Supply chain sustainability

Neste drives a safe and healthy workplace, fair labor practices and increased commitment to sustainability across the supply chain. Our commitments to responsible and ethical business depend not only on our own people but also on forming relationships with business partners who share our commitments.
Identifying and selecting good partners are crucial to the sustainability of supply chains. Neste requires all its suppliers and other business partners to comply with applicable laws and expect them to follow equivalent ethical business standards as stated in the Neste Supplier Code of Conduct. We demonstrate this commitment by implementing, and acting in accordance with, the United Nations Guiding Principles on Business and Human Rights (UNGPs) and the OECD Guidelines for Multinational Enterprises. As a signatory to the UN Global Compact, we also implement its Ten Principles by embedding them into our sustainability due diligence processes.
To ensure our suppliers’ compliance with the Supplier Code of Conduct, Neste has implemented systematic controls for counterparty screening and monitoring. Counterparties are screened for economic sanctions and similar compliance issues and selected ethical concern categories in third-party enforcement databases and major news outlet sources. All Neste’s raw material suppliers and selected contractors are subject to additional sustainability due diligence. A key element in understanding the sustainability risks in our supply chains is assessing country risks. We use a bespoke, industry leading country risk assessment methodology from Verisk Maplecroft to identify countries or geographical areas in which we operate and have raw material supply chains with high sustainability risks.
We maintain an up-to-date country risk categorization based on country risk indices such as ethical business practices, human and labor rights, health and safety, and the environment. Our categorization also includes a list of no-go countries and regions based on considerations including trade sanctions, conflicts and sustainability risks. The country risk assessment allows us to effectively prioritize our activities by identifying the most significant sustainability risks in certain countries or geographical areas. Read more about how we integrate country risk assessments into our sustainability due diligence processes in Neste’s Annual Report.
Sustainability audits
Neste carries out audits to mitigate sustainability risks in the supply chains. When selecting suppliers to be audited, we pay special attention to suppliers, raw materials or countries with the highest sustainability risks.
The main purpose of Neste’s sustainability audits is to verify that its suppliers comply with Neste’s Supplier Code of Conduct and local regulatory requirements. Neste’s Sustainability Audit Standard sets out the overall requirements for sustainability audits at Neste, which include a social scope, and is regularly benchmarked against globally recognized methodologies such as SMETA and SA8000. After the audit, we follow up cases of non-compliance and require our suppliers to remediate significant open issues within a specified timeframe.
The sustainability audits are conducted either by our own local sustainability specialists or a third-party auditor. Where possible, we also conduct audits on our suppliers’ suppliers (second-tier suppliers or even beyond).
In 2025, we conducted a total of 36 sustainability audits: 22 on renewable and recycled raw materials; 6 on terminals; and 8 on contractors. The majority of findings recorded in renewable raw material supplier audits in 2025 were related to human and labor rights.
Supplier engagement
Neste requires all business partners to comply with laws and follow the ethical standards defined in the Neste Supplier Code of Conduct to ensure safe workplace and fair labor practices across the supply chain.
We understand that due diligence processes and sustainability audits alone are insufficient for a positive impact in our value chain. We engage regularly in capacity building with our suppliers. The topics covered with our suppliers over the years have included the Neste Supplier Code of Conduct requirements, sustainability policy development, due diligence, traceability and grievance management. We are also committed to training our employees on our policies.
Engaging with PFAD suppliers
While Neste does not use crude or refined palm oil in the production of its renewable products, we do continue to purchase waste and residues generated in palm oil production processes. Therefore, we remain committed to supporting the industry-wide implementation of No Deforestation, No Peat Expansion, No Exploitation (NDPE) commitments through our membership in the Palm Oil Collaboration Group (POCG).
We systematically engage with our PFAD suppliers through workshops, one-to-one meetings, and capacity-building webinars. These sessions, which are often conducted in collaboration with third-party consultants and independent experts, focus on fostering dialogue and providing guidance on topics such as NDPE (No Deforestation, No Peat, No Exploitation) implementation, Human Rights Due Diligence (HRDD), traceability, grievance management, and evolving EU and regional regulatory requirements. This active engagement is one of the key components of our due diligence process.
Alongside our collaboration with the industry and our suppliers, we partner with Inovasi Digital (powered by Earthqualizer) to monitor, verify, and take action on deforestation alerts within our PFAD supply chains.
Siak Pelalawan Landscape programme
Neste is one of the eight company members of the Siak Pelalawan Landscape Programme (SPLP). The SPLP is a collaborative initiative involving the private sector aimed at supporting the Siak and Pelalawan district governments with the implementation of the Green Siak District Roadmap in Siak and the District Action Plan for Sustainable Palm Oil in Pelalawan. The work is facilitatedby Proforest and Daemeter, who coordinate technical support between h the district governments, private sector members, and non-governmental organizations. Through this collaborative effort at a landscape level, Neste supports a landscape-level approach focused on four core goals: advancing responsible production, protecting forests and peatlands, respecting human rights, and strengthening livelihoods of palm oil smallholders and surrounding communities.
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