Sustainability

Protecting forests and combating deforestation

We are committed to combating deforestation. Deforestation is a challenge in Southeast Asia in particular, where we source palm oil that we used as one of the raw materials for our renewable products. 

Neste has a clear stand against any actions that would cause deforestation. We are committed to preventing deforestation in our own supply chains, and require the same from all our raw material suppliers. 

Already in 2015, all our palm oil suppliers committed to No Deforestation policies not only in their own operations but also in their third party sourcing. This means that even those producers that do not produce raw materials directly for us but are associated with our suppliers, should also be committed to prevent deforestation.

If Neste’s supplier is found to have sourced palm oil from illegal origins, it is a clear violation of Neste’s policies and contracts with the supplier. Neste is a fair but strict buyer, committed to sourcing only sustainable palm oil, known to take action in case any wrongdoing has taken place.

Transparency enables collaborative work

Neste puts great effort into managing its deforestation risk. The fact that the palm oil that the company uses has been fully traceable to the plantation level since 2007, and 100% certified since 2013 helps in these efforts. 

Our key partner in thie area of managing deforestation risk is CORE (The Consortium of Resource Experts). This association of Daemeter and Proforest experts supports us in our continuous efforts to develop the traceability of our raw materials and transparency in supply chains even further. 

Neste fully discloses all the palm oil companies, mills, and plantations from which it sources its palm oil. This information has been available online since 2016 when Neste became the very first company in the world to make its palm oil supply chain fully public. The most recent information on Neste’s palm oil supply chain can be found at http://nestetraceabilitydashboard.com/nestes-palm-oil-dashboard. By making our supply chain fully public, we want to show our commitment to transparency but also enable monitoring of our supply chain collaboratively with our stakeholders.

Wide range of efforts to mitigate deforestation risk

Neste works with expert organizations, such as CORE, to continuously manage its deforestation risks not only in its own supply chain but also more widely in the palm oil industry. With the help from CORE, We assessed the environmental risks of our company’s palm oil supply chain, and prepared an action plan for preventing and mitigating those risks. The implementation of the action plan began in the beginning of 2017.

We are developing Neste Responsible Sourcing Policy which will replace the company’s current policies and aims to measure and monitor implementation of no deforestation policies within Neste’s supply chain. We are also engaging with smallholder farmers of palm oil to help them develop their sustainability awareness and expertise, as well as, to enable certification of their production. These efforts also help protect forests.

Neste’s efforts to manage deforestation risks were evaluated as belonging to the leading performers’ Leadership class in the CDP Forests program in 2017. We welcome further collaboration over industry boundaries and with all our stakeholders to ensure deforestation-free supply chains.