Castrol launches its new sustainability strategy – PATH360

To achieve the Paris climate goals, the world will need improvements in end use energy efficiency. In one estimate these improvements can provide almost 40% of greenhouse gas (GHG) emissions reductions requiredⁱ. Today, around a quarter of the world’s energy is lost to friction, corrosion and wear.ⁱⁱ

Ever since Castrol was born, it has been dedicated to delivering products that help save energy by fighting friction, reducing corrosion and minimising wear; delivering high-performance with increased efficiency.

Castrol’s new PATH360 strategy:

• Embraces circular thinking – looking at the life-cycle of Castrol’s existing and new products, to see how they can be improved, extended, reused or recycled.
• Supports new and growing sectors, like renewable energy and e-mobility with products and services.

Castrol PATH360’s three focus areas and 2030 aims are:

1. Saving waste – continuing to help customers save energy, waste and commercial customers’ water as well as halving Castrol’s plastic footprintⁱⁱⁱ.
2. Reducing carbon – Castrol aims to halve the net carbon intensity per litre of its products^iv.
3. Working to improve people’s lives around the world, including through carbon neutral programmes and other activities^v.

Reducing life-cycle carbon 

To develop the PATH360 strategy, in 2020 Castrol conducted its first assessment of its greenhouse gas inventory in line with the GHG Protocol  covering scopes 1, 2 and 3. Castrol has identified key enablers for improvement and carbon reduction across its products’ life-cycles.

Castrol aims to deliver high performance with lower life-cycle carbon by improving operational efficiency and exploring opportunities to transition to renewable energy. Castrol is also working with its suppliers, sourcing lower carbon raw materials, reducing packaging and working with its partners to influence what happens to products after customer use. 

For example; 

• Three of Castrol’s plants moved to renewable electricity in 2020.
• Castrol’s new light-weight bottle design uses less plastic, which will save 7,000 tonnes per year by 2023 and is optimised for distribution.
• Castrol has started optimising formulations to deliver lower life-cycle carbon.

Carbon neutral

In 2014, Castrol became the first brand in the world to offer a certified carbon neutral lubricant, Castrol PROFESSIONAL, in accordance with PAS2060^vii.  Ever since, Castrol has continued to expand its carbon neutral offer across cars, commercial vehicles and wind turbines.  

Under Castrol’s PATH360 sustainability strategy, Castrol plans to increase its carbon neutral offer, including a lead brand across each of the automotive, industrial, marine and energy sectors^viii, as well as all products sold by Castrol in Australia, New Zealand, and Vietnam^ix in 2021^x.

To fulfil its carbon neutral programme, Castrol buys carbon credits from bp Target Neutral which supports and contributes to a portfolio of carbon reduction, avoidance and removal projects around the world. These projects have additional benefits that support the UN Sustainable Development Goals, improving the lives of millions of people^xi through better health, decent work, training and gender equality. 

Castrol’s senior vice president, Mandhir Singh, said: 

“Our approach is 360-degree, holistic, whole-system thinking. We’re not starting from scratch with PATH360, it builds upon work we’ve been doing for years, pulling it all together into one integrated sustainability programme. We know that many of our customers are looking for more sustainable offers and help with their sustainability goals, and this is what this programme is designed to deliver.” 

More widely than Castrol, bp has 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.  

Footnotes:

i. Energy Technologies Perspectives 2020 IEA page 73
ii. https://link.springer.com/article/10.1007/s40544-017-0183-5
iii. 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. See www.castrol.com/info/castrolpath360 for more information.
iv. Vs. Castrol’s net carbon intensity of our products sold in 2019. See www.castrol.com/info/castrolpath360 for more information.

v. Through Castrol’s carbon neutral programme see www.castrol.com/info/castrolpath360 for more information.
vi. Greenhouse Gas Protocol | (ghgprotocol.org)

vii. For a product to be considered carbon neutral, its cradle to grave greenhouse gas emissions must be quantified and compensated for through a combination of emissions reduction activities and carbon offsets. 

Castrol’s carbon neutral products follow a robust process where external independent third parties are used to measure the cradle-to-grave emissions using the Greenhouse Gas (GHG) Protocol and assure as certified carbon neutral in accordance with the PAS 2060 specification. 

In 2014, Castrol launched the world’s first carbon neutral engine oil, Castrol PROFESSIONAL, and since then has offset 3.3million tonnes of CO₂e (carbon dioxide equivalent emissions), through this and other products and services. 

In 2021, Castrol expects to offset 1.7million tonnes of CO₂e through high quality bp Target Neutral programmes.
viii. Castrol is committed to making all products sold in its lead brands certified carbon neutral in 2021. The CO₂ emissions are calculated in accordance with the Greenhouse Gas Protocol’s Product Life-Cycle Standard and includes life-cycle emission. The demonstration of carbon neutrality will be assured by an Independent Third-Party and certified to BSI’s PAS 2060 carbon neutral specification. For a list of lead brands and further information see www.castrol.com/cneutral

ix. Castrol is committed to making all products sold by Castrol in Vietnam, Australia and New Zealand certified carbon neutral in 2021. The CO₂ emissions are calculated in accordance with the Greenhouse Gas Protocol’s Product Life-Cycle Standard and includes life-cycle emissions. The demonstration of carbon neutrality will be assured by an Independent Third-Party and certified to BSI’s PAS 2060 carbon neutral specification. See www.castrol.com/cneutral for more information. 

x. In accordance with PAS 2060, the calendar year 2021 is Castrol’s commitment phase for carbon neutrality. The declaration for this period will change from commitment to achievement when this annual process is repeated in 2022 and evidence of a carbon reduction is verified and assured. This means that PAS 2060 requirements relating to all products sold from 01 January 2021 will be met when the verification and assurance is completed. 

xi. Through Castrol’s carbon neutral programme, see www.castrol.com/info/castrolpath360 for more information.

Castrol continues to review its sustainability strategy and plans to evolve it over time as circumstances change. 

References to ‘carbon’ refer to CO₂e (carbon dioxide equivalent).