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.
Neste puts great effort into managing its deforestation risk and this effort is regularly evaluated by a non-profit CDP, among others.
Collaboration to mitigate deforestation risk
Neste has joined the Consumer Goods Forum Forest Positive Coalition to strengthen its collaboration on preventing deforestation. We welcome further collaboration over industry boundaries and with all our stakeholders to ensure deforestation-free supply chains.
Neste works with expert organizations, such as CORE (The Consortium of Resource Experts), 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. Neste is also cooperating with smallholders in the palm industry to further develop their sustainability awareness and expertise, as well as to improve traceability.
Neste cooperates with Daemeter, Proforest, and the Siak government as well as many other global brands to make a large-scale transformative sustainability impact in the Siak region in Indonesia.
Neste is supporting a landscape initiative program in Para, a region in Northern Brazil that has been affected by deforestation. The collaboration with local NGOs (Proforest, Imaflora and Solidaridad) aims at driving structural change in the region by engaging with local cattle farmers and promoting forest conservation. The collaboration started early 2023 and the project is first focused on mapping the relevant stakeholders for further engagement.
Driving transparency in palm industry
The palm oil Neste uses has been fully traceable to the plantation level since 2007, and is 100% certified since 2013. 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.
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.