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  • PAS 2060 is an internationally applicable specification developed by the British Standards Institution (BSI) for the demonstration of carbon neutrality. Carbon neutral is defined within PAS 2060:2014 as a condition in which during a specified period there has been no net increase in the global emission of greenhouse gases to the atmosphere as a result of the greenhouse gas emissions associated with the subject during the same period.  PAS 2060 follows a 4-step process establishing guidelines for measuring, reducing, and offsetting greenhouse gas (GHG) emissions for businesses, products, and events as well as reporting of these actions. 
  • 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.   When you use a carbon neutral lubricant in your vehicle or machine, some CO₂ will be emitted into the atmosphere through its lifecycle – for example, as losses in use or end of life treatment or disposal.  
  • 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 2060.  In 2021, Castrol increased its Carbon Neutral offer further to cover ~30% of volume sold; this now includes a brand in every space served (e.g., automotive, industrial, marine, energy, and e-fluids) as well as all products sold by Castrol in Australia, New Zealand, and Vietnam.
  • The World Resources Institute (WRI) and the World Business Council for Sustainable Development (WBCSD) have developed the GHG Protocol’s Product Life Cycle Accounting and Reporting Standard.  In accordance with this protocol, Castrol assesses the cradle to grave lifecycle greenhouse gas (GHG) emissions of all products in the Carbon Neutral Portfolio and then verifies their carbon neutrality using BSI’s PAS 2060


  • This product lifecycle assessment includes measuring all product-related Scope 1, 2 and 3 GHG emissions (raw materials, manufacturing, packaging, distribution, losses in use and end of use treatment) and excludes non-product related GHG emissions like indirect purchases, capital goods and employee commuting.
  • Castrol works on reducing its GHG emissions through a target-driven carbon management plan that is set out in Section 5.2 of the PAS 2060 Qualifying Explanatory Statement (“QES”).  For example, Castrol has already transitioned 9 sites to renewable energy across its portfolio using renewable electricity contracts and 4 sites are utilizing solar-sourced electricity.   
  • Remaining emissions are offset through the purchase and retirement of carbon credits from a portfolio of projects provided to Castrol by bp Target Neutral . A carbon offset is an action or activity that compensates for (such as the planting of trees or carbon sequestration) or prevents (such as renewable energy projects) the emission of CO₂ or other gases to the atmosphere. Put another way, carbon offsetting is a way for compensating for emissions by making an equivalent CO₂ saving elsewhere. The carbon offset program Castrol has used since 2014 has supported a range of projects. 
  • bp Target Neutral is a member of ICROA (The International Carbon Reduction and Offset Alliance). This means its portfolio of carbon reduction projects comply with the requirements of ICROA’s Code of Practice and bp Target Neutral are independently audited against it annually. All carbon credits used are from projects that meet recognised standards from international carbon offset registries and are listed in Table 6.1 of the QES.


  • Castrol products contribute to saving energy and driving efficiency in use, but there are carbon emissions associated with their lifecycle. Reducing product lifecycle carbon emissions will take time and requires action all along the value chain. Carbon offsetting is a way for us to contribute to the climate challenge while we and society work to reduce emissions in other ways. The PAS 2060 process addresses both actions.
  • For the year 2021, Castrol has relied on 100% offsets to meet the requirements of carbon neutral achievement and to compensate for the CO2e emissions in its baseline period – this is in accordance with the guidelines of PAS 2060.


  •  Carbon emission reduction activities were nonetheless in action in 2021 and some examples are included in Section 5.2 of the QES. The quantity of these carbon reductions in 2021 will be confirmed when Castrol completes the recalculation of the carbon footprint of its carbon neutral products by the end of 2022.  Castrol plan to update its subsequent annual QES in the first half of 2023 to reflect its carbon neutral achievement through a combination of carbon reduction and offsets.  
  • All ~1200 product variants in Castrol’s Carbon Neutral Portfolio are verified as carbon neutral.  A summary of the brands in scope is included below and a full list of products can be found in Table D.3 of the QES.



“Carbon neutrality of the products in scope achieved 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 accordance with PAS 2060 Castrol provides a qualifying explanatory statement (QES) that includes the evidence substantiating the declaration in respect of carbon neutrality.  Castrol’s QES (PAS 2060 Qualifying Explanatory Statement - Castrol Carbon Neutral Products) includes, in Annex A, the checklists of criteria for substantiating evidence for the declaration of the commitment to and achievement of carbon neutrality in accordance with PAS 2060.  These checklists (Tables A.1 (commitment) and A.2 (achievement)) include the full description of the criteria and the specific locations within the QES where the supporting evidence for each can be found.  The criteria checklists require evidence on the application of PAS 2060 and it’s four-stage process as summarized below in the section: CARBON NEUTRAL PRODUCTS IN ACCORDANCE WITH PAS 2060.



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

  • Assessment of greenhouse gas (GHG) emissions based on accurate measurement data
  • Reduction of emissions through a target-driven carbon management plan
  • Offsetting of residual 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. 



Castrol assesses, identifies, and measures CO₂ emissions throughout each product’s life cycle.  


The figure below is derived from the GHG Protocol’s Product Life Cycle Accounting and Reporting Standard, It demonstrates the key activities that make up a product’s life cycle. 

To quantify the GHG emissions of the product, primary activity data (process-specific data obtained by direct measurement of the energy or business activities) and secondary data (data obtained from sources other than direct measurement of the emissions from processes included in the life cycle of the products) is collected for each activity and used in conjunction with emissions factors (coefficients) to convert activity data into GHG emissions.


Table 3.2 of the QES provides a description of each lifecycle stage shown above and the key inclusions and exclusions used to quantify GHG emissions have been summarized below:



 Lifecycle Stage  Inclusions  Exclusions
 Material acquisition & pre-processing raw material extraction and processing to produce components (e.g., base oils and additives) and packaging

capital goods and infrastructure (i.e., manufacture and maintenance of machinery and buildings)

personnel activities (e.g., commuting to and from work)

storage at distribution warehouse

production blending of components (base oils and additives) and filling into product packaging (plastic bottles, steel drums, Intermediate Bulk Containers (IBCs), etc.)
distribution and storage distribution of packed products from Castrol blending sites to customers (e.g., dealerships and retailers)

filling of product (e.g., vehicles, equipment, and machinery) 

leakage of product during use 

where applicable, combustion of product during use

draining of product from product application system as this is a manual operation.


the beneficial greenhouse gas emission impacts of the product in use (e.g., fuel savings from reduced friction, raw material saved due to durability/extended drain, etc.)


transportation of used product to a waste management facility


used product incineration with and without energy recovery, landfill, or re-refining, where only incineration without energy recovery and landfill have GHG emissions impacts within the Castrol boundary 


treatment of waste packaging to recycling, incineration with energy recovery, incineration without energy recovery or landfill

in line with the recycled content method (Chapter 9 of the GHG Product Protocol), the following processes are not included in the boundary of this life cycle stage: 


processes that transform waste to a useful material in another process (e.g., re-refining of used oil and recycling of plastic)



Castrol’s carbon management plan is a global program 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 is 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 purchases and retires (destroys) carbon credits, from carbon reduction projects, to offset residual product carbon emissions.


Castrol has purchased 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 carbon reduction projects comply with the requirements of ICROA’s Code of Practice and bp Target Neutral are independently audited against it annually. All carbon credits used are from projects that meet recognized industry standards from international offset registries, including the UN CDM and the Verified Carbon Standard.  After purchase, sufficient carbon credits are retired (destroyed) to balance the emissions associated with the Carbon Neutral claim.  See for more details.


Table 6.1, extracted from PAS 2060 Qualifying Explanatory Statement - Castrol Carbon Neutral Products, contains the list of carbon credits retired in relation to 2021 products and more information about the projects they are from. Since the inception of its carbon neutral program in 2014, Castrol has offset (through the purchase and retirement of carbon credits) more than 4.6 million tons of GHG emissions. 




The Qualifying Explanatory Statement (QES) is a requirement of PAS 2060 and demonstrates that (and how) Castrol has achieved carbon neutrality for its Carbon Neutral Products: 


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