In addition to committing to Neste Supplier Code of Conduct, all our raw material suppliers are subject to additional 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
We require all our renewable raw material suppliers to comply with Neste Supplier Code of Conduct and Neste Responsible Sourcing Principle: all of our contracts with renewable raw material suppliers include strict terms on sustainability: e.g. commitment to sustainability, protecting biodiversity, and respecting human rights are requirements that must be met.
Our renewable products’ raw material suppliers are subject to rigorous sustainability due diligence with assessments depending on supplier type, raw material and identified sustainability risks.
The supplier sustainability approval is valid for 3-5 years depending on risk level, and after expiry, the supplier undergoes a new review.
In addition to understanding the sustainability performance of our direct suppliers, our aim is to gain visibility throughout the entire raw material supply chain, including our suppliers’ suppliers. As a minimum, we require our suppliers to disclose their supply chain actors and locations as determined by end-market sustainability regulation such as EU RED and EPA RFS.
Certified supply chain
We ensure sustainability in our renewable fuel production chain through certifications like ISCC EU, ISCC Plus, RedCERT2 and national verification schemes. In the United States, our renewable fuel sustainability is approved by the Environmental Protection Agency (EPA).
All our refineries hold ISCC certificates and they comply with EU RED and EPA requirements. However, not all raw materials need certification; instead, we can verify sustainability according to our policies, local legislation, and the destination country's regulations.
The certification systems specify what constitutes sustainable operations, what their criteria are, and how the management of the supply chain should be documented.
Greenhouse gas emission reduction covering the renewable product's entire life cycle is calculated correctly
Traceability across the whole supply chain, from the source of raw materials to the final product
Products are produced through the implementation of sustainable agricultural practices, minimising adverse impacts on ecosystems, biodiversity, and soil quality.
Social and ethical aspects respected - comply with labor standards and human rights.
Products comply with relevant laws and regulations, including those related to environmental protection and land use
Compliance with waste and residue definitions, ensuring that no intentional waste or residue production, contamination, or modification has occurred.
Read more about the renewable raw materials Neste uses
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.
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 crude oil from 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.