Diversity principles

The Company has established principles concerning the diversity of the Board of Directors as follows:

At Neste, the proposal concerning the composition of the Board of Directors to the Annual General Meeting is prepared and presented by the Shareholders’ Nomination Board. The Shareholders’ Nomination Board consists of the representatives of the Company's three largest shareholders and the Chair of the Board of Directors as the fourth member. When the Shareholders’ Nomination Board is planning the composition of a skilled, competent, experienced and effective Board of Directors from the viewpoint of diversity, the Shareholders’ Nomination Board has also these Diversity Principles, defined by the Company itself, available for use.

Diversity shall be part of such cooperative and functional Board of Directors which is able to respond to the requirements set out in the Company's business and strategic objectives. Such Board of Directors will also be able to support and challenge the Company's operative management in a proactive and constructive manner. Significant factors concerning the composition of the Board of Directors include mutually complementary variety of competences, education and experience in different professional and industrial fields and in management and business operations existing in different development phases, as well as the personal qualities of each member, all of which add diversity to the Board of Directors.  The diversity of the Board of Directors is also supported by experience in industrial fields and markets that are strategically significant for the Company, by experience and abilities in technologies and in international operating environment, and by a diverse age and gender distribution so that both genders are always represented in the Board of Directors.  From the viewpoint of the composition of the Board of Directors, it is important to pay attention to the Company's current and evolving needs, and to ensure that the Board of Directors, as a whole, enables the current and future business development of Neste, which diversity, on its part, also supports.

Currently (in 2016), the Board of Directors of Neste consists of seven members, all of whom hold a university-level degree, and one of whom has a doctorate. All of these degrees are from different fields, with technical fields being in the majority. Each member of the Board of Directors has international work experience in different types of positions, and has worked or is working in the Board of Directors or in the management of listed or unlisted companies. Two members have worked in managerial positions at major international oil companies. The Board of Directors is also diverse in terms of cultural backgrounds: its members come from three different countries and speak four different native languages. Women comprise 43% of all members of the Board of Directors, which meets the objective set out in the resolution issued by the Finnish Government on 17 February 2015. With regard to age, the members of the Board of Directors are divided evenly between 50 and 68 years of age. The duration of the terms of office of the Board members is also divided evenly: three members have been on the Board of Directors for more than five years, while four members have been on the Board of Directors for less than four years.

These Diversity Principles and their fulfillment are presented as part of the Company's Corporate Governance Statement.