PFAD dashboard

Palm fatty acid distillate (PFAD) is a processing residue derived from the refining of food grade palm oil. Neste buys PFAD only from those suppliers that are committed to sustainable working practices and meeting strict sustainability criteria embedded in the regulation on biofuels.

Traceability

All Neste-sourced renewable raw materials are traceable to the point of origin as the law requires of biofuels producers (e.g. EU RED in Europe).

In April 2017, we committed to go beyond this requirement by setting a public target in 2017 to work towards mapping our PFAD supply chain to oil palm plantations by 2020. This significantly surpasses the current regulatory requirement for residue raw materials to be traceable to the place of origin, in PFAD's case to the palm oil refinery. Working towards our 2020 target has required us to map large parts of previously unmapped food industry’s palm oil supply chains with good progress. 

Already 99% of our PFAD supply chain has been independently mapped and validated to the supplying mills and 44% all the way to plantations. In the latter, publicly available data (e.g. on RSPO, ISCC, ISPO certifications) and supplier reporting have been used. We have evaluated each mill for environmental risks as part of our proactive approach to preventing deforestation.

The chart below compares the area surrounding our supplying mills to over 1,700 other oil palm mills for environmental risk factors; 86% of our supplying mills are located outside of higher risk areas.

In 2018, we continued conducting risk-assessments of palm oil mills supplying oil to the refineries that supply PFAD to us. We engaged PFAD-supplying palm oil refineries to ensure that their operations and those of their supplying mills are in compliance with our sustainability policies and principles. Learn more about Neste's sustainability efforts.

Supply chain map

Neste sources PFAD from 59 supplier refineries. Thirty-two of these refineries are located in Indonesia, 20 are located in Malaysia, six are located in Thailand and one is located in the Netherlands. The refineries displayed in this map were suppliers during part or all of 2018.