Transcript Document

Innovating for a Sustainable Future
2011Highlights
Revenue
Profit before tax
Earnings per share
£1,068.4m
£242.2m
122.5p
↑ 6.6%
↑ 25.9
↑ 28.4%
Landfill waste
Energy consumption
1% Club time
↓ 42.9%
↓ 4.9%
4,679 hours
continuing operations
Continuing operations
↑ 132%
Innovating for a Sustainable
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Employee volunteering programme
Who We Are
Innovation
is the spirit that drives us
forward
Focussed
on our customers needs and
wants
Experts
with a reputation for research,
quality and innovation built
over 80 years
Dedicated
to the separation,
concentration, purification and
derivatisation of natural
products
Committed
to a better future with green
technology and responsible
sourcing strategies
Innovating for a Sustainable
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Leaders
in the production of speciality
ingredients for high growth
markets
Where We Operate
17 Manufacturing Sites
18 R&D Centres
46 Sales Offices
Head Office
Manufacturing Site
Sales Office
Europe
Americas
Asia
Rest of World
Innovating for a Sustainable
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33 Countries
A History of Innovation
1950
1985
2010
1925
1991
2006
1970s
First
tobegins
develop
intrading
thea wheat
USA
Medilan
Croda
Launch
Expansions
of
is Optisol
Crodasone
accredited
of
business
range
with
asWin,of
1920s
1930s
1940s
refining process
1950s
1960s
1976
1996
1964
1941
1989
2007
2012
Crotein
Q the
Start
ofasaofaprogramme
of
Listed
Launch
Application
Span
public
&company
Tween
Publication
of first
first
trulyesters
quaternised
Super-refining
excipients
sorbitan
nanotechnology
forto food,
achieve
Corporate
Sustainability
Social
Report
protein
and
ingredients
for Report
pharma
high
purity
and
surfactants
cosmetic
for
Responsibility
(formally
CSR
(CSR)
Report)
pharmaceuticals
applications
oral
care the Company’s
outlining
long term strategy and
objectives
1970s
1980s
1990s
1998
1949
2008
Acquisition
of first
Sederma
Launch
of Polawax
,Global
the and
Publication
subsequent
launch
of(GRI)
most successful
nonionic
Reporting
Initiative
acylated
peptides
emulsifying
wax infor use in
Report
anti-ageing
cosmetics
Innovating for a Sustainable
Future
withfirst
based
new
protein
operations
ingredient
“skin
operations
the
dispersed
Latin
friendly”
America
silicone
metal
established
and
byoxides
co-polymer
the
Asiainfor
established
Yorkshire
Sun
British
with
Care
new
Skinoperations
and
supplying
Foundation
began lanolin
the
and
expansion
established
waxes of metal oxides
business
1972
1986
1994
1961
2006
2012
1939
Introduction
Production
Launch
oflanolin
Hydrotriticum
ofthe
ofhigh
first
soluble
Fluilan
, apurity
liquidis
Acquisition
Uniqema,
Croda
Hartolan
joins
London
alcohol
PVP, the
collagen
erucic
acid
first
foraPVP
the
hydrolysed
co-use
variant
ofwith
lanolin
for
further
expanding
Croda’s
Stock
developed
Exchange
and
FTSE
100in
collagen
treatment
polymer
of ALD
cosmetics
portfolio
and
presence
list
commercialised.
of companies
First co(Lorenzo’s
oil) of lanolin
stream product
2000s
2010s
What We Do
Consumer Care
Sun Care & Biotechnologies
Sederma
Crodarom
Health Care
Performance Technologies
Lubricants
Innovating for a Sustainable
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Personal Care
Crop Care
Industrial Chemicals
Coatings & Polymers
Home Care
Geo Technologies
Polymer Additives
Industrial Chemicals
Our Nature
Naturally derived ingredients
 Each year around 70% of raw materials are from renewable sources
 Sugars
 Botanical extracts
Green processing
 Biocatalysis
 Fermentation
 No solvents and minimised waste by-products
Minimised environmental impact
 Biodegradability
 Low and non-toxic products
Innovating for a Sustainable
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 Biopolymers
What is Sustainability?
For Croda it’s simple, doing business sustainably means doing business the
right way. The right way by our people, the environment, the communities we work within and those
organisations we work with.
Our commitment
We recognise that it is not just about our products, how
they are made or how they are used, but also the
impact of everything we do on the economy,
environment and society.
Innovating for a Sustainable
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“Sustainable development is development that meets the needs of the present without compromising the ability
of future generations to meet their own
needs”. (Brundtland Report)
Embedding Sustainability
“
We feel that through our emphasis on emerging markets and technologies, we are making our
own small contribution, going beyond “not compromising” and actually “enhancing” the
capabilities of future generations.
Steve Foots, Group Chief Executive
”
 all functions and individuals are valued;
 leaders will have as their primary objective to build other leaders;
 we will achieve our goals through excellent and constant communication and setting
clear objectives;
 continually improve; and
 continue to be an ethical and responsible company.
Innovating for a Sustainable
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At Croda CSR is all ‘Our Responsibility’ and is at the heart of Our Vision, which states
that:
Delivering Our Sustainability Strategy
CSR Management Structure – CSR Steering Committee
Innovating for a Sustainable
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Our Material Issues
Environment
Health & Safety
Employees
Responsible
Sourcing
1. Renewable Raw
Community
Materials
2. Responsible Palm Oil
Sourcing
3. Product Data Gathering
Health & Safety
1. Process Safety
Management
2. Occupational Health &
Safety
Low
Employees
Our
People
1. Recruitment &
Retention
2. Compensation &
Benefits
3. HR Policies & Systems
4. Talent Management &
Employee Development
5. Performance
Management
Impact & Risk to Croda
Our
Neighbours
Community
1. Community
Communication
2. Community
Involvement
3. Community Education
Innovating for a Sustainable
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Stakeholders
1. Corporate
Stakeholder
Responsible
Sourcing
Engagement
2. Ethical Supply Chain
High
Our World
Environment
1. Air Quality & Climate
Change
2. Water Quality &
Supply
3. Landfill Waste
Importance to Stakeholders
Corporate
Stakeholders
Our Partners
Corporate
High
Key Material Issues & Targets
Air Quality & Climate Change
 Based on 2010, reduce total Group energy consumption by 5% by 2015
Reduction in GHG emissions to ensure we
progress towards fully sustainable operations
 Based on 2010, reduce total Group VOC emissions by 10% by 2015
Minimise our environmental burden from water
consumption and waste water discharges
Landfill Waste
 Based on 2010, reduce total Group water consumption by 10% by 2015
 To achieve 100% compliance with effluent discharge consents by 2015
 Based on 2010, reduce total Group waste to landfill by 20% by 2015
Phase out the deposition of waste into landfill sites
Occupational Health & Safety
A sustainable reduction in the rate of injuries
 Sustained year on year improvement on the frequency of injuries to all personnel
across all manufacturing sites and offices, to ultimately reduce the rate to 0.2 per
100,000 hours worked on a sustainable basis
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Water Quality & Supply
 To have 25% of the Group’s total energy requirements generated from non-fossil
fuel sources by 2015
Key Material Issues & Targets
Renewable Raw Materials
A sustainable product portfolio and new product development
dedicated to meeting customer needs
Support sustainable Palm Oil and Palm Kernel Oil, working with the
industry on securing a sustainable source of derivatives
Product Data Gathering
Leaders in the quality and quantity of product sustainability data
Corporate Stakeholder Engagement
Open ongoing engagement with key stakeholders to identify and
review material issues for our business and all our partners
 Work more closely with suppliers and RSPO to seek ways to source
sustainable PO and PKO derivatives wherever possible during 2012
 Ensure that the small quantity of PO purchased directly is sourced
sustainably by seeking certification by the end of 2012 under RSPO
guidelines
 Complete a gap analysis for the products within our Ingredient Sustainability
programme by the end of 2012 to allow data gathering to start at
manufacturing site level in 2013
 Extend our formal survey to the top 50 customers across all market sectors
in each region during 2012
Innovating for a Sustainable
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Responsible Palm Oil Sourcing
 Monitor the sustainability of new products by measuring the renewable raw
material content and by assessing them against the 12 Principles of Green
Chemistry during 2012
Key Material Issues & Targets
Recruitment & Retention
Attract, recruit and retain high calibre staff to support our
business objectives
Instil a high performance culture a consistent approach to
performance management
Community Involvement
Put community communication into action, support future
recruitment needs and enhance the performance of our
employees
Community Education
Enhance our brand and reputation, and raise the profile of
science, technology and engineering
 To complete one global employee engagement survey in 2014, which
will then be conducted at least every third year
 All employees to have an annual appraisal via the Croda Aspire
system by the end of 2015
 Based on 2011, increase the total time spent in community related
activity through the 1% Club by a further 20% during 2012
 Increase the number of individuals in the Group using the 1% Club
to 25% of the global workforce in 2012
 To ensure that all operations with an R&D Centre create a formal
ongoing science, technology and engineering programme with
implementation by the end of 2012
 Develop an internal Education Ambassador training programme to
underpin community education activity by the end of 2013
Innovating for a Sustainable
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Performance Management
 All regions to have a programme of local graduate and trainee
recruitment by the end of 2013
Our 2011 Performance
Over £33 million of our capital expenditure projects since 2010 deliver environmental benefit
Innovating for a Sustainable
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Our 2011 Performance
Percentage
Percentage of Renewable Content in New Products by Industry Sector
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Industry Sector
ModiSurf™
Clarity
Resistem™
NatraGem™
Perfad™ 3000 & 3050
Carbon Footprinting
Our 2011 Performance
Percentage of Employees Receiving Training by Year
4,679 1% Club hours = c. £83,800
Innovating for a Sustainable
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Over 78, 500 hours training
Total 1% Club Hours Worked in the Community and Percentage of
Employees Accessing the scheme
Innovating for a Sustainable Future
We believe we are doing the
right things…
We would like your views as
a key stakeholder