7 November 2016

Neste focuses on its own extensive social responsibility development program - IOI developing in the right direction

Published in Releases and news

Neste Corporation
7 November 2016

Neste focuses on its own extensive social responsibility development program - IOI developing in the right direction

On November 7, 2016, Finnwatch published a follow-up study report on the operations of the Malaysian palm oil company IOI, focusing particularly on human and labor rights. The report primarily focuses on the operations of IOI, but it also touches on those operations of the Finnish companies Paulig and Neste that have to do with IOI.

Neste has not commenced purchases of raw materials from IOI

IOI was one of Neste's palm oil suppliers during the previous Finnwatch studies. On April 12, 2016, we announced that we had suspended raw material purchasing from IOI after the Roundtable on Sustainable Palm Oil (RSPO) suspended its certification for the company's palm oil production due to environmental issues. RSPO has since reinstated IOI's certification. Even though we do not purchase raw material from IOI, we have continued close dialogue to understand the company's plans and monitor the development of its operations.

IOI has developed in the right direction

According to the most recent Finnwatch report, measures related to ensuring proper working conditions and labor rights have been partly developed in the desired direction at IOI plantations in Malaysia. We consider the constructive comments and improvement proposals in the Finnwatch report important, and encourage IOI to continue to develop remediation measures. Particularly in its work to ensure implementation of labor rights for migrant workers, IOI has an opportunity to prove that it is setting the pace by surpassing the general practice.

Neste chose a comprehensive approach to social issues

As we state in the report, we have not focused solely on monitoring IOI. We have, instead, chosen to study and develop the social issues concerning our supply chains in a more comprehensive way.

Earlier this year, we concluded a human rights assessment covering all of our operations, and started to develop our social responsibility management system. In partnership with BSR (Business for Social Responsibility), an organization specializing in social issues, we conducted a study on the labor rights situation in Malaysia, and organized a dialogue with our palm oil suppliers to find ways to tackle issues identified during the study. This year, we are conducting a similar study in Indonesia.

In dealing with complex social issues, we have worked closely with BSR, as well as engaged in dialogue with the certification bodies RSPO and ISCC, several non-governmental organizations, and various palm oil suppliers. We intend to continue our social development and improvement programs in close interaction with current and potential partners in the future. We invite everyone in the palm oil industry, as well as other industries, to engage in similar social and environmental sustainability projects or initiatives.

Also read:

Neste's work on ensuring human rights in its palm oil supply chain strives to set good examples

Neste in brief

Neste (NESTE, Nasdaq Helsinki) creates sustainable choices for the needs of transport, businesses and consumers. Our global range of products and services allows customers to lower their carbon footprint by combining high-quality renewable products and oil products to tailor-made service solutions. We are the world's largest producer of renewable diesel refined from waste and residues, and we are also bringing renewable solutions to the aviation and plastics industries. We want to be a reliable partner, whose expertise, R&D and sustainable practices are widely respected. In 2015, Neste's net sales stood at EUR 11 billion, and we were on the Global 100 list of the 100 most sustainable companies in the world. Read more: neste.com/en