We only source sustainably-produced raw materials. We operate sustainably and require the same from our suppliers. Our partners' commitment to sustainability, protecting biodiversity, and respecting human rights are absolute requirements that must be met before any contract is signed. All of our contracts with renewable raw material suppliers include strict terms on sustainability.
Our suppliers are committed to the following policies and principles:
- Neste's Sustainability Policy
- Neste's Sustainability Principles for Biofuels
- No-Deforestation and Responsible Sourcing Guidelines for Renewable Feedstock
- Neste's Code of Conduct
We also require all our palm oil suppliers to be members of the Roundtable on Sustainable Palm Oil (RSPO) organization. The organization requires its members to commit themselves to respecting human rights and protecting rainforests. Also Neste is a member of RSPO.
Supplier selection – not a piece of cake
Before being accepted as suppliers, a strict due diligence audit and sustainability check are carried out on all companies. The due diligence audits review areas such as corporate governance, corruption, unresolved legal claims, and suspected crimes.
The sustainability check of potential suppliers covers areas such as operating practices and policies, ability to certify production, and any concerns raised by NGOs. After the audits, we give the suppliers the opportunity to manage the issues towards resolutions.
What do we do when we become aware of shortcomings?
Engagement and cooperation with the supplier is our primary way of action in case of any shortcomings. Ending purchases does not resolve problems; engagement and cooperation provide the most efficient means to resolve any problems. Often, we are informed of shortcomings by NGOs and civil society.
We address shortcomings once we become aware of them by:
- Requiring the supplier to provide an account of the situation.
- An assessment and, if necessary, a supply chain audit carried out by Neste's or partner's sustainability experts in Asia.
- Requiring detailed plan for corrective actions from the supplier.
- Submitting the shortcoming to the RSPO's grievance process either by ourselves or by the party involved.
- Representatives of Neste's senior management visiting the supplier's representatives, if necessary.
- Cooperation with the supplier and other stakeholders to develop the operations.
- If the supplier loses their certificate, purchases will be discontinued.