neutral in accordance with PAS 2060. In 2021, Castrol increased its Carbon Neutral offer further to cover ~30% of volume sold which included a brand in every space served (e.g., automotive, industrial, marine, energy, and e-fluids) as well as all products sold by Castrol in Australia, New Zealand, and Vietnam. For 2024, the Carbon Neutral offer is limited to the products stated above in the section titled ‘2024 Carbon Neutral portfolio’. And similarly, for 2025, the Carbon Neutral offer is limited to the products stated above in the section titled ‘2025 Carbon Neutral portfolio’.
- The World Resources Institute (WRI) and the World Business Council for Sustainable Development (WBCSD) have developed the GHG protocol’s product life cycle accounting and reporting standard. In accordance with this protocol, Castrol assesses the cradle to grave lifecycle greenhouse gas (GHG) emissions of all products in the Carbon Neutral portfolio and then verifies their carbon neutrality using BSI’s PAS 2060.
- This product lifecycle assessment includes measuring all product-related Scope 1, 2 and 3 GHG emissions (raw materials, manufacturing, packaging, distribution, losses in use and end of use treatment) and excludes non-product related GHG emissions like indirect purchases, capital goods and employee commuting.
- Castrol works on reducing its GHG emissions through a target-driven carbon management plan that is set out in Section 5.2 of the PAS 2060 Qualifying Explanatory Statement (“QES”) that resides under Documentation and Verification section below. For example, at the end of 2023, Castrol has transitioned 14 owned blend plants to renewable energy using renewable electricity contracts, and 7 blend plants are solar electricity generated on-site.
- Remaining emissions are offset through the purchase and retirement of carbon credits from a portfolio of projects provided to Castrol by bp Low Carbon Trading. A carbon offset is an action or activity that compensates for (such as the planting of trees or carbon sequestration) or prevents or avoids (such as renewable energy projects) the emission of CO₂ or other greenhouse gases to the atmosphere. Put another way, carbon offsetting is a way for compensating for emissions by making an equivalent CO₂ saving elsewhere. The carbon offset program Castrol has used since 2014 has supported a range of projects.
- The low carbon trading (LCT) team is bp’s face to the global carbon markets and is active across most major carbon trading programmes globally. The credits Castrol purchases have been subject to due diligence checks on environmental and social integrity by the bp Low Carbon Trading team. All carbon credits used are from projects that meet recognised standards from international carbon offset registries and are listed in Table 6.1 of the QES.
- Castrol products contribute to saving energy and driving efficiency in use, but there are carbon emissions associated with their lifecycle. Reducing product lifecycle carbon emissions will take time and requires action all along the value chain. Carbon offsetting is a way for us to contribute to the climate challenge while we and society work to reduce emissions in other ways. The PAS 2060 process addresses both actions.
- All product variants in Castrol’s Carbon Neutral Portfolio are verified as Carbon Neutral in accordance with PAS 2060. A summary of the brands in scope is included below and a full list of products can be found in Table D.3 of the QES.
- Castrol®, a bp brand, blends and markets Castrol lubricant products made from hydrocarbons. The global scientific community has reached consensus that emission of carbon dioxide (CO₂) and other gases from the use of hydrocarbons, including the combustion of fossil fuels, is a contributor to global warming causing what is commonly referred to as climate change. Castrol acknowledges this scientific consensus but also recognizes the role that lubricants play in supporting efficient motion. When you use a Carbon Neutral lubricant in your vehicle or machine, some CO₂ will be emitted into the atmosphere through its lifecycle – for example, from production or as losses in use or end of life treatment or disposal.
Carbon Neutral products in accordance with PAS 2060
PAS 2060 specifies a four-stage process to demonstrate carbon neutrality which includes:
- Assessment of greenhouse gas (GHG) emissions based on accurate measurement data
- Reduction of emissions through a target-driven carbon management plan
- Offsetting of residual emissions, often by purchasing carbon credits
- Documentation and verification through qualifying explanatory statements and public disclosure
Castrol’s application of PAS 2060 involves two independent third parties; Environmental Resources Management Limited who carry out the carbon footprinting of Castrol products and a second, DNV Business Assurances UK Limited who do the verification and assurance of carbon neutrality.
Assessment
Castrol assesses, identifies, and measures CO₂ emissions throughout each product’s life cycle. The figure below is derived from the GHG protocol’s product life cycle accounting and reporting standard and demonstrates the key activities that make up a product’s life cycle.
To quantify the GHG life-cycle emissions of the product, primary activity data (process-specific data obtained by direct measurement of the energy or business activities) and secondary data (data obtained from sources other than direct measurement of the emissions from processes included in the life cycle of the products) is collected for each activity and used in conjunction with emissions factors (coefficients) to convert activity data into GHG emissions.
Table 3.2 of the QES provides a description of each lifecycle stage shown above and the key inclusions and exclusions used to quantify GHG emissions have been summarized below:
| Lifecycle Stage | Inclusions | Exclusions |
|---|---|---|
| Material acquisition & pre-processing | Raw material extraction and processing to produce components (e.g., base oils and additives) and packaging. | Capital goods and infrastructure (i.e., manufacture and maintenance of machinery and buildings). Personnel activities (e.g., commuting to and from work). Storage at distribution warehouse. |
| Production | Blending of components (base oils and additives) and filling into product packaging (plastic bottles, steel drums, Intermediate Bulk Containers (IBCs), etc.). | |
| Distribution and storage | Distribution of packed products from Castrol blending sites to customers (e.g., dealerships and retailers). | |
| Use | Filling of product (e.g., vehicles, equipment, and machinery). Leakage of product during use. Where applicable, combustion of product during use. |
Draining of product from product application system as this is a manual operation. Beneficial greenhouse gas emission impacts of the product in use (e.g., fuel savings from reduced friction, raw material saved due to durability/extended drain, etc.) |
| End-of-life | Transportation of used product to a waste management facility. Used product incineration with and without energy recovery, landfill, or re-refining, where only incineration without energy recovery and landfill have GHG emissions impacts within the Castrol boundary. Treatment of waste packaging to recycling, incineration with energy recovery, incineration without energy recovery or landfill. |
In line with the recycled content method (Chapter 9 of the GHG Product Protocol), the following processes are not included in the boundary of this life cycle stage: Processes that transform waste to a useful material in another process (e.g., re-refining of used oil and recycling of plastic). |
Reduction
Castrol’s carbon management plan is a global program encompassing activities across Scope 1, 2 and 3 emissions in support of its aim to halve the net carbon intensity of its products sold by 2030 or sooner, vs the 2019 baseline (measured in 2020). Castrol’s carbon reduction activities are not limited to its Carbon Neutral portfolio, but the impact of its carbon reduction activities is assessed in relation to both the Carbon Neutral portfolio and the overall carbon footprint (Scope 1,2 and 3 emissions). Castrol’s carbon reduction plan includes activities across each lifecycle stage, but its key focus areas (beyond its Scope 1 and 2 emissions) are its raw material purchases and what happens to products at the end of their use, working to transform the lifecycle of lubricants from linear to more circular.
Offsetting
Castrol purchases and retires (destroys) carbon credits, from carbon reduction projects, to offset residual product carbon emissions.
Castrol has purchased its offset credits from a portfolio of projects provided by bp Low Carbon Trading. All carbon credits used have been subject to due diligence checks on environmental and social integrity by the bp Low Carbon Trading team and are from projects that meet recognized industry standards from international offset registries, including the UN CDM and the Verified Carbon Standard. After purchase, sufficient carbon credits are retired (destroyed) to balance the emissions associated with the Carbon Neutral claim. See bp Low Carbon Trading for more details.
Table 6.1, extracted from PAS 2060 Qualifying Explanatory Statement - Castrol Carbon Neutral Products, contains the list of carbon credits retired in relation to the achievement period and more information about the projects they are from. Since the inception of its Carbon Neutral program in 2014, Castrol has offset (through the purchase and retirement of carbon credits) more than 6.2 million tons of GHG emissions.
Documentation and verification
The Qualifying Explanatory Statement (QES) is a requirement of PAS 2060 and demonstrates that (and how) Castrol has achieved carbon neutrality for its Carbon Neutral Products.
PAS 2060 Qualifying Explanatory Statements
The QES is being provided in English only, because this version was assured by DNV. Translated versions are not assured.
Carbon neutrality - Castrol’s operational activities
Castrol’s PATH360 Programme also includes making its scope 1 and 2 GHG emissionsi from its operations Carbon Neutral in accordance with PAS 2060.
Consistent with its approach for Carbon Neutral products, Castrol’s application of PAS 2060 for Scope 1 and 2 GHG emissions involves two external independent third parties; Environmental Resources Management Limited who carry out the carbon footprinting of Castrol’s operational activities and a second, DNV Business Assurances UK Limited, who do the verification and assurance of carbon neutrality.
Assessment
Castrol uses the GHG Protocol’s Corporate Standard to assess its Scope 1 and 2 GHG emissions.
- Scope 1 emissions are the direct emissions from sources owned or controlled by Castrol. Scope 1 includes on-site fossil fuel combustion and fleet fuel consumption.
- Scope 2 emissions are the indirect emissions that result from the generation of electricity, heat or steam purchased by Castrol from a utility provider.
Reduction
Castrol is targeting a 50% reduction in its Scope 1 and 2 GHG emissions by 2025 vs. its 2019 baseline and has delivered a 43% reduction through 2024. Castrol is committed to continuing its carbon reduction efforts as demonstrated in its carbon management planii. The 3 main pillars of Castrol’s Scope 1 and 2 carbon management plan include operational efficiency, transitioning to renewable energy, and replacing carbon-intensive energy sources with cleaner, lower carbon alternatives.
Offsetting
See above offsetting section for details of how Castrol purchases and retires carbon credits to achieve carbon neutrality.
Table 6.1 - Scope 1 and 2, extracted from PAS 2060 Qualifying Explanatory Statement - Castrol Carbon Neutral Scope 1 and 2, contains the list of offset credits retired in relation to the period in scope and more information about the projects they are from.
Documentation and verification
“Carbon neutrality of Scope 1 and Scope 2 GHG emissions achieved by Castrol in accordance with PAS 2060:2014 at 31st December 2023 with the commitment to maintain to 31st December 2024, for the period commencing 1st January 2024, DNV certified”
Like Castrol’s Carbon Neutral Products, Castrol’s Scope 1 and 2 GHG emissions are undergoing Carbon Neutral assurance for full year 2024 and 1H 2025 (January – June). The QES’s will be published to this webpage after assurance completes and prior to the end of November 2025.
The QES is being provided in English only, because this version was assured by DNV. Translated versions are not assured.