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IT'S MORE THAN JUST OIL. IT'S LIQUID ENGINEERING.

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PATH360 DEFINITIONS

PATH360 Definitions

 

1. Plastic Footprint

2. Net Carbon Intensity per litre

3. Improving People's Lives

 

1. Plastic Footprint:

 

Castrol aims to halve its plastic footprint by 2030

 

To promote the responsible design and management of plastic packaging along its life-cycle, Castrol defines its plastic footprint as the amount of virgin plastic included in our packaging per litre that isn’t recycled. Our aim to halve it from our 2019 baseline which is estimated as 23 grams per litre.

 

Making packaging more sustainable is one of the biggest sustainability challenges at Castrol. We want to bring our plastic footprint down and will employ circular economy thinking to help us do so.

 

 

Castrol aims to reduce plastic footprint via 5 key focuses: reduce, replace, reuse, recycle and relationships

Reduce

  • We've redesigned our high density polyethene (HDPE) plastic packaging to be stronger, lighter and more efficient through distribution.  They are expected to reduce our plastic use by 7,000 tonnes per year from 2023 (baseline 2019)

Replace

  • We supply our product in a number of formats from plastic bottles, through “bag in box” formats to metal cans and drums.  Our choice of pack format and material is driven by customer and market need. 

Reuse

  • In US we have been able to source high quality recycled plastic (PCR) enabling us to use on average 27%¹ in our bottles.
  • Legislation around the use of recycled content is expected or coming in a number of countries.  Securing appropriate qualities of post-consumer recycled HDPE is a challenge we are preparing for.

Recycle

  • As our packs have contained oil they are generally not accepted into mixed plastic recycling streams.  However in a number of countries, such as Germany & Brazil we have supported programmes to increase recycling rates for used oil packs
  • In India we have initiated a pilot exploring options for waste oil and packaging collection.

Relationships

  • Working with our suppliers
  • Working with industry associations

¹All our bottles in the US are designed to be compliant with The California Rigid Plastic Packaging Container (RPPC) Act of 1991 

 

2. Net carbon intensity per litre

 

Castrol aims to halve the net carbon intensity per litre of its products by 2030 against its 2019 baseline. 

 

Castrol defines the net carbon intensity of its products by measuring its annual corporate emissions (Scope 1, 2 and 3 emissions), subtracting both the non-product related emissions (e.g. business travel and professional services) and the number of offsets retired in that year and dividing by corresponding years sales volume. 

Castrol's 2019 corporate GHG emissions inventory (Scope 1,2 + 3)
*Developed in partnership with ERM, in accordance with the GHG Protocol's Corporate Value Chain Standard . 

Castrol has been conducting product lifecycle assessments to support its carbon neutral products since 2014.  In 2020 Castrol calculated its corporate carbon footprint (GHG protocol Scope 1, 2 and 3 includes emissions from operations, purchased energy, production, transportation, use of products and their disposal**) for the first time.  This work is helping us understand the drivers of the lifecycle carbon of a typical lubricant product.  Castrol’s 2019 baseline was 2.24 g/l CO2e/litre.

 

Our carbon reduction plans includes activities across the value chain: investigating the opportunities to transition to renewable energy across our owned assets, collaborating with suppliers to incorporate lower life-cycle carbon raw materials into our portfolio of products, exploring options to drive a behavioral shift in used oil collection and end of use treatment in key markets and reducing our packaging and optimizing distribution.  We are already in action as 3 of our operating sites have moved to renewable energy contracts in 2020 and we are extending the use of our redesigned bottles which use less plastic.

 

Castrol uses carbon offsets to achieve carbon neutral products and in 2020, 20% of our product sold (by volume) was carbon neutral.

 

More widely than Castrol, bp has also set out a series of greenhouse gas emission reduction aims for 2030 in support of its ambition to be a net zero company by 2050 or sooner and to help the world get to net zero. bp does not intend to rely on offsets to meet these 2030 aims.

 

** derived using 2019 data and will be updated periodically to reflect latest developments.

 

3. Improving people's Lives:

Improving people's lives is a focus area and a guiding principle for Castrol.  We seek to build in positive outcomes for people around the world as we work. It starts within our business and extends into activities ranging from aiming to improve mechanic education, helping to support more sustainable livelihoods and a focus on customer inclusion.  As a proud member of the bp group, we market our products in around 120 countries. made possible by a network of over 5,000 talented employees.  Collectively, we serve more than 550,000 customers, with nearly 200 million end users.

 

Our employees

Since our earliest days as a family-owned business, we’ve been industry pioneers. Whether it’s in the technology we develop or in the markets we influence, we’re connected by a shared heritage and set of values that inspire our people to become the best in their field. We’ve always pushed the boundaries in search of better results. It’s this passion for winning that fuels Castrol – and the passionate people we employ.

 

We succeed through our people. And that means rewarding them. Making them feel valued. Going home safely every day. Creating an environment that is inclusive and meritocratic, where everyone can perform to the best of their capabilities. We believe that doing what’s right - for our people, and our business. And it’s been a winning formula that’s brought us success for over a century.

 

Our contractors

In Malaysia we continue work to support labour rights. In 2020 at our Port Klang plant we identified that some of the contractor workforce did not have a contract of employment or access to benefits as they were ‘casual’ labour. Recognizing that this was not aligned with our labour rights and modern slavery (LRMS) principles, the business re-tendered the contract, consolidated the number of contractors and size of workforce with the stipulation that workers would have formal employment contracts with the contractor. The enhanced workforce provisions included guaranteed monthly wages, paid leave and sick leave, and continued provident fund payments. In addition to being the right thing to do to support labour rights, we believe this also has business benefits in terms of potential improvements to attendance and attrition rates, safety, reduced onboarding and training costs and overall productivity.

 

Our customers and consumers

As a world-leading manufacturer, distributor and marketer of premium lubricating oils and greases,  operating worldwide, we deliver products and services for virtually all domestic, commercial, automotive, industrial, marine, aviation, oil exploration and production purposes, on a vast scale. We supply a diverse portfolio of customers, consumers and commercial partners, ranging from some of the largest global industries to the smallest independent local businesses. By helping our customers to be successful we will grow ourselves. 

 

For Example:

  • We’ve developed our relationships further with a select group of distributors who have ‘ambassador’ status and enjoy a closer working relationship. Since 2009, the Castrol ambassador events have brought together hundreds of distributor partners from around the world. In Rio with the Castrol Ambassador Club | Bray Leino
  • In India we developed 21 Yoga Asana’s specifically for truckers.A month long research study, covering over 1000 truckers across the country has been carried out by a leading research organisation, in association with Castrol India, to understand the health issues faced by truckers which can be directly linked to the hazardous nature of the job and working conditions. Castrol also commissioned experts from The Yoga Institute in Mumbai to further investigate the issues and come up with some easy health tips which can be followed by the truckers even whilst they are on the go. The result is a series of specially curated Yoga Aasanas for truckers – the Truck Aasanas. CASTROL CRB TURBOMAX TRUCK AASANA | CASTROL INDIA

 

And through our use of carbon offsets as part of our certified carbon neutral products programme.

Reducing and offsetting the carbon emissions associated with our certified carbon neutral products not only supports projects around the world that reduce, avoid or remove carbon but also helps to improve lives.  Since 2014, through bp Target Neutral, Castrol has supported programmes that have helped improve over 1.8 million lives*** through better health, decent work, training and gender equality.

 

An example of the bpTarget Neutral projects Castrol invests in is a cookstove project in Mexico. This project is helping to equip rural communities in Mexico with 37,000 cookstoves that burn much more efficiently than open fires, saving firewood, reducing indoor air pollution and improving respiratory health. The project is saving almost 92,000 tCO2e per year.  For more information see Our carbon offset project portfolio | bp Target Neutral

 

***based on data provided by offset project suppliers and publicly available in CDM, Gold Standard and VCS monitoring and impact reports