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 or exceeding strict sustainability criteria embedded in the regulation on biofuels. These criteria include a proactive approach to preventing deforestation and mitigating its risk.

Traceability

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

Since April 2017, we have worked towards a public target of developing traceability for our entire PFAD supply chain to oil palm plantations by the end of 2020. Working towards our 2020 target has required us to map large parts of previously unmapped food industry palm oil supply chains, but we have made good progress.

Already 99% of our PFAD supply chain has been independently mapped and validated to the supplying palm oil mills and 71% all the way to plantations. This significantly surpasses the fuel industry's current regulatory requirement for residue raw materials to be traceable to the place of origin, in PFAD residue's case to the palm oil refinery. When mapping the supply chain to the plantations, publicly available data (e.g. on RSPO, ISCC, ISPO certifications) and supplier reporting have been used. 

We have 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. We have also evaluated each palm oil mill for environmental risks as part of our proactive approach to preventing deforestation.

Supply chain July-Dec 2019 in numbers

Our PFAD supply chain July-December 2019

During July through December 2019, Neste sourced PFAD from 29 supplier refineries. Eighteen of these refineries are located in Indonesia, 10 in Malaysia, and one in the Netherlands. These refineries are displayed in the map below.