Evidence of climate change and the role of human activity as its main cause is compelling. A universal agreement is needed to keep global warming below 2°C. We hope this goal will be achieved at the UN Climate Change Conference in Paris. This requires action from all of us and it is very clear that industries must do their part to decrease greenhouse gas emissions.
Fair pricing of greenhouse gas emissions through taxation or emission trading, as well as measures to promote renewable alternatives, should be put in place in order to mitigate the climate effects of growing emissions. These measures are opportunities that can trigger new waves of innovation and sustainable growth.
Businesses play an important role in reducing emissions. As a technology leader and the world's largest producer of renewable diesel, Neste encourages governments and businesses to embrace the opportunity that sustainably produced advanced biofuels provide to decarbonize fuels on our roads, skies and seas. The use of our NEXBTL renewable diesel has been found to result in 40–90% lower greenhouse gas emissions than fossil diesel. Through the use of our NEXBTL renewable diesel, companies such as UPS and cities such as Oakland in California are reducing their emissions. Renewable raw materials can also replace fossil oil in other applications, such as plastics, and we are also exploring new and exciting opportunities in these areas.
Decreasing our own emissions is also important for Neste and energy efficiency is key in the production of our high quality fuels. Yet our most significant contribution to reducing greenhouse gas emissions is offered by our renewable products business. The reductions of emissions which results from our customers using our renewable diesel more than makes up for our own emissions. For example, in 2014 the direct greenhouse gas emissions resulting from our operations were 3.2 million tons and the reduction in emissions achieved during the year through renewable diesel produced by us amounted to 5.6 million tons.
We are also combatting climate change by improving the sustainability of our supply chain. Over 70% of our renewable raw materials are waste and residue. With regard to palm oil, our suppliers are committed to Neste's No-Deforestation and Responsible Sourcing Guidelines, developed in collaboration with The Forest Trust (TFT), and we have begun to purchase crude palm oil that has undergone a methane capture process during production.
Policies and regulations are needed to set the direction and boost investments into renewable energy. The UN Climate Change Conference in Paris is an important step in this respect and we hope a universal agreement will be achieved. However, in addition, businesses must also proactively seek to promote renewable alternatives and Neste is committed to being part of this crucial journey of the 21st century.
And I also encourage our people at Neste to take action against climate change in their own personal lives by reducing their own carbon footprint. For example, residents of Finland can take part in the Climate Pledge campaign. Climate change concerns us all and we must all be part of the solution.
President & CEO