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PATH360 DEALER PROGRAMME

INTRODUCTION

PATH360 is our holistic programme to help Castrol reach net zero by 2050 or sooner.


We’ve created a framework to guide our focus and shape our actions to achieve our goals. One of the key parts of this is Customer Solutions and that’s where our Castrol PATH360 Dealer Programme comes in to help automotive dealerships tell their carbon management story.


The Castrol PATH360 Dealer programme has 3 elements: 1) Our Dealership offer, including Carbon Neutral Products in accordance with PAS2060*, 2)  how to become a Carbon Neutral** Dealer and 3) an offsetting*** carbon emissions from fuel offer, facilitated by the Dealer for their customers.

ADD VALUE TO YOUR BUSINESS

In a world transitioning to a lower carbon economy, your customers may be actively choosing  products and services that are lower carbon. But it’s not all just about the energy transition; it’s about potentially adding value to your business.


The Castrol PATH360 Dealer Programme for automotive dealerships helps you build your own carbon management story. Our research shows that it can add value through differentiation, reputation and customer loyalty.

WHY CASTROL PATH360 DEALER PROGRAMME?

Our research shows that businesses that take steps towards sustainability could benefit in the following ways:
ENHANCE YOUR REPUTATION

Demonstrate leadership and commitment by taking  steps to help address carbon emissions.   

 

Tell a story that resonates with your customers of how you are contributing to the energy transition. Strengthen your Brand with an Emotional & Relevant Message

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DIFFERENTIATE YOUR BUSINESS

Stand out from your competitors in a crowded market on something meaningful that a consumer values and respects.

 

Stand out with a unique marketing campaign.

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INCREASED SALES

Many customers are actively choosing products and services based on their lower carbon attributes. This programme could help you to reach out to those consumers.

 

Differentiate and enhance your brand

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BUILD LOYALTY & CUSTOMER RETENTION

By connecting with those consumers that are particularly engaged with sustainability matters which research shows make purchasing decisions based on carbon attributes.

 

Convenient & Simple

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REDUCE COSTS
It’s good business - reduced carbon emissions can mean reduced energy and fuel costs. High perceived consumer value may create greater impact.
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IMPROVE STAFF & CUSTOMER SATISFACTION

Helps you to attract, keep and motivate the best staff. Communicate your carbon neutral status or your carbon offsetting offer to help increase your brand awareness.

 

Improved likelihood of engaging customers and staff

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BECOME A CARBON NEUTRAL**  DEALER

Find out how your Dealership can take advantage of Castrol’s PATH360 Dealer programme.

Frequently Asked questions

What do we mean by Dealership?
When we say ‘dealership’, we mean an automotive dealership business or group, including all their locations such as showrooms, workshops, office space and all other premises that they operate from.
How does carbon neutrality work with the PATH360 Dealer Programme?

The programme is based on a six-step voluntary pathway that allows businesses to become carbon neutral in accordance with the bp Target Neutral Carbon Neutral Protocol.

 

The 6 steps are:

1. Estimate: the dealer calculates their dealership’s operational carbon emissions using Castrol’s simple online Carbon Management Portal.

2. Reduction plan: the dealer commits to reducing carbon emissions and keep the reduction plan under reviewthroughout the year.

3. Submission: the dealer submits their application for review by bp Target Neutral. If the application is approved, they will then purchase carbon offsetting services via Castrol’s tools, investing in verified emissions reduction and avoidance carbon offsetting projects.

4. Carbon Neutral: dealer is then a Carbon Neutral* business.

5. Communicate: dealer will then let their customers know they are a Carbon Neutral* business.

6. Renewal: dealer will renew their carbon neutral status after 12 months by demonstrating evidence of measurable action against their carbon emissions reduction plan and setting new carbon reduction goals.


Castrol provides an online Carbon Management Portal that enables the dealer to quantify their business operational carbon emissions, create and commit to a carbon emissions reduction plan and purchase carbon offsetting services for residual carbon emissions. It’s an annual process, whereby the performance against the last period’s reduction plan is reviewed, and approved by bp Target Neutral, and the residual carbon emissions are offset via the bp Target Neutral Carbon Offsetting Services*.


The dealer’s carbon neutral status will cover their reporting period and demonstrate their commitment to carbon neutrality for the twelve-month period following their reporting period end date. For example, if the reporting period runs from January 2021 – December 2021, the carbon neutral status shows that the dealer is carbon neutral for that period and is committed to carbon neutrality for January 2022 – December 2022. In the dealer’s first year’s application carbon neutrality can be achieved by quantifying their operational carbon emissions, creating a reduction plan, and then offsetting residual emissions. However, in all subsequent years, the carbon reduction plan will need to be implemented and the dealer must deliver on carbon reduction targets and offset residual emissions in order to maintain carbon neutral status.


The programme is underpinned by the bp Target neutral Carbon Neutral Protocol which has been reviewed and undergone a limited-level assurance by ClimateCheck, an organisation specialised in climate change, cleantech, sustainability, measurement, reporting and verification services and solutions. It is in line with international carbon quantification guidance such as the GHG Protocol and ISO:14064-1 and is based on the recognised international standard for carbon neutrality, British Standard PAS2060. However, it’s been specifically adapted from PAS2060 for small and medium sized businesses to make it more accessible and easier to use.

How does the vehicle offsetting carbon emissions from fuel offer work?
We provide dealerships with a carbon calculator that quantifies carbon emissions from fuel based on vehicle type, fuel and mileage. This gives dealerships the opportunity to calculate emissions and purchase carbon offsetting services for new and used vehicles which they can then sell with the emissions from the fuel for the first 10,000 kms or miles offset. They can also offset a fixed mileage between service intervals. Castrol provides a template so that the dealer can give their customers a ‘confirmation of carbon offset document’ when they apply the offer in their dealership.
How long will Castrol run the programme for?
At the present time, the Castrol PATH360 Dealer Programme has no fixed end date.
Who owns the carbon offsets?
bp purchases and retires the carbon offsets on behalf of the customer in an international carbon offset register. Ownership of the carbon offsets does not transfer to the dealer or its customer.
What do we mean by ‘Castrol Carbon Offsetting Services’?

Castrol Carbon Offsetting Services consist of Castrol arranging for the purchase and retirement of carbon offsets to compensate for relevant carbon emissions associated with the programme.


Carbon offsets are retired in an international register on behalf of the dealer. When we refer to ‘carbon offsetting services’ we are referring to Castrol Carbon Offsetting Services.


Dealers can purchase Castrol Carbon Offsetting Services through the Castrol PATH360 Dealer Programme. Please note that the ownership of carbon offsets does not transfer to the dealer.


The dealer should not market for sale or charge their customers directly or indirectly for the carbon offsets in connection with the Castrol PATH360 Dealer Programme Carbon Offset Services.


The dealer is not entitled to sell carbon offsets to consumers by virtue of participating in the Castrol PATH360Dealer Programme.

What do we mean by ‘Carbon’?
‘Carbon’ is used throughout as shorthand to refer to CO2e (carbon dioxide equivalent). CO2e means the number of metric tons of CO2 emissions with the same global warming potential as one metric ton of another greenhouse gas (GHG). The terms carbon credits and carbon offsets are used interchangeably. See www.castrol.com/360dealer for complete details.
What methodology is used to quantify carbon emissions to be compensated for PATH360 products?
The GHG Protocol Product Standard is used to quantify the GHG emissions associated with PATH360 products.This method provides an internationally recognised approach to the calculation of product carbon footprints and meets the requirements of PAS2060 for the calculations of GHG emissions.
What methodology is used to quantify carbon emissions to be offset for carbon neutrality for dealers?

bp have developed a bespoke calculation methodology for car dealerships, embedded within the online tool, that follows the principles of internationally recognized standards such as ISO14064-1 and the GHG Protocol Corporate Standard. It has been reviewed by an independent expert, ERM.


As per the recognised standards, all Scope 1 emissions (direct emissions from controlled sources) and Scope 2 emissions (indirect emissions from purchased electricity) are included in the calculations. Additionally, some types of Scope 3 emissions (indirect emissions from the businesses’ value chain) are included (e.g. business travel and staff commuting). Some Scope 3 emissions sources are not included in the boundary of this Protocol and have been excluded based on their materiality or the ability of the organisation to influence reductions. For example, the emissions from the use of vehicles sold are not included in the emissions calculations and this is clearly identified in the wording used to describe carbon neutrality. See www.castrol.com/360dealer for more information and to download the methodology statement.

What is the methodology used to calculate the carbon emissions from fuel for a dealer’s fleet or their customers?

bp have developed a bespoke calculation methodology for carbon emissions from fuel, embedded within the Castrol Carbon Offsetting Tool and Castrol Carbon Offsetting portal, that follows the principles of internationally recognised standards such as ISO14064-1 and the GHG Protocol Corporate Standard. The Carbon emissions are calculated on a ‘well to wheel’ basis, covering the lifecycle emissions of the fuel, from well (production) to end-use by the Customer. The emissions factors were sourced from UK Government BEIS conversion factors for company reporting of greenhouse gas emissions 2021. It has been reviewed by an independent expert, ERM.


Available online at: https://www.gov.uk/government/publications/greenhouse-gas-reporting-conversion-factors-2021


This methodology is aligned with the WRI/WBCSD GHG Protocol. See www.castrol.com/360dealer for complete details and to download the methodology statement.

Who is Climate Check?
ClimateCheck is an organisation specialised in climate change, cleantech, sustainability, measurement, reporting and verification services and solutions. See https://climatecheck.com/
What do we mean by ‘carbon offsetting’

Carbon offsetting is the process of compensating for emissions by funding an equivalent carbon saving elsewhere. This is done by buying carbon offsets which helps finance projects that either reduce or avoid carbon emissions, such as renewable energy development or projects that protect or enhance natural resources that absorb carbon emissions from the atmosphere – e.g. land and forests.


The projects themselves generate carbon offset credits for each tonne of carbon reduced or avoided and these are then offered into the voluntary market for purchase. Offset buyers then purchase the offset credits in the amounts needed to compensate for the emissions from their activities and then retire the offset credits. Retirement is the process of cancelling the offset credit in an international registry and thereby removing it from further use or trading.

What do we mean by ‘carbon neutral’? (the carbon neutral disclosure statement)

The operational emissions of the businesses included on Castrol PATH360 Carbon Neutral Dealer Programme are carbon neutral in accordance with the bp Target Neutral (bpTN) Carbon Neutral Protocol, which has undergone a limited-level assurance by ClimateCheck.


Businesses that are part of the programme are required to quantify their operational carbon emissions, commit to a carbon reduction plan and offset their residual missions. Emissions calculations are based on activity data provided solely by the business. The emissions from the use of vehicles sold are not included in the emissions calculations. See www.castrol.com/360dealer for complete details.

What is bp Target Neutral?

bp Target Neutral (bpTN) refers to the bp Target Neutral business which is part of the bp group.


bp Target Neutral provides carbon offsetting services to companies within the bp Group and their customers, including Castrol. More information about bpTN is available on www.bptargetneutral.com and about the Castrol PATH360 Dealer programme on www.castrol.com/360dealer 

What carbon offsetting projects are customers supporting?

Customers using the PATH360 Dealer Programme will be helping Castrol support a range of carbon offset projects. Recent projects have included a project financing the construction of efficient cookstoves in Guatemala, so families use less firewood and reduce smoke in the household, improving health.


Other projects include a domestic solar installation project in India and wind power development in rural China, helping families come off the fossil fuel grid or use of liquid fuels. You can find out more about the projects we are supporting at www.bp.com/en_gb/target-neutral/home/offsetting-projects.html

Will it be possible for the consumers themselves to choose which projects are used to compensate the carbon emissions?
No, the bp Target Neutral service takes a portfolio approach which means that the benefits of the programme can be evenly spread helping to finance carbon reduction projects in a variety of countries. You can find out more about the projects supported through the programme here www.bp.com/en_gb/target-neutral/home/offsetting-projects.html
How are carbon offsetting projects selected?
Projects selected to be included in the bp Target Neutral portfolio must comply with international standards and demonstrate that carbon emissions reductions are real, additional (i.e., that they would not have happened without the project), permanent and are not double counted. As well as carbon emissions reductions potential, we also ask that suppliers disclose their broader impact to society and the environment using the UN Sustainable Development Goals (SDG’s) – goals such as good health and wellbeing, affordable and clean energy, decent work and economic growth. See www.bp.com/en_gb/target-neutral/home/offsetting-projects/how-we-choose-our-projects.html
Can dealers or their customers propose a carbon offsetting project in their Regions?

No, project selection is a complex process that takes considerable time and expertise.

 

Carbon offset projects are not available in every region.

How is the progress of the carbon offset projects monitored?
Carbon Offset projects are strictly monitored by the bodies that issue the carbon offsets (e.g. UN Clean Development Mechanism, Gold Standard and Verified Carbon Standard). These monitoring reports are published by the international organisations that issue the carbon offsets. bp only purchases carbon offsets from projects that meet these standards.
How are the carbon offsets retired from an international registry

Every twelve months, bp purchases the accumulated carbon offsets for each customer via its accounts on international registries. These offsets are then retired in the registry which means they are taken off the market forever and cannot be used or traded again.


bpTN will be retiring a block of carbon offsets for the PATH360 Dealer programme so the dealer won’t be explicitly stated on the retirement certificate but bpTN will be able to track which dealers have offsets in each retirement block through our invoicing system should we be required to by an internal or external audit.

What does the bp Target Neutral ICROA accreditation cover?
Every year bp Target Neutral (bpTN) goes through an external audit from a third party who checks our offsetting processes against the International Carbon Reduction and Offset Alliance (ICROA) Code of Best Practice. As part of this audit, bpTN respond to a range of questions which cover areas including carbon offset quality, calculation methodologies, and marketing claims. bpTN may be required to submit evidence of the calculations and methodologies behind the offers and the evidence of the offset retirement to prove that they have met the ICROA Code of Best Practice requirements. bpTN is also required to demonstrate how they communicate clearly about the offsetting approaches on the bpTN website and in comms materials.

LEGAL DISCLOSURE 

 

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 to meet everyday energy needs.


Castrol is offering carbon neutral products offset in accordance with PAS2060, which includes the full lifecycle carbon emissions of the products, including production, distribution, use and end of life. When you use a carbon neutral lubricant in your vehicle or machine, CO2 will be emitted into the atmosphere –, either through losses in use and if combusted at end of life.


A carbon offset is an action or activity (such as installation of renewable power or switching to more energy-efficient cooking methods) at one location that compensates for the emission of CO2 or other greenhouse gases to the atmosphere at another location Put another way, carbon offsetting is a way to compensate for emissions by making an equivalent CO2 saving elsewhere. Castrol procures sufficient quantities of carbon credits from a range of carbon offset projects that not only reduce or avoid carbon emissions, but some also provide livelihoodbenefits that support the UN Sustainable Development Goals Castrol retires carbon credits in an international registry which means they can only be counted once.

 

Please note that a carbon offsetting program will not change or reduce the CO2 emissions from any use of Castrol products nor is it certain that carbon offsetting has a quantifiable effect on the planet.


To learn more about climate change, see: https://www.ipcc.ch/

To learn more about bp and our net zero ambition, see: https://www.bp.com/en/global/corporate/news-and-insights/reimagining-energy/net-zero-by-2050.html

EXPLORE FURTHER

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*Committed to certified carbon neutral in accordance PAS2060 from 2021.
 
** The operational emissions of the businesses included on Castrol PATH360 Carbon Neutral Dealer programme are carbon neutral in accordance with the bp Target Neutral (BPTN) Carbon Neutral Protocol, which has undergone a limited-level assurance by ClimateCheck. Businesses included on the Castrol PATH360 Carbon Neutral Dealer programme have to quantify their operational carbon emissions, create and commit to a carbon reduction plan and offset their residual emissions. Emissions calculations are based on activity data provided solely by the business. The emissions from the use of vehicles sold are not included in the emissions calculations. See www.castrol.com/360dealer for complete details.
 
***‘Carbon’ is used throughout as shorthand to refer to CO2e  (carbon dioxide equivalent). CO2e means the number of metric tons of CO2 emissions with the same global warming potential as one metric ton of another greenhouse gas. The CO2e emissions from the use of vehicle fuels are calculated on a ‘well to wheel’ basis, covering the estimated lifecycle emissions of the product, including the production, refining, distribution and combustion of the fuels purchased by the Customer. The approach used is based on the 2020 UK Government GHG Conversion Factors for Company Reporting. Available online at: https://www.gov.uk/government/publications/greenhouse-gas-reporting-conversion-factors-2020. This methodology is aligned with the WRI/WBCSD GHG Protocol.