Neste Corp.

"SUPPLIER CODE OF CONDUCT [...] 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: 4.1 adhere to applicable laws regarding working hours, minimum wages, overtime, sufficient breaks and rest time, sick leave and annual holidays, as well as parental leave and mandatory benefits (e.g. social security), and have appropriate records of these in place; 4.2. ensure that all employees are made aware of the key terms of their employment prior to commitment to work; 4.3 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; 4.4 not use any compulsory or forced labor, and ensure that recruitment fees and associated costs are not borne by workers; 4.5 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; 4.6. not tolerate any type of harassment of its employees whether direct or indirect, physical or verbal; and 4.7 recognise and respect employees’ right to organize freely and bargain collectively."

"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 2021, our supply chain included approximately 13,200 Indonesian palm oil smallholders, organized into cooperatives. "

"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"

"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 whereremediation cannot be achieved."

"Community Land Rights Neste is committed to ensure that land use for biomass production shall be conducted with respect to communal and customaryland rights and where local and indigenous peoples have given consent to use land through a credible and documented FPIC 2021 process. Neste requires suppliers to assess, monitor and mitigate any social and environmental impacts from their operations.[...] Where indigenous and local communities are influenced and impacted by land use change, Neste’s suppliers are required toensure food security and secure that sustainable livelihood options are respected. Through FPIC processes with participatorySocial Impact Assessments and land use planning, communities’ food security is preserved or strengthened in order to assuretheir land use choice and future food security options."

"Since 2017, we have been working towards a target of developing traceability for our entire PFAD supply chain to palm oil plantations. Working towards the target has required us to map large parts of previously unmapped food industry palm oil supply chains, but we have made significant progress. During 2021, we were able to independently map and validate 100% (99.97%) of our PFAD supply chain to the supplying palm oil mills and 85% (85%) all the way to plantations. This significantly surpasses the fuel industry’s current regulatory requirement for residue raw materials, or in the case of PFAD, traceability to the palm oil refinery. When mapping the supply chain to the plantations, publicly available data (e.g. on RSPO, ISCC, ISPO certifications) and supplier reporting have been used." [...] "100% Palm oiltraceableto plantation"

"Traceability to plantations (TTP) method Our aim is to develop a commonly accepted and adopted approach to tracing palm oil-based waste and residues, such as PFAD. For this, we have continued to develop the “traceability to plantations” (TTP) approach. The TTP approach gathers data from suppliers sourcing raw materials in higher-risk areas, such as those in close proximity to forests, uncultivated peat and protected areas. In previous years, we have engaged with palm oil and PFAD suppliers to introduce the approach and gather feedback. Building industry-wide acceptance for the approach could significantly improve the overall transparency of palm oil supply chains. Due to the ongoing pandemic situation, most of our usual in-person supplier engagements were replaced by online meetings. We continue to engage with our suppliers via virtual platforms and video conferences for sustainability policy development, due diligence, traceability, training and workshops, grievance management, third-party suppliers, transparency and reporting, among others. We have online calls on a quarterly basis and discuss working closely with our suppliers on monitoring their time bound action plans."

"Neste is committed to combating deforestation and requires the same from its suppliers"

"Land Use Change Neste commits to not source from areas where renewable feedstock production has led to adverse land use change and habitatconversion after 19 December 2007. Such land use change can be the conversion of forested areas, wetlands or grasslandsinto cultivation areas; and other natural eco-systems where High Conservation Values (HCV) or High Carbon Stock (HCS) arepresent, or where the Free, Prior and Informed Consent (FPIC) of local communities and traditional land rights holders havenot been given. i. Forests - Neste does not accept the conversion of forested land to biomass production where HCV and HCS values arefound. ii. Wetlands or peatlands - Neste does not accept new development of wetlands or peatlands immaterial of size and depth oforganic substrates. Neste requires that current cultivation areas on wetlands and peatlands are responsibly managed,safeguarding HCV and HCS values. Neste encourages, and will monitor, peat restoration where it is feasible or required.iii. Grasslands - Neste will not source feedstocks originating from areas where HCV and HCS values are found or that havebeen converted from highly biodiverse natural grasslands after 19 December 2007"

"Neste cooperates with Daemeter, Proforest, and the Siak government as well as many other global brands to make a large-scale transformative sustainability impact in the Siak region in Indonesia.The Siak Pelalawan Programme 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.In 2021, the program focused on village engagement as the smallholders are the crucial component to the success of the initiative in this landscape. For instance, in seven targeted villages various training was conducted such as best management practices of oil palm in peatland, fire management, oil palm good agricultural practices, and nature positive farming at the village level. Also, village facilitators were recruited, trained, and deployed in each of the villages. "

"Neste cooperates with Daemeter, Proforest, and the Siak government as well as many other global brands to make a large-scale transformative sustainability impact in the Siak region in Indonesia.The Siak Pelalawan Programme 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.In 2021, the program focused on village engagement as the smallholders are the crucial component to the success of the initiative in this landscape. For instance, in seven targeted villages various training was conducted such as best management practices of oil palm in peatland, fire management, oil palm good agricultural practices, and nature positive farming at the village level. Also, village facilitators were recruited, trained, and deployed in each of the villages. "

"We continued engaging with PFAD-supplying palm oil refineries to ensure that their operations and those of their supplying mills are in compliance with our sustainability policies and principles. We have also evaluated each palm oil mill for environmental risks as part of our proactive approach to preventing deforestation. In 2021, we focused on improving our suppliers’ No Deforestation, Peat and Exploitation (NDPE) Policies, due diligence processes, traceability to plantation data collection, human rights, grievance mechanism, among others. We also continued to work with our partner Consortium of Resource Experts (CORE) and palm oil suppliers to improve traceability and sustainability within the industry [...] "In 2021, we updated our Neste Traceability Dashboard to provide the latest data regarding our palm and palm fatty acid distillate (PFAD) supply chains. By the end of 2021, we had mapped hundred percent of our PFAD supply chain to the palm oil mills supplying the palm oil refineries where PFAD is extracted during vegetable oil refining. In 2021, we continued our PFAD supply chain mapping efforts in collaboration with palm oil suppliers and sustainability specialists from the Consortium of Resource Experts (CORE). With CORE, we continued conducting risk assessments of palm oil mills supplying palm oil to refineries and engaged with suppliers to further enhance their No-Deforestation, Peat and Exploitation (NDPE) pledge. We continued developing our Supplier Sustainability Portal to digitalize renewable raw material supplier evaluation, monitoring and engagement."

"In line withthe UN Guiding Principles on Business and Human Rights, Neste respects the rights and values of people in its supplychains. Neste requires compliance with all applicable laws and aspires for international best practice. In addition, Neste obligessuppliers to meet or exceed the additional requirements that are specified in this document. Where national law and Nesterequirements differ, Neste will follow the higher standard." [...] "Compliance with laws and regulations The Supplier shall comply with all laws and regulations applicable to its operations. Should a requirement of this Code contradict national laws or regulations the Supplier shall comply with whichever is more stringent.[...] fulfil applicable environmental requirements set forth in relevant laws, regulations and environmental permits in the jurisdiction where the Supplier operates" [...] "Meeting the sustainability and human rights criteria as defined in Neste Supplier Code of Conduct: • Evaluating counterparty's security and reputation risks alongside an extensive sustainability assessment • Collecting information on our climate change impact annually • Conducting both external and internal audits. Helping partners to perform corrective actions in cases of non-compliances • Arranging annual supplier sustainability workshops, trainings and seminars to share information and support capacity building of the suppliers • Collaborating closely with our contractors and suppliers to ensure high level of safety, efficiency and quality"

"Ensuring sustainability of our renewable raw material supply chain is of utmost importance to us. We are committed to sourcing only sustainably-produced renewable raw materials; therefore, all of our contracts with renewable raw material suppliers include strict terms on sustainability.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. We also work closely with locally-operating sustainability specialists, such as the Consortium of Resource Experts (CORE) consisting of experts from Daemeter and Proforest, to monitor our supply chains.If you wish to report a concern or submit a complaint, please do so via phone or online service Ethics Online. Updates on the grievances (i.e. concerns or complaints) related to our renewable raw material supply chain "

"2021 palm oil usage236 kt; over 7% of renewablematerial inputs globally"

"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."

Neste lists their Palm oil mills and their PFAD refineries on their website via a traceability portal All the palm oil we used was fully traceable to the plantation level, as it has been since 2007. It was also 100% certified, as it has been since 2013. "We source palm oil only from carefully selected suppliers and from known and documented sources. We know the exact location and land use history of every oil palm plantation supplying us. Therefore, we know that the plantations supplying us have not expanded cultivation into prohibited areas and do not have any intention to do so. Read more about our efforts to protect forests and prevent deforestation here.Our palm oil supply chain July through December, 2021During July through December, 2021, Neste sourced palm oil from 11 supplier mills. All mills are located in Indonesia."

"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" [...] "All Neste suppliers that supply feedstock and residues for bio-based products are required to provide comprehensive informationand submit to a regular due diligence process. This enables Neste to strengthen its understanding of positive and negativeimpacts linked to its activities and those of its suppliers. Key priorities and critical issues are identified from this continuousevaluation, 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 ofenvironmental and social impacts in their supply chains. The selection of new suppliers, as well as decisions to continue existingbusiness relationships, is influenced by results of these efforts to take mitigating actions. [...] 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 whereremediation cannot be achieved.[...] All Neste suppliers that supply feedstock and residues for bio-based products are required to provide comprehensive informationand submit to a regular due diligence process. This enables Neste to strengthen its understanding of positive and negativeimpacts linked to its activities and those of its suppliers. Key priorities and critical issues are identified from this continuousevaluation, informing priorities for engagement and action."

"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. We also work closely with locally-operating sustainability specialists, such as the Consortium of Resource Experts (CORE) consisting of experts from Daemeter and Proforest, to monitor our supply chains."

"SUPPLIER CODE OF CONDUCT [...] 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: 4.1 adhere to applicable laws regarding working hours, minimum wages, overtime, sufficient breaks and rest time, sick leave and annual holidays, as well as parental leave and mandatory benefits (e.g. social security), and have appropriate records of these in place; 4.2. ensure that all employees are made aware of the key terms of their employment prior to commitment to work; 4.3 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; 4.4 not use any compulsory or forced labor, and ensure that recruitment fees and associated costs are not borne by workers; 4.5 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; 4.6. not tolerate any type of harassment of its employees whether direct or indirect, physical or verbal; and 4.7 recognise and respect employees’ right to organize freely and bargain collectively."

"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"

"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 whereremediation cannot be achieved."

"Community Land Rights Neste is committed to ensure that land use for biomass production shall be conducted with respect to communal and customaryland rights and where local and indigenous peoples have given consent to use land through a credible and documented FPIC 2021 process. Neste requires suppliers to assess, monitor and mitigate any social and environmental impacts from their operations.[...] Where indigenous and local communities are influenced and impacted by land use change, Neste’s suppliers are required toensure food security and secure that sustainable livelihood options are respected. Through FPIC processes with participatorySocial Impact Assessments and land use planning, communities’ food security is preserved or strengthened in order to assuretheir land use choice and future food security options."

"Neste is committed to combating deforestation and requires the same from its 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"

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]"

"In line withthe UN Guiding Principles on Business and Human Rights, Neste respects the rights and values of people in its supplychains. Neste requires compliance with all applicable laws and aspires for international best practice. In addition, Neste obligessuppliers to meet or exceed the additional requirements that are specified in this document. Where national law and Nesterequirements differ, Neste will follow the higher standard." [...] "Compliance with laws and regulations The Supplier shall comply with all laws and regulations applicable to its operations. Should a requirement of this Code contradict national laws or regulations the Supplier shall comply with whichever is more stringent.[...] fulfil applicable environmental requirements set forth in relevant laws, regulations and environmental permits in the jurisdiction where the Supplier operates" [...] "Meeting the sustainability and human rights criteria as defined in Neste Supplier Code of Conduct: • Evaluating counterparty's security and reputation risks alongside an extensive sustainability assessment • Collecting information on our climate change impact annually • Conducting both external and internal audits. Helping partners to perform corrective actions in cases of non-compliances • Arranging annual supplier sustainability workshops, trainings and seminars to share information and support capacity building of the suppliers • Collaborating closely with our contractors and suppliers to ensure high level of safety, efficiency and quality"

"Ensuring sustainability of our renewable raw material supply chain is of utmost importance to us. We are committed to sourcing only sustainably-produced renewable raw materials; therefore, all of our contracts with renewable raw material suppliers include strict terms on sustainability.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. We also work closely with locally-operating sustainability specialists, such as the Consortium of Resource Experts (CORE) consisting of experts from Daemeter and Proforest, to monitor our supply chains.If you wish to report a concern or submit a complaint, please do so via phone or online service Ethics Online. Updates on the grievances (i.e. concerns or complaints) related to our renewable raw material supply chain "

"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."

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."

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."