Year 2014
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  • Glossary

Traceability

All of the renewable raw materials used by Neste Oil are traced back to the plantations and production plants from which they originate. Vegetable oils are traced back to plantations and waste and residues to the place they are produced, typically production facilities. Traceability ensures that renewable raw materials are sustainably produced and that production has not infringed anyone’s human rights or endangered rainforests or carbon-rich areas, such as wetlands and peat land.

Palm oil only from carefully selected plantations

Neste Oil sources crude palm oil directly from carefully selected producer companies without intermediaries. The avoidance of intermediaries provides us a better understanding of the origin of raw materials than is custom in the industry.

In 2014, we sourced crude palm oil from 212 (212) plantations an 57 (65) mills. Our agreements specify all of the plantations that deliver crude palm oil to us. We know the exact locations of all plantations included in our supply chain, as well as their history. Our suppliers' operations are not located on protected land, nor do they have plans to extend their operations. None of the plantations in our supply chain are involved in open land disputes.

Cooperation with TFT has advanced to field verifications

We began cooperating with TFT (The Forest Trust), an organization focused on preventing deforestation in 2013. The cooperation aimed at developing the sustainability of the palm oil industry has proceeded to field verifications and workshops with palm oil suppliers. The workshops arranged in 2014 reviewed the gaps and risks observed in the risk assessment concerning our palm oil suppliers conducted by TFT. The risk assessment was completed in early 2014. In the workshops the suppliers were advised on how to establish policies and principles and how to implement sustainable procedures.

Read more about the progress of the TFT collaboration.

Methods used in tracing renewable feedstocks

Neste Oil uses the mass balance and segregation methods approved by the EU and US authorities for tracing renewable raw materials. When palm oil is sourced by using the mass balance principle, it is possible that the certified palm oil purchased by us may become mixed with raw materials purchased by others at mills or coastal storage facilities. However, the total amount of certified raw material purchased by us is verified by using accurate accounting. This ensures that we always receive the amount of certified palm oil that we have contracted for. An independent third party verifies the correctness of the mass balance system. Feedstock batches are physically monitored throughout their journey from the plantation to the customer, and all of the supply chain phases are documented.

In comparison to mass balance, when using segregation method our palm oil never comes into physical contact with raw materials purchased by other buyers.

Tracing the origin of crude oil

Neste Oil does not engage in oil exploration or production, and as a result we only have limited potential to influence crude oil production. To ensure the quality and sustainability of the crude oil we use, we aim to employ as direct supply chain as possible. We know the country of origin and typically the production areas of the crude oil that we buy. We closely monitor the environmental reporting of crude oil producers and are engaged in dialogue with a number of major producers about the sustainability of crude production.

Countries of origin of raw materials used in production in 2014

Feedstock

Origin

Crude palm oil

Malaysia and Indonesia

Waste and residues (e.g. waste animal fat, waste fish fat, vegetable oil fatty acid distillates, such as PFAD, technical corn oil, spent bleaching earth oil)

Australasia, South America, Europe, Southeast Asia, North America

Other types of vegetable oil (e.g. rapeseed and camelina oils)

South and North America, Europe

Crude oil

Russia, Kazakstan, Norway, United Kingdom, Denmark, and North Africa