Our impact on climate

Our strategic investments into increasing renewables production capacity are a key driver to increasing our carbon handprint. 

At the same time, we work toward reducing our own carbon footprint. We are committed to reducing the GHG emissions from our operations (scope 1 and scope 2). We are also committed to reducing the use-phase GHG emission intensity of sold products and work with our suppliers and partners to reduce the indirect GHG emissions from our entire value chain (scope 3). 

_{*)When verified to fulfill the mandatory sustainability criteria in accordance with the biofuel regulation in our markets (e.g. EU RED), including greenhouse gas emission reduction requirements over the fuel’s life cycle compared to fossil fuel.}

Our climate impact 

• We are committed to achieving an annual reduction of at least 20 million tons in total life cycle GHG emissions through renewable and circular products compared to fossil alternatives by 2030*.

• We are committed to reducing GHG emissions in our own operations (scope 1 and scope 2) by 80% by 2040 compared to 2019 levels. Interim targets: 24% by 2030 and 50% by 2035. 

• We are committed to reducing the use-phase GHG emission intensity of sold products by 50% by 2040 compared to 2020 levels (scope 3)**.

_{*)Life cycle GHG emissions are quantified against fossil references using either biofuel regulatory framework calculations (e.g., EU RED) or critically reviewed life cycle assessments meeting ISO 14040/14044 standards, applied according to product category.}

_{**)Use-phase GHG emission intensity is calculated by dividing the emissions from the use of products sold by Neste (part of scope 3) with the total amount of sold energy (gCO2e/MJ).}

We recognize several critical success enablers, such as supporting policy and regulatory framework with mandates and incentives, economic and market demand growth enabling significant and long-term sustainability investments, and sustained R&D&I, jointly with all stakeholders.

We also continuously identify, analyze, and measure the financial implications including material risks and opportunities of climate change for our business. Our approach to identifying climate-related risks and opportunities is guided and informed by the Task Force on Climate-related Financial Disclosures (TCFD) framework.

Use-phase GHG emission intensity

The most relevant scope 3 emission category for Neste is the use-phase emissions of the products produced and sold by Neste. Use-phase emission intensity of sold products (gCO2e/MJ)—calculated by dividing the emissions from the use of products sold by Neste (part of scope 3) by the total amount of sold energy—is an indicator of the GHG emissions from the use of Neste’s products. These are the GHG emissions generated when our products are used – for fuels, this means combustion. Reducing the use phase emission intensity of sold products indicates how companies in this sector are transforming their product portfolio to have a larger share of renewable and circular products.