You are here

Engaging with the palm oil supply chain

People iconWe believe that close engagement and collaboration with our raw material suppliers provides us the best opportunities to support development of sustainability and proactive mitigation of risks within our supply chains. 

We have arranged workshops for all our palm oil suppliers since 2015 to foster dialogue, and to hear about our suppliers’ concerns. They also provide us an opportunity to clarify our requirements and expectations. The topics of these workshops have ranged from human and labor rights to deforestation and supply chain traceability.

In 2017, for example, we started updating our 2013 No-Deforestation and Responsible Sourcing Guidelines for Renewable Feedstock together with our partner CORE. We gathered feedback on this principle at our annual supplier workshop in April 2018 and again later in the year to support its efficient implementation. Implementation of these guidelines, nowadays known as Neste Responsible Sourcing Principle, started in the spring of 2019. 

In April 2020, we continued our supplier engagement by hosting four 90-minute sustainability webinars for our suppliers over four consecutive weeks on the following topics: Traceability to Plantation (TTP) Risk-calibrated Approach (RCA), Greenhouse gas and methane reduction solutions, Human and Labor Rights in the Workplace, and No-Deforestation, Peat and Exploitation (NDPE) tools and compliance.

Supplier engagement remains as our key strategy to drive, improve and transform our supply base. We support our suppliers in the development of sustainability policies, management systems, transparency, traceability, due diligence and continuous improvements. By working closely with our suppliers, we better understand the complexities on the ground and strive for practical solutions. 

Supplier Sustainability Portal development in collaboration with suppliers

We have been developing a Supplier Sustainability Portal (SSP) collaboratively with our suppliers since 2017 to facilitate and enhance evaluation of both potential and existing renewable raw material suppliers and to support performance monitoring and active engagement with our suppliers. 

Our core processes for sustainable sourcing of renewable raw materials, such as supplier evaluation, supplier due diligence, engagement, and submission of proof of sustainability documents, will be managed by our Supplier Sustainability Portal (SSP). It is a digital sustainability platform for Neste’s renewable raw material suppliers and compliance processes. These enable our global sourcing of renewable raw materials growth, sustainably and efficiently.

The first operational version was launched in December 2018. In 2019, the system development continued in parallel with testing. The aim is to develop a system to support our suppliers regardless of their location, supplied materials, or mode of transportation.

The portal has been taken partially in use, and deployment to the majority of our supply base will continue in 2020. All new suppliers are already being on-boarded with the portal, while we continue expanding the deployment across our existing supply base. We have set a target to manage all Neste’s renewable raw material suppliers’ sustainability and delivery information via the portal by the end of 2020.