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Finnish renewable fuel producer Neste issued a statement on November 5 rejecting allegations made in a report that its suppliers had engaged in sustainability violations.
The Profundo report, commissioned by Milieudefensie (Friends of the Earth Netherlands) and published on November 5, alleged that Neste's raw material suppliers were involved in serious sustainability violations such as deforestation, fires, destruction of peat, rape community and labor rights.
In its response, the company said credible allegations about sustainability violations by its suppliers were taken seriously and always investigated.
“We recognize the fact that there are sustainability concerns linked to the palm oil industry. That’s why we continuously monitor our supply chains with local organizations specializing in various areas of sustainability, such as deforestation,” said the statement published on Neste’s website.
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“We transparently publish data on our palm oil and palm fatty acid distillates (PFAD) supply chains on our website to allow external experts to help with this work.”
Titled 'The dark side of Neste's biofuel production', the study investigated unsustainable practices allegedly linked to Neste's palm oil supply chain.
According to the study, companies in Neste's supply chain could be connected to at least 10,000ha of deforestation, in the period from January 2019 to June 2020, and around 13,000 fire alerts in 2019.
“Despite Neste’s statements about sustainability and a stated commitment to responsible sourcing, its supplier list reveals several links to palm oil producers linked to environmentally and socially unsustainable practices,” the report said in its conclusion.
The Profundo report made recommendations that Neste stop using palm oil, PFAD and other vegetable oils for biofuels and disclose the raw materials used in each individual production plant.
Because the company was unable to familiarize itself with the report at the time of making its statement, Neste said it could not comment on its specific allegations.
“Based on our quick analysis, however, it appears that the report highlights some cases that have already been investigated and closed, as the companies were not found to be involved in the claimed actions,” the statement said.
“The report also presents some complaints about our suppliers that are new to us. Let's get familiar with the complaints and start investigating these cases in more detail. We will publish transparent information about the cases we are actively investigating or monitoring.”
The company said it is committed to sourcing only sustainably produced raw materials that always meet market-specific legal requirements.
“All of our contracts with suppliers of renewable raw materials include strict terms on sustainability,” the statement said.
“All of our palm oil and PFAD suppliers are additionally required to be members of the RSPO, which holds them accountable to the RSPO Code of Conduct and allows for the involvement of the RSPO complaints panel to monitor and seek solutions.”
Upon becoming aware of serious and credible allegations regarding its suppliers, the company said it has suspended all future purchases from those suppliers or supply chains while the cases are being investigated.
“If the sustainability criteria and requirements included in our contracts with our suppliers have been verifiably violated and the nature of these is considered serious and progress to resolve these issues is not made within a reasonable time, we will terminate our contract with the supplier in issue – which we also did in the past,” the company statement said.
This text was automatically translated from English.
Source: international OFI
