Neste supports strong measures to mitigate the risk of fraud in biofuels and renewable raw materials supply chains

Neste Corporation, News, 16 March 2026

As a response to recent media coverage on suspected cases of fraud related to renewable raw materials business and its alleged connections to the biofuels industry, we wish to emphasize that Neste is currently not aware of any verified cases of fraud (i.e. mislabeling or fraudulent mixing of raw materials) that would be directly connected to Neste’s raw material sourcing.

Neste has taken the risk of fraud very seriously already for years and has developed robust methods to mitigate fraud risk in its renewable raw material supply chains. As fraud is impossible to tackle by any single company alone, we are involved in multiple initiatives to develop stronger measures to combat fraud. Detecting and verifying fraudulent practices requires a combination of measures. Should we detect any evidence of fraudulent activity in our supply chain, we would take immediate action.

We remain committed to applying multiple measures to mitigate the risk of fraud in our supply chains, such as: 

• Rigorous supplier selection and auditing: Neste requires all partners to adhere to its strict Supplier Code of Conduct. Compliance is monitored through audits conducted by both Neste and independent third-party experts to verify ethical business practices and regulatory adherence.
   
• Traceability to point of origin: Neste mandates that all renewable raw materials are traceable back to their point of origin, accepting only materials that fully meet the legal requirements of its key markets.
   
• Supply chain integration and local presence: To gain better visibility and enable closer engagement Neste has shifted toward a more integrated model. This includes establishing local offices in key sourcing regions (e.g., Shanghai, Melbourne) and acquiring waste collection and trading companies (e.g., Mahoney Environmental, Agri Trading) to secure direct access to renewable raw materials.
   
• Physical and chemical analytics: Neste uses laboratory testing to manage raw material authenticity. By analyzing parameters and markers (free fatty acids, FFA; volatile organic compounds, VOC; and moisture content; and in our more advanced analyses squalene or carotenoids, among others), Neste aims to detect abnormalities, contamination, or mislabeling before materials enter the refinery process.

• Collaboration and support for digital tracking and active participation in industry workgroups: Recognizing that no company can tackle fraud alone, Neste supports international cooperation and digital initiatives. This includes participating in the EU's Union Database (UDB) for enhanced traceability and supporting local systems like Malaysia's eCOSS to prevent the leakage of subsidized oils into fraudulent channels. Neste actively contributes to the development of new analytical methods and standards through organizations like the ISCC (International Sustainability and Carbon Certification), specifically focusing on identifying the contamination of used cooking oil (UCO) with palm oil. 

We encourage the use of existing whistleblowing channels (e.g. ISCC channel) to share any concerns or information stakeholders may have on any suspected wrongdoing, also related to suspected fraud.

Neste produces its renewable products from a wide variety of raw materials that it sources from over 60 countries on six continents. We are committed to ensuring that all the renewable raw materials we use and the renewable products we produce always meet the relevant legal requirements in all our markets. With this we continue to support our customers in reducing emissions and mitigating climate change in Europe and around the world.

For more information, please see:

• Neste’s sustainability reports
• Supply chain sustainability
• Supplier Code of Conduct

Further information: Please contact Neste's media service, tel. +358 800 94025 / media@neste.com (weekdays from 8.30 a.m. to 4.00 p.m. EET). Please subscribe to Neste’s releases at https://www.neste.com/media/subscribe. 

Neste in brief

Neste (NESTE, Nasdaq Helsinki) is the world's leading producer of renewable diesel and sustainable aviation fuel (SAF), with production on three continents. The company’s renewables production capacity is expected to reach 6.8 million tons annually in 2027. Neste also produces high-quality oil products at its Porvoo refinery in Finland. The company has a network of nearly 1,000 fuel stations with expanding service offering, such as EV charging, in Finland and in the Baltics.

Neste’s strategy focuses on growth in renewable fuels, which help its customers to reduce their greenhouse gas emissions. Neste is included in many international indices for its sustainability performance. In 2025, Neste's revenue stood at EUR 19.0 billion. Read more: neste.com