“Carbon neutrality of the products in scope achievedi by Castrol in accordance with PAS 2060 at 31st December 2021 with the commitment to maintain to 31st December 2022, for the period commencing 1st January 2022, DNV certified”– Castrol’s Carbon Neutrality Declaration as documented in its PAS 2060 Qualifying Explanatory Statement - Castrol Carbon Neutral Products.
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 2060ii , an internationally recognized specification for the demonstration of carbon neutrality. Over the next few years, Castrol continued to expand its carbon neutral portfolio to include additional brands in the passenger car and commercial vehicle engine oil spaces, as well as gear oil for wind turbines. In 2021, as part of Castrol’s PATH360 sustainability strategy, Castrol increased its Carbon Neutral offer further to cover ~30% of volume sold; this now includes a lead brand in every space (e.g., automotive, industrial, marine, energy and e-fluids) as well as all products sold by Castrol in Australia / New Zealand and Vietnam.
PAS 2060 specifies a four-stage process to demonstrate carbon neutrality which includes:
Castrol’s application of PAS 2060 involves two external independent third parties; one to do the assessment of GHG emissions and a second to do the verification and assurance of carbon neutrality.
The figure below comes from the GHG Protocol’s Product Life Cycle Accounting and Reporting Standard, which Castrol uses for its PAS 2060 carbon footprinting, and it demonstrates the key activities that make up a product’s life cycle. To quantify the GHG emissions of the product, primary and secondary data is collected for each activity and used in conjunction with emissions factors (coefficients) to convert activity data into GHG emissions.
Castrol’s carbon management planiii is a global approach 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 are 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.
Castrol has purchased and retired its offset credits from a portfolio of projects provided by bp Target Neutral. bp Target Neutral are a member of ICROA (The International Carbon Reduction and Offset Alliance). This means its portfolio of offset projects comply with the requirements of ICROA’s Code of Practice and bp Target Neutral are independently audited against annually. All offset credits used are from projects that meet recognised industry standards from international offset registries, including the UN CDM and the Verified Carbon Standard. See http://www.bptargetneutral.com for more details.
Table 6.1, extracted from PAS 2060 Qualifying Explanatory Statement - Castrol Carbon Neutral Products, contains the list of offset credits retired in relation to 2021 and more information about the projects they are from.
DOCUMENTATION AND VERIFICATION
This document forms the Qualifying Explanatory Statement (QES) to demonstrate that Castrol has achieved carbon neutrality of its Carbon Neutral Products:
In 2021, in accordance with PAS 2060, Castrol’s carbon neutral declaration was completed under conformity assessment I3P-1, which designates Castrol is committed to carbon neutrality. Castrol had measured the carbon emissions of the products in scope, initiated a carbon management plan to reduce carbon and purchased and retired carbon credits to offset the balance of its 2021 emissions.
Castrol’s carbon neutral declaration is now I3P-3, “Carbon neutrality of the products in scope achievedi by Castrol in accordance with PAS 2060 at 31st December 2021 with the commitment to maintain to 31st December 2022, for the period commencing 1st January 2022, DNV certified” This achievement declaration has been verified by an Independent Third Party and their Assurance Report can be found within Castrol’s Carbon Neutral Products Qualifying Explanatory Statement (QES). (See DOCUMENTATION AND VERIFICATION above.)
Castrol’s PATH360 programme also includes making its Scope 1 and 2 emissionsiv carbon neutral in accordance with PAS 2060.
The document at the link below forms the Qualifying Explanatory Statement (QES) to demonstrate that Castrol has committed to carbon neutrality for its Scope 1 and 2 operational emissions for 2021: (Note - The Declaration of Achievement is in assurance to complete in 4Q 2022).