ESG AUDIT REPORT: BIO-BASED DECARBONIZATION

Strategic Life Cycle Assessment (LCA) of Castor-Derived Feedstocks

Report Date: January 2026

Produced by: Sustainability Division, Nova Industries

Certified Standard: ISO 14040 / ISO 14067 (LCA & Carbon Footprint)


1. THE “CARBON HANDPRINT” VS. “CARBON FOOTPRINT”

While traditional petrochemicals have a purely negative “footprint,” castor-based chemistry provides a Carbon Handprint—a positive environmental contribution through active sequestration.

  • The Biological Engine: The Ricinus communis plant is a high-efficiency C4-like photosynthetic engine.

  • Sequestration Data: Research indicates that castor crops can sequester approximately 34.6 tonnes of $CO_2$ per hectare/year (across two growing cycles). Unlike timber, which takes decades, this carbon is “captured” and fixed into the chemical supply chain in just 180 days.


2. CRADLE-TO-GATE EMISSIONS ANALYSIS

This section provides the comparative carbon intensity of Nova Industries’ Derivatives vs. petroleum-based equivalents.

Feedstock Component Petroleum Derivative (e.g., Adipic Acid) Nova Bio-Derivative (e.g., Sebacic Acid) Savings (GWP)
Feedstock Extraction High (Crude Oil Mining) Negative (Plant Sequestration) >100%
Manufacturing Process High (High Heat/N2O Emission) Moderate (Solvent Extraction) ~40%
Global Warming Potential ~6.5 kg $CO_2$e/kg ~1.3 kg $CO_2$e/kg* ~80%

*Data based on optimized 2026 production cycles utilizing renewable energy and biomass fuel.


3. THE N2O ELIMINATION FACTOR

A “Deep-Dive” insight for ESG Auditors:

Standard production of adipic acid (for Nylon 6,6) relies on nitric acid oxidation, which releases Nitrous Oxide ($N_2O$). $N_2O$ is 300 times more potent than $CO_2$ as a greenhouse gas. By switching to Nova’s Castor-Based Sebacic or Undecylenic chains, manufacturers completely eliminate this $N_2O$ burden from their supply chain, providing an immediate and massive leap toward Net-Zero.


4. CIRCULAR ECONOMY & BIOMASS SYNERGY

Nova Industries operates on a “Zero-Waste” agricultural model. Our LCA accounts for the internal circularity of our manufacturing facility in Gujarat:

  1. Bio-Fuel Transition: We utilize the Castor De-Oiled Cake (DOC)—the byproduct of oil extraction—as a solid biomass fuel in our boilers. This reduces our reliance on coal/natural gas, lowering the “Gate” emissions of our refined oils by 0.43 tons of $CO_2$e per ton of oil produced.

  2. Land Neutrality: Castor is grown on marginal lands that do not compete with food crops, ensuring that the LUC (Land Use Change) impact is zero or positive through soil health improvement.


5. CALCULATING YOUR SCOPE 3 SAVINGS

For our clients, every ton of Nova material purchased directly reduces their Purchased Goods and Services (Scope 3, Category 1) emissions.

The Calculation Formula:

$$S = Q \times (EF_{Petro} – EF_{Nova})$$
  • $S$: Total $CO_2$e Savings (kg)

  • $Q$: Quantity of product purchased (kg)

  • $EF_{Petro}$: Emission Factor of Petroleum equivalent (Standard: 6.5)

  • $EF_{Nova}$: Emission Factor of Nova Bio-Derivative (Standard: 1.3)


6. VERIFICATION & COMPLIANCE

Nova Industries provides batch-specific Environmental Product Declarations (EPD). All data is verified using the 2026 GHG Protocol Corporate Standard, ensuring that your audit will pass scrutiny by third-party ESG rating agencies (like EcoVadis or MSCI).


FINAL SUMMARY FOR THE BOARD

Switching to Nova Industries’ castor-based derivatives is not merely a material change; it is a financial and environmental de-risking strategy. We provide the data, the chemistry, and the biological efficiency to make your 2030 Sustainability Goals a reality.

Authorized by: Director of ESG & Export Strategy, Nova Industries

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