We expect all of our business partners and suppliers to uphold Neste’s policies and principles, including our Human Rights Commitment and Principles, and the minimum requirements in our Supplier Code of Conduct, a key element in Neste’s supplier management system.
To support and validate this expectation, Neste has implemented systematic controls for counterparty screening and monitoring in which all potential business partners and suppliers undergo automated pre-screening, escalated to manual review if any issues are found or the counterparty’s business case matches predefined criteria. While the screening is predominantly focused on economic sanctions and trade compliance issues, counterparties are also screened for selected ethical concern categories in third-party enforcement databases and major news outlet sources. Human rights is one of the most significant drivers behind non-jurisdiction targeting sanctions that focus on actions of specific entities.
All of our contracts with renewable raw material suppliers include strict terms on sustainability; e.g. commitment to sustainability, protecting biodiversity, and respecting human rights are requirements that must be met before a contract is signed.
Our renewable raw material suppliers are committed to the following policies and principles:
- Sustainability Policy
- Neste Supplier Code of Conduct
- Neste Responsible Sourcing Principle
- Sustainability Principle
We also require all our palm oil suppliers to be members of the Roundtable on Sustainable Palm Oil (RSPO) organization. The organization requires its members to commit themselves to respecting human rights and protecting rainforests. Neste is also a member of RSPO.
Selection of partners is crucial for the sustainability of the supply chain. Therefore, ensuring the sustainability of our supply chain begins long before any agreements have been signed. All our suppliers are required to fulfill the requirements of our Supplier Code of Conduct. A supplier’s ability to meet the requirements of the Supplier Code of Conduct is regarded as a significant factor when Neste is deciding an initiation or continuation of a business relationship with a supplier.
Raw material suppliers for our renewable products are subject to rigorous sustainability due diligence as part of our Principle on Renewable Products (RP) Supplier Sustainability Approval. The principle applies worldwide to any Neste company which is establishing a business relationship with a supplier of renewable raw material for Neste’s renewable products and it sets the minimum requirements for supplier sustainability approval through a five-step sustainability due diligence process:
- Raw Material Evaluation
- Country and Raw Material Risk Assessment
- Counterparty Screening (incl. Risk-based Financial Risk assessment)
- Sustainability Desktop Review
- Sustainability Audits
Read more about our supplier selection from the Sustainability report at page 79-.
How do we deal with shortcomings?
Engagement and cooperation with our suppliers are the primary ways of action to address any shortcomings. Ending purchases does not solve any problems; instead by working together with our suppliers we are able to make improvements.
We take all allegations on suspected sustainability violations and shortcomings seriously and investigate the cases. Upon learning about credible serious allegations concerning our suppliers, we put all further purchases from those suppliers or supply chains on hold while we investigate the cases.
If you wish to report a concern or submit a complaint, please do so via phone or online service:
We address shortcomings once we become aware of them by:
Requiring the supplier to report the situation as part of Neste’s grievance mechanism.
Engaging and cooperating with suppliers. This is our primary way of action.
Providing an assessment and, if necessary, conducting supply chain audits locally by Neste’s or the partner’s sustainability experts.
Requiring a detailed plan for corrective actions from the supplier.
Cooperating with the supplier and other stakeholders to develop operations and perform necessary corrective actions.
Monitoring and updating on the progress online.
Ending purchases, if we do not see adequate progress or if the supplier loses their certificate.
Reviewing, improving and adjusting our processes where needed.
Read more and become a Neste supplier.