Neste Oil Corporation pledges “No Deforestation”

Neste Oil, which had been criticized for its sourcing of deforestation-based palm oil, has pledged to shift away from palm oil sourced from primary forests, high conservation value and natural forests, and high carbon stock forests.

Neste’s decision comes after close work with The Forest Trust, a non-profit organization that has also played a critical role in persuading the other industry leaders listed above to transform their supply chains to be deforestation-free.

Neste Oil, one of the world’s largest buyers of palm oil, has strengthened its commitment to procuring sustainable renewable raw materials by becoming a TFT member.

The company has worked with TFT to develop ‘No Deforestation’ guidelines which TFT will help roll out across Neste Oil’s supplier operations. Neste Oil has committed itself to working proactively to identify concrete ways of preventing deforestation together with palm oil producers and other stakeholders.

Neste Oil joins with Nestle, Asia Pulp and Paper, Golden Agri-Resources, major companies that have responded to consumer and customer concerns by committing to eliminate deforestation in their supply chains. Neste’s decision comes after close work with The Forest Trust, a non-profit organization that has also played a critical role in persuading the other industry leaders listed above to transform their supply chains to be deforestation-free.

At the heart of the No Deforestation guidelines is Neste Oil’s commitment not to buy palm oil from plantations that have felled forest in contravention of legislation or that have been created in high carbon stock areas. The company will give TFT access to all the non-commercial data covering its supply chain and TFT will carry out risk-based audits of the various stages of Neste Oil’s supply chain. Based on the results of these audits, Neste Oil will be able solve possible problems more effectively and develop sustainable operating practices together with its raw material suppliers.

“As one of the world’s largest buyers of vegetable oil, we recognize the responsibility we bear for the direct and indirect impact of our operations,” says Simo Honkanen, Neste Oil’s Senior Vice President, Sustainability and HSEQ. “Our cooperation with TFT is a natural continuation of our earlier efforts aimed at helping prevent deforestation and developing proactive dialogue with our stakeholders. As a major company in the field, we have a unique opportunity to support the development of sustainable practices in the palm oil production area.”

“Neste Oil’s No Deforestation Guidelines are clear in their commitment to ensuring that its palm oil procurement doesn’t drive deforestation, avoids critical peat lands and respects the rights of local communities,” says Scott Poynton, TFT’s Executive Director. “If a company is going to use palm oil for food, for cosmetics, or for biofuels, it is absolutely critical that it cuts off any link to deforestation. Neste Oil’s Guidelines do that and go beyond.”

READ MORE: Neste Oil’s No Deforestation guidelines are here.