BP TN Qualifying Explanatory Statement Carbon 1 Neutrality Declaration Carbon neutrality of Castrol Bio Synthetic product range achieved by Castrol Limited in accordance with PAS 2060 at 30 th November 2018 with commitment to maintain to 30 th November 2019 for the period commencing 1 st December 2018, DNV GL certified. Signed: Date: This Qualifying Explanatory Statement (QES) contains all the required information on the carbon neutrality of Castrol Bio Synthetic product range, defined as ‘the subject’. All of the information provided within this report has been reviewed by a third party and is believed to be correct. Should any information be provided which affects the validity of the statements within this document, a revised version of the document will be subsequently issued. This report will be made available to the public upon request. Business: Castrol Issue Date: 06/02/2019 Issuing Authority: BP Target Neutral Assurance Provider: DNV GL Application Number: 2 Commitment Period: Dec 18 – Nov 19 1 Here, Carbon is used as shorthand for aggregated greenhouse gas (GHG) emissions, reported as carbon dioxide equivalents (CO 2 e). Hereafter in this report, the full term or CO 2 e is employed. A full list of GHG emissions included in the inventory is provided in Annex C of this report. 21/2/19
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BP TN Qualifying Explanatory Statement
Carbon1 Neutrality Declaration
Carbon neutrality of Castrol Bio Synthetic product range achieved by Castrol Limited in accordance with PAS 2060 at 30th November 2018 with commitment to maintain to 30th November 2019 for the period commencing 1st December 2018, DNV GL certified.
Signed:
Date:
This Qualifying Explanatory Statement (QES) contains all the required information on the carbon neutrality
of Castrol Bio Synthetic product range, defined as ‘the subject’. All of the information provided within this
report has been reviewed by a third party and is believed to be correct. Should any information be
provided which affects the validity of the statements within this document, a revised version of the
document will be subsequently issued. This report will be made available to the public upon request.
Business: Castrol
Issue Date: 06/02/2019
Issuing Authority: BP Target Neutral
Assurance Provider: DNV GL
Application Number: 2
Commitment Period: Dec 18 – Nov 19
1 Here, Carbon is used as shorthand for aggregated greenhouse gas (GHG) emissions, reported as carbon dioxide equivalents (CO2e). Hereafter in this report,
the full term or CO2e is employed. A full list of GHG emissions included in the inventory is provided in Annex C of this report.
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Contents
1. Terms and Definitions 2
2. Introduction 3
2.1 Foreword 3
2.2 General information 3
2.3 Boundaries of the Subject 4
2.4 PAS 2060 Carbon Neutrality Options 5
3. Quantification of the Carbon Footprint 5
3.1 Standard Chosen and Emissions Sources 5
3.2 Footprint 5
4. Data Methods 9
4.1 Data Sources 9
4.2 Data Quality and Uncertainties 9
4.3 Key uncertainties, assumptions, estimations and allocations 10
5. Carbon Management Plan 12
5.1 Commitment 12
5.2 Management Plan 12
6. Offset Program 16
Appendix A: Qualifying Explanatory Statement (QES) Checklist 20
Warming Potential Figures by the IPCC to account for the global warming potential of GHG emissions
Carbon
Carbon is used as shorthand for aggregated greenhouse gas (GHG) emissions, reported as
carbon dioxide equivalents (CO2e). Throughout the report, the full term (CO2e) is
employed. A full list of GHG emissions included in the inventory is provided in Annex C of
this report
Ecoinvent v3.1 Database of emission factors from the not-for-profit association, Ecoinvent, used for
Lifecycle Analysis
GHG
Greenhouse Gas refers to carbon dioxide (CO2), methane (CH4), nitrous oxide (N2O), sulfur
hexafluoride (SF6), perfluorocarbons (PFCs), and hydrofluorocarbons (HFCs). A full list of
GHG emissions included in the inventory is provided in Annex C of this report
GHGP Greenhouse Gas Protocol sets the standards to measure and report GHG emissions
GHGP Product
Standard
Greenhouse Gas Protocol Product Life Cycle Accounting and Reporting Standard. Refers to
a sub-section found in the GHG Protocol
IPCC Fifth Assessment
Report
The Intergovernmental Panel on Climate Change (IPCC) provides an international
statement on the scientific understanding of climate change
I3P-3 (for third party) The conformity assessment type as outlined in PAS2060, in this case: Independent 3P
certification conformity assessment
OEM Original Equipment/Engine Manufacturer e.g BMW
PAS 2060 Publically available Specification for the Demonstration of Carbon Neutrality. PAS 2060:14
(referenced in this document) refers to the latest 2014 version of the document
QES
The explicit declaration or claim of carbon neutrality in the form of a prescribed, publically
available statement is required, this can be issued as part of the qualifying explanatory
statement
UK Government
conversion factors for
Company Reporting
UK government database of emission factors produced by DEFRA (Department for
Environment, Food and Rural Affairs)
Carbon Credits
Carbon credits are used to offset emissions based on the principles of them being real,
measurable, permanent, additional, independently verified and unique. A commitment is
made to use carbon credits that have been validated, verified and registered under
standards endorsed by ICROA e.g. ACR, CAR, VCS, Gold Standard, ERF, JI and CDM.
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2. Introduction
2.1 Foreword
This QES demonstrates that Castrol Limited has achieved carbon neutrality for Castrol Bio Synthetic product range. This QES is in accordance with the Publically Available Specification for the Demonstration of Carbon Neutrality (PAS 2060) and is committed to being carbon neutral in accordance with PAS 2060:2014. Annex A provides a checklist of information required and the respective location within the QES.
2.2 General information
PAS 2060 Information Requirement Information as it relates to Castrol Ltd
Individual responsible for the evaluation and provision of data necessary for the substantiation of the declaration including that of preparing, substantiating, communicating and maintaining the declaration
Rachel Bradley, Global Sustainability Manager, Castrol Limited
Entity making PAS 2060 declaration Castrol Limited
Subject of the PAS 2060 declaration
Castrol Bio-Synthetic engine oils containing 25% base oil made from bio-based feedstocks:
- Magnatec Bio-Synthetic 5W-30 for the Australian market;
- Edge Bio-Synthetic 5W-30 for the Chinese market;
- Edge Bio-Synthetic 5W-30 and 0W-20 for the North American (USA and Canada) market.
Rationale for selection of the subject
The subject reflects sales of Castrol’s Bio-Synthetic engine oils to be sold in Australia, China and North America. The scope includes cradle-to-grave emissions based on the greenhouse gas (GHG) inventory carried out in accordance to the Greenhouse Gas Protocol Product Life Cycle Accounting and Reporting Standard (GHGP Product Standard).
Conformity assessment type I3P-3 Independent third party certification – Unified
Baseline date Date of first determined footprint
1st Dec 2016
Achievement period Offset of baseline/previous commitment period
1st Dec 2017 – 30th Nov 18
Commitment period Period of upcoming carbon neutrality
1st Dec 18 – 30th Nov 19
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2.3 Boundaries of the Subject
The commitment to carbon neutrality covers all activities that are material for the functionality of the
subject. Due to the market that the product is sold in, it means it has clear end-of-life processes that
make it practical to conduct ‘cradle-to-grave’ lifecycle analysis in accordance with the requirements of
the Greenhouse Gas Protocol Product Life Cycle Accounting and Reporting Standard (GHGP Product
Standard)2. The system boundary considered in assessing the carbon footprint of these products is
The entity will demonstrate carbon neutrality as set out in PAS 2060:2014. A carbon management plan
and offset options have been developed by the entity, summarised in Section 5 and Section 6 of this
report, respectively.
The baseline refers to when the carbon footprint for the subject was first determined in accordance
with PAS 2060. The footprint is reassessed at the end of each application period to verify that the
carbon management plan has achieved a reduction and to reconcile volumes from the previous
application period. Historic GHG emission reductions achieved before the commitment period are
included in the carbon management plan. They have been developed by the entity and are summarised
in Section 4 of this report.
3. Quantification of the Carbon Footprint
3.1 Standard Chosen and Emissions Sources
The GHGP Product Standard was used to quantify the GHG emissions associated with the subject.
This method was chosen as it provides an internationally-recognised approach to the calculation of
product CO2e footprints and meets the requirements of PAS 2060 for the substantiation of GHG
emissions (PAS 2060:2014 5.2.2 to 5.2.4). The product CO2e footprints have been reviewed and
assured by an independent third party (see Annex B of this report for the assurance statement).
GHG emissions that are accounted for in the study are based on the 100 year Global Warming Potential
figures published in Table 2.14 of the Intergovernmental Panel on Climate Change (IPCC) Fifth
Assessment Report (2014) and include those required by the GHGP Product Standard, which specifies
emissions to and removals from the atmosphere of: carbon dioxide (CO2), methane (CH4), nitrous
oxide (N2O), sulfur hexafluoride (SF6), perfluorocarbons (PFCs), and hydrofluorocarbons (HFCs). A full
list of GHG emissions included in the inventory is provided in Annex C of this report.
All Scope 1, 2 and 3 emissions relevant to the product are included in the carbon footprint and are
summarised in Table 3.1 below. Please note there are no Scope 1 or 2 emission sources as all blend
sites are third party. Where GHG emissions have been estimated, these have been determined based
on a conservative approach that precludes underestimation. Sources of biogenic carbon in the product
system are from the sugarcane feedstock used to manufacture the bio base oil. Emissions from
biogenic carbon are reported separately.
3.2 Footprint
The Life Cycle Analysis (LCA) conducted for the subject calculated the footprint of Castrol Bio Synthetic
can be found in Table 3.1. The sales volume for the achievement period of XXXXXXXXX an absolute
footprint of XXXXXXXXX (rounded up to the nearest tonne). The forecasted sales volumes for the
commitment period are XXXXXXXX quates to an absolute footprint of XXXXXXXX (rounded up to the
nearest tonne).
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Table 3.1: Emission profiles of the subject
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Table 3.2: Description of GHG emissions
Life Cycle Stage Description Excluded Emissions and Justification
Raw material acquisition and pre-processing
Raw material acquisition and pre-processing to produce base components for use in the transmission fluid production process. The following processes are included within the boundary of this life cycle stage. XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX
Production Processing/blending of base components (base oil and additives) to produce transmission fluids and filling these into product packaging (20 litre tin-free steel pail). The following processes are included within the boundary of this life cycle stage. XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX
Use Engine oils are used to facilitate the efficient running of vehicles. They are not typically consumed by the engine, although there is inevitably some engine oil loss through leakage or combustion. Engine oils become contaminated during use, which reduces performance, and requires them to be drained and replaced with new oil regularly. Use of engine oils includes the following:
The following processes are not included in the boundary of this life cycle stage. Capital goods and infrastructure (ie manufacture and maintenance of buildings and machinery), which are considered to be negligible in relation to one litre of engine oil. XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX XXXXXXXXXXXXXXXXXXXXXXX
End-of-life At end-of-life, used engine oils can be re-refined, incinerated for energy recovery, incinerated without energy recovery or landfilled. The following processes are included in the boundary of this life cycle stage:
In line with the recycled content method (chapter 9 of GHG Product Protocol) the following process is not included in the boundary of this life cycle stage: • XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX
XXXXXXXXXXXXX
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4. Data Methods
4.1 Data Sources
Data used for the study include a mix of primary and secondary sourced data. Where possible, primary data
were sourced. Secondary data were sourced only where primary data were not available or where the relative
impact on the carbon footprint result was nominal.
Primary data were sourced for all Castrol activities, comprising: product specifications and formulations;
operational data at blending sites; production output from blending sites; sales data in market countries;
packaging material inputs; incoming material transport distances; and distribution modes of transport. Primary
data were also sought from a number of Castrol’s suppliers for base oil, additives and primary packaging.
Primary data were received in relation to the production of both fossil-based and bio-based base oils.
Distribution routes and distances were estimated based on the location of the blending site where a product is
blended and the location of Castrol warehouse facilities in the market country. Secondary data were sourced
to support use and disposal scenarios and for all other activities associated with the life cycle of engine oil,
comprising: GHG emission factors, which were sourced from reputable published databases; secondary and
ancillary packaging materials; and average country specific waste management rates for used oil and packaging
materials.
4.2 Data Quality and Uncertainties
All data points (primary and secondary) were assessed for data quality to appraise representativeness in relation
to – technology, geography, time period, completeness and reliability – and assigned a score on a scale of 1 to 4
(1 being poor; 4 being good). A single data quality score was calculated as an equally weighted average of all
four representativeness categories. The quality of the overall dataset was appraised as a percentage of the total
carbon footprint result which relies on data that is appraised as ‘poor’ (weighted average score <2.5) as follows:
Separate data quality assessments were undertaken for activity data and emission factors. The following
provides an overview of the Activity Data Quality Appraisal:
The following provides an overview of the Emission Factor Data Quality Appraisal:
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End-of-life management data are a key area of uncertainty in the data used in the product carbon footprint.
Used oil management methods and rates are assumed, based on national or regional averages, and consider all
of the used oil collected (ie not just passenger car engine oil). However, significant local variations are possible.
4.3 Key uncertainties, assumptions, estimations and allocations
All assumptions made in the quantification of GHG emissions of the subject are reviewed by assurance providers
through the third party verification process (see Annex B of this report). The most significant assumptions made
during the assessment are described below:
Use profile uncertainties
Engine oils are not intended to be consumed by the vehicle engine. However, there is inevitable leakage of the
product, as well as unintended combustion with fuel in the engine. Information relating to the quantity of engine
oil that leaks or is burned with fuel is limited. Therefore, in order to remain conservative, it is assumed that
100% of engine oil that is lost is combusted without energy recovery.
Outgoing transport XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX