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Neste's Crude Palm Oil Dashboard

Neste's Crude Palm Oil Dashboard provides detailed information on key aspects of our CPO supply chain. This dashboard focuses primarily on traceability within our supply chain but also provides information related to Neste's smallholder farmer programs, human rights initiatives, greenhouse gas reduction efforts and sustainability reporting. All CPO  we have used has been fully traceable to the plantation level since 2007, and 100% certified since 2013. We do not own any oil palm plantations, nor operate any palm oil refineries. Instead, we source CPO from carefully selected, responsible producers in Malaysia and Indonesia that are committed to certification and principles of sustainability.

Besides waste and residues, we currently use more than 10 different sustainably-produced raw materials, crude palm oil (CPO) being one of them. Although CPO’s role in our raw material portfolio has become significantly smaller over the years, accounting for less than 20% of the company’s raw material use, we continue being committed to to do even more than what is legally required to ensure the crude palm oil we source is and remains fully sustainable.  In April 2016, we were the first major crude palm oil using company to publish a full list of our palm oil suppliers on our website. This dashboard offers updated information of all the crude palm oil suppliers, mills, and plantations from which we sourced crude palm oil in 2016. By making the list public, we want to meet our commitment to transparency and to encourage other palm oil users to follow our lead.
Supply Chain Snapshot
CPO Suppliers
# of CPO Suppliers 5
# of CPO Mills 50
# of Plantations 156
# of Smallholders 33,223
% of Suppliers committed to no-deforestation 100%
100% Certified & Fully Traceable
12% From Smallholder Farmers
CPO Supply
Use of Certified CPO 100%
CPO Traceable to Source 100%
2016 CPO Volume (kt) 516
CPO % of Total Feedstock 19%
CPO % from Methane Capture Mills 35%
Supply Chain Map

Neste sources crude palm oil from 50 supplier mills. The vast majority of these mills are located in Indonesia (48); only two are located in Malaysia. The mills displayed in this map were suppliers during part or all of 2016.

show mill list
Indonesia
Aek Nabara
Agrowiratama
Batang Kulim
Batu Ampar
Berkat Sawit Sejati
Buatan I
Buatan II
Bumi Palma
Bumi Sawit
Gunung Melayu I
Gunung Melayu II
Hanau
Indrasakti
Kijang
Langga Payung
Libo
Maju Aneka Sawit
Mandau
Naga Sakti
Negeri Lama II
Nilo 1
Nilo 2
Pangkalan Lesung
Parit Sembada
Pelakar
Peranap
Perdana
Rama Rama
Sam Sam
Semilar
Steelindo Wahana Perkasa
Sukajadi Sawit Mekar 1
Sukajadi Sawit Mekar 2
Sungai Buaya
Sungai Kupang
Sungai Merah
Sungai Rungau
Taman Raja
Tanah Laut
Tanjung Kembiri
Tanjung Pauh
Tanjung Selamat
Tapung Kanan
Teluk Panjie
Topaz
Ukui I
Ukui II
Unggul Lestari
Malaysia
Kekayaan
Sapi
Traceability
Our Oil is 100% Certified and Traceable to Known Source
All crude palm oil used by Neste has been fully traceable all the way to the plantation level since 2007, and 100% certified since 2013. We procure crude palm oil only from carefully selected suppliers and from known and documented sources. We purchase certified palm oil directly from the producer companies instead of purchasing separate certificates from the world market as, for example, many food industry companies do. Buying directly from producer companies provides us with better transparency and influence in our supply chain – the more direct the supply chain, the better.
 
Due to its liquid nature, palm oil cannot be traced with a tag on the side like, for example, oranges. However, methods approved by the authorities have been designed for tracing liquid products including Mass Balance, Identity Preserved and Segregated. When palm oil is purchased using the mass balance principle, certified palm oil can be mixed with raw material coming from other sources at the mill or storage facilities. Segregated material, on the other hand, is not in physical contact with other raw materials at any phase of the supply chain.
 
The amount of raw material sourced by us is verified using accurate accounting, and we receive exactly the amount of certified palm oil we have bought. The raw material batches do not wander by themselves; they are physically monitored throughout their journey from the plantation to the customer. All phases of the supply chain leave an imprint, as they are all documented and audited.
88% Large Estates, 12% Small Farmer
50 Supplier Mills
516,000 Tonnes CPO
39 of 50 Mills Mass Balance Certified
Smallholders
Palm oil production provides tens of millions of people with a permanent source of income and livelihood in Southeast Asia. In addition to larger oil palm producing companies, Neste’s crude palm oil supply chain in 2016 included also approximately 33,000 Indonesian smallholders organized as cooperatives.
 
We have committed ourselves to cooperation projects aiming at supporting smallholders in the development of their sustainability expertise and the adoption of sustainable practices. We are, for example:
  • Participating in a project coordinated by the Malaysian organization Wild Asia involving smallholders producing palm oil in Malaysia.
  • Engaging in a smallholder project coordinated by GAR (Golden Agri Resources), SPKS (Indonesian Palm Smallholders Union), and WRI (World Resources Institute).
 
Through developing the sustainability and traceability of the smallholders' production, we aim at enabling certification of their production, which is a prerequisite for Neste's raw material sourcing from the smallholders. Neste’s aim is to further increase the share of smallholders in the company’s procurement.
Human and Labor Rights
Neste is committed to observing the human rights principles of the United Nations' Declaration of Human Rights and the International Labor Organization (ILO) in all its business operations. We are involved in the United Nations' Global Compact sustainability initiative, and take an unambiguous stand on harassment, discrimination, child labor, forced labor, and any exploitation. We require the same from all our partners. We have defined our stand in our Human Rights Commitment and Human Rights Principle, which we are currently developing further.
 
We carry out a due diligence audit of all companies before they are selected as suppliers. The suppliers' practices related to human rights, such as workers' rights, use of child labor, and forced labor, are reviewed in the audits.
 
In 2016, we launched a comprehensive program on human and labor rights, and produced a Human and Labor Rights Roadmap that crystallizes our main activities in this area. Many of these activities are projects that involve and engage several stakeholder groups. We believe that collaboration between companies, governments, investors, and civil society offers the greatest potential for increasing protection for human rights and labor standards globally.
 
Neste is working hard to tackle common challenges related to human rights and the fair treatment of workers in the palm oil industry. We have, for example, conducted a field survey focusing on social questions concerning foreign migrant workers in Malaysian palm oil plantations in cooperation with Business for Social Responsibility (BSR). We have launched a similar study in Indonesia focusing on working conditions in plantations in Indonesia and the impact of workers on communities beyond the plantations.
 
We have prepared for a multi-year, multi-stakeholder collaboration project, “A Fair Employment Initiative” in Malaysia, and support another UNICEF-led project studying the upholding of children's, women's and families' rights in palm oil production. Our work with smallholder producers of palm oil also supports development of social issues in the palm oil industry.
Climate
Neste is the world's leading company producing renewable diesel. Our low-carbon Neste MY Renewable Diesel refined from renewable raw materials helps reduce greenhouse gas emissions by 50–90% compared to conventional crude oil based diesel. This product helped our customers to replace conventional diesel and reduce carbon emissions by a staggering 6.7 million tons in 2016. The amount equals the permanent removal of 2.4 million passenger cars from the roads for one full year. Our new target is to reduce greenhouse gas emission by 7 million tons in 2017. Increasing the share of waste and residues in production plays a key role in pursuing this objective.
 
Renewable fuel produced from crude palm oil can significantly cut climate emissions. Our renewable diesel produced from sustainably-produced crude palm oil reduces greenhouse gas emissions by 59% on the average when compared to crude oil based diesel. Already 35% of the crude palm oil that we procure comes from mills with methane recovery systems or systems to prevent its formation. Together with several partners, we are developing a new method to prevent formation of methane in palm oil mills.
 
Sustainably-produced crude palm oil has lower life cycle emissions compared to other industrially farmed vegetable oil plants when produced sustainably. The oil palm (Elaeis guineensis) is a perennial plant that thrives in tropical areas. Compared to other oil plants, its oil yield is superior: on average, 4 tons per hectare and at best up to 10 tons per hectare. Oil palm cultivation is very efficient in terms of land use and consumes the least energy compared to many other oil plants.
 
Among the world's leading companies, Neste has been chosen to the CDP’s Climate A List. The A List recognizes the companies that have most effectively tackled climate change, and adapted to it. We have also been awarded “Leadership” status in the CDP Forests program for our management of deforestation risks, particularly those related to our crude palm oil supply chain.
Sustainability Reporting
Sustainability is one of Neste’s four values that form a basis for everything we do. Sustainability work is the enabler of our business strategy, and sustainability goals are an integral part of the business area objectives. We are committed to operating ethically and complying with the legislation of each country in which we operate, and we require the same from our partners. Our key sustainability policies and principles lay the foundation and guidelines for everything we do.
 
Our Sustainability Report summarizes our performance in various areas of sustainability to ensure continuous development. The report, for example, introduces our work to ensure sustainability of our supply chain, as well as the work we do to combat climate change, among others.
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