Raw material suppliers
Neste Oil requires all its feedstock suppliers to be committed to sustainable operations and to protecting the biodiversity of the environment, and respect human rights. Strict sustainability-related requirements form part of all supplier agreements covering Neste Oil’s renewable inputs.
Neste Oil sources the renewable feedstocks it uses directly from suppliers and is not involved in producing or growing them itself, nor does it own any plantations growing these materials or operate any plants producing them. Renewable feedstocks were sourced from a total of 45 (31) suppliers during 2013.
Neste Oil bought palm oil from eight suppliers in 2013 – including Wilmar, Golden Agri, Asian Agri, and IOI Group – as well as from around 54,000 smallholders in Indonesia. The number of smallholders in 2012 was 9,000. Negotiations are currently under way with International Financial Corporation (IFC), which specializes in funding sustainable projects, on a new initiative that would enable Neste Oil to buy palm oil also from independent smallholders.
A total of 15 companies supplied Neste Oil with waste animal and fish fat in 2013.
Neste Oil buys its crude oil mainly from Russia. The majority of the crude oil it uses is supplied from the Primorsk terminal, which receives its crude oil via pipeline from fields across Russia. In 2013, Neste Oil also sourced crude oil from the North Sea, Kazakhstan, and North Africa. A total of 22 (14) crude suppliers were used in 2013.
Read more about the origin of Neste Oil’s feedstocks and their traceability.
Strict sustainability criteria used when selecting suppliers
Neste Oil decides which feedstock suppliers it uses in accordance with its Supplier Compliance principles. All feedstock suppliers are required to pass a due diligence process as part of the selection. Due diligence audits are also carried out on existing suppliers if they add a new feedstock to their offering or there is a significant change in the supply chain. Neste Oil initiated due diligence audits on 29 suppliers of renewable feedstocks in 2013, one of which was rejected because of unclarities related to documentation.
Suppliers also go through a security check conducted by the Security Unit. Security checks review areas such as good management practices, corruption, unresolved legal claims, and other possible factors that might contravene with Neste Oil's policies and principles. Neste Oil gives suppliers the opportunity to correct any shortcomings in their operations that are revealed during the security check process.
In addition, a comprehensive sustainability survey of potential suppliers is carried out as part of the selection process, covering areas such as operating practices and policies, a supplier’s ability to certify its production, and any concerns that NGOs might have about their activities.
After selection, Neste Oil continuously monitors its feedstock suppliers. Where certified suppliers are audited by an independent, third-party body annually, Neste Oil reviews the supply chain as part of its own customer audits.
Neste Oil requires all its palm oil suppliers to be a member of the Roundtable on Sustainable Palm Oil (RSPO), which requires its members to commit themselves to respecting human rights and protecting rainforest areas. Suppliers must also commit themselves to Neste Oil’s Sustainability Policy, its Sustainability Principles for Biofuels, and its No-Deforestation and Responsible Sourcing Guidelines for Renewable Feedstock, which were published in 2013.
Learn more about Neste Oil’s No-Deforestation and Responsible Sourcing Guidelines for Renewable Feedstock.