Neste Oil sources the renewable raw materials it uses mainly directly from producer companies without intermediaries. We do not own any plantations growing these materials or operate any plants producing them. Renewable raw materials were sourced from a total of 38 (45) suppliers during 2014.
In 2014, we sourced crude palm oil from a total of six (8) suppliers, including Wilmar, Golden Agri, Asian Agri, and IOI Group. In addition, we purchased palm oil from approximately 40,000 (54,000) smallholders organized as cooperatives in Indonesia.
We aim to continuously increase the share of waste and residues in the total use of renewable raw materials. During the year, we sourced waste and residues from a total of 38 suppliers.
Neste Oil primarily sources fossil crude oil from Russia. Most of the crude oil used by us is supplied to our refineries via the Primorsk oil terminal in Russia. The oil is transported to Primorsk via a pipe network carrying oil from oil fields located around Russia. In 2014, we also sourced crude oil from Kazakhstan, Norway, United Kingdom, Denmark, and North Africa. We had a total of 25 (22) crude oil suppliers in 2014.
Read more about the traceability of Neste Oil's raw materials.
Neste Oil decides which raw material suppliers it uses in accordance with its Supplier Compliance principles. All raw material suppliers are required to pass a due diligence process as part of the selection. Due diligence assessments are also carried out on existing suppliers if they add a new raw materials to their offering or if there is a significant change in the supply chain. Neste Oil did due diligence assessments on 39 suppliers of renewable raw materials in 2014. Two suppliers were rejected.
Suppliers also go through a security check conducted by our Security Unit. Security checks review areas such as good governance, corruption, unresolved legal claims and other possible factors that might contravene Neste Oil's policies and principles. We give suppliers the opportunity to correct 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, we continue monitoring our feedstock suppliers. Certified suppliers are annually audited by an independent, third-party body, and also we review the supply chain and its sustainability as part of our own suppliers audits.
We require all of our palm oil suppliers to be members of the RSPO (Roundtable on Sustainable Palm Oil), which requires its members to commit themselves to respecting human rights and protecting rainforest areas. Suppliers must also commit themselves to our Sustainability Policy, Sustainability Principles for Biofuels, and No-Deforestation and Responsible Sourcing Guidelines for Renewable Feedstock.