Climate Change Data

Environmental Metrics

ESG Focus Areas

• Cleaner traffic fuel solutions
• Environmental responsibility
• Social responsibility
• Financial responsibility
• Safety

Environmental Achievements

• Reduced greenhouse gas emissions generated by traffic and transport by an amount equivalent to eliminating more than 310,000 diesel cars from the roads.
• ISCC certification of all NExBTL plants.
• Reduced the number of work-related injuries requiring medical attention by over 50%.
• Reduced the number of all leaks by over a third.

Social Achievements

• Launched five internal Value Creation Programs (Profitable Growth, Productivity, Renewable Feedstock, Customer Focus, and Winning Culture).
• Completed the sustainability certification process of its NExBTL refineries.
• Improved employee safety performance significantly; Total Recordable Injury Frequency (TRIF) fell to 2.3 from 4.7 in 2010.
• Extended its renewable raw material base from five inputs to eight.

Governance Achievements

• Carried out an extensive strategy dialogue during 2011, generating over 7,000 ideas from approx. 1,000 employees.
• Updated its vision to be “the preferred partner in cleaner traffic fuel solutions”.
• Divested various non-core businesses to focus on growth activities.

Climate Goals & Targets

Environmental Challenges

• Uncertainty over the likely development of the world economy.
• Geopolitical tensions in oil-producing countries.
• Fears about a worsening of the Eurozone crisis.
• New oil refining capacity coming on stream.
• Slow progress on sustainability legislation covering biofuels.
• Reputation-related risk associated with the use of palm oil.
• Tough competition around the Baltic.

Mitigation Strategies

• Completed major investment program aimed at increasing NExBTL renewable diesel and base oil capacity.
• Took steps to improve overall efficiency and productivity.
• Focused on partnerships and offering customers value-added solutions.
• Launched five Value Creation programs.
• Continued efforts to support legislative work in the area of renewable energy.
• Proactive and open communication, close cooperation and engagement with stakeholders.
• Strengthened its position in selected markets and expanded its station network.

Supply Chain Management

Supplier Audits: 19 suppliers audited by independent third-party experts

Responsible Procurement

• Sustainable development commitment, continuous improvement of HSSE performance, respect for human rights, promotion of occupational safety, good business ethics, international certification

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Changes in legislation on sustainable fuels

Opportunities

• Development of lower-emission products, growth in renewable fuels

Reporting Standards

Frameworks Used: GRI G3 guidelines (version 3.0)

Certifications: ISCC

Third-party Assurance: PricewaterhouseCoopers Oy

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• NExBTL renewable diesel, NExBTL renewable aviation fuel, new small-engine gasoline

Awards & Recognition

• Dow Jones Sustainability Index World, Global 100, Forest Footprint Disclosure, Asia Pacific Green Excellence Award

Environmental Metrics

ESG Focus Areas

• Customers
• Safety
• Personnel
• Society
• Climate and Resource efficiency
• Supply chain

Environmental Achievements

• Sales volumes of NExBTL renewable diesel increased by 165%, totaling 1.7 million tons
• Usage of waste- and residues-based raw materials increased by over 400,000 tons
• Greenhouse gas emissions in operations reduced by approximately 6%-points compared to 2011
• Energy savings of approximately 40 GWh achieved at Naantali refinery due to maintenance turnaround

Social Achievements

• Launched Neste Pro Diesel in Finland, the world’s first diesel fuel to comply with the toughest WWFC standard
• Improved employee survey results showing improvements in commitment and leadership
• Introduced Truck+ card-free fueling service in Finland
• Developed a wellbeing at work model integrated into management training

Governance Achievements

• Defined new key sustainability areas for Neste Oil
• Revamped Neste Oil brand to underline commitment to sustainable traffic and transport
• Strengthened public affairs organization with a permanent presence in Brussels

Climate Goals & Targets

Environmental Challenges

• Tough economic situation in Europe impacting demand for petroleum products
• Intensified competition among oil refiners in the EU
• Fluctuating vegetable oil prices and weak biodiesel margins
• Discrimination against NExBTL renewable diesel in some EU countries
• Increased competition in the premium-quality renewable diesel market
• Safety performance fell short of targets in 2012
• Oil leak at rock cavern storage facility in Kajaani

Mitigation Strategies

• Implemented five Value Creation programs to improve performance
• Focused on specializing in diesel and premium-quality base oil
• Developed separate inventory monitoring system for the US market
• Improved supply chain efficiency through better logistics profitability and enhanced sales and procurement management practices
• Increased use of waste and residues in producing renewable fuels
• Developed improved methods for calculating life cycle greenhouse gas emissions
• Strengthened safety management and implemented 12 Safety Key Elements
• Took measures to clean up the oil leak in Kajaani and compensate local people

Supply Chain Management

Supplier Audits: 26 raw material suppliers audited in 2012

Responsible Procurement

• Strict sustainability criteria applied to suppliers; 100% traceability of renewable inputs; commitment to sustainable development principles; sustainability clause in commercial contracts

Climate-Related Risks & Opportunities

Physical Risks

• Oil spills

Transition Risks

• Changes in environmental legislation and biofuels legislation

Opportunities

• Developing and producing lower environmental impact products; increasing the use of these products among customers

Reporting Standards

Frameworks Used: GRI G3 guidelines (version 3.0)

Certifications: ISO 9001, ISO 14001, OHSAS 18001, ISCC, RSPO, EPA approval

Third-party Assurance: PricewaterhouseCoopers Oy

Sustainable Products & Innovation

• NExBTL renewable diesel, NExBTL renewable aviation fuel, NExBTL renewable naphtha, Neste Pro Diesel

Awards & Recognition

• Included in Dow Jones Sustainability Index, Global 100 list, STOXX® Global ESG Leaders Index, Forest Footprint Disclosure

Environmental Metrics

ESG Focus Areas

• Climate change
• Circular economy
• Human rights
• Safety
• Diversity and inclusion
• Supply chain sustainability

Environmental Achievements

• Reduced customers' greenhouse gas emissions by 10.0 MtCO2e in 2020 (compared to fossil diesel)
• Waste and residues accounted for 83% of total renewable raw material inputs globally
• Successfully processed 400 tons of liquefied plastic waste at an industrial scale
• Increased the use of wind power at Finnish production sites to nearly 30% by 2022
• Updated investment criteria to include GHG impact evaluation and internal carbon pricing (40 EUR/tCO2e)

Social Achievements

• Achieved best-ever occupational safety performance (TRIF 1.3)
• Employee engagement score of 70%
• 70% of employees felt happy working at Neste
• Implemented a large-scale change support program for employees affected by restructuring
• 110 employees received training on forced labor and vulnerability

Governance Achievements

• Updated Sustainability Policy to reflect strengthened ambition and plans
• Joined the Climate Pledge initiative
• Updated Supplier Code of Conduct
• Improved grievance processing procedures with monthly transparent updates
• Completed corporate-wide human rights impact assessment

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impacting demand for oil products and accelerating decline
• Declining demand for oil products
• Need to improve competitiveness of Oil Products business
• Challenges in securing sufficient volumes of waste and residue raw materials
• Difficulties in achieving full traceability in PFAD supply chain due to COVID-19

Mitigation Strategies

• Restructured refining operations in Finland, closing Naantali refinery
• Focus on terminal and harbor operations at Naantali
• Developing Porvoo refinery towards co-processing renewable and circular raw materials
• Acquisitions to strengthen renewable raw material sourcing and pretreatment capabilities (Mahoney Environmental, Count Terminal, Bunge's refinery plant)
• Implementing a large-scale change support program for employees affected by restructuring
• Developing and implementing credible compensation methods for remaining emissions to reach carbon neutrality

Supply Chain Management

Supplier Audits: 9 sustainability audits in 2020

Responsible Procurement

• Neste Supplier Code of Conduct
• Responsible Sourcing Principle
• Human Rights Commitment and Principles
• Sustainability due diligence process

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather

Transition Risks

• Regulatory changes
• Market shifts
• Changes in carbon emission trading schemes

Opportunities

• Growing demand for renewable products
• Development of energy-efficient products
• Development of low-carbon technologies

Reporting Standards

Frameworks Used: GRI Standards: Core option, UN Global Compact, TCFD recommendations

Certifications: ISCC Plus

Third-party Assurance: PricewaterhouseCoopers Oy

UN Sustainable Development Goals

• SDG 8
• SDG 9
• SDG 11
• SDG 12
• SDG 13
• SDG 17

Neste's activities contribute to these SDGs through renewable and circular solutions, reducing GHG emissions, promoting sustainable cities, responsible consumption and production, and fostering partnerships.

Sustainable Products & Innovation

• Neste MY Renewable Diesel
• Neste MY Sustainable Aviation Fuel
• Neste RE Renewable and Recycled

Awards & Recognition

• Dow Jones Sustainability Indices (14th consecutive year)
• CDP Climate change assessment (Leadership Category)
• Global 100 (3rd most sustainable company)

Environmental Metrics

ESG Focus Areas

• Climate
• Biodiversity
• Human rights
• Supply chain and raw materials

Environmental Achievements

• Reduced greenhouse gas emissions by 10.9 million tons compared to crude oil-based fuel.
• Waste and residues accounted for 92% of Neste’s total renewable raw material inputs globally.
• Successfully completed industrial-scale processing runs with 800 tons of liquefied waste plastic in Finland.
• Increased the use of renewable electricity at its Porvoo refinery in Finland.

Social Achievements

• Launched a new leadership development program, ‘We Lead’.
• Launched a new way of working, Smart Work.
• Joined the Consumer Goods Forum’s Human Rights Coalition.
• Recognized as a Leader in Global Child Forum’s global children’s rights and business benchmark.

Governance Achievements

• Renewed the Neste Code of Conduct.
• Established a Green Finance Framework and issued a EUR 500 million green bond.
• Developed a sustainability due diligence process for Oil Products suppliers.

Climate Goals & Targets

Environmental Challenges

• Pandemic disruptions.
• High input costs.
• Operational difficulties with wastewater treatment in Rotterdam due to increased use of waste and residue raw materials.
• Challenges in workforce availability in Singapore due to local COVID-19 restrictions.

Mitigation Strategies

• Implemented pandemic management activities, including enhancing the safety and wellbeing of people.
• Implemented a large-scale change support program for employees affected by refinery restructuring.
• Construction of a new wastewater treatment unit in Rotterdam (expected completion by end of 2023).
• Implemented comprehensive health security plan for the Porvoo refinery turnaround.

Supply Chain Management

Supplier Audits: 27 sustainability audits

Responsible Procurement

• Supplier Code of Conduct
• Responsible Sourcing Principle
• Human Rights Principle

Climate-Related Risks & Opportunities

Physical Risks

• Flooding

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Development of energy-efficient products
• Growth in renewable and circular solutions

Reporting Standards

Frameworks Used: GRI Standards: Core option, UN Global Compact, TCFD, SASB Oil & Gas Refining and Marketing Standards, AA1000 AccountAbility Principles

Certifications: ISCC Plus

Third-party Assurance: KPMG Oy Ab

UN Sustainable Development Goals

• SDG 7
• SDG 8
• SDG 9
• SDG 10
• SDG 11
• SDG 12
• SDG 13
• SDG 15
• SDG 17

Neste's activities contribute to these goals through renewable and circular solutions, responsible supply chain management, and commitment to human rights.

Sustainable Products & Innovation

• Neste MY Renewable Diesel
• Neste MY Sustainable Aviation Fuel
• Neste RE™

Awards & Recognition

• Fast Company's 2021 World Changing Ideas Awards
• Leader in Global Child Forum’s global children’s rights and business benchmark

Environmental Metrics

ESG Focus Areas

• Climate Change
• Biodiversity
• Human Rights
• Supply Chain Sustainability

Environmental Achievements

• Reduced customers' greenhouse gas emissions by 11.1 Mt CO2e
• Achieved 93.8% renewable electricity share of total purchased electricity
• 95% of total renewable raw material inputs globally were waste and residues
• Developed net positive biodiversity impact methodology for direct operations

Social Achievements

• 1,390 hours used for training employees on human rights policies
• 80% of employees understand how their work contributes to Neste's success
• Employee engagement score of 66
• 1,409 employees hired globally

Governance Achievements

• 33% women on the Board of Directors
• 95% completion rate for Neste Code of Conduct e-learning
• Published inaugural Green Finance Report
• Received A3 long-term issuer rating from Moody's

Climate Goals & Targets

Environmental Challenges

• Volatile business environment
• Geopolitical and macroeconomic events
• High fuel prices leading to review of renewable fuels obligation in some EU Member States
• Contractor safety performance

Mitigation Strategies

• Continued work on renewables growth strategy and transformation
• Strategic investments to increase renewables production capacity
• Development of new partnerships
• Safety engagement and communication program

Supply Chain Management

Supplier Audits: 118

Responsible Procurement

• Neste Supplier Code of Conduct
• Responsible Sourcing Principle
• Sustainability due diligence process

Climate-Related Risks & Opportunities

Physical Risks

• Raw materials availability
• Supply chain disruptions
• Asset damage

Transition Risks

• Stringent competition for key raw materials
• Regulatory changes limiting competitiveness of renewable fuels
• Alternative technology development

Opportunities

• Accelerated global demand for renewable and circular products
• Expansion to new markets
• Optimization across feedstocks, countries and customer sectors

Reporting Standards

Frameworks Used: GRI, TCFD, SASB, UNGC

Third-party Assurance: KPMG Oy Ab

UN Sustainable Development Goals

• SDG 7
• SDG 8
• SDG 9
• SDG 10
• SDG 11
• SDG 12
• SDG 13
• SDG 15
• SDG 17

Neste's initiatives contribute to these SDGs through renewable and circular solutions, human rights due diligence, biodiversity protection, supply chain sustainability, and stakeholder engagement.

Sustainable Products & Innovation

• Neste MY Sustainable Aviation Fuel
• Neste MY Renewable Diesel
• Neste RE

Awards & Recognition

• Dow Jones Sustainability Indices
• CDP Climate Change and Forests Assessment Leadership level
• Corporate Knights Global 100
• MSCI ESG Rating Index AAA
• Ecovadis Platinum rating
• S&P Global Sustainability Yearbook

Environmental Metrics

ESG Focus Areas

• Climate
• Biodiversity
• Human rights
• Supply chain and raw materials

Environmental Achievements

• Reduced refinery inputs of conventional palm oil to zero by the end of 2023.
• Enabled customers to reduce GHG emissions by 11.0 million tons in 2023.
• Increased share of renewable electricity to 99.6% of total purchased electricity.
• Completed the expansion of its Singapore refinery, increasing production capacity to 2.6 million tons per year, including up to 1 million tons of sustainable aviation fuel.
• Started operations at the Martinez Renewables refinery in the US, increasing renewable products capacity by slightly over 1 million tons per year.

Social Achievements

• Conducted 154 sustainability audits on raw material suppliers, sub-suppliers, terminals, and contractors.
• Established site-level complaints channels at all refineries for addressing concerns of contracted workers.
• Organized the first global Safety Week, focusing on learning from everyday work.
• Provided good-quality employment, education, and training for young people, hiring 440 summer trainees.
• Completed living wage gap assessments for its own employees across global locations.

Governance Achievements

• Revised its Anti-Money Laundering and Counter Terrorism Financing Standard and re-issued the related e-learning.
• Revised its competition law e-learning course.
• Revised its internal Misconduct Investigation Standard to align with the Whistleblower Directive.
• Updated its Environmental Management Principle to improve compliance assurance and environmental performance.

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions
• Competition for key raw materials
• Entering new markets
• Regulatory changes limiting the competitiveness of renewable fuels or narrowing the eligibility of key raw materials
• Accelerated alternative technology development

Mitigation Strategies

• Developing alternative sourcing strategies
• Investing in capacity expansions
• Implementing innovation initiatives
• Transforming the Porvoo refinery into a leading renewable and circular solutions refining hub
• Engaging with suppliers to enhance climate performance

Supply Chain Management

Supplier Audits: 154/year

Responsible Procurement

• Neste Supplier Code of Conduct
• Responsible Sourcing Principle
• Sustainability due diligence
• Risk-based approach to supplier assessment
• Country risk assessment
• Sustainability audits
• Capacity building training for suppliers

Climate-Related Risks & Opportunities

Physical Risks

• Flooding

Transition Risks

• Stringent competition for key raw materials
• Regulatory changes limiting the competitiveness of renewable fuels
• Narrowing the eligibility of key raw materials
• Steep decline of demand for fossil fuel
• Accelerated alternative technology development

Opportunities

• Accelerated global demand for renewable and circular products
• Supportive regulatory landscape

Reporting Standards

Frameworks Used: GRI, SASB, TCFD, UNGC, UNGP

Certifications: ISO 14001

Third-party Assurance: KPMG Oy Ab

UN Sustainable Development Goals

• SDG 7: Clean energy
• SDG 8: Decent work and economic growth
• SDG 9: Industry, innovation and infrastructure
• SDG 10: Reducing inequalities
• SDG 11: Sustainable cities and communities
• SDG 12: Responsible consumption and production
• SDG 13: Climate action
• SDG 15: Life on land
• SDG 17: Partnerships for the goals

Neste's initiatives contribute to these goals through renewable and circular solutions, responsible recruitment, living wages, biodiversity protection, climate action, and partnerships.

Sustainable Products & Innovation

• Neste MY Sustainable Aviation Fuel
• Neste MY Renewable Diesel
• Neste RE
• Neste Marine

Awards & Recognition

• European Inventor Award 2023
• Global Child Forum’s Benchmark Report, Leader