Why Croda International is Among Top Climate Resilience Stock Picks

Speciality chemicals group Croda International (LON: CRDA) has been highlighted as one of the most compelling investment opportunities in the climate resilience space, according to Dominic Rowles, Head of ESG at Hargreaves Lansdown.

In a note examining how rising global temperatures are reshaping investment opportunities across agriculture, water management and energy-efficient buildings, Rowles pointed to Croda’s Life Sciences division as a key strength.

The unit supplies crop protection and seed enhancement products designed to help farmers cope with increasingly unpredictable growing conditions, including changing rainfall patterns, more frequent droughts and shifting pest pressures.

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Croda differentiates itself through innovation, Rowles noted, citing its work on biological pesticides and fertilisers that support more sustainable farming practices.

The company has also developed a seed enhancement product aimed at helping crops withstand higher soil salinity—a problem that can follow severe droughts. While still in early stages, customer feedback on the innovation has reportedly been encouraging.

However, Rowles cautioned that innovation alone does not shield Croda from broader market headwinds. Crop protection sales have come under pressure this year, though the company’s larger Consumer Care division continues to trade well, providing some balance to the group’s revenue base.

Looking ahead, analysts forecast Croda’s operating profit could grow by around 50% by 2029, reaching approximately £445 million—though much of that growth is expected to be concentrated in later years, meaning near-term upside may be limited.

In the meantime, investors are being offered a prospective dividend yield of 3.9%, though Rowles stressed that returns are never guaranteed.

The note forms part of a wider Hargreaves Lansdown analysis identifying companies positioned to benefit from growing demand for climate adaptation solutions, as global warming continues to affect infrastructure, supply chains and productivity across multiple industries.