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 and support their customers offset carbon emissions from fuel from driving.
In 2014, Castrol became the first brand in the world to offer a certified carbon neutral lubricant, Castrol professional, in accordance with PAS2060.
Ever since, Castrol has continued to expand its carbon neutral offer across cars, commercial vehicles, and wind turbines. Under Castrol’s PATH360 sustainability strategy, Castrol willincrease its Carbon Neutral offer and in 2021 Castrol increased its Carbon Neutral offer to cover ~30% of volume sold.
*Committed to certified carbon neutral in accordance PAS2060 from 2021. See www.castrol.com/cneutral for more details
Castrol will provide car dealers with a purpose-built carbon neutral programme including guidance to help them calculate their business’s operational carbon emissions, create and commit to a carbon emissions reduction plan and then offset the residual carbon emissions, with the aim of going carbon neutral.
Operational emissions include the emissions from the businesses’ direct operations on their site (what is typically called Scope 1 and 2) in addition to some Scope 3 emissions sources, including business travel and staff commuting. Operational emissions of the dealers Castrol works with do not include the carbon emissions from the use of vehicles they sell.
** 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, 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.
Castrol can help car dealers and their customers to offset the carbon emissions from fuel for their own fleet or the vehicles that are sold or serviced by the dealership, using Castrol’s purpose-built carbon offsetting offer.
***‘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 2021 UK Government GHG Conversion Factors for Company Reporting. 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.
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.
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.
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.
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.
This methodology is aligned with the WRI/WBCSD GHG Protocol. See www.castrol.com/360dealer for complete details and to download the methodology statement.
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.
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.
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
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
No, project selection is a complex process that takes considerable time and expertise.
Carbon offset projects are not available in every region.
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.
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