Fundamentals factsheet: Sustainable sourcing & suppliers partnershipResponsibility acrossthe supply chainOverview
Croda uses smart science to turn bio-based materials
into innovative ingredients that improve lives. Sourcing
these materials in a genuinely sustainable way is a
critical part of what we do, and an increasingly important
requirement of our customers and consumers alike.
We believe that using natural resources brings a responsibility to ensure there are no
associated negative social or environmental impacts. It also provides opportunities toadvocate for, and contribute to, positive change. This is only be possible by gaining
an intimate knowledge of your supply chains, collaborating with all parties, andensuring complete transparency and traceability.

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Last updated: 17/03/2023

Confirming environmental integrity and social accountability is an increasing
prerequisite in our upstream supply chains. As a result, we work proactively
with our suppliers to encourage, influence and assist them in improving theirown sustainability practices. This lies at the heart of the United Nations Sustainable
Development Goal 17, Partnership for the Goals, where effective collaboration in
the supply chain results in a greater positive impact. Our selection of global suppliers
is based on collaboration and on aligning our goals, including Science Based Targets(SBTs), new sustainable innovations, public commitments for carbon reduction, andthe supplier’s understanding of their overall impacts on nature and the environment.

Targets

Sustainablesourcing &suppliers
partnership• Ensure all key
suppliers are
responding toEcoVadis andengaging withCroda to improvepractices.

We will ensure that all
our key suppliers areoperating safely,ethically andresponsibly, and will
promote the equitable
sharing of benefits
within the supply chain.

StatusKey
Target on track
Target requires additional focus

Milestones and metrics• By the end of 2024, all key suppliers will berequired to achieve a minimum of the averagescore from EcoVadis (or equivalent) or will havean action plan with timelines to close gaps.
• By the end of 2024, key suppliers representing
at least 50% of our raw material volumes will
be required to sign up publicly to the Science
Based targets initiative (SBTi) or equivalentcarbon reduction targets.
• By the end of 2024, suppliers of crop-based
raw materials will be required to provide supply
chain transparency in a fully traceable andcertified sustainable way.

* These numbers are excluding PTIC, Avanti, Alban Muller, Iberchem and Sipo.
1Croda International Plc Factsheet

12.6, 12.7 and 17

Performance highlights

Progress on our Commitment
Objectives

SDG targets

Status 2022 progress• Key suppliers representing 81%* of targeted spend
have been evaluated using EcoVadis and corrective
actions have been assigned and prioritized.
• Key suppliers representing 45% of our raw materials
volumes have made public commitments to carbon
reduction with more than half of these suppliers,
24% of raw materials volume, signed up publicly
to SBTi.
• Supplier requirements are clearly outlined within
the 2022 Croda Supplier Code of Conduct andapproximately 37% of crop based raw materials
volume is certified sustainable with mapped
supply chains.

RSPO certified​

89.3%of palm derivatives in 2022

SPI score

87/100vs average of 52

Total volume of palm-based
raw materials

97%
covered by 2021 supply chain mappingFundamentals factsheet: Sustainable sourcing & suppliers partnershipResponsibility acrossthe supply chain continued
Our Performance:
During 2022, we further revised our Supplier Code of Conduct providing yet moredetails on our preferred supplier selection and introducing our Supplier Scorecard
with our requirements emphasising collaboration and alignment with our goals.
The introduction of our Supplier Scorecard provides clear guidance on how ourupstream suppliers can proactively contribute to our sustainability goals. The
key scorecard metrics combine suppliers’ public commitments with third party
assessment to synchronize SDG contribution in upstream supply chains withdecarbonisation, halting biodiversity loss, promoting social accountability, andrestoring nature

Palm derivatives:
Our use of palm-derived raw materials is supported by RSPO supply chain
certification, supply chain mapping and transparency. Working with ASD, our 2021
supply chain mapping covered 97% of our total volumes of palm-based raw
materials (read more in SR2022).
In conjunction with ASD, we promote transparency, risk management andengagement, to create a palm derivatives supply chain that is free from deforestation,respects human rights and supports local livelihoods. In March 2022, the launch of
the first ASD impact Fund – Kaleka (previously Inobu) Mosaik initiative – developedin partnership with Tides Foundation with the contribution of Croda and five other
ASD members – represented a clear tangible milestone, focused on restoring thelandscape and driving economic growth in a priority region that has strong chain links
and systemic environmental and human rights challenges. (read more in SR2022)
Our revised Supplier code of conduct provides greater explicit requirements
coinciding with the publication of our Grievance policy in the Palm Oil Derivatives
sector, where we define a grievance related to palm oil as any complaint, allegationor concern we identify that is inconsistent with the Croda Supplier code of Conduct,
our Responsible Palm Sourcing Policy or any relevant Croda corporate policies
on governance and human rights. Grievances may cover both environmental andsocial concerns.
2Croda International Plc Factsheet

SPI Palm Index:
The Sustainable Palm Index (SPI) is an evaluation scorecard for suppliers ofpalm-based derivatives, aimed at assessing the level of commitments, processes
and achievements in terms of sustainable sourcing practices such as NDPEprinciples. The SPI is a self-disclosure questionnaire with independent verification
based on desk information. We participated in the SPI assessment on our palm
oil derivative volumes and actions taken in 2021, confirming compliance to the SPI.
Our SPI score increased to 87/100 (+2 ppts) despite more demanding criteria,against the average score of 52.

Risk prioritization & Dynamic Monitoring:
In 2022, together with ASD, Croda contributed to a pilot satellite monitoring to create
deforestation-free methodology to include mill catchment areas, forest definitions andcut-off dates. The intended output will be confirmation of the mills, refineries andplantations that are free of deforestation.
Besides palm, Croda is actively engaged with:• Together for Sustainability (TfS) consortium: in 2022 we have assumed the roleof Industry Champion for Personal Care and Home Care to act as an ambassador
and promote TfS Product Carbon Footprint (PCF) Guidelines initiative as the global
standard for these industries,• the International Sustainability and Carbon Certification (ISCC): our sites
in Chocques and Singapore working to achieve ISCC+ certification status,• the Union for Ethical Bio-Trade (UEBT) through Sederma for Beauty Actives
with 12 field verifications performed by UEBT.
Throughout 2022, we continued to engage in forums and industry meetings, mostnotably: participation in industry discussions in establishing due diligence legislation
for deforestation-free supply chains and strong support and advocacy for ASD
membership via global webinars.
Scoring B in our 2022 CDP Forest return reflects our ongoing commitment
to proactively manage deforestation-free supply chains.

Last updated: 17/03/2023

Relevant policies• Supplier Code of Conduct (newrevision)• Statement on Grievances in thePalm Sector / Policy in the Palm Oil
Derivatives Sector (new)• Responsible Palm Sourcing Policy• Crop-based Raw Material Policy

Other docs:• Sustainable Palm Oil Statement• Palm Substitution• ASD Progress Report