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Protecting biodiversity and forests

Protecting biodiversity

Protecting biodiversity is integrated into our sustainability practices, processes and policies like our Code of Conduct. We are committed to protecting natural environments with the minimum possible negative impact. Biodiversity is considered in our supply chain; we have committed to combating deforestation in our supply chains, and to avoiding the conversion of habitats with valuable biodiversity for biomass production, requiring the same from all our suppliers and spearheading transparency in our industry’s supply chain.

To chart a path towards our vision, we have set ourselves two biodiversity targets:
• We aim at creating net positive impacts (NPI) for biodiversity from new activities from 2025 onwards.
• We target no net loss (NNL) of biodiversity from all ongoing activities by 2035.

We encourage the strengthening of protection of biodiversity and high conservation value areas and promote and support the resilience of their natural values. Biodiversity creates the basis for a healthy ecosystem.

Systematic monitoring of the environment

Our refineries are located next to waterways and natural habitats across Finland. Therefore our environmental monitoring is particularly systematic at our refineries. Environmental monitoring is included in the requirements of our refineries' environmental permits.

We rectify any damage to the environment without delay. Our Finnish refineries make impact assessments continuously, finding out about the state of local habitats by investigating bioindicators, such as lichens and mosses.

Preserved and protected areas near our refineries

Nature conservation areas or protected sites are located close to our refineries in Finland. The Stormossen bog, a 75-hectare domed bog, to the west of the Porvoo refinery is protected and is part of the European Natura 2000 network of nature conservation sites.

The Vanto area of deciduous woodland close to the Naantali refinery, is also a protected area by our request. We always take areas, such as these into account in our operations and strive to protect them and the rest of the environment around our refineries.

Our refineries in Rotterdam and Singapore are located on industrial areas built on reclaimed ground.

Protecting forests 

We are committed to combating 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 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.

We also engage with palm oil smallholder farmers to help them develop their sustainability awareness and expertise, as well as, to enable certification of their production. These efforts help protect forests.

Similarly to previous years, Neste’s efforts to manage deforestation risks were evaluated as belonging to the leading performers’ Leadership class in the CDP Forests program in 2021. We welcome further collaboration over industry boundaries and with all our stakeholders to ensure deforestation-free supply chains.