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Neste Oil working for Palm Oil sustainability - DropBox.ppt


									Neste Oil working for Palm Oil
  Presentation at EU Conference, 29 Feb 2012
Neste Oil in brief
                                                                2008/2009, 2009/2010, 2010/2011, 2011/2012
• Oil refining and marketing company
  concentrating on delivering fuels for cleaner
   •   Refining of 15 million tons of oil products/ yr
   •   Turnover of 11.9 billion euros in 2010
   •   5,100 personnel
   •   State of Finland as primary owner (50.1%
       holding) Listing on the NASDAQ OMX
       Helsinki exchange                                                              2010, 2011, 2012
• Neste Oil and biofuels
   • World’s largest renewable diesel producer
     with 2 million tons capacity (NExBTL)                 2007, 2008, 2009, 2010, 2011, 2012
   • Leader in sustainability of biofuels
   • Developing third generation biofuel
     technologies and new raw material sources
   • 6 consecutive years at Global 100 list, now
     position 19

                                           Ooi Liang Hin                 2
Market drivers

• The driver for Neste Oil renewable fuels business:
    • Government regulated mandates
    • Need for clean and ‘drop-in’ biofuels
    • Future energy security needs
• The current demand for renewable fuels in EU is
  being driven by:
    • the EU mandate for set targets designed to
        • combat climate change
        • reduce dependence on oil
        • improve security of supply
• EU directive on renewable fuels sets a target that renewable content
  should account for 10% of the energy content of traffic fuels in Europe
  by 2020
• In practice, all industrialized countries have targeted increasing their
  use of biofuels

                                         Ooi Liang Hin                3
Current Supply Status of Palm Oil

•   Neste Oil buys palm oil, CPO and its
    derivates from both Indonesia and
•   Currently we have been supplying
    from a total of 10 palm oil suppliers.
•   From these companies, also includes
    26 smallholder scheme cooperatives
•   Almost half of palm oil products                    Feedstock 2011         Percentage input
    procured, are certified (RSPO and/ or
                                                        Palm Oil CPO           Under 50%
                                                        Palm Stearin           Over 20%
•   Neste Oil plans to have 100%
    certified feedstock by 2015                         Palm Fatty Acids       5-10%

                                                        Waste Animal Fats      Under 20%
*(as declared in the RSPO annual report 2011)           Rapeseed Oil, others   Under 5%

                                                Ooi Liang Hin                  4
Feedstock must meet all the aspects of sustainability

Environmental                  Social                Economic
Reduces emissions       Respects human rights          Available

Respects legislation    Respects labour rights   Commercially feasible

Respects regulation      Enhances economical
                        and social improvement
Uses land efficiently

                                 Ooi Liang Hin          5
Neste Oil – Supplier approach
• We believe in engagements with Suppliers.
• We believe in being involved actively in the process to encourage change
    • We have a regulatory affairs team engaging regulators in Europe and Asia
• We believe in understanding and managing issues
    • We meet NGOs and activists regularly to understand issues
    • We look for potential sustainable development projects (eg. Smallholders)
• We believe in active multi-stakeholder processes for sustainability
    • We are a member in RTRS (Roundtable sustainable Soy), RSB (Roundtable of Sustainable
      Biofuels), RSPO (Roundtable of Sustainable Palm Oil), ISCC (international Sustainability and
      Carbon Certification) and active in PAD (Pangasius Aquaculture Dialogue)
    • Currently our policy for palm oil prioritises palm oil company who are members of RSPO
• We believe in commitment and plans for corrective actions
    • We push our suppliers for RSPO and ISCC certification.
• We believe in assisting our suppliers to understand and reach the market demands
    • Our Supplier engagement team in Singapore engages suppliers for introduction, audit and GHG

                                             Ooi Liang Hin                   6
    Verification of Sustainability in the Supply
    chain     Sustainability Policy and Principles for
                      Biofuels, Company Code of Conduct,
                       Legislation, Customer requirements
                              Due Diligence process

                   Full counterparty
                    study by Risk            Sustainability Due
                    Management                   Diligence
                (company profile) and
                Security (counterparty        by Corp. HSSE       2nd/3rd party audits,
                         study)                                        if needed

                           Agreement on Data collection

    Communications              Agreement drafting:
planning including Issue             Neste Oil
   management plan              Sustainability clause

                             Reporting (using Delivery
                                Form) by Supplier                 Control:
                            Data input to BioCriteria tool        Development plan àcorrective actions
                             for Reporting to authorities         Follow-up
                                  and/or customers                Reporting

                                               Ooi Liang Hin                   7

•   Neste Oil is committed on delivering sustainable, cleaner
    traffic fuels
•   Our renewable fuel feedstock includes Palm Oil products and
    a variety of other materials
•   To meet requirements set in the European Union Directive,
    Neste Oil is committed to certify our whole supply chain as
•   We are committed to assist our suppliers to meet the

                              Ooi Liang Hin         8
                Thank You!


Ooi Liang Hin              9

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