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  • Overall approach
    6/12
    • Overarching commitment on deforestation
      3/4
      Zero deforestation/Deforestation-free commitment or, for timber, pulp & paper companies only, commitment to well implemented harvest and no deforestation of HCV & HCS areas
      3/4
      "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 commits to not source from areas where renewable feedstock production has led to adverse land use change and habitat conversion after 19 December 2007. Such land use change can be the conversion of forested areas, wetlands or grasslands into cultivation areas; and other natural eco-systems where High Conservation Values (HCV) or High Carbon Stock (HCS) are present, or where the Free, Prior and Informed Consent (FPIC)1617 of local communities and traditional land rights holders have not been given. Forests - Neste does not accept the conversion of forested land to biomass production where HCV and HCS values are found."
      Open source document
      Open source document
    • Signatory to an initiative tackling deforestation
      1/1
      Yes
      1/1
      Neste Corp is a signatory of World Business Council for Sustainable Development and a signatory of UN Global Compact.
      Open source document
      Open source document
    • Awareness of the value of forests
      1/1
      Yes
      1/1
      "Neste commits to not source from areas where renewable feedstock production has led to adverse land use change and habitat conversion after 19 December 20071415. Such land use change can be the conversion of forested areas, wetlands or grasslands into cultivation areas; and other natural eco-systems where High Conservation Values (HCV) or High Carbon Stock (HCS) are present" [...] "We take the significance of ecosystems and biodiversity into account in everything we do to protect them as extensively as possible. 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."
      Open source document
      Open source document
    • Deforestation as a business risk
      1/1
      Yes
      1/1
      Does the company recognise the risk as financial, operational, competition, reputational, or other? Please detail.: Reputational
      "During the past years, use of palm oil has created a reputational risk as sustainability of palm oil sourcing has caused public discussion and concerns both from NGOs’ and customers’ side. Neste is committed to ensuring sustainable palm oil sourcing and has implemented several measures to improve transparency in its supply chain, as described above in Climate and Environmental matters."
      Open source document
    • High-level management of deforestion
      0/1
      No
      0/1
      How often does the committee or board meet to assess company's progress on addressing deforestation-related issues?: Three times a year

      Which commodities does it apply to?: Palm oil; Soy
      "The Executive Committee approves our sustainability priorities. Responsibility for individual corporate sustainability targets is shared between the members of the Executive Committee. The Vice President, Sustainability, is responsible for ensuring that relevant management processes relating to material corporate sustainability topics are being developed and implemented as part of our strategy [...] The most significant sustainability risks are identified and assessed as a part of the annual risk management cycle facilitated by Neste’s risk management team. The risk management team monitors the level of risks, and ensures that the risks are mitigated appropriately by Neste’s business units, functions, and country units [...] Neste’s key policies and principles concerning environmental matters related to sourcing of renewable raw materials are Supplier Code of Conduct, Sustainability Principles for Biofuels and Neste Responsible Sourcing Principle. All of Neste’s palm oil suppliers are committed to no deforestation policies, and extended those to cover also their third party suppliers, since 2015. All the palm oil we have used has been fully traceable to the plantation level since 2007, and 100% certified since 2013." 
      Open source document
    • Executive compensation linked to deforestation
    • Target to reduce emissions from land-use change
      0/2
    • Reporting on emissions from land-use change
      0/2
    • Disclosure of conservation activity
    • Disclosure of reforestation activity
    • Target to reduce emissions in scope 1/2
      Yes
      0/0
      What is the target date for the company to achieve their climate target?: 2035

      Type of climate target: Other or unclear
      "Neste is committed to reaching carbon neutral production by 2035. The commitment complements Neste’s other strategic climate commitment of reducing customers’ greenhouse gas emissions by at least 20 million tons annually by 2030."
      Open source document
  • Commodity score
    55/88
    • Palm oil
      71/88
      • Commitment Strength
        18/20
        • Commitment to protect priority forests
          6/8
          • Commitment details
            Zero-gross deforestation
            4/6
            Commitment to protect priority forests
            Zero-gross deforestation
            4/6
            Other certification scheme: ISCC Certification

            Which certification schemes are used?: RSPO; Other certification
            "No-deforestation - Neste has a clear stand against any actions that would cause deforestation. We are committed to preventing deforestation in our supply chains and require the same from all our raw material suppliers. Our deforestation risks are primarily related to our use of palm oil, which is the reason our efforts in this area are focused on the palm oil industry. [...] Already in 2015, all our palm oil suppliers committed themselves to No Deforestation policies including their third-party sourcing [...] The palm oil that we source is 100% ISCC-certified and 100% traceable all the way to the oil palm plantations. Most of these volumes are additionally RSPO-certified as we require all our palm oil producers to be committed to RSPO certification, in addition to our other sustainability requirements."
            Open source document
            Open source document
          • Commitment applies to all regions, suppliers and operation
            Yes
            1.3/1.3
            Commitment applies to all regions, suppliers and operation
            Yes
            1.3/1.3
            "No-deforestation - Neste has a clear stand against any actions that would cause deforestation. We are committed to preventing deforestation in our supply chains and require the same from all our raw material suppliers. Our deforestation risks are primarily related to our use of palm oil, which is the reason our efforts in this area are focused on the palm oil industry. [...] Already in 2015, all our palm oil suppliers committed themselves to No Deforestation policies including their third-party sourcing [...] The palm oil that we source is 100% ISCC-certified and 100% traceable all the way to the oil palm plantations. Most of these volumes are additionally RSPO-certified as we require all our palm oil producers to be committed to RSPO certification, in addition to our other sustainability requirements."
            Open source document
            Open source document
          • Target date
            Current/achieved
            0.7/0.7
            Target date
            Current/achieved
            0.7/0.7
            "No-deforestation - Neste has a clear stand against any actions that would cause deforestation. We are committed to preventing deforestation in our supply chains and require the same from all our raw material suppliers. Our deforestation risks are primarily related to our use of palm oil, which is the reason our efforts in this area are focused on the palm oil industry. [...] Already in 2015, all our palm oil suppliers committed themselves to No Deforestation policies including their third-party sourcing [...] The palm oil that we source is 100% ISCC-certified and 100% traceable all the way to the oil palm plantations. Most of these volumes are additionally RSPO-certified as we require all our palm oil producers to be committed to RSPO certification, in addition to our other sustainability requirements."
            Open source document
            Open source document
          • Interim target date
            NA (target date current or achieved or 2022)
            0.3/0.3
            Interim target date
            NA (target date current or achieved or 2022)
            0.3/0.3
            "No-deforestation - Neste has a clear stand against any actions that would cause deforestation. We are committed to preventing deforestation in our supply chains and require the same from all our raw material suppliers. Our deforestation risks are primarily related to our use of palm oil, which is the reason our efforts in this area are focused on the palm oil industry. [...] Already in 2015, all our palm oil suppliers committed themselves to No Deforestation policies including their third-party sourcing [...] The palm oil that we source is 100% ISCC-certified and 100% traceable all the way to the oil palm plantations. Most of these volumes are additionally RSPO-certified as we require all our palm oil producers to be committed to RSPO certification, in addition to our other sustainability requirements."
            Open source document
            Open source document
        • Commitment to protect High Carbon Stock areas and/or peatlands
          5/5
          • Commitment details
            Yes
            3/3
            Commitment to protect High Carbon Stock areas and/or peatlands
            Yes
            3/3
            Type of commitment: HCS; Peat
            "No-deforestation - Neste has a clear stand against any actions that would cause deforestation. We are committed to preventing deforestation in our supply chains and require the same from all our raw material suppliers. Our deforestation risks are primarily related to our use of palm oil, which is the reason our efforts in this area are focused on the palm oil industry. [...] Already in 2015, all our palm oil suppliers committed themselves to No Deforestation policies including their third-party sourcing [...] The palm oil that we source is 100% ISCC-certified and 100% traceable all the way to the oil palm plantations. Most of these volumes are additionally RSPO-certified as we require all our palm oil producers to be committed to RSPO certification, in addition to our other sustainability requirements."
            Open source document
            Open source document
          • Commitment applies to all regions, suppliers and operation
            Yes
            1.3/1.3
            Commitment applies to all regions, suppliers and operation
            Yes
            1.3/1.3
            "No-deforestation - Neste has a clear stand against any actions that would cause deforestation. We are committed to preventing deforestation in our supply chains and require the same from all our raw material suppliers. Our deforestation risks are primarily related to our use of palm oil, which is the reason our efforts in this area are focused on the palm oil industry. [...] Already in 2015, all our palm oil suppliers committed themselves to No Deforestation policies including their third-party sourcing [...] The palm oil that we source is 100% ISCC-certified and 100% traceable all the way to the oil palm plantations. Most of these volumes are additionally RSPO-certified as we require all our palm oil producers to be committed to RSPO certification, in addition to our other sustainability requirements."
            Open source document
            Open source document
          • Target date
            Current/achieved
            0.7/0.7
            Target date
            Current/achieved
            0.7/0.7
            "No-deforestation - Neste has a clear stand against any actions that would cause deforestation. We are committed to preventing deforestation in our supply chains and require the same from all our raw material suppliers. Our deforestation risks are primarily related to our use of palm oil, which is the reason our efforts in this area are focused on the palm oil industry. [...] Already in 2015, all our palm oil suppliers committed themselves to No Deforestation policies including their third-party sourcing [...] The palm oil that we source is 100% ISCC-certified and 100% traceable all the way to the oil palm plantations. Most of these volumes are additionally RSPO-certified as we require all our palm oil producers to be committed to RSPO certification, in addition to our other sustainability requirements."
            Open source document
            Open source document
          • Interim target date
            NA (target date current or achieved or 2022)
            0.3/0.3
            Interim target date
            NA (target date current or achieved or 2022)
            0.3/0.3
            "No-deforestation - Neste has a clear stand against any actions that would cause deforestation. We are committed to preventing deforestation in our supply chains and require the same from all our raw material suppliers. Our deforestation risks are primarily related to our use of palm oil, which is the reason our efforts in this area are focused on the palm oil industry. [...] Already in 2015, all our palm oil suppliers committed themselves to No Deforestation policies including their third-party sourcing [...] The palm oil that we source is 100% ISCC-certified and 100% traceable all the way to the oil palm plantations. Most of these volumes are additionally RSPO-certified as we require all our palm oil producers to be committed to RSPO certification, in addition to our other sustainability requirements."
            Open source document
            Open source document
        • Commitment to a traceable supply chain
          6/6
          • Commitment details
            Traces to Point of production
            4/4
            Commitment to a traceable supply chain
            Traces to Point of production
            4/4
            "Neste's traceability dashboard provides detailed information on key aspects of our palm oil and palm fatty acid distillate (PFAD) supply chains. We do not own any oil palm plantations, nor operate any palm oil refineries. Instead, we source from carefully selected, responsible suppliers that are committed to certification and principles of sustainability. All the palm oil we have used has been fully traceable to the plantation level since 2007, and 100% certified since 2013. [...] Since April 2017, we have been working towards developing traceability for our entire PFAD supply chain to oil palm plantations, and made significant progress in this work."
            Open source document
          • Commitment applies to all regions, suppliers and operation
            Yes
            1.3/1.3
            Commitment applies to all regions, suppliers and operation
            Yes
            1.3/1.3
            "Neste's traceability dashboard provides detailed information on key aspects of our palm oil and palm fatty acid distillate (PFAD) supply chains. We do not own any oil palm plantations, nor operate any palm oil refineries. Instead, we source from carefully selected, responsible suppliers that are committed to certification and principles of sustainability. All the palm oil we have used has been fully traceable to the plantation level since 2007, and 100% certified since 2013. [...] Since April 2017, we have been working towards developing traceability for our entire PFAD supply chain to oil palm plantations, and made significant progress in this work."
            Open source document
          • Target date
            Current/achieved
            0.7/0.7
            Target date
            Current/achieved
            0.7/0.7
            "Neste's traceability dashboard provides detailed information on key aspects of our palm oil and palm fatty acid distillate (PFAD) supply chains. We do not own any oil palm plantations, nor operate any palm oil refineries. Instead, we source from carefully selected, responsible suppliers that are committed to certification and principles of sustainability. All the palm oil we have used has been fully traceable to the plantation level since 2007, and 100% certified since 2013. [...] Since April 2017, we have been working towards developing traceability for our entire PFAD supply chain to oil palm plantations, and made significant progress in this work."
            Open source document
          • Interim target date
            NA (target date current or achieved or 2022)
            0.3/0.3
            Interim target date
            NA (target date current or achieved or 2022)
            0.3/0.3
            "Neste's traceability dashboard provides detailed information on key aspects of our palm oil and palm fatty acid distillate (PFAD) supply chains. We do not own any oil palm plantations, nor operate any palm oil refineries. Instead, we source from carefully selected, responsible suppliers that are committed to certification and principles of sustainability. All the palm oil we have used has been fully traceable to the plantation level since 2007, and 100% certified since 2013. [...] Since April 2017, we have been working towards developing traceability for our entire PFAD supply chain to oil palm plantations, and made significant progress in this work."
            Open source document
      • Social Considerations
        15/18
        • Labour rights in the supply chain
          Yes
          4/4
          Labour rights in the supply chain
          Yes
          4/4
          Details of commitment: ILO; UNGP; UN Declaration for HR; Discrimination; Forced labour; Child labour; Freedom of association
          "Neste respects the rights enshrined in the Universal Declaration of Human Rights and the fundamental rights in the eight core conventions of the International Labor Organization which form the basis for Neste’s Human Rights Commitment. The Suppliers are expected to respect the same rights and, at a minimum, the Supplier shall: [...] Not employ any workers younger than 15 years of age, protect workers of ages 15 - 17 from work which, by its nature or the circumstances in which it is carried out, is likely to harm their health, safety or morals, and establish systems to ensure fulfilment of and follow-up on these requirements; [...] not use any compulsory or forced labor, and ensure that recruitment fees and associated costs are not borne by workers [...] provide equal opportunity and treatment in employment, without regard to race, color, religion, sex, political opinion, national extraction, social origin or any other similar distinction which is not based on the inherent requirements of the work; [...] not tolerate any type of harassment of its employees whether direct or indirect, physical or verbal; and[...] recognize and respect employees’ right to organize freely and bargain collectively."
          Open source document
        • Inclusion of small-scale farmers
          Yes
          4/4
          Inclusion of small-scale farmers
          Yes
          4/4
          How many smallholders do they support, and what percentage does this represent in terms of their sourcing from smallholders?: 36,900

          What is the nature of that support?: Certification; Technical assistance/support
          "Neste’s cooperation with palm oil producing smallholders aims to support the development of their sustainability awareness and expertise. The adoption of sustainable practices enables smallholders to get certified; Neste requires a commitment to certification from all its palm oil suppliers. Neste's cooperation with smallholders is one of many ways in which we combat deforestation risk. Palm oil related deforestation risk can be reduced by introducing sustainable means to increase yields to the smallholders. By sourcing raw material from the certified smallholders, Neste provides them a financial incentive to remain committed to sustainable practices and continuous improvement. In 2019, our supply chain included more than 36,900 Indonesian palm oil smallholders organized into cooperatives."
          Open source document
        • Gender equality in the supply chain
          Commitment to address gender related labour rights including discrimination and harassment
          1/4
          Gender equality in the supply chain
          Commitment to address gender related labour rights including discrimination and harassment
          1/4
          "Suppliers Must - provide equal opportunity and treatment in employment, without regard to race, color, religion, sex, political opinion, national extraction, social origin or any other similar distinction which is not based on the inherent requirements of the work"
          Open source document
        • Commitment to remediation
          Yes
          2/2
          Commitment to remediation
          Yes
          2/2
          Type of harm covered: Social harm; Environmental harm
          "Remediation plans Neste acts upon findings from its due diligence and mitigation work with suppliers to remedy where impacts are found to occur. In the case of non-responsiveness from the supplier, and as a last resort, Neste will terminate a commercial relationship where remediation cannot be achieved."
          Open source document
        • Commitment to ensure Free, Prior and Informed Consent
          Yes, the company commits to securing FPIC prior to acquiring new interests, developments, or expansions
          4/4
          Commitment to ensure Free, Prior and Informed Consent
          Yes, the company commits to securing FPIC prior to acquiring new interests, developments, or expansions
          4/4
          "Neste commits to not source from areas where renewable feedstock production has led to adverse land use change and habitat conversion after 19 December 20071415. Such land use change can be the conversion of forested areas, wetlands or grasslands into cultivation areas; and other natural eco-systems where High Conservation Values (HCV) or High Carbon Stock (HCS) are present, or where the Free, Prior and Informed Consent (FPIC) of local communities and traditional land rights holders have not been given. [...] Neste is committed to ensure that land use for biomass production shall be conducted with respect to communal and customary land rights and where local and indigenous peoples have given consent to use land through a credible and documented FPIC process"
          Open source document
        • Commitment to resolve land conflicts
          No
      • Reporting and Implementation
        38/50
        • Reporting against commitments
          2/2
          • Commitment to protect priority forests
            Yes, for all commodity exposure
            1.7/1.7
            Commitment to protect priority forests
            Yes, for all commodity exposure
            1.7/1.7
            "No-deforestation - Neste has a clear stand against any actions that would cause deforestation. We are committed to preventing deforestation in our supply chains and require the same from all our raw material suppliers. Our deforestation risks are primarily related to our use of palm oil, which is the reason our efforts in this area are focused on the palm oil industry. [...] Supply chain 2020 in numbers - 100% ISCC-certified; Additionally:– 26% RSPO Identity Preserved– 61% RSPO Mass Balance"
            Open source document
            Open source document
          • Commitment to protect High Carbon Stock areas and/or peatlands
            Yes, for all commodity exposure
            1.7/1.7
            Commitment to protect High Carbon Stock areas and/or peatlands
            Yes, for all commodity exposure
            1.7/1.7
            "No-deforestation - Neste has a clear stand against any actions that would cause deforestation. We are committed to preventing deforestation in our supply chains and require the same from all our raw material suppliers. Our deforestation risks are primarily related to our use of palm oil, which is the reason our efforts in this area are focused on the palm oil industry. [...] Supply chain 2020 in numbers - 100% ISCC-certified; Additionally:– 26% RSPO Identity Preserved– 61% RSPO Mass Balance"
            Open source document
            Open source document
          • Commitment to a traceable supply chain
            Yes, for all commodity exposure
            1.7/1.7
            Commitment to a traceable supply chain
            Yes, for all commodity exposure
            1.7/1.7
            "To drive improved transparency within the palm oil industry as a whole, we have collaborated with our partners from CORE (Daemeter & Proforest) and developed a Traceability to Plantations (TTP) approach specifically for palm oil based waste and residue raw materials, such as PFAD.[...] Since 2018, we have engaged with palm oil suppliers to introduce the approach with an intention to start implementing it together. The progress we have made in developing traceability for our PFAD supply chain all the way to palm oil plantations is largely based on this work. At the end of 2020, we had been able to independently map and validate 99.97% of our PFAD supply chain to the supplying palm oil mills and 85% all the way to plantations."
            Open source document
        • Reporting is independently verified
          1/1
          • Commitment to protect priority forests
            Yes, using a third-party verification scheme or certification scheme.
            1/1
            Commitment to protect priority forests
            Yes, using a third-party verification scheme or certification scheme.
            1/1
            Which processes or groups does the company use for third party verification?: RSPO and ISCC 

            Which tools, approaches, third-party verification, including certification, schemes are used?: RSPO and ISCC 
            "No-deforestation - Neste has a clear stand against any actions that would cause deforestation. We are committed to preventing deforestation in our supply chains and require the same from all our raw material suppliers. Our deforestation risks are primarily related to our use of palm oil, which is the reason our efforts in this area are focused on the palm oil industry. [...] Supply chain 2020 in numbers - 100% ISCC-certified; Additionally:– 26% RSPO Identity Preserved– 61% RSPO Mass Balance"
            Open source document
            Open source document
          • Commitment to protect High Carbon Stock areas and/or peatlands
            Yes, using a third-party verification scheme or certification scheme.
            1/1
            Commitment to protect High Carbon Stock areas and/or peatlands
            Yes, using a third-party verification scheme or certification scheme.
            1/1
            Which tools, approaches, third-party verification, including certification, schemes are used?: RSPO and ISCC 

            Which processes or groups does the company use for third party verification?: RSPO and ISCC 
            "No-deforestation - Neste has a clear stand against any actions that would cause deforestation. We are committed to preventing deforestation in our supply chains and require the same from all our raw material suppliers. Our deforestation risks are primarily related to our use of palm oil, which is the reason our efforts in this area are focused on the palm oil industry. [...] Supply chain 2020 in numbers - 100% ISCC-certified; Additionally:– 26% RSPO Identity Preserved– 61% RSPO Mass Balance"
            Open source document
            Open source document
          • Commitment to a traceable supply chain
            Yes, using an internal verification system.
            0.5/1
            Commitment to a traceable supply chain
            Yes, using an internal verification system.
            0.5/1
            Which processes or groups does the company use for third party verification?: Traceability to Plantations (TTP) approach

            Which tools, approaches, third-party verification, including certification, schemes are used?: Traceability to Plantations (TTP) approach
            "To drive improved transparency within the palm oil industry as a whole, we have collaborated with our partners from CORE (Daemeter & Proforest) and developed a Traceability to Plantations (TTP) approach specifically for palm oil based waste and residue raw materials, such as PFAD.[...] Since 2018, we have engaged with palm oil suppliers to introduce the approach with an intention to start implementing it together. The progress we have made in developing traceability for our PFAD supply chain all the way to palm oil plantations is largely based on this work. At the end of 2020, we had been able to independently map and validate 99.97% of our PFAD supply chain to the supplying palm oil mills and 85% all the way to plantations."
            Open source document
        • Suppliers aligned with deforestation commitments across supply chain
          Yes, encouraged
          0/2
          Suppliers aligned with deforestation commitments across supply chain
          Yes, encouraged
          0/2
          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.
          Open source document
        • Deforestation cut off date
          Yes, for partial sourcing regions/operations
          1/2
          Deforestation cut off date
          Yes, for partial sourcing regions/operations
          1/2
          What cut-off date is specified?: 2007
          "Neste will not source feedstocks originating from areas where HCV and HCS values are found or that have been converted from highly biodiverse natural grasslands after 19 December 2007"
          Open source document
        • Collaborative actions
          Yes
          2/2
          Collaborative actions
          Yes
          2/2
          What initiatives does the company participate in?: large-scale transformative sustainability impact in the Siak and Pelalawan regions in Indonesia

          What is the nature of that participation?: Attending & contributing to meetings
          "Together with several global brands, such as Unilever, Pepsico, Cargill, and Danone, we started collaborating with palm oil companies Golden Agri (GAR) and Musim Mas, as well as non-governmental agencies to aim for a large-scale transformative sustainability impact in the Siak and Pelalawan regions in Indonesia. In May 2020, L'Oréal, a user of sustainable palm oil for its derivatives, has since joined the coalition as a full member.The project takes on a regional landscape approach and aims at sustainability improvements in the production of multiple commodities, such as palm oil, pineapple, and rubber. The regional project involves the local government with the aim to establish strong local regulations to push for sustainable transformation, as well as other local key actors and civil societies. "
          Open source document
        • Risk assessments for forest risk
          Yes
          2/2
          Risk assessments for forest risk
          Yes
          2/2
          How frequently are assessments conducted?: Not specified
          "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" [...] 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."
          Open source document
        • Operations assessed to comply with law
          Yes
          2/2
          Operations assessed to comply with law
          Yes
          2/2
          "Neste requires compliance with all applicable laws and aspires for international best practice. In addition, Neste obliges suppliers to meet or exceed the additional requirements that are specified in this document. Where national law and Neste requirements differ, Neste will follow the higher standard. [...] All Neste suppliers that supply feedstock and residues for bio-based products are required to provide comprehensive information and submit to a regular due diligence process. This enables Neste to strengthen its understanding of positive and negative impacts linked to its activities and those of its suppliers. Key priorities and critical issues are identified from this continuous evaluation, informing priorities for engagement and action. [...] Neste continuously strengthens practices and puts in place processes to identify and engage with suppliers to mitigate the risk of environmental and social impacts in their supply chains. The selection of new suppliers, as well as decisions to continue existing business relationships, is influenced by results of these efforts to take mitigating actions."
          Open source document
        • Accessible grievance mechanism
          Yes, and published details of any grievances within the last two years (2019-2021)
          4/4
          Accessible grievance mechanism
          Yes, and published details of any grievances within the last two years (2019-2021)
          4/4
          Which issues does the grievance mechanism cover?: Social; Environmental

          What is the nature of the grievance mechanism used by the company (own mechanism, that of external company, internationally recognised mechanism, etc.)?: ethics hotline and online system
          "Incidents with respect to, or related to, Neste’s operations involving a violation of this Principle, can be reported to the whistleblowing system “Ethics Online23” at Neste’s website. The whistleblowing system is available to everyone. Complaints can be submitted online or via phone to Ethics Online. Complaints will be investigated confidentially by Neste. Actions for and progress on grievance resolution will be communicated via the Neste website.  [...] From 2020 onwards, we can put further purchases on hold while we investigate serious, credible allegations. In 2020, we applied this to 3 cases, the details of which can be found in our monthly Grievance reports"
          Open source document
          Open source document
        • Report volumes of commodity
          Reporting total volume
          2/2
          Report volumes of commodity
          Reporting total volume
          2/2
          Total/partial volume reported: 1,336,756 tons
          Neste report in their 2019 ACOP that in 2019, they used 1,336,756 tons of palm oil, of which 100% was ISCC-certified. Elsewhere, they report that 34% of their palm oil was RSPO Identity Preserved, and 59% was RSPO Mass Balance.
          Open source document
          Open source document
        • Report verified volumes of commodity
          100%
          6/6
          Report verified volumes of commodity
          100%
          6/6
          What is the certified volume?: 1,336,756 tons

          What third-party verification is used?: ISCC and RSPO

          For what percent of the company's supply volume is third-party verification of performance relative to commitments conducted?: 100%
          Neste report in their 2019 ACOP that in 2019, they used 1,336,756 tons of palm oil, of which 100% was ISCC-certified. Elsewhere, they report that 34% of their palm oil was RSPO Identity Preserved, and 59% was RSPO Mass Balance. [...] "6 palm oil suppliers, 38 palm oil mills, 110 plantations, 14,403 smallholders, 100% of suppliers committed to no-deforestation"
          Open source document
          Open source document
        • Upstream: Monitor compliance with human rights
          Yes, commit to monitoring compliance with labour/worker rights
          2/4
          Upstream: Monitor compliance with human rights
          Yes, commit to monitoring compliance with labour/worker rights
          2/4
          "All Neste suppliers that supply feedstock and residues for bio-based products are required to provide comprehensive information and submit to a regular due diligence process. This enables Neste to strengthen its understanding of positive and negative impacts linked to its activities and those of its suppliers. Key priorities and critical issues are identified from this continuous evaluation, informing priorities for engagement and action. [...] Neste continuously strengthens practices and puts in place processes to identify and engage with suppliers to mitigate the risk of environmental and social impacts in their supply chains. The selection of new suppliers, as well as decisions to continue existing business relationships, is influenced by results of these efforts to take mitigating actions."
          Open source document
        • Downstream: Publishing supplier lists
          Yes, report direct suppliers
          2/4
          Downstream: Publishing supplier lists
          Yes, report direct suppliers
          2/4
          For what percent of suppliers' production areas are point locations disclosed?: 0%

          Does the company disclose location of suppliers' production areas or primary processing sites?: No just a map

          From what country(ies) does the company source material?: Indonesia and Malaysia
          Neste lists their Palm oil mills and their PFAD refineries on their website via a traceability portal "During July through December, 2020, Neste sourced palm oil from 32 supplier mills. The vast majority of these mills are located in Indonesia (26); six are located in Malaysia."
          Open source document
          Open source document
        • Downstream: Monitor compliance in supply chain
          Yes, for its suppliers production or primary processing operations in its supply chains
          4/4
          Downstream: Monitor compliance in supply chain
          Yes, for its suppliers production or primary processing operations in its supply chains
          4/4
          Details of monitoring: Using internal monitoring and verification systems; Using third party verification

          How frequently is compliance assessed?: Not specified
          "Already in 2015, all our palm oil suppliers committed themselves to No Deforestation policies including their third-party sourcing. We have conducted environmental risk assessments of our palm oil suppliers and engaged in a dialogue with our suppliers regarding managing the risks at their plantations. We have offered training to our suppliers to ensure sufficient understanding of our policies and guidelines and to ensure their efficient implementation. We have continued monitoring the progress of their implementation process. We have been developing a Supplier Sustainability Portal in collaboration with our suppliers to digitalize and enhance our supplier engagement and monitoring." [....] "Recognizing that Neste’s business activities and those of its suppliers carry risk of causing negative environmental and social impacts, Neste established an approach to manage risk across its business. This includes building an understanding of where and how responsible production may arise and then taking appropriate action to mitigate such risk."
          Open source document
          Open source document
        • Downstream: Reporting hectares of deforestation
          No
          0/4
        • Downstream: Engagement with non-compliant suppliers
          Engage with suppliers with a time-bound threat of exclusion
          2/2
          Downstream: Engagement with non-compliant suppliers
          Engage with suppliers with a time-bound threat of exclusion
          2/2
          Does the company engage non-compliant indirect suppliers in order to address and remedy non-compliance?: No

          What type of support does the company offer to its suppliers to help them achieve compliance with commitments?: action plans and collaboration

          What criteria does the policy specify for blacklisting or exclusion?: Non compliance with their deforestation commitments
          "Engagement and cooperation with the supplier is our primary way of action in case of any shortcomings. Ending purchases does not resolve problems; engagement and cooperation provide the most efficient means to resolve any problems. [...] We take all allegations on suspected sustainability violations and shortcomings seriously and investigate the cases. Upon learning about credible serious allegations concerning our suppliers, we put all further purchases from those suppliers or supply chains on hold while we investigate the cases.  [...]  providing an assessment and, if necessary, a supply chain audit carried out by Neste's or partner's sustainability experts locally, requiring a detailed plan for corrective actions from the supplier; In the case of palm suppliers, submitting the shortcoming to the RSPO's grievance process either by us or by the counterparty involved; cooperating with the supplier and other stakeholders to develop the operations; discontinuing purchases if we do not see adequate progress or if the supplier loses their certificate."
          Open source document
        • Downstream: Disclosure of non-compliant suppliers
          Yes, engaged
          1/2
          Downstream: Disclosure of non-compliant suppliers
          Yes, engaged
          1/2
          Does the company have a list of blacklisted or otherwise excluded suppliers or producers?: Yes
          "In case we learn about shortcomings in our renewable raw material supply chains, engagement and cooperation with the supplier is our primary way of action: we believe they provide the most efficient means to resolve any problems. We engage regularly with our suppliers in terms of sustainability policy development, due diligence, traceability to plantation, trainings and workshops, grievance management, etc" [...] Neste lists their grievances in monthly reporting.
          Open source document
          Open source document
    • Soy
      38/88
      • Commitment Strength
        8/20
        • Commitment to protect priority forests
          9/11
          • Commitment details
            Zero-gross deforestation
            5.3/8
            Commitment to protect priority forests
            Zero-gross deforestation
            5.3/8
            (For downstream soy companies only) Does the company commitment also explicitly apply to hidden/indirect soy?: Supply chain includes no indirect soy
            "No-deforestation - Neste has a clear stand against any actions that would cause deforestation. We are committed to preventing deforestation in our supply chains and require the same from all our raw material suppliers [...] Neste commits to source traceable and sustainable feedstocks that either meet credible third-party certification or will be verified in accordance with Neste's own policies and principles for sustainability as well as the legislation of the country in which it is produced and to which it will be supplied. [...] Such land use change can be the conversion of forested areas, wetlands or grasslands into cultivation areas; and other natural eco-systems where High Conservation Values (HCV) or High Carbon Stock (HCS) are present, or where the Free, Prior and Informed Consent (FPIC) of local communities and traditional land rights holders have not been given [...] This requirement covers soy "Vegetable oil processing residue (PFAD), crude palm oil, rapeseed oil, soybean oil, jatropha oil, camelina oil, used cooking oil, animal fat, fish oil, tall oil and any other feedstock coming into production"
            Open source document
          • Commitment applies to all regions, suppliers and operation
            Yes
            2/2
            Commitment applies to all regions, suppliers and operation
            Yes
            2/2
            "No-deforestation - Neste has a clear stand against any actions that would cause deforestation. We are committed to preventing deforestation in our supply chains and require the same from all our raw material suppliers [...] Neste commits to source traceable and sustainable feedstocks that either meet credible third-party certification or will be verified in accordance with Neste's own policies and principles for sustainability as well as the legislation of the country in which it is produced and to which it will be supplied. [...] Such land use change can be the conversion of forested areas, wetlands or grasslands into cultivation areas; and other natural eco-systems where High Conservation Values (HCV) or High Carbon Stock (HCS) are present, or where the Free, Prior and Informed Consent (FPIC) of local communities and traditional land rights holders have not been given [...] This requirement covers soy "Vegetable oil processing residue (PFAD), crude palm oil, rapeseed oil, soybean oil, jatropha oil, camelina oil, used cooking oil, animal fat, fish oil, tall oil and any other feedstock coming into production"
            Open source document
          • Target date
            Current/achieved
            1/1
            Target date
            Current/achieved
            1/1
            "No-deforestation - Neste has a clear stand against any actions that would cause deforestation. We are committed to preventing deforestation in our supply chains and require the same from all our raw material suppliers [...] Neste commits to source traceable and sustainable feedstocks that either meet credible third-party certification or will be verified in accordance with Neste's own policies and principles for sustainability as well as the legislation of the country in which it is produced and to which it will be supplied. [...] Such land use change can be the conversion of forested areas, wetlands or grasslands into cultivation areas; and other natural eco-systems where High Conservation Values (HCV) or High Carbon Stock (HCS) are present, or where the Free, Prior and Informed Consent (FPIC) of local communities and traditional land rights holders have not been given [...] This requirement covers soy "Vegetable oil processing residue (PFAD), crude palm oil, rapeseed oil, soybean oil, jatropha oil, camelina oil, used cooking oil, animal fat, fish oil, tall oil and any other feedstock coming into production"
            Open source document
          • Interim target date
            NA (target date current or achieved or 2022)
            0.5/0.5
            Interim target date
            NA (target date current or achieved or 2022)
            0.5/0.5
            "No-deforestation - Neste has a clear stand against any actions that would cause deforestation. We are committed to preventing deforestation in our supply chains and require the same from all our raw material suppliers [...] Neste commits to source traceable and sustainable feedstocks that either meet credible third-party certification or will be verified in accordance with Neste's own policies and principles for sustainability as well as the legislation of the country in which it is produced and to which it will be supplied. [...] Such land use change can be the conversion of forested areas, wetlands or grasslands into cultivation areas; and other natural eco-systems where High Conservation Values (HCV) or High Carbon Stock (HCS) are present, or where the Free, Prior and Informed Consent (FPIC) of local communities and traditional land rights holders have not been given [...] This requirement covers soy "Vegetable oil processing residue (PFAD), crude palm oil, rapeseed oil, soybean oil, jatropha oil, camelina oil, used cooking oil, animal fat, fish oil, tall oil and any other feedstock coming into production"
            Open source document
        • Commitment to a traceable supply chain
          0/9
          • Commitment details
            No traceability commitment
            0/5.3
          • Commitment applies to all regions, suppliers and operation
            No
            0/2
          • Target date
            No target date
            0/1
          • Interim target date
            No
            0/0.5
      • Social Considerations
        11/18
        • Labour rights in the supply chain
          Yes
          4/4
          Labour rights in the supply chain
          Yes
          4/4
          Details of commitment: ILO; UNGP; UN Declaration for HR; Discrimination; Forced labour; Child labour; Freedom of association
          "Neste respects the rights enshrined in the Universal Declaration of Human Rights and the fundamental rights in the eight core conventions of the International Labor Organization which form the basis for Neste’s Human Rights Commitment. The Suppliers are expected to respect the same rights and, at a minimum, the Supplier shall: [...] Not employ any workers younger than 15 years of age, protect workers of ages 15 - 17 from work which, by its nature or the circumstances in which it is carried out, is likely to harm their health, safety or morals, and establish systems to ensure fulfilment of and follow-up on these requirements; [...] not use any compulsory or forced labor, and ensure that recruitment fees and associated costs are not borne by workers [...] provide equal opportunity and treatment in employment, without regard to race, color, religion, sex, political opinion, national extraction, social origin or any other similar distinction which is not based on the inherent requirements of the work; [...] not tolerate any type of harassment of its employees whether direct or indirect, physical or verbal; and[...] recognize and respect employees’ right to organize freely and bargain collectively."
          Open source document
        • Inclusion of small-scale farmers
          No
          0/4
        • Gender equality in the supply chain
          Commitment to address gender related labour rights including discrimination and harassment
          1/4
          Gender equality in the supply chain
          Commitment to address gender related labour rights including discrimination and harassment
          1/4
          "Suppliers Must - provide equal opportunity and treatment in employment, without regard to race, color, religion, sex, political opinion, national extraction, social origin or any other similar distinction which is not based on the inherent requirements of the work"
          Open source document
        • Commitment to remediation
          Yes
          2/2
          Commitment to remediation
          Yes
          2/2
          Type of harm covered: Social harm; Environmental harm
          "Remediation plans Neste acts upon findings from its due diligence and mitigation work with suppliers to remedy where impacts are found to occur. In the case of non-responsiveness from the supplier, and as a last resort, Neste will terminate a commercial relationship where remediation cannot be achieved."
          Open source document
        • Commitment to ensure Free, Prior and Informed Consent
          Yes, the company commits to securing FPIC prior to acquiring new interests, developments, or expansions
          4/4
          Commitment to ensure Free, Prior and Informed Consent
          Yes, the company commits to securing FPIC prior to acquiring new interests, developments, or expansions
          4/4
          "Neste commits to not source from areas where renewable feedstock production has led to adverse land use change and habitat conversion after 19 December 20071415. Such land use change can be the conversion of forested areas, wetlands or grasslands into cultivation areas; and other natural eco-systems where High Conservation Values (HCV) or High Carbon Stock (HCS) are present, or where the Free, Prior and Informed Consent (FPIC) of local communities and traditional land rights holders have not been given. [...] Neste is committed to ensure that land use for biomass production shall be conducted with respect to communal and customary land rights and where local and indigenous peoples have given consent to use land through a credible and documented FPIC process"
          Open source document
        • Commitment to resolve land conflicts
          No
      • Reporting and Implementation
        18/50
        • Reporting against commitments
          0/3
          • Commitment to protect priority forests
            No
            0/2.5
          • Commitment to a traceable supply chain
            No
            0/2.5
        • Reporting is independently verified
          0/2
          • Commitment to protect priority forests
            No
            0/1.5
          • Commitment to a traceable supply chain
            No
            0/1.5
        • Suppliers aligned with deforestation commitments across supply chain
          Yes, required
          2/2
          Suppliers aligned with deforestation commitments across supply chain
          Yes, required
          2/2
          "No-deforestation - Neste has a clear stand against any actions that would cause deforestation. We are committed to preventing deforestation in our supply chains and require the same from all our raw material suppliers"
          Open source document
        • Deforestation cut off date
          Yes, for all sourcing regions/operations
          2/2
          Deforestation cut off date
          Yes, for all sourcing regions/operations
          2/2
          What cut-off date is specified?: 2007
          "Neste commits to not source from areas where renewable feedstock production has led to adverse land use change and habitat conversion after 19 December 2007"
          Open source document
        • Collaborative actions
          No
          0/2
        • Risk assessments for forest risk
          Yes
          2/2
          Risk assessments for forest risk
          Yes
          2/2
          How frequently are assessments conducted?: Not specified
          "Recognizing that Neste’s business activities and those of its suppliers carry risk of causing negative environmental and social impacts, Neste established an approach to manage risk across its business. This includes building an understanding of where and how responsible production may arise and then taking appropriate action to mitigate such risk [...] These principles are applicable to all renewable feedstocks used by Neste [including soy]"
          Open source document
        • Operations assessed to comply with law
          Yes
          2/2
          Operations assessed to comply with law
          Yes
          2/2
          "Neste requires compliance with all applicable laws and aspires for international best practice. In addition, Neste obliges suppliers to meet or exceed the additional requirements that are specified in this document. Where national law and Neste requirements differ, Neste will follow the higher standard. [...] All Neste suppliers that supply feedstock and residues for bio-based products are required to provide comprehensive information and submit to a regular due diligence process. This enables Neste to strengthen its understanding of positive and negative impacts linked to its activities and those of its suppliers. Key priorities and critical issues are identified from this continuous evaluation, informing priorities for engagement and action. [...] Neste continuously strengthens practices and puts in place processes to identify and engage with suppliers to mitigate the risk of environmental and social impacts in their supply chains. The selection of new suppliers, as well as decisions to continue existing business relationships, is influenced by results of these efforts to take mitigating actions."
          Open source document
        • Accessible grievance mechanism
          Yes, and published details of any grievances within the last two years (2019-2021)
          4/4
          Accessible grievance mechanism
          Yes, and published details of any grievances within the last two years (2019-2021)
          4/4
          What is the nature of the grievance mechanism used by the company (own mechanism, that of external company, internationally recognised mechanism, etc.)?: ethics hotline and online system

          Which issues does the grievance mechanism cover?: Social; Environmental
          "Incidents with respect to, or related to, Neste’s operations involving a violation of this Principle, can be reported to the whistleblowing system “Ethics Online23” at Neste’s website. The whistleblowing system is available to everyone. Complaints can be submitted online or via phone to Ethics Online. Complaints will be investigated confidentially by Neste. Actions for and progress on grievance resolution will be communicated via the Neste website.  [...] From 2020 onwards, we can put further purchases on hold while we investigate serious, credible allegations. In 2020, we applied this to 3 cases, the details of which can be found in our monthly Grievance reports"
          Open source document
          Open source document
        • Report volumes of commodity
          No reporting
          0/2
        • Report verified volumes of commodity
          No disclosure
          0/6
        • Upstream: Monitor compliance with human rights
          Yes, commit to monitoring compliance with labour/worker rights
          2/4
          Upstream: Monitor compliance with human rights
          Yes, commit to monitoring compliance with labour/worker rights
          2/4
          "All Neste suppliers that supply feedstock and residues for bio-based products are required to provide comprehensive information and submit to a regular due diligence process. This enables Neste to strengthen its understanding of positive and negative impacts linked to its activities and those of its suppliers. Key priorities and critical issues are identified from this continuous evaluation, informing priorities for engagement and action. [...] Neste continuously strengthens practices and puts in place processes to identify and engage with suppliers to mitigate the risk of environmental and social impacts in their supply chains. The selection of new suppliers, as well as decisions to continue existing business relationships, is influenced by results of these efforts to take mitigating actions."
          Open source document
        • Downstream: Publishing supplier lists
          No
          0/4
        • Downstream: Monitor compliance in supply chain
          Yes, for its suppliers
          3/4
          Downstream: Monitor compliance in supply chain
          Yes, for its suppliers
          3/4
          Details of monitoring: Using internal monitoring and verification systems

          What percentage of the company's supply chain volume does that represent?: 0 Not specified

          How frequently is compliance assessed?: Not specified
           "Neste demonstrates its commitment and addresses its environmental and social impacts by carrying out sustainability due diligence in its supply base. Neste actively engages with suppliers and other relevant stakeholders to seek collaboration for jointly developing innovative solutions for continuous improvement and to resolve grievances where they arise."
          Open source document
        • Downstream: Reporting hectares of deforestation
          No
          0/4
        • Downstream: Engagement with non-compliant suppliers
          Engage with suppliers but with no time-bound threat of exclusion
          1/2
          Downstream: Engagement with non-compliant suppliers
          Engage with suppliers but with no time-bound threat of exclusion
          1/2
          What criteria does the policy specify for blacklisting or exclusion?: Non compliance, and not responding to engagement 

          Does the company engage non-compliant indirect suppliers in order to address and remedy non-compliance?: No
          "Neste acts upon findings from its due diligence and mitigation work with suppliers to remedy where impacts are found to occur. In the case of non-responsiveness from the supplier, and as a last resort, Neste will terminate a commercial relationship where remediation cannot be achieved."
          Open source document
        • Downstream: Disclosure of non-compliant suppliers
          No disclosure
          0/2
  • Commitment strength
    13/20
    Avg. score
  • Reporting and Implementation
    28/50
    Avg. score
  • Social considerations
    13/18
    Avg. score

Profile

Neste Oil OYJ (Neste) is an oil refining company producing traditional fuels such as gasoline and diesel as well as renewable products. The company’s main market is the Baltic region and it has refineries in Finland, the Netherlands and Singapore. Neste is one of the world’s largest producers of biodiesel. Palm oil is a major ingredient of the company’s biofuels. Neste Corp. is selected as a powerbroker for palm oil and soy.

Sector
Industry sector 
Biofuel
Segments
Manufacturer
HQ
HQ 
Finland
Company Type
Company type 
Public listed
Collective Commitments
Consumer Goods Forum member
New York Declaration on Forests signatory

How we assess the Forest 500

To ensure deforestation free supply chains, companies need to adopt and implement timebound and measurable policies for forest risk commodities.

All assessments use policies published on company websites, some links may have changed or been removed since the time of assessment.

Full corporate sector performance data Forest 500 assessment methodology

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Disclaimer

This assessment has been carried out following the methodology developed for the Forest 500 project, available here. Please see our disclaimer applicable to all information contained within this site and our terms and conditions for use of data presented on this site.

All assessments use policies published on company and financial institution websites, and while we endeavor to keep them updated some links may have changed or been removed since the time of assessment.

Please contact us with any concerns or feedback about this or other assessments included in the Forest 500.