We are committed to preventing deforestation. Deforestation is a challenge particularly in Southeast Asia, where we source palm oil that we used as one of the raw materials for our renewable products.
Neste has a clear stand against any actions that would cause deforestation. We are committed to preventing deforestation in our own supply chains, and require the same from all our raw material suppliers.
Already in 2015, all our palm oil suppliers committed to No Deforestation policies not only in their own operations but also in their third party sourcing. This means that even those producers that do not produce raw materials directly for us but are associated with our suppliers, should also be committed to prevent deforestation.
If Neste’s supplier is found to have sourced palm oil from illegal origins, it is a clear violation of Neste’s policies and contracts with the supplier. Neste is a fair but strict buyer, committed to sourcing only sustainable palm oil, known to take action in case any wrongdoing has taken place.
Transparency enables collaborative work
Neste puts great effort into managing its deforestation risk. The palm oil the company uses has been fully traceable to the plantation level since 2007, and is 100% certified since 2013 will help in these efforts.
Our key partner in managing deforestation risk is CORE (The Consortium of Resource Experts). This association of Daemeter and Proforest experts support us in our continuous efforts to develop the traceability of our raw materials and transparency in supply chains.
Neste fully discloses all the palm oil companies, mills, and plantations from which it sources its palm oil. This information has been available online since 2016 when Neste became the very first company in the world to make its palm oil supply chain fully public. By making our supply chain fully public, we want to show our commitment to transparency but also enable monitoring of our supply chain collaboratively with our stakeholders.
The most recent information on Neste’s palm oil supply chain can be found at the traceability dashboard.
Efforts to mitigate deforestation risk
Neste works with expert organizations, such as CORE, to continuously manage its deforestation risks not only in its own supply chain, but also more widely in the palm oil industry. With the help from CORE, we assessed the environmental risks of our company’s palm oil supply chain, and prepared an action plan for preventing and mitigating risks. The implementation of the action plan began in early 2017.
We have also joined the Consumer Goods Forum Forest Positive Coalition to strengthen our collaboration on preventing deforestation. Our efforts to manage deforestation risks are regularly evaluated by a non-profit CDP, among others.
We are developing Neste Responsible Sourcing Policy, which will replace the company’s current policies and aims to measure and monitor implementation of no deforestation policies within Neste’s supply chain.
Neste is cooperating with smallholders in the palm oil industry to further develop their sustainability awareness and expertise, as well as to improve traceability.
We welcome further collaboration over industry boundaries and with all our stakeholders to ensure deforestation-free supply chains.