|Sustainability theme||Material topic||Targets||Achievements in 2019|
|Low-carbon solutions||GHG emissions reduction achieved with Neste’s renewable fuels compared to crude
oil based diesel, Mt.1) Target to achieve 14 Mt GHG emissions reduction by 2023 and 20 Mt GHG emissions reduction by 2030.
|GHG emissions reduction: 9.6 Mt (7.9 Mt). We introduced an updated emission
reduction target for 2030.
|To further develop our solutions portfolio for more sustainable transport, aviation, and chemical sectors.||Share of Renewable Products business area revenue from Group revenue (Clean Revenue) 25.5% (21.7%).|
|Maximizing the share of waste and residue raw materials in our raw material mix
provides the highest possible reduction in greenhouse gas emissions when
compared to products derived from crude oil.
|Waste and residues accounted for 80% of the total raw material usage to produce
|Process more than 1 Mt of liquefied waste plastics by 2030 to reduce crude oil dependence in refining and petrochemical processes.||In 2019 we made progress towards our aim to introduce liquefied waste plastic as a future raw material for producing chemicals and raw materials for new plastics.|
|Introduce a system to measure and monitor how our suppliers implement Neste Responsible Sourcing Principle throughout their entire supply chain, including third party suppliers. Starting from 2020 to identify key pressure points related to biodiversity in the renewable raw materials portfolio of Neste and to provide suggestions on mitigating the effects.||Our No-Deforestation and Responsible Sourcing Guidelines for Renewable Feedstock has been updated since 2017. The renewed guidelines are nowadays known as Neste Responsible Sourcing Principle. In 2019, our supplier guidelines, including the Neste Responsible Sourcing Principle, were benchmarked against the Accountability Framework Initiative (AFi).|
|In 2017, to have our entire PFAD supply chain is mapped to palm oil mills. In 2020, to have our PFAD supply chain is mapped to oil palm plantations.
||By end 2019, 99% of our PFAD supply chain has been independently mapped to the supplying mills and 71% all the way to plantations.|
|Sustainability of raw materials||In 2019, to build a Supplier sustainability Portal (SSP) to facilitate and enhance evaluation of both potential and existing renewable raw material suppliers, to support performance monitoring, and active engagement with our suppliers. In addition in 2020, to have SSP in operational use across the supply base, and support available for the users in English and in Chinese.||The SSP was taken partially in use in 2019 and deployment will continue in 2020. The number of renewable raw material supplier’s Due Diligence and their outcome in 2019: Total: 91 (87), New approved suppliers: 52 (41), All approved: 55 (52), Pending: 36 (35), Failed: 0 (0).2)|
|In 2019, our Supplier Code of Conduct (SCoC) updated. In 2020, to have all new suppliers to commit to the requirements of the renewed SCoC, all renewable raw material suppliers assessed against the requirements of the new SCoC, and all purchasing personnell trained on the new SCoC requirements. Long-term target: Everyone supplying raw materials or services to us will meet the Neste Supplier Code of Conduct or similar requirements.||Our Supplier Code of Conduct was updated in 2019. 100% (100%) of the new indirect supplier contracts, 100% (100%) of the renewable raw material volume3) and 88% (91%) of the fossil raw material volume delivered to Neste in 2019 were covered by the Neste Supplier Code of Conduct or equivalent.|
|Resource efficiency||Enhance Neste’s energy consumption by 500 GWh during 2017–2025.||
Energy efficiency, energy-saving measures: 16 GWh (57 GWh).
|Number of permit violations. Target: Halve the number of incidents within Oil Products (OP) in 2019 compared to the average number of incidents in 2016–2017. Long-term target for OP and Renewable Products (RP): zero permit violations.||Permit violations: 3 (2), of which 2 (2) in OP and 1 (0) in RP.|
|Availability of pollution prevention technology. Long-term target: 100% availability of pollution prevention technology at refineries and terminals.||Availability of pollution prevention technology on average 88% in Oil Products and Renewable Products.|
|Safety and incident-free operation||Total Recordable Incident Frequency (TRIF)4) target: 1.5 for 2019. Long-term target: Zero accidents.||TRIF 1.7 (1.7)|
Process Safety Event Rate (PSER)5) target: 1.5 for 2019.
Long-term target: Zero safety deviations
|PSER 1.4 (2.1)|
|Target for 2019: 320 Safe Days. Long-term target: Continuously increasing the number of Safe Days.||314 (314) Safe Days|
|Long-term target: Zero incidents. Continuously increasing awareness by focusing on preventive measures such as safety observation tours, safety discussions, and reporting.||Number of preventive safety measures 30,746 (31,677)|
|Fair and equal employment||Employee engagement. Target: Maintain the level of global benchmark or above.||According to the engagement survey conducted early 2019 the employee engagement score was 71, which was in line with global benchmark result. Majority of employees thought favorably of working at Neste and said they would recommend Neste as a workplace. 72% felt happy working at Neste, 68% understood how Neste plans to achieve its strategic goals, 82% thought Neste acts in a responsible way, 85% saw safety as a priority for Neste.|
|Long-term target: To attract and retain highly skilled employees. Substantial effort is put into maintaining and developing the skills base within the company.||Leaving rate of permanent employees 7.4% (11.4%). Hiring rate of permanent employees 14.0% (10.9%).|
|Human rights||Managing human rights risks in renewable raw material supply chain. Target: To strengthen the human rights criteria in tracking and measuring suppliers' performance on social (and other sustainability) issues with the digital supplier management system, Supplier Sustainability Portal.||A supplier sustainability management system and corresponding criteria to measure performance has been developed (refering to major musts for supplier onboarding and minimum requirements that are outlined in the new Supplier Code of Conduct).|
|Internal capacity to manage human rights risks. Target for 2019: Most ritical functions have initiated human rights due diligence process to evaluate and strengthen internal capacity to mitigate potential adverse human rights impacts.||The gap assessments which began in 2018 for three internal units (Human Resources, Marketing & Services and Indirect Procurement) were concluded in 2019. Based on the gap assessments and analyses, an action plan was created for each business unit with focus areas for improvements. Implementation of the action plans began in 2019.|
|Good corporate citizenship and ethics||To further encourage employees and external stakeholders to report observed or suspected misconduct.||A total of 13 (13) suspected misconducts were reported in person or via the whistleblowing line to the Investigations Group in the following categories: HR 2 reports, conflict of Interests 1, bribery and corruption 1, fraud 2, discrimination and harassment 2, and 5 reports belong to category “other”.|
1) Cumulative greenhouse gas (GHG) reduction achieved with Neste’s renewable fuels compared to crude oil based diesel. Calculation method complies with the EU Renewable Energy Directive (RES 2009/28/EC). Neste regularly updates its GHG emission factors in line with the updates in legislation and the certification schemes.
2) All figures except “New approved suppliers” include existing suppliers, which undergo a DD process every 3-5 years. 2019 Supplier data includes only main contractual parties, excluding sub-suppliers. The calculation process has changed from previous year, hence the numbers are not fully comparable.
3) Demeter suppliers excluded from the figure due to the integration in progress.
4) Number of cases per million hours worked. The figure includes both Neste’s and contractors’ personnel. Working hours for own personnel are estimated based on previous years. Estimation error is insignificant.
5) Number of cases per million hours worked. Working hours for own personnel are estimated based on previous years. Estimation error is insignificant.