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Supplier engagement

People iconNeste 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.

In 2017, we started updating our 2013 No-Deforestation and Responsible Sourcing Guidelines for Renewable Feedstock together with our partner CORE. Implementation of the guidelines, nowadays known as Neste Responsible Sourcing Principle, will start in the spring of 2019. 

We gathered feedback on this principle at our annual supplier workshop in April 2018 and again later in the year to support its efficient implementation. We have arranged similar workshops for our palm oil suppliers since 2015 to foster dialogue, and to hear about our suppliers’ concerns. They also provide us an opportunity to clarify our requirements and expectations.

We continued conducting risk assessments of palm oil mills that supply palm oil to refineries supplying PFAD to us. PFAD-supplying palm oil refineries were engaged to ensure that their operations and those of their supplying mills are in compliance with our sustainability policies and principles.  

To drive improved transparency in the palm oil industry as a whole, we have been developing an approach to “traceability to plantations” (TTP) specifically for palm oil based waste and residue raw materials. The target has been to develop a common definition and shared understanding of the concept for all the actors in the industry. Our risk-calibrated approach towards TTP prioritizes gathering more data of higher risk areas, such as forests, uncultivated peat and protected areas. We introduced the approach to more than ten palm suppliers in 2018.

A commonly shared approach is a key to enabling and speeding up coherent efforts towards improved traceability, including effective data collection and cooperation within the complex palm oil waste and residue supply chains involving several layers of actors from smallholders as palm oil cultivators to various collectors and processors of materials.