Neste extends its climate commitments – sets a target for Scope 3 emissions and will sign the Business Ambition for 1.5°C Commitment Letter
Neste Corporation, Press Release, 27 October 2021 at 12 noon (EET)
Neste has two existing and ambitious climate commitments: reaching carbon neutral production (Scope 1 & 2*) by 2035 and helping its customers reduce their greenhouse gas emissions by at least 20 million tons of CO2e annually by 2030. This work is well on track. Neste has now decided to also set a concrete target for Scope 3 emissions* to reduce the use phase emission intensity** of sold products by 50% by 2040 compared to 2020 levels.
This target will be achieved through Neste’s transformation towards increasing the share of renewable and circular solutions as well as working with suppliers and partners to reduce emissions across the value chain.
Neste’s broadened sustainability vision covers climate, biodiversity, human rights, supply chain and raw materials. Neste’s climate commitments show leadership and determination to meet the objectives of the Paris Agreement and Neste will sign the Business Ambition for 1.5°C Commitment Letter***. Neste will continue to build on its climate actions so that they are in line with the 1.5°C emission scenarios, the criteria and recommendations of the Science Based Targets initiative (SBTi)***. The approval process with the SBTi will begin as soon as the sectoral guidance for the Oil and Gas industry is published.
“By extending our climate commitments to cover Scope 3 emissions and committing to science-based targets, we will join the group of visionary leaders taking ambitious climate action. We will continue our transformation towards renewable and circular solutions and ensure that the entire value chain is aligned with the global ambition of limiting global warming to 1.5°C. This will require transformation beyond our company’s own operations. New ways of working, innovative new technologies and cooperation with our suppliers and partners is needed,” says Peter Vanacker, President and CEO, Neste.
As a concrete example of reducing the Scope 3 emissions, Neste is continuously looking for opportunities to optimize the logistics network and gain more visibility to emissions throughout the network together with its partners. One of the key contributors is to increase the use of renewable and other low-emission solutions. In 2020, for example, the majority of Neste’s product distribution logistics in Finland used Neste MY Renewable Diesel™ and in 2021, the Finnish product distribution logistics will run almost entirely on renewable diesel.
*) Scope 1, 2 and 3 emissions as defined by the Greenhouse Gas Protocol. Scope 1 and 2 cover the emissions related to our own production. Scope 3 includes all other relevant emissions throughout the value chain. For Neste, the key Scope 3 categories are the use of sold products, purchased goods & services and feedstock & product transport.
**) Use phase emission intensity is calculated by dividing the emissions from the use of products sold by Neste with the total amount of sold energy (gCO2e/MJ).
***) Science Based Targets initiative (SBTi), a partnership between CDP, the United Nations Global Compact (UNGC), the World Resources Institute (WRI) and the World Wide Fund for Nature (WWF), drives ambitious climate action by enabling companies to set science-based emissions reduction targets. The SBT’s show companies how much and how quickly they need to reduce their greenhouse gas emissions to prevent the worst effects of climate change. The Business Ambition for 1.5°C Commitment Letter, as part of the SBTi, is a letter for companies to commit to taking urgent action aligned with 1.5°C.
Vice President, Communications
Neste’s climate commitments
Please contact Neste’s media service, tel. +358 50 458 5076 / email@example.com (weekdays from 8.30 a.m. to 4.00 p.m. (EET)).
Neste in brief
Neste (NESTE, Nasdaq Helsinki) creates solutions for combating climate change and accelerating a shift to a circular economy. We refine waste, residues and innovative raw materials into renewable fuels and sustainable feedstock for plastics and other materials. We are the world’s leading producer of renewable diesel and sustainable aviation fuel, developing chemical recycling to combat the plastic waste challenge. We aim at helping customers to reduce greenhouse gas emissions with our renewable and circular solutions by at least 20 million tons annually by 2030. As a technologically advanced refiner of high-quality oil products with a commitment to reach carbon-neutral production by 2035, we are also introducing renewable and recycled raw materials such as waste plastic as refinery raw materials. We have consistently been included in the Dow Jones Sustainability Indices and the Global 100 list of the world’s most sustainable companies. In 2020, Neste's revenue stood at EUR 11.8 billion, with 94% of the company’s comparable operating profit coming from renewable products. Read more: neste.com