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CARBON NEUTRAL PRODUCTS

“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. 

CASTROL’S CARBON NEUTRAL PORTFOLIO

carbon neutral portfolio
Castrol’s carbon neutral portfolio includes the products that had been verified as carbon neutral from 2014 – 2020 as well as products introduced into the carbon neutral portfolio from 2021. In 2021, the scope of Castrol’s Carbon Neutral Portfolio was expanded, and a new verification and assurance programme was initiated to bring together all carbon neutral products under one programme. All products in the programme have achieved carbon neutrality 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.

CARBON NEUTRAL Products IN ACCORDANCE WITH PAS 2060

PAS 2060 specifies a four-stage process to demonstrate carbon neutrality which includes: 

  • Assessment of GHG emissions based on accurate measurement data
  • Reduction of emissions through a target-driven carbon management plan
  • Offsetting of excess emissions, often by purchasing carbon credits 
  • Documentation and verification through qualifying explanatory statements and public disclosure  

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. 

 

ASSESSMENT

 

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.

process map

REDUCTION

 

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.

 

OFFSETTING

 

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:

 

CASTROL’S CARBON NEUTRAL DECLARATION

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.) 

 

CARBON NEUTRALITY - CASTROL’S OPERATIONAL ACTIVITIES

 

Castrol’s PATH360 programme also includes making its Scope 1 and 2 emissionsiv  carbon neutral in accordance with PAS 2060. 

  • 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

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). 

PATH360 QUALIFYING CRITERIA

Carbon Neutral is one of four qualifying criteria in Castrol’s PATH360 Strategy. Please see PATH360 Qualifying Criteria for more information.

 iIn accordance with the guidelines of PAS 2060, Castrol is relying on 100% offsets to compensate for the CO2e emissions in its baseline period. While carbon reduction activities are in action with some examples included in Section 5.2 of the QES, the exact amount of the carbon reductions in 2021 will be confirmed when Castrol completes the carbon footprinting of its carbon neutral portfolio by the end of 2022.  See Sections 5.2 and 6.1 of the PAS 2060 Qualifying Explanatory Statement – Castrol Carbon Neutral Products for more information.
 
iiSee PAS 2060 - Carbon Neutrality Standard and Certification | BSI (bsigroup.com) for more information.

iiiCastrol’s Carbon Management Plan is explained in detail in Section 5.2 of the PAS 2060 Qualifying Explanatory Statement - Castrol Carbon Neutral Products.
 
ivMeasured in accordance with the GHG Protocol’s Corporate Standard