All crude palm oil used by Neste has been fully traceable all the way to the plantation level since 2007, and 100% certified since 2013. We procure crude palm oil only from carefully selected suppliers and from known and documented sources. We purchase certified palm oil directly from the producer companies instead of purchasing separate certificates from the world market as, for example, many food industry companies do. Buying directly from producer companies provides us with better transparency and influence in our supply chain – the more direct the supply chain, the better.
Due to its liquid nature, palm oil cannot be traced with a tag on the side like, for example, oranges. However, methods approved by the authorities have been designed for tracing liquid products. We trace all of the crude palm oil we use with these methods.
Crude palm oil comes from carefully selected plantations
We know the exact location and land use history of every oil palm plantation supplying us. Therefore, we know that the plantations supplying us have not expanded into prohibited areas and do not have any intention to do so.
Raw materials are supplied to us only from plantations specified in our contracts.
As a forerunner in supply chain transparency, we have made comprehensive data on our crude palm oil supply chain public. Please visit our Crude Palm Oil Dashboard, launched in April 2017, to view updated information on our suppliers, certification systems used, and certification documentation. The site also provides access to a map service enabling the visitors to see the geographical location of the palm oil mills in our supply chain. The data covers all the companies, mills, and estates that supplied Neste with crude palm oil in 2016.
How is palm oil traced?
We trace all crude palm oil used by us with methods approved by the EU and US authorities. The methods we use are mass balance and segregation, which means having a separate supply chain.
When palm oil is purchased using the mass balance principle, certified palm oil can be mixed with raw material coming from other sources at the mill or storage facilities. The amount of raw material sourced by us is verified using accurate accounting, and we receive exactly the amount of certified palm oil we have bought. The raw material batches do not wander by themselves; they are physically monitored throughout their journey from the plantation to the customer. All phases of the supply chain leave an imprint, as they are all documented and audited.
Segregated material, on the other hand, is not in physical contact with other raw materials at any phase of the supply chain.