PATH360 Strategy
Castrol’s approach to sustainability is to take a 360 view, to seek to maximise our contribution to a more sustainable future, and our products and offers are core to that.
PATH360 HAS 3 FOCUS AREAS
Saving waste
We’re continuing to help our customers and the users of our products towards their sustainability goals related to energy, waste, water and carbon, as well as aiming to halve our plastic footprint by 2030a.
Helping Customers
Energy
We are extending our passion for, and experience in, delivering energy and fuel efficiency improvements through our product and services into new sectors like data centres and battery coolants for e-mobility, where we are helping dissipate heat to deliver efficient cooling.
Waste
In addition to developing products and services that help extend equipment life, we are exploring how we can reduce the volume of our products that become waste after use.
Water
We develop products and services that help our customers either use less water and / or reduce water contamination.
Carbon
Many of our commercial customers are looking to take action in relation to carbon emissions in their value chains and Castrol is supporting these aims with the development of “lower carbon” and carbon neutral offers. For more information visit castrol.com/cneutral.
Tracking Progress:
We have developed an approach to help us identify which of our products and services do this best. We call these our products in the PATH360 family and we track their sales as a percentage of our total. To find out more please see our PATH360 Product sustainability assessment.
Plastic
We sell our products in a variety of formats from very small packs to bulk. 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 is to halve our plastic footprint from our 2019 baseline, which is estimated as 23 grams per litre.
Our progress globally 2023
Helping our customers
- PATH360 product sales represents more than 50% of our revenue.
Reducing our plastic footprintb
- Over 6,000 tonnes of plastic saved p.a. compared to our 2019 baseline, through the rollout of new bottle designs and the introduction of Recycled Plastic in India.
Reducing carbon
We’re aiming to halve the average net carbon intensity per litre of our products by 2030c.
We are doing this through a combination of reduction activities in our own operations, through our formulations and, together with our suppliers and customers, along our value chain (from cradle to grave) and using carbon credits (offsets) activated in our portfolio as carbon neutral products, in accordance with PAS 2060. Due to the nature of our products, and the reduction opportunities available, the use of carbon credits will deliver the majority of this.
Castrol product emissions
To develop the PATH360 strategy, in 2020 Castrol worked with independent environmental consultants ERM to conduct our first assessment of its greenhouse gas inventory in line with the GHG Protocol’s corporate value chain standard covering scopes 1, 2 and 3. Together with our work on product carbon life-cycle assessments, this work enabled us to identify carbon reduction opportunities across the product life-cycle and to understand what we can do and where we need to work with our partners to influence change.
The infographic below shows the Average Castrol Product Carbon Footprint 2021 - (Scope 1, 2 + 3)
Infographic key
1. Emissions we can directly control or indirectly influence
Embodied or embedded carbon
Greenhouse gas emissions generated during the production and transportation of goods, from the extraction of raw materials to the manufacturing process and final delivery to the customer.
2. Hardest to abate emissions
Carbon content
Greenhouse gas emissions generated by products based on their chemical makeup, application in use and end of use treatment
3. Secondary use
N.B. Carbon content emitted to atmosphere through secondary use (e.g. as a fuel) is NOT included in Castrol's product footprint boundary.
4. Raw Material Production Emissions
Production emissions of base oils and additives, from extraction to the supplier’s factory gate.
5. Distribution Emissions
Emissions from moving goods across the value chain, from the supplier’s factory gate through delivery to the consumer.
6. Packaging
Production Emissions of packaging materials (e.g., plastic, corrugate, steel) and the fabrication process (e.g., blow moulding, sheet rolling, welding).
7. Production (Blending & Filling)
Production emissions from energy consumed at Castrol blend plants and 3P sites (Scope 1 + 2).
8. Losses in Use
Emissions generated when the carbon content of a product is lost to the atmosphere (through combustion, evaporation or leakage) during its functional use or application.
9. End of Use
Emissions generated when the carbon content of a product is lost to the atmosphere with no secondary benefit (e.g., landfilled, incinerated without energy recovery or lost to the environment.
Our progress globally 2023
- We've achieved more than a 40% reduction in Scope 1 & 2 emissions compared to 2019 levels. By emphasizing energy efficiency, generating renewable energy on-site, and utilizing electricity from renewable sourcesd, 16 of our facilities have markedly lowered their dependence on fossil fuels for energy use.
- Re-refined base oils, which have on average 50% lower carbon emissions from production vs virgin base oils has been introduced into formulations made in US, Europe, China and Australia blend sites
- All products have been carbon footprinted giving more accurate insight to the source of carbon emissions
- Carbon neutral achievement in accordance with PAS 2060
- for scope 1 & 2e for Castrol owned or controlled operations
- 33% of products sold by volumef
- 7.7mT carbon credits retired since 2014
Improving people's lives
We build in positive outcomes for people around the world as we work. Our activities range from being a responsible employer and working with suppliers that share our values to aiming to support more sustainable livelihoods, for example with projects to help mechanics, and a focus on customer inclusion.
Our third aim - to improve people's lives around the world draws directly from the bp sustainability frame.
bp’s people aims provide focus and structure for the actions we take to improve people’s lives. They build on our strong social impact and risk management requirements, and on guidance in our operating management system. bp has published 5 “people” aims and Castrol is part of three of these:
- Sustainable livelihoods
- Greater Equity
- Enhance wellbeing
Our progress globally 2023
bp’s people aims (part of its sustainability frame) provide focus and structure for the actions we take to improve people’s lives. They build on bp’s strong social impact and risk management requirements, and on guidance in our operating management system. In 2023,
- 5/11 positions on Castrol’s leadership team, including CEO, held by women, 46/170 senior leaders are women.
- Mechanics programmes running in India and Middle East
...and 6 guiding principles
Think Circular
We look at the life-cycle carbon emissions of our products from “cradle to grave” and are using circular economy thinking to help us improve them.
Lower Carbon Design
We consider life-cycle carbon emissions as part of our product development process to deliver high performance lower life-cycle carbon solutions.
Carbon Neutral
To make a carbon neutral offer, we follow the PAS 2060 standard to calculate the life-cycle carbon emissions (or carbon footprint) of the product, develop and follow a carbon reduction plan, purchase and retire sufficient carbon offset credits to compensate for residual emissions. Our achievement is assured by independent assurers. Carbon offsetting is a rapid way to compensate for a product’s carbon footprint1 while we work to bring it down.
Customer Solutions
We know that the biggest difference we can make is by working together with our customers and partners and helping towards their sustainability goals. Our products can help their users save energy, waste or water and we are focused on high performance solutions to maximise this contribution. We are also working to develop products with lower carbon footprints to support customers towards their carbon aims.
Advance the Transition
We are investing in and developing products and services that support the world’s transition to renewable energy and sustainable technologies - like lubricants for wind turbines and fluids for e-mobility.
Find out more about how we track progress.
Improving People's Lives
We build in positive outcomes for people around the world as we work. Our activities range from being a responsible employer and working with suppliers that share our values to aiming to support more sustainable livelihoods, for example with projects to help mechanics, and a focus on customer inclusion.
- *As part of bp’s ambition to be net zero by 2050 or sooner and to help the world get to net zero.
- a 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 is from our 2019 baseline.
- b Castrol defines its plastic footprint as the amount of virgin plastic included in our packaging per litre that isn’t recycled. To find out more please see our PATH360 Product sustainability assessment.
- c vs Castrol’s net carbon intensity per litre of our products sold in 2019.
- d Renewably sourced grid electricity covers renewable energy certificates, green energy contracts and guarantees of origin.
- e Scope 1 emissions are direct emissions from owned or controlled sources and Scope 2 emissions are indirect emissions from the generation of purchased energy. Castrol’s PATH360 strategy is focused on these emissions first as these are where we have most control. Castrol’s carbon neutrality programme is in accordance with the PAS 2060 standard which requires ongoing carbon reductions as well as offsets to compensate for residual emissions. Find out more in www.castrol.com/cneutral.
- f Given the changing landscape and regulatory environment, in particular in relation to the use of carbon offsets to support carbon neutrality claims to consumers and customers, Castrol has reviewed its carbon neutral offers. following this review, Castrol has taken the decision to reduce its portfolio of carbon neutral products and to re-allocate those resources towards programmes and practices that can help to reduce the carbon intensity of its products within its value chain and operations. Find out more in www.castrol.com/cneutral.