Croda International Plc (CRDA) Earnings Call Transcript & Summary

Hello. I'm David Bishop, IR Director at Croda. Thank you for joining us today for the launch of our 2020 Sustainability Report. Today's event will last for a maximum of 90 minutes and we'll dedicate half the time to Q&A. [Operator Instructions] I'd now like to hand over to Steve Foots, Group Chief Executive, to introduce the event.

Good afternoon, everybody, and thanks for finding the time to join us for the launch of our Sustainability Report. You'll have heard me say a number of times now that sustainability will be our single biggest driver of Croda's strategy for this decade to come. Our markets are changing more rapidly than I've seen them in my 30 years in the industry. And we've chosen to be a more responsible business because it is the right thing to do for our employees, society and our planet. And I've spoken before about the importance we placed on treating all stakeholders fairly throughout the COVID pandemic. But this also underpins the way we think commercially. Consumer demand is gravitating more and more towards products sourced from natural ingredients. Increasing levels of regulation to protect our planet are forcing our customers to find alternative ways to enhance their own sustainability credentials. This is creating many new opportunities for the group. It is for these reasons and more that sustainability has been and will remain right at the heart of our long-term strategy. And we believe that sustainability, together with innovation, will be a fundamental driver of our growth. We've made strong progress with our sustainability agenda over the last decade. And in 2020, we put targets in place to accelerate our efforts. We launched ambitious new targets to be climate, land and people positive by 2030, living up to our purpose. It's a restorative strategy, giving more back than we're taking away. And despite the pandemic, we've made a strong start on the journey to become the most sustainable supplier of innovative ingredients, which will be a key focus of today's presentation. For the first time, we're also publishing interim goals against which we'll measure progress in our company-wide commitment to have a positive impact on some of the world's biggest challenges. Turning to the next slide, with sustainability touching every part of our business, it's not surprising that our strategy is led and delivered by employees across the group, enabled by the specialists in our sustainability team. Our Board and Executive Committee are ultimately responsible for the success of this strategy, and we regularly review nonfinancial metrics alongside the company's financial performance to ensure we're on track. Croda is one of a minority of companies to have integrated sustainability KPIs into our remuneration policy. Both emissions and land use reduction targets are now embedded in the incentive plans of 70 senior leaders across the group. In 2020, we established a Sustainability Committee to lead day-to-day delivery of our KPIs and help with strategy development, with each committee member taking personal responsibility for a specific 2030 target. Key members of the team have joined us today. And you'll see from the pictures, there are some familiar faces to you and some new faces as well, which is always good for us to show you who they are and where they come from. Stuart Arnott, President of Sustainability, who chairs the Sustainability Committee and is a full-time member of the Executive Committee. He'll lead today with his sustainability hat on. We've also recently recruited Michelle Fargen as Global Head of Procurement and Sustainability Sourcing. Michelle's role is to influence and assist our suppliers to improve their sustainability practices and ensure full supply chain transparency, becoming ever more important to us. Only in this way can we achieve our 2030 targets. This is also at the very heart of the UN Sustainable Development Goal 17, a partnership for goals where effective collaboration with all stakeholders and particularly suppliers results in a greater positive impact on the planet. Mark Robinson is an executive committee member as President of Global Operations. He is responsible for health, safety and environmental stewardship and leads our program to reduce Croda's emissions. So do spend some time asking questions on him. David Cherry runs our Crop Protection business and leads delivery of our land-positive commitments. HR Director, Tracy Sheedy, is a member of the Executive Committee and drives progress and commitments to gender balance, fair income, employee well-being and knowledge management. And finally, Anthony Fitzpatrick, another Executive Committee member, is President of Performance Technologies, amongst other things, is the executive sponsor of the Croda Foundation. We look forward to telling you more about this later in the presentation. So I'll now hand over to Stuart to close out the 2015 to '20 targets and briefly remind you about our key elements of our sustainability strategy. Stuart, over to you.

Stuart, your microphone is muted.

Thank you, David. How is that?

That works.

Sorry, everybody. So thank you, Steve. 2020 was actually an overlap year for us. By this, I mean it was the last year of the 5-year targets that we set in 2015. But it was also the first year of the strategy that was set for this decade, which we call our commitment. And if you attended the Investor Day last October, you might recall that I concluded my piece by saying that we will succeed because of the Croda difference and that we have a strong track record of consistent delivery and performance. And it's here I'd like to start. A quick look in the rearview mirror at our achievements over the last 5 years. With 8 targets here, we significantly bettered 6 of them, and we're close to achieving the other 2. We significantly improved energy and emissions intensity and 1/4 of our fuel mix is now nonfossil. We surpassed our targets on VOC emissions, water use and waste to landfill. Our injury rate is now in the top quartile and we've converted 85% of our palm derivatives to certified sustainable. So the overall message here -- messages here are: firstly, setting bold, sustainability focus targets is nothing new to Croda. Secondly, setting targets is one thing, but achieving them is something else. And I hope you'll agree, the numbers on this slide speak for themselves and reinforce our belief that we delivered on our promise. And thirdly, with the right mindset, it really is possible to decouple growth and environmental impact. Now as proud as we were about our sustainability journey over the last 10 years or so, we knew that we needed to change gear and lift our ambition even further for the decade ahead. As you all know, our strategy is guided by the United Nations Sustainable Development Goals. These require transformational change, doing more of the same but a bit faster is simply not good enough. And it's this mantra that has informed our strategy. Our aim is to be the most sustainable supplier of innovative ingredients, helping to provide solutions to some of the world's biggest challenges. Towards these challenges are in 3 areas: the climate crisis, the pressures on nature and loss of biodiversity and the increasing social inequality. So what can a specialty ingredient company do to address these challenges? Well, it can adopt a restorative strategy, as Steve said, one that puts back more than it takes, and that's exactly what we've done. Our commitment for this decade is therefore to be climate, land and people positive. And in short, as simple as I can put it, we'll save more carbon than we use, we'll save more land than we use, and we will improve millions of lives and thus, make a positive contribution to society. So our picture here shows the essential ingredients. In the center, you see the climate, land and people-positive targets. These are all surrounded by a number of material areas in our business, which we call fundamentals. And the whole is surrounded by the UN SDGs, demonstrating complete alignment. Now as a society, we're just over 1/3 of the way through the United Nation's 15-year strategy to achieve the SDGs, Sustainable Development Goals. Progress worldwide is not fast enough in many areas. There are some things that have actually gone backwards as a result of COVID. So it really is the decade of action where deeds need to match the words. And to instill our own sense of urgency this year, we're launching interim milestones for 2024 against our commitments. These are near enough to provoke action and behavior change but far enough away for us to be able to make meaningful progress. Those related to our fundamentals can be found in this year's Sustainability Report, but let me quickly take you through some of the climate, land and people. So in 4 years' time, we'll have reduced scope 1 and 2 emissions by 25%, proven that our products are saving 2 million tonnes of carbon dioxide equivalent and have moved our organic proportion of our raw materials to 71% bio-based. We'll have saved an additional 80,000 hectares of land and brought 10 technological breakthroughs to market. We'll have developed novel sunscreens to help protect 1 million more lives from skin cancer, and our health care technologies will be in 10 clinical Phase III trials aimed at vaccination against priority infectious diseases. And last but not least, we will have made excellent progress towards our gender balance in leadership positions in our own organization. So in summary, fantastic delivery over the last 5 years, a bold strategy for this decade and a set of interim milestones that keep us honest. Now we don't often make a song and dance about our achievements. But having set a goal to be a leader in our space, it goes without saying that this requires some external validation. Here you see some of our recent achievements. EcoVadis have now rated over 75,000 companies, and we are in the top 1% recognized here by their Platinum Award. We were voted Britain's Most Admired Chemical Company for the fourth year running this year. We entered the FTSE4Good UK 50 Index at the end of the year, maintained our AAA rating for MSCI and scored A- in CDP's Supplier Engagement recently. Very recently, we're particularly proud to be ranked by Barron's as the Most Sustainable Company Outside of the U.S. It's very rewarding to know that we are ahead of companies we really admire for their leadership and sustainability such as Unilever and L'oreal. We've achieved a lot in 2020, and you'll be able to read all about the detail in the Sustainability Report. But as Steve said, today, we decided not to field our sustainability team and instead, we'll hear from some of my colleagues in the business. These are the people that are leading the charge and really making it happen. I'm delighted, therefore, to hand over to Mark, who will give you more detail on climate positive.

Thank you, Stuart. Sustainability is not something new to the company or to me personally. My journey with reducing carbon started in my very first job with Croda as a growings engineer, improving energy efficiency. And with the whole team, I spent a decade halving energy consumption then spearheading the installation of a 2-megawatt wind turbine, which displaced half of the site's electricity consumption. And that was a very radical thing to do way back in 2006, when there were not many wind turbines around, especially near a city center. And I can also point to many of the Croda people who have been on the same journey as I am now, backed by the company's leadership and resources. And it's why 25% of our energy comes from renewable sources. We have committed to science-based targets and a business ambition to support limiting global temperature rise to no more than 1.5 degrees. Our targets are currently being validated by the Science Based Targets initiative and with only 2 other companies in the chemical sector with a similar level of ambition, we know this is a leading position. And it's not just our science-based targets ambition that is leading. In 2020, the bio-based or renewable content of our raw materials reached an all-time high of 67%. I just see this as an extension of what we've been doing already, albeit with much bigger ambition as we must approximately halve our scope 1 and 2 emissions by 2030 and are committed to being net zero by 2050. It's the biggest change we've ever faced, and I'm not afraid to say it's going to be difficult. But I also know it's possible. The reason I say it's impossible -- it is possible is we spent the last year developing decarbonization road maps for our 10 highest energy-using sites. These sites account for 90% of our current emissions. So decarbonizing them will make a big difference. And I've really been encouraged by the outputs. To achieve this, we first have to define a methodology, which involves activities such as collecting information on energy use, energy waste, surveying local energy markets to understand where there might be alternative fuel sources and then identify and quantify all of those opportunities with an aim to either substitute, reduce or reuse our energy. We're in the process of collecting all the individual site maps into a global road map but early feedback suggests we can achieve our terms on those emission. Now it's a solid start, but there does need to be more work on these road maps to secure achieving the carbon goal, so there are further roadmap iterations and plans to make sure we succeed. Some of the road map activity is already coming to life. In the U.K. alone, our whole site is working on a biomass boiler to displace 60% natural gas burned on the site. Our Rawcliffe Bridge site are installing a zero-carbon capacity expansion to make more of our range of mild surfactants using new continuous technology connected to digital tools and depots. And our [ Deaton ] site is radically overhauling the process to manufacture biopolymers, which is halving energy consumption. Our regular capital expenditure will have an increased focus on decarbonization in the future, particularly as there are commercial benefits to us helping to reduce our customers' scope 3 emissions. And to drive the right behavior, we introduced an internal shadow carbon price in our capital investments approval process to demonstrate the financial value associated with the carbon impact of our projects. So to finish, our plans for 2021 involve incorporating the learning from our 2020 road map activity into producing road maps for the rest of our manufacturing sites, our market sectors and also many of our nonmanufacturing sites. And for those sites that already have road maps in place, we will continue turning those ideas into execution plans. I'll now hand over to Dave Cherry, Managing Director of Croda's Crop Protection business.

Thanks, Mark, and hello, everybody. And just a prompt, please remember to -- you can ask questions throughout. And if you use your Q&A box on the screen, please do that throughout the presentation. So as a reminder for you, land positive, that means that we're going to make products that enable more lands to be saved than we used to grow our raw materials. And we're going to use our smart science to create breakthrough innovations that help create more sustainable agriculture. And we've made great progress in both of these areas this year. In land use, we've made strides in being able to calculate our footprint. And that enables us to set more challenging targets. More on that in a moment. And as we spoke to you about in October, we've had our first breakthrough innovation. And that's to create market-leading microplastic-free seed coatings. And these help our customers comply with the upcoming legislative changes and reduce environmental impact. And you can read about that in the Sustainability Report. Also in the report, there are details of our Syngenta Partnership Award, and that's for our work with Syngenta across innovation and sustainability. And we believe that collaboration with partners like Syngenta in our value chain is essential for achieving our sustainability goals, and it's very much aligned with the UN SDG 17. But let's focus on land area, where our approach is restorative. We set a target to save more land through the use of our agricultural technologies than we use to grow our bio-based raw materials. And the great news is that we've achieved that target. So we're already land net zero in 2020. And that's fantastic, but we want now to go further. We're announcing our new stretching ambition that for every additional hectare of land we use to grow our raw materials this decade, we're going to save double that land through the use of agricultural technologies. And no matter what, it's going to be a minimum of 200,000 hectares extra that we want to save. And that means by 2030, we'll be saving the equivalent of 1,000 football pitches of land a day. So truly restorative. Now you may be thinking, how do we calculate these numbers? How do we know how much land we saved or used? And how can you validate that we are land net zero? So let me go through that for you now. Land use is relatively straightforward. We know the volume of crop-based raw materials we buy, and we know the bio-based content and the yields of crops. So we can work out the land required to grow them. And while there's a long list, 6 key crop-based raw materials are most significant for us. But let's think about the technology that we provide to our customers. How do they save land? And how do we calculate that? Well, it's more involved, but again, there are some steps we can go through. We know the volume we sell. To link that to the land area we save, we need 2 extra pieces of information. The first of these is the yield impact. So how much does that product improve the yield of the crop? And the second is the use rate. How much do we use of that product per hectare in the formulation? And with this information, we've a reliable and consistent way to calculate land saved. And we're collaborating with external parties to have this validated. Now not all products have the same yield effect. And measuring that effect is probably the key element for our biostimulant range. The yield effect is large and directly measurable through repeatable large field trials. So these products have a disproportionate effect in the numbers. By contrast, our formulation aids and adjuvants, they have a much smaller impact. Our seed coatings from Incotec also have an effect by improving the flow and plantability of seeds, thus ensuring that across the field, the optimum seed distribution is achieved and yield is maximized. But, of course, however we measure, the key thing is to do it consistently and to use that to drive improvement and positive change. And it helps us focus on creating products that do provide yield benefits, and it enables us to have the real-world impact that we're having. Let me hand over now to Tracy, who's going to talk about people positive.

Thanks, Dave. Our people-positive targets are wide-ranging and includes targets relating to our own employees as well as more broadly, the communities that we serve. We will focus today on diversity and inclusion and the establishment of the Croda Foundation. Before we do this, I wanted to briefly remind you of our external targets relating to the development of vaccines and protection of lives through our novel sun care products. As you can see, we have ambitious targets to increase our contribution to the global vaccine pipeline and by the end of 2024, to protect an additional 1 million lives through our novel sun care products. You have already heard much about these at the Capital Markets Day last year and during our results update early this month. 2020 progress on both of these can also be found in our 2020 Sustainability Report. For now though, we're going to talk about D&I. We've seen great early progress towards our gender diversity targets, including a 40% increase in the number of women in direct manufacturing roles since 2018 and a 19% increase in the number of women leadership roles in 2020. We have established KPIs and now intermediate milestones to help us to achieve our commitment to gender balance in leadership positions by 2030. These KPIs will be extended in the future to include other aspects of diversity, as we further develop our thinking in these areas. Whilst our attention to date has largely been on gender, we are also putting more focus on race and ethnicity. As a Board and Executive Committee, we attended awareness sessions run by John Amaechi, and following these discussions, the Board has updated their D&I policy and committed to appoint at least 1 ethnically diverse director to the Board by the end of 2021. We have also agreed to be a signatory to the "If Not Now, When?" campaign, committing to take sustainable actions on black inclusion in U.K. businesses signed so far by 80 FTSE CEOs. We have a global D&I steering committee to help guide our thinking and are establishing regional subgroups. We are also in the process of collecting diversity data to help inform our decision-making. This is a challenge because we are a global organization and must navigate through many complex country data privacy laws. We have developed a more inclusive approach to recruitment, including the implementation of balance shortlists. These currently focus on gender targets but will be expanded to include other aspects of diversity. We are also focusing on how we advertise jobs to ensure that people from underrepresented groups within our businesses are attracted to apply. And all of this is supported by a focus on D&I in our communications and our learning and development programs. Like many businesses, there is a lot for us to do but we have made a good start and have confidence we will meet our targets. I'll now hand over to Anthony to talk about the Croda Foundation.

Thank you, Tracy. I'm delighted to be able to talk to everybody today about the foundation as the executive sponsor. I was honored to be asked to lead its creation. And let me start by saying that being philanthropic and supporting our local communities is nothing new to Croda. It's something we've been doing for many, many years. Some examples from around the world include our 1% Club, our STEM outreach program in schools and especially our local acts of kindness. The onscreen example we have here is from our Campinas, Brazil facility where in response to COVID-19, the team unilaterally went out and essentially put together packages for the local favelas. You can read much more about these examples in our Sustainability Report. In creating the foundation, we've tried to be very careful to make sure that it sits alongside all of these initiatives, which are fundamental to our business, and we will carry on with those. What we've also been doing in setting up the foundation is to make sure that it sits alongside this very well, not only with our purpose, but to make sure that connects and aligns with the UN SDGs. So let me give you some details. So the purpose of the foundation is to use Croda's science and talents and to improve the communities in which we operate all around the world. The ideas will all come from Croda, and the foundation itself will also be funded 100% by Croda. And that can take many forms. It has capital, it has access to know-how, to people, to time and resources that we can provide. And our goal is to permanently improve 1 million lives worldwide. Let me be clear, this is in addition to the impact our business already has on improving lives through some of our initiatives with things like vaccines and sun care, et cetera. The foundation has been incorporated as a charitable trust in the U.K. That's a global initiative. I'm delighted to be able to announce that Nigel Turner has accepted the role of Chair of Trustees. Nigel was a main Board Director of Croda for many years and understands what it is that drives us and how we behave and how we act. So he's a wonderful addition to this effort. We've also hired Rommel Moseley, who joins us with extensive charitable experience. He joined us from the Thomson Reuters Foundation, and he'll be an Executive Director for the foundation. So throughout 2021, we're going to put in together some milestones, and there's some plumbing and admin we need to do for the foundation. But what's interesting is we've already got a wonderful pipeline of exciting ideas, all of which we know will make a real difference in the backbone for the foundation for the future. So with that, let me pass back to Stuart.

Thanks, Anthony. So I said earlier that the fundamentals involves a number of material areas of our business is what really holds it all together and gives our social license to operate. And broadly speaking, it covers the environment, labor and human rights, ethics and sustainable fulfillment. We're aiming for excellence here too and have set stretching milestones that you can read about in the Sustainability Report. Sustainable procurement is something we've not talked about much in the past, so we're highlighting it here and Michelle will cover this. But before I hand over to her, let me pull out 1 or 2 highlights from 2020. We've partnered with the Fair Wage Network and are now assessing that every permanent and temporary employee is paid the equivalent of living wage. We set a global initiative to improve our Right First Time rates, and we achieved a 1 percentage point improvement during the year, which is a fantastic achievement. And whilst we're happy to have peer reviewed 17 process risk reviews of our high-hazard processes, we're much less happy about how we infringed our ethylene oxide emissions earlier at this point. Given the importance of this and the fact that we've already had a few questions, I'd like to give an overview and put some context around it. So the wider context here is that there are around 115 facilities in the U.S. with ethylene oxide emissions. And in 2019, our site in Delaware was responsible for just over 1% of the total emissions in the United States. And we expect the data will show that that's lower still when the 2020 figures are published, given the investment that we made recently. And over the last 4 years, we've invested $15 million at the site to reduce emissions by 99%. This was proactive and voluntary. There was no regulatory requirement to do so. And you can see from this chart that our emissions have been significantly lower than the permitted demand. In actual fact, the local regulator has followed our reduction by timing the permitted volume. So now on to the permit violation. We were required to test the emissions from our new ECO plant 6 months after commissioning, which is standard practice. The tests show that the scrubber, the main scrubber was not functioning as intended. And separately, a vent pipe from a column used for start-up only shouldn't have actually been connected to the scrubber. This was a design oversight. Important to note, though, that whilst we did breach our consent for this particular unit, our emissions remain significantly below the permitted amount on the site as a whole. That said, we acted rapidly and have since made modifications to the satisfaction of the authorities and have resumed production. The emissions were tested again in the presence of the Environment Protection Agency at 30x lower than the limit of that unit. So in summary, we do have an excellent track record of voluntarily reducing emissions and always been below the permitted amount. The abatement equipment on the ECO plant was found to be underperforming when it was first tested, and we quickly made modifications to ensure the emissions are compliant and minimized. So with all that said, I'd like to hand over to Michelle who will talk about another crucial part of our fundamentals, sustainable procurement.

Thank you. UN SDG 17 Partnership for Goals is a critical component of our procurement activities. And in working more closely with our suppliers, service partners and supply chain partners, we will gain the greatest positive impact. We were able to accomplish a lot of great things in the past year. We now have completed EcoVadis assessments for 199 suppliers, representing 50% of our total spend. These assessments give us full transparency into the suppliers' progress against a wide range of sustainability topics. As our next steps, we will reach more suppliers and work with those who do not achieve at least an average score to help them improve performance. In December, we issued a new supplier code of conduct to all global suppliers. This code of conduct highlights our sustainability objectives and the key principles that are required to do business with Croda. We've been in discussions with Together for Sustainability regarding a partnership with Croda for a few years. It's a great network of chief procurement officers from 29 chemical companies who are working together to maximize sustainable sourcing. Now that Croda has a CPO in place, which is me, we've joined TFS as their 30th member earlier this month. We've worked very hard to move palm derivatives purchasing to fully RSPO-certified supply chains. During 2020, 85% of our palm derivatives volume and 99% of our sites which use palm derivatives were certified. By the end of 2020, we've addressed the remaining non-RSPO supply chains and we are also working with our joint venture in China, Croda Sipo, to convert their volume as well. To continue this great work, we have set some initial milestones to enable Croda to achieve our 2030 commitments. And by 2024, we expect to have all key suppliers achieving an average EcoVadis score or we will work with those suppliers to prepare an action plan to address their gaps. We expect to have key suppliers representing at least 50% of our raw material spend to make public commitments to carbon reduction targets. This is a critical step to enable us to reduce our scope 3 emissions and will be a requirement in our supplier selection process. To continue the great work we have done with our palm derivatives purchasing, we expect suppliers of all crop-based raw materials to provide us with fully certified supply chain transparency. This will also be a requirement in our supplier selection process. I'd now like to hand it back to Steve to wrap up with an overview of how this all comes together in our vision for 2030.

Thanks, Michelle, and thanks to everybody else for presenting as well too. Hopefully, we've given you a taste of the tangible progress that we've made during 2020. And I encourage you all to have a good read through the Sustainability Report, definitely worth a read. This year, we've clearly defined interim milestones embedded in remuneration so that we and you can track our progress. We've also put decarbonization road maps in place at our biggest sites to help drive positive results. Our 2030 vision drives us to do more, faster in this, the United Nations Decade of Action. And we've imagined how achieving our climate, land and people goals will improve lives across the world in 2030. If you just look at the slides and some of the numbers are quite staggering. The use of our products will avoid 4 million tonnes of carbon dioxide per year, equivalent to removing the emissions associated with 1 coal-fired power plant for the whole year. We'll be saving 100,000 tonnes of scope 1 and 2 emissions per year, equivalent to removing more than 20,000 vehicles from the road. The additional 200,000 hectares of land saved through our crop technologies will be enough to support more than 300,000 people's needs based on today's land use. So there's some big numbers there, and we only feel like we're starting that journey. And as well as achieving our people positive commitments for vaccines and sun protection, the Croda Foundation will have improved the lives of over 1 million people by funding projects in local communities connected to our smart science. So there's a huge amount of progress, a lot to do, and I believe that our planet and society will be a better place by 2030 as a result of Croda's activities. Let me stop there and let me and the panel take your questions now. Thank you.

Thank you, Steve. [Operator Instructions] As well as the speaker from today's event, we're also joined by Jez Maiden, CFO, and key members of the sustainability team, Julia and Chris. I'll kick off with a couple of questions from the climate-positive section of the presentation. The first one to Mark is how reliant are you on carbon net offsets to reach your science-based targets?

The short answer to that question is we're not. The mission as far as I'm concerned is around technology. And to that end, we've had a team of scientists and engineers dedicated to that topic for several years now. Maybe I can just give you an example. But in my part of the presentation, I talked about our range of mild surfactants where we're just about to expand capacity using new continuous technology. That's currently going in the batch process. But in working up, proving the concept and then moving into the process design for continuous technology, we identified a way to reduce the energy consumption of the existing batch process by double digit. So we've made benefits to the existing process. We're expanding to zero carbon, but then it goes beyond that. So then what we're looking for is, well, what's the next-generation route to manufacture that after this technology? And to that end, we've got collaborations running with external companies as to finding a nonchemical biotechnology route to manufacturing those products. So we're thinking about the investments after the next investments. Now while that might not have a significant step change in our scope 1 and 2 emissions because we do it right now, it will have a benefit in the raw materials that we use and ultimately, the scope 3 carbons in -- the scope 3 carbon emissions in supply chains and manufacturing that product. And that's just one product that we have talked about. There are multiple other product groups where we've got these phased investment plans over the next decade and beyond.

Thank you, Mark. The second question on climate positive comes from Georgina at Goldman Sachs. Thanks for joining us this afternoon. Do you see any proportion of Croda's fossil-derived raw material basket that cannot be converted to renewable in the long term? Mark, do you want to kick us off? And then maybe Chris Sayner can come in with some further detail?

Yes. So there are -- in our technology road maps, a bit similar to the one I just described earlier, we have plans to migrate away from chemical to biotechnology processes. I think Chris is probably better placed to talk about the current full range of things that we do and our ability to migrate away from petrol base.

Thanks, Mark. When we look at the European chemical industry, which is essentially less than 10% bio-based and aspires to achieving 25% bio-based raw material footprint by 2030, I mean, we've set our target at 3x that at 75%. So we already have something of a head start at 67% last year. The point I would make is that we have our published target, aspiring to move to 75%. And I can say that is having the desired effect of being something of a magnet for raw material suppliers who have bio-based offerings. And I would just make a distinction between drop-in bio-based replacements and bio-based replacements to raw materials, which involve some potential reformulation. But the big difference is we have a published target to increase, which sets us apart from many of our peer group. And in product development, in our innovation space, we won't automatically default to the standard petrochemical raw material that we may have historically used. We will actively seek out the bio-based alternatives. So we've set an aggressive target, but we have every confidence in meeting that. In the long term, are there raw materials that we might be able to replace? Yes, possibly. But bio-based alternatives are becoming available all the time.

Thanks, Chris. A couple on land positive that have come in over my email. The first one, a few other companies talk about land use. Why has Croda made being land positive such an important goal?

David, let me take that one then. I mean, so nice question on that. For us, the pressure on nature and biodiversity is something that we think should concern everybody. It's just as big a problem as the climate crisis. And we welcome the development of the science-based targets in this area. Our position is as a responsible company that is using land to grow raw materials, we felt just as a -- on a philosophical level, we should save more land than we use. And that's in keeping with being positive, putting back more than we take out. And that was at the heart of our ambition when we set the commitment.

Thank you, Dave. And as a follow-up, it seems like you get your land -- you've achieved your land area target very quickly. Did you get it wrong? And how confident are you about the new target that you've set?

I suppose the problem was in when we set off, we didn't know what the starting point was. We could estimate our land use, but we never actually tried to measure land saved before. So we've had to spend time working that out, refining our understanding of land, safe working calculations out. What we discovered was that in 2019, which was our baseline year, we used a little bit more land than we saved. But through our efforts to continually develop more yield-saving products, in 2020, we've got more land saved. We've moved into the land-positive area. And that's something we're really proud about. So from that point, we can now -- we understand more, we can now set the stretching target. So the new target is that 2 for 1 that I described. For every extra hectare we use, we're going to save double that, with an absolute minimum of 200,000. And that's linked as well to the interim target we've set of 80,000 hectares additional saved by 2024. So yes, we're learning all the time and certainly trying to set stretching targets that make us restorative.

Thank you, Dave. Moving on to people positive. The first one, what percentage of Croda workforce own shares? And how do you plan to enhance that in the coming years? I think that's one for the HR Director. Tracy, please?

Thanks, Dave. So we've got share ownership around 80% across our various share plans, which we operate both in the U.K. and internationally. In terms of how we're planning to increase that, we are proud today to launch a new reward program called the 10-share plan. This plan is linked to our global senior bonus plan. And basically, what we're saying is that if the bonus plan for our top 450 employees pays in any year, then all of the employees that are not eligible for that bonus, which is the vast majority of our employees, will receive 10 shares, 10 Croda shares, or the equivalent in cash. We're hoping that this is going to be an ongoing plan that we're going to have it each year. So as long as there's a bonus, if Steve gets a bonus, everyone gets their 10 shares. That's the basis of what we're trying to do. And we think that will do a couple of things. One is help transparency around our executive pay but also very much encourage shareholding in the company. Although the share plans are popular, we hope it drives people more towards those.

Thank you. And a second one on diversity and inclusion. On D&I, is the critical element not one of equality of opportunity, not equality of outcome? This is not your gender target focused on the wrong priority, thereby undermining the vital element of meritocracy. As a long-time shareholder, I want Croda to hire the best candidates for their respective roles.

I think that's a very fair question, and we want to always hire the best candidates. But to hire the best people, you need to ensure that you're attracting as broad a range of talent as possible, and that's why the diversity drive is so important to us. It's also important to us that we have diversity of thought. So we're not only hiring the best people, but when they're in the business that we have great diversity of thought because that drives innovation, which is the heart of what Croda is all about. So the things like balanced shortlist help us to think about our diversity, it helps us to attract that breadth of talent, and it keeps us focused. So although it is an outcome measure, how many women we have in leadership positions, it's about helping us to -- on that journey to hire the best people we can.

Thank you, Tracy. A broader one now, which I think Steve is probably the best place to start with. My question relates to innovation and sustainability. Croda is rightly recognized for your great work on sustainability. But can you provide some color regarding how to integrate sustainability into innovation, especially for new product development and new opportunities? Are you able to take new opportunities to your customers or to new potential customers? Steve?

Yes. Yes, thanks for the question. I mean, and you've heard me probably say a few times now, you can be the most sustainable company in the world with the number of bio-based ingredients you've got as a proportion of your total. But you won't get significant business unless you've got that innovation that goes with that as well. And you need the two -- absolutely need the two, I mean. So Croda has been on this journey for quite some time. It's not new. I think the exciting thing that we've mentioned to you recently in the results presentation is beyond COVID, we can see an acceleration of sustainability trends. I mean, they were there beforehand but certainly an acceleration there. And through the innovation groups, we start with the principle that we've got the 10 principles of chemistry -- the 12 green principles of chemistry. So we're starting -- we're trying to find solutions for the world -- for unmet needs, for our customers and future customers with that in mind. So that's an evolution. What you need to do is map the 2. So you need to follow the demand changes as they come along, and there's many of those. But making sure that in your products that you're offering, that you've got a significant differentiation in sustainability, whether that's in the bio-based nature of it, the purity of it or whether that's actually in the way you make it. As Mark mentioned before, this sarcosinate mild anionic surfactant stream in Rawcliffe Bridge, I mean, we were making some of these 20, 30 years ago. And they're great products, but now they're having a renaissance because they're moving into formulations with L'oreal, Unilever and many of the big multinationals because they're mild surfactants, and they're displacing things that are not mild and that are petrochemicals. So this is creating a number of opportunities. So our job really is to keep customer-focused and really better understand the trends to make sure that we're ready to satisfy those. But in terms of the innovation culture, we're very well in tune with that. So you see that as evolution rather than revolution.

Thanks, Steve. I'm going to go to one on the supply chain now, which is from Charles Eden at UBS. In order to ensure fully supply chain compliance, can we expect a higher degree of backwards integration in the Croda business model than is the case today? Do you want to kick us off, Michelle? And then Steve, maybe you want to come on that one as well.

Yes. Yes. I don't think that will be the case. Our focus will be on close collaboration with suppliers and completely transparent relationships so we can identify ways that we can work better together. And in doing this, we need to focus on our strengths, and that's not -- and this won't likely lead us to integration. There's much more to -- in my opinion, to be gained through collaboration.

Thanks, Michelle. That's great. I'm going to see if you haven't got anything to add, Steve, and press on. So a couple on the carbon price, which I think Julia is probably best placed to answer. What's the thinking behind choosing an internal carbon price of GBP 50 per tonne as an appropriate level to start with?

Yes. Thanks, David. We did spend quite a lot of time benchmarking against our peer group and the wider industry. And that's why we've started with GBP 50 a tonne of our shadow price but we will be closely monitoring how that price changes across other industries, other companies within our industry.

Thank you. And I guess, a follow-on, I know the GBP 50 per tonne carbon price assumption. What work has been done to flex this assumption, assess the impact of any change in the carbon price on Croda's plans as regards to sustainability?

Yes. I think the key thing there is that Mark has just mentioned, we'll be keeping an eye on the price and whether we need to change it. But for us, it's not really about assessing financials. It's more about helping us to drive behavior change across our organization and make the right investment decisions to help us decarbonize our operations.

Thank you, Julia. That's great. Next question, I think for the CFO, to kick us off from Martin Evans at HSBC. Is it possible to unravel the extra additional costs associated with implementing and meeting the targets by 2030, e.g. testing new processes from the group's normal ongoing CapEx? Or is it fully integrated, despite the results often not being measurable in the short term?

Yes. Okay, David. And thanks, Martin. Look, I think the great thing about this is that there's a very strong alignment between the commercial direction of travel for Croda and the sustainability needs. So generally, we've got a really strong correlation between those. In overall terms on CapEx, there will be some additional CapEx to do, coming particularly out of the decarbonization plans that Mark talked about. But overall, we wouldn't expect that to be a quantum different from what we're anticipating around about 6% of sales as our annual CapEx cost for Croda. So I think there will be individual projects, for example, in countries where there isn't easy access to green electricity. We may look at our own generation and so forth. So there will be individual projects, and we'll call those out, but generally manageable within the existing capital budgeting and very well aligned with the overall commercial aspirations for Croda.

Thank you, Jez. I think you can stay on the screen. This one is for the CEO and the CFO, I think. How is the sustainability strategy likely to impact your acquisition plans?

Yes. Well, I'll take that. Yes, I mean, it will. I mean, absolutely will. It's -- as we start to think about developing our next-generation plans for the targets that we look at, whether that's in consumer or life sciences, they're central to our thinking is -- of sustainability. It's the title of our strategy document for the next 10 years. So it should lead to -- in consistency in how we think about decision-making and judgments, not just in organic delivery but inorganic delivery as well. So everything that you see Croda starting to look at will have some sort of sustainability angle to it or innovation connection to it. So it's all about targeting new markets and new niches in markets. And our job is to keep appraised of those markets as there -- as they're becoming available because the markets are moving very quickly, which we like. But we've got to be fleet of foot as well to be responsive to that as well. So a good example of that was Alban Muller recently in the results announcement. It's a relatively small acquisition, but it's 100% sustainable. EcoVadis Gold -- Platinum status, it's made from carbon-neutral technologies. It's ideal bolt-on for Sederma and Croda on for the L'oreals of the world and the sustainability leaders of the world, but in personal care and home care. So that's the type of direction that we're moving for sure. And I think the big benefit will come in the consumer care area. It will benefit other sectors that we operate in, but the big benefit come in that sector.

Thanks, Steve. So I think this is a question for the sustainability team, Phil Ruxton, best place to pick it up. We've talked about the percentage of ingredient sourcing that are bio-based. What about your turnover? What proportion of your revenue is from purely bio-based products? And that question is from Isha Sharma at MainFirst.

Thanks, David. Hi, everyone. That's the age-old question. We did cover that in our investor session on sustainability back last October as well. And it's a question we get asked a lot. I think the first question is let's think about definitions. There are lots of definitions out there about green revenues, about bio-based revenues, about SDG-linked revenues. If it's specifically about bio base, you're correct. 67% of our raw materials are connected with bio-based. And it's across our portfolio. So there's some good alignment there with revenues. When you look at other measures of green revenues, for example, the FTSE Russell measures, about 50% of our revenues are considered bio-based. But as I mentioned last time, when we talked 6 months ago, we are going to be working towards connecting revenues with the SDGs directly. It's a work in progress. It's not simple. It's going to take some time. There are not clear metrics out there at the moment to be able to do that. But that's kind of where we aspire to be.

Thank you, Phil. I'm just going to take a land-positive question from [ Gary Dubois ]. And he said, to what extent do you think certification will play an increased role in reporting and assessing your positive land targets and ambitions? That question's to Dave Cherry, please.

Okay. Well, we're going to make sure that we -- when we report figures that we can get them validated externally. We have a process and a set of measures and we are making sure those are auditable and challengeable. I think as we think about it, we want to make sure that the key thing that we do is to change our behavior, our decision-making so that we invest in things which are going to improve yield and improve economic outcomes. And I think as long as we are driving towards making real-world change, then we're doing the right kind of things. That's our focus. How could we be a force for good in our supply chains with our customers and helping them achieve the changes that they also are committing to, and we'll make sure that the figures we post, we present are validated.

Thank you, Dave. That's great. There's a few further deep dive questions on innovation that are all related, I think. And some of these relate to the achievements of our decarbonization goals. So Mark, to kick off, and then Steve and others to augment as required. So there's 3 on similar themes. Firstly, from Sam Perry at Crédit Suisse, what, if any, innovation do you need to rely on in the future to meet your land and climate goals? And to what extent could these goals achieve -- be achieved by science already being used in Croda? And similarly, from [ Felix Decore ], in the effort to cut your CO2 emissions, are there breakthrough innovations or production changes that are game changers for Croda? Mark?

Yes, thanks. I think short-term, to drive carbon reduction, we will rely more on known technologies, things like substituting fuels, moving from directly fired, burning natural gas to things like green electricity. So those are known technologies that we can make the migration quickly today. But as we move forward, it has to be about more transformative technology. And for me, I can't tell you whether it will be a game changer or not, but there are some significant points of differentiation we can create because these technologies, moving from big batch processes to continuous processes where you're talking about micro-reactors, where the amount of process control is much finer than what we have on today's processes, so we can control the amount of the purity far better, the quality consistency far better, there'll be less byproduct generation, those sorts of things. And ultimately, these processes are inherently safe compared to some of today's processes where everything that we make is benign. But sometimes, the starting point of the raw material can be hazardous. Well, actually, as we migrate these new transformation processes, we move away from those hazardous points. It becomes then inherently safe. I see -- so all of that is part of our decarbonization unit. So I see those as a massive point of differentiation for us with our customers.

Okay, very good. On a similar vein, firstly, what value will decarbonization bring compared to the level of investment required to decarbonize? And what level of investment will it require to meet these decarbonization plans? Firstly, to Jez, please.

Yes. I mean, we're still working through the initial 10 plans that were prepared last year for the 10 major sites. So as I said earlier, we need to look at the timing and phasing of that spend, how it accelerates our delivery of decarbonization. But we don't expect it to be material in the context of the group's overall program. So we'll be working through those and prioritizing which projects we do first for the biggest, particularly for the biggest carbon impact.

Dave, ask Phil to pick up on that -- on the value question.

On the opportunity, please, Phil.

The opportunity. I mean, a couple of points to say there. And again, we've talked about this at length previously. Firstly, the estimations globally, the opportunity of meeting the UN SDGs is valued in the multitrillions. $12 trillion is a number that's out there. And Croda wants their fair share of that opportunity, obviously. The second thing is, you've heard through the whole presentation that none of this is new to Croda. And we pride ourselves in our laser-like focus on customers, as Steve always likes to say, and the customers are driving us this way. And when we follow the customers, there's value there. And our customers are very ambitious in this area right across every market. And the targets they're setting, they recognize they can only achieve and deliver on if their suppliers are supporting them. And so we're positioning ourselves as a leader to be able to support our customers who are leading in this area. And in that, we believe there's significant value.

Good. Thanks, Phil. We've got a question from Gunther Zechmann at Bernstein. Can you talk about the CO2 impact of acquisitions, please? Do you have specific targets for bringing acquired assets to the same level as Croda's targets and over what time? Again, one for Jez to kick off and then to point to other members of the sustainability team to add a bit more detail.

David, let me jump in, if you don't mind. Yes. I mean, let me start by saying the most important thing about acquisitions will always be around innovation and intellectual property and making sure that we are creating value from that. But overlaid on top of that, as we responded to one of the earlier questions, we have to have a very well-tuned view of sustainability from these things. And it is about the carbon dioxide impact, but it's about much more than that as well. So it's about the positive impact of those products in use, but it's also, can we reduce the negative impact of the actions as well. And that combination is always important when we look at acquisitions. So in everything we look at, we will have a sustainability road map to get them somewhere even better. But I think the wider point we would say is we see that with whether that's Avanti, Biosector, Iberchem. Sometimes, some of their standards are higher than ours. And some of them, they're lower than ours in relation to things like safety. And that's not a criticism. It's just -- they come from parts of the industry where they do it to a level, which is an industry standard for them. But when we've got higher standards in some areas, we'll make sure that they move to those higher standards. And I think that's implicit in that. But whilst we do that, we learn -- we're trying to learn from them as well because there's some things particularly in some of the recent acquisitions, where we're learning from them as well. And so it's all part of the same. So yes, so it's very much in front, square and center in our mind, but we shouldn't lose sight of the fact that we wouldn't just buy a company because of its good carbon dioxide profile. It would -- or emissions profile. It would have to make sure it's got some real strength in the innovation and intellectual properties as we would always expect from Croda.

And sorry, David, it's Jez. I was talking on mute. Just supporting Steve's comments there. Certainly, in the 2 acquisitions we did last year, we looked at those very carefully through our sustainability lens. But as Steve said, I think it's also for us to assess, can we improve its sustainability position. And clearly, in Iberchem, for example, increasing the proportion of materials, which are from sustainable sources is something that we definitely believe we can bring to that business. So it's about the improvement we can bring as long as -- as well as where that company is at the moment.

David, it's Phil. Can I just add a technical comment to the back of what Steve and Jez have said? In terms of accounting for it and looking at our targets, there are some quite clear standards under the Greenhouse Gas Protocol and for science-based targets about what you need to do to re-baseline, where something significant. And Croda will follow those as we do it and ensure that we're clear on how we're doing the measurement.

Thanks, Phil. Thank you, Phil. I've got two questions left in the inbox that I don't think we've answered yet. One from Navina at Morgan Stanley about commercial opportunities beyond biosurfactants on bio-based. And another from Iain Armstrong about willingness to continue to invest in petrochem-based technologies. So I'll come back to you -- to Steve to kick off on those. [Operator Instructions] The purpose of this event was to give you the opportunity to ask questions as much as it was to present. With that, on Navina's questions, apart from biosurfactants, are there other areas of bio-based products, which the company is seeing a notable increase in demand? Outside of biosurfactants, are there any other areas of bio-based products, which the company is focused on? Steve?

Yes, I mean, good question. I mean, there's lots of areas. I mean, a lot that we share is -- we talked about these mild surfactants in one of our facilities in the U.K. actually for the world. And they're having a renaissance because the bio-based and the displacing materials that aren't bio-based, and they have a more positive impact in use and formulations as well. So less higher purity, more benign. So that trend is moving there. I mean, big growth in biotechnology as well as you expect. But biotechnology can be a panacea for absolutely everything. And you've got to be very careful with biotechnology. Well, biotechnology focused on niche applications into customers that really want it and need it, then that's where Croda will play. And -- but we're not -- we wouldn't see ourselves transforming into a completely different beast with biotechnology in the bulk commodity scale, but there's lots of opportunities with biotechnology. And I guess it's the win -- the big win is satisfying future customer demand with great products, with sustainability credentials, but then making those products in a sustainable way is transformative. And what we've got through our innovation programs is a very well-tuned engine, if you like, to satisfy the product innovation. But behind that and separate to that, at the corporate level, we're now looking at -- and we've had that for quite some time, our technology groups looking at the next-generation processes for our factories. And 100% there is looking at the sustainability agenda, reducing negative impacts and reducing carbon emissions, amongst other things. So you get the combination together, and that's very powerful growth because it's giving your customers a huge move forward. So that's all square and center in our mind. To Iain's question, and I saw Iain's question earlier, David. So I mean, it's an interesting one. The priority will always be to satisfy demand from a natural renewable route where we can. But clearly, we have some products in the group, which are either inorganic or petrochemical, which can still have a positive impact in use. So I look at an example there is UV sunscreens. We've got some inorganic actives, which are used to transform formulations to reduce UVA, UVB protection. So it reduces skin cancer effectively. And we're looking at innovation breakthroughs there to satisfy future formulations. But that may not necessarily be bio-based, but it's still very appealing for customers to move that way. So whilst the direction of travel is always in that bio-based direction, if we felt there was a solution out there that would benefit customers from either inorganic or a petrochemical route, and we felt it actually carry great value to them, then of course, we would innovate around that space as well.

Thank you, Steve. I've got one question from Isha before I hand back to you to wrap up, Steve. And thanks for asking that question, Isha. I think you've given me the opportunity to make sure I get the name of your institution right following the rebrand, so it's Stifel. And Isha's question is your customers require more and more transparency to achieve clean sourcing, especially in consumer care. Could it be a potential threat to your IP? And how do you protect it? I suggest, Steve, you kick us off. And then maybe Stuart Arnott would like to come in as well.

Yes. I think it's probably more for Stuart as well. I mean, we never patent process technology generally because as a rule, as a Croda rule, they're very difficult to police. So -- but a lot of our intellectual property that we built up over the last 20 years or so has been in the way we manufacture things. And I have no doubt that over the next 20 years, it will be as well. So there'll be some great things that we do, particularly around the decarbonization agenda, refinement, purification, separation, which is classic Croda process technologies that we'll continue to do. But we'll still protect them by not advertising the protection, if you see what I mean. Because once you start advertising, you lose a lot of that protection. But I think also in the innovation side of things, it's keeping our discipline with intellectual property. So we're launching products all the time. But increasingly, they're patent-protected as well. So again, it's a patent in the application of the product, whilst being very clever with the way you manufacture it but not broadcasting that. And that's where Croda sort of plays, so that will continue. So I'm comfortable, very comfortable that we're not going to leak intellectual property. That was part of the question and also protect our wider IP going forward in value. But Stuart, perhaps you can add to that?

Yes. Thanks, Steve. I will do. And if I can just add to the previous question that you responded on. Give you a more specific example, Google Unilever's Clean Future and Croda's Brilliance Award, and you'll find there that we have won an award to replace petrochemical ingredients in Unilever's laundry products, which is a win-win in many ways because it's good for Croda, it's good for Unilever, and it brings huge sustainability benefits. 1 kilogram of use of our products saves 19 kilos of new garments, 150,000 liters of water and 450 kilos of carbon. So these are huge sustainability wins by -- this was led by innovation. Anyway, back to the traceability question. I don't think it's a threat either because people are not asking for our intellectual property. What they're asking for is line of sight and chain of custody right through the supply chain. So they're asking for where do your raw materials come from? Where specifically in the country do they come from? Are they involved in deforestation or exploitation of workers? Are they threatening biodiversity in other ways? And then they're interested in the sustain -- all the sustainability credentials like the carbon footprint or even there, we save the land footprint, which is an idea that we've got, how much water is used, are there any waste products and ultimately, what's in there that shouldn't be in there. So you talk about clean, you talk about what impurities are either in there, carried through from the raw materials or are actually generated during the manufacturing process. So all of that work can be passed to customers and should be passed to customers without actually divulging your intellectual property.

Great answer. Thank you, Stuart. There's a question here from Martin Evans at HSBC, that, again, I think it's probably most appropriate for Steve to kick off with. Croda has a historic first-mover advantage in many areas of sustainability, especially in using renewable inputs. As competitors now respond to customers' requirements for all things green, does this give Croda a commercial advantage in pitching for potential new business? Or is the environment tougher now that others play in this market too? Steve?

Yes. Good question, Martin. Yes, I mean, we view this positively generally. I mean, it doesn't matter where you start in the industry, and we've all been in the industry long enough -- well, 2 of us have anyway. You longer than me, by the way. But the-- it depends if you're in petrochemicals, all the way through to specialty chemicals, it doesn't matter where you start. You have to move and improve from a sustainability point of view. I think the big excitement is the fact that our customers are moving and they're moving very quickly, the biggest and the best in -- whether it's beauty care or home care, to quote some examples. And you know who they are. They are moving very significantly down that path. So everybody will move with them. I mean, Croda's well advantaged, as Chris said, because 67% of our materials are bio-based. So incrementally, we still can increase that further. But a lot of the industry is down at 10%, 12%, 15% and moving to 20%, 25%. So the opportunity for market share gain for Croda is quite significant as a lot of our customers will be indiscriminately moving away from core suppliers because they will -- they have to, and there, we're starting to see that. So our job is to make sure we can satisfy that potential opportunity because Croda never really talks, as you know, we never really talked about market share gains. We talk about innovation in niche markets. And so those niches, we expect to increase and expand as opportunities present themselves, but we expect to probably get some displacement benefit from market share gains as people move. A lot of our customers move away from petrochemicals probably quicker than you think. So there's a combination there. So we don't take it for granted. We're in a good position. But as I said, the big thing will be the speed of innovation as much as the bio-based renewability of our materials that will help drive that growth. So we mustn't forget the fact that we still have to fast track our innovation like that giant hamster wheel that we've always talked about that we just need to keep spinning as fast as we can.

Go ahead, Jez.

Yes. Back to the competitive threat, I think we're very proud of our strategy, and we think it's deep, deeply meaningful. You'll see in the sustainability report, not only have we announced some interim milestones. We've also called out the specific targets underneath the UN SDG goals. And that, in many ways, speaks to the fact that we're not labeling our current activities with a UN sticker and saying that we're aligned. We're actually -- it's changing our behavior. And we really are targeting the very specific targets within the goals. We're not so sure that, that's the process that other companies are following. So I think that's the first thing to say. The other thing to say is we've thought really holistically about this. There's something for climate. There's something for land, leading to that nature and biodiversity. And there's something for our people and leading to that society. So you can see that it's very balanced. It's very broad. And there's a huge contribution in all of those areas. We are not aware of many companies that have got their eye on the ball for land, for example, land consumption, one or 2, but not so many. So in this race to be more bio-based, what is the unintended consequence of our peer group and our competitors as they're consuming more land? We thought about that, and we put that into our targets to make sure that we are land net positive. And I think that will keep us ahead of the competition.

Thanks, Jez. There's no further questions. So just back to you, Steve, to wrap up.

Yes. Well, thanks, everybody. Great questions. And if there's any supplementaries, then do file them into David, and the team will help respond to that. But I've been really pleased with the development from where we started to where we are now. You saw that with the sustainability teach in October last year. And hopefully, you can see that we're moving forward. What you see -- what you probably don't see is what we see in the business is we feel like we're making progress. But in typical Croda fashion, we don't get excited until we can start to see the value being created. And we're starting to see the value being created in spades now around the world. So it's great to see all parts of the organization firmly embedding this in the org right around the world. And there's still a lot to do. We're not there yet, but we made good progress. And the challenge now is to create the behavior change that we want in the business that drives that innovation to even broader value, not just in the products that we offer to customers, but also the processes and the systems that we use right around the business because there's great value in that as well. So we're well positioned. We're very much feet on the ground. We've got a lot to do, and we're pleased with where we are. So I think for me, it's just thanks to everybody from the Croda team today, and thanks again for everybody's questions.