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Supporting smallholders

Smallholders and farmers iconNeste’s cooperation with palm oil producing smallholders aims to support the development of their sustainability awareness and expertise. The adoption of sustainable practices enables smallholders to get certified; Neste requires a commitment to certification from all its palm oil suppliers.

Neste's cooperation with smallholders is one of many ways in which we combat deforestation risk. Palm oil related deforestation risk can be reduced by introducing sustainable means to increase yields to the smallholders. By sourcing raw material from the certified smallholders, Neste provides them a financial incentive to remain committed to sustainable practices and continuous improvement.

In 2019, our supply chain included more than 36,900 Indonesian palm oil smallholders organized into cooperatives.

Projects with non-governmental organizations

Since 2017, we have co-funded the Wild Asia Group Scheme (WAGS) project, coordinated by the Malaysian non-governmental organization Wild Asia, involving smallholders producing palm oil in Malaysia. The goal of the project is to improve the sustainability of the smallholders´practices in the Sabah region in Borneo. In 2018, we focused on improving smallholders’ practices in farming, chemical use, and using waste materials as organic fertilizers. These efforts continued in 2019, with development plans to reach out to more small growers (i.e. smallholders with bigger land holdings) and farmers.

In 2019, we continued partnering also with Wild Asia and KLK, and managed to help 61 smallholders and four small growers get certified. They represent approximately 620 hectares of land. The project is part of a larger Kinabatangan project through which 339 smallholders were certified, with a total of approximately 2,080 hectares of land.