According to a report published by Finnwatch in fall 2014, shortcomings in matters related to things such as labor rights were observed at a plantation of Neste's Malaysian palm oil supplier IOI Group. The RSPO (Roundtable on Sustainable Palm Oil) has confirmed in its additional investigations that employees have been paid wages that are too low at one IOI Group plantation covered by the Finnwatch report.
Neste takes the reported shortcomings very seriously and has cooperated with Finnwatch, RSPO and IOI to rectify them since the fall. IOI has launched an action program and has advanced in its implementation according to both the RSPO and Finnwatch.
"IOI has demonstrated openness and the will to correct the observed shortcomings, and we are supporting them in this work with the means available. However, we cannot continue purchases of crude palm oil from IOI in this situation," says Kaisa Hietala, Executive Vice President, Renewable Products at Neste.
Neste requires all of its partners to operate responsibly in accordance with legislation and contracts.
"Following the RSPO's investigation, we have decided not to purchase crude palm oil from IOI in Southeast Asia until IOI can prove that it has corrected the unclarities and violations related to the payment of wages," Hietala says.
Sustainably produced crude palm oil is one of the feedstocks used by Neste in the production of renewable fuels. In 2014, the company purchased certified crude palm oil from six suppliers' plantations and mills. In all, the company's renewable feedstock portfolio includes over 10 feedstocks, and waste and residues accounted for over 60% of the company's use of renewable feedstocks.
News previously released on the matter:
- Neste demands that subcontractor corrects unclarities and violations
- Neste Oil’s response to the Finnwatch report on the company’s supply chain
- Neste Oil has initiated measures to improve the position of migrant workers in its supply chain
Kaisa Hietala, Executive Vice President, Renewable Products, tel. +358 10 458 4128
Simo Honkanen, SVP, Sustainability and Public Affairs, tel. +358 10 458 4170