Sustainability due diligence

Our raw material suppliers are assessed depending on supplier type, raw material and identified sustainability risks. The assessments may include country risk assessments, desktop reviews and sustainability audits. Knowing the origin of our raw materials is a fundamental supplier requirement. Where possible, our aim is to gain visibility throughout the entire raw material supply chain, including our suppliers’ suppliers.

Renewable raw material suppliers

Our renewable products’ raw material suppliers are subject to sustainability due diligence with assessments depending on supplier type, raw material and identified sustainability risks.

The supplier sustainability approval is valid for 3 or 5 years, depending on e.g., country risk, raw material volumes supplied to Neste and the outcome of the sustainability review. Once the validity period expires, the supplier undergoes a new review.

At minimum, we require our renewable raw material suppliers to disclose their supply chain actors and locations as determined by end-market sustainability regulations such as the EU Renewable Energy Directive (EU RED) or the US Renewable Fuel Standard (RFS). In addition to understanding the sustainability performance of our direct suppliers, our aim is to gain visibility throughout the raw material supply chain, including our suppliers’ suppliers.

Fossil raw material suppliers

As we are transforming from a traditional oil refiner into a provider of renewable and circular solutions, we continue to produce high-quality oil products from crude oil and condensates at our refinery in Porvoo, Finland.

Neste is purely a buyer of crude oil; we do not own shares in any company producing crude oil, nor are we engaged in oil exploration or drilling. Additionally, we do not purchase fossil raw materials from protected Arctic sea areas, sanctioned countries or conflict areas.

Due diligence for fossil raw material suppliers

We also conduct a sustainability review of all new suppliers based on publicly available information regarding topics outlined in the Neste Supplier Code of Conduct, suppliers’ climate and environmental commitments, and crude oil production-specific issues such as flaring and spills.

The sustainability review is renewed every three years for fossil raw material suppliers.

We purchase our crude oil and other fossil feedstock from the global market, mostly from Europe and North America. We are actively screening alternative sources globally in order to optimise our supplies, and follow enhanced risk management and sustainability assessment processes in case of purchases from higher risk countries and areas.