Annual Report
2024
CHANGE RUNS ON
RENEWABLES
Non-ofcial version
2
Annual review Governance Review by the Board of Directors Financial statements
Annual review 3
2024 in brief 4
Key gures 2024 5
CEO’s review 6
Strategy 8
Our businesses 9
Innovation 16
Sustainability 17
Climate 19
Biodiversity 23
Human rights 25
Supply chain & raw materials 28
Compliance 32
People 33
Safety 35
Sustainability data package 37
Governance 63
Corporate Governance Statement 64
Risk management 79
Remuneration report 84
Review by the Board of Directors 90
Review by the Board of Directors 91
Sustainability statement 100
Key gures 150
Calculation of key gures 152
Financial statements 155
Consolidated nancial statements 156
Parent company nancial statements 214
Proposal for the distribution of earnings and
signing of the Review by the Board of Directors
and the Financial Statements 235
Auditor’s Report 236
Information for investors 242
Information for investors 243
Key gures 2024 245
Content
How to read this report
Neste’s Annual Report 2024 consists of the Annual
review, Governance, Review by the Board of Directors
and Financial statements. This report covers the period
from 1.1.2024 to 31.12.2024.
In 2024, a pivotal shift in sustainability reporting took
effect with the implementation of the Corporate Sustain-
ability Reporting Directive (CSRD), mandating compa-
nies to disclose comprehensive information about their
environmental and social impacts, risks and opportu-
nities. To ensure comparability and accountability, the
EU has adopted the European Sustainability Report-
ing Standards (ESRS). Companies subject to the CSRD
must adhere to these standards in their reporting.
The Review by the Board of Directors within this report
includes Sustainability statement prepared in accor-
dance with the CSRD and ESRS.
To complement the Sustainability statement, the
Annual review includes additional relevant sustainability
topics and describes Neste’s sustainability work in 2024.
All sustainability indicators and metrics are collected
under Neste’s Sustainability data package.
Throughout this report, the following
icons are used to indicate links to
supplementary information:
Sustainability statement in the
Review by the Board of Directors
Sustainability data package
in the Annual review
Information on Neste’s website
Information in the Annual Report
Video on Neste’s external channels
3
Annual review Governance Review by the Board of Directors Financial statements
Annual review
2024 in brief 4
Key gures 2024 5
CEO’s review 6
Strategy 8
Our businesses 9
Innovation 16
Sustainability 17
Climate 19
Biodiversity 23
Human rights 25
Supply chain & raw materials 28
Compliance 32
People 33
Safety 35
Sustainability data package 37
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Safe
Days
278
Average number
of personnel
5,796
Our renewable products helped
reduce greenhouse gas emissions
12.1 MtCO
2
e
Revenue
20,635 MEUR
Our dividend proposal
for 2025 per share
0.20 EUR
1,252 MEUR
Comparable
EBITDA
In brief
2024
Neste is the world’s leading producer of sustainable aviation fuel (SAF) and
renewable diesel and a forerunner in creating solutions for mitigating climate
change and accelerating a shift to a circular economy.
Watch video of Neste’s year 2024
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Governance Review by the Board of Directors Financial statements Annual review
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Key figures 2024
Revenue, EUR million
20222021
15,148
25,707
2023
2024
25,000
20,000
15,000
10,000
5,000
0
22,926
20,635
EBITDA, EUR million
20222021
2,607
3,048
2,548
2023 2024
3,000
2,500
2,000
1,500
500
1,000
0
1,005
Comparable EBITDA, EUR million
20222021 2023 2024
3,500
3,000
2,500
2,000
1,000
1,500
500
0
1,920
3,537 3,458
1,252
Leverage ratio, %
20222021 2023 2024
40
15
10
0
5
Financial target: A leverage ratio of below 40%
0.6
13.9
22.7
25
20
36.1
30
40
35
Financial targets
EBITDA
€350 million
run rate improvement
by the end of 2026, of
which €250 million from
operational costs
Leverage
< 40%
maintaining our
investment grade
credit rating
On 13 February 2025,
Neste announced updated financial targets for 2025–2026
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Governance Review by the Board of Directors Financial statements Annual review
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CEO’s review
Focusing on performance improvement
The year 2024 was marked by geopolitical, economic
and regulatory uncertainty. For Neste, the year was par-
ticularly challenging. New players and increased capac-
ity have entered the renewables industry, resulting in
a decline in product prices and intensified demand for
waste and residue raw materials. Consequently, sales
margins fell significantly below previous years’ levels.
In addition, our refineries faced some operational chal-
lenges that have since been resolved.
Our 2024 full-year comparable EBITDA totaled EUR
1,252 million, compared to EUR 3,458 million in 2023.
This result level is unsatisfactory. In October 2024, we
initiated a full potential analysis. The goal was to identify
all necessary measures to ensure solid performance in
all market conditions. In October 2024, we also restruc-
tured our organization and appointed a new leadership
team to expedite decision-making to navigate the com-
plexities of the current business environment.
The company's Board of Directors proposes that a
dividend of 0.20 euros per share be distributed for 2024
(1.20 euros in 2023).
Rotterdam growth project proceeds
As the world's leading producer of renewable diesel
and sustainable aviation fuel (SAF), we refine renewable
fuels on three continents, and our nameplate capacity
of renewable and circular products is 5.5 million tons
per year. During 2024, we proceeded with our signifi-
cant growth investment project in Rotterdam. After its
completion in 2027, our renewables production capac-
ity will be 6.8 million tons per year.
In Porvoo, we successfully completed a major turn-
around in a shorter time frame than before. During the
turnaround, the Porvoo refinery was one of Finland's larg-
est construction sites, with approximately 7,600 people,
more than 1.4 million working hours and a total invest-
ment of around 390 million euros. In Porvoo, we con-
tinue refining crude oil and renewable and recycled raw
materials into more than a hundred different products,
which we deliver to our customers globally. In 2024, we
also had planned maintenance shutdowns at the renew-
able products refineries in Singapore and Rotterdam.
The year 2024 was challenging for Neste, as the renewable fuels
market changed dramatically. We operate at the forefront of
climate change mitigation, and in the long term the company's
prospects are positive, but the path forward is non-linear.
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Solutions for decarbonization
Neste has been a pioneer in the green transition for years,
and we have made substantial investments in renew-
ables. We source a wide range of renewable waste and
residue raw materials and refine them into high-qual-
ity renewable fuels. In this way, we help our customers
meet their obligations and achieve their own sustainabil-
ity targets.
Sustainability is deeply rooted in Neste. In 2024, we
were again recognized for our sustainability efforts in
numerous evaluations and rankings by external inde-
pendent parties.
Despite recent headwinds in the green transition, the
challenge of climate change continues to be urgent. The
coming decades necessitate a significant reduction in
the use of fossil energy sources. Neste is well-positioned
to address this challenge, offering solutions that enable
decarbonization even in hard-to-abate sectors like avia-
tion. Thus, our long-term business fundamentals remain
strong.
Towards efficiency and
cost-competitiveness
In 2025, the market for renewable fuels is expected to
grow, driven by mandates and incentives like ReFu-
elEU Aviation. However, voluntary demand for sustain-
able aviation fuel is likely to remain constrained. The year
2024 showed that the markets for renewable products
are more volatile than before, emphasizing the need to
deliver value for our stakeholders consistently, regardless
of market conditions. We have the prerequisites for this,
but decisive measures are also needed. The company's
cost structure and operating model must be adjusted to
reflect the current market realities.
In mid-February 2025, we launched a multi-faceted
performance improvement program. The objective is to
improve Neste’s performance through cost discipline
and refocusing on the core so that we can continue to
invest in growth and deliver strong shareholder returns
in the future. We have also updated our financial targets
to reflect the current priorities.
With safety as our top priority and the operational reli-
ability of our refineries as a key enabler for success, we
are now focusing on ensuring efficiency and excellent
performance in all parts of the organization and suc-
cessfully completing the Rotterdam growth investment.
It is clear that there are numerous uncertainties in the
operating environment in the future as well. We cannot
influence all of them, but we can improve our own per-
formance and competitiveness. This is how we can best
create value for our stakeholders in the future.
I took on the position of President and CEO of Neste
in October 2024 with enthusiasm and determination.
Neste is a unique company that I am honored to lead.
I have been impressed by the company's own inno-
vations, engineering, sustainability expertise and resil-
ience. I want to thank Neste's personnel, shareholders,
customers and other stakeholders for the good coop-
eration, and I look forward to the joint journey we have
ahead of us!
The coming decades necessitate a
significant reduction in the use of
fossil energy sources. Neste is well-
positioned to address this challenge,
offering solutions that enable
decarbonization even in hard-to-abate
sectors like aviation. Thus, our long-term
business fundamentals remain strong.
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At Neste, we are leading the way towards a sustainable future. We are
committed to further strengthening our position as the world’s leading
producer of sustainable aviation fuel and renewable diesel.
We at Neste have a successful history with strong value
creation over the past 20 years. Our investments in
renewable fuels have made us the market leader in sus-
tainable aviation fuel (SAF) and renewable diesel. As the
world needs to mitigate climate change and shift away
from fossil fuels, there will be a growing market for low-
er-emission fuels in the long term. Successful decar-
bonization of hard-to-abate industries such as aviation
is heavily dependent on drop-in solutions like SAF.
Neste is able to utilize low-quality renewable raw mate-
rials to produce high-quality renewable fuels at scale. Our
key sources of competitive advantage stem from global
raw material sourcing and unique pretreatment capabili-
ties. We also have refining capacity on three continents,
enabling global value-chain optimization.
Neste continues to seek growth in renewable fuels
targeting market leadership, cost competitiveness and
technology advantage. During the coming few years,
the company will extract the full commercial potential
from its existing operations and the Rotterdam refinery
expansion. Neste aims to improve refinery performance
through better safety, reliability and project execution. In
2025–2026, the company will focus on defined priorities
Strategy
and reset its cost structure, while in 2027–2028 it will pre-
pare next steps of growth, focusing on selected devel-
opment initiatives. Maintaining a strong balance sheet
will be crucial in both of these phases.
As the renewables industry matures, Neste will
increase its focus on competitiveness and capital disci-
pline. Our Marketing & Services and Oil Products busi-
ness areas play an important role as cash generators
enabling growth in renewables. As a global industrial
company, we must improve safety and operational effi-
ciency throughout the company, while continuing our
efforts to broaden the raw material base and to develop
scalable and cost-efficient production technologies in
renewables.
While the recent market environment has been chal-
lenging, we are committed to further strengthening our
position as the world’s leading producer of sustainable
aviation fuel and renewable diesel. We have local mar-
ket expertise combined with global scale. Our renew-
able fuels capacity will be increased to 6.8 million tons in
2027. With world-class operations on three continents,
Neste will be well positioned to create value in the future.
Neste’s priorities
2025–2026
2027–2028
Extract full commercial potential from the existing core and Rotterdam expansion
Improve refinery performance through safety, reliability and project execution
Focus on selected priorities
and reset cost structure
Prepare next steps of growth
with targeted development initiatives
Maintain strong balance sheet
Market
leadership
Cost
competitiveness
Technology
advantage
Ambition
Growth in
renewable
fuels
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Neste provides renewable, lower-emission
fuels for transportation, aviation, marine
and other industrial uses, as well as renewable
and circular solutions for the chemical and
plastics industries.
Our businesses
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Production capacity on three continents
We produce renewable products at our refineries in Fin-
land, the Netherlands and Singapore, as well as through
our joint operation with Marathon Petroleum in Martinez,
California, the U.S., entirely from renewable raw materi-
als with an annual nameplate capacity of approximately
5.5 million tons. When completed, Neste’s Rotterdam
refinery capacity expansion project will further increase
the company’s total production capacity of renewable
products to 6.8 million tons annually. This will help us
meet the increasing global demand for lower-emission
products.
Neste is also a technologically advanced refiner of
high-quality oil products with a commitment to reach
carbon neutral production by 2035. The annual pro-
duction capacity of fossil products at the Porvoo refin-
ery was some 10 million tons in 2024, impacted by the
major turnaround in the spring of 2024. Neste has been
introducing renewable and recycled raw materials such
as liquefied waste plastic at its oil refinery in Porvoo, with
the ambition of making it the most sustainable refinery in
Europe. Neste has initiated a strategic roadmap to grad-
ually transform its Porvoo refinery to a leading renew-
able and circular solutions refining hub. The company
expects the Porvoo refinery’s long-term capacity poten-
tial of renewable and circular products after the transfor-
mation to be about 3 million tons.
Achieving our carbon handprint target
by growing our renewable and circular
solutions capacity
Our target is to help our customers reduce their green-
house gas (GHG) emissions by at least 20 million tons
annually by 2030 with our renewable, lower-emission
and circular solutions. In 2024, our renewable products
enabled our customers to reduce GHG emissions by
12.1 million tons.
Achieving our carbon handprint target by
growing our production capacity
We aim to help our customers
reduce their GHG emissions
by at least 20 million tons
per year by 2030
2017
2018
2019 2020 2021 2022 2023 2024 2030
7.9
8.3
9.6
10
10.9
11.1
11.0
12.1
20 MtCO
2
e
Innovating new
technologies
to utilize
renewable
raw materials
Key actions toward
increasing the GHG
reduction for our
customers
Singapore refinery expansion
and Martinez Renewables refinery
Gradual transformation
of Porvoo refinery to
a renewable and circular
solutions refining hub
Rotterdam
refinery
expansion
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Renewable Products business area
Neste’s Renewable Products business area helps cus-
tomers replace fossil products in aviation, road trans-
portation, polymers and chemicals and other sectors.
Sustainable aviation fuel:
Decarbonizing aviation
Neste continues to support the aviation industry achieve
its ambitious goal of net-zero carbon emissions by 2050
by providing a solution for reducing the emissions from
air travel and transportation.
Neste MY Sustainable Aviation Fuel™ (Neste MY
SAF) is made from 100% renewable waste and resi-
due raw materials such as used cooking oil and animal
fat waste. In its neat form, Neste MY SAF can reduce
greenhouse gas emissions by up to 80% over the fuel’s
life cycle compared to using fossil jet fuels (calculation
method: CORSIA). The use of Neste MY SAF also sig-
nificantly reduces non-CO
2
emissions such as soot par-
ticle emissions compared to fossil jet fuel use. The fuel
can be used as a drop-in solution, as it is compatible
with existing aircraft engines and airport fuel infrastruc-
ture, requiring no extra investment in them.
We are actively working with partners in the aviation
fuel supply chain to grow the availability of Neste MY
SAF globally. The fuel is already used by leading com-
mercial airlines in Europe, North America and Asia-Pa-
cific, including Lufthansa, Air France-KLM, IAG, Finnair,
American Airlines, United Airlines, Emirates, Singapore
Airlines and cargo carriers such as DHL Group and
Cargolux. It is available at an increasing number of major
airports, including San Francisco International Airport,
Los Angeles International Airport, Amsterdam Airport
Schiphol, Frankfurt Airport, Narita International Airport
and Singapore Changi Airport.
In addition, we offer businesses our Neste Impact
emission reduction solution: a tailored service to help
them easily and credibly reduce their aviation related
emissions by purchasing Neste MY SAF. This solution
delivers in-sector emission reductions that can credibly
be used to meet science-based targets or similar sus-
tainability targets.
Examples of partnerships and progress in 2024
Progress in establishing
Neste as a partner
to airlines and cargo carriers
• Providing Neste MY SAF to United
Airlines for use at Chicago O’Hare
International Airport in the U.S.
• Supplying Neste MY SAF to Air Canada
– the first time Neste’s SAF is supplied
to Canada.
• Providing Neste MY SAF to Emirates for
flights from Amsterdam Airport Schiphol.
• Supplying Neste MY SAF to Air New
Zealand marking the airline's largest
SAF purchase to date.
Expanding partnerships
along the fuel supply chain to
grow the availability of SAF
• Delivery of the first batch of CORSIA-
certified sustainable aviation fuel for
purchase in Japan in cooperation with
ITOCHU and GS Caltex.
• Supply of locally produced Neste MY
SAF to Singapore Airlines using Neste's
integrated supply capabilities into
Changi Airport.
Expanding our solution offerings • Launching our new emission reduction
solution Neste Impact for businesses
looking to reduce the carbon footprint
of their air travel and transportation
activities.
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Renewable diesel: Lower-emission solution
for road transportation and other sectors
Neste provides renewable diesel to enable businesses,
other organizations and individuals to take immediate
action in reducing their climate impact and advancing
towards carbon neutrality. We partner with a diverse
range of customers – from transportation companies,
data centers, retailers and municipalities to leaders in
mining, marine, construction and railways – to provide
renewable diesel that supports their climate goals.
In 2024, the greenhouse gas (GHG) emission reduc-
tion customers could achieve by switching fossil diesel
to Neste MY Renewable Diesel™ was up to 75% or up
to 95%
1)
over the life cycle of the fuel compared to fossil
diesel. Neste MY Renewable Diesel is a drop-in solution,
which means it can be used in existing diesel vehicles
and fuel infrastructures as such.
Neste MY Renewable Diesel is available at over 900
stations for customers in Belgium, Denmark, Estonia,
Finland, France, Germany, Latvia, Lithuania, the Nether-
lands and Sweden, and in the United States in California
and Oregon.
1)
The GHG emission reduction varies depending on the region-specific legislation that provides the methodology for the calculations (e.g. EU RED II 2018/2001/EU for Europe and US California LCFS for the US), and the raw material mix used to manufacture the product for each market.
Examples of partnerships and progress in 2024
Expanding the availability of
renewable diesel in road
transportation
• France approved the sales of transport
fuels from 100% renewable raw
materials also to the general public.
• Germany approved unrestricted sales
of unblended, 100% renewable diesel.
• Supplying renewable diesel to BMW for
initial fueling of the company’s newly-
produced vehicles in Germany.
• Helping New Jersey Natural Gas reduce
their fleet emissions with Neste MY
Renewable Diesel.
• Enabling North Brunswick to be the first
township in New Jersey, the U.S., to
transition to renewable diesel.
Driving more sustainable
practices in inland shipping
• Joining forces with OK Slurink and
Scylla to supply Neste MY Renewable
Diesel to Scylla’s 40 river cruise ships in
the Netherlands.
Advancing sustainability
in the data center industry
• Helping data center company
ST Telemedia Global Data Centres
become the first in the industry in
Singapore to power its backup power
generators with Neste MY Renewable
Diesel.
• Providing renewable diesel to Verne,
a provider of sustainable data center
solutions for high intensity computing,
to transition its operations from fossil
to renewable fuels.
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Renewable and recycled feedstock:
Defossilizing polymers and chemicals
Neste provides the polymers and chemicals industries
with renewable and circular solutions that help mitigate
climate change, combat plastic waste pollution and
reduce dependence on fossil resources.
Neste RE™ is a more sustainable feedstock for poly-
mers and chemicals, produced with renewable and
recycled raw materials. With our feedstock, polymers
and chemicals producers, as well as global brands,
can manufacture lower carbon footprint products and
reduce the use of fossil resources.
Renewable Neste RE is produced with renewable raw
materials, primarily waste and residue oils and fats of
renewable origin such as used cooking oil. Neste can
offer two ways to produce Neste RE using renewable raw
materials. We can utilize a segregated process with our
proprietary NEXBTL technology at our renewable prod-
ucts refineries. Alternatively, we can co-process renew-
able raw materials at our oil refinery and apply mass bal-
ancing. Life cycle assessment (LCA) shows renewable
Neste RE produced via our renewable refineries has a
more than 85%
1)
smaller carbon footprint over its entire
life cycle compared with fossil feedstock.
Recycled Neste RE is a product from the chemical
recycling of hard-to-recycle plastic waste or discarded
rubber tires. LCA on recycled Neste RE shows a reduc-
tion of more than 35%
2)
of GHG emissions when plastic
waste is chemically recycled instead of incinerated and
then used to replace fossil feedstock in plastics manu-
facturing. At the same time, chemical recycling helps us
add value to plastic waste, contributing to circularity and
combating plastic pollution.
1)
Life Cycle Assessment on Environmental Impacts of Neste Renewable Polymers and Chemicals (30 June 2021).
2)
Life Cycle Assessment on Environmental Impacts of Chemical Recycling of Waste Plastic – Case Neste (October 2022).
Examples of partnerships and progress in 2024
Partnerships to defossilize
plastics supply chains
• Partnering with leading companies
such as Lotte Chemical, Marubeni
Corporation and Resonac Corporation,
Mitsubishi Corporation, Braskem and
PCS to create more sustainable plastics
made with our renewable and recycled
Neste RE.
• Providing renewable Neste RE as
part of the world’s first supply chain
established for more sustainable
polyester fiber.
Advancing chemical
recycling
• Successful first processing trial run
with a challenging new raw material,
liquefied discarded tires.
• Strengthening chemical recycling
logistics infrastructure in Europe in
cooperation with Tepsa Netherlands
and at the Porvoo refinery.
• Cooperating with Alterra and Technip
Energies to accelerate scale up of
liquefaction capabilities.
Driving circularity
in plastics value chains
• Project agreement with Borealis and
Covestro to enable the recycling of
discarded tires into high-quality plastics
for automotive applications.
Expanding availability of
renewable solutions for plastics
• Introduced co-processed renewable
Neste RE feedstock for the polymers
and chemicals industry.
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Oil Products business area
Our offering includes high-quality oil products and related
services for the road transportation, heavy machinery,
agriculture, aviation and marine sectors, as well as prod-
ucts for the oil and petrochemical industries. Our cus-
tomers include retailers and distributors, oil majors and
trading companies, petrochemical companies and com-
panies marketing lubricants and solvents.
Oil products of fossil origin are processed at our refin-
ery in Porvoo, Finland, which is among the most efficient
and versatile oil refineries in Europe. At the Porvoo refin-
ery, we process crude oil as well as renewable and recy-
cled raw materials into more than 100 products for cus-
tomers globally. We are known for reliability and flexibility
with a comprehensive offering, high security of supplies
and consistent quality.
Neste’s ambition is to gradually transform the oil refin-
ery in Porvoo, Finland into a leading renewable and cir-
cular solutions refining hub. To achieve the ambition at
the Porvoo refinery, Neste is, for example, building an
upgrading unit for liquefied waste plastic, and has started
modifying existing refinery units to enable co-processing
of renewable and recycled raw materials with fossil raw
materials in the conventional refining process. With the
help of co-processing in Neste’s oil refining processes,
the company can produce additional volumes of prod-
ucts that have lower GHG emissions than conventional
fossil products.
Examples of partnerships and progress in 2024
Major turnaround 2024 • Neste’s scheduled maintenance works,
i.e., the major turnaround, took place
at the Porvoo refinery in the spring of
2024. In the successfully completed
turnaround, the refinery was subjected
to statutory inspections, maintenance
works and asset improvement initiatives.
During the major turnaround, the
Porvoo refinery was one of the largest
construction sites in Finland. In total,
some 7,600 people took part in the
turnaround works and completed over
1.4 million working hours. The major
turnaround investment in 2024 totaled
approximately 390 million euros.
Supporting our customers in
reducing their emissions
• Partnering with PVG to enable
households in Europe to heat their
homes with a co-processed lower-
emission solution for portable liquid fuel
heaters.
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Marketing & Services business area
Marketing & Services creates value with customer-
centric solutions, quality products and sustainable part-
nerships in Finland and in the Baltic countries. We serve
consumers, heating fuel customers, fuel distributors and
transportation service providers as well as customers
in a wide range of sectors including aviation, shipping,
industry and agriculture. We seek to develop a diverse
range of services aiming to provide the best customer
experience, enhanced by digitalization and innovations.
We support our customers in reducing their green-
house gas emissions by offering Neste MY Renewable
Diesel™, Neste MY Sustainable Aviation Fuel™ and
electric vehicle charging services. We also create addi-
tional value for our customers with solutions like Neste
ReNew™ lubricants and our emission calculation and
reporting solution, Neste MY Carbon Footprint™.
Neste has an extensive station network of nearly 1,000
stations in Finland and the Baltics. We are continuously
expanding the availability of Neste MY Renewable Diesel
at our stations, and we also serve our customers with
the expanding public electric vehicle charging service,
Neste MY Renewable Charge™. Neste offers a network
of 44 Neste MY Renewable Charge stations in Finland
and the Baltics.
Examples of partnerships and progress in 2024
Supporting our
customers in reducing
their emissions
• Valtra’s Suolahti factory in Finland
reported to have used 5 million liters of
Neste MY Renewable Diesel, reducing
greenhouse gas emissions by over
15,000 tons since our partnership began
in 2017.
Accelerating the electrification
of heavy-duty vehicles in close
collaboration with our customers
• Opening our first high-power charging
service for heavy-duty vehicles along the
main highway 3 in Finland.
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Innovation has enabled our progress toward transformation and
global leadership in renewable fuels and circular solutions, and it has
been the driving force in ensuring the success of Neste.
Our core approach in innovation and R&D is to con-
vert low-quality raw materials into high-quality solutions.
A great example of how we create competitive advan-
tages and new business opportunities is our proprietary
NEXBTL™ technology, which allows us to turn renew-
able oils and fats into renewable fuels and feedstock for
polymers and chemicals production.
But we do not stop there. We are continuously work-
ing towards expanding the availability of renewable and
recycled raw materials while developing cutting-edge
technologies to diversify our current portfolio.
R&D as a cornerstone of our success
In addition to exploring new growth opportunities, we
constantly develop, test and analyze our existing renew-
able and circular solutions. In 2024, our R&D expendi-
ture was EUR 86 million.
In 2024, we increased our focus on supporting exist-
ing businesses and enhancing their competitiveness.
We prioritized research investments, among others, to
advance chemical recycling and develop innovative pre-
treatment technologies.
Innovation
In 2024, we continued to build chemical recycling
capacities at the Porvoo refinery in Finland. The new
upgrading facility will be completed in 2025, increasing
our processing capacity for recycled raw materials, such
as liquefied waste plastics, to 150,000 tons annually.
Powering innovation
through collaboration
Partnerships strengthen innovation by fostering the col-
laboration needed for groundbreaking advances. Neste
is collaborating with a network of leading universities
and research institutes as well as with technology com-
panies, startups and value chain partners to introduce
innovations in renewable and circular solutions to global-
scale businesses. We collaborate with startups that
provide valuable insights and help us stay informed
about emerging technologies. In the Neste Veturi pro-
gram together with numerous partners, we continued to
develop more sustainable, globally scalable solutions for
fuels and chemicals from untapped renewable and recy-
cled raw materials.
Protecting intellectual property
Neste’s intellectual property is strategically integrated
with our business and research organizations. We
actively manage and develop a world-class intellectual
property portfolio that ensures strong control and pro-
tection of Neste’s core technology and brand assets.
Neste’s portfolio includes over 2,200 patents and over
800 trademark registrations.
Innovating to diversify our raw material portfolio
Our research and innovation teams have been actively exploring a range of promising new raw
materials and technologies, such as algae, lignocellulose, liquefied waste plastic, novel vegetable
oils from regenerative agricultural practices, Power-to-X and renewable hydrogen.
These globally scalable raw material pools, together with related technologies, will play an
important role in further reducing dependence on crude oil and mitigating climate change.
Read more about future raw materials
17
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Global greenhouse gas emissions continue to rise, making
the path to limiting warming to 1.5°C increasingly narrow.
The urgency of climate action is undeniable.
Our direction is clear: Neste wants to be at the forefront
of accelerating the green transition with its renewable
and circular solutions and to create value for its cus-
tomers, partners and the society. We create solutions
for mitigating climate change and shifting toward the
circular economy by refining waste, residues, and
innovative raw materials into renewable fuels and sus-
tainable feedstock for polymers and chemicals. We
partner widely across industries, for example with the
aviation and road transportation sectors, to help them
reduce their greenhouse gas emissions, and we pro-
vide the polymers and chemicals industries with via-
ble pathways to transition away from fossil resources.
Sustainability is the key driver of our business. Our
work is guided by our sustainability vision covering
Sustainability
climate, biodiversity, human rights, and supply chain
and raw materials. With our partners, we are aiming
for a carbon neutral and nature positive value chain
by 2040.
While working to tackle the global climate challenge
and ecosystem decline, we acknowledge our social,
environmental and economic role locally and globally.
We have an impact on people and the environment
within our own operations and throughout the value
chain. We are committed to high ethical standards, we
act responsibly and respect human rights wherever
we operate. We expect the same from our suppliers
and business partners.
Read more about sustainability at Neste
1)
Source: EDGAR Community GHG Database, a collaboration between the European
Commission, Joint Research Centre (JRC), the International Energy Agency (IEA).
2)
Source: IEA World Energy Outlook (2024).
3)
Source: IEA, IATA.
Global GHG
emission
growth in
comparison
to 1990
1)
>60%
Global GHG emissions
of the transport sector
2)
~22%
of which road
transport represents
75%
Aviation accounts
for approximately
2–3%
of global GHG emissions.
Air travel is expected to
DOUBLE
by 2040
3)
Global climate challenge
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Climate
We lead transformation toward a
carbon neutral value chain by 2040.
Carbon footprint
We reduce emissions in our own production
(scopes 1 & 2) by 50% by 2030 and reach
carbon neutral production by 2035.
We reduce the use phase emission intensity
of sold products by 50% by 2040 compared
to 2020 levels.
Carbon handprint
We help our customers to reduce their GHG
emissions by at least 20 Mt annually by 2030
with our renewable and circular solutions.
Biodiversity
We aim to drive a positive impact on biodiversity
and achieve a nature positive value chain
by 2040.
Human rights
We strive to create a more equitable and
inclusive value chain by 2030 in which everyone
works with dignity.
Pay all of our employees a living wage and
advance living wages in our value chains.
Advance responsible recruitment practices and
the elimination of recruitment fees for workers.
Collaborate to promote respect for children’s
rights and increase access to education for
children.
Tackle inequality and promote diversity and
inclusion across the value chain.
Supply chain & raw materials
We drive a safe and healthy workplace, fair
labor practices and increased commitment to
sustainability across the supply chain.
We expect all our suppliers and business
partners to commit to Neste Supplier Code of
Conduct requirements.
We include social, environmental and ethical
criteria for suppliers as we drive diversification
and increased availability of sustainable
raw materials.
Net positive
impacts on
biodiversity
from new
activities
Nature
positive
value chain
No net loss
of biodiversity
from all ongoing
activities
2040
2025
2035
Neste sustainability vision
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Carbon handprint:
We help our customers to reduce their GHG
emissions by at least 20 MtCO
2
e annually
by 2030 with our renewable and circular
solutions.
Carbon footprint (scopes 1 & 2):
We reduce emissions in our own production
by 50% by 2030 and reach carbon neutral
production by 2035.
We reduce the use phase emission
intensity
1)
of sold products (scope 3) by
50% by 2040 compared to 2020 levels,
and work with our suppliers and partners
to reduce emissions across our value chain
(scope 3).
1)
Use phase emission intensity is calculated by dividing the
emissions from the use of products sold by Neste by the
total amount of sold energy (gCO
2
e/MJ).
We lead transformation
toward a carbon neutral
neutral value chain.
Our climate work is divided into three priority areas: car-
bon handprint, carbon footprint and use phase emis-
sion intensity. We enable our customers to reduce their
greenhouse gas (GHG) emissions by offering renewable
and circular solutions to replace fossil products. Our
carbon handprint target is to help our customers reduce
their GHG emissions by at least 20 million tons annually
by 2030. At the same time, we need to reduce our own
carbon footprint. We are committed to halving the GHG
emissions from our own production (scopes 1 & 2) by
2030 and reaching carbon neutral production by 2035.
We are also committed to reducing the use phase emis-
sion intensity
1)
of sold fuel products and work with our
suppliers and partners to reduce the indirect GHG emis-
sions from our entire value chain (scope 3).
Our climate commitments
drive transformation
toward a carbon neutral
value chain
Climate
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Our carbon handprint
We aim to achieve our carbon handprint target by grow-
ing our renewable and circular solutions capacity.
Through our strategic investment project in Rotterdam,
our total production capacity of renewable products
will expand to 6.8 million tons annually in the coming
years. Moreover, we diversify our raw materials portfo-
lio, increasing the use of raw materials with lower GHG
impact throughout product life cycle. This will help
us address the increasing global demand for lower-
emission products. In 2024, our renewable products
enabled our customers to reduce their GHG emissions
by 12.1 million tons.
What is a carbon handprint?
Carbon handprint quantifies how much our solutions
reduce our customers’ carbon footprint. It is the dif-
ference between the carbon footprint over the life
cycle of a baseline product or service and a lower-
emission product or service. The bigger the handprint is,
the better. All our renewable and circular solutions have
significantly lower GHG emissions over their life cycle
compared to fossil alternatives, which help our custom-
ers reduce their GHG emissions and reach their climate
targets.
To assess the carbon handprint, we first calculate the
GHG emissions of our renewable and circular products
over their entire life cycle from the production of their
raw materials to the end use of the final product. For
fuels, the life cycle ends when the product has been
used, and for other (non-fuel) products such as renew-
able feedstock for new polymers and chemicals, the
life cycle ends in end-of-life treatment and potential
recycling. The life cycle GHG emissions of each of our
renewable and circular products is then compared with
the carbon footprint of the fossil reference defined in the
relevant regulation.
Read more in the Sustainability statement
Neste partnered with the Exponential Roadmap Initiative
Neste and the Exponential Roadmap Initiative (ERI) started collaboration that aims
to align with the criteria of the UN Climate Change High-Level Champion’s Race to
Zero. The aim of the collaboration is to reach net-zero greenhouse gas emissions
by accelerating climate action in the business and its global value chains. In 2024
ERI supported Neste with advice on identifying and closing key gaps in meeting the
criteria for becoming a member of ERI and the Race to Zero.
In 2024, our renewable
products helped reduce
greenhouse gas emissions
12.1 Mt,
which equals the greenhouse
gas emissions from around 4.8
million road cargo trips from
Rome to Stockholm; or more than
24,000 full aircraft round trips from
Amsterdam to San Francisco.
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We use the scope framework defined in the Corporate Standard by GHG Protocol to assess
the GHG emissions across our value chain. Scopes 1 & 2 cover the emissions related to our own
production. Scope 3 includes all other relevant emissions throughout our value chain.
1)
Including purchased services, waste generated in operations, fuel- and energy-related activities and investments.
2)
Includes Use of sold products and End-of-life treatment of sold products.
3)
Use phase emission intensity is calculated by dividing the emissions from the use of fuel products sold by Neste (part of scope 3) with the total amount of sold energy (gCO
2
e/MJ).
Scope 1
Direct emissions
from refining
and Neste
owned fleet
Scope 2
Indirect emissions
from purchased energy
Scope 3
Other indirect emissions
from value chain
Reported GHG emissions in 2024, MtCO
2
e
Purchased
goods
Other
1)
Product
transport
Raw material
transport
Use of
products
2)
54 gCO
2
e/MJ
Use phase emission
intensity of sold
products
3)
Own
operations
Purchased
energy
2.3
0.4
6.6 0.70.8 46.02.4
Our carbon footprint
Reducing greenhouse gas emissions (GHG) in our own
operations as well as across our value chain is essential
to be able to lead the transformation toward a carbon
neutral value chain.
What does our footprint consist of?
Neste reports both direct and indirect GHG emissions
from its production and value chain under scopes 1,
2 and 3, as defined by the GHG Protocol. GHG emis-
sions from the use of Neste's products (scope 3) is the
most significant emissions source, followed by the raw
materials sourcing and transportation. In 2024, the indi-
rect value chain emissions (scope 3) were 56.5 MtCO
2
e,
totaling 95% of Neste's carbon footprint. Direct opera-
tional process emissions and fuel combustion (scope 1)
were 2.3 MtCO
2
e and indirect emissions from purchased
energy (scope 2) 0.4 MtCO
2
e.
Neste recognizes the need to reduce global GHG
emissions by approximately 50% every decade and
reach global net-zero GHG emissions by 2050 or sooner
to limit global warming to 1.5°C compared to pre-indus-
trial levels, aligned with the goal of Paris Agreement. We
aim to achieve this by reducing the GHG emissions from
our own production, sold products and throughout the
value chain.
Our roadmap toward a
carbon neutral value chain
We closely monitor the development of the latest climate
science, sectoral guidance, best practises and the lead-
ing climate frameworks such as the Science Based Tar-
gets initiative (SBTi), Transition Pathway Initiative (TPI)
and Exponential Roadmap Initiative (ERI) to develop our
climate commitments. As a result, achieving significant
emissions reductions within our own operations and
across the value chain remains the central approach to
meeting our climate targets.
Our footprint: Neste’s value chain GHG emissions
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We have identified and taken several measures to
reduce GHG emissions in our production (scopes 1 & 2).
We met our short-term target of 100% renewable elec-
tricity procurement globally in 2023 with electricity sup-
plier contracts and additional market measures. In 2024,
solar power supply started from the Lakari solar plant in
Rauma, Finland. In the medium-term, we will focus on
improving energy efficiency and electrification, and in the
long-term, our decarbonization actions include scaling
new technologies.
In October 2024, we announced a decision to re-eval-
uate our renewable hydrogen plans and withdraw from
investing into a 120 MW electrolyzer at the Porvoo refin-
ery. We still plan to utilize renewable hydrogen at the Por-
voo refinery and are actively evaluating alternative path-
ways for securing renewable hydrogen. Together with
our partners, we continue the work to develop hydrogen
ecosystems connected to our Porvoo refinery.
After the first target of halving our scopes 1 & 2 emis-
sions by 2030, we are committed to reaching carbon
neutrality in our own production by 2035. To achieve this,
on top of the identified short-, medium- and long-term
decarbonization measures, credible additional actions
are needed within or beyond our value chain to neutral-
ize or mitigate the residual emissions.
Use phase emissions of our sold products are a key
priority on our journey toward a carbon neutral value
chain by 2040. Thus, we are committed to halving the
use phase emissions of our own sold products by 2040.
Furthermore, we recognize the need for comprehen-
sive scope 3 emissions management. We are committed
to working with our suppliers and partners to reduce the
indirect GHG emissions across our value chain (scope 3).
In 2024, we continued our internal pilot to assess scope
3 hotspots and to identify our critical suppliers and part-
ners with a significant role in supporting us in our efforts
to decarbonize our value chain.
Our climate commitments remain connected to the
remuneration of Neste’s key personnel, as a perfor-
mance measure in Neste’s long-term incentives (LTIs)
to further drive the commitment and implementation of
actions across the organization.
Progress of Porvoo refinery transformation
In 2023, Neste completed the strategic study on gradually
transforming its crude oil refinery in Porvoo, Finland, into a
leading renewable and circular solutions refining hub. The
planned transformation will proceed in phases, and requires
multiple separate investment decisions during the next
decade before targeted completion. The transformation will
complete Neste’s journey to a 100% renewable and circular
solutions producer when finalized.
Naantali bio-steam boiler
In 2024, a new steam boiler was completed at the
Neste Naantali terminal. The new energy facility pro-
duces steam for the Naantali terminal heating tanks
with a bio-steam boiler using domestic wood chips
and recycled wood as an energy source and an
electric boiler using renewable energy. The supply
of steam produced with renewable fuels and energy
supports Neste’s aim of reducing emissions in our
own production.
Since 2020, evaluating the production carbon footprint
(scope 1 & 2) emission impact of investment decisions has
been mandatory at Neste. To increase the transparency of
the different GHG emission impacts of our investments, we
have introduced new criteria and guidelines to enable our
project teams to evaluate all the potential climate impacts
of the possible investments. To align our investment deci-
sions to support our climate commitments, Neste applies an
internal carbon price for our scope 1 & 2 GHG emissions in
investment calculations, business case evaluations and stra-
tegic planning.
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We aim to drive positive impact
on biodiversity and to achieve a
nature-positive value chain by 2040,
where positive biodiversity impacts
outweigh negative ones.
Neste is dedicated to contributing to a more sustainable
future for people and nature. We are taking a proactive,
comprehensive and a phased approach to biodiversity:
• We aim to create net positive impacts (NPI) for
biodiversity from new activities in our own operations
from 2025 onward.
• We target No Net Loss (NNL) of biodiversity from all
ongoing activities in our own operations by 2035.
• We aim to create nature positive impact throughout
our value chain by 2040.
To achieve these goals, we apply the mitigation hierar-
chy to manage our biodiversity impacts: Avoid and min-
imize all negative impacts, restore affected areas and
finally compensate for the residual impacts from our own
operations.
Our focus areas for biodiversity management include:
• Land: We avoid the conversion of habitats
with valuable biodiversity and aim to prevent
deforestation.
• Water: We promote sustainable water use.
• Pollution: We mitigate environmental impacts
from pollution as required under the applicable
environmental regulations.
Nature positive value chain by 2040
The scope of “Net positive impact” (NPI) and “No net loss” (NNL) approach is set for Neste’s own operations.
No net loss means net zero impact on biodiversity. “Own” means Neste´s direct operations covering activities over
which Neste has direct operational control. NPI and NNL aim to address impacts through a mitigation hierarchy:
avoiding and minimizing losses, restoring affected areas, and finally compensating the residual impacts, so that
no biodiversity loss remains, and a positive impact is created.
Neste aims to drive a positive impact on biodiversity
and achieve a nature positive value chain by 2024.
A nature positive value chain means that
throughout our value chain, we create
more positive impacts on nature than
causing adverse ones.
Net positive impacts
Aim to create net positive impacts
(NPI) for biodiversity from new
activities from 2025 onward.
No net loss
Target no net loss (NNL) of
biodiversity from all ongoing
activities by 2035.
O
w
n
o
p
e
r
a
t
i
o
n
s
Biodiversity vision
launched
2025
2021
2021
2035
2040
S
u
p
p
l
y
a
n
d
p
r
o
d
u
c
t
c
h
a
i
n
a
c
t
i
v
i
t
i
e
s
Biodiversity
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Management of biodiversity impacts in
our own operations
Developing our NPI approach for new
investments
Building on the development of our No Net Loss (NNL)
and Net Positive Impact (NPI) methodology pilots in
2023, we continued to refine our NPI approach in future
investment projects.
In 2024, we defined criteria for application of the
mitigation hierarchy within Neste’s new investments.
This included development of new internal guidance
for investment projects to follow. The first investment
projects have started to implement the criteria in their
development.
Implementing this approach is a key step toward cre-
ating net positive impacts on biodiversity from new activ-
ities starting in 2025.
Biodiversity focus areas on our sites
We believe that by implementing water stewardship, we
can also build more resilient operations. We are therefore
working to update our approach to water and related
targets to achieve a nature positive value chain by 2040.
In 2024, we continued to develop our water stewardship
approach at our sites as part of the update of our environ-
mental management principle. Currently, we are focus-
ing on strengthening the water balance management.
A new wastewater treatment unit is being completed at
the Rotterdam refinery and will start operation with the
expansion of the production unit. New waste water treat-
ment units have been recently installed in Porvoo and
Singapore.
The most recent water risk evaluation of Neste sites
was undertaken in 2024, based on the WWF water risk
filter tool’s 2024 update and new Water Availability data
layer that is in line with SBTN criteria. All our refineries
are located in low-risk areas, but the updated evaluation
indicates that Neste has six small-scale collection and
recycling sites for waste and residue raw material in high
and two sites in moderate water availability risk areas.
Elevated water risks can cause potential pressure in
the pricing of water resources. Both water intake and
wastewater treatment have been considered in long-
term operational financial planning. According to our
company-wide Environmental Management Princi-
ple, major investment projects include an Environmen-
tal Compliance Analysis and a compliance review when
building new production capacity or increasing current
capacity.
Neste has identified some vulnerable species and
habitats to protect on our land, and within the Naantali
terminal three hectares of forest have been protected.
We follow strict criteria to mitigate pollution related envi-
ronmental impacts and risks.
Management of biodiversity impacts in
our supply chain
In 2024, we reinforced our commitment to a nature-pos-
itive value chain. Building on insights from the SBTN
pilot, we continued to map material impacts on our sup-
ply chain by identifying, assessing and prioritizing raw
materials and regions critical for biodiversity. Beyond
deforestation, we evaluated our landscape initiatives to
refine our internal criteria guiding their development. Our
goal is to address key biodiversity impacts across our
value chain, focusing on land, water and pollution, while
developing effective metrics and indicators to achieve
a nature-positive value chain. We are also exploring the
introduction of time-bound targets to support our efforts.
Our collaborations for biodiversity
Piloting science-based targets for nature
Neste was included in the initial target validation group
for science-based targets (SBTs) for nature, by the Sci-
ence Based Targets Network (SBTN) from May 2023 to
September 2024.
We have been applying the pilot methodology and
testing its feasibility in close collaboration with SBTN.
Eventually, we did not set targets for nature based on
the SBTN pilot methodology, but we want to continue
supporting the development and our learning journey
with the methodology in the future.
We have applied the lessons learned in the pilot to set
and develop our own focus areas for mitigating impacts
on nature and biodiversity. We completed our material-
ity analysis of biodiversity impacts according to SBTN
guidance for upstream and direct operations, and con-
cluded that freshwater and land use aspects are mate-
rial for biodiversity and nature in Neste´s value chain.
Biodiversity approach development with
Fauna & Flora
Our collaboration with Fauna & Flora, initiated in 2022,
has been instrumental in developing Neste’s biodiver-
sity work. As an international, world´s oldest wildlife con-
servation charity, they have supported us in creating an
approach to net positive impacts and nature positive
value chain.
Developing practices for the Chemical
industry in Finland
In Finland, Neste has been actively participating in the
Chemical Industry Federation of Finland’s biodiversity
development work. The group of industry representa-
tives has focused on raising biodiversity awareness
within the chemical industry. Actions have included e.g.
meetings with NGOs, arranging training, giving advice
on several files, supporting advocacy, and contributing
to the industry’s overall biodiversity impact mapping.
WBCSD’s roadmaps to nature positive
Neste has participated in World Business Council for
Sustainable Development (WBCSD) work on developing
biodiversity and soil health metrics for regenerative agri-
culture. This work supports us in developing sustainabil-
ity indicators for the novel vegetable oils (NVOs) supply
chain via regenerative agricultural practices. These prac-
tices promote soil health and biodiversity on agricultural
land. In 2024, we tested a set of sustainability indicators
when piloting the new concepts. We will continue the
development based on the lessons from the pilots and
from the collaboration with WBCSD and other research
institutes.
Read more about biodiversity
Read more in the Sustainability statement.
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In line with the United Nations
Guiding Principles on Business
and Human Rights, our Human
Rights Principle sets the path
and standards for a rights-
based approach in all of
Neste’s business decisions.
Embedding respect for human
rights across the business
We implement an ongoing process of human rights due
diligence to identify, assess and address adverse human
rights impacts across our business operations and value
chains. Stakeholder engagement is a key component of
Neste’s human rights due diligence, extending across
our operations, supply chains, and communities. When
assessing human rights risks, we pay special attention
to vulnerable groups such as women, children, migrant
workers and Indigenous Peoples.
Respecting human rights
Ensure respect for human rights across
Neste’s operations and value chains by carrying
out ongoing human rights due diligence to identify,
assess and address adverse human rights impacts
and communicate on our performance.
Reducing inequality
By 2030, we will reduce inequal-
ities across the value chain and
address the root causes of sys-
temic human rights issues.
Advance diversity, equity and
inclusion in our own businesses
and supply chains.
Living wages
We pay all of our employees
a living wage, take action to
promote living wages in Neste’s
supply chains, and require
strategic contractors and suppliers
to pay their employees a living
wage by 2030.
Children & education
We work together with our stake-
holders to increase children’s
access to education by 2030,
and promote respect for children’s
rights by actively supporting and
participating in initiatives aimed
at keeping children in school.
Responsible recruitment
We commit to and promote the
Employer Pays Principle, with
implementation in high risk areas
by 2030, to ensure that no worker
pays for a job and the costs of
recruitment are paid for by the
employer, not the worker.
Neste’s human rights ambition 2030
Human rights
We strive to create a more equitable and inclusive
value chain by 2030, in which everyone works with dignity.
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Focusing on salient issues
Our Human Rights Principle outlines seven priority areas
for human rights at Neste: fair employment; health &
safety; equity, diversity & non-discrimination; children &
young workers; modern slavery; fair treatment and eco-
nomic, social & cultural rights. These are Neste’s salient
human rights issues, that is, those issues that are at risk
of the most severe negative impacts through our activi-
ties or business relationships.
Every year we analyze the saliency of our human rights
impacts based on severity and likelihood. The assess-
ments evaluate our actual and potential impacts on peo-
ple throughout the value chain at a practical and granular
level. This enables us to monitor our progress, account
for any new risks resulting from changes in our business
and accurately focus and prioritize our work. We also
evaluate the effectiveness of our current measures and
assess whether existing practices are sufficient in scale
and complexity to address our salient issues. In 2024,
we held internal workshops to expand the depth and
scope of our saliency assessment across our business
areas.
Human rights due diligence for our
own operations
Recognizing that our human rights impacts may
change over time as our business continues to grow
and evolve, we are committed to embedding ongoing
human rights due diligence across our own operations
and communities:
• Neste is committed to ensuring 100% of our own
operations are covered by robust human rights due
diligence systems by 2025 in line with the Consumer
Goods Forum’s Maturity Journey Framework. In
2024, we made progress on this commitment by
carrying out human rights due diligence maturity
assessments for Neste’s terminals in Finland, the
Netherlands and the Baltics.
• We continue to use human rights criteria and
assessments to inform decision-making on strategic
business development, investments and innovation
Embedding human rights due diligence at Neste
Neste has put in place ongoing management processes to identify, prevent, mitigate and remedy adverse
human rights impacts. We continuously monitor and track the effectiveness of our response, with trans-
parent reporting and communication on how impacts are addressed.
Policies &
management systems
Identify actual and
potential impacts
Cease, prevent or
mitigate adverse impacts
Communicate
Track implementation,
effectiveness and results
Provide for or cooperate
in remediation
Economic, social
& cultural rights
Fair
treatment
Fair
employment
Children &
young workers
Modern
slavery
Equity,
diversity &
non-discrimination
Health
& safety
Our most salient
human rights issues
projects. For example, in 2024, we completed a
human rights impact assessment for the potential
construction and operation of a new unit at Neste’s
Porvoo refinery. The assessment identified and
evaluated potential human rights risks to local
communities, construction workers, and future
employees at the facility, providing recommended
mitigation measures to ensure human rights are
respected throughout the project.
• In 2024, we continued to work proactively to prevent
exploitation and promote respect for labor rights
across our production sites. We pay special attention
to safeguarding the rights of migrant workers and
third-party employees working for contractors and
subcontractors on Neste sites, especially during peak
times such as our expansion projects, shutdowns
and turnarounds. We use a range of practices to
inform these workers about their rights and address
their concerns, e.g. informative posters and leaflets,
induction sessions, contractor social audits, social
toolbox meetings, and site-level complaints channels.
Human rights due diligence
for our supply chains
We assess human rights risks when planning to
enter new sourcing regions for our renewable
raw materials, and expect all of our suppliers to
comply with applicable laws and to follow equivalent
ethical business standards as stated in Neste Supplier
Code of Conduct. Our sustainability screening for raw
material suppliers and our sustainability audits have a
strong human rights focus and prioritize the assessment
of impacts on people.
Read more about the site-level complaints
channels for third-party workers.
Read more in the sustainability data package.
Read more about our supply chain due diligence.
Ongoing Human Rights Due Diligence
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Training and capacity building
We are committed to training our employees and suppli-
ers on human rights and labor standards. Human rights
training is integrated into our global induction for new
employees and all Neste employees are required to com-
plete a mandatory Code of Conduct e-learning course,
which includes topics on advancing respect for human
and labor rights. We also carry out annual capacity build-
ing sessions for our suppliers, which cover a variety of
human rights topics. For example, in 2024 we hosted
an online training session for our renewable raw material
suppliers and sub-suppliers on human rights and forced
labor.
Read more about supplier capacity building.
Responsible recruitment
Neste is committed to advancing responsible recruit-
ment in our operations and value chains, to ensure fair,
ethical and transparent recruitment processes that pro-
tect the rights and wellbeing of jobseekers. In 2024,
Neste took various actions to drive responsible recruit-
ment, including:
• Adding no-recruitment-fee clauses to contracts with
recruitment agencies and staffing firms used
by Neste.
• Strictly enforcing Neste Supplier Code of Conduct
no-recruitment-fee policy in sustainability audits
conducted on suppliers of renewable raw materials.
• Monitoring the implementation of corrective actions
resulting from Neste-led audits of migrant worker
recruitment agencies used by one of our suppliers in
both their sending and receiving countries.
• Participating in the Consumer Goods Forum’s
People Positive Palm Project to provide training
for Neste’s PFAD suppliers to help strengthen their
management systems for responsible recruitment.
As part of this project, we are also engaging in
collective advocacy with the governments of
Malaysia and the sending countries of migrant
workers, supported by the Fair Labor Association
(FLA) and the UN International Organization for
Migration (IOM).
Read more about modern slavery risks in our
Modern Slavery Statement.
Living wages and incomes
In 2024, Neste completed its annual internal living wage
gap assessment covering all countries in its global oper-
ations, using data provided by the Fair Wage Network.
The analysis of assessment results is ongoing, ensuring
a thorough evaluation of diverse remuneration elements
in all locations.
We continue to use living wage data in our onboard-
ing process and sustainability audits for renewable raw
material suppliers, with the dual aim of gaining a better
understanding of our supplier wage practices and rais-
ing awareness to build supplier knowledge of this topic.
In 2024, we assessed the living wage practices of 11
renewable raw material suppliers.
Children and youth
Neste is committed to respecting and supporting chil-
dren’s rights and to implementing the Children’s Rights
and Business Principles throughout our business and
value chains. We were recognized as a leader in the
Global Child Forum’s annual benchmark, The State of
Children’s Rights and Business 2024. Neste was ranked
among the top 10 companies out of 1,802 bench-
marked globally. This accomplishment demonstrates
our ongoing commitment to safeguarding children's
rights throughout our operations and value chains.
In 2024, we continued to work in collaboration with
SOS Children’s Villages India to support vulnerable fam-
ilies and improve children’s lives through education and
life skills training in Kolkata, Nagapattinam and Bawana.
Through this partnership, SOS Children’s Villages also
offers guidance and local expertise to deepen Neste’s
understanding of children’s rights issues in our supply
chains in India.
Worker voice
Engaging directly with workers enhances Neste’s visi-
bility of issues impacting rights-holders on the ground,
enabling more targeted and effective human rights due
diligence. In 2024, we continued to implement worker
voice technology in Neste’s operations and supply
chains. The technology uses an audiovisual survey to
enable direct and anonymous engagement with workers
on mobile devices. In 2024, we conducted 501 anony-
mous worker surveys in our supply chains across Asia
and North America. The survey provides insights into
various topics affecting workers employed by our sup-
pliers and contractors – for example, inequality, living
wages, recruitment fees and children’s access to edu-
cation, all priority areas in Neste’s human rights ambition
for 2030.
Collaboration
We actively seek opportunities to collaborate with our
stakeholders to advance positive systemic change and
enhance our leverage to address the root causes of
adverse human rights impacts. In 2024, we continued
to engage in the Nordic Business Network for Human
Rights (NBNHR), Consumer Goods Forum’s (CGF)
Human Rights Coalition, and the World Business Coun-
cil for Sustainable Development (WBCSD), including
the WBCSD Business Commission to Tackle Inequality
(BCTI).
Read more on our collaborative initiatives.
Reporting
Since 2021, we have been reporting in accordance with
the United Nations Guiding Principles on Business and
Human Rights (UNGP) Reporting Framework.
Read more in the Sustainability statement.
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Five elements
of our Supplier
Code of conduct
We drive a safe and healthy
workplace, fair labor practices
and increased commitment to
sustainability across the
supply chain.
Compliance
with laws and
regulations
Business
conduct
Occupational
health, safety
and security
Environmental
impact and
climate change
Human and
labor rights
Supply chain and
raw materials
Our commitments to responsible and ethical business
depend not only on our own people but also on forming
relationships with business partners who share our com-
mitments. Identifying and selecting good partners are cru-
cial to the sustainability of supply chains. Neste requires
all its suppliers and other business partners to comply
with applicable laws and expects them to follow equiv-
alent ethical business standards as stated in the Neste
Supplier Code of Conduct. We include social, environ-
mental and ethical criteria for suppliers as we drive diver-
sification and increased availability of more sustainable
raw materials.
Neste Supplier Code of Conduct outlines the basic
requirements Neste expects its suppliers and their first
tier suppliers, contractors and business partners to
adhere to and implement throughout their businesses.
Neste aims to include Supplier Code of Conduct in the
contract terms for suppliers, contractors and other busi-
ness partners participating in the delivery of raw mate-
rials, products, components, materials or services to
Neste.
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Sustainability risk assessment in our
supply chains
In 2024, we continued to develop our sustainability due
diligence practices by focusing our audits on suppli-
ers with the highest risks and most significant strate-
gic importance. In 2025, we plan to further strengthen
our supplier due diligence in accordance with upcoming
regulation such as the EU’s Corporate Sustainability Due
Diligence Directive (CSDDD).
In 2024, we conducted a total of 141 sustainability
audits: 66 on renewable and recycled raw materials; 38
on terminals; and 37 contractor audits. Of these, 66 audits
were carried out for renewable raw material suppliers, of
which 13 were on site, 5 were virtual, and 48 were third-
party audits. In 2024, 51 audits were conducted on our
direct renewable raw material suppliers and 15 on our
renewable raw material suppliers’ suppliers.
The majority of findings recorded in renewable raw
material supplier audits in 2024 were related to health
and safety.
Read more in the Sustainability data package
Renewable raw materials sourcing
All Neste´s renewable raw material suppliers are sub-
ject to rigorous sustainability due diligence, as stated in
Neste’s Supplier Sustainability Approval Principle. It sets
the minimum sustainability requirements for approv-
ing suppliers through a multi-step process, including
raw material evaluation, risk assessments, counterparty
screening, a sustainability review and audits.
Neste’s sustainability due diligence process is mainly
managed on Neste’s Supplier Sustainability Portal (SSP),
a digital platform that is used to facilitate our evaluation
of potential and existing renewable raw material suppli-
ers, collect traceability data, support performance moni-
toring and enable active supplier engagement. Suppliers
are required to insert the location of their own produc-
tion and processing site(s), and where applicable, their
own suppliers’ production and processing site(s), to
SSP. As a minimum, we require our suppliers to disclose
their supply chain actors and locations as determined by
Audit findings – different
sustainability categories
renewable raw material suppliers, %
Health & Safety
Human and Labor Rights
Environment
Ethical Business Practices
10%
37%
8%
46%
end-market sustainability regulation such as EU Renew-
able Energy Directive (EU RED). In 2024, we strength-
ened our sustainability survey in SSP for direct suppliers
by adding enhanced risk-based criteria and introduced
a risk-based survey for sub-suppliers. In 2024, the total
number of renewable raw material suppliers onboarded
against sustainability criteria was 222.
Read more about renewable raw material
sourcing
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Liquefied waste plastics sourcing
In addition to the automated counterparty compliance
screening and requiring our liquefied waste plastic (LWP)
suppliers to fulfill the requirements in the Neste Supplier
Code of Conduct, we only accept liquefied waste plastic
that is traceable and complies with the ISCC Plus certi-
fication requirements. In 2024, we continued onboard-
ing new liquefied waste plastic suppliers. Suppliers with
which Neste has an established, ongoing business
relationship are subject to additional sustainability due
diligence.
Crude oil and other fossil raw material
sourcing
As we are transforming from a traditional oil refiner into
a provider of renewable and circular solutions, we con-
tinue to produce high-quality oil products from crude oil
and condensates at our Porvoo refinery in Finland.
In 2024, a total of 36 fossil raw material suppliers were
assessed. We continued to assess all new suppliers and
potential suppliers from countries identified as high risk
in our country risk assessment. Furthermore, for etha-
nol suppliers from higher-risk countries, the sustainabil-
ity due diligence includes an evaluation of production
plant details and raw material origins.
During 2024, we continued to monitor and assess
GHG emission data related to crude oil production and
the crude oils that we purchase and evaluate. In addition,
we include emissions and other environmental and gov-
ernance aspects when assessing potential new crude
oils.
Indirect procurement
Neste’s indirect procurement is responsible for the sourc-
ing, purchasing, contract and supplier management of
goods and services that are not included in the sourcing
and delivery of crude oil and other fossil raw materials or
renewable and recycled raw materials.
In 2024, we internally identified gaps in sustainabil-
ity due diligence within indirect procurement and priori-
tized key areas for improvement. We also continued and
expanded the initiatives and pilots launched in 2023.
This included increasing the use of standardized surveys
and incorporating sustainability due diligence clauses in
more contracts. Additionally, in 2024, we established
site-level complaint channels for third-party workers
during the Porvoo refinery turnaround and audited con-
struction contractors to monitor compliance with our
Supplier Code of Conduct and address any impacts.
Capacity building training of the
suppliers
In 2024, we conducted capacity building training for our
renewable raw material suppliers in Asia, Oceania, the
Americas and EMEA. The focus last year was on health
and safety, as the majority of the findings of the renew-
able raw material supplier audits in 2023 were related to
safety practices. In addition, capacity building training
was held on the topics of environmental management
and human rights. Neste invited all its active suppliers
and encouraged its main suppliers to invite their suppli-
ers to the training. A selection of potential future suppli-
ers was also invited to participate.
More than 80 raw material suppliers joined these dif-
ferent capacity building training sessions with over 120
participants globally.
Read more about supplier engagement
Engaging with PFAD suppliers
While Neste does not use crude or refined palm oil in
the production of its renewable products, we do con-
tinue to purchase waste and residues generated in palm
oil production processes, and we therefore also remain
committed to developing the sustainability of the palm
oil industry. Neste participates in several collaborative
efforts to advance positive social and environmental
impacts in the palm sector.
In 2024, we continued our tradition of hosting annual
workshops with our PFAD (palm fatty acid distillate) sup-
pliers. Alongside collaboration with the industry, Neste
contracted third party deforestation monitoring service
providers to monitor, verify and mitigate deforestation
risks within its PFAD supply chains to complement the
processes already in place.
Since 2017, we have been developing traceability for
our entire PFAD supply chain to palm oil plantations.
During 2024, we were able to independently map and
validate 100% (100%) of our PFAD supply chain to the
supplying palm oil mills and 90% (94%) all the way to
plantations.
Read more about traceability
1)
Based on risk-calibrated Traceable to Plantation approach. Figures are weighted by refinery volumes supplied to Neste.
% of Neste's PFAD supply traceable to plantation
1)
2017
2018
2019 2020 2021 2022 2023 2024
44%
71%
85% 85%
86%
93%
90%
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Renewable raw materials
Neste uses a wide variety of renewable raw materials
each year to produce renewable fuels as well as renew-
able feedstock for the production of polymers and
chemicals.
Used cooking oil, animal fat from food industry waste,
and various wastes and residues from vegetable oils
processing represent the top three waste and residue
raw material categories we use, based on their current
and estimated shares of Neste’s total annual renewable
raw material inputs. In 2024, 90% of our global renew-
able raw material inputs were waste and residues.
Our global sourcing capabilities were further strength-
ened in 2024, as the total number of our renewable raw
material suppliers reached 624.
We are constantly working to diversify our current
portfolio with scalable new raw materials as well as to
develop technologies enabling their use.
Recycled raw materials
Neste has been advancing chemical recycling to accel-
erate the transition to a circular economy for plastics.
We are using raw materials like liquefied waste plastic
and liquefied discarded rubber tires and refine them into
high-quality drop-in feedstock for the production of new
plastics.
To scale up chemical recycling, we are building upgrad-
ing capacities for 150,000 tons of recycled raw materi-
als, such as liquefied waste plastic, per year. The new
unit is planned to be finalized in 2025. In 2024, we con-
tinued our processing runs at our Porvoo refinery.
Read more about our raw materials
Growing a scalable portfolio of renewable raw materials
Used cooking oil (UCO)
UCO consists of oils and fats of a vegetable or animal
origin that have been used by the food industry or
restaurants to cook food for human consumption.
Animal fat from food industry waste.
Animal fat is derived from the food industry’s
meat processing waste.
Vegetable oil processing waste and residues
Neste's renewable raw material portfolio includes
several vegetable oil processing wastes and residues,
such as palm fatty acid distillate (PFAD), spent
bleaching earth oil (SBEO), empty fruit bunch oil
(EFBO) and palm oil mill effluent (POME).
Lignocellulose
Waste and residue streams from
agriculture, forestry and the forest
industry provide viable and sustainable
raw material options. Our focus is on
resources that are currently underutilized.
Algae
Microalgae can be cultivated wherever
there is water and sunlight, including
saline water and land areas unsuitable
for other types of cultivation.
Renewable hydrogen
Replacing hydrogen produced from fossil
raw materials with renewable hydrogen is
one important means of reducing refineries’
GHG emissions. In the long term,
renewable hydrogen also builds a
foundation for the use of Power-to-X (PtX)
technologies and e-fuel production.
Other waste and residues
Our raw material portfolio also includes fish fat from
fish processing waste, tall oil based raw materials,
food waste, technical corn oil and acid oils.
Vegetable oils
In 2024, the share of vegetable oils, such as rapeseed
oil, soybean oil and sunflower oil, was approximately
10% of our global renewable raw material inputs.
In 2024, globally
90%
of Neste´s renewable raw material inputs
were waste and residues.
Novel vegetable oils
produced with regenerative
agricultural practices, such
as intermediate cropping.
Challenging, lower-quality
waste and residues such as
acid oils and wastewater-derived
grease (i.e., “brown grease”).
Growing the renewable raw materials
pool short- to mid term by continuous
development of new raw materials
and our sourcing and pretreatment
capabilities.
Advancing our research and
innovation work to scale up new
raw materials and technologies
in the long-term.
Today
Long term
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We are committed to high ethical standards and conduct our
business in compliance with applicable laws and regulations.
This means acting transparently, responsibly, with integrity
and in accordance with our values.
Neste’s Code of Conduct provides the framework for
our global business operations and is a key element of
our compliance program. We also expect our suppliers
and business partners to comply with applicable laws
and adhere to equivalent ethical business standards, as
outlined in our Supplier Code of Conduct.
Neste’s compliance policies, principles and standards
are updated regularly and form the basis of our compli-
ance program. They are implemented through commu-
nication and training. As part of this, we regularly com-
municate internally on compliance-related topics and
train our employees through both e-learning courses
and targeted in-person and virtual training. The target
groups for the trainings are based on role and risk level.
We constantly develop our compliance program with
special efforts in the defined key focus areas: compe-
tition law compliance; anti-corruption; trade sanctions;
privacy and anti-money laundering. We carry out annual
compliance risk assessments to support us in our risk-
based approach and to guide us in our compliance
efforts and risk prevention and mitigation actions in the
organization.
Compliance
In 2024, we revised our Anti-Corruption Principle and
Trade Sanctions Principle. As part of our continuous
training efforts, we revised and issued three e-learning
courses in 2024:
• Privacy e-learning course for approximately
5,000 employees
• Anti-Corruption e-learning course
for 3,700 office workers
• Competition Compliance & Trade Association
e-learning course for a defined group of
approximately 120 employees
To enhance awareness, we also issue regular compli-
ance communication via various channels, including our
Compliance Hub channel and global intranet. In 2024,
this communication covered topics such as the impor-
tance of speaking up, privacy, anti-corruption, compe-
tition law and information sharing, trade sanctions and
gifts and hospitality.
Read more on Neste’s compliance program in
the Sustainability statement.
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At Neste, it is our people who bring the
strategy to life, driven by our culture.
Our culture is based on our values – we care, we
have courage, we cooperate. It fosters belonging and
encourages conscious decision-making daily. We
embrace diversity, equity and inclusion.
We adapt to the changing business environment and
adjust our ways of working as required. To improve
cost effectiveness and strengthen long-term compet-
itiveness, Neste simplified its organizational structure
and operational model and streamlined business and
function-level operations during 2024.
Due to the organizational changes, a significant part
of employees were impacted by line manager change,
lateral move, demotion, promotion or reclassification
of the job. The number of line managers was reduced
as the average size of teams increased. There was
also an increase in both the geographical dispersion
and share of multinational teams. The organizational
changes led to a reduction of approximately 390 roles
globally. Neste offered change support for all employ-
ees globally. Career coaching was provided for those
who were made redundant. The new organization was
effective as of April 1, 2024.
In 2024, Neste’s renewed short-term incentive
plan (STI) was implemented to support business
performance.
By the end of 2024
Neste employed
an average of
5,876
1)
employees with approximately
629
new employees globally,
of whom approximately
64%
were permanent
positions.
People
1)
The number in the Financial statements
is reported as an average and does not
include temporary hourly workers.
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Everyone contributes
to the company’s success
At Neste, we have a history of working together to over-
come challenges and to succeed. We believe in open
communication and continuous learning from one
another, and encourage dialogue to build engagement.
We offer versatile global services to ensure efficient ways
of working and to support wellbeing at work as well as
work-life balance.
We actively listen to employee feedback by conducting
global employee engagement surveys regularly. The sur-
vey results are discussed systematically across the orga-
nization and translated into actionable plans at all levels
of the organization. In addition, we conduct employee
surveys targeted at specific groups – for example, new
joiners and summer trainees, as well as employees leav-
ing the company.
At a local level, a key element of employee cooperation
is that it is driven by local requirements in each country
of operation. Neste is committed to following applicable
local collective agreements and has local cooperation
bodies or works councils in Finland, Rotterdam and Sin-
gapore. In 2024, a works council was also established
in Amsterdam.
As a result of requests from Neste employees, Neste
started negotiations with employee representatives aim-
ing to establish a European Works Council (EWC) that is
based on EU legislation.
Empowering continuous learning
and development
We encourage everyone to be the leader of their own
development by driving clarity, supporting growth and
empowering renewal. We support our employees’ indi-
vidual development goals and develop our competences
to meet business targets. This includes regular Forward
discussions with line managers to discuss development
plans and set learning goals.
We provide versatile learning opportunities to support
the growth of our people. To support the growing demand
for continuous learning, we launched a new learning
platform, WeLearn, in October 2024. The platform offers
personalized learning experiences to help employees
discover new learning opportunities based both on role
requirements and personal skills and interests.
In 2024, we organized several strategic development
programs for different target groups with the help of our
partners. The programs are built on strategy and lead-
ership and are delivered by top-of-the-field professors
to ensure an inspiring learning experience. By bringing
together people from different business units, we ensure
cross-functional cooperation and build the foundation of
future success.
The average time spent in learning programs for Neste
employees in 2024 was 18.5 hours, and our compa-
ny-wide development programs had more than 640
participants.
Wellbeing at work
At Neste, safety has always been the cornerstone of all
we do, and it is interlinked with health and wellbeing.
Our wellbeing model defines the various aspects of well-
being, in which we all play a part. We follow the Neste
Occupational Health Principle throughout the organi-
zation, subject to local legislation and requirements. In
2024, we supported the wellbeing of our employees by
providing various services globally and additional sup-
port like webinars on change adaptation and resilience.
Read more in the Sustainability data package
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At Neste, managing our business safely
is a precondition for everything we do.
We are committed to creating safety
for people, the environment, our assets,
operations, information and brand.
Creating safety together is our common goal, and it is
integrated into daily operations and workplaces, with
clear expectations of everyone working for the com-
pany. Commitment to safety leadership is the founda-
tion for leading and managing safety.
Our Safety Leadership Principle outlines our ambi-
tions, expectations and accountabilities for all employ-
ees and anyone working for the company. Safety man-
agement and its continual improvement is defined by
the Neste Operational Excellence Management Sys-
tem (OEMS). This provides the underlying principles
and standards for creating excellence in safety. The
requirements extend not only to our employees but
also to our suppliers and partners.
We take a holistic view of safety. We monitor the
number of Neste Safe Days as our primary lagging
safety measure, which covers all our operations and
signifies the total number of days without incidents.
Neste Safe Day Incidents cover incidents related
to our main safety risks: occupational accidents; pro-
cess safety events; fires and leaks; environmental
non-compliances; marine safety incidents; and traffic
accidents.
Safety
Creating safety together
Safety
at Neste
Understand
hazards and risks
Manage
risks and
opportunities
Learn from
experience
Commitment to
operational excellence
Assets
Environment
People
Information
Operations
Brand
In 2024,
the number of
Safe Days was
278
(2023: 278),
and the number
of incidents was
108
(2023: 94).
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Safety of people
At Neste, the safety of our people and partners is par-
amount. We are committed to creating workplaces that
are free from fatalities and serious injuries.
In 2024, we focused on fatality prevention by devel-
oping proactive safety practices to ensure critical safe-
guards are in place that were functioning and effective.
We started work to unify and develop our approach
to verifying safeguards for high risk work by creating
standardized Safe Work Practices such as Working at
Heights and Hot Work. Different sites and locations are
involved in the work, enabling the sharing of best prac-
tices and promoting learning from each other.
Proactive verifications of safeguards, along with obser-
vation tours and inspection rounds, facilitate productive
safety discussions and interactions with frontline work-
ers. During the Porvoo Turnaround 2024, over 6,000
preventive safety activities were conducted.
In 2024, we continued I Act Safe learning workshops.
These reached a broad audience, with a total of 27 work-
shops organized and approximately 350 participants.
The workshops focused on developing safety leader-
ship and management.
Creating safety together with our contractors and sup-
pliers is vital. We hold them to the same high standards
as ourselves and proactively work with them to ensure
they have the information and resources for safe work
practices. Contractor safety performance is included in
Neste’s safety performance statistics and continuously
improved through a rigorous contractor selection pro-
cess, performance evaluations, mutual feedback and a
strong emphasis on safe subcontracting. In 2024, our
Oil Products business continued collaborative safety
development and partnership with key contractors.
In 2024, our dedication to contractor safety resulted in
1,473 performance evaluations and over 34 safety man-
agement system audits. This rigorous assessment pro-
cess ensures high standards and identifies key areas for
improvement.
Our global Neste Safety Week, focusing on building
trust, psychological safety, and a culture of open ques-
tioning, engaged all employees through various local
and global events. We also recognized outstanding
contractor commitment to safety by presenting Contrac-
tor Safety Awards to numerous recipients across Neste
locations worldwide.
In 2024, Neste’s occupational safety performance
rate including contractors (TRIF, or the rate of all record-
able workplace injuries per million hours worked) did not
reach the target level (1.8) and was 2.2 (2023: 2.3). We
continue to prioritize contractor safety, and our efforts
are reflected in a TRIF of 1.7.
Process safety
At Neste, process safety encompasses the design and
construction of safe facilities, safe operations, life cycle
asset management and regular inspections.
In 2024, we continued to support the implementation
of the Neste Process Safety Fundamentals at produc-
tion sites, integrating them into daily work and learning
processes. Process Safety Fundamentals, launched in
2023, are learning resources which define good opera-
tional practices supporting our operations in the preven-
tion of process safety events and major accidents.
In 2024, the process safety performance rate (PSER,
or the rate of process safety tier 1 and tier 2 events per
million hours worked) was 1.3 (2023: 1.2), which did not
reach the 2024 target level (0.9). Process safety per-
formance is recorded according to the American Petro-
leum Institute (API) standards.
Product safety
Providing the required registrations and accurate safety
data sheets in all the countries of our operations is at
the core of creating product safety at Neste. This work
requires continuous cooperation and monitoring of
global chemical legislation. Product safety is not only
Process safety
event rate
(PSER)
1.3
about managing our own products, it includes also our
value chain.
Identifying chemical substances included in the vari-
ous regulatory reporting schemes is becoming increas-
ingly important. In 2024, we developed tools and data to
manage the new EU Corporate Sustainability Reporting
Directive (CSRD) requirements for reporting Substances
of Concern. We also continued the work to ensure safe
handling of chemicals at Neste to prevent hazardous
exposure for workers.
Read more in the Sustainability data package
Read more about safety
Environmental safety
In 2024, we had 15 environmental permit violation cases
at refineries (12), pre-treatment plants (1) and terminals
(2) with limited local environmental impact. No serious
environmental incidents occurred at Neste's refineries or
other production sites.
In 2024, the environmental authorities (i) imposed an
order subject to a penalty on the Neste Rotterdam site
relating to the exceeding of emission limits for volatile
organic carbon components (VOC) and (ii) initiated an
investigation under criminal law.
In addition to and separately from the above environ-
mental incidents, the authorities informed their intention
to impose an order subject to penalty relating to process
safety on the Neste Rotterdam refinery.
Additionally, there are 4 orders subject to pen-
alty pending from 2022 and 2023 as well as
one investigation under criminal law following an
alleged violation associated with the flaring system.
Neste strives for timely execution of all orders subject
to penalty. Neste has contested the legality of 4 of the
above orders in objection procedures which are pending.
Neste is fully committed to having compliant opera-
tions and takes significant steps in solving the alleged
issues. We remain in close contact with the authorities to
address any issues relating to environmental regulation
and permits as part of a tightened supervision regime.
Total Recordable
Injury Frequency
(TRIF)
2.2
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Sustainability
data package
Sustainability reporting in 2024 38
Value creation 40
Performance in gures 41
Climate and the environment 41
Supply chain and raw materials 43
Safety 44
People 45
Human rights and compliance 47
GRI content index 48
TCFD recommendations disclosure 55
SASB content index 56
UN Guiding principles reporting framework index 58
Principles for calculating key indicators 59
Independent Practitioners’ assurance report 61
38
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In 2024, Neste’s sustainability reporting
was renewed to comply with the Corporate
Sustainability Reporting Directive (CSRD).
To ensure reporting continuity, Neste’s Sustainabil-
ity data package serves as a single source for rele-
vant sustainability metrics and indicators. The pack-
age includes metrics reported in accordance with the
European Sustainability Reporting Standards (ESRS),
as well as indicators with reference to the Global
Reporting Initiative (GRI) and entity-specific sustain-
ability indicators.
Sustainability
reporting in 2024
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Reporting frameworks and guidelines
We are committed to the UN Global Compact (UNGC),
United Nations Guiding Principles on Human Rights
(UNGP) and the International Labor Organization (ILO)
Declaration on Fundamental Principles and Rights at
Work. Neste follows the OECD Guidelines for Multina-
tional Enterprises and guidelines for good governance.
Neste has been a signatory of the UNGC Principles since
2014. Our Communication of Progress with Global Com-
pact Principles for 2024 information will be reported via
the UNGC portal.
Our reporting meets the requirements of the European
Sustainability Reporting Standards (ESRS) as set out in
the Commission Delegated Regulation (EU) 2023/2772
and the Finnish Accounting Act 1997/1336. The infor-
mation is disclosed in the Sustainability statement in the
Review by the Board of Directors.
We use the GRI Universal Standards 2021, GRI Sec-
tor Standards for Oil and Gas Sector 2021, as well as
Topic Standards with Standard versions indicated in the
GRI Index. Alignment with relevant reporting frameworks
is indicated for selected metrics in the data package.
Scope of GRI reporting for 2024 is based on material-
ity assessment conducted in 2022, double materiality
assessment conducted in accordance with the ESRS
in 2024 and complemented by Neste’s understanding
of additional stakeholder expectations for sector-spe-
cific topics and metrics that are not in the scope of the
Sustainability statement. In addition to material topics
according to ESRS, we report in reference to GRI on
selected environmental matters, including waste, water,
and non-GHG emissions to air and water, social mat-
ters such as diversity and employment, and gover-
nance matters like anti-corruption. Scope of reporting
is selected to ensure reporting continuity and meeting
specific stakeholder and external reporting needs. The
GRI index provides a navigation and overview of topics
for users of the Annual report.
Neste is committed to applying the Task Force on
Climate-related Financial Disclosures (TCFD) reporting
principles from 2019 to disclose climate-related finan-
cial risks and opportunities in the reporting. In 2024, cli-
mate-related financial disclosures are mainly covered in
the Sustainability statement as part of the Review by the
Board of Directors.
In addition, we report according to the SASB Oil &
Gas Refining and Marketing Standards where applica-
ble, as Neste is categorized under this sector standard
by SASB. Neste follows the development and adoption
of the ISSB Standards. By applying the ESRS, TCFD
reporting principles, and SASB Standards where rele-
vant, Neste expects to be well aligned with the ISSB
Standards.
Our financial reporting complies with the international
IFRS accounting standards, and governance-related
reporting complies with the legislation on listed compa-
nies and the Finnish Corporate Governance Code 2025.
Changes to information disclosed in previous years
(incl. restatements) or calculation principles are commu-
nicated in connection with the relevant indicators. The
calculation principles for several indicators in the Sus-
tainability data package have changed due to imple-
mentation of the ESRS.
The definitions and calculation principles of reported
indicators are presented separately under “Principles for
calculating the key indicators”.
Third-party assurance
An independent third party, KPMG Oy Ab, has assured
the numerical GRI disclosures for economic, social and
environmental indicators, as well as General GRI disclo-
sures 2–7, 2–21, 2–27 and 2–30. Information presented
in the Value creation table and Performance in figures
pages of the report have also been assured.
Scope
This report covers the period from January 1, 2024 to
December 12, 2024. The Annual report is published
annually. The scope of consolidation of sustainabil-
ity reporting is in principle the same as for the financial
statements. Entities that are subsidiaries or controlled
similarly to subsidiaries are fully included in the reporting
scope. The scope of consolidation differs from the finan-
cial statements for joint operations, joint ventures and
associates, including Martinez Renewables: they are
excluded from sustainability reporting as they are outside
of Neste’s operational control and hence treated as part
of Neste’s value chain and excluded from information
related to Neste’s own operations. Individual exceptions
are communicated in connection with the relevant indi-
cators. The reporting of safety information also covers
service providers and contractors.
Our Annual review and Sustainability data package are
available in English as a pdf-file at neste.com/annual-
report. The Review by the Board of Directors, which
includes Sustainability statement, along with separate
sections for Governance and Financial statements, are
available also in Finnish.
40
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Read more Sustainability statement
1)
Includes natural gas and industrial gas suppliers.
2)
See Principles for calculating the key indicators.
3)
Annual average number of employees.
4)
Leaving rate affected by organizational change.
5)
Full-time equivalent (FTE).
6)
Neste Leadership Team and former Executive Committee members as of 31 Dec 2024.
7)
Total Recordable Injury Frequency.
8)
A day without a TRI accident, process safety events, fire or ignition, breach of environmental
permit, or traffic accident.
9)
Palm fatty acid distillate.
10)
The volumes are presented in millions of tons. The share of the volumes are calculated from exact figures, and the rounded figures presented may deviate from the
share of volumes disclosed.
11)
Compared to fossil fuel. Calculation principles can be found on page 59
Indirect Direct
Indirect
Impact
Direct
Economic/Governance
Environment
• Number of suppliers in
» Renewable Products 624
» Oil Products 103
1)
» Indirect procurement 6,143
• Coverage of Neste Supplier
Code of Conduct or equivalent:
» renewable and recycled raw material
volumes 100%
» crude oil and fossil raw material
volumes 81%
» overall indirect contracted spend 91%
• Operations in 16 countries
• Production in 3 countries
• Total equity MEUR 7,417
• R&D expenditure MEUR 86
• Interest-bearing net debt MEUR 4,192
• Material and services MEUR 18,388
• Other expenses MEUR 706
• Indirect procurement spend MEUR 4,090
• Cash-out investments MEUR 1,566
• Renewable raw material inputs 4.3 Mt
• Fossil raw material inputs 11.3 Mt
• Market cap MEUR 9,331 (at the end of 2024)
• Comparable EBITDA MEUR 1,252
• Comparable ROACE 2.5%
• Dividends MEUR 154 from 2024
• Revenue MEUR 20,635
• Share of Clean Revenue 35.8%
2)
• Share of Clean Investments 66.6%
2)
• Economic value retained MEUR 607
• Renewable Diesel sales 3.2 Mt
• Sustainable Aviation Fuel sales 0.4 Mt
• Sales from in-house production, Oil Products 10.1 Mt
• 929 service stations in 4 countries
• Oil Products and Renewable Products in the wholesale
market sold in 41 countries to approx. 257 customers
• Taxes borne and
collected by Neste MEUR 3,371
• New business opportunities
• Renewables help customers reduce
GHG emissions, reduce their reliance
on fossil resources
• M&S B2B Customer satisfaction:
Net Promoter Score (NPS) 48
• Creating new jobs and supporting the
existing ones in the company’s value chains
• Redirecting customer behavior toward more
sustainable solutions
• Supporting the development of customers’
brand value and brand awareness
• Influencing operating environment
and regulation
• 100% of our PFAD
9)
supply chain is
mapped to palm oil mills and 90% to
plantations
• Scope 3 emissions from upstream
value chain 8.6 MtCO
2
e
• Scope 2 emissions from purchased
energy 0.4 MtCO
2
e
• Proportion of waste and
residues of Neste's global
renewable raw material inputs
3.9 Mt, 90% of the total
renewable feedstock
10)
• Water withdrawal 8,761,000 m
3
/a
• Energy saving measures 43.8 GWh
• Energy consumption 12.3 TWh,
of which 20 % renewable energy
• Waste generated 252,500 t of which
25% recovered or recycled
• Water discharge 9,050,000 m
3
/a
• Scope 1, direct emissions 2.3 MtCO
2
e
• Scope 3 emissions from downstream
value chain 47.9 Mt CO
2
e
• 12.1 Mt of GHG emissions reduced with
Neste’s renewable products
11)
• Neste’s renewable and circular solutions
helped replace 4.0 Mt of non-renewable
resources in transport, aviation and
polymers and chemicals sectors
11)
• Mitigating climate change by replacing fossil
raw materials use with more sustainable
alternatives
• Preventing deforestation
• Contributing to circular economy and tackling
the plastic waste challenge by developing
chemical recycling technologies
• 100% of Neste’s new
renewable raw material
suppliers and 100% of
new fossil raw material
suppliers screened using
social criteria
• Highly skilled employees
» Number of employees 5,876
3)
» Hiring rate of permanent
employees 7.4%
» Leaving rate of permanent
employees 17.2%
4)
» 215 summer trainees in 2024
» Recorded average training
hours per FTE 18.5
5)
• Wages and salaries MEUR 472
• Other personnel expenses MEUR 110
including training costs MEUR 4
• 68.7% men and 31.3% women
• 3/9 members of the Board of Directors and
1/9 members of the Neste Leadership Team are women
6)
• Employee safety TRIF 2.8
7)
• Safe Days 278
8)
• Contractor TRIF 1.7
• Donations and sponsorship MEUR 0.9
• Number of Neste employees, who
participated in voluntary work 394
• Supporting social development and
the services societies provide in countries
of operation
• Enhancing competitiveness of employees
in the labor market
• Wellbeing and safety of employees
and suppliers
• Securing human and labor rights
• Improving gender equality
Social
We provide value for society
by developing renewable,
lower-emission solutions for
transportation, aviation,
marine and other industrial
uses, as well as renewable
and circular solutions for
the chemical and plastics
industries.
Our sustainability vision is a
carbon-neutral and nature-
positive value chain by
2040, which can be achieved
in collaboration with our
customers and partners.
Input
Output
Outcome
Value creation
Tax footprint
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Emissions into the air, tons
Direct GHG emissions (scope 1)
2)
2,290,000 2,291,000 2,075,000 X X
Scope 1 GHG emissions from regulated
emission trading schemes (%) 94 90 98 X
Indirect GHG emissions
(scope 2, location-based)
2)
470,000 503,000 427,000 X X
Indirect GHG emissions
(scope 2, market-based)
2)
393,000 463,000 391,000 X X
Other indirect GHG emissions (scope 3)
2)
56,490,000 58,000,000 42,000,000 X X
Purchased goods and services 7,390,000 5,800,000 5,000,000 X X
Fuel- and energy-related activities 100,000 <50,000 <50,000 X X
Upstream transportation and distribution
4)
820,000 2,000,000 900,000 X X
Waste generated in operations 310,000 400,000 400,000 X X
Downstream transportation and distribution
5)
720,000 700,000 700,000 X X
Use of sold products 45,070,000 47,700,000 33,600,000 X X
End-of-life treatment of sold products 900,000 1,100,000 1,100,000 X X
Investments 1,180,000 - - X X
VOC 3,540
6)
2,380 3,160 X
NOX 1,170 1,210 1,150 X
SO
2
1,570 2,470 2,430 X
Particulate matter 67 72 78 X
Performance in figures Climate and the environment
Related priority SDGs
Climate targets and indicators 2024 2023 2022
Reduce Neste’s customers’ greenhouse gas emissions by at least 20 million tons
annually by 2030 with renewable and circular solutions
Reduced GHG emissions by Neste customers with Neste’s products
during the reporting year (compared to fossil fuel), MtCO
2
e
1)
12.1 11 11.1
Reduce GHG emissions in Neste’s own production
by 50% by 2030
Absolute scope 1 & 2 GHG emissions, MtCO
2
e
2)
2.7 2.8 2.5
Reduce the use phase emission intensity
of sold products by 50% by 2040 compared to 2020 levels
Use phase emission intensity, gCO
2
e/MJ
3)
54 58 57
Related reporting
frameworks
2024 2023 2022 ESRS GRI
1)
Calculation principles can be found on page 59. Includes deliveries from the joint operation Martinez Renewables.
2)
Scope of reporting aligned with the European Sustainability Reporting Standards (ESRS). 2024 data is not comparable with 2022 and 2023 disclosures.
3)
Use phase emission intensity is calculated by dividing the emissions from the use of fuel products sold by Neste (part of scope 3) with the total amount of sold energy (gCO
2
e/MJ).
4)
Part of upstream transportation emissions are accounted in other categories.
5)
Part of downstream transportation emissions are accounted in category 4.
6)
Increase due to new calculation method for the integrated refinery in Singapore.
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Energy use
Total energy consumption, MWh
2)
12,272,000 12,600,000 10,900,000 X X
Share of fossil sources in total energy
consumption, % 80 - - X X
Share of consumption from nuclear sources
in total energy consumption, % 0 - - X X
Share of renewable sources in total energy
consumption, % 20 16 18 X X
Total energy consumption per net revenue,
GWh/MEUR
2)
0.6 0.6 0.4 X X
Energy efficiency, energy saving measures, GWh
43.8 27.2 42.6
Water, m
3
/a
Total water withdrawal by source 8,761,000 9,402,000 8,788,000 X
Process water & other water use X
Surface water 7,489,000 8,485,000 7,839,000 X
Third-party water (municipal) 1,271,000 917,000 949,000 X
Total water discharge by destination 9,050,000 8,720,000 7,899,000 X
Surface water 147,000 148,000 141,000 X
Seawater 8,102,000 8,024,000 7,241,000 X
Third-party water (municipal) 800,000 548,000 517,000 X
Effluents to water, tons
Effluents of oil to water 2.3 1.8 1.4
Chemical oxygen demand 190 235
7)
175
7)
Effluents of nitrogen to water 15 18 19
Effluents of phosphorus to water 1.6 1.2
7)
1.4
7)
Related reporting
frameworks
2024 2023 2022 ESRS GRI
Waste generated, tons
Non-hazardous 52,600 71,200 35,000 X
Preparation for reuse 1,500 1,400 150 X
Recycling 23,200 170 3,000 X
Other recovery operations 22,800 63,800 23,000 X
Incineration (with energy recovery) 2,200 2,200 2,000 X
Incineration (without energy recovery) 200 320 550 X
Landfill 2,200 3,300 4,300 X
Other discposal operations 400 40 2,000 X
Hazardous 199,900 230,000 259,000 X
Preparation for reuse 1,600 1,400 160 X
Recycling 11,200 5,800 7,300 X
Other recovery operations 2,800 14,200 4,500 X
Incineration (with energy recovery) 92,200 87,800 70,700 X
Incineration (without energy recovery) 7,300 5,200 3,000 X
Landfill 1,000 4,700 11,500 X
Other disposal operations 84,000 111,000 162,000 X
Environmental safety
Emission limits and overruns:
Deviations from environmental permits
Permit
violations:
15,
of which
3 in OP,
11 in RP, and
1 in M&S
Permit
violations: 13,
of which
6 in OP,
6 in RP, and
1 in M&S
Permit
violations: 3,
of which
2 in OP, and
1 in RP
Number and magnitude of significant releases 6 pc /
1,674 m
3
1pc /
60 m
3
3 pc /
1146 m
3
X
Availability of pollution prevention technology
on average at refineries, terminals and retail sites, %
92 91 98
Related reporting
frameworks
2024 2023 2022 ESRS GRI
2)
Scope of reporting aligned with the European Sustainability Reporting Standards (ESRS). 2024 data is not comparable with 2022 and 2023 disclosures.
7)
Figure revised.
Calculation principles can be found on page 59.
Performance in figures Climate and the environment
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Performance in figures Supply chain and raw materials
Related priority SDGs
Supply chain and raw materials 2024 2023 2022
Business partners who have committed
to Neste’s minimum sustainability requirements
covered in the Supplier Code of Conduct or equivalent
1)
100% of the renewable and
recycled raw material
volumes,
81% of the crude oil
and fossil raw materials
volumes and
91% of overall indirect
contracted spend
100% of the renewable raw
material volumes,
86% of the crude oil
and fossil raw materials
volumes and
91% of overall indirect
contracted spend
99% of the renewable raw
material volumes,
84% of the crude oil
and fossil raw materials
volumes and
73% of overall indirect
contracted spend
Renewable raw material inputs globally, Mt
2)
4.3 4.3 3.6
Share and use of waste and residues
of global renewable raw material inputs
2)
90%
3.9 Mt
92%
4.0 Mt
95%
3.4 Mt
Amount of non-renewable resource use that Neste’s
renewable and circular solutions helped replace in
transport, aviation and polymers and chemicals sectors, Mt
3)
4.0 3.0 3.1
Number of all renewable raw material suppliers 624 614 557
Number of renewable raw material suppliers'
sustainability assessments and their outcome
4)
Total: 222
New approved
suppliers: 104
All approved: 170
Pending: 48
Rejected: 4
Total: 388
New approved
suppliers: 249
All approved: 279
Pending: 102
Rejected: 7
Total: 325
New approved
suppliers: 223
All approved: 236
Pending: 74
Rejected: 15
Number of fossil raw material suppliers
sustainability assessments
36 46 24
Number of sustainability audits conducted 141 154 118
Crude oil and fossil raw material sources by region, Mt 11.3 11.7 12.7
Norway 7.2 8.3 7.1
United Kingdom 1.1 0.8 0.6
USA 0.8 1.1 0.6
Other countries 2.3 1.5 4.5
Renewable
raw material inputs,
million tons
9)
Waste and residues
Vegetable oils
2022 2023 2024
3
4
5
2
1
0
3.6
4.3 4.3
Crude oil and fossil
raw material sources
by region, million tons
Norway
USA
United Kingdom
Other countries
2022 2023 2024
12.7
11.7
11.3
15
10
5
0
1)
After the assessment of the supplier’s or business partner’s own policies and principles, Neste may agree that compliance with their own code of conduct is sufficient for the purpose of complying with the Neste Supplier Code of Conduct.
2)
The volumes are presented in millions of tons. The share of the volumes are calculated from exact figures and consequently the rounded figures presented may deviate from the share of volumes disclosed. Includes Neste’s share of raw material inputs for Martinez Renewables joint operation,
in addition to raw material inputs for refineries operated by Neste.
3)
Calculation principles can be found on page 59.
4)
Figures include existing suppliers, which undergo a sustainability assessment process every 3–5 years. Supplier data includes only main contractual parties, excluding second-tier suppliers.
Calculation principles can be found on page 59.
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Performance in figures Safety
Related priority SDGs
Total recordable injury frequency (TRIF) total
1)
2.2 2.3 2.0
TRIF own employees 2.8 1.7 0.8 X X
TRIF contractors 1.7 3.2 3.7 X
Lost workday injury frequency (LWIF) total 1.4 1.8 1.9
LWIF own employees 1.7 1.1 0.7
LWIF contractors 1.2 2.8 3.6
Process safety event rate (PSER) total 1.3 1.2 1.4
PSER 1 0.5 0.4 0.6
PSER 2 0.9 0.9 0.9
Safe Days
2)
278 278 314
Fatalities 0 0 0 X X
Related reporting frameworks
Safety
2024 2023 2022 ESRS GRI
Total recordable
injury frequency
(TRIF)
Process safety
event rate
(PSER)
PSER 1
PSER 2
2022 2023 2024
2
1
0
1.4
1.2
1.3
TRIF own employees
TRIF contractors
Total
2022 2023 2024
2
3
4
1
0
0.8
1.7
3.7
3.2
2.8
1.7
2.2
2.0
2.3
1)
Total Recordable Incident Frequency, number of cases per million hours worked. Includes both Neste’s and contractors’ personnel, except for Demeter, Walco and SeQuential, and green-field expansion projects, which were internally reported and followed up separately in 2024.
2)
A day without any personal safety accident (TRI), process safety incident (PSE 1 and PSE 2), fires, leaks, environmental permit violations, traffic accidents or marine safety incidents.
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Performance in figures People
Related priority SDGs
Our people 2024 (2023)
Employee engagement Employee engagement score 53
1)
(70).
74% (82%) said their team has everything they need be safe at work,
74% (83%) felt comfortable being themselves at work.
Response rate to employee
engagement survey, % 77 (84)
Hiring rate of permanent employees, % 7.4 (15.3)
Leaving rate of permanent employees, % 17.2
2)
(9.6)
Recorded average training hours per FTE 18.5 (27.2)
Multi-country teams, % 23 (18)
Personnel by segment
as of 31 December 2024, %
Renewable Products 36.5% (25.4%)
Oil Products 24.0% (25.0%)
Marketing & Services 8.0% (8.1%)
Other functions 31.6% (41.5%)
Personnel by country
as of 31 December 2024, %
Finland 61.7% (63.6%)
The USA 15.6% (15.7%)
The Netherlands 9.2% (7.6%)
Singapore 8.1% (7.7%)
Other countries 5.4% (5.5%)
Average number
of personnel
3)
(6,018)
5,876
Personnel by personnel group
as of 31 December 2024, %
White-collar
and senior
management
72.0% (74.8%)
Blue-collar
28.0% (25.2%)
Employment length of employees
as of 31 December 2024, %
40
30
20
10
0
Less than
1 year
15.6
8.0
1–4
years
37.9
40.0
5–9
years
16.8
21.1
10–19
years
18.3
19.1
20–
years
11.4
11.8
2024 2023
Average training hours per employee
as of 31 December 2024, %
Women Men
20
40
10
30
0
All employees Blue-collar White-collar and
senior management
14.6
19.7
27.0
23.0
13.9
17.6
Scope of reporting aligned with the European Sustainability Reporting Standards (ESRS). 2024 data is not fully comparable with 2023 disclosures.
1)
Due to major organizational changes no broader engagement survey was conducted in 2024. Instead, one shorter employee pulse survey with a limited number
of questions was conducted.
2)
Leaving rate affected by organizational change.
Employee breakdown by age
as of 31 December 2024, %
2024 2023
40
50
60
70
30
20
10
0
< 30
years
11.0
10.5
30–50
years
64.5
62.5
> 50
years
25.0
26.6
3)
The number in the Financial statements is reported as an average and does not include temporary hourly workers.
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Information on employees and governance bodies by gender ratio as of 31 December 2024, %
Employee distribution and turnover as of 31 December 2024, %
Women Men
2024 2023 2024 2023
All employees 31.3 32.6 68.7 67.4
Blue-collar 5.7 5.5 94.3 94.5
White-collar and senior management 41.2 41.7 58.8 58.3
Managers 29.3 33.3 70.7 66.7
Senior managers 35.7 28.7 64.3 71.3
Neste Leadership Team
1)
11.1 33.3 88.9 66.7
Board of Directors 33.3 25.0 66.7 75.0
Permanent 29.4 32.1 59.1 66.7
Temporary 0.6 0.5 1.0 0.7
Non-guaranteed hours employees 1.2 - 8.6 -
Full-time 29.6 31.4 67.0 66.6
Part-time 1.7 1.3 1.7 0.8
Total Finland USA Singapore The Netherlands Other countries
Women Men Women Men Women Men Women Men Women Men Women Men
All employees 31.3 68.7 34.1 65.9 22.8 77.2 30.6 69.4 17.0 83.0 49.2 50.8
under 30 3.7 6.8 4.5 6.9 2.0 7.2 2.7 6.0 2.0 7.6 5.3 3.6
30–50 20.3 44.1 21.5 42.2 15.1 44.8 23.7 52.3 11.6 51.7 32.3 38.9
over 50 7.2 17.8 8.1 16.8 5.8 25.2 4.2 11.1 3.5 23.7 11.6 8.3
Hiring rate of permanent employees, all 5.1 8.4 2.1 2.5 9.1 18.8 5.9 10.3 12.8 20.4 17.9 9.9
Proportion of permanent hires 21.8 78.3 30.8 69.2 12.5 87.5 20.0 80.0 11.3 88.7 63.4 36.6
under 30 20.8 45.1 22.2 43.5 15.1 44.8 24.0 52.9 11.4 52.0 32.7 39.7
30–50 3.2 5.8 3.6 5.3 2.0 7.2 2.7 6.1 2.0 7.7 4.7 3.4
over 50 7.3 17.9 8.4 17.1 5.8 25.2 3.8 10.5 3.5 23.4 11.5 8.1
Leaving rate of permanent employees, all 19.6 16.1 21.3 14.7 17.7 27.1 8.8 10.3 14.0 6.6 22.8 25.7
Proportion of permanent leavers 35.6 64.5 42.8 57.2 16.1 83.9 27.3 72.7 30.0 70.0 45.8 54.2
under 30 3.2 5.8 3.6 5.3 2.0 7.2 2.7 6.1 2.0 7.7 4.7 3.4
30–50 20.8 45.1 22.2 43.5 15.1 44.8 24.0 52.9 11.4 52.0 32.7 39.7
over 50 7.3 17.9 8.4 17.1 5.8 25.2 3.8 10.5 3.5 23.4 11.5 8.1
Permanent employees 29.4 59.1 32.8 63.3 16.7 26.7 30.2 68.7 16.8 82.6 47.9 50.2
Temporary employees 0.7 1.0 0.8 1.5 0.0 0.0 0.4 0.7 0.2 0.4 1.3 0.0
Non-guaranteed hours employees 1.2 8.6 0.4 1.1 6.1 50.6 0.0 0.0 0.0 0.0 0.0 0.7
Full-time employees 29.6 67.0 31.8 63.6 22.8 77.2 30.6 69.4 13.9 80.2 48.2 50.2
Part-time employees 1.7 1.7 2.2 2.4 0.0 0.0 0.0 0.0 3.1 2.7 1.0 0.7
Performance in figures People
1)
Neste Leadership Team and former Executive Committee members as of 31 Dec 2024 Scope of reporting aligned with the European Sustainability Reporting Standards (ESRS). 2024 data is not fully comparable with 2023 disclosures.
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Performance in figures Human rights and compliance
Related priority SDGs
Human rights 2024 (2023)
Human Rights Due
Diligence (HRDD)
1)
carried
out for key business areas/
functions.
Four major assessments/initiatives undertaken in 2024:
1) Corporate-wide assessment to review Neste’s salient issues and mitigation actions.
2) Human rights impact & risk assessment completed for the potential construction and operation
of a new unit at Porvoo Refinery.
3) Human rights due diligence assessments completed for Neste-owned terminals in Finland,
Rotterdam and Baltics.
4) Living wage gap assessments completed for Neste’s own employees globally.
HRDD maturity level for
Neste own operations using
the Consumer Goods
Forum HRC assessment
framework and KPIs.
2)
33% of the "Leadership" maturity level achieved in 2024
Employee training on
modern slavery and human
rights policies and
procedures
478 (1,667) of Neste employees, including
67% (86%) of new employees hired, received training on forced labor and vulnerability groups,
as well as Neste's human rights policies and processes, through the company's Code of Conduct
e-learning during 2024.
Governance and compliance
Number of suspected
misconducts reported in
person or via the
whistleblowing system to
the Investigations Group
Number of suspected misconducts reported in person or via the available reporting channels including
EthicsOnline to the Investigation Group was in total 57 (numerous reports concerning same issue) of which
employment matters 21 (10) reports, health & safety 7 (0), conflict of interest 7 (3), inappropriate behavior 5
(2), supplier/business partner misconduct/unethical behavior 5 (4), discrimination and harassment 3 (6),
misuse of sensitive information 3 (0), other 2 (0), fraud 1 (3), unethical conduct towards clients/suppliers/
business contacts 1 (1), theft, asset misuse, embezzlement 1 (0), bribery, corruption, facilitation payment 1
(0). Misconduct by Neste employees confirmed in 9 (5) cases, related to conflict of interest, attempted fraud,
misuse of sensitive information, breach of internal rules, leadership behaviour and/or inappropriate behavior.
All leading to further actions and/or process improvements. 1 investigation is pending. The confirmed cases
of misconduct were not related to corruption, bribery or facilitation payments. Renewable raw material Supply
chain related external grievances are reported separately by the Sustainability team on the Neste website.
Code of Conduct
e-learnings completed,
amount and rate
94%, including new joiners, have completed the Neste Code of Conduct e-learning course.
3)
1)
HRDD refers to any activities carried out to identify, assess, address, prevent or mitigate forced labor risks, such as developing internal processes, carrying out impact assessments, risk mapping, gap assessments, etc
2)
The Consumer Goods Forum HRDD maturity assessments for Neste’s own operations have three achievement levels: Launched, Established, and Leadership.
3)
Completions between 2021-2024 included. Mahoney and Walco excluded.
Complaints received through site-level We Care Channels
for third-party workers at Neste refineries as of 31 December 2024, %
Safety and security 21%
Behavior 15%
Logistics and facilities 15%
Food 10%
Wages and benefits 10%
Positive Feedback 6%
WASH (Water, Sanitation, and Hygiene) 6%
Health and wellbeing 5%
Employment contracts 5%
Harassment 3%
Terms of employment 3%
In 2024, 78 complaints were received via site-level We Care Channels for third-party workers at Neste refineries in Porvoo,
Rotterdam and Singapore. Neste takes all complaints seriously and investigates all cases. All channels can be used anonymously
and complaints are handled confidentially and without fear of retaliation.
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GRI Content Index
GRI 1: Foundation 2021
GRI 11: Oil and Gas Sector 2021
GRI 2: General Disclosures 2021
1. The organization and its reporting practices
2-1 Organizational details 243 HQ in Espoo, Finland. Countries of operation: Finland, Australia, Belgium, China, Estonia, Germany, India, Ireland, Latvia,
Lithuania, the Netherlands, Singapore, Spain, Sweden, Switzerland, the U.S. (R)
2-2 Entities included in the organization’s sustainability reporting 38–39
2-3 Reporting period, frequency and contact point 38–39
Safety and
Environment contacts
2-4 Restatements of information 38–39
2-5 External assurance 61–62
2. Activities and workers
2-6 Activities, value chain and other business relationships 28–31, 98, 103–104
2-7 Employees 104, 135–136
3. Governance
2-9 Governance structure and composition 64–72, 101–102
2-10 Nomination and selection of the highest governance body 64–67, 101–102
2-11 Chair of the highest governance body 68–69
2-12 Role of the highest governance body in overseeing the
management of impacts
101–102
2-13 Delegation of responsibility for managing impacts 101–102
2-14 Role of the highest governance body in sustainability
reporting
65, 72, 101–102
2-15 Conflicts of interest 67
2-16 Communication of critical concerns 101–102
2-17 Collective knowledge of the highest governance body 101–102
2-18 Evaluation of the performance of the highest governance
body
67
2-19 Remuneration policies 84–88, 102
2-20 Process to determine remuneration 65, 85–86
2-21 Annual total compensation ratio 89 Neste reports the average total compensation for employees and the total compensation of the CEO. (O)
Neste Oyj has reported the information cited in this GRI content index for the period 1 January–31 December 2024 with reference to the GRI Standards.
GRI Standards Disclosure
Location in the report
or our webpage Reporting (R) / Omission (O) Oil&Gas Sector Standard REF #
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4. Strategy, policies and practices
2-22 Statement on sustainable development strategy 6–7
2-23 Policy commitments 109, 118–119, 124–125, 128,
130, 132–133, 137–138,
141–142
Neste Policies and Principles
2-24 Embedding policy commitments 109, 118–119, 124–125, 128,
130, 132–133, 137–138,
141–142
Neste Policies and Principles
2-25 Processes to remediate negative impacts 26, 133–143, 139–140,
141–142
2-26 Mechanisms for seeking advice and raising concerns 74–75, 133–134, 139–140,
141–142
2-27 Compliance with laws and regulations 36
2-28 Membership associations 105–106
Memberships and
engagements
5. Stakeholder engagement
2-29 Approach to stakeholder engagement 105–106
2-30 Collective bargaining agreements 3,608 persons, 65%. In addition to complying with local legal requirements, Neste is committed to respecting the
internationally recognized human and labor rights and ensuring fair terms of employment for all employees, as set out in
the Neste Code of Conduct and Human Rights Principle. (R)
GRI 3: Material Topics 2021
3-1 Process to determine material topics 39, 108–109
3-2 List of material topics 39, 107
3-3 Management of material topics 116–121, 124–125, 127–129,
130–131, 132–134, 137–140,
142–143
11.1.1, 11.2.1, 11.3.1,
11.4.1, 11.5.1, 11.6.1,
11.7.1, 11.8.1, 11.9.1,
11.10.1, 11.11.1, 11.12.1,
11.13.1, 11.14.1, 11.15.1,
11.17.1, 11.18.1, 11.19.1,
11.20.1, 11.21.1, 11.22.1
GRI 200: Economic
GRI 201: Economic Performance 2016
201-1 Direct economic value generated and distributed 40
Economic Responsibility
11.14.2 & 11.21.2
201-2 Financial implications and other risks and opportunities due
to climate change
107–108, 117–118, 161 11.2.2
201-4 Financial assistance received from government 178 11.21.3
GRI Standards Disclosure
Location in the report
or our webpage Reporting (R) / Omission (O) Oil&Gas Sector Standard REF #
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GRI 203: Indirect Economic Impacts 2016
203-2 Significant indirect economic impacts 40 11.4.5 & 11.14.5
GRI 205: Anti-corruption 2016
205-1 Operations assessed for risks related to corruption 141–142 Neste regularly assesses its operations' risks including ia. risks of corruption and bribery. Numeric data not applicable.
(R/O)
11.20.2
205-2 Communication and training about anti-corruption policies
and procedures
32, 141–142 Neste Board Audit Committee receives regular updates on Neste compliance program and compliance activities, including
such related to anti-corruption. All members of Neste Board of Directors have completed the Code of Conduct (CoC)
e-learning. Neste's Anti-corruption Principle and related guidance is available in Neste's global intranet and further
communicated and trained via anti-corruption e-learning issued regularly, latest in Q4 2024 to approximately 3,700
employees, and via regular newsletters. Leadership members and targeted employees are required to complete an Annual
Compliance Acknowledgement confirming their compliance with i.a. the CoC and Anti-corruption Principle. Neste regularly
raises awareness and trains on its Code of Conduct, including a Code of Conduct e-learning mandatory for all employees, of
which the latest version was issued in 2021. The CoC e-learning is part of global induction training and therefore, the
completion fluctuates. We also require our suppliers and other business partners to comply with applicable laws and expect
them to follow equivalent ethical business standards as stated in the CoC (including zero tolerance to corruption), as further
described in our Supplier Code of Conduct. We are continuously developing our anti-corruption training processes and aspire
to extend the reporting with the remaining indicator requirements related to training when applicable. (R/O)
11.20.3
205-3 Confirmed incidents of corruption and actions taken 47 No confirmed incidents during the reporting period. (R) 11.20.4
GRI 206: Anti-competitive Behaviour 2016
206-1 Legal actions for anticompetitive behavior, anti-trust, and
monopoly practices
No cases during the reporting period. (R) 11.19.2
GRI 207: Tax 2019
207-1 Approach to tax Neste's tax footprint 11.21.4
207-2 Tax governance, control, and risk management Neste’s tax footprint 11.21.5
207-3 Stakeholder engagement and management of concerns
related to tax
Neste’s tax footprint 11.21.6
207-4 Country-by-country reporting Neste’s tax footprint Neste discloses tax information for countries representing 90% of the external revenue of the group. (O) 11.21.7
GRI 300: Environmental
GRI 302: Energy 2016
302-1 Energy consumption within the organization 42, 121–122 Neste's reporting on energy consumption is aligned with the European Sustainability Reporting Standards and does not
include disaggregated amounts of electricity, heating, cooling and steam consumed or sold. (R/O)
302-3 Energy intensity 121, 123 11.1.4
302-4 Reduction of energy consumption 21–22, 42, 59 Energy savings consists of different initiatives in our production covering steam. (R)
GRI 303: Water and effluents 2018
303-1 Interactions with water as a shared resource 23–24 11.6.2
303-3 Water withdrawal 42, 59 Neste will be assessing its relevant water reporting categories for potential later use. (O) 11.6.4
303-4 Water discharge 42, 59 11.6.5
303-5 Water consumption 42, 59 11.6.6
GRI Standards Disclosure
Location in the report
or our webpage Reporting (R) / Omission (O) Oil&Gas Sector Standard REF #
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GRI 304: Biodiversity 2016
304-1 Operational sites owned, leased, managed in, or adjacent
to, protected areas and areas of high biodiversity value
outside protected areas
127 11.4.2
304-2 Significant impacts of activities, products, and services on
biodiversity
24, 127–128 11.4.3
304-3 Habitats protected or restored 24, 127 11.4.4
GRI 305: Emissions 2016
305-1 Direct (Scope 1) GHG emissions 41, 122–123 11.1.5
305-2 Energy indirect (Scope 2) GHG emissions 41, 122–123 11.1.6
305-3 Other indirect (Scope 3) GHG emissions 41, 122–123 11.1.7
305-4 GHG emissions intensity 41, 122–123 11.1.8
305-5 Reduction of GHG emissions 41, 119–121 11.2.3
305-7 Nitrogen oxides (NOX), sulfur oxides (SOX), and other
significant air emissions
41, 59 Neste considers the reported emissions as significant. (R/O) 11.3.2
GRI 306: Effluents and Waste 2016
306-3 Significant spills 42 No significant environmental impacts identified. (R) 11.8.2
GRI 306: Waste 2020
306-3 Waste generated 42, 59 11.5.4
306-4 Waste diverted from disposal 42, 59 11.5.5
306-5 Waste directed to disposal 42, 59 11.5.6
GRI 308: Supplier Environmental Assessment 2016
308-1 New suppliers that were screened using environmental
criteria
28–30, 142–143 100% of Neste’s new renewable raw material suppliers and 100% of new fossil raw material suppliers screened using
environmental criteria. Screening process for indirect procurement suppliers is being standardized and hence, data is
currently not available. (R/O)
GRI 400: Social
GRI 401: Employment 2016
401-1 New employee hires and employee turnover 46, 135–136 11.10.2
401-3 Parental leave All Neste employees are entitled to parental leave at a minimum according to the local legislation. All together 281
employees took parental leave in 2024, of which 192 were women and 89 were men. 243 employees returned to work
from parental leave during 2024, of which 109 were women and 134 were men. Neste does not disclose return to work
and retention rates. (R/O)
11.10.4 & 11.11.3
GRI 402: Labor/Management Relations 2016
402-1 Minimum notice periods regarding operational changes Neste follows the local laws and when applicable, bargaining agreements regarding operational changes. (R) 11.7.2 & 11.10.5
GRI Standards Disclosure
Location in the report
or our webpage Reporting (R) / Omission (O) Oil&Gas Sector Standard REF #
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GRI 403: Occupational Health and Safety 2018
403-1 Occupational health and safety management system 35–36, 132–135 11.9.2
403-2 Hazard identification, risk assessment, and incident
investigation
35–36. 133–134 11.9.3
403-3 Occupational health services 34 11.9.4
403-4 Worker participation, consultation, and communication on
occupational health and safety
36, 133–134 11.9.5
403-5 Worker training on occupational health and safety 36, 134 11.9.6
403-6 Promotion of worker health 34, 35–36 11.9.7
403-7 Prevention and mitigation of occupational health and safety
impacts directly linked by business relationships
36, 134 11.9.8
403-8 Workers covered by an occupational health and safety
management system
134, 135 11.9.9
403-9 Work-related injuries 35–36, 44, 135–136 In 2024 there were 49 injuries, of which 20 happened to contractors. In 2024 we did not have any injury that would have
resulted permanent effect on health. All together we had 6 cases which resulted in long absences from work. Main injury
types were cuts, puncture or scrapes, slips, strips and falls, or caught in, under or between. Total amount of working hours
was cirka 10,290,000 hours for employees and 11,614,000 hours for contractors.
11.9.10
403-10 Work-related ill health 135–136 Neste records all work-related injuries. Occupational diseases are recorded separately. Neste has defined and implements
practices in the Operations Excellence Management System (OEMS) to minimize hazards and to mitigate risks relating to
any work-related ill health or injuries. (R/O)
11.9.11
GRI 404: Training and Education 2016
404-1 Average hours of training per year per employee 45 11.10.6 & 11.11.7
404-2 Programs for upgrading employee skills and transition
assistance programs
33–34 11.7.3 & 11.10.7
GRI 405: Diversity and Equal Opportunity 2016
405-1 Diversity of governance bodies and employees 46, 67, 102 11.11.4
405-2 Ratio of basic salary and remuneration of women to men Women's mean basic salary in relation to men's by pay grade and employee category in Finland: blue-collars 88%-106%
and whitecollars 91%-107%. Finland is reported as it is significant with over 61% weight of employees in total personnel.
(R/O)
11.11.5
GRI 406: Non-discrimination 2016
406-1 Incidents of discrimination and corrective actions taken 47, 141–142 11.11.6
GRI 407: Freedom of Association and Collective Bargaining 2016
407-1 Operations and suppliers in which the right to freedom of
association and collective bargaining may be at risk
26,
Neste Human Rights
Principle,
Neste Supplier Code of
Conduct,
Modern Slavery Statement
The Neste Human Rights Principle outlines our commitment to respect the rights to freedom of association and collective
bargaining in Neste’s global operations, and our Supplier Code of Conduct includes minimum requirements for our
suppliers and business partners to recognize and respect these rights. These policies are implemented through our
ongoing due diligence processes. We use a bespoke, industry leading, country risk assessment methodology from Verisk
Maplecroft to identify countries or geographic areas with the highest risks to freedom of association and collective
bargaining in our global operations and supply chains. Specific geographic areas and operation types considered as high
risk not disclosed publicly. (R)
11.13.2
GRI Standards Disclosure
Location in the report
or our webpage Reporting (R) / Omission (O) Oil&Gas Sector Standard REF #
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GRI 408: Child Labor 2016
408-1 Operations and suppliers at significant risk of incidents of
child labor
26,
Neste Human Rights
Principle,
Neste Supplier Code of
Conduct,
Modern Slavery Statement
The Neste Human Rights Principle outlines our commitment to respect children’s rights, and our Supplier Code of Conduct
includes minimum requirements regarding child labor. These policies are implemented through our ongoing due diligence
processes. We use a bespoke, industry leading, country risk assessment methodology from Verisk Maplecroft to identify
countries or geographic areas with the highest risks of child labor. Further details regarding management approach, high
risk operations and supply chains, and measures taken by Neste to assess and address child labor risks available in
Neste’s annual Modern Slavery Statement. (R)
GRI 409: Forced or Compulsory Labor 2016
409-1 Operations and suppliers at significant risk of incidents of
forced or compulsory labor
26, 137,
Neste Human Rights
Principle,
Neste Supplier Code of
Conduct,
Modern Slavery Statement
11.12.2
GRI 410: Security Practices 2016
410-1 Security personnel trained in human rights policies or
procedures
100% of Neste group security personnel have received formal training on Neste human rights policies through Neste's
Code of Conduct e-learning. (R)
11.18.2
GRI 411: Rights of Indigenous Peoples 2016
411-1 Incidents of violations involving rights of indigenous peoples Neste respects the rights of Indigenous Peoples set out in the United Nations Declaration on the Rights of Indigenous
Peoples (UNDRIP), and carries out due diligence to avoid infringing on human rights. In 2024, there were 0 incidents of
violations involving the rights of Indigenous peoples reported via Neste’s available reporting channels, including Ethics
Online. (R)
11.17.2
GRI 204: Procurement Practices 2016
413-1 Operations with local community engagement, impact
assessments, and development programs
105,
Neste Human Rights
Principle
For 100% of our operations, local communities can formally raise grievances to Neste using Ethics Online, or alternatively
contact us using local channels such as refinery websites and phone numbers. We engage regularly with local
stakeholders, including, for example, a biennial stakeholder study to engage with communities surrounding our Porvoo
refinery covering environmental, social, and safety impacts. All Neste refineries are certified as having an ISO 14001
environmental management system in place, and have undergone various environmental impact and permitting
assessments, with ongoing monitoring. (R/O)
11.15.2
413-2 Operations with significant actual and potential negative
impacts on local communities
105,
Neste Human Rights
Principle
All Neste refineries (Porvoo, Rotterdam and Singapore) are situated on industrial sites and the closest residential
communities are 5-10 kms away. Potential risks to the local communities include air and water emissions, as well as noise
and light pollution from the refineries and site traffic. All of our refineries are required to with comply with strict
environmental permits and other legal requirements and have put preventive and mitigation measures in place to prevent
refinery operations from causing harm to people or the environment. (R)
11.15.3
GRI 414: Supplier Social Assessment 2016
414-1 New suppliers that were screened using social criteria 28–30, 142–143 100% of Neste’s new renewable raw material suppliers and 100% of new fossil raw material suppliers screened using
social criteria. Screening process for indirect procurement suppliers is being standardized and hence, data is currently not
available. (R/O)
11.10.8 & 11.12.3
414-2 Negative social impacts in the supply chain and actions
taken
29, 43, 139,
Grievances and concerns
webpage
387 actions initiated to advance supply chain workers’ human and labor rights in Neste raw material supplier sustainability
audits. Number of suppliers with significant negative social impacts and percentage of suppliers with corrective actions and
with which relationships were terminated are not disclosed. (R/O)
11.10.9
GRI Standards Disclosure
Location in the report
or our webpage Reporting (R) / Omission (O) Oil&Gas Sector Standard REF #
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GRI 415: Public Policy 2016
415-1 Political contributions Neste does not make political contributions. (R) 11.22.2
GRI 416: Customer Health and Safety 2016
416-1 Assessment of the health and safety impacts of product and
service categories
124–125 11.3.3
416-2 Incidents of non-compliance concerning the health and
safety impacts of products and services
125–126
GRI 417: Marketing and Labeling 2016
417-3 Incidents of non-compliance concerning marketing
communications
In total two cases in Lithunia in 2024, of which one case was closed in 2024 and resulted in no fines. The remaining case
in Lithuania has been responded to and is pending at the end of 2024. One case in Denmark from 2023, which is pending.
GRI Standards Disclosure
Location in the report
or our webpage Reporting (R) / Omission (O) Oil&Gas Sector Standard REF #
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TCFD Recommendations Disclosure Location in the report
Governance
Disclose the organization’s
governance around climate-
related risks and opportunities.
a) Describe the board’s oversight of climate related risks and opportunities. 67, 72, 101–102
b) Describe management’s role in assessing and managing climate related risks and opportunities. 72, 74, 102
Strategy
Disclose the actual and potential
impacts of climate-related risks
and opportunities on the
organization’s businesses,
strategy, and financial planning
where such information is
material.
a) Describe the climate-related risks and opportunities the organization has identified over the short, medium, and long term. 82–83, 107, 116–118
b) Describe the impact of climate-related risks and opportunities on the organization’s businesses, strategy, and financial planning. 103, 107-108, 118, 161
c) Describe the resilience of the organization’s strategy, taking into consideration different climate related scenarios, including a 2°C or lower scenario. 118
Risk Management
Disclose how the organization
identifies, assesses, and manages
climate-related risks.
a) Describe the organization’s processes for identifying and assessing climate-related risks. 108–109, 117
b) Describe the organization’s processes for managing climate-related risks. 79–80
c) Describe how processes for identifying, assessing, and managing climate-related risks are integrated into the organization’s overall risk management. 102, 109
Metrics and Targets
Disclose the metrics and targets
used to assess and manage
relevant climate-related risks and
opportunities where such
information is material.
a) Disclose the metrics used by the organization to assess climate-related risks and opportunities in line with its strategy and risk management process. 41–42, 119
b) Disclose Scope 1, Scope 2, and, if appropriate, Scope 3 greenhouse gas (GHG) emissions, and the related risks. 41, 122
c) Describe the targets used by the organization to manage climate related risks and opportunities and performance against targets. 19, 41, 119
TCFD Recommendations Disclosure
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SASB Content Index
GHG Emissions
EM-RM-110a.1 Gross global Scope 1 emissions, percentage covered under emissions-limiting regulations Metric tons (t) CO
2
-e,
Percentage (%)
122–123
EM-RM-110a.2 Discussion of long-term and short-term strategy or plan to manage Scope 1 emissions,
emissions reduction targets, and an analysis of performance against those targets
n/a 21–22, 119–121
Air Quality
EM-RM-120a.1 Air emissions of the following pollutants: (1) NOx (excluding N
2
O), (2) SOx, (3) particulate
matter (PM10), (4) H2S, and (5) volatile organic compounds (VOCs)
Metric tons (t) 41, 59
EM-RM-120a.2 Number of refineries in or near areas of dense population Number All 3 refineries operated by Neste located in or near (within 49km) an urbanized area. (R)
Water management
EM-RM-140a.1 (1) Total fresh water withdrawn, (2) percentage recycled, (3) percentage in regions with
High or Extremely High Baseline Water Stress
Thousand cubic meters
(m³), Percentage (%)
42, 59 Neste’s water withdrawal from areas with water stress is not significant and seen as not
material. Percentage for recycled water is not calculated separately, as most of the water
withdrawn for cooling is discharged back to the source in similar condition as when
withdrawn. (R)
EM-RM-140a.2 Number of incidents of non-compliance associated with water quality permits, standards,
and regulations
Number No incidents of non-compliance associated with water quality permits, standards, and
regulations. (R)
Hazardous Materials Management
EM-RM-150a.1 (1) Amount of hazardous waste generated, (2) percentage recycled Metric tons (t),
Percentage (%)
42, 59 199,900 metric tons (t), recycled 8% (R)
EM-RM-150a.2 (1) Number of underground storage tanks (USTs), (2) number of UST releases requiring
cleanup, and (3) percentage in states with UST financial assurance funds
Number, Percentage (%) 25 underground storage tanks for petroleum products. No UST releases. Reporting based
on Neste's environmental permits. (R)
Workforce Health and safety
EM-RM-320a.1 (1) Total recordable incident rate (TRIR), (2) fatality rate, and (3) near miss frequency rate
(NMFR) for (a) direct employees and (b) contract employees
Rate 44 1) and (2) Neste reports the most relevant OHS performance figures in its own operations
(TRIF, LWIF, PSER, Safe Days, Fatalities). (3) NMFR 88.6. (R)
EM-RM-320a.2 Discussion of management systems used to integrate a culture of safety n/a 35–36, 132–134
Product Specifications & Clean Fuel Blends
EM-RM-410a.1 Percentage of Renewable Volume Obligation (RVO) met through: (1) production of
renewable fuels, (2) purchase of separated renewable identification numbers (RIN)
Percentage (%) Data not disclosed. (O)
EM-RM-410a.2 Total addressable market and share of market for advanced biofuels and associated
infrastructure
Reporting currency,
Percentage (%)
11–12
Pricing Integrity & Transparency
Neste disclosure of SASB Sustainability Accounting Standards for Oil and Gas Refining and Marketing
Code Accounting metric Unit of measure
Location in the
report or our
webpage Additional SASB reporting information Reporting (R) / Omission (O)
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EM-RM-520a.1 Total amount of monetary losses as a result of legal proceedings associated with price
fixing or price manipulation
Reporting currency,
Percentage (%)
No legal proceedings. (R)
Management of the Legal & Regulatory Environment
EM-RM-530a.1 Discussion of corporate positions related to government regulations and/or policy
proposals that address environmental and social factors affecting the industry
n/a 81, 83, 107–108,
NBNHR Joint
Statement
Critical Incident Risk Management
EM-RM-540a.1 Process Safety Event (PSE) rates for Loss of Primary Containment (LOPC) of greater
consequence (Tier 1) and lesser consequence (Tier 2)
Rate 44, 59–60 Neste reports PSER1 and PSER2 rates as described in Principles for calculating the key
indicators. (R)
EM-RM-540a.2 Challenges to Safety Systems indicator rate (Tier 3) Rate Rate 52.6. Tier 3 Challenges to Safety Systems indicator are followed in Neste’s PSE3. (R)
EM-RM-540a.3 Discussion of measurement of Operating Discipline and Management System
Performance through Tier 4 Indicators
n/a 36, 133–134 Process safety management system weaknesses that may cause PSE1/2 events in the
future. They are followed as part of PSE4 indicator at Neste. (R)
Code Accounting metric Unit of measure
Location in the
report or our
webpage Additional SASB reporting information
EM-RM-000.A Refining throughput of crude oil and other feedstocks Barrels of oil equivalent
(BOE)
Oil Products 76 MMBOE (R)
EM-RM-000.B Refining operating capacity Million barrels per
calendar day (MBPD)
14 Oil Products 0.21 MBPD (R)
Code Accounting metric Unit of measure
Location in the
report or our
webpage Additional SASB reporting information Reporting (R) / Omission (O)
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PART C: Management of Salient Human Rights Issues
C1 Specific Policies
C1 Neste Human Rights Principle, Code of Conduct, Supplier Code of Conduct,
Sustainability Policy, Sustainability Principle, Responsible Sourcing Principle,
People Policy, Equality and Non-Discrimination Principle, Misconduct
Investigation Standard, Neste Life Saving Rules, Operations Excellence Policy,
Operational Safety Principle, Occupational Health Principle, Reproductive Health
Standard, Privacy Principle, Cyber Security Principle
p. 7–8
C1.1 p. 26–27, 30, 32, 36, 47, 52, 53, 134, 138 p. 19–20
C2 Stakeholder Engagement
C2 p. 25, 53, 105–106, 133, 138, Neste Human Rights Principle (p. 11–12) p. 21–23
C2.1 p. 25, 53, 105–106, 133, 138, Neste Human Rights Principle (p. 11–12) p. 21–23
C2.2 p. 25, 53, 105–106, 133, 138 p. 21–23
C2.3 p. 25, 53, 105–106, 133, 138 p. 10–11, 21–23
C3 Assessing Impacts
C3 p. 25–27, 28–30, 35–36, 43–47, 53–54, 108–109, 132–140 p. 8, 10–17, 23
C3.1 p. 26–27, 29–30, 36, 43–47, 52–54 p. 15–17
C3.2 p. 26–27, 29, 44, 47, 52–54, Renewable Raw Material Grievance Log p. 11, 15
C4 Integrating Findings and Taking Action
C4 p. 25–27, 28–30, 35–36, 132–140 p. 10–17
C4.1 Cross-functional collaboration and committees e.g. 25–27, 101–102, 139,
Human Rights Principle
p. 7–8, 11
C4.2 Neste Human Rights Principle p. 11, 18
C4.3 p. 25–30, 35–36, 43–47, 49, 52–54 p. 7–23
C5 Tracking Performance
C5 p. 25–30, 35–36, 43–47, 49, 52–54, 132–140 p. 15–17, 23
C5.1 p. 25–30, 35–36, 43–47, 49, 52–54 p. 15–17, 23
C6 Remediation
C6 p. 25–26, 133–134, 138–140, 143, Neste Human Rights Principle,
Grievances and concerns webpage
p. 9, 18, 23
C6.1 p. 25–26, 133–134, 138–140, 143, Neste Human Rights Principle p. 9, 18, 23
C6.2 p. 25–26, 47, 133–134, 138–140, 143, Renewable Raw Material Grievance Log p. 23
C6.3 p. 25–26, 47, 133–134, 138–140, 143, Renewable Raw Material Grievance Log,
Neste Human Rights Principle
p. 9, 18, 23
C6.4 p. 47, Renewable Raw Material Grievance Log N/A
C6.5 p. 47, Renewable Raw Material Grievance Log p. 17
1)
Page numbers provided for 2023 Modern Slavery Statement, as the 2024 statement will only be published in Q2, 2025.
PART A: Governance of Respect for Human Rights
A1 Policy Commitment
A1 p. 25–26, 133; Neste Human Rights Principle. p. 7–8
A1.1 p. 26, 133; Neste Human Rights Principle. Neste's Human Rights Principle was
updated in 2022, incorporating extensive consultation with topic experts, NGOs,
government representatives, and trade union experts. In 2024, the Principle underwent
minor updates to reflect changes in Neste's governance structure for human rights.
p. 7–8
A1.2 All of Neste's rights-holders as defined on p. 14 of the Neste Human Rights Principle
A1.3 p. 26–27, 30, 47, 53, Neste Human Rights Principle is published on our company
website and internally accessible on the Neste intranet. It is communicated to employees
via e-learnings, and to business partners via Neste's Supplier Code of Conduct
Guidance and capacity building workshops.
p. 7, 19–20
A2 Embedding Respect for Human Rights
A2 p. 17–18, 25–27, NBNHR Joint Statement, Neste Human Rights Principle p. 3, 7–8, 21–22
A2.1 Described under section 6.1 of the Neste Human Rights Principle p. 7–8
A2.2 p. 72, 101–102, Neste Human Rights Principle (p. 9–11) p. 24
A2.3 p. 27, 47, 75, 139, Neste Code of Conduct (p. 7), Neste Human Rights Principle (p.
11–12)
p. 7–8, 19–20
A2.4 p. 27, 30, 105, 143, Supplier Code of Conduct Guidance (p. 13–21) p. 7, 12–18,
19–20
A2.5 p. 25–27, 29–30, 36, 47 p. 7–9, 10–11,
15, 19–21, 23
PART B: Defining the Focus of Reporting
B1 Statement of salient issues p. 26; Neste Human Rights Principle (p. 2-9) p. 8
B2 Determination of salient issues p. 26 p. 8
B3 Geographical focus p. 137 p. 10–11
B4 Additional severe impacts N/A N/A
Section of the
Framework Location in annual report or website
Page location in 2023
Modern Slavery Statement
1)
UN Guiding Principles Reporting Framework Index
The UN Guiding Principles Reporting Framework provides comprehensive guidance for companies to report
on human rights issues in line with their responsibility to respect human rights. For full details on the framework,
please visit www.ungpreporting.org
UN Guiding Principles Reporting Framework Index
Section of the
Framework Location in annual report or website
Page location in 2023
Modern Slavery Statement
1)
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Principles for calculating the key indicators
Environment
Energy
Energy consumption and production data is collected
either from Neste’s own measurement devices or via
energy invoices. Some minor consumption sources
have been estimated. Neste follows the Energy Effi-
ciency Agreement for Industries which is an agreement
between the Government and industrial associations on
the efficient use of energy, providing also guiding meth-
odology for energy efficiency calculations.
Greenhouse gas emissions (GHG)
Neste follows GHG Protocol Corporate Standard and its
supplement Corporate Value Chain (Scope 3) Account-
ing and Reporting Standard. The reporting includes
emissions of the GHGs covered by the GHG Protocol.
Emissions have been converted into carbon dioxide
equivalents.
Carbon handprint
Carbon handprint describes the difference of carbon
footprint of a product or service and a baseline prod-
uct or service. Neste’s customer GHG emissions reduc-
tion is calculated by aggregating the customer’s GHG
emission reduction for each batch of renewable prod-
ucts delivered to Neste’s customers. The GHG emis-
sion related to each batch is compared with the GHG
emission that the same quantity of a fossil fuel reference
(baseline) would emit. Emission factors for the fossil ref-
erences are dependent on the market where the prod-
uct was sold and its regulation. GHG emission reduction
General disclaimer
The figures in the Neste Annual report may be subject to rounding, which may cause some differences in aggregate totals calculated from exact figures.
comparisons are made by comparing the achieved
Neste’s annual greenhouse gas (GHG) emission reduc-
tion with publicly available emission data from road trans-
portation and aviation sector.
More detailed reporting principles for energy and
GHG emissions are available in the Sustainability
statement.
VOC, NOx, SO
2
, PM
Emissions to air (excluding CO
2
) are determined by
direct measurements (on-line or periodic) or with indi-
rect monitoring methods. On-line measurement is typ-
ically done on major emission points. Both direct mea-
surements and indirect monitoring is based on the site
environmental permit or other local environmental regu-
lation. Relevant process parameters linked to pollutant
emission measurements are monitored too. All emission
monitoring is done in accordance with standards. If EN
standards are not available, ISO, national or other inter-
national standard/method is used to ensure the provi-
sion of data of high quality.
Water withdrawal
The water withdrawal volumes are based on the compa-
ny’s own measurements or on invoicing. Neste’s water
risk assessment is based on WWF Water Risk Filter.
Neste annually updates the risk assessment.
Wastewater discharges
Neste reports the wastewater volumes, chemical oxy-
gen consumption, as well as the oil, nitrogen, and
phosphorus discharges. The figures are calculated on
the basis of refinery- or terminal-specific data based
on sampling or continuous metering. The figures do
not include the loading values of wastewater treated in
municipal or other external wastewater treatment plants.
Neste operates according to local discharge permits and
requirements. Our waste waters are treated to meet the
requirements before they are safely discharged.
Waste generated
The waste volumes are based on the invoicing data.
Non-renewable resource use replacement
Calculations were updated to include all sales volumes.
They include fossil resource usage over Neste’s renew-
able and circular solutions production life cycles. An
energy-based comparison is made with relevant fossil
references in transport, aviation and polymers & chem-
ical sectors. The difference is expressed as the energy
content of crude oil.
Safety
Calculations related to safety-related accident frequency
rates comply with the calculation principles of Concawe
(the oil companies’ European association for environ-
ment, health and safety in refining and distribution).
Total Recordable Injury Frequency (TRIF)
Workplace accidents are those accidents that occur at
work or while performing work duties. Total Recordable
Injuries (TRI) includes the recorded accidents at work
which result in absence from work, restriction to work,
medical treatment or fatality. The formula for calculating
accident frequency (number of accidents at work per
million working hours): total number of accidents at work
× 1,000,000 / hours worked. The calculation includes
in-house personnel, contractors and service providers
working at Neste’s sites.
Safe Day
A day without any personal safety accident (TRI), pro-
cess safety incident (PSE 1 and PSE 2), fires, leaks, envi-
ronmental permit violations, traffic accidents or marine
safety incidents.
Hours worked
The hours worked by the whole personnel and the ser-
vice providers during the period under review. When
recording the working hours of service providers, an esti-
mate (e.g. accounting hours) can be used if the accurate
number of hours is not known.
LWIF (Lost Workday injury frequency)
The number of accidents at work resulting in lost work-
days, relative to a million hours worked.
Process safety event rate (PSER)
Rate of process safety events per million hours worked.
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PSE1 (Process Safety Event)
An unplanned and uncontrolled release of any material,
including nontoxic and non-flammable materials from
a process, resulting in consequences according to the
PSE1 classification. Possible consequences:
• Injury leading to absence (LWI, RWI) or fatality.
• Fires or explosions with direct costs (excluding loss
of production) higher than EUR 100,000.
• An officially declared community evacuation
or community shelter-in-place, including
precautionary community evacuation or community
shelter-in-place.
• A leak exceeding the reporting threshold during a
certain period, according to Concawe (European Oil
Company Organisation for Environment, Health and
Safety)
• Pressure relief discharge / upset emission to
atmosphere that exceeds the PSE1 threshold value
and has one or more of these consequences:
Rainout; Discharge to a potentially unsafe location;
An on-site shelter-in-place or on-site evacuation,
excluding precautionary on-site shelter-in-place or
on-site evacuation; Public protective measures,
including precautionary public protective measures.
PSE2 (Process Safety Event)
An unplanned and uncontrolled release of any material,
including nontoxic and non-flammable materials from
a process, resulting in consequences according to the
PSE2 classification. Possible consequences:
• Workplace accident requiring medical treatment
(MTC).
• Fires or explosions with direct expenses (excluding
loss of production) higher than EUR 2,500.
• A leak exceeding the reporting threshold during a
certain period, according to Concawe
• Pressure relief discharge / upset emission to
atmosphere that exceeds the PSE2 threshold value
and has one or more of these consequences:.
Rainout; Discharge to a potentially unsafe location;
An on-site shelter-in-place or on-site evacuation,
excluding precautionary on-site shelter-in-place or
on-site evacuation; Public protective measures,
including precautionary public protective measures.
Fatalities
An workplace accident or an accident during a work-re-
lated travel causing an injury resulting in death within one
year of the day of the accident.
Personnel
Personnel metrics
Calculated as numbers of employees, and include, as a
rule, all personnel with active contracts of employment
or employees on leave. Temporary hourly paid employ-
ees are included. Unless otherwise specified, the per-
sonnel numbers are reported as at December 31.
Number of permanent employees
leaving the company
The number of employees leaving a permanent contract
of employment from Jan 1 to Dec 31/the number of per-
manent employees on Dec 31 (including all reasons for
ending the employment).
Number of permanent employees
joining the company
The number of employees entering a permanent con-
tract of employment from Jan 1 to Dec 31/ the number
of permanent employees on Dec 31.
Training costs
The training costs include external training-related costs,
such as the fees of external trainers, and the participa-
tion fees for external training events, but not, for exam-
ple, the salaries of participants or the company’s own
trainers.
Economic
Clean revenue
Clean revenue means revenue from all goods and ser-
vices which have a clear environmental and/or social
benefits. Clean investments are investments in such ben-
efits consisting of Clean CAPEX, Clean R&D and Clean
M&A. Clean Revenue and Clean Investments include for
example revenue from, and investments in, clean tran-
sition as well as low-carbon and circular economy solu-
tions. Clean Investments (%):
• Clean CAPEX+Clean R&D+Clean Acquisitions/Total
CAPEX+R&D+Acquisitions.
• Clean Revenue (%): Clean Revenue/Total Revenue.
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To the Board of Directors
of Neste Corporation
We have been engaged by the Management of Neste
Corporation (hereafter “Neste”) to provide limited assur-
ance on selected numerical sustainability indicators
(hereafter “Selected Numerical Sustainability Informa-
tion”) presented in the Annual review of Neste’s Annual
Report 2024 for the reporting period 1.1.– 31.12.2024.
The Selected Numerical Sustainability Information
subject to the limited assurance consists of selected
numerical economic, social and environmental sustain-
ability disclosures listed within the GRI (Global Report-
ing Initiative) Standards Topic-Specific Disclosures 200,
300 and 400, General Disclosures 2–7, 2–21, 2–27 and
2–30 as well as numerical information presented in the
“Value Creation” and “Performance in figures” sections
in Neste’s Annual Report 2024.
Management’s Responsibilities
The Management of Neste is responsible for the prepa-
ration and presentation of the Selected Numerical Sus-
tainability Information in accordance with the reporting
criteria i.e. GRI Standards. This responsibility includes
designing, implementing and maintaining internal con-
trol, maintaining necessary documentation, as well as
making estimates relevant to the preparation of the
Selected Numerical Sustainability Information that are
free from material misstatement, whether due to fraud
or error.
Independent Practitioners’
Assurance Report
Independent Practitioner’s
Responsibilities
Our responsibility is to perform a limited assurance
engagement and to provide an independent conclusion
based on our engagement. We performed our assur-
ance engagement in accordance with International Stand
ard on (ISAE) 3000 (Revised) “Assurance Engagements
other than Audits or Reviews of Historical Financial Infor-
mation”. This Standard requires that we plan and per-
form the engagement to obtain limited assurance about
whether the Sustainability Information is free from mate-
rial misstatement. The nature, timing and scope of the
limited assurance procedures are based on professional
judgement, including an assessment of material mis-
statement due to fraud or error, and we maintain pro-
fessional skepticism throughout the engagement. We
believe that the evidence we have obtained is sufficient
and appropriate to provide a basis for our conclusion.
We are independent of Neste in accordance with the
ethical requirements that are applicable in Finland and
are relevant to our engagement, and we have fulfilled our
other ethical responsibilities in accordance with these
requirements.
KPMG Oy Ab applies International Standard on Qual-
ity Management ISQM 1, which requires the authorized
audit firm to design, implement and operate a system
of quality management including policies or procedures
regarding compliance with ethical requirements, pro-
fessional standards and applicable legal and regulatory
requirements.
Description of the Procedures
That Have Been Performed
As the methods of obtaining evidence are more limited
in a limited assurance than in a reasonable assurance,
an assurance obtained is more limited than in a reason-
able assurance. We have designed and performed pro-
cedures to obtain sufficient and appropriate evidence for
limited assurance and to provide a basis for our conclu-
sion, therefore we do not obtain all the evidence, which
is required in reasonable assurance. While we consider
the design of internal controls when determining the
nature and scope of our assurance procedures, our lim-
ited assurance engagement is not included the testing
of the operating effectiveness of internal controls. Our
procedures did not include control testing or performing
procedures related to combining and calculating data
within IT systems. The limited assurance engagement
consists of inquiries of individuals who are responsible
for preparing the Sustainability Information and related
information, as well as for carrying out analytical and
other procedures.
In the engagement, we have performed the following
procedures, among others:
• Interviewed the members of Neste’s senior
management and relevant personnel responsible
for providing the Selected Numerical Sustainability
Information;
• Assessed the application of the reporting principles
of GRI Sustainability Reporting Standards in disclos-
ing the Selected Numerical Sustainability Information;
• Assessed data management processes, information
systems and working methods used to gather and
consolidate the Selected Numerical Sustainability
Information;
• Reviewed the disclosed Selected Numerical
Sustainability Information and assessed its quality
and defi- nitions of reporting boundaries; and
• Assessed the accuracy and completeness of the
Selected Numerical Sustainability Information
through a review of the original documents and
systems on a sample basis.
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Inherent Limitations of the Engagement
Inherent limitations exist in all assurance engagements
due to the selective testing of the information being
examined. Therefore fraud, error or non-compliance may
occur and not be detected. Additionally, non-financial
data may be subject to more inherent limitations than
financial data, given both its nature and the methods
used for determining, calculating and estimating such
data.
Conclusion
Based on the procedures performed and the evidence
obtained, nothing has come to our attention that causes
us to believe that the Selected Numerical Sustainabil-
ity Information for the reporting period 1.1.–31.12.2024
subject to the limited assurance engagement is not pre-
pared, in all material respects, in accordance with GRI
Sustainability Reporting Standards.
Helsinki, 28 February 2025 KPMG OY AB
Leenakaisa Winberg
Authorised Public Accountant, KRT
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Annual review Governance Review by the Board of Directors Financial statements
Governance
Corporate Governance Statement 64
Risk management 79
Remuneration report 84
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Corporate Governance Statement Risk management Remuneration report
This Corporate Governance Statement has been pre-
pared pursuant to the Finnish Corporate Governance
Code 2025, Chapter 7, Section 7 of the Finnish Securi-
ties Markets Act, as well as Section 7 of the Ministry of
Finance’s Decree on the Regular Duty of Disclosure of an
Issuer of a Security. The Corporate Governance State-
ment is issued separately from the Review by the Board
of Directors. The Review by the Board of Directors is pre-
sented on pages 90–154 of Neste’s Annual Report 2024
and it can be found, in addition to the Annual Report, at
https://www.neste.com/investors
Regulatory framework
Neste Corporation (“Neste” or the “Company”) observes
good corporate governance practices in accordance
with the laws and regulations applicable to Finnish
listed companies, the Company’s own Articles of Asso-
ciation, and the Finnish Corporate Governance Code
2025. The Corporate Governance Code can be found
at cgfinland.fi/en/. Neste also complies with the rules of
Nasdaq Helsinki Ltd, where it is listed, and the rules and
regulations of the Finnish Financial Supervisory Authority.
Neste’s Audit Committee has reviewed the Corporate
Governance Statement, and the Company’s Auditor,
KPMG Oy Ab, has monitored that it has been issued,
and that the description of the main features of the inter-
nal control and risk management related to the financial
reporting process included in the statement match the
Financial statements.
Neste issues Consolidated Financial statements and
interim reports in accordance with the International Finan-
cial Reporting Standards (IFRS), as adopted by the EU,
the Securities Markets Act, as well as the appropriate
Financial Supervisory Authority standards, and Nasdaq
Helsinki Ltd’s rules. The Review by the Board of Direc-
tors and the Parent Company’s Financial statements are
prepared in accordance with the Finnish Accounting Act
and the opinions and guidelines of the Finnish Account-
ing Board.
Governance bodies
The control and management of Neste is split between
the Annual General Meeting of Shareholders (AGM), the
Board of Directors (Board), and the President and Chief
Executive Officer (President and CEO). Ultimate deci-
sion-making authority lies with the shareholders at the
AGM, which appoints the members of the Board, the
Auditor and the Sustainability Reporting Assurer. The
Board is responsible for Neste’s strategy and overseeing
and monitoring the Company’s business. The Board
appoints the President and CEO. The President and
CEO, assisted by the Neste Leadership Team (NLT),
is responsible for managing the Company’s business
and implementing its strategic and operational targets.
Neste’s headquarters is located in Espoo, Finland.
*
Marketing & Services is led through an internal board and its EVP is not a member of the Neste Leadership Team
Shareholders / Annual General Meeting
Shareholders’ Nomination Board
President & CEO
Neste Leadership Team
Neste’s governance bodies
External
Audit
Internal
Audit
Board of Directors
Audit Committee Personnel and Remuneration Committee
Assurance Functions
Risk Management Compliance Internal Controls
Renewable Products Oil Products Marketing & Services* Functions
COO Office
CFO Office
People & Culture
Corporate Governance Statement 2024
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Annual General Meeting
Under the Finnish Companies Act, shareholders exer-
cise their decision-making power at General Meetings
of Shareholders by attending the meetings in person or
through an authorized representative. Each share enti-
tles the holder to one vote.
Shareholders at the AGM make decisions on matters
including:
• the approval of the Financial statements;
• the distribution of profit for the year detailed in the
Balance Sheet;
• discharging the members of the Board and the
President and CEO from liability;
• if necessary, the approval of the Remuneration
Policy;
• the approval of the Remuneration Report; and
• the election and remuneration of the Chair, the Vice
Chair, and the members of the Board, the Auditor
and the Sustainability Reporting Assurer.
The AGM is held annually before the end of June. An
Extraordinary General Meeting of Shareholders address-
ing specific matters can be held when considered nec-
essary by the Board, or when requested in writing by the
Company’s Auditor or by shareholders representing at
least one tenth of all Company shares.
Under the Articles of Association, an invitation to a
General Meeting of Shareholders must be delivered to
shareholders by publishing it on the Company’s website
at neste.com no earlier than two months, and no later
than three weeks, prior to a meeting, but at least nine
days before the record date set for the meeting under the
terms of the Companies Act. In addition, the Company
may, if the Board decides, publish details on the date
and time and location of the meeting, with the address
of the Company’s website, in one or more newspapers.
Neste is unaware of any shareholders’ agreements
regarding the Company’s shares.
2024
Neste Corporation’s 2024 AGM was held on 27
March 2024 at Messukeskus, Helsinki Expo and
Convention Centre. The AGM supported all the
proposals presented to the meeting and approved
the remuneration report and the remuneration pol-
icy. The AGM also approved the amendment of the
Charter for the Shareholders’ Nomination Board
resulting in, among other things, that the compo-
sition of the Nomination Board will in the future be
determined according to the votes produced by
the share ownership on the first banking day in
June. The AGM adopted the Company’s Finan-
cial statements and Consolidated Financial state-
ments for 2023 and discharged the Board and the
President and CEO from liability for 2023.
The AGM approved the Board’s proposal for a
dividend of EUR 1.20 per share, which was paid
in two installments based on the approved 2023
balance sheet. The first installment, EUR 0.60 per
share, was paid on 9 April 2024 to shareholders
who were registered in the company’s shareholder
register on the record date for the first installment,
2 April 2024. The second installment, also EUR
0.60 per share, was paid on 9 October 2024 to
shareholders who were registered in the compa-
ny’s shareholder register on the record date for the
second installment, 2 October 2024.
In accordance with the proposal made by the
Shareholders’ Nomination Board, the AGM con-
firmed the number of members of the Board at
ten. The AGM decided the composition of the
Board and the remuneration to be paid to the
members of the Board, and appointed the Audi-
tor and Sustainability Reporting Assurer. The AGM
also approved the Board’s proposals to the AGM
concerning authorisations to the Board to decide
on share buy-backs and share issues as well as
amendments to the Articles of Association.
Shareholders’ Nomination Board
Based on a decision by the AGM, the Company has a
permanent Shareholders’ Nomination Board, which is,
according to its Charter, responsible for drafting and
presenting proposals covering the remuneration and
number of members of the Company’s Board and for
presenting candidates as potential Chair, Vice Chair, and
members of the Board to the AGM and to an Extraor-
dinary General Meeting of Shareholders when required.
The Shareholders’ Nomination Board is also responsible
for identifying successors for existing Board Members.
The Shareholders’ Nomination Board consists of
three members appointed by the Company’s three larg-
est shareholders, who appoint one member each. The
Chair of the Company’s Board acts as an expert to the
Nomination Board. The Shareholders’ Nomination Board
elects a Chair among its members.
The Company’s largest shareholders entitled to elect
members to the Shareholders’ Nomination Board shall
be annually determined on the basis of the registered
holdings in the Company’s list of shareholders held by
Euroclear Finland Ltd. as of the first banking day in June
in the year concerned.
The Chair of the Company’s Board requests each of
the three largest shareholders established on this basis
to nominate one member to the Shareholders’ Nomina-
tion Board. In the event that a shareholder does not wish
to exercise their right to appoint a representative, the
right passes to the next largest shareholder who would
not otherwise be entitled to appoint a member.
The Chair of the Board convenes the first meeting of
the Shareholders’ Nomination Board, which is respon-
sible for electing a Chair from among its members; the
Shareholders’ Nomination Board’s Chair is responsible
for convening subsequent meetings. When the Share-
holders’ Nomination Board has been selected, the Com-
pany issues a release to this effect.
The Shareholders’ Nomination Board serves until fur-
ther notice unless a General Meeting of Shareholders
decides otherwise. Its members are appointed annually,
and their term of office ends when new members are
appointed to replace them.
The Shareholders’ Nomination Board forwards its pro-
posals for the AGM to the Company’s Board annually by
31 January, prior to the holding of the AGM. Proposals
intended for a possible Extraordinary General Meeting of
Shareholders are forwarded to the Company’s Board in
time for them to be included in the invitation to the meet-
ing sent out to shareholders.
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The Shareholders’ Nomination Board convened 8 times
between 31 January 2024 and 31 January 2025, and
the members of the Shareholders’ Nomination Board
attended each meeting as follows:
Decisions on the proposals for the 2025 AGM were
made by the members of the Shareholders’ Nomination
Board in a manner set out in more detail in the stock
exchange release published on 18 December 2024.
Composition of the Shareholders’ Nomination
Board prior to the 2024 AGM
On 6 September 2023 the following members were
appointed to Neste’s Shareholders’ Nomination Board:
the Chair, Senior Ministerial Adviser, Financial Affairs
Maija Strandberg of the Ownership Steering Department
Maija Strandberg
M.Sc. (Econ.),
Chair of the Shareholders’ Nomination Board
Born in 1969
Director General of the Ownership Steering Depart-
ment in the Prime Minister’s Office of Finland. Member
of the Board and Audit Committee of SSAB AB (publ).
Chair of Shareholder’s Nomination Committee of Fin-
nair Oyj and Fortum Oyj. Member of the Nomination
Committee of Kuntarahoitus Oyj and Neova Oy.
Holdings in Neste Corporation
on 31 December 2024:
00 holdings.
1)
Prime Minister’s Office:
340,107,618 shares.
2)
Shareholders’ Nomination Board members
Timo Sallinen
M.Sc. (Econ.),
Member of the Shareholders’ Nomination Board
Born in 1970
Senior Vice President, Investments of Varma Mutual
Pension Insurance Company. Member of the Share-
holders’ Nomination Board of Nordea, Nokian Ren-
kaat, Finnair, Atria, Robit and Vincit.
Holdings in Neste Corporation
on 31 December 2024:
00 holdings.
1)
Varma Mutual Pension Insurance Company:
11,551,622 shares.
2)
Jouko Pölönen
eMBA, M.Sc. (Econ. & Bus. Adm.),
Member of the Shareholders’ Nomination Board
Born in 1970
President and CEO, Ilmarinen Mutual Pension Insur-
ance Company. Chair of the Board of The Finnish
Foundation for Share Promotion. Member of the Board
of the Finnish Pension Alliance TELA. Member of the
Board of Nokian Tyres plc. Member of the Board of
Finance Finland. Member of the Board of Excellence
Finland.
Holdings in Neste Corporation
on 31 December 2024:
10,783 shares.
1)
Ilmarinen Mutual Pension Insurance Company:
19,726,508 shares.
2)
Other Shareholders’
Nomination Board
members in 2024
Matti Kähkönen
(born in 1956)
M.Sc. (Engineering)
Member of the Shareholders’
Nomination Board
until 7 June 2024
– Acts as an expert to the Nomination Board.
Participated in 2/2 meetings between
31 January 2024 and 7 June 2024.
Attendance
Maija Strandberg 8/8
Timo Sallinen 8/8
Jouko Pölönen 8/8
in the Prime Minister’s Office of Finland; Timo Sallinen,
Senior Vice President, Investments of Varma Mutual
Pension Insurance Company; President and CEO Jouko
Pölönen of Ilmarinen Mutual Pension Insurance Com-
pany; and Matti Kähkönen, Chair of Neste’s Board. The
Shareholders’ Nomination Board presented its proposal
covering the members of the Board on 31 January 2024.
Holdings in Neste Corporation on 31 December 2024:
1)
Own holdings and controlled entities.
2)
Shareholder’s holdings represented by the member of the Shareholders’ Nomination Board.
Composition of the Shareholders’ Nomination
Board prior to the 2025 AGM
On 7 June 2024 the following members were appointed
to Neste’s Shareholders’ Nomination Board: Director
General Maija Strandberg of the Ownership Steering
Department in the Prime Minister’s Office of Finland, as
the Chair, and Senior Vice President, Investments Timo
Sallinen of Varma Mutual Pension Insurance Company
and President and CEO Jouko Pölönen of Ilmarinen
Mutual Pension Insurance Company, as its members.
Matti Kähkönen, the Chair of Neste’s Board, acts as an
expert to the Nomination Board.
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Board
Under the Company’s Articles of Association, the Board
consists of five to ten members elected at the AGM for
a term ending at the following AGM.
Diversity of the Board
In planning the composition of a skilled, competent,
experienced, and effective Board, the Shareholders’
Nomination Board also follows the following diversity
principles defined by the Company. A cooperative and
functional Board requires diversity for it to be able to
respond to the requirements set out in Neste’s business
and strategic objectives and to support and challenge
the company’s operational management proactively and
constructively.
Significant factors concerning the composition of the
Board include a variety of competences that comple-
ment the other members of the Board, education and
experience in different professional and industrial fields,
and in business operations and management in different
development phases, as well as the personal qualities
of each member, all of which add diversity to the Board.
The diversity of the Board is also supported by experi-
ence in industrial fields and markets that are strategically
significant for Neste, experience and abilities in tech-
nologies and the international operating environment,
and by a diverse age and gender distribution so that
both genders are always adequately represented in the
Board. In considering the composition of the Board, it is
important to pay attention to Neste’s current and evolv-
ing needs, and to ensure that the Board, as a whole,
enables the current and future business development of
Neste, which diversity also supports.
Neste’s Board was composed of ten members after
the 2024 AGM. Heikki Malinen served on Neste’s Board
until 13 June 2024, after which Neste’s Board consisted
of nine members. All the Board’s members hold a uni-
versity-level degree, and two have doctorate degrees.
These degrees are from various fields, with technical
fields and economics in the majority. A majority of mem-
bers of the Board has international work experience in
different types of positions and has worked or is work-
ing in the Board or the management of listed or unlisted
companies. Two members have worked in managerial
positions at major international petrochemical compa-
nies. The Board is also diverse in terms of cultural back-
ground: the members come from four different countries
and speak four different native languages. Women com-
prise 33% of all members of the Board. Regarding age,
the members of the Board are divided evenly between
51 and 68 years of age. The duration of the terms of
office of the Board members is divided as follows: Four
members have been on the Board for three or more
years, while five members have been on the Board for
less than three years.
Activities of the Board
The Board must have at least eight regular meetings
annually, all scheduled in advance, with extraordinary
meetings when necessary. Extraordinary meetings, if
requested by a Board member or the President and
CEO, are convened by the Chair, or, if the Chair is pre-
vented from attending, by the Vice Chair, or if deemed
necessary by the Chair. The Board constitutes a quorum
if more than half its members are present. The Board is
responsible for preparing an operating plan for itself for
its period of office between AGMs, including a timeta-
ble of meetings and the most important matters to be
addressed at each meeting. The Board evaluates its
performance annually to determine whether it is func-
tioning effectively after the end of each financial year.
New Board members participate in an onboarding pro-
gram that covers all material areas of the company’s
operations.
Duties of the Board
The Board’s responsibilities and duties are defined in
detail in the Charter approved by the Board. A mem-
ber of the Board may not take part in decision making
in matters regarding (i) agreements between such mem-
ber and any entity within the Neste Group, (ii) agree-
ments between any entity within the Neste Group and
third parties where such a member has a material inter-
est in the matter which may conflict with the interests of
Neste or any other entity within the Neste Group, and (iii)
agreements between any entity within the Neste Group
and a legal entity at which such member may repre-
sent, either individually or with any other person; pro-
vided however, that this point (iii) does not apply where
the party contracting with Neste is a company within
the Neste Group. The term “agreement” as used here
includes litigation or other legal proceedings arising from
or related to such agreements.
2024
The 2024 AGM confirmed the membership of the
Board at ten members, and the following were
re-elected to serve until the end of the next AGM:
Matti Kähkönen, John Abbott, Nick Elmslie, Just
Jansz, Heikki Malinen, Eeva Sipilä and Johanna
Söderström. Conrad Keijzer, Pasi Laine and Sari
Mannonen were elected as new members. Matti
Kähkönen was re-elected as Chair and Eeva Sip-
ilä was re-elected as Vice Chair. Heikki Malinen
served on Neste’s Board until 13 June 2024, after
which Neste’s Board consisted of nine members.
The Board convened 18 times in 2024. The
attendance rate at the meetings was 92.9%. In
addition to the process resulting in Heikki Malinen
being appointed as the President and CEO of
the Company as of 15 October 2024 and other
changes in the Company’s senior management
during 2024, the Board focused on supervision
of strategy execution relating to, e.g., the contin-
ued scale-up of the Company’s sustainable avi-
ation fuel (SAF) business as well as evaluating
the changes in the long-term operational envi-
ronment and their impact on the Company. The
Board also monitored the expansion and ramp-up
of the Company’s renewables feedstock platform,
including in relation to the on-going Rotterdam
expansion project. Sustainability topics, such as
the build-up of new CSRD sustainability reporting
readiness, were also on the Board agenda in 2024.
In addition to the above and matters set out in the
Board Charter, the Board continuously monitored
the Company’s safety, financial and operational
performance, as well as risk management. The
Board work has during the year been assessed by
an external consultant.
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Board of Directors, 31 December 2024
Position Born Education Main Occupation
Independent
of the company
Independent
of major
shareholders
Personnel and
Remuneration
Committee
Audit
Committee
Attendance
at meetings
Board Committees
Matti Kähkönen Chair 1956 M.Sc. (Eng.) Non-Executive Director • • 18/18 1/1
John Abbott Member 1960 B.Sc. (Chem. eng.) Non-Executive Director • • • 17/18 5/5
Nick Elmslie Member 1957 B.Sc. (Chem.) Non-Executive Director • • • 18/18 5/5
Just Jansz Member 1957
Ph.D. (Chemical
Metallurgy)
Independent board member
and advisor, Managing Director
of Expertise Beyond Borders
• • • 17/18 5/5
Conrad Keijzer Member 1968
M.Sc. (Industrial
Engineering)
CEO, Clariant • • • 12/15 3/4
Pasi Laine Member 1963 M.Sc. (Eng.) President and CEO, Valmet
1)
• • • 12/15 3/4
Sari Mannonen Member 1966 Ph.D. (Biochemistry)
Senior Vice President,
New Business & Hydrogen, Helen
• • • 15/15 4/4
Eeva Sipilä Member 1973 M.Sc. (Econ.), CEFA
Chief Financial Officer,
Deputy to CEO, Metso Corporation
• • • 18/18 5/5
Johanna Söderström Member 1971 M.Sc. (Econ.)
EVP, Chief People Officer
at Tyson Foods Inc
1)
• • • 18/18 5/5
The shareholdings of the members of the Board of Directors are presented below their CVs. The remuneration paid to the members of the Board of Directors is detailed in the Remuneration Report.
1)
Main occupation ended in 2024.
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Matti Kähkönen
(born in 1956)
M.Sc. (Engineering)
Chair of the Board since 2018
Member of the Board since 2017
Independent member
Senior Advisor, Metso Corporation 2017–2019.
President and CEO, Metso Corporation 2011–2017.
Executive Vice President and Deputy to the CEO,
Metso Corporation 2010–2011. President, Mining and
Construction Technology, Metso Corporation 2008–2011.
President, Metso Minerals 2006–2008. President, Metso
Automation, 2001–2006. President, Metso Automation,
Field Systems Division 1999–2001. Prior to 1999,
various managerial and development positions in Neles-
Jamesbury and Rauma-Repola. Chair of the Board of
Directors at Kemira 2022–.
Holdings in Neste Corporation on 31 Dec 2024:
16,282 shares.
1)
John Abbott
(born in 1960)
B.Sc. First Class Honours, Chemical Engineering
Member of the Board since 2021
Independent member
Downstream Director and a Member of the Executive
Committee of Royal Dutch Shell plc 2013–2019.
Executive Vice President of Global Manufacturing at Shell
2012–2013. Executive Vice President of Shell’s Upstream
Americas Heavy Oil business, based in Calgary, Canada
2008–2012. Vice President Manufacturing (Refining
and Chemicals) Excellence and Support at Shell based
in Houston, USA 2006–2008. Various positions at
Shell in the UK, Singapore, Thailand, The Netherlands,
Canada, and the USA, predominantly in the areas of
Global Manufacturing (Refining and Chemicals) as well
as Supply, Trading and Distribution 1981–2006. In 1994,
he was also seconded to the British Government for a
short assignment. Non-Executive Director of Fiat Chrysler
Automobiles 2018–2021. Senior Non-Executive Director
of the Intercontinental Exchange (ICE) Futures Europe
2021–. Non-Executive Director of ICE Clear Europe
2023–. Member of Neste’s Audit Committee.
Holdings in Neste Corporation on 31 Dec 2024:
1,822 shares.
1)
Nick Elmslie
(born in 1957)
B.Sc. (Chemistry)
Member of the Board since 2020
Independent member
Chief Executive, BP Global Petrochemicals based in
Shanghai 2011–2015. Controller, Head of Finance
Function, BP Downstream 2006–2011. Various directorial
positions at BP plc., including Chief Executive, Acetyls
Business and Business Unit Leader, Head of Chemicals
Strategy and CFO, Polymers & Olefins 1992–2006.
Various positions at BP plc 1978–1992. Member of the
Board and Investor at 3FBio Ltd 2017–, Chair 2023–.
Member of the Supervisory Board of OTI Greentech AG
2017–. Member of the Board of Fosroc Group Holdings
Limited 2009–. Member of Neste’s Personnel and
Remuneration Committee.
Holdings in Neste Corporation on 31 Dec 2024:
3,822 shares.
1)
1)
Holdings in Neste Corporation: own holdings and controlled entities.
Members of the Board of Directors
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Members of the Board of Directors
Pasi Laine
(born in 1963)
M.Sc. (Eng.)
Member of the Board since 2024
Independent member
President and CEO, Valmet 2014–08/2024. Executive
Vice President, Deputy to the CEO and President of
Metso Pulp, Paper and Power, Metso 2011–2013.
Member of the Executive Team, Metso 2006–2013.
Several other leadership roles, Metso 1998–2011.
Managing Director, Elsag Bailey Hartmann & Braun Oy
1996–1998. Various roles in Finland, Canada, Germany
and the United Kingdom, Valmet 1988–1996. Chair of the
Board of Directors at Ilmarinen Mutual Pension Insurance
Company 2020–. Member of the Board of Directors at
Konecranes Plc. 2022–, Chair 2024–. Member of Neste’s
Personnel and Remuneration Committee.
Holdings in Neste Corporation on 31 Dec 2024:
1,038 shares.
1)
1)
Holdings in Neste Corporation: own holdings and controlled entities.
Conrad Keijzer
(born in 1968)
M.Sc. (Industrial Engineering)
Member of the Board since 2024
Independent member
CEO, Clariant, Switzerland 2021–. CEO and Director,
Imerys, France 2018–2019. Member of the Executive
Committee and Director of Performance Coatings,
AkzoNobel, The Netherlands 2013–2018. Several other
business leadership roles in the Netherlands, Germany,
Spain, the U.S. and Mexico, AkzoNobel 1994–2013.
Member of the Board and Chair of the Nomination
Committee of the European Chemical Industry Council
(Cefic) 2022–. Member of the Board of Directors of
American Chemistry Council (ACC) 2022–. Member of
Neste’s Audit Committee.
Holdings in Neste Corporation on 31 Dec 2024:
1,038 shares.
1)
Just Jansz
(born in 1957)
Ph.D. (Chemical Metallurgy), M.Sc. (Mineral Engineering)
Member of the Board since 2022
Independent member
Independent board member and advisor 2011–.
Managing Director of Expertise Beyond Borders 2011–.
President Technology Business, Basell / LyondellBasell
2004–2010. Senior Vice President, Advanced Polyolefins,
Basell 2001–2004. Various managerial positions at Shell
affiliate companies 1989–2000. Member of Neste’s Audit
Committee.
Holdings in Neste Corporation on 31 Dec 2024:
1,822 shares.
1)
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Johanna Söderström
(born in 1971)
M.Sc. (Econ.)
Member of the Board since 2020
Independent member
Executive Vice President, Chief People Officer at Tyson
Foods Inc. 2020–2024. Senior Vice President, Chief
Human Resources Officer at the Dow Chemical Company
2014–2019. Vice President, Center of Expertise Human
Resources at the Dow Chemical Company 2012–
2014. Various directorial HR positions at Dow Chemical
Company, Dow Europe GmbH and Dow Chemical
Handels- und Vertriebsgesellschaft mbH 2007–2012.
Head of Global Compensation & Benefits at Huhtamäki
Oyj 2006–2007. Various specialist and managerial
positions at Dow Europe GmbH, Dow Chemical Handels-
und Vertriebsgesellschaft mbH and Dow Suomi Oy
1999–2006. Prior to 1999, various specialist positions
at Oy L M Ericsson Ab. Chair of Neste’s Personnel and
Remuneration Committee.
Holdings in Neste Corporation on 31 Dec 2024:
4,822 shares.
1)
Eeva Sipilä
(born in 1973)
M.Sc. (Econ.), CEFA
Vice Chair of the Board since 2023
Member of the Board since 2022
2)
Independent member
Chief Financial Officer and member of the Neste
Leadership Team as of 1 May 2025 at the latest. Chief
Financial Officer, Deputy to CEO, Metso Corporation
2016–2025 (Metso Outotec Corporation 2020–2023).
Executive Vice President, Chief Financial Officer,
Cargotec Corporation 2008–2016. Senior Vice President,
Communications and Investor Relations, Cargotec
Corporation 2005–2008. Various positions at Metso
Corporation, Mandatum Stockbrokers part of Sampo
Group and Arkwright AB 1997–2005. Supervisory
Board Member, Varma, 2021–. Chair of Neste’s
Audit Committee.
Holdings in Neste Corporation on 31 Dec 2024:
3,198 shares.
1)
Kimmo Viertola
(born in 1961)
M.Sc. (Econ.)
Member of the Board since 2023
Non-independent member of the company’s
significant shareholder (the State of Finland)
– Member of the Board until 27 March 2024.
Heikki Malinen
(born in 1962)
M.Sc. (Econ.), MBA (Harvard)
Member of the Board since 2023
Independent member
– Member of the Board until 13 June 2024.
Other Board members
during 2024
Members of the Board of Directors
Sari Mannonen
(born in 1966)
Ph.D. (Biochemistry)
Member of the Board since 2024
Independent member
Senior Vice President, New Business & Hydrogen,
Helen 2024–. Senior Vice President, Solutions Business
& Portfolio Development, Helen 2020–2024.
Vice President, UPM Biofuels 2016–2019. Several
leadership roles, UPM Biofuels and Living
2011–2016. Senior Vice President, Corporate Sales
& Customer Management, Lindström 2007–2009.
Vice President, Sales & Marketing, Biohit 2002–2007.
Several management roles, Biohit 1995–2001. Partner
at Hallituspartnerit Helsinki – Board Professionals
Finland 2019–. Member of the Board at LUT University,
Lappeenranta & Lahti, Centre for Separation Technology
(CST) 2020–. Member of the Board at Geonova
2022–2024. Member of the Board at Helen Aurinkopuisto
Kalanti Oy & Kalanti Grid Oy 2022–. Member of the Board
at Korkia 2022–, Vice Chair 2024–. Member of the Board
at World Energy Council, WEC Finland 2022–. Member of
Director’s Institute Finland (DIF) – Hallitusammattilaiset ry.
2023–. Member of Neste’s Personnel and Remuneration
Committee.
Holdings in Neste Corporation on 31 Dec 2024:
1,038 shares.
1)
1)
Holdings in Neste Corporation: own holdings and controlled entities.
2)
Eeva Sipilä announced her resignation from the Board of the company on 13 February 2025.
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2024
Starting from 27 March 2024, the Audit Commit-
tee comprised Eeva Sipilä (Chair), John Abbott,
Conrad Keijzer, Heikki Malinen and Just Jansz. In
2024, the Audit Committee convened 5 times, and
the attendance rate was 95.2%. Heikki Malinen
served on Neste’s Audit Committee until 13 June
2024 after which Neste’s Audit Committee con-
sisted of four members.
As part of the tasks specified in its Charter, the
Audit Committee supervised and reviewed during
2024 external and internal audit activities, and the
Company’s financial reporting and build-up of new
CSRD sustainability reporting readiness. The Audit
Committee also focused on risk management,
especially in relation to the changes in the market
environment and the financial position of the com-
pany. The Audit Committee also monitored, e.g.,
IT system, cybersecurity and compliance develop-
ment topics as well as legal and tax matters.
Personnel and Remuneration Committee
The Personnel and Remuneration Committee consists
of the Chair of the Board and at least two non-executive
members of the Board.
Duties
The Personnel and Remuneration Committee is respon-
sible for preparing the Company’s remuneration princi-
ples and practices, reviewing the talent management and
development process as well as planning the remunera-
tion and succession of the President and CEO and other
senior executives. The responsibilities and duties of the
Personnel and Remuneration Committee are defined in
detail in the Charter approved by the Board.
2024
Starting from 27 March 2024, the Personnel and
Remuneration Committee comprises Johanna
Söderström (Chair), Nick Elmslie, Pasi Laine and
Sari Mannonen. The Personnel and Remuneration
Committee convened 5 times in 2024, and the
attendance rate was 95.0%.
During 2024, the Personnel and Remuneration
Committee continued to focus on reviewing and
developing Neste’s total remuneration and talent
management and development to support the
Company’s operational and strategic targets. The
Personnel and Remuneration Committee of Neste
focused on the renewal of the long-term incentive
(LTI) plan to strengthen our pay for performance
approach and the remuneration of the new Pres-
ident and CEO. In line with the duties in its Char-
ter, the Personnel and Remuneration Committee
also followed up the ongoing performance period
2024 and outcomes of rewarding based on 2023
results. In addition, the Personnel and Remunera-
tion Committee followed up the personnel engage-
ment level based on the Company’s Pulse survey
results.
President and CEO
Neste’s President and CEO since 15 October 2024,
Heikki Malinen (b. 1962, M.Sc. (Econ.), MBA (Harvard)),
manages the Company’s business operations in accor-
dance with the Companies Act and instructions issued
by the Board. The President and CEO oversees the
executive management of the Company in accordance
with instructions and orders given by the Board, and is
responsible for ensuring that the Company’s accounts
are in compliance with the law, and that its financial
affairs have been reliably arranged.
Neste’s former President and CEO (2022–2024) Matti
Lehmus (b. 1974, eMBA, M.Sc., Chemical Technology
and Polymer Technology) acted as the President and
CEO of Neste until 14 October 2024 and then contin-
ued as an advisor to the company and its management
until mid-November 2024.
The President and CEO is appointed by the Board,
which evaluates the performance of the President and
CEO annually and approves his remuneration based on
a proposal from the Personnel and Remuneration Com-
mittee. Information about the remuneration of the Presi-
dent and CEO can be found in the 2024 Remuneration
report.
Neste Leadership Team
The Neste Leadership Team assists the President and
CEO in managing the Company and in the deployment
of the Company’s strategic and operational goals. Mem-
bers are appointed by the Board. The Neste Leadership
Team meets regularly, on average once a month. Infor-
mation about the remuneration of the members of the
Neste Leadership Team can be found at neste.com.
2024
The Neste Leadership Team had 12 meetings
during the year. It also met regularly outside such
meetings in relation to specific themes.
In addition to supporting the President and CEO
in the fulfillment of his general duties, the Neste
Leadership Team regularly monitored the Compa-
ny’s safety, financial and operational performance.
The Neste Leadership Team continued during 2024
to work on strategy execution. In such a context,
the strategic focus areas included, among others,
both growth areas, such as the continued scale-up
of the Company’s sustainable aviation fuel (SAF)
business, and efficiency improvements initiatives.
The Neste Leadership Team also focused on the
expansion and ramp-up of the Company’s renew-
ables feedstock platform, including in relation to
the on-going Rotterdam expansion project. In
addition, several other matters were given special
attention during the year, including sustainability
topics, such as the build-up of new CSRD sus-
tainability reporting readiness, as well as cyberse-
curity and other compliance matters.
Board Committees
The Board has established an Audit Committee and
a Personnel and Remuneration Committee. A quo-
rum exists when more than two members, including
the Chair, are present. All members are elected from
among the members of the Board for a one-year term.
The tasks and responsibilities of each committee are
defined in their Charters, which are approved by the
Board. The schedule and frequency of committee meet-
ings are determined by the Chair and committee mem-
bers. In addition, the Board can appoint committees as
needed, for example, for significant investment projects
or other special tasks. Committees meet at least twice
a year. Each committee reports regularly on its meetings
to the Board. Reports include a summary of the matters
addressed and the measures undertaken. Each com-
mittee conducts an annual self-evaluation of its perfor-
mance and submits a report to the Board.
Audit Committee
Under its Charter, the Audit Committee consists of a
minimum of three Board members who are independent
of the Company and its subsidiaries, and at least one
of whom must be independent of Neste’s major share-
holders. Members are required to have sufficient knowl-
edge of accounting practices, preparation of financial
statements and statutory sustainability reporting as well
as other qualifications that the Board deems necessary.
The Audit Committee is permitted to use external con-
sultants and experts when deemed necessary.
Duties
The Audit Committee is responsible for overseeing the
company’s financial reporting and sustainability reporting
processes, monitoring internal control, risk management
and auditing, as well as evaluating the independence of
the auditor and the provision of non-audit services. The
responsibilities and duties of the Audit Committee are
defined in detail in the Charter approved by the Board.
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Heikki Malinen
(born in 1962)
President and CEO
M.Sc. (Econ.), MBA (Harvard)
President and CEO of Neste as of 15 October 2024
Joined the company in October 2024. President and
CEO of Neste Corporation. Responsible for leading the
Renewable Products business area. Previously served
as President and CEO at Outokumpu Corporation
2020–09/2024. President and CEO at Posti Group
Corporation 2012–2019. President and CEO at Pöyry
PLC 2008–2012. Executive Vice President, Strategy,
member of the Executive Team at UPM-Kymmene
Corporation 2006–2008. President at UPM North
America 2004–2005. President of Sales at UPM North
America 2002–2003. Managing Partner at Jaakko
Pöyry Consulting, New York, USA 2000–2001. several
directorial and managerial roles at e.g., McKinsey & Co
and UPM 1986–1999. Vice Chair, EK, Confederation of
Finnish Industries 2023–. Vice Chair, Technology Finland
2023–. Member of the Board of Neste Corporation
2023–06/2024.
Holdings in Neste Corporation on 31 Dec 2024:
1,895 shares.
1)
Markku Korvenranta
(born 1966)
Executive Vice President, Oil Products
2)
,
and Chief Operating Officer
M.Sc. (Eng.)
Member of the Neste Leadership Team since 2021
Joined the company in 2021. Responsible for the Oil
Products business area. Serves as Chief Operating
Officer. Prior to his executive roles at Neste, served as
SVP, Group Portfolio Development at Marquard & Bahls,
in Germany 2019–2021. EVP, Base Chemicals and
Member of Executive Board at Borealis in Austria
2010–2018. Before that had several directorial and
managerial roles at Borealis in Austria, Finland, Denmark
and Belgium 1994–2010. Has also served in various roles
at Neste Chemicals in Finland 1990–1994. Member of
the Board of Oiltanking in Germany 2021–. Chair of the
Board of The Chemical Industry Federation of Finland
2022–2024.
Holdings in Neste Corporation on 31 Dec 2024:
2,073 shares.
1)
Members of the Neste Leadership Team
Hannele Jakosuo-Jansson
(born 1966)
Executive Vice President, People & Culture
M.Sc. (Eng.)
Member of the Neste Leadership Team since 2006
Joined the company in 1990. Responsible for human
resources, safety, communications, brand, sustainability
and public affairs. Prior to her executive roles at Neste,
served as Vice President, Human Resources at Oil
Refining 2004–2005 and Laboratory and Research
Manager at the Technology Center 1998–2004. Chair of
the Skills and Competence Committee of the Chemical
Industry Federation of Finland 2010–. Member of the
Skilled workforce Committee at the Confederation of
Finnish Industries EK 2017–, Chair 2024–. Member of the
Board of Finnair, Chair of the People and Remuneration
Committee of the Finnair Board Plc 2021–. Directors’
Institute of Finland, Senior Advisor 2023–.
Holdings in Neste Corporation on 31 Dec 2024:
39,050 shares.
1)
Matti Lehmus
(born in 1974)
eMBA, M.Sc. (Chemical Technology
and Polymer Technology)
President and CEO,
Chair of the Neste Leadership Team
from 2022 until 14 October 2024
– Left his position as President and CEO of
Neste as of 14 October 2024.
Katja Wodjereck
(born in 1976)
eMBA, M.Sc. (Business Administration,
European Business Management)
Executive Vice President,
Renewable Products business unit
Member of the Neste Leadership Team
from 2023 until 8 May 2024
– Stepped down from the Neste Leadership
Team and left the company to pursue other
opportunities on 8 May 2024.
Bart Leenders
(born in 1969)
M.Sc. (Mechanical Engineering)
Executive Vice President,
Technology and Projects
Member of the Neste Leadership Team
since 2023 until 28 October 2024
– Stepped down from the Neste Leadership
Team following the new leadership team
appointments announced 28 October 2024.
Carl Nyberg
(born in 1979)
M.Sc. (Economics and Business Administration)
Executive Vice President,
Renewables Supply Chain and Sustainability
Interim Executive Vice President,
Renewable Products business unit
as of 8 May 2024 until 28 October 2024
Member of the Neste Leadership Team
from 2019 until 28 October 2024
– Stepped down from the Neste Leadership
Team following the new leadership team
appointments announced 28 October 2024,
member of the Neste Extended
Leadership Team.
Christian Ståhlberg
(born in 1974)
LL.M.
General Counsel,
Executive Vice President, Legal
Member of the Neste Leadership Team
since 2017 until 28 October 2024
– Stepped down from the Neste Leadership
Team following the new leadership team
appointments announced 28 October 2024,
member of the Neste Extended
Leadership Team.
Martti Ala-Härkönen
(born in 1965)
Dr.Sc. (Econ.), Lic.Sc. (Tech.)
CFO, Executive Vice President,
Finance, Strategy and IT
Member of the Neste Leadership Team from
2022 until 28 October 2024
– Stepped down from the Neste Leadership
Team following the new leadership team
appointments announced 28 October 2024,
continues his career outside of Neste.
Other Neste Leadership Team
members during 2024
1)
Holdings in Neste Corporation: own holdings and controlled entities.
2)
Markku Korvenranta served as Executive Vice President, Oil Products, until 13 February 2025.
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Corporate Governance Statement Risk management Remuneration report
2024
The 2024 AGM elected KPMG Oy Ab as the Com-
pany’s auditor, and Authorized Public Accountant
Leenakaisa Winberg acted as the auditor with
principal responsibility. The statutory audit fees in
2024 were EUR 1.8 million, auditor's statements
including statutory sustainability reporting assur-
ance were EUR 0.2 million and other fees charged
amounted to EUR 0.8 million. Fees for statutory
sustainability reporting assurance are detailed in
the section on the Sustainability Reporting Assurer.
Sustainability Reporting Assurer
The AGM elects the Sustainability Reporting Assurer
annually. The Sustainability Reporting Assurer’s term of
office ends at the end of the next AGM following election.
The Sustainability Reporting Assurer is responsible for
auditing the information included in the Review by the
Board of Directors that the Company has presented as
its sustainability report.
2024
The 2024 AGM elected KPMG Oy Ab as the Com-
pany’s Sustainability Reporting Assurer, and Autho-
rized Public Accountant, Authorized Sustainability
Auditor Leenakaisa Winberg acted as the princi-
pally responsible sustainability reporting assurer.
The statutory sustainability reporting assurance
fees in 2024 were EUR 0.1 million, and other fees
charged amounted to EUR 0.1 million.
Internal Audit
Neste’s Internal Audit provides independent and objec-
tive assurance and advisory services designed to add
value and improve the operations of Neste. As a com-
ponent in the corporate governance process, it supports
the organization by bringing a systematic approach to
evaluating and improving the effectiveness of gover-
nance, risk management and control processes.
Internal Audit’s activities encompass objective exam-
inations for the purpose of providing assessments to
Neste’s Board’s Audit Committee and management
of the adequacy and effectiveness of governance, risk
management and control processes at Neste. The
scope of Internal Audit assessments includes evaluat-
ing that risk management practices are in place, signifi-
cant risks are appropriately identified and managed, key
policies and guidelines exist and are documented and
effectively implemented, organizational structures and
governance models enable efficient decision making,
the steering system, roles and responsibilities are clear,
and the results of operations and programs are consis-
tent with established goals and objectives.
Internal Audit work is carried out based on an annual
Internal Audit Plan. Neste’s strategic priorities, key proj-
ects and identified risks are key elements in the audit
planning process. The Vice President of Internal Audit
reports periodically to the senior management and the
Board Audit Committee Internal Audit’s activities relative
to the annual plan, including audit recommendations
and action plans established by organizations aiming for
the continuous improvement and mitigation of risks.
Internal Audit is also responsible for conducting spe-
cial assignments on behalf of management or the Board
Audit Committee. As a member of Neste’s Investiga-
tion Group, the Vice President of Internal Audit partici-
pates in the investigation of suspected misconduct and
breaches of Neste’s policies, principles, and applicable
laws and regulations. To assure an effective, efficient and
value-adding process, Internal Audit actively cooperates
with other Neste’s assurance functions (Corporate Risk
Management, Internal Control and Compliance) and
senior management and shares best practices from a
process and governance perspective.
Internal Audit follows the mandatory elements of the
Institute of Internal Auditors’ International Professional
Practices Framework, including the Professional Prac-
tice of Internal Auditing. Until 28 October 2024, the
Internal Audit reported directly to the Board of Directors’
Audit Committee and administratively to the President
and CEO. Following the appointment of a new Lead-
ership Team on 28 October 2024, the Internal Audit
Neste Extended Leadership Team
As of 2 December 2024, the Extended Leadership Team
(NELT) consists of members of the Neste Leadership
Team (NLT) and other appointed leaders.
The key role of the Neste Extended Leadership Team
is to support the company’s long-term strategic deci-
sion-making and value creation as well as to ensure the
alignment and implementation of the company’s strate-
gic decisions throughout the organization.
The members of the extended leadership team are:
• Heikki Malinen, President & CEO (Chair)
• Markku Korvenranta, EVP, Oil Products and COO
• Eeva Sipilä, CFO (Anssi Tammilehto as interim)
• Hannele Jakosuo-Jansson, EVP, People & Culture
• Carl Nyberg, SVP, RP Commercial
• Sami Oja, SVP, OP SCM, Supply & Trading
• Anssi Tammilehto, SVP, Strategy, M&A and
Investor Relations
• Lars Peter Lindfors, SVP, R&D and Technology
• Hanna Maula, SVP, Communications,
Sustainability & Public Affairs
• Christian Ståhlberg, SVP, Legal & Compliance
Company Auditor
The AGM elects the Auditor annually. The Auditor’s
term of office ends at the end of the next AGM following
election.
The Auditor is responsible for auditing the Company’s
accounts, its financial statements and Neste’s admin-
istration. The Auditor’s Report covers the Consolidated
Financial statements and the Parent Company’s Finan-
cial statements, and can be found in the Financial state-
ments section of the Annual Report.
reports directly to the Board of Directors’ Audit Commit-
tee and administratively to the CFO. The Board of Direc-
tors is responsible for approving the Internal Audit Char-
ter and the annual Internal Audit Plan. The Internal Audit
Charter includes the determination regarding the Internal
Audit position, operational model, process and reporting
lines. Internal Audit holds a non-executive meeting with
the Audit Committee members and the Audit Commit-
tee Chair at least annually. The Vice President of Internal
Audit is responsible for the internal audit activities spec-
ified in the Internal Audit Charter.
2024
Internal Audit performed internal audits set out in
the Internal Audit Plan 2024, and reported audit
results to the senior management and the Board
Audit Committee. The Internal Audit function con-
tinued to strengthen cooperation with other Neste
assurance functions such as compliance, risk man-
agement and internal controls with an aim of inte-
grating activities and reporting to management.
Neste’s strategic investments, top risks and key
business processes were the focus during 2024,
including cybersecurity, EU CSRD reporting, the
Rotterdam Capacity Growth Project and oper-
ations at Neste’s foreign subsidiaries in the US,
India and Brazil.
Compliance function
Neste is committed to high ethical standards and con-
ducts its business and operates in compliance with
applicable laws, regulations and generally accepted
good corporate governance practice. Neste’s Code of
Conduct sets the framework for Neste’s global business
operations and establishes the ethical practices to guide
Neste employees in their day-to-day business activities
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Corporate Governance Statement Risk management Remuneration report
Sustainability statement in the Review by the Board of
Directors and in the Annual review.
In addition to other reporting channels, Neste has an
externally operated misconduct reporting system, Eth-
ics Online, available to all Neste’s internal and exter-
nal stakeholders, including various actors in its supply
chains. Ethics Online serves as a grievance mechanism
and enables Neste’s stakeholders to raise concerns
related to alleged misconduct in Neste’s operations.
Neste’s Investigation Group is responsible for evaluat-
ing and investigating such reported cases. Neste has
a strict non-retaliation policy for concerns reported in
good faith. Neste’s main principles and policy followed
in internal misconduct investigations is described in the
Company’s internal Misconduct Investigation Standard.
Any irregularities or misconduct are reported regularly to
the Board’s Audit Committee.
Insider administration procedures
Neste complies with the EU Market Abuse Regula-
tion (596/2014), including related regulation, as well as
Nasdaq Helsinki Ltd’s Insider Guideline as a minimum
standard on insider matters. In addition, the Board has
approved the Company’s own Guidelines for Insiders.
The Company’s General Counsel is responsible for the
coordination and supervision of insider matters, along
with the insider register manager, the insider communi-
cation manager and individuals responsible as heads of
project-specific registers. All the above individuals have
their own deputies. In addition, the head of each orga-
nizational unit is responsible for supervising insider mat-
ters within their organization. The Company arranges
training related to the insider guidelines.
The creation and maintenance of a project-specific
insider register is the responsibility of the head of such
a register, who is named in the relevant project-specific
insider register.
and decisions. Neste also requires suppliers and other
business partners to comply with applicable laws and
expects them to follow equivalent ethical business
standards as stated in the Code of Conduct and fur-
ther described in our Supplier Code of Conduct. More
information about Neste’s Code of Conduct in Neste’s
Annual review and on Neste’s external web pages.
The purpose of Neste’s Compliance function is
to develop, establish, facilitate and oversee compli-
ance procedures and programs aimed at ensuring that
Neste’s global organizations have effective systems and
processes in place for identifying, preventing, detecting
and correcting non-compliance with applicable laws,
regulations and Neste’s internal rules. The function sup-
ports Neste’s management in their responsibility for
overall compliance risk management, as well as Neste’s
organizational unit management in their responsibilities
to identify and manage compliance risks related to their
operations. The compliance function works in close col-
laboration with Neste’s business areas, functions and
other internal assurance organizations, in particular the
Risk Management, Internal Control and Internal Audit
functions. The compliance function is headed by the
Chief Compliance Officer (CCO), who reports to Neste’s
General Counsel. The CCO reports regularly on compli-
ance activities to the Neste Leadership Team and to the
Board’s Audit Committee. Neste also has an Ethics and
Compliance Committee, which oversees and steers the
management of the ethics and compliance program in
Neste.
Reports on suspected misconduct received via the
Company’s externally operated reporting system and
other reporting channels are investigated in accordance
with applicable laws and Neste’s internal Misconduct
Investigation Standard. More information about the
Misconduct Investigation Standard and reported sus-
pected incidents of misconduct can be found in the
The Company has defined, as persons discharging
managerial responsibilities, the members of the Board
and its secretary, the President and CEO, as well as the
members of the Neste Leadership Team and its secre-
tary. These managerial persons and their closely asso-
ciated persons must report their own transactions con-
ducted with the Company’s financial instruments or
financial derivatives to the Company and the Financial
Supervisory Authority without delay, and no more than
three business days of completing the business transac-
tion. Reports to the Company and the Financial Supervi-
sory Authority can be made by following the instructions
on neste.com/trading.
The Company has also named certain other persons
as core persons, as they have better or more informa-
tion about the Company than the market. These indi-
viduals are typically those who prepare the Compa-
ny’s Interim reports and Financial statements, persons
responsible for the Company’s finances, financial report-
ing or communication, or persons who have access to
said information, as well as certain individuals in execu-
tive positions.
Persons discharging managerial responsibilities and
core persons may not trade with or conduct business
with the Company’s financial instruments for themselves
or a third party, directly or indirectly during the period
from the closing date of an interim or annual accounting
period to the date of publication of the interim report or
financial statements for that period. The minimum period
concerned is always 30 days prior to the date of publi-
cation of the interim report or the financial statements,
including the date of publication (“closed window”).
The Company also maintains a project- or event-spe-
cific list of insiders for all individuals that have access to
insider information and who are employed by the Com-
pany or otherwise perform tasks that provide them with
access to insider information. Individuals who participate
in the development and preparation of projects or
events that involve insider information, such as mergers
and acquisitions, are considered project- or event-spe-
cific insiders. Project-specific insiders may not trade or
conduct other business using the Company’s financial
instruments during the project.
Related party transactions
Neste has identified its related parties, and it is regu-
larly engaged in transactions with some of these parties.
These transactions relate to the Company’s normal busi-
ness operations and are in line with the purpose of the
company and executed on market or market equivalent
terms and practices generally observed and accepted
within the industry in question.
The related party transactions are monitored in coop-
eration with finance and legal functions as a part of the
Company’s normal reporting and control procedures.
The Board is responsible for overseeing the processes
established for monitoring related party transactions.
Information about material transactions concluded
between the Company and its related parties is dis-
closed annually in the notes on the Company’s consol-
idated financial statements. When required under the
applicable laws and regulations, material transactions
conducted with related parties are also published via a
stock exchange release.
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Corporate Governance Statement Risk management Remuneration report
system containing the formal Code of Conduct are the
foundation of the control environment. The President
and CEO and corporate management are responsible
for emphasizing the importance of ethical principles and
correct financial and sustainability reporting.
Risk assessment
As a prerequisite for risk assessment, the organization’s
objectives need to be established.
With respect to financial reporting, the general objec-
tive is to have reliable reporting and ensure that trans-
actions are recorded and reported completely and cor-
rectly. The assessment of risk includes risks related to
fraud.
With the inclusion of the statutory sustainability report-
ing in the 2024 statements, additional risks and con-
trols have been identified by the Double Materiality
assessment.
More information about risk management principles is
available in the Risk management section of the Annual
Report.
Control activities
Neste control activities include instructions, guidelines
and procedures to ensure that the actions identified by
management to address the relevant risks are carried
out effectively. The most important guidelines related to
financial and sustainability reporting systems and prac-
tices are documented in the Neste Corporate Gover-
nance Policy, Neste Internal Control Principle, Access
Risk Management Principle, the Controls over Financial
and Sustainability Reporting Standard (COFR), Internal
Control Process Standard, process charts, month end
workflows and detailed Finance Instructions.
Key control activities are documented in a global con-
trol catalog covering each business or financial process.
Group-level policies and guidelines are documented in
the Neste Management System. The control catalog is
maintained in SAP GRC, the platform used for internal
control management.
Internal controls
The objective of internal controls at Neste is to provide
reasonable assurance concerning the reliability of the
financial and sustainability reporting.
Additionally, internal controls support the business in
the achievement of its operational and strategic objec-
tives by acting as performance accelerators in business
processes.
The system of internal controls at Neste is based on
the Committee of Sponsoring Organizations framework
(the “COSO framework,” 2013).
Neste’s internal control requirements are defined in
the Neste Internal Control Principle, Access Risk Man-
agement Principle and related standards.
Neste Internal Control function leads the Group-wide
control development and monitors the internal controls
throughout Neste. The Internal Controls function pro-
vides the necessary guidance for designing and per-
forming the controls effectively.
Control environment
The Board is responsible for ensuring that there is
adequate control over the Company’s accounts and
finances. Responsibility for arranging this control is del-
egated to the President and CEO, who is required to
ensure that the Company’s accounts are in compliance
with the law, and that its financial management has been
reliably arranged.
The internal control at Neste is based on the corpo-
rate structure, whereby the operations are organized
into organizational units. The heads of business areas
and the finance function are responsible for establishing
and maintaining appropriate, up-to-date, effective and
adequate controls of financial and sustainability report-
ing. Operational management owns the risks and con-
trols and is responsible for ensuring controls and defi-
ciency-related corrective actions are implemented.
The Internal Control Principle emphasizes the impor-
tance of internal controls and clarifies the responsibilities
of the Three Lines for establishing effective controls in
business processes. Neste’s values and management
Information and communication
Neste corporate-level communication practices sup-
port the completeness and correctness of financial and
sustainability reporting. Neste personnel have access
to adequate information and communication regard-
ing accounting and reporting principles and control
guidelines, including clarity on control responsibility and
accountability. Sustainability reporting requirements
and processes are communicated to the personnel,
with emphasis to data correctness. The main means
of communicating the relevant matters for appropriate
financial and sustainability reporting consist of internal
control training, detailed Finance Instructions contain-
ing accounting principles, sustainability manuals, guide-
lines for forecasting and reporting, information sessions,
on-the-job training, process walkthroughs, and postings
on internal channels and pages.
Neste business areas prepare regular financial and
management reports for the management review, includ-
ing analysis of and comments on financial performance.
The Neste Leadership Team and the Board receive
financial reports monthly. Interim reports, Financial state-
ments and the Sustainability statement are reviewed at
Audit Committee meetings, and thereafter by the Board.
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Corporate Governance Statement Risk management Remuneration report
Training and communication
Neste personnel have access to
adequate information regarding
accounting and reporting
principles and control guidelines.
Remediation
Implementation of
management actions
to strengthen the
control environment.
Scope
Defined based on
Strategy, Regulatory
requirements and Risk
assessment.
Monitoring, testing
and reporting
Management uses
various approaches
such as Continuous
Control Monitoring,
separate Internal
Control assessments,
management testing, etc.
The findings are reported
to relevant stakeholders.
Control development
Define and enhance
the controls. Increase
control automation and
continuous monitoring.
Internal
Control activity
Focus on controls over nancial and
sustainability reporting and prevention
of fraud and nancial losses
Building effective Internal Control is an ongoing process
driven by strategy and control objectives
Monitoring
The Audit Committee oversees the Company’s finances,
financial reporting, statutory sustainability reporting, risk
management, as well as the Internal Control and Inter-
nal Audit functions, as part of the Company’s corporate
governance. Internal control deficiencies are communi-
cated in a timely manner to those parties responsible for
taking corrective action, and to management and the
Board’s Audit Committee as appropriate.
The Internal Control function acts on behalf of the
stakeholders to monitor the performance and assess
the adequacy of the controls. Results are reported reg-
ularly to the Neste Leadership Team.
Corporate Internal Audit assesses the operational
model and practices of internal control over Neste’s
financial and sustainability reporting as part of business
and process-level audits.
2024
In 2024, the Internal Control function further com-
pleted the control framework by developing addi-
tional controls for ongoing key ERP programs for
Marketing & Services and RP Investments. Inter-
nal Control also designed new ESG controls and
amended underlying policy documents, such as
Controls over Financial and Sustainability Stan-
dard, in response to sustainability reporting require-
ments laid out by the EU Corporate Sustainability
Reporting Directive (CSRD). Data governance pol-
icies, processes, and controls have been devel-
oped to support CSRD reporting.
In 2025, Internal Control plans to focus on con-
trol effectiveness testing and strengthening the
culture of controls. Following a 2019–2024 devel-
opment focused program, the internal control
roadmap now aims to maintain the quality of the
controls and a healthy control environment. Key
development areas relate to production materials
and inventories, fit-for-purpose subsidiary controls,
and supporting additional CSRD requirements.
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Performance Management Process
Neste’s Performance Management Process plays an
essential role in helping the Group attain its strategic
goals and reinforcing its performance-driven mindset.
Neste has taken a step change in developing its perfor-
mance leadership into a more agile model supporting
daily operations.
Performance management comprises daily leader-
ship, through which individuals, teams, units and the
Company can achieve selected strategic priorities and
develop organizational capability. Performance leader-
ship is used to ensure that everyone knows the values
and objectives of the Company, and their short- and
long-term objectives, and what kind of competence is
needed and developed to achieve these objectives.
Individual and team goals are based on Neste’s strat-
egy and way of working. There is a clear link between
wellbeing at work and good leadership performance.
The key elements in the Neste daily performance lead-
ership approach are:
• setting challenging goals and following them through;
• supporting the achievement of goals with regular
feedback;
• evaluating one’s own performance and results;
• developing ways of working and taking responsibility
for one’s own competence development; and
• holding regular personal development discussions
and check-in discussions that support day-to-day
work.
From a financial outlook and reporting perspective, the
Neste Performance Management Process consists of
long-term financial projections based on the strategy
and planning and forecasting in a midterm. During the
year, performance is evaluated in weekly and monthly
Management Reporting and in the Monthly and Quar-
terly performance reviews.
Financials and KPI-related information is evaluated
against the strategic goals and business plans, and
required actions are steered and followed throughout
the year.
Leading performance in daily work
Target setting discussion
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Strategy
Value
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Value creation
Results Wellbeing
at work
Renewal
Performance Management Process
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Corporate Governance Statement Risk management Remuneration report
Risk management objectives and scope
Neste recognizes risk management as an integral part of
sound management practice and an essential element
of good corporate governance. As an element of uncer-
tainty (opportunity or threat), risk is an inevitable compo-
nent of running the business. Systematic risk manage-
ment practices are the means to ensure that Neste is
successful in achieving the set strategic goals and busi-
ness objectives and can maintain continuous operations
in a changing business environment. Neste’s risk man-
agement practices can be characterized by the follow-
ing statements:
• The company emphasizes a risk aware culture and
proactive management of risks;
• Risk management is a continuous process that is
subject to improvement to reflect changes in the
external and internal environment;
• The purpose of risk management is to analyze
and manage all opportunities and threats the
company may encounter. By exploiting opportunities
and reducing threats, Neste gains a competitive
advantage;
• Risks are managed as an integrated part of planning,
decision making, and operational processes with a
defined structure of roles and responsibilities; and
• The sufficiency of risk treatment actions and controls
is monitored systematically.
Risk management framework
and principles
Framework and principles for risk management have
been defined in the Neste Corporate Risk Management
policy, which has been approved by the Board of Direc-
tors. The policy is supplemented by risk management
principles, guidelines and instructions for specific risk
disciplines. Neste’s risk management framework and
processes are aligned with the internationally recognized
best practices for risk management (COSO: Enterprise
Risk Management – Integrating with Strategy and Per-
formance; and ISO 31000 standard).
In Neste’s risk model, risks are classified as external,
strategic and preventable risks that are more operational
in nature.
• External risks are exposures that Neste cannot
fully influence or control. The main risk classes are
changes in the external environment and risks in the
extended enterprise;
• Strategic risks relate to strategic choices,
strategy implementation and risks in the planning
and execution of major projects (e.g., refinery
turnarounds). Strategic risks are not inherently
undesirable, as they typically contain both upside
and downside risk potential; and
• The third category of risks, preventable risks,
consists of various risk classes that arise within the
organization and are mostly controllable. In general,
Neste does not gain strategic benefits from taking
these risks.
Risk management
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President and CEO and
Neste Leadership Team
1st Line of Defense
Ownership for risk taking
and risk treatment
2nd Line of Defense
Risk management support, facilitation,
and consultation
3rd Line of Defense
Independent assurance
Risk governance
Board of Directors
Audit Committee
Ethics and Compliance
Committee, CFO
Internal
Control
CRO
Risk
management
Compliance Internal Audit
Risk champions
Functions
Business Areas
Risk governance
The Neste Board of Directors has the ultimate account-
ability for risk oversight. Among other duties, the Board
is in this role responsible for setting the Group’s risk
appetite and for approving the Corporate Risk Manage-
ment Policy. The practical implementation, development
and monitoring of risk management processes is based
on the three lines of defense model. The model distin-
guishes between:
1st line of defense
The first line of defense is responsible for setting the objec-
tives, managing day-to-day performance and reinforcing
risk responses to achieve the set targets. At Neste, the
first-line actors include Business Areas and Functions in
their first-line roles. As a part of the first line of defense,
Neste’s President and CEO and the Neste Leadership
Team have the overall accountability for appropriate risk
management practices.
In practice, Business Areas and Functions own and
manage risks with the help of a dedicated network of
risk champions and coordinators. The role of the risk
champions/coordinators is to represent different risk dis-
ciplines and to ensure that risk discussions are embed-
ded in everyday management routines.
2nd line of defense
The role of the actors in the second line of defense is to
provide guidance, support, facilitation and consultation
for risk management. The second line of defense needs
to have some degree of independence from the first line
of defense to be able to challenge the first line in man-
aging performance and making risk-informed decisions.
At Neste, the second line of defense includes Functions
in their second-line roles and specialist teams (corporate
risk management, compliance and internal controls).
The Chief Risk Officer (CRO) assisted by the corpo-
rate risk management team has the overall responsibil-
ity to confirm that risk management activities are car-
ried out consistently throughout Neste Group and all
risk classes. Corporate risk management also drives
the overall development of risk management practices
and tools. The team is supported by the network of risk
champions and coordinators. In addition, Neste has
established a separate Ethics and Compliance Com-
mittee that aims to increase management oversight of
compliance and ethics-related issues within the Group.
The Committee also ascertains the adequacy of mitiga-
tion actions in higher-risk compliance areas.
3rd line of defense
As an independent team, Internal Audit evaluates the
effectiveness and efficiency of the corporate-level risk
governance model and related risk management pro-
cesses, including the effectiveness of internal controls
and other risk treatment actions in the scope of each
audit. Internal Audit also provides recommendations for
improvement areas.
Risk reporting
Risk reporting aims for the transparent, consistent and
comprehensive communication of risk status in different
areas. As a result of risk reporting, the Company’s risk
profile can be compared with the defined risk appetite,
and it can be concluded whether additional risk treat-
ment actions are needed.
Communication regarding the most important risk
issues takes place along the strategic planning and per-
formance management cycle. Formal risk reporting is
directed to the Business Area and Function manage-
ment teams, the Neste Leadership Team, the Audit
Committee and the Board of Directors. The corporate
risk management team is responsible for aggregating
risk information for reporting to different internal and
external audiences.
Risk management focus in 2024
In 2024, special risk management initiatives focused on
strategic and external risks including scenario analysis
on potential market environment drivers. Likewise busi-
ness continuity management continued to be an area of
risk management focus. Risk management also played
an important role in implementation of Corporate Sus-
tainability Reporting Directive (CSRD) risk management
requirements and in enhanced cyber risk management
practices.
Risks related to Neste’s business
In the pursuit of its objectives and targets, Neste is
exposed to various risk factors that stem from the exter-
nal environment, internal decision making, operating
processes and systems in use. The most significant risk
factors relate to the areas mentioned below. Any one
of the risks, either singly or in the aggregate, may have
a material adverse effect on Neste’s business, financial
condition, operating results and future prospects.
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Risk type Risk level
External
Economic conditions Despite some easing of the macroeconomic outlook, incl. decline in the headline inflation, overall economic activity in Neste's key markets still falls short of full recovery, and growth expecta-
tions are low. Continued slowing economic growth could have an indirect impact on the demand for Neste’s products. Due to economic concerns, the energy market has already seen tem-
porary reductions in climate ambition and targets. Macroeconomic uncertainty has also slowed down the implementation of climate policies that would support demand for Neste’s solutions.
Geopolitics Oil and gas markets have remained volatile largely due to geopolitics. Geopolitical tensions such as the continuing war in Ukraine, conflicts in Middle Eastern countries, and other emerging
military or trade conflicts could have adverse effects on international trade and finance. If geopolitical tensions increase and lead to the imposition of additional or more comprehensive trade
restrictions, there could be a material adverse effect on Neste’s ability to access feedstocks, deliver products and complete investment projects. For example, US–China trade tensions could
increase volatility in the renewable feedstock and oil products markets.
Climate change Neste’s strategic ambition is to be the global leader in renewable and circular solutions. Growing pressure to combat climate change and reduce greenhouse gas emissions is therefore pri-
marily a positive driver for Neste’s business. However, political and societal focus on the low-carbon transition and the energy sector’s carbon footprint also creates risks. The indirect eco-
nomic and political consequences of climate change may contribute to the general uncertainty in the business environment and hence have an adverse effect on Neste’s business. Various
governments have been forced to consider the affordability and funding of the green energy transition. As a result the market has seen temporary reductions in climate ambition and targets.
It has also slowed down the implementation of the climate policies that support demand for Neste’s solutions. In addition, changes in carbon emission trading schemes or similar initiatives
at EU-, US- or individual Member-State-level may have a significant effect on Neste’s business.
Laws and regulation Changing regulation presents both an opportunity and a threat to Neste’s business. Neste’s business units mainly benefit from increased support for biofuels and renewable fuels (for exam-
ple, requirements related to renewable content in diesel and gasoline). However, changes in regulation, especially in the European Union and the United States, also create uncertainties, as
these may influence the speed at which the demand for renewable products develops, and new raw materials sources are brought into use. For renewable products, a significant source of
uncertainty is the fragmented regulation around the acceptability and use of waste and residue feedstock and incentives supporting domestic production, for example Clean Fuel Production
Credit in US.
Low to moderate risk level and potential impact on the execution of set targets and objectives.
Efficient risk mitigating actions and controls in place.
Moderate risk level and potential impact on the execution of set targets and objectives.
Limited risk mitigation possibilities, area of risk management focus.
Substantial risk level and potential impact on the execution of set targets and objectives.
Limited risk mitigation possibilities, area of risk management focus.
Risks related to Neste’s business
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Risk type Risk level
Strategic
Technology Neste’s competitive position in the selected key markets is good. Neste’s proprietary NEXBTL production technology is a proven technology for producing high-quality diesel and sustainable
aviation fuel from renewable raw materials. However, there is no assurance that this competitive position will continue as new players enter the market, and current competitors develop their
technologies or preferences, either customer or legislative, for clean mobility change. The more rapid than anticipated development of alternative feedstocks and production technologies
for liquid fuels, the evolution and adoption of engine technologies, and the introduction of alternative powertrains could increase competition for NEXBTL, which may decrease demand and
lower margins for Neste’s products. Furthermore, the demand for and margins of Neste’s products could be adversely affected by regulatory preferences for technologies or products that
compete with Neste’s.
Competition Increases in global renewable refining and co-processing capacity relative to growth in demand for the renewable products may have a material adverse effect on Neste. Staying ahead of
the competition requires continuous improvement, the ability to challenge current business models and a strong focus on innovations such as new production technologies and feedstock
platforms. Neste’s ability to source sustainable feedstocks at quantities sufficient for its production targets and at acceptable prices is vital to achieving its strategic objectives. If new com-
petitor capacities lead to supplies of renewable products exceeding demand, or if Neste’s renewable products become less competitive, it may reduce Neste’s refining margins for renewable
products.
Project risks Successful projects play a key role in Neste’s strategy deployment, operational development and the digitization of processes. Possible delays in growth projects or in the ramp-up of new
production facilities pose a risk to Neste. Significant delays in project planning or execution may also reduce operational efficiency or impair Neste’s ability to secure its competitive position
in the future.
Talent management Strong governance practices and the continued contributions of Neste’s senior management, personnel and partners are vital for the company’s success. Due to fierce competition for talent,
there is a risk that Neste may not be able to recruit and retain the highly skilled employees who are needed for strategy deployment and successful operations in the future.
Preventable
Business continuity The importance of business continuity management has been highlighted in the changing environment. Neste has continued with the design and implementation of strategic and operational
business continuity measures. At the company level, scenario work has also played an important role, e.g., in testing potential market environment drivers and resilience to various climate
change scenarios.
At the operational level, Neste’s business performance greatly depends on the continuous reliability of refining activities in Finland (Porvoo), Singapore and the Netherlands (Rotterdam). Any
shutdown of Neste’s operations, whether planned or unplanned, could have a material adverse effect on Neste’s business. In addition to the planned maintenance turnarounds, disruptions in
the supply of utilities or breakdown of critical machinery could cause unexpected shutdowns that would affect Neste’s ability to fulfill demand for end products. Likewise, interruptions in the
supply chain and logistics network are a risk for Neste. For example, the vessels owned, leased or chartered by Neste are subject to inherent risks, including the risks of maritime disaster,
damage to the environment, and loss of or damage to cargo and property. Such events may be caused by mechanical failure, human error, adverse weather conditions, warfare or piracy,
among other factors, in the areas where the vessels operate.
Neste is subject to operational risks common in the renewable fuel and oil industry and has insurance in place to reduce the financial impact of property damage, business interruption, and
maritime disasters. However, insurance does not cover all potential losses, and Neste could therefore be seriously harmed by operational catastrophes or deliberate sabotage.
Quality Neste’s products and services must continuously meet customer requirements related, e.g., to product quality and sustainability. Evolving customer requirements, with more complex sourc-
ing and logistics networks and production methods, increase the exposure to quality risks that need to be managed well to maintain the high-quality brand image. As risk mitigation, Neste
has implemented systematic quality management measures, both in its own operations and in partner networks.
Low to moderate risk level and potential impact on the execution of set targets and objectives.
Efficient risk mitigating actions and controls in place.
Moderate risk level and potential impact on the execution of set targets and objectives.
Limited risk mitigation possibilities, area of risk management focus.
Substantial risk level and potential impact on the execution of set targets and objectives.
Limited risk mitigation possibilities, area of risk management focus.
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Risk type Risk level
Preventable
Market risks Neste’s financial results are primarily affected by the price differential, or margin, between refined petroleum and renewable product prices; and the prices for the crude oil, different vegeta-
ble oils and other feedstock used. Historically, refining margins have been volatile, and they are likely to continue to be so in the future. The main factors that may affect the refining margins
include:
• Changes in the aggregate demand for and supply of raw materials and products;
• Changes in the demand for and supply of specific raw materials and products;
• Raw materials and product price fluctuations; and
• The evolution of worldwide refining capacity, and especially the development of refining capacity related to petroleum and renewable products similar to Neste’s.
In the renewable fuels market, fuel supply and demand are still balancing in the face of changing regulation, both on the feedstock and product side. Overall supportive trend for green transi-
tion has incentivized growth in renewables production capacity. At the same time, energy markets have seen a decrease in mandatory and voluntary demand. Stagnant demand growth has
continued to place pressure on renewable fuel prices in Europe. In the US, development of federal and state level biofuel programs is decisive for the renewables margin levels.
As a part of risk management, Neste uses derivative instruments to protect its position against fluctuations in commodity prices. Neste is exposed to foreign exchange risks because most
of the sales are denominated in US dollars, whereas operating expenses (except the purchase of raw materials) are recorded in euros. Neste limits the uncertainties related to changes in for-
eign exchange rates by hedging its currency risks in contracted and forecasted cash flows and balance sheet exposures. More information about market risks can be found in the Financial
statements Note 3 section of the Annual Report.
External compliance Neste’s refining operations and products are subject to extensive regulation (incl. environmental, health and safety, sustainability). General regulatory requirements in areas like commodity
trading and data protection have also contributed to the formalization of operating procedures. As Neste’s supply base has become more fragmented and diversified, and global supply
chains have expanded, there is an increased exposure to regulatory requirements, as well as business conduct and sustainability risks. It is critical that Neste stays at all times compliant with
various regulatory acts related to feedstock eligibility and product characteristics. Non-compliance with applicable regulation or external requirements would have both adverse financial and
reputational impact on Neste.
Counterparty
and credit risks
Counterparty risk arises from all business relationships where Neste is exposed to the counterparty’s failure to perform according to Neste’s requirements and contractual commitments.
The extent of counterparty risk has increased along the continued diversification of Neste’s supply base and customer segments. To manage the risk, Neste has implemented systematic
controls for counterparty screening and monitoring. Especially on the sales side, Neste is also exposed to credit risk, i.e., the potential failure of a counterparty to meet its contractual payment
obligations. Risk magnitude depends on the size of the exposure concerned and the counterparty’s creditworthiness, which is assessed systematically both during onboarding and during
the relationship.
Sustainability risks The most significant sustainability risks that relate to Neste’s own operations or to the extended enterprise have been reported in line with the requirements of the Sustainability statement as
a part of the Review by the Board of Directors.
Information
security and cyber
Neste's core business processes rely heavily on the secure and reliable operation of its information technology (IT) systems and the availability of critical data. While Neste leverages digitali-
zation and emerging technologies to enhance operational efficiency and innovation, it recognizes the evolving threat landscape posed by increasingly sophisticated cyberattacks, particularly
targeting the oil and gas sector.
Neste acknowledges that disruptions to its key IT systems, data breaches, violations of data privacy regulations, malicious cyberattacks or any other malicious attempts targeting operational
technology (OT) and industrial control systems (ICS) could significantly impact business operations, profitability, and reputation. Therefore, Neste is committed to implementing and maintaining
a robust cybersecurity program to ensure the confidentiality, integrity, and availability of its critical assets.
Low to moderate risk level and potential impact on the execution of set targets and objectives.
Efficient risk mitigating actions and controls in place.
Moderate risk level and potential impact on the execution of set targets and objectives.
Limited risk mitigation possibilities, area of risk management focus.
Substantial risk level and potential impact on the execution of set targets and objectives.
Limited risk mitigation possibilities, area of risk management focus.
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Dear Shareholder,
On behalf of Neste’s Personnel and Remuneration Com-
mittee (the “Committee”), I am pleased to present our
2024 Remuneration Report outlining the remuneration
of the members of the Board of Directors and the Pres-
ident and CEOs (the CEOs) for the financial year 2024
and describing how the Remuneration Policy approved
by the 2024 Annual General Meeting of Shareholders
(AGM) has been implemented in practice. This Remu-
neration Report has been prepared in accordance with
the Finnish Corporate Governance Code 2025, and the
requirements set forth in the Finnish Limited Liability
Companies Act, the Finnish Securities Markets Act and
the Decree of the Ministry of Finance. The report will be
presented at the 2025 AGM of Neste for an advisory
shareholder vote.
Our approach to remuneration
and link to sustainability
Our purpose as a Personnel and Remuneration Com-
mittee is to ensure that remuneration programs at Neste
reflect our longstanding remuneration principles of sup-
porting the business strategy, paying for performance
and thereby supporting Neste’s long-term financial suc-
cess, encouraging value-based behavior and individual
accountability, and paying competitively and fairly.
Based on our remuneration principles, we have
designed our remuneration policies, practices and pro-
cesses to ensure that we can compete and retain the
best talents in the diverse markets in which we operate.
We believe that our performance-based remuneration
programs, combined with selecting the right individuals
for key positions, targeted talent development, proactive
succession planning and appropriate market competi-
tive compensation, are key to our future success.
Neste’s safety culture has been developed system-
atically for several years, and the measures related to
the improvement in both process and personnel safety
Neste Personnel and
Remuneration Committee
Johanna Söderström
Chair of the Personnel and
Remuneration Committee
Committee members until 27 March 2024:
• Matti Kähkönen, Chair of the
Personnel and Remuneration Committee
• Nick Elmslie
• Heikki Malinen
• Johanna Söderström
Committee members from 27 March 2024:
• Nick Elmslie
• Pasi Laine
• Sari Mannonen
constitute at least 20% of the short-term incentives’
measures. Similarly, Neste’s commitment to our strate-
gic sustainability targets is also reflected in our long-term
incentives plan, in which 20% of measures are based on
our combined Greenhouse Gas impact.
Our remuneration structure aims to reinforce and sup-
port our key strategic target to deliver outstanding value
with renewable and circular solutions, which will support
sustainable long-term value creation for all stakehold-
ers. For our CEO, a significant proportion of remunera-
tion is derived from variable pay to ensure that there is
a strong alignment between sustainable value creation
for shareholders, company performance and compen-
sation. The Board of Directors sets the targets for both
short- and long-term incentives, and the variable pay-
outs are directly linked to both operational, ESG and
strategic measures.
Neste’s performance in 2024
In 2024, Neste faced significant changes in the markets
and operational challenges at refineries. The full-year
comparable EBITDA totaled EUR 1,252 million.
The main performance measure for the Performance
Share Plan (PSP) 2022–2024 was relative Total Share-
holder Return (relative TSR) of Neste shares compared
to the STOXX Europe 600 index between 2022 and
2024 (weight 80%). The Neste Total Shareholder Return
was compared to the index at the 1.5th percentile and
the result of this measure was 0%. The second perfor-
mance measure was combined Greenhouse Gas impact
(weight 20%). The result of this measure was 10%.
Application of the
Remuneration Policy in 2024
The remuneration for the Board of Directors and the
CEOs during the financial year 2024 was executed in
accordance with the 2024 Remuneration Policy. No devi-
ations from the Remuneration Policy have been made,
and no remuneration of the Board of Directors or the
CEOs has been reclaimed or restated during the finan-
cial year 2024.
Advisory Shareholder vote regarding
the Remuneration Report 2023 and
shareholder engagement
At the Annual General meeting in 2024, 95.71% of the
Neste Shareholders supported the Neste Remunera-
tion Report 2023. We are thankful for the shareholders’
support and feedback based on which we develop the
report further.
Personnel and Remuneration Committee’s
focus areas in 2024
During 2024, the Personnel and Remuneration Com-
mittee of Neste focused on the renewal of the long-
term incentive (LTI) plan to strengthen our pay for per-
formance approach and to ensure the competitiveness
and attractiveness as an employer in the international
markets where Neste operates. The CEO Matti Lehmus
stepped down and Heikki Malinen started as the CEO
in October 2024. The remuneration of the new and the
former CEO are in accordance with the Remuneration
Policy 2024 as adopted by shareholders at the Annual
General Meeting in 2024.
Johanna Söderström
Chair of the Personnel and
Remuneration Committee
Neste Remuneration Report 2024
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The Annual General Meeting decides on the remuneration for the members of the Board, based on the proposal of
the Shareholders’ Nomination Board, for one period at a time until the closure of the next AGM. On 27 March 2024,
the 2024 AGM confirmed the following annual fees for the members of the Board of Directors. 98.84% of the votes
cast were in favor of the proposal of the Shareholders’ Nomination Board.
Remuneration of the Board of Directors for the previous financial year
Annual fee, 40% of the annual fixed fee was paid in the form of Neste shares,
and 60% in cash
Chair 135,000 EUR per annum
Vice Chair 75,000 EUR per annum
Member 60,000 EUR per annum
Chair of Audit Committee
1)
75,000 EUR per annum
Meeting fees
Meeting held in the member’s home country 1,000 EUR
Meeting held in the same continent as the member’s home country 2,000 EUR
Meeting held outside the same continent as the member’s home country 3,000 EUR
1)
If he or she does not simultaneously act as Chair or Vice Chair of the Board
EUR Annual fee
1)
Meeting fees
2)
Total
Matti Kähkönen, Chair 135,000 23,000 158,000
Eeva Sipilä, Vice Chair
3)
75,000 27,000 102,000
John Abbott 60,000 33,000 93,000
Nick Elmslie 60,000 35,000 95,000
Just Jansz 60,000 29,000 89,000
Conrad Keijzer
4)
60,000 25,000 85,000
Pasi Laine
4)
60,000 19,000 79,000
Heikki Malinen
5)
15,000 14,000 29,000
Sari Mannonen
4)
60,000 23,000 83,000
Johanna Söderström 60,000 41,000 101,000
Kimmo Viertola
6)
- 4,000 4,000
1)
The total annual fee for the Board membership 2024–2025 was paid in May 2024, and 40% of the annual fee was paid in shares and
60% in cash. Neste has paid the transfer tax for share purchase, and it has been handled as taxable income for each member.
2)
Meeting fees based on attendance during 2024.
3)
Vice Chair and Member of the Board until 13 February 2025.
4)
Member of the Board since 27 March 2024.
5)
Member of the Board until 13 June 2024.
6)
Member of the Board until 27 March 2024.
Remuneration has been paid from the parent company.
Meeting fees were paid based on attendance, plus compensation for expenses in accordance with the Company’s
travel guidelines.
The meeting fee for meetings held over the telephone or through other means of data communication was paid
according to the fee payable for meetings held in each member’s home country. The meeting attendance fees include
meeting fees paid due to special tasks set by the Board of Directors, but not travel expenses.
Details of the shareholdings of the Board of Directors are shown on the web pages.
Remuneration paid to the members of the Board in 2024
The AGM 2024 decided that 40% of the fixed annual fee was to be paid in the form of shares, and 60% in cash. The
shares were purchased directly on behalf of the Board members within two weeks of the publication of the interim
report for the period 1 January to 31 March 2024 from the market at a price formed in public trading. The Company
has paid all costs and transfer tax related to the purchase of Company shares. The total cash part of the annual
Board fee for the Board membership period 2024–2025 were paid in May 2024. Meeting fees were paid during the
year after the meetings.
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Neste’s Board of Directors decides on the remuneration of the President and CEO based on the proposal by the
Board’s Personnel and Remuneration Committee. The available remuneration elements are defined in Neste’s Remu-
neration Policy and are aligned with market practices. The remuneration of the CEO consists of a fixed annual remu-
neration, including a base salary and fringe benefits, and variable remuneration, including short- and long-term incen-
tives plans and a supplementary pension.
Variable remuneration
The President and CEO’s short-term incentives, including the terms and conditions, are determined by Neste’s Board
of Directors. The Board of Directors annually sets and evaluates targets for the President and CEO. The maximum
short-term incentive for the current President and CEO was 120% in 2024.
The Board of Directors decides on and implements Neste’s long-term incentive plans and the earning opportunity
for the President and CEO. The purpose of these plans is to drive Neste’s long-term performance and success. The
incentive level for the current President and CEO may vary between 0–200% of annual fixed salary, based on Neste
performance and share price appreciation. The amount of reward is limited by a share price development-based pay
cap which in the ongoing plans is two times the share price which prevailed at the beginning of the plan period. If
Neste share price more than doubles during the plan, the exceeding value of the payable rewards will not be paid.
Supplementary pension
The supplementary pension of the current President and CEO is a defined contribution plan with an annual contribu-
tion of 20% of the fixed annual salary and a retirement age of 66 years.
Remuneration of the President and CEO in 2024
President and CEO’s total remuneration Paid in 2024 (EUR)
Heikki Malinen
(CEO role
since 15 October 2024)
Matti Lehmus
(CEO role
until 14 October 2024)
Fixed annual salary
1)
247,571 755,088
Short-term incentive plan
2)
- 501,125
Long-term incentive plan
3)
- 14,735
Supplementary pension
4)
51,194 118,916
Total 298,765 1,389,864
Proportion of fixed and variable remuneration
(supplementary pension excluded) Fixed 100%
Fixed 59%
Variable 41%
1)
Benefits and vacation pay included in the fixed remuneration.
2)
Based on the financial year 2023 performance. The maximum short-term incentive for Matti Lehmus was 80% in 2023 and 2024.
3)
LTI vested value paid in 2024 reflects the PSP 2021–2023 grant, which was allocated to Matti Lehmus in his previous position before
CEO role. The incentive level for Matti Lehmus in the President and CEO role varied between 0–120% of annual fixed salary, based on
performance and share price appreciation.
4)
The supplementary pension of the President and CEO Matti Lehmus was a defined contribution plan with an annual contribution of 16%
of the fixed annual salary and a retirement age of 62 years.
In respect of Matti Lehmus’ services as an Senior Advisor between 15 October and 15 November 2024 he received 81,901 EUR fixed
salary including benefits, 1,892 EUR STI (to be paid in year 2025) and 12,518 EUR supplementary pension payments. After this Matti
Lehmus received termination benefits in accordance with his contract 111,122 EUR fixed salary including benefits, 2,838 EUR STI (to
be paid in year 2025) and 18,776 EUR supplementary pension payments until the end of 2024. In 2025 Matti Lehmus will receive as
termination benefits in accordance with his contract 1,136,435 EUR which includes fixed salary including benefits, STI and LTI payment,
supplementary pension payment and a severance payment of six months salary.
Remuneration has been paid from the parent company.
The table below includes the taxable value of the remuneration:
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STI 2023,
paid in 2024
STI 2024,
to be paid in March 2025
Performance measure
Weight
in 2023
2023
Performance
outcome %
Threshold 50%
Target 100%
Maximum 200%
Weight
in 2024
2024
Performance
outcome %
Threshold 50%
Target 100%
Maximum 200%
Group comparable EBITDA 50% 112 - -
Renewable products
comparable EBITDA - - 30% 0
Oil Products comparable
EBITDA - - 20% 0
Free Cash Flow 20% 200 20% 0
Comparable ROACE 10% 169 10% 0
Group Safety (TRIF) 10% 70 10% 60
Group Process Safety
(PSER) 10% 167 10% 0
Total weighted outcome
1)
100% 136 100% 6
The maximum short-term incentive for the President and CEO is 120% in 2025. Details of the short-term incen-
tive plan 2025 measures for the President and CEO for 2025, potential reward payment in March 2026:
Performance measure Weight
Renewable products comparable EBITDA 35%
Oil Products comparable EBITDA 25%
Free Cash Flow 30%
Group Safety (TRIF) 5%
Group Process Safety (PSER) 5%
1)
With performance measure outcomes without rounding.
Short-term incentives
The incentive payment of 11,340 EUR will be paid in March 2025 for the current President and CEO Heikki Malinen
and 17,975 EUR for the former President and CEO Matti Lehmus for the CEO period in 2024.
Details of the short-term incentive plan measures for the current and former President and CEO:
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Long-term incentives
The current and former President and CEO are entitled to the following ongoing long-term incentive plans:
The former President and CEO Matti Lehmus is entitled to the Performance Share Plan PSP 2022-2024.
Performance
Share Plan Performance measure Weight
Performance
Measure
outcome %
Total weighted
Performance
outcome %
Grant
date
Number of
gross shares
granted
Number of
gross shares
vested
Vesting
date
PSP 2022–2024 Relative Total Shareholder Return (TSR) compared to the STOXX Europe 600 Index 80% 0%
2%
February
2022
26,400 528
March
2025
Combined Greenhouse Gas Impact 2022–2024 20% 10%
Performance
Share Plan Performance measure Weight
Grant date
for current
CEO
Number of
gross shares
granted for
current CEO
Grant date
for former
CEO
Number of gross shares
granted for former CEO
and prorated amount
until end date
Vesting
date
PSP 2023–2025 Relative Total Shareholder Return (TSR) compared to the STOXX Europe 600 Index 80%
October
2024
29,097
December
2022
23,600, prorated 18,683
March
2026
Combined Greenhouse Gas Impact 2023–2025 20%
PSP 2024–2026 Relative Total Shareholder Return (TSR) compared to the STOXX Europe 600 Index 80%
October
2024
54,038
February
2024
33,700, prorated 15,446
March
2027
Combined Greenhouse Gas Impact 2024–2026 20%
The President and CEO Heikki Malinen is also entitled to a one-time supplementary arrangement of 1,250,000 EUR payable in shares (Restricted Share Plan, vesting in October 2025) which was granted at hire in recognition of
forfeiting previous employer awards according to Neste Remuneration Policy. In determining the value of this award, the Board took due account of the structure, time horizons, value and performance targets of his forfeited
awards. The one-time award was granted in shares to create a link to company long-term share performance and encourage share ownership.
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Annual review Governance Review by the Board of Directors Financial statements
Corporate Governance Statement Risk management Remuneration report
Remuneration and company performance over the last five financial years
Average compensation, EUR 2020 2021 2022 2023 2024
Average compensation of Members of the Board
1)
44,386 51,368 72,512 63,191 83,455
President and CEO
(taxable value of the remuneration in each year)
Peter Vanacker
(In CEO role from 11/2018 until 4/2022) 1,804,816 2,046,357 704,465 - -
Matti Lehmus
(In CEO role from 5/2022 until 14 October 2024) - - 731,441 2,014,265 1,389,864
Heikki Malinen
(In CEO role from 15 October 2024) - - - - 298,765
Average compensation of Neste employee
2)
70,751
3)
77,529
4)
86,367
5)
88,551 84,539
Average compensation of Neste employee in Finland
2)
66,225
3)
72,478
4)
75,742
5)
76,965 73,775
Company performance
Comparable EBITDA (MEUR) 1,929 1,920 3,537 3,458 1,252
1)
Includes all fees paid to the members (annual board fees, meeting fees). The payment practice changed in 2022 and board fee was paid monthly until AGM and total annual board fee from board membership 2022–2023 was paid in May 2022.
2)
Includes all wages and salaries incl. incentive payments (STI based on 2024 accrual, LTI based on accounting value) without indirect employee costs (social security costs, pension costs, other costs) divided by the average number of
personnel during the year.
3)
Cost provision for personnel arrangements related to the Naantali refinery closure of EUR 22 million has been eliminated from wages and salaries before calculating the average.
4)
The unused amount of cost provision reversal for personnel arrangements related to the Naantali refinery closure of EUR 11 million has been eliminated from wages and salaries before calculating the average. The average compensation between
2019 and 2020 has increased partly due to the divestment of Neste operations in Russia in 2019 covering 1,133 employees, and between 2020 and 2021, due to personnel decreases related to the closure of the Naantali refinery. Simultaneously,
the strategic headcount increase has focused on white-collar and higher employee cost markets.
5)
The unused amount of cost provision reversal for personnel arrangements related to the Naantali refinery closure of EUR 500,000 was eliminated from wages and salaries before calculating the average. The average compensation has increased,
partly due to a strategic headcount increase in higher employee cost markets. Simultaneously, the short-term incentive provision is higher than in the previous year.
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Review by the
Board of Directors
Review by the Board of Directors 91
Sustainability statement 100
Key gures 150
Calculation of key gures 152
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Review by the Board of Directors 2024
The year 2024 was marked by geopolitical, economic and regulatory uncertainty. For Neste, the year was particularly challenging.
We faced significant changes in the markets of both Renewable Products and Oil Products and several operational challenges at
our refineries. Our 2024 full-year comparable EBITDA totaled EUR 1,252 (3,458) million. This level is not satisfactory, nor sustainable.
In Renewable Products, numerous new competitors and increased capacity entered the markets during 2024. While there are
regional differences, this global overcapacity resulted in a decline in renewable fuel sales prices and intensified demand for waste
and residue raw materials. In addition, the weakening fossil diesel price had a further negative impact on the Renewable Products’
sales prices. Consequently, sales margins fell significantly below previous years’ levels. Our full-year comparable sales margin was
USD 377 (863)/ton and segment’s comparable EBITDA EUR 514 (1,906) million. Our sales volumes in Renewable Products was 3.7
(3.4) million tons, increasing in the second half of the year, but falling below the level we had planned in the beginning of the year. The
share of waste and residue feedstocks remained high throughout the year and averaged 90% (92%) of our total renewable material
inputs in 2024.
As we have communicated, our renewable refineries faced operational challenges in 2024. We have tackled these, but they had
a negative impact on renewable diesel production and sales especially in the fourth quarter. On a positive note, sustainable aviation
fuel (SAF) sales increased in the final quarter of 2024.
In Oil Products, the product margins normalized from the high levels of 2023 and the full-year total refining margin decreased to
USD 14.1 (21.1)/bbl. Oil Products’ full-year comparable EBITDA was EUR 633 (1,434) million which was also affected by decreased
sales volumes in the second quarter due to the Porvoo major turnaround. The average refinery utilization rate of the Porvoo refinery
was 76% (88%) in 2024.
In 2024, we progressed with our strategic growth investment project in Rotterdam. However, due to the challenging contractor
market, the scheduled start of commercial operations has been delayed from 2026 to 2027. At the same time, the investment cost is
estimated to increase from EUR 1.9 billion to EUR 2.5 billion. We have taken action to ensure that from now on the project proceeds
on-schedule and on-budget. We maintain strict capital discipline throughout the company and in the coming few years, our capital
expenditure beyond the Rotterdam investment is expected to be on an annual level of approximately EUR 0.5 billion with focus on
safety and reliability investments.
In Neste’s current situation, it is obvious that a change of direction is needed. Shortly after Heikki Malinen took over as CEO, we
launched a group-wide, comprehensive full potential analysis. This work has now been completed and we have today launched
a performance improvement program. The goal is to enhance Neste’s financial performance while securing our strong market
position with better cost competitiveness in renewable fuels. There is no single silver bullet to improve our financial and operative
performance. Instead, we need to take steps on many fronts and this work has already started. The planned efficiency measures
have personnel impacts and are thus especially difficult for our employees, but at the same time necessary to ensure Neste’s long-
term competitiveness and success.
In line with changes in our operating environment and financial performance, we have updated our financial targets for 2025–2026
to reflect the actions required to respond to this. Firstly, we are targeting EUR 350 million EBITDA run rate improvement by the end
of 2026 from our performance improvement program, of which EUR 250 million from operational costs. Secondly, we are committed
to maintaining our investment grade credit rating and leverage below 40%.
As we look towards the future, the fundamental need to tackle climate change is stronger than ever as 2024 was characterized
by record high temperatures globally. To reduce global CO
2
emissions, readily available solutions that can also decarbonize hard to
abate sectors like aviation, are needed. Neste has a leading role in this: we have an established position in renewable diesel and
we are also well positioned in SAF, thanks to our world-leading renewables platform and the needed competences in, for example,
technology, pre-treatment and feedstocks. Going forward, we plan to focus more clearly on fuels, the products that have been at
the core of our company for decades.
All in all, 2024 was a tough year in many ways from market changes to trade policy developments. In 2025, the renewables market
continues to be challenging and we cannot expect a return to previous years’ exceptional margin levels. Regulation continues to
create uncertainties, e.g. in the US, and we need to fight for a level playing field, e.g. in the EU versus imports from China and US
(SAF). However, we are confident that with a determined approach we can and we will reverse the current trend in our financial
performance and maintain our investment grade credit rating, fund the critical investments in running projects and ensure Neste will
be successful in the future.
The Board has today proposed a dividend payout of 0.20 euros (1.20) per share for the year 2024 to the Annual General Meeting.
Figures in parentheses refer to the financial statements for 2023, unless otherwise noted.
The Group’s results for 2024
Neste’s full-year 2024 revenue totaled EUR 20,635 (22,926) million. Revenue decreased mainly due to lower market and sales
prices, which had a negative impact of approximately EUR -1.6 billion. Renewable Products’ sales volumes increased year-over-
year, but group sales volumes had a negative impact of approximately EUR -1.4 billion in revenue mainly due to the Oil Products’
major turnaround in Porvoo in Q2/2024. The increasing trading volumes, mainly in Oil Products, had a positive impact on the revenue
by approximately EUR 0.7 billion. The exchange rate effect was minimal for full-year results.
The Group’s comparable EBITDA was EUR 1,252 (3,458) million. Renewable Products’ comparable EBITDA was EUR 514 (1,906)
million, mostly affected by the weak market environment. The sales margin had a negative impact of EUR 1,483 million while higher
sales volume impacted the result positively. Oil Products’ full-year comparable EBITDA was EUR 633 (1,434) million, affected mostly
by the Porvoo major turnaround and a lower total refining margin. Marketing & Services’ comparable EBITDA was EUR 101 (118)
million. Others’ comparable EBITDA was EUR -1 (-2) million. The Group’s fixed costs were EUR 1,312 (1,329) million, EUR 16 million
below last year.
The Group’s EBITDA was EUR 1,005 (2,548) million, which was affected by inventory valuation losses of EUR -359 (-827) million
and changes in the fair value of open commodity and currency derivatives totaling EUR 84 (-98) million. Profit before income taxes
was EUR -113 (1,596) million and net profit EUR -95 (1,436) million. Comparable earnings per share were EUR 0.17 (2.88) and
earnings per share EUR -0.12 (1.87).
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2024 2023
Comparable EBITDA 1,252 3,458
- inventory valuation gains/losses -359 -827
- changes in the fair value of open commodity and currency derivatives 84 -98
- capital gains/losses -2 7
- other adjustments 29 8
EBITDA 1,005 2,548
Revenue 2024 2023
Renewable Products 7,321 8,466
Oil Products 11,829 13,285
Marketing & Services 4,687 5,168
Others 125 100
Eliminations -3,326 -4,094
Total 20,635 22,926
Comparable EBITDA 2024 2023
Renewable Products 514 1,906
Oil Products 633 1,434
Marketing & Services 101 118
Others -1 -2
Eliminations 6 2
Total 1,252 3,458
Operating profit 2024 2023
Renewable Products -347 568
Oil Products 345 1,068
Marketing & Services 72 84
Others -51 -41
Eliminations 6 2
Total 25 1,682
Group key figures, MEUR
Financial targets
Neste’s key financial targets in 2024 were Comparable return on average capital employed after tax (Comparable ROACE) and
leverage ratio. At the end of December, Comparable ROACE calculated over the last 12 months was below the target level (over
15%) at 2.5%, but leverage ratio remained within the target area (below 40%) at 36.1%.
Cash flow, investments, and financing
The Group’s net cash generated from operating activities totaled EUR 1,183 (2,279) million during 2024. The change compared to
last year mainly resulted from decreased EBITDA while net working capital change released cash in 2024. Cash flow before financing
activities was EUR -313 (751) million during 2024 and the Group’s net working capital in days outstanding was 39.4 days (41.0 days)
on a rolling 12-month basis at the end of the fourth quarter.
31 Dec 2024 31 Dec 2023
Comparable return on average capital employed after tax
(Comparable ROACE), % 2.5 23.9
Leverage ratio (net debt to capital), % 36.1 22.7
2024 2023
EBITDA 1,005 2,548
Capital gains/losses 1 0
Other adjustments -150 108
Change in net working capital 454 21
Finance cost, net -122 -91
Income taxes paid -5 -307
Net cash generated from operating activities 1,183 2,279
Capital expenditure -1,563 -1,607
Other investing activities 67 79
Free cash flow (Cash flow before financing activities) -313 751
Cash-out investments totaled EUR 1,566 (1,621) million and were EUR 1,552 (1,431) million excluding M&A in 2024. The Porvoo
major turnaround is reflected in the increased maintenance investments that accounted for EUR 579 (305) million. Productivity and
strategic investments totaled for EUR 987 (1,316) million. According to Neste’s strategy, significant growth investments continued
into Renewable Products where investments amounted to EUR 1,012 (1,365) million. Oil Products’ investments amounted to EUR
466 (208) million and Marketing & Services’ investments totaled EUR 27 (16) million. Investments in Others were EUR 61 (32) million,
consisting mainly of IT and business infrastructure upgrades.
Neste signed several bilateral green loan agreements in 2024, altogether EUR 550 million. IFRS 16 lease liabilities also increased by
EUR 420 million.
Interest-bearing net debt was EUR 4,192 million at the end of December 2024, compared to EUR 2,488 million at the end of 2023.
The average interest rate of borrowing at the end of December was 3.3% (3.6%) and the average maturity was 4.1 (5.1) years. At the
end of the fourth quarter, the Net debt to EBITDA ratio was 4.2 (1.0) over the last 12 months. The leverage ratio was 36.1% (22.7%)
at the end of December.
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US dollar exchange rate 2024 2023
EUR/USD, market rate 1.08 1.08
EUR/USD, effective rate 1.09 1.06
Key financials 2024 2023
Revenue, MEUR 7,321 8,466
EBITDA, MEUR 242 1,049
Comparable EBITDA, MEUR 514 1,906
Operating profit, MEUR -347 568
Net assets, MEUR 9,064 8,069
Return on net assets, % -4.0 7.5
Comparable return on net assets, % -0.9 18.9
Comparable sales margin, USD/ton 377 863
Key drivers 2024 2023
Biomass-based diesel (D4) RIN, USD/gal 0.59 1.35
California LCFS Credit, USD/ton 60 73
Palm oil price
1)
, USD/ton 902 833
Waste and residues’ share of total feedstock, % 90 92
1)
CPO BMD 3rd, Crude Palm Oil Bursa Malaysia Derivatives 3rd month futures price
Segment reviews
Neste’s businesses are grouped into three reporting segments: Renewable Products, Oil Products and Marketing & Services.
Renewable Products
The Group’s liquid funds and committed, unutilized credit facilities amounted to EUR 2,880 (3,480) million at the end of December.
There are no financial covenants in the Group companies’ existing loan agreements.
In accordance with its hedging policy, Neste hedges a large part of its net foreign currency exposure for the next 12 months, mainly
by using forward contracts and currency options. The most important hedged currency is the US dollar. At the end of December, the
Group’s foreign currency hedging ratio was approximately 51% of the sales margin for the next 12 months.
Renewable Products’ full-year comparable EBITDA was EUR 514 (1,906) million. The comparable sales margin was lower than in
2023 and reached USD 377 (863)/ton. The lower sales margin had a negative impact of EUR -1,483 million on the comparable
EBITDA year-on-year. The BTC contribution was EUR 590 (417) million during 2024. The BTC expired at the end of 2024.
During the year, there were both planned and unplanned shutdowns in our refineries. This is reflected in the utilization rate, which
was on average 65% (98%) at Neste’s own renewables production facilities. The Singapore expansion and Martinez ramp-up were
completed. Martinez continued to have a diluting impact on Neste’s overall comparable sales margin.
Sales volumes increased and had an impact of EUR 94 million year-over-year. The US dollar exchange rate had a negative impact
of EUR -6 million on the segment’s comparable EBITDA compared to the previous year. The segment’s fixed costs were EUR 7 million
higher than in 2023. Renewable Products’ comparable return on net assets was -0.9% (18.9%) at the end of December based on
the previous 12 months. During the year approximately 51% (61%) of the volumes were sold to the European market and 49% (39%)
to North America. The share of waste and residue inputs was 90% (92%) of our total renewable material inputs in 2024.
Overall, for waste and residue feedstocks in 2024, the US continued to attract import flows from other regions and impact pricing
globally. In the first quarter, strong supply and weak demand led to lower waste and residue prices in the US. Then prices adjusted
and found support against vegetable oils. During the second half, waste and residue as well as soybean oil prices initially increased,
but soon came down due to strong US soybean crop expectations and a generally weak global market sentiment. Towards the end
of the year, lower supply increased vegetable oil prices and this pulled waste and residue prices higher as well.
In Europe, German THG (greenhouse gas reduction quota) ticket carryover freeze and EU anti-dumping duties against Chinese
biodiesel and HVO had a positive impact on markets. In the US, market activity was negatively affected by the delayed CFPC policy
guidance causing uncertainty. Positive for the Californian Low Carbon Fuel Standard (LCFS) price was that an overhaul to the
program got approved. Renewable Identification Number (RIN) D4 market weakened early in 2024 due to strong credit generation
and lack of buying interest but then steadily recovered and ended the year at approximately 0.6 USD/gal.
Key drivers affecting the comparable sales margin in Renewable Products include feedstock and middle distillate market prices,
the development of renewable diesel price premiums, bioticket and renewable credit price levels, SAF and Martinez sales volume
development as well as margin hedging.
Production 2024 2023
Renewable Diesel
1)
, 1,000 ton 2,981 3,267
SAF, 1,000 ton 526 251
Other products
2)
, 1,000 ton 87 101
Total 3,594 3,618
Utilization rate
3)
, own production, % 65 98
1)
Including production from Martinez joint operation.
2)
Calculation formula has been adjusted to exclude fuel gas.
3)
Based on a nameplate capacity of 4.5 Mton/a. Comparison periods of 2023 are based on nameplate capacity of 3.3 Mton/a.
Sales 2024 2023
Renewable Diesel, 1,000 ton 3,225 3,164
SAF, 1,000 ton 412 139
Other products, 1,000 ton 92 79
Total 3,729 3,382
Share of sales volumes to Europe, % 51 61
Share of sales volumes to North America, % 49 39
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Key financials 2024 2023
Revenue, MEUR 11,829 13,285
EBITDA, MEUR 667 1,375
Comparable EBITDA, MEUR 633 1,434
Operating profit, MEUR 345 1,068
Net assets, MEUR 2,300 2,384
Return on net assets, % 14.0 42.6
Comparable return on net assets, % 13.2 45.0
Total refining margin, USD/bbl 14.1 21.1
Production 2024 2023
Refinery
Production, 1,000 ton 9,652 11,148
Utilization rate, % 76 88
Refinery production costs, USD/bbl 6.7 6.6
Oil Products
Oil Products’ full-year comparable EBITDA was EUR 633 (1,434) million. The total refining margin averaged USD 14.1/bbl (21.1/
bbl) in 2024. The lower total refining margin had a negative impact of EUR -545 million on the comparable EBITDA compared to
the previous year. Sales volumes were lower year-over-year due to the Porvoo major turnaround in the second quarter. In total,
sales volumes had a negative impact of EUR -221 million on the full-year comparable EBITDA. Currency exchange rates decreased
the comparable EBITDA by EUR -3 million while the segment’s fixed costs were EUR 3 million lower than in 2023. Oil Products’
comparable return on net assets was 13.2% (45.0%) at the end of December over the previous 12 months. The average refinery
utilization rate of the Porvoo refinery was 76% (88%).
Crude oil prices were volatile during 2024, and Brent traded between USD 71/bbl and USD 93/bbl. During the first quarter,
the price increased supported by geopolitical tensions but the trend reversed. The price started to decrease during the second
and third quarter as the challenging macroeconomic environment and non-OPEC production growth impacted balances. Price
volatility reduced in the fourth quarter as markets were trying to balance between OPEC+ delaying decision to cancel voluntary
production cuts, still existing geopolitical risks and central banks cutting interest rates to support economic growth. The year ended at
USD 74/bbl.
Overall, European refining margins were volatile but on a normalizing trend after transitory strength in 2022-2023. Margins weakened
clearly during the second half of the year as global new refining capacity growth and refinery runs exceeded muted oil products
demand. On average, both diesel and gasoline cracks were still above their long-term averages in 2024. Key utility prices were lower
year-on-year and supported refining economics in Europe.
Sales from in-house production, by product category (1,000 t) 2024 % 2023 %
Middle distillates
1)
4,626 46 5,631 47
Light distillates
2)
3,877 38 4,430 37
Heavy fuel oil 1,079 11 1,321 11
Other products 565 6 503 5
Total 10,147 100 11,885 100
1)
Diesel, jet fuel, heating oil, low sulphur marine fuels
2)
Motor gasoline, gasoline components, LPG
Sales from in-house production, by market area (1,000 t) 2024 % 2023 %
Baltic Sea area
1)
6,606 65 6,976 59
Other Europe 2,401 24 3,110 26
North America 443 4 1,038 9
Other areas 697 7 762 6
Total 10,147 100 11,885 100
1)
Finland, Sweden, Estonia, Latvia, Lithuania, Poland, Denmark
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Sales volumes by main product categories, million liters 2024 2023
Gasoline, station sales 608 620
Diesel, station sales 1,549 1,590
Heating oil 842 793
Net sales by market area, MEUR 2024 2023
Finland 3,657 4,114
Baltic countries 1,030 1,054
Total 4,687 5,168
Others
Key financials 2024 2023
Comparable EBITDA, MEUR -1 -2
Operating profit, MEUR -51 -41
Others consists of common corporate and functional costs. The allocation timing of these costs to business segments may vary
year-over-year and by quarter. The full-year comparable EBITDA of Others totaled EUR -1 million (-2 million).
Marketing & Services
Key financials 2024 2023
Revenue, MEUR 4,687 5,168
EBITDA, MEUR 100 117
Comparable EBITDA, MEUR 101 118
Operating profit, MEUR 72 84
Net assets, MEUR 198 236
Return on net assets, % 30.9 34.6
Comparable return on net assets, % 31.4 35.2
Marketing & Services segment’s full-year comparable EBITDA was EUR 101 (118) million. A year-over-year decline in diesel market
demand and competitive market environment in Finland negatively affected sales volume, which had a negative impact of EUR -4
million on the comparable EBITDA. Average unit margins were lower, affecting the comparable EBITDA by EUR -9 million year-over-
year. The decline was primarily due to inventory losses from falling global oil prices throughout 2024. The segment’s fixed costs were
EUR 7 million higher compared to 2023, mainly due to ERP replacement project expenses. Marketing & Services’ comparable return
on net assets was 31.4% (35.2%) at the end of December on a rolling 12-month basis.
Marketing & Services continued its rollout of electric charging at its largest stations.
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Breakdown of share ownership as of 31 December 2024
By the number of shares owned
No. of shares
No. of
shareholders
% of
shareholders
Total no.
of shares
% of
shares
1–100 89,544 47.78 3,518,074 0.46
101–500 60,530 32.30 15,341,388 1.99
501–1,000 17,499 9.34 12,906,328 1.68
1,001–5,000 16,955 9.05 35,201,534 4.58
5,001–10,000 1,755 0.94 12,130,643 1.58
10,001–50,000 958 0.51 17,987,615 2.34
50,001–100,000 81 0.04 5,723,512 0.74
100,001–500,000 52 0.03 11,457,349 1.49
500,001+ 39 0.02 654,944,615 85.15
Total 187,413 100.00 769,211,058 100.00
of which nominee registered 11 0.00 228,182,638 29.67
By the owner sector % of shares
State of Finland 44.2
Non-Finnish shareholders 29.8
Households 11.2
General government 7.7
Financial and insurance companies 2.6
Corporations 2.8
Non-profit organizations 1.7
Total 100.0
Largest shareholders as of 31 December 2024
Shareholder Shares % of shares
Prime Minister's Office 340,107,618 44.22
Ilmarinen Mutual Pension Insurance Company 19,726,508 2.56
Varma Mutual Pension Insurance Company 11,551,622 1.50
Elo Mutual Pension Insurance Company 10,877,000 1.41
The Finnish Social Insurance Institution 6,100,272 0.79
Kurikan Kaupunki 4,652,625 0.60
The State Pension Fund 4,200,000 0.55
St1 Nordic Corporation 3,530,000 0.46
OP-Finland 2,011,737 0.26
Nordea Bank Abp 2,002,277 0.26
Danske Invest Finnish Equity Fund 1,893,256 0.25
Society of Swedish Literature in Finland 1,450,200 0.19
Seligson & Co OMX Helsinki 25 Exchange Traded Fund (ETF) 1,327,661 0.17
Nordea Pro Finland Fund 1,289,436 0.17
Nordea Fennia Fund 1,187,235 0.15
OP-Henkivakuutus Ltd. 1,153,109 0.15
Aktia Capital Mutual Fund 1,083,000 0.14
Nordea Nordic Fund 1,055,000 0.14
OP-Finland Index Fund 1,049,076 0.14
Säästöpankki Kotimaa Mutual Fund 1,038,625 0.14
20 largest shareholders total 417,286,257 54.25
Nominee registered 228,182,638 29.67
Other shares 123,742,163 16.09
Number of shares, Total 769,211,058 100.00
Shares, share trading, and ownership
Neste’s shares are listed at NASDAQ Helsinki Ltd. The share price closed the year at EUR 12.13 down by 62.34% compared to the
end of 2023. At its highest during the year, the share price reached EUR 33.60, while the lowest share price was EUR 10.98. Market
capitalization was EUR 9.3 billion as of 31 December 2024. An average of 1.77 million shares were traded daily, representing 0.2%
of the company’s shares.
At the end of December 2024, Neste held 995,324 treasury shares. Neste’s share capital registered with the Trade Register totaled
EUR 40 million, and the total number of shares was 769,211,058. The Board of Directors has authorizations to issue and buy back
shares, as decided by the AGM held on 27 March 2024.
As of 31 December 2024, the State of Finland owned directly 44.2% (44.2% at the end of 2023) of outstanding shares, foreign
institutions owned 29.8% (36.8%), Finnish institutions 14.8% (10.6%), and households 11.2% (8.4%) of outstanding shares.
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The AGM decided on the remuneration for participation in Board or committee meetings:
• EUR 1,000 for meetings held in the member’s home country;
• EUR 2,000 for meetings held in the same continent as the member’s home country; and
• EUR 3,000 for meetings held outside the same continent as the member’s home country.
• The meeting fee for meetings held over the telephone or through other means of data communication is paid according to the
fee payable for meetings held in the member’s home country.
• In addition, compensation for expenses is paid in accordance with the Company’s travel guidelines.
The AGM decided that a portion of 40% of the fixed annual fee would be paid in the form of shares and the remainder in cash.
Meeting fees would be paid in cash. The shares would be purchased directly on behalf of the Board members within two weeks as
of the first trading day of the Helsinki Stock Exchange following the publication of the interim report for the period 1 January to 31
March 2024. If the shares had not been purchased and/or delivered based on a reason pertaining to the Company or the Board
member, the fee would have been in cash in its entirety. The Company was responsible for any transfer tax potentially levied on the
purchase.
Company Auditor
In accordance with a proposal by the Board of Directors, KPMG Oy Ab, Authorized Public Accountants, was re-elected as
the company’s Auditor, with Authorized Public Accountant Leenakaisa Winberg as the principally responsible auditor for Neste
Corporation, until the end of the next AGM. Payment for their services shall be made in accordance with their invoice approved by
the Company.
Sustainability Reporting Assurer
In accordance with a proposal by the Board of Directors, KPMG Oy Ab, Authorized Sustainability Audit Firm, was elected as
the company’s Sustainability Reporting Assurer, with Authorized Public Accountant, Authorized Sustainability Auditor Leenakaisa
Winberg as the principally responsible sustainability reporting assurer for Neste Corporation, until the end of the next AGM. Payment
for their services shall be made in accordance with their invoice approved by the Company.
Authorizing the Board of Directors to decide the buyback of Company shares
The AGM approved the authorization, under which the Board is authorized to decide the purchase of and/or take as security a
maximum of 23,000,000 Company shares using the Company’s unrestricted equity. The number of shares shall be equivalent to
approximately 2.99% of the Company’s total shares.
Shares may be purchased in one or more lots. The purchase price shall be at least the lowest price paid for Company shares
in regulated trading at the time of purchase and no more than the highest price paid for Company shares in regulated trading at
the time of purchase. In connection with the buyback of Company shares, derivative, share lending, or other agreements that are
normal within the framework of capital markets may take place in accordance with legislative and regulatory requirements and at a
price determined by the market. The authorization shall allow the Board to decide to purchase shares otherwise than in proportion
to shareholders’ current holdings (directed buyback).
Shares so purchased can be used as consideration in possible acquisitions or in other arrangements that are part of the Company’s
business, to finance investments, as part of the Company’s incentive program, or be retained, conveyed, or canceled by the Company.
The Board of Directors shall decide the other terms related to the buyback of Company shares. The Buyback authorization shall
remain in force for eighteen (18) months from the decision taken by the AGM.
Corporate governance
Neste’s Corporate Governance Statement 2024 is issued separately from the Review by the Board of Directors. The Corporate
Governance Statement can be found, in addition to the Annual Report, at www.neste.com/investors/corporate-governance.
The control and management of Neste Corporation is divided between shareholders, the Board of Directors, and the President
and Chief Executive Officer (CEO). The General Meeting of Shareholders appoints the Board of Directors based on a proposal made
by the Shareholders’ Nomination Board. The term of office of the Board of Directors will expire at the end of the next Annual General
Meeting of Shareholders (AGM) following its election. Neste’s President and CEO is appointed and expelled by the Board of Directors.
Changes to the company’s Articles of Association can be made at the General Meeting of Shareholders based on a proposal by
the Board of Directors.
Neste Corporation’s Annual General Meeting (AGM) was held on 27 March 2024 at Messukeskus, the Helsinki Expo and Convention
Centre. The AGM supported all the proposals presented to the meeting and approved the remuneration report and the remuneration
policy. The AGM also approved the amendment of the Charter for the Shareholders’ Nomination Board resulting in, among other
things, that the composition of the Nomination Board will in the future be determined according to the votes produced by the share
ownership on the first banking day in June. The AGM adopted the company’s Financial Statements and Consolidated Financial
Statements for 2023 and discharged the Board of Directors and the President & CEO from liability for 2023.
Dividend payment
The AGM approved the Board of Directors’ proposal that a dividend of EUR 1.20 per share would be paid on the basis of the
approved balance sheet for 2023. It was decided to pay the dividend in two installments.
The first installment of the dividend, EUR 0.60 per share, was paid to shareholders registered in the shareholders’ register of the
Company maintained by Euroclear Finland Oy on the record date for the first installment of the dividend, which was 2 April 2024.
The first installment of the dividend was paid on 9 April 2024.
The second installment of the dividend, EUR 0.60 per share, was paid to shareholders registered in the shareholders’ register
of the Company maintained by Euroclear Finland Oy on the record date for the second installment of the dividend, which was 2
October 2024. The second installment of the dividend was paid on 9 October 2024.
Composition and remuneration of the Board of Directors
In accordance with the proposal made by the Shareholders’ Nomination Board, the AGM confirmed the number of members of the
Board of Directors at ten.
The AGM decided that the following were re-elected to serve until the end of the next AGM: Matti Kähkönen, John Abbott, Nick
Elmslie, Just Jansz, Heikki Malinen, Eeva Sipilä and Johanna Söderström. Conrad Keijzer, Pasi Laine and Sari Mannonen were
elected as new members.
Matti Kähkönen was re-elected as Chair and Eeva Sipilä was re-elected as Vice Chair.
The AGM decided on the remuneration to the Board for the term starting at the end of the 2024 AGM and ending at the end of
the 2025 AGM as follows:
• Chair: EUR 135,000;
• Vice Chair: EUR 75,000;
• Chair of Audit Committee: EUR 75,000 if he or she does not simultaneously act as Chair or Vice Chair of the Board; and
• Member: EUR 60,000.
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On 8 May, Neste announced that Katja Wodjereck, Executive Vice President, Renewable Products business unit and a member
of the Executive Committee since 1 April 2023 stepped down from her position as of 8 May and left the company to pursue other
opportunities. Carl Nyberg, Executive Vice President, Renewables Supply Chain and Sustainability and a member of the Executive
Committee since 2019, took the interim lead in the Renewable Products business in addition to his existing responsibilities.
On 14 May, Neste revised downwards its 2024 comparable sales margin guidance for Renewable Products. The rest of the
guidance for Renewable Products as well as the guidance for Oil Products remained unchanged.
On 7 June, Neste announced that the following members had been appointed to Neste’s Shareholders’ Nomination Board: Director
General Maija Strandberg of the Ownership Steering Department in the Prime Minister’s Office of Finland, as the Chair, and Senior
Vice President, Investments Timo Sallinen of Varma Mutual Pension Insurance Company and President and CEO Jouko Pölönen of
Ilmarinen Mutual Pension Insurance Company, as its members. Matti Kähkönen, the Chair of Neste’s Board of Directors, acts as an
expert to the Nomination Board.
On June 13, Neste announced that Heikki Malinen, a member of the Board of Directors of Neste Corporation, had announced his
resignation from the Board of the company as of 13 June. The reason for the resignation was his appointment as Neste’s President
and CEO as of 2 November 2024, at the latest. After Malinen’s resignation Neste’s Board comprised nine members.
On 2 September, Neste announced that Heikki Malinen would assume the role of Neste’s President and CEO on 15 October 2024.
He succeeds Matti Lehmus, who continued as the President and CEO of Neste until 14 October 2024 and acted as an advisor to
the company and its management until mid-November 2024 to ensure a smooth transition.
On 11 September, Neste revised downwards its 2024 comparable sales margin guidance for Renewable Products. Neste also
revised its Renewable Products’ total sales volume and SAF sales volume forecasts based on its latest sales outlook. Neste optimizes
its production capacity utilization in Renewable Products according to the market situation.
On 28 October, Neste appointed a new Leadership Team and Eeva Sipilä as CFO. The new Leadership Team was appointed in
order to improve operational efficiency and performance. Heikki Malinen, in addition to his President and CEO role, took the lead of
Neste’s Renewable Products business area. Markku Korvenranta continues in the Leadership Team and was appointed Executive
Vice President, Oil Products, and Chief Operating Officer (COO) of the company. Eeva Sipilä was appointed Chief Financial Officer
(CFO) and she joins Neste from Metso Corporation where she has served as CFO and Deputy CEO. She has been Vice Chair of the
Board of Neste since 2023 and Member of the Board since 2022. She will start at Neste no later than 1 May 2025. Until then Anssi
Tammilehto, Vice President, Investor Relations, will act as interim CFO. Hannele Jakosuo-Jansson continues in the Leadership Team
as Executive Vice President, People & Culture.
On 8 November, Neste changed its guidance due to an unplanned shutdown of Rotterdam refinery. Neste’s Rotterdam refinery
was shut down due to a fire on 8 November 2024. The fire did not cause any injuries. The Rotterdam refinery production was down
for several weeks impacting the renewable diesel customer deliveries. As a result, Neste changed its Renewable Products total sales
volume guidance for 2024.
On 18 December, Neste announced that the Shareholders’ Nomination Board had forwarded to the Board of Directors of the
Company its proposals to the 2025 AGM. The Nomination Board proposed that the Board should have eight members. The current
members John Abbott, Nick Elmslie, Just Jansz, Conrad Keijzer, Pasi Laine and Sari Mannonen were proposed to be re-elected
for a further term of office. The Nomination Board proposed that Anna Hyvönen and Essimari Kairisto should be elected as new
members. Matti Kähkönen, the Chair of Neste’s Board of Directors, is stepping down from his Board position as planned and will not
be available for re-election for the next term of office. The Nomination Board proposed that Pasi Laine should be elected as the Chair
and John Abbott as the Vice Chair of the Board. In addition to Matti Kähkönen, the current Board member Johanna Söderström has
informed that she will not be available for re-election for the next period of office. Eeva Sipilä will start as Neste’s CFO no later than
1 May 2025, and will resign from the company’s Board before the AGM.
Authorizing the Board of Directors to decide on share issue
The AGM approved the authorization, under which the Board is authorized to take one or more decisions on the issuance of new
shares and/or the conveyance of treasury shares held by the Company, provided that the number of shares thereby issued and/or
conveyed totals a maximum of 23,000,000 shares, equivalent to approximately 2.99% of all the Company’s shares.
The new shares may be issued and/or the treasury shares held by the Company may be conveyed to the Company’s shareholders
in proportion to the shares they already own or through a directed share issue that bypasses shareholders’ pre-emptive rights if the
Company has a weighty financial reason for doing so, such as using the shares in question as consideration in possible acquisitions
or in other arrangements that are part of the Company’s business, to finance investments, or as part of the Company’s incentive
program.
The new shares may be issued and/or the treasury shares held by the Company may be conveyed against payment or free of
charge. A directed share issue may only be made free of charge if there is a particularly weighty financial reason, in respect of the
Company’s interests and those of all of its shareholders, for doing so. The new shares may also be issued free of charge to the
Company itself.
The Board shall decide on other terms and conditions of share issue. The authorization shall remain in force for eighteen (18)
months from the decision taken by the AGM.
Amendment of the Articles of Association
The AGM approved the Board’s proposal to amend the Company’s Articles of Association as follows:
Due to new legislation concerning sustainability reporting assurer, a new Article 10 regarding sustainability reporting assurer was
added to the Articles of Association, and as a result, previous Articles 10 and 11 became Articles 11 and 12, correspondingly.
Further, the current Article 12 (previous Article 11) was amended so that to the items on the agenda of the AGM, a reference of the
fee of the sustainability reporting assurer was added (supplement to the current sub-item 8), and that a new reference to the election
of the sustainability reporting assurer was added at the end of the article (new sub-item 12).
Innovation
Neste’s innovation expenditure totaled EUR 86 (94) million in 2024. During the year, we increased our focus on supporting existing
businesses and enhancing their competitiveness. We prioritized research investments to advance chemical recycling and develop
innovative pretreatment technologies.
Main events published during 2024
On 31 January, Neste announced that the Shareholders’ Nomination Board had forwarded to the Board of Directors of the Company
its proposals to the 2024 AGM. The Nomination Board proposed that Matti Kähkönen be re-elected as the Chair of the Board of
Directors. In addition, the current members of the Board, John Abbott, Nick Elmslie, Just Jansz, Heikki Malinen, Eeva Sipilä and
Johanna Söderström were proposed to be re-elected for a further term of office. The Nomination Board proposed that Eeva Sipilä
should be re-elected as the Vice Chair of the Board. Further, the Nomination Board proposed that the Board should have ten
members and that Conrad Keijzer, Pasi Laine and Sari Mannonen should be elected as new members.
On 29 April, Neste announced that the Board of Directors of Neste Corporation and Matti Lehmus, President and CEO since May
2022, had reached a mutual agreement that Matti Lehmus will leave his position as the President and CEO. In order to secure an
orderly transition to the new President and CEO, Lehmus continued as President and CEO until his successor started.
On 2 May, Neste announced that the Board of Directors had appointed Heikki Malinen, M.Sc. (Econ.), MBA (Harvard) as the
President and CEO of Neste as of 2 November 2024, at the latest. Malinen joined Neste from Outokumpu Corporation where he had
held the position of President and CEO since 2020. Malinen was a member of the Board of Directors of Neste, from which position
he stepped down before assuming the duties of the President and CEO.
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For more detailed information on Neste’s risks and risk management, please refer to the Annual Report and the Notes to the
Financial Statement.
Sustainability risks
The Neste Corporate Risk Management Policy and supporting principles, requirements and processes also apply to sustainability
risks.
For more detailed information about Neste’s risks and risk management, please refer to Risk Management in the Annual Report’s
Governance chapter and the Notes to the Financial Statements. For more information about Neste’s sustainability risks, please see
Sustainability statement (CSRD).
Outlook
Market outlook for 2025
The uncertainty in the global economic outlook and geopolitical situation is expected to cause ongoing market volatility. The market
in renewable fuels is expected to be oversupplied and therefore challenging in 2025. Possible changes in the regulatory framework
especially in the US and Europe will have an impact on Neste’s overall supply chain optimization. Changes in trade policy, such as
tariffs in different forms, can also affect Neste’s competitiveness.
Guidance for 2025
• Renewable Products’ sales volumes in 2025 are expected to be higher than in 2024.
• Oil Products’ sales volumes in 2025 are expected to be higher than in 2024.
Additional information
• There will be two scheduled maintenance turnarounds in 2025, a 5-week turnaround in Rotterdam in Q4 2025 and a 6-week
turnaround starting in mid-December 2025 in Singapore. There are no planned turnarounds in Porvoo.
• The Group’s comparable total fixed costs in 2025 are expected to be below 2024 level excluding one-off costs.
• The Group’s full-year 2025 cash-out capital expenditure excluding M&A is estimated to be approximately EUR 1.1–1.3 billion.
Dividend distribution proposal
In light of the current financial position of the company, the Board has decided to cancel the dividend policy announced on 19 June
2023, and proposes a dividend payout of EUR 0.20 per share based on the approved balance sheet for 2024 to the Annual General
Meeting. Going forward, the company seeks to maximize operating cash flow in order to strengthen the balance sheet with the
potential to review the dividend in the future.
The dividend shall be paid in one installment EUR 0.20 per share to shareholders registered in the shareholders’ register of the
Company maintained by Euroclear Finland Ltd on the record date for the dividend payment, which shall be 27 March 2025. The
Board proposes to the AGM that the dividend would be paid on 3 April 2025.
The proposed total dividend EUR 0.20 per share represents a yield of 1.6% (at year-end 2024 share price of EUR 12.13). The total
dividend payout in 2025 amounts to approximately EUR 154 million.
Events after the reporting period
On 13 February, Neste announced a new performance improvement program, and updated financial targets and capital allocation
for 2025-2026 as well as Board’s dividend proposal for the year 2024. In 2025-2026, Neste plans to refocus from growth and
development to efficiency and profitability, including capital discipline. To improve profitability and cost-competitiveness, Neste plans
to further simplify its operating model and increase internal efficiency. As a result, the company starts change negotiations that cover
Oil Products and Renewable Products business areas and all global functions, targeting total annual cost savings of approximately
EUR 65 million. The planned organizational changes are expected to lead to a permanent reduction of approximately 600 positions,
of which approximately 450 in Finland.
Personnel
Neste employed an average of 5,796 (6,018) employees during 2024, of which 2,153 (2,114) were based outside Finland. At the end
of December, the company had 5,481 (6,014) employees, of which 2,133 (2,190) were located outside Finland.
Risk Management
Neste considers risk management an integral part of daily management processes and good corporate governance. Systematic risk
management practices are the means to ensure that Neste is successful in achieving its strategic targets and business objectives and
can maintain continuous operations. Neste’s risk management framework and processes are aligned with internationally recognized
best practices: the COSO Enterprise Risk Management framework; and the International Standard for risk management, ISO 31000.
Neste’s risk management framework and risk management principles have been defined in the Corporate Risk Management
Policy, approved by the Neste Board of Directors. The Risk Management Policy is supplemented by risk management principles,
guidelines and instructions for specific risk disciplines. Communication regarding the most important risks takes place during the
strategic planning and performance management cycle. Formal risk reporting is directed to the business management and function
management teams, the Neste Leadership Team, the Audit Committee and the Board of Directors.
Risks related to Neste’s business
Neste’s growth and financial performance may be affected by the general macroeconomic and geopolitical development. In addition,
regulatory changes on the European Union or individual member state level or in the US may adversely affect particularly Neste’s
renewables businesses. As an example, implications from the transition from Blender Tax Credit (BTC) to Clean Fuels Production
Credit (CFPC) in the US could have an impact on the relative competitiveness of US vs. foreign fuel producers. There are also trade
policy related risks. All of these could lead to changes in optimization of Neste’s overall production of renewables as well as balancing
of sales between different solutions and end markets.
The continuing war in Ukraine and the escalated crisis in the Middle East have intensified geopolitical risks that could have a
material impact on the global and European energy markets. The war and the crisis may result in further trade sanctions, impact
supply chains as well as influence market supply and demand conditions. These could also create further pressure on the prices of
feedstock, materials, services, logistics and utilities and affect energy markets as a whole, particularly in Europe.
Main market risks to Neste’s businesses relate, for example, to changes in feedstock and product market prices, overall supply-
demand balance, the growth rate in demand and Neste’s competitive situation. Fluctuations in commodity prices affect Neste’s
production costs, product pricing, profitability, earnings, and credit availability.
Other risks potentially affecting Neste’s financial results in the next 12 months include any scheduled or unexpected shutdowns at
Neste’s refineries, delays in or cost overruns in Rotterdam growth project, potential strikes, cyber and IT related risks, counterparty
risks and outcome of legal proceedings. Neste operates its refineries in integrated industrial complexes with exposure to off take and
delivery of utilities, in particular.
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Sustainability
statement
General information 101
ESRS 2 General disclosures 101
Environmental information 110
EU taxonomy 110
E1 Climate change 116
E2 Pollution 124
E4 Biodiversity and ecosystems 127
E5 Resource use and circular economy 130
Social information 132
S1 Own workforce 132
S2 Workers in the value chain 137
Governance information 141
G1 Business conduct 141
Appendixes 144
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Sustainability statement
General information
ESRS 2 General disclosures
General basis for preparation of the
Sustainability statement
Neste Sustainability statement covers the entire Neste
Group. The scope of consolidation is in principle the
same as for the financial statements. Entities that are
subsidiaries or controlled similarly to subsidiaries are fully
included in the reporting scope. The scope of consolida-
tion differs from the financial statements for joint oper-
ations, joint ventures and associates, including Marti-
nez Renewables: they are excluded from sustainability
reporting as they are outside of Neste's operational con-
trol and hence treated as part of Neste’s value chain and
excluded from information related to Neste’s own oper-
ations. Individual exceptions are communicated in the
reporting principles of specific metrics. See the Account-
ing Policies of the consolidated Financial statements for
more information on the scope of consolidation.
Based on 2024 evaluation, Neste Markkinointi Oy,
Neste Shipping Oy, Neste Netherlands B.V., Neste
Demeter B.V., Neste Components B.V., Neste Eesti AS,
SIA Neste Latvija, UAB Neste Lietuva, Neste AB and
Neste Germany GmbH are exempted from publishing
individual sustainability reports from financial year 2025
onwards, as conditions set out in Directive 2013/34/EU
Article 19a paragraph 9 or Article 29a paragraph 8 are
met. Applicability for the exemption is evaluated annually.
The Sustainability statement is published annually as
part of the Review of the Board of Directors. Similarly
to the Financial statements, the reporting period of the
Sustainability statement is the financial reporting year,
January 1–December 31, 2024. The Sustainability state-
ment is prepared in accordance with the sustainability
reporting standards referred to in Chapter 7 of the Finn-
ish Accounting Act and with Article 8 of the Taxonomy
regulation. An independent third party, KPMG Oy Ab,
has assured the Sustainability statement in accordance
with International Standard on Assurance Engagements
(ISAE) 3000 (Revised), Assurance Engagements other
than Audits or Reviews of Historical Financial Informa-
tion, issued by the International Auditing and Assurance
Standards Board IAASB. Historical information pre-
sented in this report is not in the scope of the assurance.
The disclosed sustainability information is based on
Neste’s double materiality assessment. The assessment
covers Neste’s value chain, including upstream and
downstream, and its own operations. Value chain infor-
mation is included in this report where material. For pol-
icies, targets and action plans disclosed in this report,
Neste specifies which parts of the value chain or own
operations it covers. The reporting principles for metrics
are described at the end of each topic-specific section.
Neste has not omitted information corresponding to
intellectual property, know-how or the results of innova-
tion or used the exemption from disclosure of impending
developments or matters in the course of negotiation in
its Sustainability statement.
Disclosures in relation to specific
circumstances
Neste applies same time horizons as in its Performance
Management Process to align Sustainability statement
with relevant internal processes such as financial outlook,
risk management and strategy. Short-term is defined as
1 year, medium term is defined as 1–3 years, and long
term as 3+ years. Medium- and long-term time horizons
applied differ from the time horizons defined in ESRS 1
General principles.
Specific circumstances applying to metrics are dis-
closed in the reporting principles of relevant metrics. The
figures in the tables in the Sustainability statement are
subject to rounding, which may cause some rounding
inaccuracies in aggregate column and row totals.
Governance
The role of the administrative, management
and supervisory bodies
The Board of Directors of Neste Corporation
(“Board”) is in charge of sustainability matters of major
significance to the Neste Group including, among other
things, the approval of the long-term ambition and tar-
gets for the Neste Group’s sustainability vision, adoption
of Neste’s statutory sustainability reports and reviewing
the sustainability performance. The Board also approves
Neste Group’s corporate values, policies and the most
important corporate principles, including Neste’s Sus-
tainability Policy, which outlines Neste’s approach to
managing material sustainability impacts, risks and
opportunities. The outcome of the double materiality
assessment is reviewed by the Board. The Board has
the ultimate responsibility for sustainability matters and
risk oversight of major significance to Neste. The Annual
General Meeting selects the Sustainability Reporting
Assurer.
The Audit Committee of the Board (“Audit
Committee”) monitors and supervises the statutory
sustainability reporting process including the related
controls, the assurance of the sustainability report and
most material risks of Neste Group. These responsibil-
ities are reflected in the Charter for the Board and the
Audit Committee, respectively, and in the Sustainability
Policy.
Proposal for the composition of Neste’s Board of Direc-
tors is prepared annually by the Shareholders’ Nom-
ination Board consisting of three members appointed
by the Company’s three largest shareholders and the
Chair of the Board of Directors. The Nomination Board’s
most important responsibility is to ensure that the Board
of Directors and its members have sufficient expertise,
knowledge and qualifications for the Company’s needs,
including capabilities related to sustainability matters.
In the preparation of its proposal it will pay attention to
achieving a good and balanced gender distribution and
diversity in the Board of Directors, evaluating the com-
petence of the Board of Directors as a whole.
The members of the Board of Neste have diverse
backgrounds in terms of education and experience in
different professional and industrial fields and in business
operations and management, all of which include com-
petences on sustainability-related issues. The diversity of
the Board of Directors is also supported by experience
in industrial fields and markets that are strategically sig-
nificant for Neste. Several of the members on the Board
have experience within industries and products relevant
for Neste, including e.g., biofuels, chemicals and fossil
fuels. The members of the Board have gained an under-
standing of business conduct matters through various
leadership and board positions in other companies. The
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members of the Audit Committee especially have knowl-
edge and experience of accounting practices, prepara-
tion of financial statements and statutory sustainability
reporting. The Board also calls on external expertise if
and when it deems such expertise appropriate. Neste’s
Board does not include employee representatives.
Neste’s President and CEO prepares and makes
necessary proposals to the Board on the above matters
and in particular: related to corporate strategy (includ-
ing the long-term ambition and targets for the sustain-
ability vision). The Neste Leadership Team approves
Neste’s sustainability priorities and sustainability is rep-
resented in the Leadership Team through Executive Vice
President, People & Culture. Responsibility for monitor-
ing individual corporate sustainability targets is shared
among the members of the Neste Leadership Team and
reviewed periodically by the Leadership Team. Neste’s
sustainability work is managed by the Sustain-
ability, Human Resources, and Safety units and is
implemented across all applicable business areas and
functions, supported by internal policies, principles and
standards.
Material sustainability risks are identified and man-
aged in quarterly risk reviews as part of annual Enter-
prise Risk Management (ERM) process at Neste in line
with the Corporate Risk Management Policy and sup-
porting principles and standards.
Information provided to and sustainability
matters addressed by Neste’s
administrative, management and
supervisory bodies
Neste’s Board of Directors reviews the sustainability per-
formance for topics in the sustainability vision at least
once a year. Other sustainability topics are also regu-
larly reviewed by the Board. Risks are reported to the
Board of Directors at least two times a year as a part of
strategy and performance planning processes. Formal
risk reporting is directed to the business management
teams, Neste Leadership team, Audit Committee and
Board of Directors. Material sustainability risks are pre-
sented to the Audit Committee in connection with the
risk reviews.
During 2024, the Audit Committee and the Board
had specific focus on the new sustainability reporting
requirements under the Corporate Sustainability Report-
ing Directive (CSRD). The Board reviewed the results of
Neste’s double materiality assessment, and the Audit
Committee and Board reviewed throughout the year
the progress of the reporting readiness according to
the European Sustainability Reporting Standards ESRS.
The Board had external sessions with industrial bench-
mark companies on their climate and emission reduc-
tion roadmaps and the role of SAF in delivering aviation
emission reduction targets.
Specification of administrative, management and supervisory bodies 2024
Number of executive members 0
Number of non-executive members 9
Average percentage of male board members, % 69.3
Average percentage of female board members, % 30.7
Board members diversity (average female to male ratio), % 44.6
Percentage of independent board members, % 100.0
At the Board’s annual strategy meeting, sustainabil-
ity topics such as impact of climate and ESG related
regulation on Neste’s business as well as sustainabil-
ity as part of Neste’s value proposition to its custom-
ers were discussed. Climate policy is especially relevant
when considering Neste’s material risks and opportu-
nities related to climate change, as changes in govern-
mental policies supporting low-carbon transition can
materially impact Neste’s business. During the year, the
Board also discussed topics relating to resource use
and circular economy when reviewing Neste’s innova-
tion business platforms with initiatives for circular growth
and new renewable raw material pools.
Safety is addressed by the Board at every meeting, also
relating to Neste’s material impacts, risks and opportuni-
ties on the health and safety of its own employees. The
Board also reviewed and approved the updated Sus-
tainability Policy for Neste and Modern Slavery State-
ment 2024. The annually published Modern Slavery
Statement details the steps Neste is taking to identify,
assess and address the risks of modern slavery in its
business operations and supply chains.
Integration of sustainability-related
performance in incentive schemes
Neste’s Remuneration Policy aligns remuneration with
the successful delivery of its long-term strategic and
sustainability goals. The Neste Board of Directors is
responsible for deciding the remuneration to the Pres-
ident and CEO and the members of the Neste Leader-
ship Team, and for deciding the long- and short-term
incentive plans. The Personnel and Remuneration Com-
mittee is responsible for drafting the remuneration-re-
lated matters and proposals for the BoD.
Neste’s climate commitments are connected with the
remuneration of Neste’s key personnel, as they are a per-
formance measure in Neste’s long-term incentives (LTIs).
In 2024, Combined Greenhouse Gas Impact represents
20% of the LTI and includes greenhouse gas emissions
(GHG) emission reductions achieved with Neste renew-
able products by customers and GHG emissions from
Neste production. These metrics are also directly related
to the company’s climate targets, as described under
the E1 Climate change -section. Additionally, measures
related to the improvement in both process and per-
sonnel safety constitute at least 20% of the short-term
incentives’ measures in 2024.
Risk management and internal controls over
sustainability reporting
Neste’s assurance functions consist of risk manage-
ment, compliance and internal controls. Neste is com-
mitted to accurate and transparent sustainability report-
ing. Neste manages risks within this process through
a robust internal control system. Neste’s internal con-
trol framework is based on the Committee of Sponsor-
ing Organizations framework (the “COSO framework”,
2013), it covers both financial and sustainability report-
ing and it promotes a unified approach to risk manage-
ment and control activities.
Internal control requirements, as defined in the Neste
Internal Control Principle and Controls over Financial
and Sustainability Reporting Standard, are implemented
across all levels of the organization. Operational man-
agement owns the risks and controls related to sustain-
ability data within their respective areas, while Group
Finance has overall responsibility for the Sustainability
statement, mirroring the financial reporting responsibility
structure. Specialists in sustainability reporting provide
guidance and support.
Neste has assessed and prioritized risks based on their
potential impact on the reliability of its reporting, consid-
ering factors such as data materiality, process complex-
ity and potential for human error. The company contin-
ues to mature in its sustainability reporting processes
and systems, however some data collection and input
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still rely on manual processes. Risks identified include
accuracy and completeness of the data. These risks are
mitigated by clearly defined roles and responsibilities for
data collection and reporting, and a common reporting
guideline provided in Neste manual for CSRD reporting.
Neste has implemented preventive and detective control
activities based on the identified risks, including recon-
ciliation controls and review controls for quantitative and
qualitative sustainability data.
Internal Control function monitors the control perfor-
mance and assesses control adequacy, reporting reg-
ularly to the Neste Leadership Team. Deficiencies are
promptly reported to responsible parties for corrective
action, with appropriate escalation to management and
the Audit Committee of the Board of Directors. This pro-
cess is consistent with financial reporting control defi-
ciency reporting.
Strategy, business model
and value chain
Neste’s business model and value chain
Neste is the world’s leading producer of sustainable avi-
ation fuel (SAF) and renewable diesel and a forerunner
in developing renewable and circular feedstock solu-
tions for polymers and chemicals. Neste’s businesses
are grouped into three reporting segments: Renewable
Products (RP), Oil Products (OP) and Marketing & Ser-
vices (M&S).
Neste’s upstream value chain consists of the sourcing
of raw materials for production, indirect procurement and
the sourcing of materials and products for trading. Indi-
rect procurement activities cover the sourcing, purchas-
ing, contract and supplier management of goods and
services that are not included in the sourcing and deliv-
ery of crude oil and other fossil raw materials or renew-
able and recycled raw materials. Neste’s own operations
cover refining activities, investment projects as well as
commercial operations. Downstream activities include
further processing, distribution and use of Neste’s prod-
ucts. In addition, logistics and storage, distribution of
products, innovation and R&D activities and end-of-life
management occur across Neste’s value chain.
The value chains of Renewable Products, Oil Prod-
ucts and Marketing & Services, including their key inputs
and outputs are further described below.
The Renewable Products segment produces,
markets and sells renewable diesel, sustainable aviation
fuel, and renewable and recycled feedstock for polymers
and chemicals. Neste’s renewable raw material portfolio
consists of a wide variety of waste and residue oils and
fats and smaller amounts of sustainably-produced veg-
etable oils. The raw material supply chains for Neste’s
renewable products are extensive and global. Neste
procures raw materials from suppliers across Europe,
North America, South America, Asia, Africa and Aus-
tralia. Neste produces renewable products at its refin-
eries in Finland, the Netherlands and Singapore, as well
as through a joint operation with Marathon Petroleum
in Martinez, California, the U.S., entirely from renew-
able raw materials. Significant customer groups include
retailers, airlines, and aviation fuel suppliers, as well as
polymers and chemicals producers. In 2024, the main
market areas are Europe and North America.
The Oil Products segment produces, markets and
sells high-quality oil products and related services for
the road transportation, heavy machinery, agriculture,
aviation and marine sectors, as well as products for the
oil and petrochemical industries. In 2024, the compa-
ny’s major crude oil and fossil raw material sources were
Norway, the United Kingdom and the US. The product
range includes diesel, gasoline, aviation and marine fuels,
light and heavy fuel oils, gasoline components, and spe-
cial fuels such as small-engine gasoline, solvents, liquid
gases and bitumens. Neste’s oil products are refined at
Neste’s refinery in Porvoo, Finland. The main custom-
ers for the Oil Products include retailers and distribu-
tors, oil majors and trading companies, petrochemical
companies and companies marketing lubricants and
solvents. The main market areas include the Baltic Sea
area, Europe and the Americas.
Marketing & Services segment markets and sells
lower-emission fuels and high-quality oil products and
associated digital solutions to its customers in Finland,
Estonia, Latvia, and Lithuania. The most important cus-
tomers include consumers, transport service providers,
customers in aviation, shipping, industrial and agricul-
tural sectors, municipalities and heating fuel customers.
Transport fuels and high power EV charging services are
marketed through Neste’s own service station network
in Finland and the Baltics.
Neste’s strategy and relation to
sustainability matters
Sustainability work at Neste is guided by the Neste sus-
tainability vision covering climate, biodiversity, human
rights, as well as supply chain and raw materials:
• Climate: Neste leads transformation towards a
carbon neutral value chain by 2040.
• Biodiversity: Neste aims to drive a positive impact
on biodiversity and achieve a nature positive value
chain by 2040.
• Human rights: Neste strives to create a more
equitable and inclusive value chain by 2030, in which
everyone works with dignity.
• Supply chain & raw materials: Neste drives a
safe and healthy workplace, fair labor practices and
increased commitment to sustainability across the
supply chain.
Key elements of Neste’s strategy that relate to or affect
material sustainability matters are providing solutions to
reduce reliance on fossil resources and transition to a
renewable and circular solutions provider:
• Neste’s renewable products enable customers to
reduce their GHG emissions. Renewable diesel,
SAF and renewable feedstocks for polymers and
chemicals offer significant GHG reduction over the
product life cycle compared to fossil alternatives.
Neste’s target is to enable its customers to reduce
their GHG emissions with Neste’s renewable and
circular solutions by at least 20 Mt CO
2
e annually
by 2030.
• Neste ambition is to gradually transform the oil
refinery in Porvoo, Finland into a leading renewable
and circular solutions refining hub in the mid-2030s.
To achieve the ambition at the Porvoo refinery,
Neste is, for example, building an upgrading unit for
liquefied waste plastic, and has started modifying
existing refinery units to enable co-processing
of renewable and recycled raw materials with
fossil raw materials in the conventional refining
process. With the help of co-processing in Neste’s
oil refining processes, the company can produce
additional volumes of products that have lower GHG
emissions.
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Total revenue by segment, MEUR 2024
Renewable Products 7,321
Oil Products 11,829
Marketing & Services 4,687
Others 125
Eliminations -3,326
Total revenue 20,635
Breakdown of total revenue
from fossil fuel, MEUR 2024
Revenue from oil 13,442
Revenue from gas 142
Total revenue from
fossil fuel sector 13,584
CapEx related to fossil fuel
activities, MEUR 2024
Significant CapEx for oil-related
economic activities 387
Significant CapEx for gas-related
economic activities 0
Headcount of employees by
geographical areas 2024
Europe 4,203
Americas 878
Asia-Pacific 493
Total employees 5,574
HeadcountReporting principles for revenue metrics are included
in Note 5 Revenue in the Consolidated Financial state-
ments. Reporting reconciles with Neste’s operating seg-
ments as defined by IFRS 8.
Revenues from and CapEx related
to fossil fuel activities
Neste has operations in the fossil fuels sector and reve-
nues from these sectors are presented below. Revenue
from gas is reconciled with fossil gas-related activities
presented as part of the EU taxonomy reporting. Neste
has no revenue from coal and Taxonomy-aligned eco-
nomic activities related to fossil gas.
Reporting principles for headcount are included under
S1 Own workforce
Business relationships
Neste requires all its suppliers and other business part-
ners to comply with applicable laws and expect them to
follow equivalent ethical business standards as stated
in the Neste Code of Conduct, further described in the
Neste Supplier Code of Conduct. Neste aims to include
Supplier Code of Conduct in the contract terms for sup-
pliers, contractors and other business partners partici-
pating in the delivery of raw materials, products, com-
ponents, materials or services to Neste. Companies
consolidated through mergers and acquisitions are also
expected to implement the Neste Supplier Code of Con-
duct in their sourcing. Neste’s suppliers and business
partners are expected to comply with requirements set
by Supplier Code of Conduct for five elements: Com-
pliance with laws and regulations; Business Conduct;
Occupational health, safety and security; Environmen-
tal impact and climate change; and Human and labor
rights.
Practices related to the collection and development
of inputs are further described under G1 Business
Conduct - Management of relationships with suppliers.
Revenue by segment
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Interests and views of stakeholders
Neste aims for continuous, active and open dialog with
its stakeholders and regularly seeks external views on
its operations. The company’s key stakeholders include
stakeholders who the business can influence as well
as those that have the opportunity to influence Neste;
including suppliers, employees, customers, investors,
policymakers, non-governmental organisations (NGOs),
academic institutions, and the media.
Through Neste Sustainability Policy, Neste is commit-
ted to engaging and collaborating with its stakeholders
Stakeholders Purpose and key topics How engagements are organized How outcomes are taken into account by Neste
Suppliers,
contractors
and value chain
workers
• Implementing Neste Supplier Code of Conduct and Responsible Sourcing
Principles
• Improving supplier engagement and collaboration through information
sharing and capacity building
• Driving performance improvements across sustainability matters
• Ensuring availability of raw materials, products and services
• Collecting information on Neste’s scope 3 emissions annually
• Advancing positive social and environmental impacts in the supply chain
• Sustainability workshops, trainings and seminars
• Collaboration initiatives, such as awareness building e.g. social toolbox
meetings and landscape projects
• Monitoring and auditing supplier sustainability, incl. worker interviews,
worker voice surveys, contractor social audits
• Evaluating new raw material suppliers
• Information sharing through meetings and newsletters
• Site-level grievance channels at Neste refineries designed to address
concerns of contracted and subcontracted workers, incl. migrant workers
• Ensuring Neste sourcing process adheres to own sustainability goals
• Supplier due diligence, audits and monitoring
Employees • Engaging employees in executing company strategy
• Increase understanding of Neste business outlook and priorities
• Strengthening Neste culture, values and ways of working (Code of Conduct)
• Supporting and enabling learning and development
• Promoting health, safety and wellbeing
• Employment relations and local cooperation committees or work councils
• Regular communication on Neste’s strategy and financial results
• Goal setting and development plans
• Development and wellbeing discussions
• Measuring employee engagement regularly via surveys
• Encouraging employees to participate in voluntary work
• Follow-up of engagement actions
• Discussing results from surveys and agreeing on measures and actions
plans
• Proactive and systematic communication and training regarding topics of
interest, dialog on topics raised by employees
• Ensuring employee cooperation in line with local collective agreements
Local
communities
• Employment and cooperation opportunities
• Sharing information on health and safety matters, site investments and
development projects
• Understanding environmental and social impacts on local communities
• Engaging via newsletters, meetings, websites, and social media
• Arranging site tours for interest groups
• Collaborating with local authorities and city representatives
• Conducting biennial stakeholder studies on refinery impacts at the Porvoo
refinery
• Providing complaint channels for local communities
• Community development initiatives
• Maintaining open dialogue with local communities
• Encouraging employee volunteering for local charities
Universities
and research
organizations
• Development and collaboration in key R&D and innovation topics, incl. raw
material and technology development
• Exploring research opportunities by engaging with universities and research
organizations globally
• Cooperation with Aalto University, Åbo Akademi and VTT in Finland, and
international partners
• Building R&D&I project portfolio related to the development of existing and
new renewable and circular solutions
• Promoting Neste as an employer of choice by traineeships, master's thesis
projects, part-time employment etc.
and taking an active role in multi-stakeholder initiatives
to help develop more sustainable solutions. Neste also
provides stakeholders with relevant information on its
value chains and solutions in order to ensure accept-
ability of Neste offerings in the key markets. Stakeholder
considerations are taken into account when considering
the ambitions of policies or setting targets as relevant.
Neste actively engages with policy makers globally to
drive and advance sustainability policies. The company
shares its views on policies, laws and regulations with
officials and legislators through public consultations,
meetings, as well as part of a larger stakeholder dia-
logue with policymakers. Neste also participates in the
work of industry associations. Neste seeks to consider
their inputs in developing the company’s sustainability
work.
The Stakeholder Advisory Panel has been established
to promote discussion between Neste and its stake-
holders on subjects such as the company’s operations,
business development, and changes in its operating
environment. The Advisory Panel, which includes rep-
resentatives from members of the Parliament of Finland
and Neste’s personnel, ensures that the management
and supervisory bodies are kept informed about stake-
holders’ views, particularly on sustainability-related
impacts.
The table below summarizes Neste’s engagement
with its key stakeholders:
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Investors and
equity analysts
• Informing capital markets and investors about Neste’s strategy, financials,
outlook and demand drivers related to green transition
• Sharing progress and gathering expectations on Neste’s sustainability
vision, covering climate, biodiversity, human rights and supply chain and
raw materials
• Financial communications via reports, releases, calls, meetings, and Capital
Markets Day
• Proactive updates on business developments and investments
• Transparent, regular reporting and disclosures
• Cooperation with rating agencies and investor assessments
• Developing Neste strategy and sustainability commitments and processes to
meet expectations
• Neste Green Finance Framework
• Developing reporting and disclosure practices
• Responding to questionnaires by rating companies and investors
Governmental
organizations
• Driving ambitious and technology neutral policies on climate and GHG
emission reduction targets
• Advocating for renewable fuels in transportation and other industries
• Advancing market development for renewable and recycled materials,
circular economy
• Advancing sustainable finance
• Sharing views on policies, laws and regulations with policymakers
• Supporting policymakers with industry insights and information on
technological capabilities
• Responding to public consultations and meeting with officials on climate
and energy topics
• Maintaining active membership in industry associations
• Monitoring regulatory and legislative development that can affect e.g. the
demand outlook of renewable and circular solutions to influence strategy
planning
• Developing processes and operations to ensure compliance with relevant
laws and regulations
Media • Sharing company news, interim and annual results
• Informing stakeholders about company strategy, business development,
mergers and acquisitions and major projects
• Sharing information on customer cooperation, sustainability, innovation,
renewable and circular solutions
• Engaging with media
• Following and responding to media inquiries
• Organizing interviews, media visits and events, background briefings
• Press releases and other materials
• Media service by Neste’s communications following and responding to media
inquiries
NGO’s • Collaboration on climate change mitigation, biodiversity, human rights,
sustainable raw material sourcing and circularity
• Maintaining continuous dialogue with NGOs
• Collaborating on joint projects for regional sustainability and smallholder
support
• Transparent reporting on sustainability performance and grievances
• Enhancing supply chain sustainability
• Developing the company sustainability approach
B2B customers • Accelerating GHG emission reductions with renewable and circular
solutions, building a circular economy, progressing towards climate
commitments, recycling of plastic waste
• Cooperation e.g., on innovation and R&D
• Informing and educating on Neste’s strategy, sustainability commitments,
safety and operations
• Meetings, newsletters and training
• Monitoring customer satisfaction with surveys
• Engaging in joint communications
• Partnerships to reduce customers’ carbon footprint and enhance
sustainability
• Facilitating sales
• Arranging site visits
• Responding to the customer needs by providing high-quality renewable and
circular solutions, and securing supply chains
• Forming partnerships and co-creating new solutions and services
Consumers • Enhancing product, service and operations quality and sustainability
• Providing information about products, their safety, pricing, raw materials and
the value the products provide
• Gathering insights via surveys
• Providing regular fact sheets, press releases and news
• Working with local distributors
• Running advertising campaigns
• Responding to consumer inquiries
• Expanding availability of renewable products through station networks
• Developing Neste’s offering of lower-emission solutions, e.g. by expanding
the availability of Neste MY Renewable Diesel and public electric vehicle
charging service
Industry
associations
• Collaboration in key topics, including safety, climate change mitigation,
transport emissions reductions, renewable and circular solutions, circular
economy, plastics recycling, industry competitiveness
• Memberships in key associations and certifications
• Engagement and cooperation
• Participating in events seminars and working groups
• Memberships in relevant organizations, e.g. FuelsEurope, European
Biodiesel Board, Advanced Biofuels Association (US), The Chemical Industry
Federation of Finland, Cefic, Renewable Carbon Initiative (RCI)
Cooperation
bodies
• Development and collaboration in key topics, incl. climate, biodiversity,
renewable and circular solutions, plastics recycling, resource efficiency,
circular economy, innovation, human rights
• Advocating supply chain sustainability
• Engagement and cooperation
• Participating in industry-related working groups
• Cooperating with e.g. International Sustainability & Carbon Certification
(ISCC), UN Global Compact, World Business Council for Sustainable
Development (WBCSD), Nordic Business Network for Human Rights,
Concawe
Stakeholders Purpose and key topics How engagements are organized How outcomes are taken into account by Neste
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Material impacts, risks and
opportunities
The renewable energy sector, where Neste operates,
is subject to risks including regulatory changes, market
volatility, and technological shifts. However, it also pres-
ents opportunities such as the growing global demand
for more sustainable alternatives to traditional fossil fuels
and chemicals.
Neste also operates in the Oil & Gas sector (O&G).
Oil & Gas sector specific sustainability impacts include
greenhouse gas (GHG) emissions for example from the
extraction and use of fossil resources and use of fos-
sil raw material based products. In addition, there are
potential pollution and land-use change effects related
to sourcing and extraction of fossil resources. Transition
to a low-carbon economy creates both material transi-
tion risks and opportunities in the O&G sector.
The adjacent table summarizes material impacts, risks
and opportunities for Neste and how they relate to its
business model, value chain and strategy. More detailed
descriptions of each material impact, risk and oppor-
tunity is provided in the topical sections under Environ-
ment, Social and Governance.
Growing pressure to combat climate change and
reduce greenhouse gas emissions is primarily a positive
driver for Neste’s business. However, political and soci-
etal focus on the low-carbon transition and the energy
sector’s carbon footprint also creates risks. The indi-
rect economic and political consequences of climate
change may contribute to the general uncertainty in
the business environment and hence have an adverse
effect on Neste’s business. Various governments have
been forced to consider the affordability and funding of
the green energy transition. As a result, the market has
seen temporary reductions in climate ambition and tar-
gets. It has also slowed down the implementation of
the climate policies that support demand for Neste’s
solutions. In addition, changes in carbon emission trad-
ing schemes or similar initiatives at EU, US or individ-
ual Member-State-level may have a significant effect on
Neste’s business.
Material topics Summary of material impacts, risks and opportunities for Neste as evaluated in the double materiality assessment
Environment
Climate change Impacts • Renewable and circular solutions enable reducing dependency on fossil resources and GHG emission reductions by Neste’s
customers (positive impact)
• GHG emissions across the value chain (negative impact)
• Impacts associated with energy consumption of operating in energy-intensive sector (negative impact)
Risks • Regulatory uncertainty related to implementation of climate policies that support demand for Neste’s solutions or impact
competitiveness of key raw materials
Opportunities • Innovate and scale-up new renewable and recycled raw materials and technologies
• Demand growth in renewable and circular solutions
• Strengthening flexibility in supply chain by sourcing and processing diverse renewable and recycled raw materials
Pollution Risks • Neste needs to recognize, evaluate and implement all the existing, emerging and evolving regulatory requirements applicable
to Neste’s operations in the area of chemical compliance and safety
Biodiversity and
ecosystems
Impacts • For renewable products, the use of waste and residue raw materials can contribute to positive impacts for biodiversity in the
upstream value chain (positive impact)
• Upstream sourcing of fossil raw materials and utilities potentially damaging terrestrial and marine ecosystems, habitats and
species or resulting in soil and marine pollution (negative impact)
Risks • Stringent regulatory and market requirements on raw materials
Opportunities • Ability to use difficult waste materials to avoid land use impacts from agriculture
Resource use and
circularity
Risks • Price volatility of renewable waste and residue raw materials and recycled raw materials due to e.g. challenges in material
availability, or competition within or outside of the industry
Opportunities • Increased availability of new raw materials
Social
Own workforce Impacts • Neste’s own employees' health and safety could be directly impacted in the short-term due to hazardous processes in the
company’s operations (negative impact)
Risks • Workplace injuries and/or ill-health
Opportunities • With a robust safety management system Neste aims to prevent injuries, reduce sick leaves and downtimes caused by
incidents and accidents. Neste aims to implement preventive measures for health and safety hazards.
Workers in the
value chain
Impacts • Forced labor in the value chain (negative impact)
Governance
Business conduct Impacts • Driving policies and practices that contribute to improved working conditions, ethical business practices, health and safety
and environmental sustainability in the supply chain (positive impact)
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Changing regulation presents both an opportunity
and a threat to Neste’s business. Neste’s business
areas mainly benefit from increased support for biofuels
and renewable fuels (for example, requirements related
to renewable content in diesel and gasoline). However,
changes in regulation, especially in the European Union
and the United States, also create uncertainties, as
these may influence the speed at which the demand for
renewable products develops, and new raw materials
sources are brought into use. For renewable products,
a significant source of uncertainty is the fragmented reg-
ulation around the acceptability and use of waste and
residue feedstock and incentives supporting domestic
production.
Material opportunities regarding climate change,
biodiversity or circular economy have not significantly
impacted 2024 financial position, financial performance
or cash flows. From the risk side, the main materialized
risks in 2024 include weaker demand for renewable
solutions, lower margins due to well supplied markets
and operational challenges at Neste refineries. Mate-
rial risks identified under climate change and biodiver-
sity relate to changes in regulation or policies. While the
overall regulatory support and demand development in
2024 were weaker than expected, none of the major
regulatory risks alone had a material impact on financial
position, financial performance and cash flows. In 2024,
Neste did not have financially material safety incidents
(PSE tier 1 events, >50 MEUR impact) that would have
resulted in negative health and safety impacts (TRI) on
its own workforce. However, in 2024, the environmen-
tal authorities (i) imposed an order subject to a penalty
on the Neste Rotterdam site relating to the exceeding of
emission limits for volatile organic carbon components
(VOC) and (ii) initiated an investigation under criminal law
following an alleged violation associated with the flaring
system.
Processes to identify and assess
material impacts, risks and
opportunities
The disclosed sustainability information is based on
Neste’s double materiality assessment. The double
materiality assessment (DMA) was divided into four
phases based on general steps outlined in ESRS 1 Gen-
eral principles. This is the first time that Neste has under-
taken a double materiality assessment in line with ESRS
requirements.
1. Value chain mapping
The purpose of the value chain mapping was to describe
Neste’s value chain and related business activities in both
upstream, own operations and downstream. The focus
was on specific activities, business relationships, geog-
raphies or other factors that could give rise to a height-
ened risk of adverse impacts. The value chain mapping
was conducted by internal stakeholders for a compre-
hensive knowledge and understanding of Neste’s busi-
ness. The results of the mapping were validated internally.
Neste’s double materiality assessment covered the
whole value chain including activities in the upstream,
own operations and downstream. In the double materi-
ality assessment process, all identified business activities
were screened to identify actual and potential impacts,
risks and opportunities (IROs).
2. Impact assessment
The purpose of the impact assessment was to identify
actual and potential impacts of Neste business activi-
ties. A sustainability matter is material from an impact
perspective when it pertains to Neste’s material actual
or potential, positive or negative impacts in relation to
environmental, social and governance matters over
short-, medium-, or long-term. The impact assessments
included impacts connected with Neste’s own opera-
tions and value chain (upstream and downstream) and
it considered inputs from Neste’s ongoing due diligence
activities and impact assessments.
For each relevant business activity identified in the
value chain mapping phase, the driver of impact as well
as the effect of the impact on the environment or peo-
ple were defined. In addition, each impact was charac-
terized (positive/negative, actual/potential, time horizon),
and linked to relevant ESRS sub-topics, and sub-sub
topics, if applicable. The time horizons defined in ESRS
for medium and long term were modified in the assess-
ment to be in line with time horizons defined in Neste’s
relevant internal processes such as financial outlook,
risk management and strategy. The time horizons used
by Neste are: short 1 year, medium 1–3 years, and long
3+ years.
3. Financial assessment
The purpose of the financial assessment was to identify
risks and opportunities that materially influence or may
reasonably be expected to materially influence Neste’s
financial development, performance and position. A sus-
tainability matter is material from a financial perspective
if it triggers material financial effects for Neste. This is
the case when a sustainability matter generates or may
generate risks or opportunities that have a material influ-
ence on Neste’s development, financial position, finan-
cial performance, cash flows, access to finance, or cost
of capital over the short-, medium-, or long-term.
For the risk and opportunity identification, the identi-
fied risks or opportunities, and their associated financial
impact to Neste, geographical location and time horizon,
were described. In the financial assessment, the time
horizons used were modified similarly as in the impact
assessment. The identified risks and opportunities were
linked to relevant ESRS sub-topics and sub-sub topics,
if applicable, and to value chain location (upstream, own
operations, downstream or cross-cutting).
The assessment utilized already identified risks and
opportunities as defined and managed within Neste’s
Enterprise Risk Management (ERM). Furthermore, con-
sideration was given to any potential significant risks or
opportunities that may arise as a result of the impacts
and dependencies that were identified during the impact
materiality assessment phase.
4.1 Scoring
Impacts, risks and opportunities that had been iden-
tified in the previous phases of the materiality assess-
ment were scored. The purpose of the scoring was to
assess materiality of impacts based on a combination
of severity (scale, scope, irremediability) and likelihood,
and risks and opportunities based on a combination
of likelihood and magnitude of financial effects. Finan-
cial impacts were assessed based on risk assessment
scales in Neste Corporate Risk Management Policy.
• For actual negative impacts, materiality is based on
the severity of the impact, while for potential negative
impacts it is based on the severity and likelihood of
the impact. Severity is based on scale, scope, and
irremediable character of the impact.
• For positive impacts, materiality is based on the
scale and scope of the impact for actual impacts
and the scale, scope, and likelihood of the impact for
potential impacts.
• The materiality of risks and opportunities was
assessed based on a combination of the likelihood
of the occurrence and the potential magnitude of the
financial effect.
4.2 Determination
In the determination phase, appropriate thresholds were
set to determine which IROs were material for Neste. Top-
ics that exceeded the thresholds from either an impact
or financial impact perspective or both, were deemed as
material. The thresholds are based on the average score
of likelihood and severity (impact materiality) or finan-
cial magnitude (financial materiality). The criteria for the
thresholds are based on impact and financial materiality
assessments, considering a range of factors, including
but not limited to the significance of the IRO on stake-
holders, environment and society, potential financial
implications, risk appetite and tolerance and the strate-
gic importance of the topic. Topics, which did not exceed
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the set materiality threshold but were seen as central
for Neste’s strategy and core values, or hold importance
due to external stakeholder interest and strong industry
relevance, were deemed material based on a separate
management decision.
The thresholds set in the double materiality assess-
ment are not static and may be subject to periodic review
and adjustment.
4.3 Validation
Neste Leadership Team and Board of Directors reviewed
the outcomes of the double materiality assessment. Each
double materiality process step was also validated with a
group of internal subject matter experts, and Neste Lead-
ership Team and Board of Directors were kept informed
throughout the assessment. During 2024, Neste has
defined specific internal controls to ensure the fulfillment
of relevant requirements when conducting the double
materiality assessment. The controls aim to ensure valid,
complete and accurate results. Through the controls, it
is ensured that the views of key experts, stakeholders
and decision-makers are taken into account, and that a
pre-defined approach is followed consistently.
Integration with Neste processes
Sustainability-related risks are identified and managed
in quarterly risk reviews as a part of Enterprise Risk
Management (ERM) at Neste in line with the Corporate
Risk Management Policy and supporting principles and
standards. The assessment considers short-, medium-
and long-term perspectives. The prioritization of risks is
based on the risk assessment scales according to the
Neste Corporate Risk Management Policy.
Stakeholder engagement
The double materiality assessment was supported by
internal subject matter experts and informed by Neste’s
ongoing due diligence activities. Stakeholder views were
considered in different ways during the assessment pro-
cess. For example, Neste has several ongoing projects,
related to topics such as biodiversity and affected com-
munities, in which external stakeholders are involved.
Findings and views from these projects were consid-
ered when identifying material impacts, risks and oppor-
tunities. Neste also engages in dialog and collaboration
with local communities and production site neighbors,
covering environmental, social, and safety impacts. At
the end of the double materiality assessment process,
Neste interviewed selected key stakeholders to gain
their insight on the sustainability topics deemed mate-
rial for Neste. Neste’s approach to stakeholder engage-
ment is further described under the Interests and views
of stakeholders section of this report.
Identification of environmental, social and
business conduct -related impacts, risks
and opportunities
Neste continuously identifies and assesses relevant envi-
ronmental and business-conduct related impacts, risks
and opportunities. These activities serve as inputs for
Neste’s DMA and when determining material topics and
sub-topics:
Environmental impacts, risks and opportunities:
Neste operations are responsible for identifying, assess-
ing and monitoring environmental impacts related to
their operations, including issues related to emissions,
water and waste generation. At the Porvoo refinery, con-
tinuous environmental monitoring is conducted to com-
ply with the requirements of the site’s environmental per-
mit issued by local authorities, and Neste participates in
the monitoring activities. Similar monitoring is in place at
selected retail sites in Finland, Estonia, Lithuania, and all
sites in Latvia. In Rotterdam and Singapore, Neste sites
are located on broad industrial areas together with other
companies’ sites. Authorities conduct environmen-
tal monitoring outside the site fenceline of these indus-
trial areas. In cases where specific impact monitoring
requirements are not stipulated by local authorities or
legislation, expert judgment is used to assess potential
impacts.
According to Neste’s company-wide Environmental
Management Principle, major investment projects include
an Environmental Compliance Analysis and a compli-
ance review when building new production capacity or
increasing current capacity. Environmental Management
Principle is further described under E2 Pollution -section
of this report. Environmental impacts, risks and oppor-
tunities in the value chain are further identified through
ongoing due diligence activities, which are described
in detail in the G1 Business Conduct -section of this
report.
Business conduct -related impacts, risks and
opportunities: Neste has implemented systematic con-
trols for counterparty screening and monitoring, during
which potential business partners undergo automated
screening. Counterparties are screened for economic
sanctions and similar compliance issues and selected
ethical concern categories in third-party enforcement
databases and major news outlet sources. Neste also
assesses the country risk in its supply chains to bet-
ter understand risks related to ethical business prac-
tices, among other topics. These ongoing due diligence
activities support Neste in identifying impacts, risks and
opportunities in relation to the management of business
conduct matters.
Type Name E1 E2 E4 E5 S1 S2 G1
Code of
Conduct
Neste Code of Conduct x x x x
Supplier Code of Conduct x x x x x
Policies People Policy x
Sustainability Policy x x x
Operations Excellence Policy x x x
Principles Sustainability Principle x x x
Human Rights Principle x x
Environmental Management Principle x x
Product & Chemical Safety Principle x
Anti-corruption Principle x
Safety Leadership Principle x
Responsible Sourcing Principle x x x x
Supplier Sustainability Approval Principle x x x
The identification of climate- and biodiversity related
impacts, risks and opportunities are described in detail
in the related topical chapters.
Policies to manage material
sustainability matters
A summary of the relevant policies and principles at Neste
to address material sustainability matters is summarized
in the table below. Neste policies define the organiza-
tion’s overall purpose, goals, mission and vision; while
principles describe the minimum requirements that are
common to all Neste locations and operations. Details
of each policy are further described under relevant sus-
tainability matter standards. For all mentioned policies
throughout the report, the most senior level in Neste’s
organization that is accountable for implementing the
policies is the CEO. The accountability for implement-
ing principles lies with the respective leadership team
members.
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The EU taxonomy is a classification system for sustain-
able economic activities. It aims to provide robust defi-
nitions and transparent reporting to support increased
finance for activities that substantially contribute to solv-
ing the climate and environmental crisis.
Neste is required to disclose information about how
and to what extent business activities are associated
with environmentally sustainable economic activities as
defined in the Taxonomy Regulation. The EU taxonomy
is reported in financial terms as the proportion of eco-
nomic activities that is determined to be non-eligible, eli-
gible and aligned in turnover, Capital expenditure (CapEx)
and Operating expenses (OpEx). The framework defines
economic activities contributing to six environmental
objectives. Neste has operations that contribute to the
climate change mitigation objective.
Assessment of compliance with the
Taxonomy Regulation
Taxonomy eligibility for an activity is determined by the
activity description in the Annexes of the climate and
environmental delegated acts in the Taxonomy Regula-
tion. Neste has screened its business areas and inno-
vation initiatives to identify activities within the scope
of the taxonomy. Eligible activities are identified based
on the description of the activity in Annex I of the Cli-
mate Delegated Act of the Taxonomy Regulation. Tax-
onomy alignment for an activity is evaluated by the tech-
nical screening criteria for substantial contribution and
“do no significant harm” (DNSH), as set out in the rele-
vant Annexes. An activity is taxonomy-aligned when it
substantially contributes to at least one environmental
objective while doing no significant harm to the other
environmental objectives set by the technical screening
criteria. Neste has evaluated the substantial contribution
and DNSH criteria for each activity identified to recog-
nize the share of taxonomy-aligned economic activities.
Additionally, an entity needs to comply with the minimum
safeguards.
Environmental information
EU taxonomy
Based on this process, the following activities in the
taxonomy have been identified as relevant for Neste:
4.13 Manufacture of biogas and biofuels
for use in transport and of bioliquids
• Manufacture of renewable fuels
• Renewable co-processing of fuels
6.15 Infrastructure enabling low-carbon
road transport and public transport
• Electric vehicle charging services
9.1 Close to market research,
development and innovation
• R&D activities in Neste’s innovation business
platforms, including renewable hydrogen and
Power-to-X
Neste also has economic activities that are currently not
covered by the EU taxonomy while contributing to cir-
cularity and climate goals. For example, Neste provides
circular economy solutions and renewable feedstocks
for the chemical industry that are not currently covered
in the activities listed in the EU taxonomy. As the EU
taxonomy continues to develop, Neste will continuously
re-evaluate its activities contribution to the taxonomy’s
environmental objectives.
Substantial contribution of Neste’s core
business
Substantial contribution criteria
The EU taxonomy refers to the manufacture of biofuels
for use in transport as a sustainable activity, and Neste
has assessed its manufacturing of renewable fuels for
the road transport and aviation sectors, as well as the
co-processing of renewable raw materials to be taxon-
omy-relevant economic activities based on the Climate
Delegated Act of the Regulation. Neste’s Renewable
Products provides renewable, lower-emission solutions
for transportation, aviation, marine and other industrial
uses. Co-processing of renewable raw materials aims
to replace crude oil input in the production of fuels used
in various transport sectors. Neste’s activities relevant
to the EU taxonomy are climate change mitigation solu-
tions and are in line with the company’s climate targets.
The EU taxonomy technical screening criteria for the
Climate Delegated Act including climate change miti-
gation establishes criteria for the “Manufacture of bio-
gas or biofuels for use in transport and of bioliquids”
activity. The recognized activities, manufacturing biofu-
els and renewable co-processing of fuels, make a sub-
stantial contribution to climate change mitigation. The
substantial contribution criteria sets the threshold for
greenhouse gas (GHG) emission savings from the man-
ufacture of biofuels and biogas for use in transport to at
least 65% in relation to the GHG emission saving meth-
odology and the relative fossil fuel comparator in accor-
dance with Directive (EU) 2018/2001. Additionally, the
criteria require that no food and feed crops are used in
the manufacturing. The share of manufacturing of waste
and residue raw materials is therefore included in the
alignment figures for this activity. The alignment figures
for biofuel sales outside the EU are reported separately
because the GHG emission calculation and verification
methodologies differ. Neste’s renewable products com-
ply with market-specific sustainability criteria and meet
the GHG emission saving thresholds for EU taxonomy.
The activity “Infrastructure enabling low-carbon road
transport and public transport” includes Neste’s electric
vehicle charging service. The electric charging stations
serve both companies and consumers. The activity is
fully eligible for the taxonomy.
Neste’s innovation and R&D focuses on convert-
ing low-quality raw materials into high-quality solu-
tions. The research and innovation activities reported
under the “Close to market research, development and
innovation” activity meet the activity-specific taxonomy
alignment criteria and include projects in Neste’s port-
folio related to renewable hydrogen and Power-to-X.
Neste has decided to withdraw from investing into a 120
MW electrolyzer project to produce renewable hydrogen
at its Porvoo refinery in Finland. The company is actively
evaluating alternative pathways for securing renewable
hydrogen. Innovation and R&D that support the com-
pany’s taxonomy-eligible and -aligned activities, such
as the development of Neste’s existing renewable solu-
tions, are accounted for in the taxonomy figures of the
activity which they support.
Do no significant harm -criteria
The relevant activity-specific DNSH criteria from Annex
I have been evaluated for each taxonomy-aligned eco-
nomic activity. Neste has established and implemented
procedures to minimize any adverse impacts of the
company’s operations on the environment and all Neste
operations must comply with relevant legal requirements
and environmental objectives. Neste’s approach to envi-
ronmental management, including biodiversity, pollution
and water, is further described in the Sustainability state-
ment. The identification of climate risks, including physi-
cal climate risks, is included in Neste’s annual risk man-
agement cycle. The identified climate risks are included
in the Enterprise Risk Management (ERM) process, and
risk mitigation plans are implemented where appropri-
ate. Neste’s material climate-related risks are further
described in the Sustainability statement.
Minimum safeguards
Compliance with the minimum safeguards has been
assessed at the group level based on the Report on Min-
imum Safeguards published by the EU Platform on Sus-
tainable Finance in October 2022. Neste has assessed
its operations to be compliant with the minimum safe-
guards as determined in the Neste Code of Conduct,
which includes the topics of human rights, including
workers’ rights, bribery and corruption, taxation and
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fair competition. No violations have been identified with
the safeguards. Neste’s approach to human rights and
anti-corruption is described in more detail in the S1 Own
workforce, S2 Workers in the value chain and G1 Busi-
ness conduct -sections of the Sustainability statement.
More information about Neste’s compliance program,
including competition law compliance, is disclosed in
the Annual Review. Neste also publishes a Tax Footprint
annually.
Accounting policy
The definitions of taxonomy key performance indica-
tors (KPIs) are based on the Disclosures Delegated Act,
which supplements the Taxonomy Regulation and fol-
lows requirements that apply to the disclosures under
Article 8(2) of Regulation (EU) 2020/852. The taxonomy
reporting scope is aligned with the Consolidated Finan-
cial statements and covers Neste’s global operations.
The calculations follow general materiality principles.
Taxonomy KPIs are calculated using the financial infor-
mation presented in Notes to the Consolidated Finan-
cial statements in Neste’s Annual Report 2024. To avoid
double counting in the reported figures, allocations were
made for each activity separately based on reporting
structures, and a reconciliation has been carried out
for the final figures. Neste does not present a table for
the extent of eligibility and alignment per environmental
objective, as 100% of the KPIs are related to the climate
change mitigation objective.
Turnover
In calculating the proportion of turnover from products
associated with taxonomy-eligible and -aligned eco-
nomic activities, Neste includes revenue from goods and
services which have a clear relationship with the identi-
fied economic activities. Turnover for the manufacture of
biofuels and co-processing includes sales of bio-based
fuels, biofuel credits related to the physical product
and exchange rate hedges. Turnover for infrastructure
enabling low-carbon road transport activity includes
sales from electric charging services. The denominator
is Neste’s total sales and refers to Note 5 Revenue in the
consolidated financial statements.
Capital expenditure
Capital expenditure (CapEx) includes investments
related to activities identified as taxonomy-eligible or
-aligned. The CapEx figures consist mainly of invest-
ments enabling Neste’s renewable production capacity
growth. To provide an accurate allocation of CapEx for
taxonomy-aligned activities, Neste has used the share
of taxonomy-aligned production volumes to allocate the
proportion to the CapEx alignment figures. For exam-
ple, allocations for the manufacture of biofuels activity
are made based on production volumes which fulfil the
GHG emission savings and raw material criteria outlined
in the technical screening criteria for the activity.
The breakdown of the CapEx figures is based on the
Disclosures Delegated Act and includes taxonomy-eligi-
ble and -aligned CapEx. These taxonomy CapEx figures
refer to additions in Note 13 Intangible assets (IAS38) and
Note 14 Property, plant and equipment (IAS16). Right-of-
use assets refer to Note 29 Leases (IFRS16) in the con-
solidated financial statements. However, the taxonomy
figures only include the proportion of the investments
within the scope of the EU taxonomy and therefore can-
not be directly derived from the Notes. CapEx also cov-
ers additions to tangible and intangible assets resulting
from business combinations.
Based on the Disclosures Delegated Act, companies
can report aligned CapEx, when it is a part of a plan
to expand taxonomy-aligned economic activities or to
allow taxonomy-eligible economic activities to become
taxonomy-aligned, as part of a so-called CapEx plan.
Neste’s taxonomy figures include investments made
to expand the production capacity of existing taxono-
my-aligned economic activities, which contribute to the
climate change mitigation objective. Allocations to taxon-
omy-aligned CapEx for these activities are made based
on the production volumes. The taxonomy requires fig-
ures to be restated if the current allocation to taxon-
omy-aligned CapEx is not fulfilled in the scope of the
CapEx plan. The status of the CapEx plan will be fol-
lowed up annually.
Operating expenses
Taxonomy-eligible and -aligned Operating expenses
(OpEx) cover direct non-capitalized expenses related to
research and development, short-term leases (IFRS 16)
and maintenance and repair. OpEx figures also include
costs related to personnel, identified as other direct
expenses related to the day-to-day servicing required
to maintain tangible fixed assets. The allocation of OpEx
to activities that are partially taxonomy-aligned follows
the same methodology as Neste uses in the taxonomy
CapEx calculation, and the expenses are therefore allo-
cated using the share of taxonomy-aligned production
volumes.
Neste’s taxonomy OpEx figures include expenses pre-
sented in Note 9 Other expenses, but since the figures
only include the proportion of expenses within the scope
of the Taxonomy Regulation, they cannot be derived
directly from the note.
Breakdown of the
CapEx KPI
Taxonomy-
aligned
activities (A.1)
Taxonomy-
eligible but not
taxonomy-aligned
activities (A.2)
Additions to property, plant and equipment 833 170
Additions to intangible assets 0 0
Additions to capitalized right-of-use assets 353 68
Additions related to acquisitions 0 0
Total CAPEX (A.1 + A.2) 1,185 238
Breakdown of the
OpEx KPI
Taxonomy-
aligned
activities (A.1)
Taxonomy-
eligible but not
taxonomy-aligned
activities (A.2)
Costs of R&D 51 5
Costs of short-term leases 4 1
Costs of maintenance and repair 89 17
Total OPEX (A.1 + A.2) 144 22
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Financial Year 2024 Substantial contribution criteria DNSH criteria (‘Does Not Significantly Harm’) 2023
Economic activities
Codes
Turnover (MEUR)
Proportion of Turnover (%)
Climate change mitigation
Climate change adaptation
Water
Pollution
Circular economy
Biodiversity
Climate change mitigation
Climate change adaptation
Water
Pollution
Circular economy
Biodiversity
Minimun safeguards
Proportion of Taxonomy
aligned (A.1) or eligible (A.2)
turnover (%)
Category enabling activity (E)
Category transitional activity (T)
A. TAXONOMY-ELIGIBLE ACTIVITIES
A.1. Environmentally sustainable activities (Taxonomy-aligned)
Manufacture of biogas and biofuels for use in transport and of bioliquids CCM 4.13 2,703 13 Y N/EL N/EL N/EL N/EL N/EL Y Y Y Y Y Y Y 18 - -
Manufacture of biogas and biofuels for use in transport and of bioliquids
1)
CCM 4.13 2,605 13 Y N/EL N/EL N/EL N/EL N/EL Y Y Y Y Y Y Y 11 - -
Turnover of environmentally sustainable activities
(Taxonomy-aligned) (A.1) 5,308 26 100% 0% 0% 0% 0% 0% Y Y Y Y Y Y Y 28
Of which Enabling 0 0 0% 0% 0% 0% 0% 0% Y Y Y Y Y Y Y 0 -
Of which Transitional 0 0 0% Y Y Y Y Y Y Y 0 -
A.2. Taxonomy-Eligible but not environmentally sustainable activities
(not Taxonomy-aligned activities)
Manufacture of biogas and biofuels for use in transport and of bioliquids CCM 4.13 689 3 EL N/EL N/EL N/EL N/EL N/EL 4
Infrastructure enabling low-carbon road transport and public transport CCM 6.15 1 0 EL N/EL N/EL N/EL N/EL N/EL 0
Turnover of Taxonomy-eligible but not environmentally sustainable activities
(not Taxonomy-aligned activities) (A.2) 690 3 100% 0% 0% 0% 0% 0% 4
A. Turnover of Taxonomy eligible activities (A.1+A.2) 5,998 29 100% 0% 0% 0% 0% 0% 32
B. TAXONOMY-NON-ELIGIBLE ACTIVITIES
Turnover of Taxonomy-non-eligible activities 14,637 71
Total (A+B) 20,635 100
1)
Share of waste & residue based renewable fuels sold outside of the EU
Turnover
Y Yes, Taxonomy-eligible and Taxonomy-aligned activity with the relevant environmental objective
EL Taxonomy-eligible activity for the relevant objective
N/EL Taxonomy-non-eligible activity for the relevant objective
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Financial Year 2024 Substantial contribution criteria DNSH criteria (‘Does Not Significantly Harm’) 2023
Economic activities
Codes
CapEx (MEUR)
Proportion of CapEx (%)
Climate change mitigation
Climate change adaptation
Water
Pollution
Circular economy
Biodiversity
Climate change mitigation
Climate change adaptation
Water
Pollution
Circular economy
Biodiversity
Minimun safeguards
Proportion of Taxonomy
aligned (A.1) or eligible (A.2)
CapEx (%)
Category enabling activity (E)
Category transitional activity (T)
A. TAXONOMY-ELIGIBLE ACTIVITIES
A.1. Environmentally sustainable activities (Taxonomy-aligned)
Manufacture of biogas and biofuels for use in transport and of bioliquids CCM 4.13 542 27 Y N/EL N/EL N/EL N/EL N/EL Y Y Y Y Y Y Y 32 - -
Manufacture of biogas and biofuels for use in transport and of bioliquids
1)
CCM 4.13 643 32 Y N/EL N/EL N/EL N/EL N/EL Y Y Y Y Y Y Y 35 - -
Close to market research, development and innovation CCM 9.1 0 0 Y N/EL N/EL N/EL N/EL N/EL Y Y Y Y Y Y Y 0 E -
CapEx of environmentally sustainable activities
(Taxonomy-aligned) (A.1) 1,185 59 100% 0% 0% 0% 0% 0% Y Y Y Y Y Y Y 68
Of which Enabling 0 0 0% 0% 0% 0% 0% 0% Y Y Y Y Y Y Y 0 E
Of which Transitional 0 0 0% 0% 0% 0% 0% 0% Y Y Y Y Y Y Y 0 -
A.2. Taxonomy-Eligible but not environmentally sustainable activities
(not Taxonomy-aligned activities)
Manufacture of biogas and biofuels for use in transport and of bioliquids CCM 4.13 228 11 EL N/EL N/EL N/EL N/EL N/EL 9
Infrastructure enabling low-carbon road transport and public transport CCM 6.15 10 1 EL N/EL N/EL N/EL N/EL N/EL 0
CapEx of Taxonomy-eligible but not environmentally sustainable activities
(not Taxonomy-aligned activities) (A.2) 238 12 100% 0% 0% 0% 0% 0% 9
A. CapEx of Taxonomy eligible activities (A.1+A.2) 1,424 71 100% 0% 0% 0% 0% 0% 77
B. TAXONOMY-NON-ELIGIBLE ACTIVITIES
CapEx of Taxonomy-non-eligible activities 573 29
Total (A+B) 1,997 100
1)
Share of waste & residue based renewable fuels sold outside of the EU
Capital expenditure
Y Yes, Taxonomy-eligible and Taxonomy-aligned activity with the relevant environmental objective
EL Taxonomy-eligible activity for the relevant objective
N/EL Taxonomy-non-eligible activity for the relevant objective
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Financial Year 2024 Substantial contribution criteria DNSH criteria (‘Does Not Significantly Harm’) 2023
Economic activities
Codes
OpEx (MEUR)
Proportion of OpEx (%)
Climate change mitigation
Climate change adaptation
Water
Pollution
Circular economy
Biodiversity
Climate change mitigation
Climate change adaptation
Water
Pollution
Circular economy
Biodiversity
Minimun safeguards
Proportion of Taxonomy
aligned (A.1) or eligible (A.2)
OpEx (%)
Category enabling activity (E)
Category transitional activity (T)
A. TAXONOMY-ELIGIBLE ACTIVITIES
A.1. Environmentally sustainable activities (Taxonomy-aligned)
Manufacture of biogas and biofuels for use in transport and of bioliquids CCM 4.13 76 26 Y N/EL N/EL N/EL N/EL N/EL Y Y Y Y Y Y Y 21 - -
Manufacture of biogas and biofuels for use in transport and of bioliquids
1)
CCM 4.13 62 21 Y N/EL N/EL N/EL N/EL N/EL Y Y Y Y Y Y Y 17 - -
Close to market research,development and innovation CCM 9.1 5 2 Y N/EL N/EL N/EL N/EL N/EL Y Y Y Y Y Y Y 3 E -
OpEx of environmentally sustainable activities
(Taxonomy-aligned) (A.1) 144 49 100% 0% 0% 0% 0% 0% Y Y Y Y Y Y Y 40
Of which Enabling 5 4 4% 0% 0% 0% 0% 0% Y Y Y Y Y Y Y 6 E
Of which Transitional 0 0 0% Y Y Y Y Y Y Y 0 -
A.2. Taxonomy-Eligible but not environmentally sustainable activities
(not Taxonomy-aligned activities)
Manufacture of biogas and biofuels for use in transport and of bioliquids CCM 4.13 22 8 EL N/EL N/EL N/EL N/EL N/EL 4
Infrastructure enabling low-carbon road transport and public transport CCM 6.15 0 0 EL N/EL N/EL N/EL N/EL N/EL 0
OpEx of Taxonomy-eligible but not environmentally sustainable activities
(not Taxonomy-aligned activities) (A.2) 22 8 100% 0% 0% 0% 0% 0% 4
A. OpEx of Taxonomy eligible activities (A.1+A.2) 166 56 100% 0% 0% 0% 0% 0% 45
B. TAXONOMY-NON-ELIGIBLE ACTIVITIES
OpEx of Taxonomy-non-eligible activities 128 44
Total (A+B) 294 100
1)
Share of waste & residue based renewable fuels sold outside of the EU
Operating expenses
Y Yes, Taxonomy-eligible and Taxonomy-aligned activity with the relevant environmental objective
EL Taxonomy-eligible activity for the relevant objective
N/EL Taxonomy-non-eligible activity for the relevant objective
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Fossil gas related activities
Template 1 Nuclear and fossil gas related activities
Template 4 Taxonomy-eligible but not taxonomy-aligned economic activities
Neste reports its fossil gas related activities in accor-
dance with the Complementary Climate Delegated Act
(2022/1214). Neste has exposures to natural gas related
activities through its 40% ownership of Kilpilahti Power
Plant Ltd, which is a joint venture company operating
a combined heat and power plant. Taxonomy-eligible
turnover for the activity 4.30. High-efficiency co-gener-
ation of heat/cool and power from fossil gaseous fuel
Row Nuclear energy related activities
1 The undertaking carries out, funds or has exposures to research, development, demonstration and deployment of innovative electricity generation facilities that produce
energy from nuclear processes with minimal waste from the fuel cycle. NO
2 The undertaking carries out, funds or has exposures to construction and safe operation of new nuclear installations to produce electricity or process heat, including for the
purposes of district heating or industrial processes such as hydrogen production, as well as their safety upgrades, using best available technologies. NO
3 The undertaking carries out, funds or has exposures to safe operation of existing nuclear installations that produce electricity or process heat, including for the purposes
of district heating or industrial processes such as hydrogen production from nuclear energy, as well as their safety upgrades. NO
Fossil gas related activities
4 The undertaking carries out, funds or has exposures to construction or operation of electricity generation facilities that produce electricity using fossil gaseous fuels. NO
5 The undertaking carries out, funds or has exposures to construction, refurbishment, and operation of combined heat/cool and power generation facilities using fossil
gaseous fuels. YES
6 The undertaking carries out, funds or has exposures to construction, refurbishment and operation of heat generation facilities that produce heat/cool using fossil gaseous
fuels. NO
Row Economic activities Proportion of turnover
(CCM+CCA) Climate change mitigation Climate change adaptation
Amount % Amount % Amount %
5 4.30. High-efficiency co-generation of heat/cool and power from
fossil gaseous fuels 39 27 39 27 - -
7 Amount and proportion of other taxonomy-eligible but not
taxonomy-aligned economic activities not referred to in rows 1 to 6
above in the denominator of turnover 103 73 103 73 - -
8 Total amount and proportion of taxonomy eligible but not taxonomy-
aligned economic activities in the denominator of turnover 142 100 142 100 - -
includes Neste’s sales of natural gas to Kilpilahti Power
Plant and other fossil gas related turnover relates to
Neste’s natural gas sales to other parties.
Taxonomy-eligible OpEx related to natural gas should
cover direct expenses in accordance with the definitions
in the Disclosures Delegated Act. As there have been
no significant operating expenses during the report-
ing period and the information is financially immaterial,
Neste does not disclose the template for natural gas
related OpEx.
Additionally, CapEx related to natural gas is not dis-
closed because the investments related to the Kilpila-
hti Power Plant are not included in Neste’s total capital
expenditure. Neste did not recognize any nuclear related
activities as defined in the Complementary Climate Del-
egated Act.
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E1 Climate change
Material impacts, risks and opportunities
Neste has identified the following material impacts, risks and opportunities with regards to climate change:
Climate change mitigation
Carbon handprint (entity-specific topic)
Positive impacts Whole value chain Neste’s customers can reduce their dependency on fossil resources and their GHG emissions by utilizing renewable and circular solutions. Neste’s carbon handprint refers
to the GHG emissions reduction achieved by customers when using its products. Additionally, transforming the raw material and product portfolio composition, and
utilizing waste and residues as raw materials instead of fossil-based raw materials leads to GHG reductions and a less carbon-intensive raw material pool. These impacts
apply across the short-, medium- and long-term.
Negative impacts Whole value chain GHG emissions occur upstream in fossil raw material sourcing, in own operations from e.g., refining and other production related activities, and downstream from the use
and further processing of Neste’s products. GHG emissions throughout Neste’s value chain contribute to global warming and climate change, affecting the environment
and society. Global impacts of climate change include changes in water availability, loss of biodiversity, altered weather patterns, more frequent natural disasters (including
sea-level rise and extreme weather events), health risks, economic costs and disproportionate effects on vulnerable communities. These impacts apply across the short-,
medium- and long-term.
Opportunities Whole value chain Demand growth in renewable and circular solutions driven by businesses, regulation and environmentally conscious consumers provides opportunities for Neste, with a
primary financial effect on Neste’s revenues in the long-term. Innovative solutions like new raw materials, products and renewable hydrogen can offer additional revenues
but also higher product value in the medium- and long-term.
Risks Whole value chain Regulatory uncertainty related to implementation of climate policies that support demand for Neste’s solutions and the undermined competitiveness of key raw materials
could lead to lowered product sales or margins in the short-, medium- and long-term.
Climate change adaptation
Opportunities Upstream Capabilities to source and process diverse renewable and recycled raw materials, including wastes and residues, strengthen the flexibility in supply chain. These
capabilities may lead to increased product value and reduce upstream costs in the long-term.
Energy
Negative impacts Own operations Impacts associated with energy consumption are linked to Neste operating in an energy-intensive sector. Energy consumption in Neste’s refining processes, commercial
operations, innovation and R&D are connected to various environmental impacts on short-, medium- and long-term time horizons, such as increased pressure on natural
resources and ecosystems, GHG emissions and global warming and increased pollution and waste. Additionally, energy consumption may contribute to higher energy
costs and potential resource scarcity.
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Processes to identify climate-related
impacts, risks and opportunities
Neste uses scenario analysis and enterprise risk man-
agement to identify and assess risks and opportunities,
and evaluate the resilience and adaptability of Neste’s
strategy to climate change. The risks and opportunities
are incorporated into Neste’s double materiality assess-
ment, further described under ESRS 2 General disclo-
sures. Neste does not conduct a separate climate resil-
ience analysis.
The scope of the annual scenario analysis covers
Neste’s entire value chain at a high level. Analysis includes
assessment of scenario drivers, implications on the
business environment and on Neste’s businesses and
strategy. The analysis focuses on transition risks such as
the anticipated financial effects related to e.g., climate
policy developments. Neste calculates the impacts and
tests its strategy resilience against the scenarios by esti-
mating the impact on Neste’s profitability compared to a
base case, for example. The results are used to support
Neste’s strategy development and financial planning,
and the identified climate risks are included in Neste’s
Enterprise Risk Management (ERM) process. Risk mit-
igation plans are implemented where appropriate, as
described in ESRS 2 General disclosures.
Climate scenarios describing different global warming
outcomes are one of the key input factors. Neste bases
the scenario analysis on the internationally acknowl-
edged climate pathways that represent benchmarks for
the energy industry, for example, published by the Inter-
national Energy Agency (IEA). Neste complements the
climate scenarios through internal analysis and identi-
fication of trends and factors relevant to its business.
The complementary assumptions and weighings vary
between the scenarios. In 2024, the implications for
Neste were analyzed in three climate scenarios:
• Net Zero World 2050, which is in line with the 1.5 °C
pathways;
• Net Zero EU and North America by 2050, consistent
with a 2 °C trajectory; and
• Compromised Climate Targets, reflecting global
warming of 2.5 °C or more by the end of the century.
Each scenario takes into consideration the develop-
ment of global climate ambitions, projections of eco-
nomic growth, globalization and geopolitics and devel-
opment of key technologies. These drivers are relevant
due to their effects on the demand of Neste’s products,
supply and deployment of key and new raw materials,
availability of capital and Neste’s overall position in sup-
porting the global energy transition and global climate
goals.
Neste’s strategic planning focuses on the next 10
years, with the scenario analysis extending to 2050 to
account for the increasing impact of climate change.
The time horizons used in the scenario assessment are
defined as short-term (1–2 years), medium-term (3–5
years) and long-term (over 6 years), to align with and
cover strategic planning, capital allocation as well as
expected lifetime of assets.
Uncertainties related to scenario analysis include the
pace and scope of regulatory changes, technological
advancements, market dynamics, the varying impacts
of climate change across geographies and industries as
well as the use of national or regional data. These factors
affect the considered projections for energy demand, the
adoption of lower-carbon technologies and the global
transition to renewable solutions. The impact potential of
these drivers on Neste are evaluated in short-, medium-
and long term time horizons with varying degrees of
certainty.
Neste believes that the applied scenarios represent
material risks, opportunities and uncertainties related
to climate change. Key climate-related assumptions
made in the financial statements are described in Note
2 Accounting Policies in Neste’s Consolidated Financial
Statements, under the heading ‘Climate related topics’.
The assumptions are based on the same scenario anal-
ysis and identified risks and opportunities as described
in this section. Hence, Neste incorporates application
requirement 15 in the E1 Climate change -standard by
reference to its Financial statements.
Climate impacts
To assess, quantify and manage the impacts to climate,
Neste follows the Greenhouse Gas Protocol guidance
for screening and calculating GHG emission sources
related to its operations and value chain. The evalua-
tion of GHG emissions is integrated into Neste’s invest-
ment processes, to increase transparency and control
the climate impacts of the company’s investments. In
addition to earlier scope 1 & 2 assessments, Neste has
conducted a thorough scope 3 materiality assessment
in 2024 to ensure all relevant scope 3 categories for the
company have been identified. Relevant categories are
selected based on their materiality and business rele-
vance, while ensuring completeness and availability of
consistent emissions data.
GHG- or energy-intensive assets
Neste operates energy- and GHG-intensive assets in its
refineries. Neste has identified its Porvoo refinery and
oil refining business as assets and activities at risk due
to climate policy developments and the transition to a
lower-carbon economy. Neste’s ambition is to gradu-
ally transform the oil refinery in Porvoo, Finland into a
leading renewable and circular solutions refining hub in
the mid-2030’s. Neste ended refinery operations at its
Naantali oil refinery in 2021, and the refinery has been
fully decommissioned. When finalized, the transforma-
tion of Porvoo refinery will complete Neste’s journey to a
100% renewable and circular solutions producer.
Identified risks and opportunities
Neste has identified two material climate-related transi-
tion risks related to climate policy developments. Firstly,
the development in legislation could lead to a competi-
tion disadvantage or to the loss of existing or potential
markets for Neste. The other identified transition risk
relates to policy developments, which could also lead
to the undermined competitiveness of Neste’s key raw
materials. No material physical climate risks were iden-
tified in the double materiality assessment.
The transition to a lower-carbon economy will shift
the energy mix from fossil fuels towards lower-carbon
fuels, and the magnitude of the transition is expected to
depend on technological development and growing use
of a number of more sustainable solutions. Development
of sustainable technologies is expected to continue to
be progressive, supported by relatively stable macro-
economy in the long-term, despite temporary ups and
downs. The growing global population and economic
growth continue to drive increased energy demand, yet
energy efficiency improvements counterbalance the net
impact.
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Potential implications of climate change to Neste
Net Zero World 2050 Net Zero EU and North America by 2050 Compromised Climate Targets
Description Rapid and radical emission reductions globally to meet Net Zero
emissions by 2050 and limit global warming to 1.5°C, building
on the IEA Net Zero 2050 Scenario.
Advanced economies demonstrate strong climate action while
developing economies follow slower, consistent with a 2°C
trajectory, building on the IEA Announced Pledges Scenario.
Failure to take climate action leads to the continuation of the
current trends, causing global warming of 2.5°C to 3°C or more
by the end of the century. Scenario is partly building on the IEA
Stated Policies Scenario.
Opportunities The accelerated global demand for renewable and circular
solutions provides Neste opportunities to leverage global reach,
expand to new markets, and optimize across feedstocks,
countries and customer sectors.
Continued demand growth in renewable and circular solutions;
regulatory markets supported by voluntary climate ambitions.
Modest demand growth in renewable products due to less
favorable regulatory framework gives room for differentiation and
serving selected voluntary markets efficiently.
Risks Accelerated global demand for renewable and circular solutions
and supportive regulatory landscape may present transition
risks related to stringent competition of key raw materials and in
entering new markets.
Identified transition risks relate to regulation limiting the
competitiveness of renewable fuels or narrowing the eligibility of
key raw materials. A decline of fossil fuel demand could also be
seen as a transition risk for Neste’s current business. Risks
related to accelerated alternative technology development have
also been identified.
Transition risks include downscaled regulatory drivers, slowing
down the demand growth for renewable products. In the long-
term, physical risks related to chronic and acute climate change
impacts can have significant negative effects on raw materials
availability, supply chains and assets.
Indicative financial
impact to Neste
Positive Base case Slightly negative
Resilience analysis
Impacts, risks and opportunities identified and assessed
as material in the double materiality assessment are
central to Neste’s strategy and included e.g., in deci-
sion-making considering major investments and capital
allocation. Neste believes to be well positioned to adjust
its strategy and business models to climate change.
Neste’s strategy aims at growing in more sustainable
solutions, which supports business resilience, and for
instance raw material and business model choices can
be adjusted depending on the conditions in the busi-
ness environment.
Policies
Neste addresses material climate-related impacts, risks
and opportunities in the following policies and princi-
ples: Sustainability Policy, Sustainability Principle,
Environmental Management Principle, Neste Sup-
plier Code of Conduct and Operations Excellence
Policy. In addition, the Neste Code of Conduct sets
out the company’s commitment to reduce its emis-
sions, reach its climate targets and use energy-effi-
cient solutions in its operations. The Code of Conduct
is described more in detail in the G1 Business conduct
-section of this report.
The purpose of Neste Sustainability Policy is to
give clear guidance to Neste’s sustainability commit-
ments and governance. The aim, through the Policy, is
to ensure sustainability is embedded in Neste’s everyday
business and to contribute to sustainable development.
This includes ensuring socially, environmentally and eco-
nomically sustainable business conduct in all Neste’s
activities throughout the value chain, while creating
value to the company’s stakeholders. Through Neste’s
climate and other sustainability commitments, the com-
pany wants to show leadership and determination and
play its part in limiting global warming to 1.5°C to meet
the objectives of the Paris Agreement. Neste also recog-
nizes the importance of just transition as envisaged by
the Paris Agreement.
The Sustainability Policy covers IROs related to climate
change mitigation and adaptation, and energy. The CEO,
on behalf of the Board, has the ultimate accountability
for sustainability matters and risk oversight of major sig-
nificance to the Neste Group.
The purpose of the Sustainability Principle is to set
out Neste’s core sustainability commitments and define
what living up to these commitments means. The Prin-
ciple also describes how sustainability and its risks are
managed at Neste. It covers Neste’s approach to cli-
mate change mitigation and climate change adaptation
and sets out Neste’s ambition in relation to renewable
energy and energy efficiency.
The Sustainability Policy and Principle are applicable
in all Neste operating locations and apply to all Neste
employees and to anyone working for or representing
any business entity within the Neste Group. They are
available in English on Neste’s webpage. The Neste Sus-
tainability Policy and Principle addresses several inter-
national frameworks, of which the most relevant ones
for climate change are the Task Force on Climate-re-
lated Financial Disclosure (TCFD) reporting principles to
disclose climate-related financial risks and the ten prin-
ciples of the UN Global Compact.
The Neste Supplier Code of Conduct defines the
minimum climate requirements for the company’s sup-
pliers and business partners. Neste’s suppliers are
expected to, at a minimum, consider the climate impact
of their operations and undertake greenhouse gas
reduction measures where reasonable. More detail on
the Supplier Code of Conduct and its implementation is
provided in the G1 Business conduct -section.
The Neste Operations Excellence Policy and Envi-
ronmental Management Principle further describe
how Neste ensures the efficient use of resources and
energy in its operations. Ensuring the energy efficiency
of investment projects is included in the Environmen-
tal Compliance Analysis, which is executed for all major
investment projects when building new production
capacity or increasing current capacity. The Operations
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Excellence Policy is further described in the S1 Own
workforce -section and the Environmental Management
Principle is further described in the E2 Pollution-section.
General governance, including the highest level of
accountability for policies, and stakeholder engagement
related to policy implementation are described in the
ESRS 2 General disclosures -section of this report.
Transition plan for climate change
mitigation
Increasing the availability of renewable and circu-
lar solutions to reduce reliance on fossil resources is
central to Neste's strategy. Neste’s renewable prod-
ucts enable customers to reduce their GHG emissions.
Neste’s ambition is to gradually transform the oil refinery
in Porvoo, Finland into a leading renewable and circu-
lar solutions refining hub. Neste does not have a sepa-
rate climate transition plan as detailed in the ESRS but
its targets, actions, resource plans and internal carbon
price are intended to support the transition for climate
change mitigation. Neste will evaluate the development
of specific climate transition plan e.g. based on and to
align with the EU Corporate Sustainability Due Diligence
Directive. All Neste’s strategic plans are governed by the
Neste Board of Directors, including actions and related
investments needed to meet Neste’s climate targets.
Neste is excluded from the EU Paris-aligned Bench-
marks (PABs), as the company derives revenue from the
refining of fossil fuels.
Targets
As part of Neste’s sustainability vision, Neste leads
transformation toward a carbon neutral value chain by
2040, including reaching carbon neutral production by
2035. Neste has three quantifiable, time-bound targets
for climate change mitigation (Table: Neste’s targets on
climate change mitigation). Neste’s climate targets are
linked to its overall business strategy, and considered in
financial planning and resource allocation, for example,
through the use of internal carbon price.
Neste’s targets related to climate change mitigation
Targets Target details 2024
Scope 1 & 2:
Reduce GHG emissions
in Neste’s own production by 50% by 2030 compared
to 2019 baseline
Key performance indicator: Absolute Scope 1 & 2 GHG emissions (MtCO
2
e)
Unit: % reduction in tCO2e
Baseline year: 2019
Period: Until 2030
Scope: Own operations
2.68 MtCO
2
e
24% reduction compared
to baseline
Scope 3:
Reduce the use phase emission intensity of sold
products by 50% by 2040 compared to 2020 levels
Key performance indicator: Use phase emission intensity (gCO
2
e/MJ)
Unit: % emission intensity reduction in tCO
2
e
Baseline year: 2020
Period: Until 2040
Scope: Downstream supply chain (sold products)
54 gCO
2
e/MJ
7% reduction compared
to baseline
Carbon handprint: Help Neste’ customers to
reduce their greenhouse gas emissions by at least
20 million tons annually by 2030 with renewable
and circular solutions
Key performance indicator: Reduced GHG emissions by Neste customers with Neste’s products during
the reporting year (compared to fossil fuel) (MtCO
2
e)
Baseline year: n.a.
Period: Annually and until 2030
Scope: Own operations and upstream and downstream value chain,
customer use of products
12.1 MtCO
2
e
For target setting, Neste has been using leading cli-
mate frameworks, such as the Science Based Targets
initiative (SBTi, incl. both the general guidance and the
draft guidance for oil & gas sector), Transition Pathway
Initiative (TPI) (GHG emission intensity pathways incl.
scope 1 & 2 and scope 3 use of sold products based on
IEA Net Zero 2050 scenario) and Exponential Roadmap
Initiative (ERI) (50 % reduction every decade) to guide
the development of climate targets towards being in line
with the latest climate science and the 1.5°C pathways.
Neste has and continues to consider the views of both
internal and external stakeholders when developing and
setting its climate targets. Neste considers its scope 1 &
2 target for 2030 to be in line with the scientific research
and pathways to limit global warming to 1.5°C.
Neste’s GHG emissions reduction targets align with
the GHG inventory boundaries, following the same
scope and category breakdowns and using the same
calculation approach as explained in the reporting prin-
ciples for the climate metrics in this report. The baseline
values for Neste’s climate targets generally represent
the company’s overall activities covered as well as any
external influences that would lead to major deviations
from annual emissions. Key Performance Indicators
(KPIs) associated with targets on scope 1 and 2 are in
accordance with ESRS metrics. Carbon handprint and
related KPI, as well as scope 3 Use phase emission
intensity KPI are entity-specific. Scope 1 & 2 and scope
3 use phase emission intensity targets’ baselines have
been compared to previous years values to ensure no
major changes or external impacts have taken place.
The baseline values include all activities included in the
operational control reporting boundary. Market-based
scope 2 emissions are considered in the scope 1 & 2
target.
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Neste does not have separate measurable, time-bound
and outcome-oriented targets in place for IROs related
to climate change adaptation and upstream IROs related
to climate change mitigation, but does nevertheless
track the effectiveness of its policies and actions as set
out below.
Climate change adaptation: To address the oppor-
tunity to enhance flexibility in the supply chain through
waste and residue raw materials, Neste continues grow-
ing and diversifying its raw materials portfolio. These
actions are relevant for Neste’s upstream activities.
Climate change mitigation: Neste continues to work
with the company’s suppliers and partners to reduce
GHG emissions across its value chain. The scope of
these activities are upstream and downstream scope 3
emissions, e.g., purchased goods, services, transporta-
tion and logistics. Progress will be reflected in relevant
scope 3 GHG emissions.
Progress in targets
Neste’s climate targets are monitored and reviewed as
part of e.g., the remuneration of Neste’s key person-
nel, as scope 1 & 2 and Handprint targets are a perfor-
mance measure in Neste’s long-term incentives (LTIs).
Performance towards climate targets in 2024 is pre-
sented below:
• Scope 1 and 2 GHG Emissions: To date Neste has
achieved 0.83 MtCO
2
e (24%) reduction in its scope 1
& 2 GHG emissions compared to the 2019 baseline
of 3.52 MtCO
2
e.
• Scope 3 Use phase emission intensity: To date
Neste has achieved 7% reduction to its use phase
emission intensity compared to its 2020 baseline of
58 gCO
2
e/MJ.
• Reduced GHG emissions by Neste customers
with Neste’s products (compared to fossil fuel):
In 2024, Neste’s renewable products enabled its
customers to reduce GHG emissions by 12.1 million
tons.
Progress towards targets is in general in line with
planned. Due to the nature of Neste’s operations,
progress towards targets is not expected to be linear
year-on-year but depend on e.g., market conditions
reflected in sales volumes and product mix, and turn-
arounds. There have not been significant changes or
trends that would have affected 2024 performance
towards climate targets. However, Porvoo refinery turn-
around 2024 contributed to lower scope 1 & 2 emis-
sions, while weaker than expected demand and oper-
ational challenges in renewable products led to lower
Carbon Handprint performance.
Identified climate change mitigation levers Relevance for Neste’s climate targets (indicative)
Actions Scope 1 & 2
Scope 3
Use phase
emission intensity Carbon handprint
Renewable
and recycled
raw materials
and reducing
reliance on
fossil fuels
Past actions include:
• Singapore refinery expansion and a joint operation Martinez Renewables
• Naantali refinery closure
Ongoing actions and initiatives under evaluation:
• Production capacity for renewable products, e.g., Rotterdam expansion
• Diversifying raw materials portfolio, increasing the use of raw materials with
lower GHG impact throughout product lifecycle
• On-going investment in recycled raw materials processing capacity in Porvoo
x x x
Renewable
energy
• Continuous: Renewable electricity, such as Power Purchase Agreements and
Guarantees of Origin
• Other initiatives under evaluation: Renewable steam, e.g., renewable energy
boilers and potential future investments
x x
Energy
efficiency and
electrification
• Continuous energy efficiency improvements to e.g. reduce steam consumption
• Future opportunities: Exploring options for electrification of process heating
x x
Replacing
fossil
hydrogen with
alternative
solutions
Initiatives under evaluation
• Evaluate alternative pathways for replacing fossil hydrogen use at refineries
• Explore opportunities to expand to new solutions for sale such as Power-to-X
x x x
Actions
Table below summarizes Neste’s key actions to address
material climate-related impacts, risks and opportuni-
ties, and progress towards its climate targets.
Estimated GHG reduction potential ~1.5 MtCO
2
e of scope 1 & 2 GHG emissions by 2030
Financial resources Reaching Neste’s climate targets are expected to require significant financial resources (>50 MEUR CapEx and/or OpEx)
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Expected outcomes
The expected outcomes of these actions include
reduced scope 1 & 2 GHG emissions, improved energy
efficiency, lower use phase emission intensity of sold
products and higher carbon handprint. These actions
contribute to the management of material negative
impacts associated with GHG emissions from Neste’s
own operations and value chain, energy consumption,
as well as positive impacts related to reduced GHG
emissions by Neste’s customers. Through these actions,
Neste is contributing to the objective of the Sustainabil-
ity Policy to lead transformation towards a carbon neu-
tral value chain.
Resources to implement actions
Implementation of the actions required to meet Neste’s
climate targets are expected to require significant oper-
ational and/or capital expenditures (>50 MEUR). Imple-
mentation of these actions may be subject to individual
investment decisions and depend on various factors,
including external drivers such as supportive policy and
market development. In 2024, relevant material finan-
cial resources allocated to achieving climate targets are
included under Neste’s reporting in accordance with the
EU taxonomy. Neste’s taxonomy reporting also includes
investments made to expand the production capacity
of existing taxonomy- aligned economic activities as
part of a so-called CapEx plan, which contribute to the
climate change mitigation actions described above.
Further information on the CapEx plan is provided in
Neste’s taxonomy reporting.
Internal carbon pricing
Neste applies an internal carbon price for its scope 1 &
2 GHG emissions in investment calculations, business
case evaluations and in strategic planning. The inter-
nal shadow price for carbon is utilized globally, across
Neste’s business areas and functions.
In 2024, Neste’s internal carbon price was 100 EUR/
tCO
2
e in the short term. The internal carbon price is
planned to increase to above 120 EUR/tCO
2
e by 2030.
When setting the internal carbon price, Neste utilizes
various sources, for example the EU Emission Trading
System (ETS) allowance price and forecasts, and other
external references such as carbon prices used in Inter-
national Energy Agency (IEA) climate scenarios. While
the EU ETS is chosen as a source based on its direct
financial relevance for Neste, the IEA also provides indi-
cation of sector- or industry-specific price levels required
to reach the climate goals in the Paris Agreement, espe-
cially for time horizons where the visibility to detailed cli-
mate policies is unclear. Neste regularly reviews internal
carbon price as part of its strategic planning process.
Neste internal carbon price does not cover Scope 3
GHG emissions.
Energy consumption and mix 2024
Fuel consumption from coal and coal products, MWh 0
Fuel consumption from crude oil and petroleum products, MWh 7,322,000
Fuel consumption from natural gas, MWh 858,000
Fuel consumption from other fossil sources, MWh 0
Consumption of purchased or acquired electricity, heat, steam,
and cooling from fossil sources, MWh 1,577,000
Total fossil energy consumption, MWh 9,757,000
Share of fossil sources in total energy consumption, % 80
Total consumption from nuclear sources, MWh 600
Share of consumption from nuclear sources in total energy consumption, % 0
Fuel consumption from renewable sources, including biomass, MWh 994,000
Consumption of purchased or acquired electricity, heat, steam, and cooling
from renewable sources, MWh 1,520,000
The consumption of self-generated non-fuel renewable energy, MWh 10
Total renewable energy consumption, MWh 2,514,000
Share of renewable sources in total energy consumption, % 20
Total energy consumption, MWh 12,272,000
Energy production 2024
Renewable energy production, MWh 1,000
Non-renewable energy production, MWh 176,000
Energy intensity per net revenue 2024
Total energy consumption from activities in high climate impact sectors per net revenue from
activities in high climate impact sectors, MWh/MEUR 595
Metrics
Energy consumption and mix
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Retrospective
Scope 1 GHG emissions Base year (2019) 2024
Gross scope 1 GHG emissions from the consolidated accounting group, tCO
2
eq 2,290,000
Gross scope 1 GHG emissions from investees for which Neste has operational control, tCO
2
eq 0
Gross scope 1 GHG emissions, tCO
2
eq 2,580,000 2,290,000
Percentage of scope 1 GHG emissions from regulated emission trading schemes, % 94
Scope 2 GHG emissions
Gross location-based scope 2 GHG emissions from the consolidated accounting group, tCO
2
eq 470,000
Gross location-based scope 2 GHG emissions from investees for which Neste has operational
control, tCO
2
eq 100
Gross location-based scope 2 GHG emissions, tCO
2
eq 513,000 470,000
Gross market-based scope 2 GHG emissions from the consolidated accounting group, tCO
2
eq 393,000
Gross market-based scope 2 GHG emissions from investees for which Neste has operational
control, tCO
2
eq 0
Gross market-based scope 2 GHG emissions, tCO
2
eq 936,000 393,000
Significant scope 3 GHG emissions
Total Gross indirect (scope 3) GHG emissions, tCO
2
eq 56,490,000
1 Purchased goods and services, tCO
2
eq 7,390,000
3 Fuel and energy-related Activities (not included in scope 1 or scope 2), tCO
2
eq 100,000
4 Upstream transportation and distribution, tCO
2
eq 820,000
5 Waste generated in operations, tCO
2
eq 310,000
9 Downstream transportation, tCO
2
eq 720,000
11 Use of sold products, tCO
2
eq 45,070,000
12 End-of-life treatment of sold products, tCO
2
eq 900,000
15 Investments, tCO
2
eq 1,180,000
Total GHG emissions
Total GHG emissions (location-based), tCO
2
eq 59,250,000
Total GHG emissions (market-based), tCO
2
eq 59,173,000
Gross scopes 1, 2, 3 and Total GHG emissions
GHG intensity per net revenue 2024
Total GHG emissions (location-based) per
net revenue, tCO
2
eq/MEUR 2,871
Total GHG emissions (market-based) per
net revenue, tCO
2
eq/MEUR 2,868
Carbon handprint 2024
Reduced GHG emissions by Neste
customers with Neste’s products during
the reporting year (compared to fossil
fuel), MtCO
2
e 12.1
Reporting principles
Majority of the energy consumption and production
data is collected either from Neste’s own measurement
devices or via energy invoices. Estimates were used for
minor energy consumption sources like small rented
offices and own logistics. Data coverage is estimated
to be > 99 %.
Neste follows GHG Protocol Corporate Standard
and its supplement Corporate Value Chain (Scope 3)
Accounting and Reporting Standard. The reporting
includes emissions of the GHGs covered by the GHG
Protocol (CO
2
, CH
4
, N
2
O, HFCs, PFCs, SF
6
and NF
3
).
Emissions have been converted into carbon dioxide
equivalents.
Scope 1 and 2: Neste’s scope 1 accounting is based
on fuel consumption and emissions calculations. To cal-
culate scope 1 emissions, activity data (MWhs contained
by consumed fuel) is multiplied with site and fuel-spe-
cific emission factors to arrive at the total GHG emis-
sions impact. In cases that the emissions are reported
under EU ETS or other regulations the same emission
factors are used as in these reporting schemes. Other-
wise country based published emission factors are used.
Carbon handprint
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Other relevant GHG emissions than CO
2
are calculated
separately to all combustion taking place in the refinery
facilities and other sources are excluded as negligible.
To calculate scope 2 emissions, activity data (MWhs
of purchased energy consumption) is multiplied by emis-
sion factors to arrive at the total GHG emissions impact
of purchased energy (electricity, heat, steam) use. Mar-
ket-based scope 2 emissions are based on supplier-spe-
cific emission factors when available. In other cases,
residual grid mix or country-specific emission factors
are used. Location-based scope 2 emissions are based
on country-specific emission factors published by IEA,
Motiva and other country based public sources. Emis-
sion factors for CO
2
eq are used when available.
Market-based scope 2 accounting covers contractu-
ally purchased electricity bundled with instruments, such
as Guarantees of Origin (GoOs). Unbundled renewable
energy certificates are not utilized for Neste’s scope 2
market-based accounting. In 2024 86.2% of Neste’s
total electricity usage was covered by GoOs.
Biogenic scope 1 emissions were 421,000 tCO
2
and scope 2 biogenic emissions 58,000 tCO
2
in 2024.
Scope 1 figure include process emissions that are par-
tially based on the estimation.
GHG intensity and energy intensity is calculated
based on the revenue as presented in Note 5 Revenue
in the consolidated financial statements. All Neste oper-
ations in operational control are included in the energy
intensity figure. Neste considers as relevant high cli-
mate impact sectors (based on NACE) activities related
to Neste's refining operations, sale and trading of fuels
and raw materials, retail sale of fuels and related prod-
ucts, shipping operations and other supporting activi-
ties, such as terminal operations.
Scope 3: For the scope 3 GHG emissions, each
reported category can have different methodologies as
detailed in the Technical Guidance for Calculating Scope
3 Emissions from GHG Protocol. Neste has used the
following methodologies per categories: Average data
method (categories 1 & 3); Spend-based method (cat-
egory 1); Supplier-specific method (category 1); Dis-
tance-based method (categories 4 & 9); Waste-type-
specific method (category 5 & 12); Methodology for
direct use-phase emissions according to Standard ISO
14083 (category 11); Investment-specific method (cat-
egory 15); Life Cycle Assessment biofuel regulation
methodology from Renewable Energy Directive (EU)
2018/2001 or from CARB Regulation (categories 1, 4, 9
& 11). Methodologies have been chosen based on the
availability and accuracy of the data and, when possible,
on involvement of a third-party certification process.
When actual GHG emission factors are not avail-
able, industry or location specific GHG emission factors
from industry databases or scientific reports are used.
Sources include European Commission JRC studies,
UK Department for Energy Security & Net Zero, EN
ISO 14083 standard, Renewable Energy Directive (EU)
2018/2001 and Commission Implementing Regulation
(EU) 2022/996, WWF, California Air Resources Board,
Tilastokeskus (Statistics Finland), Ecoinvent, ICCT and
S&P Global.
With upstream (category 4) and downstream (cate-
gory 9) transportation, Neste’s categorization of trans-
portation emissions into upstream and downstream
(product flow approach) differs slightly from the finan-
cial flow approach stated in the GHGP Corporate Value
Chain (scope 3) Accounting and Reporting Standard.
All Neste’s scope 3 GHG emissions are measured
using inputs from Neste specific activities using data
from enterprise resource planning systems for supply,
sales or procurement and from operating systems for
production and site data. Neste’s renewable business
also provides input through product and feedstock bio-
criteria management and traceability systems. 3.4 % of
emissions are calculated using primary data obtained
from suppliers or other value chain partners.
For a part of transportation emission (category 4 & 9)
and purchased goods and services (category 1), in the
case where reliable data is not available, sector average
data is used. For some subsidiaries, joint ventures or
other entities outside Neste’s operational control, esti-
mation based on quantitative data, such as production
capacity, has been done. The estimations are compared
to the known part of activity data and/or use industry
average data, to ensure a sufficient level of accuracy. To
improve access to reliable value chain data, as part of the
company’s actions related to climate change mitigation,
Neste continues to work with suppliers and partners.
Significant scope 3 categories for Neste include cat-
egory 1, 3, 4, 5, 9, 11, 12 and 15. Excluded categories
include:
• Capital goods (category 2): Compared to Neste’s
supplier spend, capital goods spend is not relevant.
Currently capital goods and other purchased
materials are included in category 1 through spend
data.
• Business travel (category 6): based on qualitative
assessment, the significance of the emissions
related to business travel are assessed to be minimal
(<0,5%) compared to other scope 3 categories.
• Employee commuting (category 7): based on
qualitative assessment, the significance of the
emissions related to employee commuting are
assessed to be minimal (<0,5%) compared to other
scope 3 categories.
• Upstream leased assets (category 8): based on
qualitative assessment, Neste does not operate
upstream leased assets and therefore the category is
not relevant.
• Processing of sold products (category 10): based
on qualitative assessment, GHG emissions from the
processing of Neste’s sold products are accounted
for in category 11.
• Downstream leased assets (category 13): based
on qualitative assessment, the significance of the
emissions related to downstream leased assets is
assessed to be minimal (<0,5%) compared to other
scope 3 categories.
• Franchises (category 14): based on qualitative
assessment, the significance of the emissions is
assessed to be minimal based on the overall value of
the aspect as Neste does not engage in franchising
activity.
In the upstream and downstream value chain of Neste,
12.3 Mt of biogenic CO
2
is emitted from the combustion
or biodegradation of biomass.
Use phase emission intensity is calculated by divid-
ing the emissions from the use of products produced by
Neste and sold by Neste (part of scope 3) with the total
amount of sold energy (gCO
2
e/MJ).
Energy and climate metrics described above have
not been validated separately by an external third party.
Some underlying data sources are covered by certifica-
tion and emission trading schemes and related valida-
tion processes.
Carbon handprint: Carbon handprint describes the
difference of carbon footprint of a product or service and
a baseline product or service. The bigger the handprint,
the better. It is expressed in mass, e.g., tons of CO
2
equivalent. In addition to data included in line with the
ESRS 2 General disclosures General basis for prepara-
tion of the Sustainability statement, the metric includes
deliveries from the joint operation Martinez Renewables.
Neste’s customer GHG emissions reduction is cal-
culated by aggregating the customer’s GHG emission
reduction for each batch of renewable products delivered
to Neste’s customers. For each batch of product, Neste
collects the quantity of energy and the emission factor
for the product in gCO
2
e/MJ. Biofuel and biochemical
industry traceability requirements, i.e. Renewable energy
directive, California CARB regulations or CORSIA, ensure
that these emission factors are allocated correctly to a
unique batch by a third party audited biocriteria manage-
ment system. Moreover, these emission factors are cal-
culated based on third-party certified actual production
data, or approved default value, according to industry
and market regulations listed above. Renewable prod-
ucts sold to the petrochemical industry are considered
as combusted as fuels in this calculation methodology.
The GHG emission related to each batch is compared
with the GHG emission that the same quantity of a fossil
fuel reference (baseline) would emit. Emission factors for
the fossil references are dependent on the market where
the product was sold and its regulation.
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The identification and assessment
of material impacts, risks and
opportunities
Neste assesses all of its products according to health
and environmental impacts. This is a regulatory require-
ment for chemicals. Results of these assessments are
documented in e.g. the chemical safety data sheet that
is supplied to customers. Also, the raw materials used
in manufacturing of Neste products are assessed for
health and safety impacts.
Many crude oil based Neste products as well as some
chemicals used in the manufacturing processes in Neste
refineries are or contain substances of concern (SoC)
as defined in the CSRD. The definition of substances
of concern is purely based on the hazard properties of
a substance, not on the likelihood of the exposure or
risk considerations. In all countries of Neste’s operations
there are regulatory requirements, relating to protecting
human health and the environment. The implementation
of such regulations aim to manage the risks from hazard-
ous chemicals. In addition to following and implementing
these requirements, Neste also has its own safety man-
agement system, internal instructions and processes to
follow performance. Part of Neste’s revenue is based on
manufacturing and selling products that contain sub-
stances of concern – chemicals like transportation and
marine fuels. Substances of concern are thus consid-
ered material to Neste, while the safety management
systems are in place to protect people and the environ-
ment from actual impacts.
All Neste operations must comply with relevant legal
requirements and environmental objectives. The legal
requirements have been set by regulators for the pur-
poses of protecting human health and the environment
from pollution. In the EU, for example, an environmen-
tal permit is required for operations that cause a risk of
environmental pollution. The requirements for opera-
tions are based on air and water quality standards set
by the authorities based on latest scientific research.
By following these permit conditions and limits, no sig-
nificant harm is caused to the environment or human
health. Therefore, emissions within the permit limits are
typically not material. Neste reports emissions (emission
components) classified as substances of concern for its
refineries. The selected reporting scope complies with
the general requirement of the E2 Pollution standard for
consolidated emissions from facilities for which the appli-
cable E-PRTR (current IEPR) threshold is exceeded.
Policies
The foundations of safety excellence and continu-
ous improvement are defined by Neste’s Operations
Excellence Policy and Operations Excellence Man-
agement System (OEMS), which includes Operations
Excellence Policy, Principles and supplementary detailed
Standards. The Operations Excellence Policy sets out
Neste’s approach to preventing incidents and ensuring
effective safeguards for people and the environment.
Under the Policy, substances of concern are addressed
through ensuring that product compliance and chemi-
cal safety hazards are effectively managed. More infor-
mation on the Operations Excellence Policy is provided
under S1 Own workforce.
Through the implementation of the Neste OEMS, the
company aims to ensure that product compliance and
chemical safety hazards are effectively managed in its
operations. The OEMS includes the Neste Product &
Chemical Safety Principle, which outlines manda-
tory chemical legislation requirements and their handling
across its operations. It covers the mitigation of mate-
rial risks related to Neste’s use and processing of sub-
stances of concern. Neste is dedicated to product and
chemical safety, ensuring compliance with regulations,
minimizing risks, and fostering a sustainable approach
to chemical management.
The Product & Chemical Safety Principle mandates
the identification of substances of concern. Neste is
actively working towards substituting chemicals with
less harmful alternatives where possible and increas-
ing the use of renewable raw materials and products.
This shift towards renewable resources is key in gradu-
ally reducing the presence of substances of concern in
Neste operations.
E2 Pollution
Material impacts, risks, and opportunities
Neste has identified the following material risk with regards to pollution:
Substances of concern
Risk Across the value chain Neste needs to recognize, evaluate and implement all the existing, emerging and evolving regulatory requirements applicable to Neste’s operations in the area of
chemical compliance and safety. Some of Neste’s products (in the group of crude oil based products) and chemicals used in Neste refineries fall under the category
of substances of concern. Thus, part of Neste’s revenue is based on manufacturing and selling substances of concern. Neste carefully follows and takes due care
in implementing various chemical compliance and safety regulations, like the EU REACH and CLP Regulations, that aim to ensure a high level of protection of
human health and the environment. Failure in this work could pose health or environmental concerns or risk of negative brand or financial impacts.
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Actions and resources
Actions
Key actions during the reporting year include the con-
tinued development of practices in ensuring compliance
and maintaining safety standards and requirements in
Neste’s own operations and the supply chain in accor-
dance with product and chemical safety legislation.
Neste ensures chemical compliance and safety through
implementing internal monitoring systems, maintaining
and developing instructions, training, awareness cam-
paigns, networking and practical tools for managing
product and chemical safety compliance, and conduct-
ing systematic self-assessments and audits to ensure
compliance. These actions are continuous and will be
undertaken also over the medium- to long-term.
Going forward, Neste will continue to develop and
improve internal systems to ensure chemical compliance
and safety, including tools for compliance assurance.
Current actions will also be continued on an ongoing
basis over the long term. Information about how safety
incidents (including those related to substances of con-
cern) is disclosed in the S1 Own Workforce section of
this report.
Expected outcomes
As a result of the actions, Neste expects its products
to continue being in compliance with chemical safety
requirements, while also minimizing chemical compli-
ance or safety incidents.
The progress towards these actions is followed through
continuous monitoring of incidents of non-compliance
concerning the health and safety requirements of prod-
ucts, including the compliance with product and chemi-
cal safety legislation and Neste’s policies and principles.
Resources to implement actions
Implementation of actions related to substances of con-
cern are covered by e.g., process safety investments
under prioritized maintenance operational or capital
expenditures to ensure safety and reliability of oper-
ations. Actions related to compliance with regulatory
requirements for product and chemical safety are busi-
ness-as-usual activities that are not expected to require
significant (> 50 MEUR) financial resources. In addi-
tion, future financial resources allocated to actions listed
above may be subject to individual investment decisions
and depend on various internal and external factors.
The Principle covers all chemicals used, stored,
sold, manufactured, purchased, or imported by Neste,
including substances of concern. It applies to all Neste
employees and anyone working on behalf of the com-
pany, including service providers and contractors. The
implementation of the Principle is a collaborative effort
involving Neste’s Business areas, Procurement, R&D,
and the Safety organization. Business areas are respon-
sible for compliance in sales, trade and production, as
well as the safe handling and disposal of chemicals. The
Safety organization plays a crucial role in identifying reg-
ulatory requirements, raising awareness, providing train-
ing, assessing hazards, and supporting the minimization
of occupational exposure.
The requirements of the Principle are based on legal
requirements applicable to Neste’s operations, including
the REACH and CLP Regulations in the EU, the TSCA in
the US, the Workplace Safety and Health Act in Singa-
pore, and international agreements like the ILO Chemi-
cal Convention. The Principle is available internally in the
Neste Management System and the requirements are
monitored through OEMS audit procedures and contin-
uous internal engagement with relevant stakeholders.
Neste’s Environmental Management Principle
describes key aspects and minimum requirements for
environmental protection and related environmental
improvements in Neste operations, and provides an
approach to ensure such requirements are performed in a
uniform way. Neste operations are responsible for under-
standing and managing their environmental aspects and
impacts. This includes e.g., identifying and mitigating
emissions, as well as recognizing and mitigating poten-
tial environmental risks. For the purposes of avoiding
incidents and accidents with significant environmental
impact, Neste operations identify environmentally critical
operations, systems and equipment, and prepare man-
agement plans accordingly. The Principle also concerns
the management of material risks related to substances
of concern by requiring that production sites evaluate
presence and current or earlier use of substances of very
high concern (SVHCs) and establish a program for risk
management, control or removal and proper handling.
The Environmental Management Principle is applica-
ble to all Neste owned or operated production sites and
terminals and Neste operated logistics, Marketing & Ser-
vices operations and other Neste operations like Tech-
nology and Projects. It is available internally in the Neste
Management System, while a description of the key
contents of the Principle is available publicly. The imple-
mentation of the Principle is done through a dedicated
program during 2024–2026 and furthermore, monitored
through internal audits and monthly environmental com-
pliance reporting.
General governance, including the highest level of
accountability for policies, and stakeholder engagement
related to policy implementation are described in the
ESRS 2 General disclosures -section of this report.
Targets
Neste complies with regulatory requirements for prod-
uct and chemical safety, as described in the Neste
Operations Excellency Policy and Product and Chemi-
cal Safety principle to address impacts associated with
substances of concern in its supply chain and prod-
ucts. Neste does not have separate targets in place with
regards to substances of concern but tracks the effec-
tiveness of its policies with e.g., the below entity-specific
KPI. Neste aims to minimize the number of non-compli-
ances related to the health and safety requirements of
its products. Neste has not defined a base year for the
key performance indicator.
Key performance indicator Performance and progress in 2024
Incidents of non-compliance concerning the health
and safety requirements of products
One case relating to a lacking authority
notification in 2023, which Neste received an
authority warning/notice for in 2024.
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Reporting principles
Substances of concern are recognised and tracked in
Neste’s internal IT systems. There are a variety of existing
regulatory requirements in place for notifying manufac-
tured and imported chemicals and their yearly volumes
to the national authorities. By managing these and many
other EU and national requirements Neste has gathered
depositories of data on hazardous chemicals. Reporting
substances of concern as defined in the ESRS are man-
aged together with the work related to these regulatory
requirements. Neste continues to develop accounting of
substances of concern for CSRD reporting.
Chemical substances
The substance is a substance of concern (SoC) if it
• Is a Substance of Very High Concern (SVHC)
as identified in accordance with the EU REACH
Regulation and added by ECHA to the candidate
list for authorization (subsection i. in the definition of
SoC in EC 2023/2772);
• Has harmonized classification in Part 3 of Annex VI
to CLP Regulation with one of the hazard classes or
hazard categories declared in the subsection ii. in the
definition of SoC in EC 2023/2772;
• Has negative effects on reuse and recycling
according to the EU product-specific ecodesign
requirements. Ecodesign for Sustainable Products
Regulation (ESPR) entered into force in July 2024,
and it establishes a framework for setting ecodesign
requirements on specific product groups.
Chemical substances are identified by the CAS/EC
number that is declared in the SVHC list and in Annex
VI to CLP. Neste has introduced CAS/EC numbers of
the chemicals in the ERP systems so that substances of
concern can be screened and amounts calculated.
None of the chemicals Neste supplies as feedstock
or manufacturers is listed in the SVHC list by ECHA.
However, many of the petroleum products are included
in the Annex VI to CLP due to harmonized classifica-
tion of health effects such as carcinogenicity. Majority
of the reported amounts are from substances that are
hazardous to health because there is no harmonized
environmental classification in CLP Annex VI e.g., for
petroleum products. However, petroleum products have
properties that are hazardous to the environment and
thus self-classified to indicate the environmental haz-
ards. The self-classification is declared e.g., in the safety
data sheets.
Emissions
Production sites shall evaluate SoC emissions that are
identified as significant in accordance with their environ-
mental permits or other authority or legal requirements.
The main reference for the identification is the Annex
II of the Industrial Emission Portal Regulation (EC) No.
2024/1244, which also covers the most significant SoC/
SVHC polluting substances.
In 2024, Neste reports the total amount of substances
of concern that leave its refineries as emissions to the
environment and that can be identified with certainty,
for example based on the CAS number. The report-
ing refers to the Annex II of the EU’s Industrial Emis-
sions Portal Regulation (2024/1244) and focuses on
those substances that exceed the threshold values of
the aforementioned Regulation for air, water and soil. In
terms of air emissions, reported pollutants are carbon
monoxide (over 95% of total reported SoC emissions)
and benzene. Carbon monoxide is formed in the com-
bustion processes, but upon entering the atmosphere,
it oxidizes further into carbon dioxide, which is not clas-
sified as a SoC. Less than 0.1% of total SoC emis-
sions (such as phenol, nickel and zinc) end up in water
courses. These emissions have not been found to have
a significant impact on, for example, the state of receiv-
ing water bodies.
Benzene has been identified and reported as the most
significant SoC substance of NMVOC emissions at the
Porvoo refinery. Neste is aware that other SoC sub-
stances can potentially also be present in NMVOC emis-
sions. The total NMVOC of oil refineries is calculated as
total carbon and the exact composition has not been
reported. As the reporting definitions become more pre-
cise and the general knowledge base accumulates, the
reporting of SoC emissions will be re-evaluated.
Validation by an external body other than the
assurance provider: Neste is subject to annual envi-
ronmental authority inspections and conducts emission
reporting to competent authorities in the EU. Neste shall
annually report to its competent authority data on the
releases to air, water and land of any pollutant listed in
IEPR Annex II for which the applicable threshold spec-
ified in that Annex is exceeded. The authorities assess
the quality of the data, in particular the accuracy, com-
pleteness, consistency and credibility. This process is
based on the requirements of the Industrial Emissions
Portal Regulation (IEPR).
In Singapore the national water agency (PUB) regu-
lates the sewerage system, as well as the treatment and
discharge of industrial wastewater into public sewers.
The industrial wastewater from the Singapore refinery is
discharged to these sewers. If necessary, they must be
treated to specified standards before being discharged
into a sewer.
Incidents of non-compliance concerning the
health and safety requirements of products (enti-
ty-specific KPI), is an incident involving non-compli-
ance with regulations resulting in a fine, penalty or warn-
ing. Incidents of non-compliance concerning the health
and safety requirements of chemicals are reported
according to the Neste management system. The met-
ric is based on the definitions in GRI indicator 416-2.
The KPI has not been validated separately by an exter-
nal third party.
Metrics
Substances of concern,
kilotons
Health hazard
class 2024
Environmental
hazard class 2024
Total amount of substances of
concern that are generated or
used during production or that
are procured
10,467.9 0.0
Amount of substances of concern
that leave facilities as products
6,378.5 22.3
Amount of substances of concern
that leave facilities as part of
products
5,307.1 0.0
Total amount of substances of
concern that leave facilities as
products or as part of products
11,685.5 22.3
Amount of substances of concern
that leave facilities as emissions
0.6 0.0
Total amount of substances of
concern that leave facilities as
emissions, as products, or as
part of products
11,686.1 22.3
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E4 Biodiversity and ecosystems
Material impacts, risks and opportunities
Neste has identified the following material impacts, risks and opportunities with regards to biodiversity:
Direct impact drivers of biodiversity loss
Positive impacts Upstream For renewable products, the use of waste and residue raw materials can contribute to positive impacts for biodiversity in the upstream value chain. These short-term
impacts include reduced pressures or dependencies on deforestation and other land conversion, as well as preventing pollution. Neste is constantly working to diversify its
current portfolio with scalable new raw materials as well as to develop technologies enabling their use.
Negative impacts Upstream Neste’s crude oil supply chain and sourcing of fossil utilities such as natural gas and hydrogen have material short- to medium-term implications for biodiversity and can
lead to negative impacts to terrestrial and marine ecosystems, habitats, and species and soil and marine pollution.
Opportunities Upstream Neste continues to invest in R&D and take advantage of its ability to use difficult waste materials to increase the growth of its waste and residue value chain, thus
further decreasing land use impacts from agriculture in the short-term. Opportunities to expand the raw material portfolio may lead to e.g. strengthened brand
value and/or access to new markets.
Risks Upstream Companies are increasingly expected to ensure their raw materials are sourced responsibly. This means understanding the origin of these materials and their
environmental impacts, such as deforestation. Failure to do so could harm Neste’s reputation. The more stringent regulatory and market requirements towards the
supply chains can also limit the availability of accepted raw materials and increase the costs of the raw material sourcing in the medium-term.
Neste’s material biodiversity-related impacts arise from
the upstream value chain. No material biodiversity-re-
lated negative impacts or negative effects on biodiver-
sity-sensitive areas have been identified for Neste sites.
The company’s evaluation of the biodiversity status
on its own sites indicates that it has some vulnerable
species and habitats to protect on its land in Porvoo
and Naantali, even though the land is for the most part
not considered areas of high biodiversity value. Neste
ended refinery operations at its Naantali oil refinery in
2021, and the refinery has been fully decommissioned.
However, there are forest areas in the area of the former
refinery in Naantali, which the company has voluntarily
protected in accordance with national legislation. The
protected area is three hectares of the total 300 hect-
ares in Naantali. Material negative impacts in Neste’s
value chain are not related to land degradation, desert-
ification and soil sealing.
Processes to identify biodiversity- and
ecosystem-related impacts, risks and
opportunities
Neste has increased its understanding of biodiversity-re-
lated risks and opportunities through holistic materiality
analyses. These assessments have covered both tran-
sition- and systemic biodiversity risks and opportunities.
The initial Neste biodiversity impact and risk materi-
ality assessment was conducted in 2021. Assessment
consisted of in-house interviews focusing on evaluat-
ing anticipated magnitude, irreversibility, frequency and
likelihood of impacts and risks. The approach is aligned
with Intergovernmental Science-Policy Platform on Bio-
diversity and Ecosystem Services (IPBES) recognized
pressures on biodiversity and ecosystem change. Mate-
rial topics were identified in Neste’s supply chain, and
included land use and land use change, fresh water use
and water pollution. The materiality assessment and pri-
oritization of the upstream and direct operations material
biodiversity impacts and risks continued in 2022 with
the Science Based Targets Network (SBTN) methodol-
ogy for nature and further in 2023-2024 within the SBTN
initial validation pilot by assessing, interpreting and pri-
oritizing impacts and dependencies for developing land
and freshwater targets. Methodology includes screening
of key biodiversity aspects and pressures based on ISIC
sector related risk categories.
Engagement with SBTN and the materiality assesment
tool used therein has helped Neste develop its under-
standing of the resilience of its business to biodiversity
related risks. Based on the screening, Neste’s upstream
value chain was identified as material when considering
biodiversity. Collaboration with the non-governmental
organization (NGO) Fauna & Flora has supported Neste
to gain local knowledge of its material supply chains.
The opportunities and dependencies assessments
were further developed in the double materiality assess-
ment process in line with ESRS requirements, including
transition and physical risks and opportunities related
to biodiversity and ecosystems. Neste assessed and
identified also impacts to or dependencies on ecosys-
tems or ecosystem services. Neste continues to assess
and refine its understanding of biodiversity risks and
opportunities.
Neste’s materiality assessments for biodiversity have
been conducted with internal stakeholders and exter-
nal biodiversity experts, including Fauna & Flora and
SBTN. As described in the ESRS 2 General section
of this report (see Stakeholder engagement and Dou-
ble materiality assessment process), Neste engages
with local communities, production site neighbors and
other stakeholders to identify and mitigate biodiversity
impacts in the value chain. Neste is participating in land-
scape initiatives in Brazil and in Indonesia, where collab-
oration with local communities has provided insights on
biodiversity in Neste’s upstream renewable value chain.
Affected communities have not directly been involved in
Neste’s biodiversity materiality assessment.
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The work done so far does not yet fulfill all ESRS
requirements for a resilience analysis of Neste’s busi-
ness model to biodiversity-related transition and sys-
temic risks.
Identified impacts, risks and opportunities
Neste’s crude oil supply chain and the sourcing of nat-
ural gas can lead to implications for land and marine
ecosystems, habitats and species, as described in the
impact descriptions under E4 Biodiversity and ecosys-
tems Material impacts, risks and opportunities -table.
Neste aims to advance circular economy and resource
efficiency for example through utilising waste and res-
idue raw materials in the production of its renewable
products. As a result, the demand for virgin materials
could be decreased, alleviating the pressure on natu-
ral resources and reliance on crude oil and other fossil
resources.
Neste undertook biodiversity baseline inventories at its
Porvoo and Naantali sites in Finland between 2022 and
2023 to identify potential mitigation measures. Certain
areas with moderate biodiversity values with potential
for biodiversity impact mitigation were defined, based
on national and European regulation.
Policies
Neste’s key policies and principles concerning biodi-
versity are the Sustainability Policy and the Neste
Supplier Code of Conduct. Additionally, the Sustain-
ability Principle, Responsible Sourcing Principle
and Supplier Sustainability Approval Principle set
requirements for how biodiversity matters are consid-
ered in the company’s upstream value chain and in its
relationships with suppliers. The Neste Code of Con-
duct sets Neste’s commitment on reducing environmen-
tal impacts, which includes strengthening the protection
of biodiversity and high conservation value areas, pro-
moting and supporting the resilience of their natural val-
ues as well as eliminating deforestation.
Neste Sustainability Policy includes promoting
sustainable land and water use and minimizing pollu-
tion. Neste Sustainability Principle further defines
what living up to these commitments means. Neste is
committed to protecting the natural environment in the
areas where it operates, as well as the surrounding com-
munities. The company continuously monitors environ-
mental quality, including air, marine, and groundwater,
and is committed to rectifying any potential environmen-
tal damage caused by its operations.
The Sustainability Principle also sets out Neste’s com-
mitment on biodiversity in its sourcing activities. Neste
is committed to preventing deforestation in its supply
chain. Neste avoids the conversion of habitats with valu-
able biodiversity for biomass production and encour-
ages strengthening the protection of biodiversity and
high conservation value areas. The company accepts
only renewable raw materials that fulfill the regulatory
requirements for traceability at minimum. The Sustain-
ability Policy and Sustainability Principle are described
more in detail in the E1 Climate Change -section of this
report.
More detailed biodiversity requirements for Neste’s
renewable raw material suppliers are set out in the Neste
Responsible Sourcing Principle. Neste expects its
suppliers to share its commitment to promote posi-
tive impacts and prevent habitat conversion. Through
its business activities and interventions, Neste works to
eliminate deforestation and habitat conversion, as well as
other environmental impacts. The Responsible Sourcing
Principle covers the management of material biodiversi-
ty-related impacts, risks and opportunities related to the
sourcing of renewable raw materials.
The Responsible Sourcing Principle prohibits sourcing
from areas where feedstock production has adversely
affected land use and habitat conversion of forested
areas, wetlands, grasslands, and other natural ecosys-
tems. The Responsible Sourcing Principle also con-
tains requirements on community land rights and food
security, sustainable land practices, direct impact driv-
ers of biodiversity and impacts on ecosystem services,
the extent and condition of ecosystems and the state of
species.
All Neste’s renewable raw material suppliers are
approved in accordance with the Neste Supplier Sus-
tainability Approval Principle, which outlines require-
ments relevant for the protection of biodiversity, such
as the traceability of renewable raw materials. The Prin-
ciple and the outlined approach for sustainability due
diligence supports the management and mitigation of
Neste’s material impacts and risks related to biodiversity
in its renewable raw material value chain. The Principle
is described in detail within the G1 Business conduct
-section of this report.
In accordance with the Neste Supplier Code of Con-
duct, Neste’s suppliers are encouraged to establish and
implement procedures to minimize any adverse impact
of its operations on the environment, while also demon-
strating continuous improvements. Neste does not have
a specific policy covering sustainable oceans practices
in its value chain, but the Supplier Code of Conduct
addresses environmental impacts, including impacts
on oceans. The Supplier Code of Conduct contributes
to the mitigation of Neste’s material impacts and risks
related to biodiversity and covers several factors that
directly contribute to impacts on biodiversity, such as
emissions to air and water.
General governance, including the highest level of
accountability for policies, and stakeholder engagement
related to policy implementation are described in the
ESRS 2 General disclosures -section of this report.
Transition plan for biodiversity and
ecosystems
All Neste’s material biodiversity impacts, risks and oppor-
tunities are related to systemic green transition in soci-
ety. The key strategic choice by Neste that addresses
material impacts, risks and opportunities related to bio-
diversity is the growth in renewable and circular solu-
tions, as well as the decision to gradually transform Por-
voo oil refinery into a renewable and circular solutions
refining hub. Neste continues to work toward increas-
ing the availability of renewable and recycled raw materi-
als, while developing technologies to diversify its current
portfolio with new scalable raw materials.
Neste is also addressing its material biodiversity risks
through landscape initiatives. These projects aim to pre-
vent deforestation, develop sustainability awareness and
drive structural change to promote forest conservation
in Neste’s renewable raw material supply chain.
Neste has utilized the SDG Compass by the United
Nations Global Compact to identify Sustainable Devel-
opment Goals (SDGs) that are the most significant for
the company. The company’s work on biodiversity con-
tributes to SDG 15 - Life on land - on protecting, restor-
ing and promoting sustainable use of terrestrial ecosys-
tems. In addition, Neste’s sustainability vision contributes
towards the Global Biodiversity Framework target 1 to
reduce biodiversity loss. The EU Biodiversity Strategy
goal of prioritizing renewable energy solutions favorable
to biodiversity is promoted by Neste through the use of
waste materials instead of crop-based raw materials.
Targets
As part of its sustainability vision, Neste aims to drive
a positive impact on biodiversity and achieve a nature
positive value chain by 2040. Neste is committed to
develop its biodiversity approach and science-based
methodology to assess, prioritize, mitigate and track
impacts identified for land, water and pollution, in line
with EU Corporate Sustainability Due Diligence Direc-
tive. This commitment supports the policy objectives of
Neste Sustainability Policy, Responsible Sourcing Princi-
ple and Supplier Code of Conduct. Neste does not have
separate measurable, time-bound and outcome-ori-
ented targets specific to upstream material biodiversity
impacts, risks and opportunities. Neste tracks the effec-
tiveness of policies and actions through other relevant
metrics and key performance indicators. These include
for example, KPIs under the E1 Climate change and G1
Business conduct -sections of this report, which focus
on the reduced reliance on fossil resources and driv-
ing environmental sustainability within the supply chain,
respectively.
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Actions and resources
Actions
To cover its biodiversity-related impacts, risks and oppor-
tunities in its upstream value chain, Neste works with
suppliers to implement the Supplier Code of Conduct
requirements. Neste’s due diligence process for its sup-
pliers are further described as part of the G1 Business
conduct -section. The company has evaluated crude oil
sourcing opportunities with the aim to reduce impacts
to the environment and ensure suppliers have sufficient
environmental policies and practices in place.
With Fauna & Flora, Neste continued in 2024 to develop
and validate its biodiversity methodology. Through the
SBTN validation pilot, key development areas for Neste’s
renewable supply chain were identified. Neste identifies
which areas of its raw material supply chain to prioritize
for action and pilot requirements for land targets.
Going forward, Neste will continue to assess biodiver-
sity risks, prioritize material supply chains and develop
impact mitigation activities e.g., through landscape
engagement initiatives. Neste is developing action plans
on land, water and pollution across the value chain.
Local and indigenous knowledge has not been directly
incorporated in the actions reported above. Actions
related to material upstream impacts, risks and oppor-
tunities do not include nature-based solutions. Scope
of the actions is in the upstream value chain, especially
focused on the sourcing of renewable raw materials.
Neste expects current and planned actions to take place
over the short, medium and long-term.
Expected outcomes
These actions are expected to mitigate biodiversity risks
in Neste’s supply chains, and eventually reduce impacts
identified for land, water and pollution and enhance
waste material utilization, in line with Neste’s Sustainabil-
ity Policy and other biodiversity and ecosystems-related
policy commitments.
Resources to implement actions
Implementation of the actions reported above are not
expected to require significant (> 50 MEUR) financial
resources. Actions and resources related to Neste’s cli-
mate targets and to reduce reliance on fossil fuels are
described under E1 Climate change.
Impact metrics related to biodiversity
and ecosystems change
Neste follows key frameworks and engages in collab-
orations in developing impact metrics related to biodi-
versity. For example, Neste has been collaborating with
Fauna & Flora and SBTN to develop a methodology for
Neste.
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E5 Resource use and circular economy
Material impacts, risks and opportunities
Neste has identified the following material risks and opportunities with regards to resource use and circular economy:
Resource inflows, including resource use
Opportunity Upstream value chain Circular economy and enhanced recovery and utilization of waste materials can increase the availability of new raw materials, for example by collecting and utilizing
used cooking oil (UCO) and liquefied waste plastics (LWP). This presents a medium-term opportunity for Neste to strengthen sales volumes or reduce the costs
associated with raw materials.
Risk Upstream value chain Price volatility of renewable waste and residue raw materials and recycled raw materials due to e.g. challenges in material availability, or competition within or
outside of the industry. This poses a short-term risk for Neste, impacting raw material costs.
Considering E5 Resource use and circular economy,
four aspects are relevant for Neste’s strategy and busi-
ness model: renewable and recycled raw materials,
resource efficiency and environmental impacts in own
operations, renewable and circular products and inno-
vation and collaboration. Based on the double mate-
riality assessment, upstream risks and opportunities
related to renewable and recycled raw materials were
deemed material for Neste.
• Renewable and recycled raw materials:
Neste is committed to resource efficiency and
circular economy practices, ensuring sustainable
management of resources throughout its operations.
Neste is constantly working to diversify its current
portfolio with scalable new raw materials as well as
to develop technologies enabling their use.
• Resource efficiency and environmental impacts
in own operations: All sites operated by Neste are
required to be aware of any significant environmental
impacts related to their operations, including issues
related to waste generation. Waste in Neste’s own
operations is handled by contracted third parties
locally. Neste follows the local waste legislation in
its operations and is also continuously seeking new
opportunities to minimize the waste sent to landfill
and find new waste recovery solutions.
• Renewable and circular products: Neste’s
renewable and circular solutions have significantly
lower GHG emissions over the product life cycle
when compared to fossil alternatives. Neste’s
renewable and circular solutions cater to the
demanding needs of transportation, aviation, marine
and other industrial uses, as well as the chemical
and plastics industries.
• Innovation and collaboration: Innovation has
enabled Neste’s transformation from a local oil
refining company towards global leadership in
renewable and circular solutions. The focus of
Neste’s innovation work is about exploring new
business opportunities around scalable future
raw materials and related technologies. Neste
collaborates with various stakeholders, including
governments, industries, and academic institutions,
to advance circular economy solutions and ensure
the widespread adoption of sustainable practices.
By leveraging advanced technologies and fostering
partnerships, Neste is driving the transition towards
a more sustainable and circular economy. Neste
invests in research and development to enhance
the sustainability of its products. In 2024, Neste’s
R&D expenditure was EUR 86 million in innovation,
research and development, and testing raw materials
and the technologies that could enable their use.
The above elements of Neste’s strategy and business
model support resilience with relation to the risks and
opportunities identified regarding resource use and
circularity.
Policies
The policies and principles described below are uti-
lized to manage Neste’s material risks and opportuni-
ties related to the use of renewable and recycled raw
materials.
Through the Neste Sustainability Policy, Neste
commits to using natural resources responsibly and
actively working towards a more sustainable resource
and energy-efficient value chain by providing solutions
taking advantage of waste and residue raw materials and
contributing to a circular economy. In the related Sus-
tainability Principle, Neste sets out relevant require-
ments for the sustainable sourcing and use of renewable
resources, in alignment with relevant regulatory require-
ments. More detailed information regarding the Sustain-
ability Policy and Principle is available under the E1 Cli-
mate change -section.
Neste’s key principles relating to the sustainabil-
ity of its renewable raw material supply chains are the
Neste Supplier Code of Conduct and the Respon-
sible Sourcing Principle. Additionally, The Supplier
Sustainability Approval Principle sets the minimum
sustainability requirements for approving renewable raw
material suppliers. The Supplier Code of Conduct, appli-
cable for all Neste’s raw material suppliers, and the Sup-
plier Sustainability Approval Principle are described more
in detail under G1 Business Conduct.
In addition to the Supplier Code of Conduct, renew-
able raw material suppliers need to comply with Neste’s
Responsible Sourcing Principle. Neste expects its
suppliers to have the same commitment to promote
positive impacts and to prevent habitat conversion
throughout its supply chain. Neste works to eliminate
deforestation, habitat conversion, and other social and
environment negative impacts. The Responsible Sourc-
ing Principle is aligned with relevant regulatory require-
ments, such as the EU RED II and the US Renewable
Fuels Standard (RFS), and the UN Guiding Principles on
Business and Human Rights.
Neste monitors the implementation of these princi-
ples through rigorous sustainability due diligence, as
described in the G1 Business Conduct -section. Gen-
eral governance, including the highest level of account-
ability for the policy, and stakeholder engagement related
to policy implementation are described in the ESRS 2
General disclosures -section of this report.
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Targets
To address the material risks and opportunities related
to resource use and circular economy, Neste continues
to strengthen and expand its raw materials portfolio and
global sourcing capabilities. Neste does not have sep-
arate measurable, time-bound and outcome-oriented
targets in place for the material risks and opportunities
related to resource use and circular economy but does
nevertheless track the effectiveness of its policies and
actions as described in the section below.
Actions and resources
Actions
Neste’s main actions related to resource use and circu-
lar economy are producing renewable and circular solu-
tions and investing in research and development.
These actions span over the short-, medium and long
term and are further described below.
• Explore new markets and sourcing capabilities
globally: Neste continues to work towards increasing
the availability of renewable and recycled raw
materials. The company sources renewable raw
materials globally for its renewables refineries in
Finland, the Netherlands and Singapore, and for its
joint operation in California in the U.S.
• Developing technologies to diversify raw material
portfolio: Neste develops technologies to diversify
the raw materials portfolio with new scalable raw
materials. Neste has also invested in technologies for
chemical recycling, which will enable the conversion
of hard-to-recycle plastic waste into high-quality
feedstock for new plastics.
• Expanding raw material portfolio e.g. through R&D
and innovation: Neste continuously searches for
even lower-quality waste and residues for use in
the production of fuels, polymers and chemicals.
Neste is also exploring novel vegetable oils from
regenerative agricultural practices. In the long term,
e.g., renewable hydrogen and lignocellulosic waste
and residues can be viable more sustainable raw
material alternatives.
• Continuous development in supplier relationships:
Neste expects all its business partners and suppliers
to uphold the company’s policies and principles,
including the Neste Supplier Code of Conduct, which
is a key element of its supplier management system.
To align with the material risks and opportunities iden-
tified, the scope of the actions is especially focused on
the company’s upstream value chain and the use of
renewable (particularly waste and residue) and recycled
raw materials. These activities do not include remedia-
tion actions.
Expected outcomes
By implementing these actions, Neste aims to manage
the identified material risks and opportunities related to
the use of renewable (particularly waste and residue)
and recycled raw materials. The actions are also related
to the implementation of the objectives in Neste’s Sus-
tainability Policy on providing solutions taking advan-
tage of waste and residue raw materials and contribut-
ing to a circular economy.
Resources to implement actions
Implementation of the actions listed above are expected
to require significant (>50 MEUR) financial resources.
Implementation of these actions may be subject to indi-
vidual investment decisions and depend on various fac-
tors, including external drivers such as market develop-
ment and supportive policy environment.
Metrics
Resource inflows 2024
Overall total weight of products and technical and biological materials used during
the reporting period, tons 15,285,000
Biological materials, % 25
The absolute weight of secondary reused or recycled components, secondary
intermediary products and secondary materials used to manufacture Neste’s
products and services, tons 2,000
Secondary reused or recycled components, secondary intermediary products and
secondary materials used to manufacture Neste’s products and services, % 0
Reporting principles
The following materials are included in the resource
inflow metric:
• Total weight of renewable and fossil raw materials
used in production, including co-processed volumes;
• Purchased hydrogen used in production;
• Natural gas used in production;
• Recycled (liquefied waste plastic) raw materials used
for production;
• Ethanol used in production;
• Propane used in production (purchased externally);
• Raw materials used for blending.
The metrics described above have not been validated
separately by an external third party. Neste’s material
risks and opportunities related to resource inflows are
linked to the use of biological materials, which include
renewable raw materials used by Neste, and recycled
raw materials, which includes the use of liquefied waste
plastics in production. Neste uses only sustainably-pro-
duced renewable raw materials that fully meet the sus-
tainability requirements specified in the legislation in
its key markets. Neste further addresses sustainability
in its renewable fuel production chain through certifi-
cations such as European Commission-approved vol-
untary schemes like ISCC EU and national verification
schemes. All Neste renewable product refineries have
EU-compliant International Sustainability and Carbon
Certification (ISCC) certificates. The data for resource
inflows metrics are collected directly from Neste’s inter-
nal source systems.
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Social information
S1 Own workforce
Material impacts, risks and opportunities
Neste has identified the following material impacts, risks and opportunities with regards to own workforce:
Working conditions: Health and safety
Negative impact Own operations Neste’s own employees’ health and safety could be directly impacted in the short-term due to hazardous processes in the company’s operations.
Risk Own operations Workplace injuries and/or ill-health of Neste’s employees can represent a short-term risk for the company. Injuries, sick leave costs, and potential safety related process
shutdowns could lead to various financial effects from one-off costs to prolonged production disruptions.
Opportunity Own operations With a robust safety management system Neste aims to prevent injuries, reduce sick leaves and downtimes caused by incidents and accidents. Neste aims to implement
preventive measures for health and safety hazards.
Safety is a precondition for sustainable business at
Neste. Ensuring and improving safety and operational
excellence enables Neste to achieve its safety vision
of “No Harm. Together”. Safety is an integral part of
Neste’s values and culture in creating a psychologi-
cally safe and open working environment. Material risks
and opportunities related to employee safety arise from
dependencies on Neste’s workforce. Ensuring a robust
safety management system can enable Neste to prevent
and reduce negative impacts on employees working at
the company’s refineries and sites. Safety awareness
and understanding of hazards, risks and opportunities
enables managing safety systematically and effectively.
All Neste’s own employees are included in the scope of
disclosure in this report.
Material negative impacts related to the health and
safety of Neste’s employees may affect its employees
working on production sites, in commercial operations
or in construction and maintenance projects. Impacts
related to health and safety can range from individual
cases to more widespread or systemic cases. Neste
operates in a high-hazard industry and systematic safety
management is key in safeguarding individuals and the
environment, as well as protecting the company’s oper-
ations, assets, information and brand from any harm and
negative impact. Workplace assessments and regular
safety reporting support Neste in developing an under-
standing of the material negative impacts that may affect
its employees.
Policies
Working conditions
The following policies, principles and management sys-
tems are in place at Neste to address impacts, risks
and opportunities related its own workforce, i.e. own
employees’ health and safety, workplace injury and/or
ill-health:
Neste People Policy provides a framework for
Neste’s people processes and practices to support exe-
cuting company strategy and improve the business per-
formance. Neste’s values – we care, we have courage,
we cooperate – create the foundation for a values-led
culture, inclusive leadership and ways of working. The
Policy also outlines Neste’s commitment to a safe and
healthy workplace. The Policy is applicable to the whole
Neste Group. A summary of the Policy is available on
the Neste website, while the Policy as a whole is avail-
able internally in the Neste Management System.
Neste Operations Excellence Policy and
Operations Excellence Management System
The foundations of safety excellence and continu-
ous improvement are defined by Neste’s Operations
Excellence Policy and Operations Excellence Man-
agement System (OEMS). OEMS includes Opera-
tions Excellence Policy, Principles and supplementary
detailed Standards. The requirements of the OEMS are
applicable to all employees of Neste and to anyone
working for or representing any business entity within
the Neste Group. The objectives of Operations Excel-
lence at Neste are to:
• Prevent fatalities, injuries, and incidents;
• Ensure effective safeguards that protect people, the
environment, and property;
• Assure employee and contractor health and
wellbeing;
• Manage product compliance and chemical safety
hazards;
• Sustain asset integrity and reliable operations;
• Optimize resource and energy use;
• Ensure product and service quality meets customer
needs;
• Comply with laws, regulations, and permits; and
• Drive continuous improvement in OEMS
implementation.
The Neste OEMS is based on the principles of continual
improvement and process-based thinking and aligned
with ISO Standards 9001, 14001 and 45001. The lead-
ership teams of Neste’s business areas and functions
are responsible for executing the requirements of the
Policy in daily operations and the implementation of the
Policy is monitored through on-site OEMS audits within
the company’s operations. Neste organizations in scope
of the OEMS are covered by an internal audit specified
in the company’s Continual Improvement Principle. This
means that each Principle (element) is covered by an
internal audit every three years. The Policy is available
publicly on Neste’s website, while detailed Principles
and Standards are available internally in the Neste Man-
agement System. The Policy covers impacts, risks and
opportunities related to employee safety, and defines
Neste’s approach to the prevention of accidents at the
workplace.
The Safety Leadership Principle sets the mini-
mum requirements and expectations for safety lead-
ership and accountability within Neste. The Princi-
ple includes Neste’s Life Saving Rules and Stop Work
Authority and covers impacts, risks and opportunities
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related to employee safety. The Principle is applicable to
all employees of Neste and to anyone working for or rep-
resenting any business entity within the Neste Group. It
is available internally in the Neste Management System.
Members of the Neste Leadership team are responsible
for overseeing the implementation of the Safety Lead-
ership Principle in business areas and functions, where
relevant.
Human Rights
Neste Human Rights Principle describes Neste’s
commitment to respect human rights and engage in the
remediation of adverse human rights impacts through-
out its business operations and value chains. As stated
in the Principle, Neste demonstrates and meets this
commitment by implementing, and acting in accordance
with, the United Nations Guiding Principles on Business
and Human Rights (UNGPs) and OECD Guidelines for
Multinational Enterprises. Neste respects internationally
recognized human rights as set out in the International
Bill of Human Rights (consisting of the Universal Decla-
ration of Human Rights, the International Covenant on
Civil and Political Rights and the International Covenant
on Economic, Social and Cultural Rights) and the prin-
ciples concerning fundamental rights set out in the ILO
Declaration on Fundamental Principles and Rights at
Work.
The Human Rights Principle explains how Neste
implements an ongoing process of human rights due
diligence to identify, prevent, mitigate and account for
how it addresses adverse human rights impacts on
people. This covers actual and potential human rights
impacts that Neste may cause or contribute to through
its own activities, or which may be directly linked to its
business operations, products or services. The Principle
outlines seven priority areas for human rights at Neste:
Fair Employment, Health & Safety, Equity, Diversity &
Non-Discrimination, Children & Young Workers, Modern
Slavery, Fair Treatment, and Economic, Social & Cultural
Rights.
Stakeholder engagement is a key component of
Neste’s human rights due diligence activities. Neste
implements stakeholder engagement as an ongoing
process of interaction and dialogue with its affected
stakeholders, including its own employees, employees
of contractors and service providers, supply chain work-
ers, communities and customers. The Human Rights
Principle also outlines Neste’s approach to remediating
adverse impacts. Neste provides access to appropri-
ate and effective remedy by making efficient grievance
mechanisms available. Where Neste identifies that it has
caused or contributed to adverse impacts, Neste pro-
vides for or cooperates in remediation through legitimate
processes intended to deliver remedy. Where adverse
impacts have occurred that Neste has not caused or
contributed to, but which are directly linked to Neste’s
activities through its business relationships, Neste seeks
to use its leverage to prevent or mitigate the risk of the
impacts continuing or recurring.
The Human Rights Principle explicitly addresses traf-
ficking in human beings, forced labour or compulsory
labour and child labour. It also specifically addresses
discrimination and harassment, and the promotion of
equal opportunities and other ways to advance diver-
sity and inclusion. The Human Rights Principle prohib-
its discrimination on the basis of any grounds, includ-
ing race, ethnicity, age, gender, gender identity, sex,
sexual orientation, disability, medical condition, genetic
information, color, religion, country of origin, nationality,
ancestry, caste, marital status, pregnancy, dependants,
social class, role, union membership, political views or
any other characteristic protected by local law or regula-
tion. This applies to all areas of employment. The Neste
Human Rights Principle applies to the entire Neste group
and is publicly available on Neste’s website.
Major updates to the Human Rights Principle are
informed by extensive consultation with both internal
and external stakeholders. During the external con-
sultation process, Neste seeks recommendations for
improvements from a range of recognized topic experts,
such as human rights NGOs, government representa-
tives and trade union experts. Internally consultation and
feedback is gathered broadly with for example Sustain-
ability, Human Resources, Safety, Public Affairs, Compli-
ance and Legal.
General governance, including the highest level of
accountability for policies, and stakeholder engagement
related to policy implementation are described in the
ESRS 2 General disclosures -section of this report.
Processes for engaging with own
workers and workers’ representatives
Continuous engagement and communication ensures
information sharing with and consultation of employees
at Neste. Neste conducts global employee engagement
surveys annually to understand how the company’s
operations impact its employees and what expectations
employees have on Neste. The surveys engage employ-
ees directly on a range of topics, like, engagement, strat-
egy, belonging, leadership, wellbeing and safety. The
global employee engagement survey results are regu-
larly discussed, and both measures and action plans are
agreed and followed within teams at each level of the
organization. The effectiveness of the defined actions
is evaluated e.g. based on the employee engagement
score in the next conducted survey. The EVP, People &
Culture is responsible for ensuring these engagement
activities take place at Neste.
At a local level, employee cooperation is driven by
local requirements in each country of operation. Neste
is committed to following applicable local collective
agreements. Neste also has local cooperation bodies; In
2024, there is a cooperation committee or works coun-
cil in Finland, the Netherlands and Singapore.
Neste’s Safety Leadership Principle sets requirements
for engaging the workforce in occupational health and
safety issues, development of work practices, investiga-
tion of incidents and risk assessments throughout Neste
globally. Neste conducts OEMS audits to follow the ful-
filment of requirements and evaluate the effectiveness of
the processes and management system. The President
and CEO and members of the Neste Leadership Team
are responsible for overseeing the implementation of the
Safety Leadership Principle in business areas and func-
tions, where relevant.
Safety topics are further discussed in team safety dis-
cussions, with the purpose of enabling sharing of knowl-
edge and experience and learning directly between team
members. Team leaders are accountable for ensuring
that team safety discussions are held regularly, and tar-
get frequency and amount of team safety discussion are
defined on the organization-level. Feedback from the
team safety discussions is used to improve safety man-
agement and culture in the organization.
Processes to remediate negative
impacts and channels for own workers
to raise concerns
Grievance channel
Neste provides mechanisms for employees to express
concerns or grievances without fear of retaliation, and
is committed to addressing issues fairly, confidentially
and promptly. Neste’s process for reporting and han-
dling grievances is described more in detail under the
G1 Business Conduct -chapter. Adverse impacts are
remediated by providing and promoting access to griev-
ance mechanisms and complaints channels, and by
cooperating in the remediation of the adverse impacts
that Neste has caused or contributed to.
Remediation process for material negative
impacts related to employee safety
In addition to general grievance channels, Neste’s Haz-
ard Identification, Risk Assessment and Control
Principle includes processes, Standards and Work
Procedures for workers to identify, assess and control
workplace hazards. Key common requirements include
process hazard analysis, process risk classification, pro-
cess safety information and work risk management.
Neste applies the hierarchy of controls to guide hazard
elimination and control. All Neste’s employees and con-
tractors have the license to use the Stop Work Authority
which authorizes anyone to stop work and remove per-
sonnel from hazardous situations.
Neste’s OEMS also includes Emergency Manage-
ment and Crisis Management Principles. The pur-
pose of these principles is to ensure sufficient capability
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Targets Key performance indicator
Performance and
progress in 2024
1)
Permanent annual safety target of zero
fatalities and serious accidents in own
operations.
Total fatalities, own employees 0 fatalities
Long term target to continuously reduce
the risk of all accidents and increase the
number of Safe Days in own operations.
Process Safety Event Rate (PSER) in
own operations
2)
1.3
Total recordable injury frequency (TRIF)
in own operations
2)
2.2
1)
Excludes green-field expansion projects where Neste is not responsible for the construction site.
2)
Includes contractors working on Neste’s sites.
exists in Neste’s businesses to be able to detect and
effectively respond to emergent situations which have
the potential to impact health and safety of workers and
the environment. Neste’s businesses are expected to
meet the requirements of these principles to ensure this
capability is in place.
Neste’s OEMS Incident Learning Standard underpins
the process by which workers can report hazardous situ-
ations, engage in incident learning and identify improve-
ment actions. When a safety incident or near miss is
reported, relevant corrective actions are defined and
executed and the effectiveness of these actions is fol-
lowed up in the responsible organization. OEMS audits
are also used to assess the effectiveness of safety pro-
cesses within Neste.
Targets
Neste’s safety targets contribute to the safety-related
commitments set out in the Operations Excellence pol-
icy, Safety Leadership Principle and People policy.
Neste’s safety targets have been set in line with Neste’s
safety vision “No harm. Together”, Neste’s Operations
Excellence Policy, Neste Safety Leadership Principle
and industry best-practices to ensure minimal harm to
the company’s own workforce. The targets are contin-
uous and compared to the company’s performance in
the previous year. Key performance indicators on total
fatalities and total recordable injuries (TRIF) are in accor-
dance with ESRS metrics, while Process Safety Event
(PSER) is an entity-specific KPI.
Neste engages in a dialogue with its own workforce to
share the safety vision through for example, I Act Safe
workshops. Neste incorporates changes as needed,
including changing safety targets, tracking performance
and identifying lessons or improvements as a result of
performance.
Progress in targets
In 2024, Neste’s occupational safety performance (TRIF)
2.2 did not meet the target level (1.8). Process safety
performance (PSER) was 1.3, which also did not meet
the target level (0.9). Improvements were achieved in
TRIF which reduced from 2.3 in 2023 to 2.2, while pro-
cess safety performance was behind 2023 performance
where PSER was 1.2. Neste’s safety performance and
performance in targets is reviewed monthly, including at
Neste Leadership Team and at every Board of Directors
meeting.
Actions and resources
Actions
Neste’s process for identifying and addressing health
and safety matters is in line with its safety vision. Neste’s
Safety Leadership Principle outlines the expectations and
accountabilities for safety leadership across all employ-
ees and anyone working for the company. The founda-
tion of safety excellence and continual improvement is
defined by Neste’s OEMS, which includes Operations
Excellence Principles and supplementary detailed stan-
dards. The requirements extend not only to the compa-
ny’s employees but also to its suppliers and partners.
Key actions around safety of own workforce are in line
with Neste Operations Excellence Policy:
• Continual improvement of the maturity of
Neste’s Operations Excellence Management
System: This activity is aimed at establishing high
impact safety improvement programs in Neste’s
businesses. Key initiatives include conducting safety
workshops and enhancing safety leadership and
culture through training. In addition, Neste aims to
improve process safety, through the design and
construction of safe facilities, operations, life cycle
asset management and regular inspections. Neste
Process Safety Fundamentals (PSF), a learning
resource with best practices for enhancing process
safety understanding among frontline workers in their
daily tasks, are also being implemented.
• Safety included in prioritised maintenance
OpEx and CapEx: Incorporating safety into
projects such as investments, change initiatives,
and turnarounds remained Neste’s focus in
2024. Neste places significant emphasis on
organizational learning to ensure its success in this
area. Additionally, strengthening safety protocols,
improving hazard identification and risk assessment
processes are part of these actions.
• Prevention of fatalities and serious incidents:
Neste’s Life Saving Rules serve as guidance for
preventing fatal and life-changing injuries and
incidents, empowering everyone with the authority,
as well as the responsibility, to stop work when
necessary to ensure their own or others’ safety.
Neste also conducts comprehensive safety training
through Neste’s Process Safety Fundamentals and
I Act Safe workshops.
These actions are continuous and part of Neste’s daily
operations and practices. Action areas are developed in
line with Operations Excellence Policy. Furthermore, it is
ensured that the above practices do not cause or con-
tribute to any further impacts on Neste’s own workforce.
These initiatives are focused on Neste’s own workforce,
with some additional initiatives aimed at contractors and
value chain workers. The effectiveness of the safety pro-
cesses at Neste is followed through regular monitoring
of the safety performance in the organization and OEMS
audits in Neste’s own operations.
Expected outcomes
These activities are expected to lead to an enduring cul-
ture for safety and effective control of hazards and risks.
Through these actions, Neste can improve the proactive
identification and mitigation of workplace hazards, and
reduce the incidence of injuries. The progress and effec-
tiveness in the actions is monitored through Neste’s tar-
gets described above (TRIF, PSER).
Resources to implement actions
Safety-related investments are part of prioritized mainte-
nance operational or capital expenditures to ensure safety
and operational reliability. Future financial resources allo-
cated to safety and actions listed above may be subject
to individual investment decisions and depend on vari-
ous internal and external factors.
Neste’s targets related to health and safety of own workforce
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Headcount by gender
Gender 2024
Male 3,830
Female 1,744
Total employees 5,574
The total number and rate of employees who have left Neste during the reporting period
2024
The total number of employees
who have left the Neste during the reporting period 1,184
The rate of employee turnover
in the reporting period, % 21.2
Headcount by Neste’s main countries
Country 2024
Finland 3,439
United States (USA) 870
The Netherlands 511
Singapore 451
Others 303
Total 5,574
Headcount by contract type, broken down by gender in 2024
Female Male Total
Number of employees 1,744 3,830 5,574
Number of permanent employees 1,641 3,294 4,935
Number of temporary employees 36 55 91
Number of non-guaranteed hours employees 67 481 548
Number of full-time employees 1,648 3,733 5,381
Number of part-time employees 96 97 193
Headcount by contract type, broken down by region in 2024
Europe Americas Asia-Pacific Total
Number of employees 4,203 878 493 5,574
Number of permanent employees 4,062 385 488 4,935
Number of temporary employees 86 0 5 91
Number of non-guaranteed hours employees 55 493
1)
0 548
Number of full-time employees 4,010 878 493 5,381
Number of part-time employees 193 0 0 193
1)
US: Based on local legislation, no contractual obligation exists to offer the employees specified under this group a minimum or fixed number of
working hours per day, week, or month. However, in practice, employees specified under this group have typically worked full-time hours in 2024.
Health and safety 2024
Percentage of people in own workforce who are covered by health and safety management
system 100%
Number of fatalities in own workforce as result of work-related injuries 0
Number of fatalities in own workforce as result of work-related ill health 0
Number of fatalities in own workforce as result of work-related injuries and work-related ill health 0
Number of fatalities as result of work-related injuries of other workers working on Neste's sites 0
Number of fatalities as result of work-related ill health of other workers working on Neste's sites 0
Number of fatalities as result of work-related injuries and work-related ill health of other workers
working on Neste's sites 0
Number of recordable work-related accidents for own workforce
1)
29
Rate of recordable work-related accidents for own workforce
1)
2.8
1)
Excludes green-field expansion projects where Neste is not responsible for the construction site.
Health and safety
Metrics
Characteristics of Neste’s employees
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Reporting principles
Headcount: The reported headcount reflects the end
of the reporting period (31.12.2024) and includes all
Neste employees. The headcount typically increases
during the summer months due to the summer train-
ees. The total headcount compared to previous year
has decreased due to organizational change and related
change negotiations. Note 8 Employee benefit costs
in the Consolidated Financial statements includes the
number of personnel in the reporting year. The number
in the Financial statements is reported as an average
and does not include temporary hourly workers.
Neste does not disclose employee figures for the cat-
egories ‘Other’ and ‘Not reported’ in the Headcount by
gender table. The main countries presented in the Head-
count by Neste’s main countries breakdown include
countries where Neste has employees representing at
least 10% of its total number of employees, and coun-
tries where Neste has production capacity.
The rate of employee turnover includes the num-
ber of permanent employees who have resigned or
left due to dismissal, retirement, death or mutual con-
sent divided by number of permanent employees (incl.
non-guaranteed hours permanent employees in the US)
at the end of the reporting period.
Safety
Workplace accidents are those accidents that occur
at work or while performing work duties. Total Record-
able Injuries (TRI) includes the recorded accidents at
work which result in absence from work, restriction
to work, medical treatment or fatality. Reported fatal-
ities include workplace accidents or accidents during
work-related travel causing an injury resulting in death
within one year of the day of the accident.
Total Recordable Injury Frequency (TRIF): The
formula for calculating accident frequency (number of
accidents at work per million working hours): total num-
ber of accidents at work × 1,000,000 / hours worked.
Neste’s entity specific KPI for TRIF includes contractors
working on Neste’s sites, while ESRS-metrics related to
health and safety refer to Neste’s own employees.
Process Safety Event Rate (PSER) is the rate of pro-
cess safety events per million hours worked. It includes
PSE1 and PSE 2 cases in Neste’s own operations.
PSE1 (Process Safety Event) is an unplanned and
uncontrolled release of any material, including non-toxic
and non-flammable materials, from a process resulting
in a consequence according to the PSE1 classification.
Possible consequences:
• Injury leading to absence (LWI, RWI) or fatality.
• A hospital admission and/or fatality of a third party.
• Fires or explosions with direct costs (excluding loss
of production) higher than EUR 100,000.
• An officially declared community evacuation
or community shelter-in-place, including
precautionary community evacuation or community
shelter-in-place.
• An unignited release of material greater than or equal
to the threshold quantities described in the American
Petroleum Institute (API) Recommended Practice
(RP) 754 Table 1, in any 1-hour period.
• Pressure relief discharge / upset emission to
atmosphere that exceeds the PSE1 threshold value
and has one or more of these consequences:
Rainout; Discharge to a potentially unsafe location;
An on-site shelter-in-place or on-site evacuation,
excluding precautionary on-site shelter-in-place or
on-site evacuation; Public protective measures,
including precautionary public protective measures.
PSE2 (Process Safety Event) is an unplanned and
uncontrolled release of any material, including nontoxic
and non-flammable materials from a process, resulting
in consequences according to the PSE2 classification.
Possible consequences:
• Workplace accident requiring medical treatment
(MTC).
• Fires or explosions with direct costs (excluding loss
of production) higher than EUR 2,500.
• An unignited release of material greater than or equal
to the threshold quantities described in API RP 754
Table 1, in any 1-hour period.
• Pressure relief discharge / upset emission to
atmosphere that exceeds the PSE2 threshold value
and has one or more of these consequences:
Rainout; Discharge to a potentially unsafe location;
An on-site shelter-in-place or on-site evacuation,
excluding precautionary on-site shelter-in-place or
on-site evacuation; Public protective measures,
including precautionary public protective measures.
All incident and near miss cases are recorded in Syn-
ergi as per the Incident Learning standard and related
instructions. If these cases are related to the process
safety, they will get PSE classification in Synergi. Cases
with PSE1 and PSE2 classification are taken into account
in determining the PSER value.
Hours worked: The hours worked by the whole per-
sonnel and contractors during the period under review.
When recording the working hours of contractors, an
estimate (e.g. accounting hours) can be used if the accu-
rate number of hours is not known.
The metrics related to own workforce described
above have not been validated separately by an external
third party.
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S2 Workers in the value chain
Material impacts, risks and opportunities
Neste has identified the following material impact with regards to workers in the value chain:
Other work-related rights: Forced labor
Negative impacts Upstream value chain Forced labor in the value chain can severely impact workers by harming their physical and mental health, restricting their freedom, eroding their dignity, and depriving them
of basic human rights. Value chain workers at risk of forced labor include workers in Neste’s upstream supply chains for renewable raw materials, and third-party workers
carrying out construction and maintenance activities at Neste’s refineries. Migrant workers are a particularly vulnerable group.
Neste’s core business model and strategy is not assessed as being a direct cause of forced labor, yet Neste is exposed to forced labor risks through its business
relationships, particularly in high risk geographies and sectors where forced labor is a systemic issue. These systemic issues present long-term, ongoing risks that
necessitate continuous mitigation efforts.
Neste has proactively adapted its actions to ensure
effective modern slavery risk mitigation. Neste uses a
bespoke, industry leading, country risk assessment
methodology from Verisk Maplecroft to map modern
slavery risks for the countries in which the company
operates and has supply chains. Neste implements rig-
orous human rights due diligence measures, such as
risk assessments, supplier onboarding surveys, on-the-
ground sustainability audits, and audiovisual worker
voice surveys. Additionally, the company actively par-
ticipates in multi-stakeholder coalitions to collectively
address and combat these structural issues within its
supply chains.
While Neste acknowledges that modern slavery can
be found in all countries and industries, the company
has identified its renewable products supply chains in
the palm oil sector
1)
in Southeast Asia as having the
highest risks for child, forced and indebted labor, with
migrant workers being particularly vulnerable to negative
impacts in these supply chains. As detailed in Neste’s
modern slavery statements, this is based on the results
of a third-party corporate-wide human rights impact
assessment by BSR on Neste’s business and value
chains (2016); social and labor studies on the ground in
Indonesia and Malaysia (2015–2016); supplier engage-
ment activities (2015–2024); findings from sustainability
audits (2017–2024); an ethical recruitment survey of the
company’s Malaysian palm suppliers (2020); collabora-
tion in various multi-stakeholder initiatives (2016–2024),
and ongoing work to map the company’s supply chains
and assess human rights risks by sector and geography.
Based on the assessments, these forced labor risks are
systemic, pre-existing structural issues in the palm indus-
try in Southeast Asia, and not caused through Neste’s
business model or strategy.
In its own operations, Neste has identified construction
and maintenance projects at its refineries in Singapore,
Rotterdam and Porvoo as being high risk for exploit-
ative practices and forced labor. During such projects,
large numbers of third-party construction and mainte-
nance workers temporarily work onsite at Neste’s refin-
eries, with numbers peaking during refinery shutdowns,
turnarounds and expansion projects. This includes third-
party migrant workers who may not be familiar with the
local working language, culture, labor standards or legal
requirements, which makes them more vulnerable to
becoming victims of labor exploitation.
Recognizing these risks and understanding that
exploitation is systemic in the construction industry,
Neste has proactively adapted its sustainability work to
safeguard the rights of third-party and migrant workers
on its sites.
Policies
The following policies and principles within Neste cover
the management of material impacts related to forced
labor in Neste’s upstream value chain:
The Neste Code of Conduct applies to the entire
Neste Group and contains the key human rights require-
ments and expectations with which all Neste employees
are to comply in their daily work. The Code of Conduct
is described more in detail in the G1 Business conduct
section.
Neste’s minimum human rights requirements for sup-
pliers are outlined in the Supplier Code of Conduct,
which references the Universal Declaration of Human
Rights and ILO Fundamental Principles and Rights at
Work. The Supplier Code of Conduct prohibits child
labor and all forms of forced and compulsory labor. It
also explicitly requires that all Neste suppliers ensure any
recruitment fees and associated costs are not borne by
their workers, and that all employees are made aware of
the key terms of their employment prior to commitment
to work. These requirements are aimed at reducing the
risk of precarious work, in combination with minimum
requirements for suppliers to ensure a safe and secure
workplace and comply with local labor laws. Human
trafficking is included under Neste’s definition of forced
labor, as explained in Neste’s supplementary Supplier
Code of Conduct Guide for Suppliers. The supplemen-
tary guide also provides further references to specific
applicable ILO standards, such as the ILO Minimum Age
Convention, 1973 (No. 138). The Supplier Code of Con-
duct is described in more detail in the G1 Business con-
duct section.
The Neste Human Rights Principle describes
Neste’s commitment to respect human rights and
engage in the remediation of adverse human rights
impacts throughout its business operations and value
chains. It explains Neste’s approach to implementing the
UN Guiding Principles on Business and Human Rights
and carrying out ongoing human rights due diligence
and stakeholder engagement. The Human Rights Princi-
ple sets the standards for a rights-based approach in all
of Neste’s business decisions. As stated in the Principle,
Neste encourages and supports its business partners to
continually improve and develop beyond the minimum
requirements in the Supplier Code of Conduct to reach
the human rights standards and expectations set out in
the Human Rights Principle.
In accordance with the Human Rights Principle, Neste
will not engage in or support the use of any form of forced
or child labor, and is committed to identify, assess and
address these risks in its global operations and value
chains. This includes all situations of exploitation that a
1)
Neste does not source crude palm oil but uses different palm oil industry residues in the production of renewable fuels.
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person cannot refuse or leave, because of threats, vio-
lence, coercion, abuse of power or deception, including,
but not limited to trafficking in persons, slavery, servitude,
forced marriage, forced labor, compulsory labor, debt
bondage, involuntary prison labor, deceptive recruiting
for labor or services, and child labor. The Principle also
prohibits practices that can lead to forced labor such as
document retention, recruitment fees, deceptive prac-
tices regarding employment contracts and violations
of freedom of movement. The Human Rights Principle
is described in more detail in the S1 Own Workforce
-section.
The Responsible Sourcing Principle sets out addi-
tional requirements for all Neste’s renewable raw material
suppliers. The Principle includes Neste’s commitment to
respect the human rights of all workers and commu-
nities in its supply base. Neste is committed to proac-
tively prevent adverse human rights impacts throughout
its business operations and value chains.
Neste communicates about the above policies on
forced labor in various ways, including, for example
making policies available on Neste’s public website in
various languages, implementing mandatory e-learnings
on policies for Neste employees, and providing training
workshops for contractors, suppliers and sub-suppliers.
General governance, including the highest level of
accountability for policies, and stakeholder engagement
related to policy implementation are described in the
ESRS 2 General disclosures -section of this report.
Processes
Neste conducts ongoing human rights due diligence in
its operations and supply chains to identify, prevent, miti-
gate and, where necessary, remediate the occurrence of
forced and child labor. Human rights due diligence refers
to an ongoing risk management process and activities
carried out to identify, prevent, mitigate and/or remedy
human rights risks, such as developing internal pro-
cesses, carrying out impact assessments, risk mapping
and gap assessments. Due diligence activities may be
carried out internally by Neste and/or by credible third
party experts on Neste’s behalf.
In addition, Neste has a sustainability due diligence
process in place for renewable, recycled and fossil raw
material suppliers. Forced labor risks, as well as potential
incidents are monitored as part of the due diligence pro-
cess. Neste has put in place ongoing management pro-
cesses to identify, prevent, mitigate and remedy adverse
human rights impacts. The company continuously
monitors and tracks the effectiveness of its response,
with transparent reporting and communication on how
impacts are addressed. Neste’s Sustainability unit has
the operational responsibility for ensuring Neste’s ongo-
ing human rights due diligence and the related stake-
holder engagement mechanisms.
Processes for engaging with value chain
workers about impacts
Stakeholder engagement, including engagement with
workers in the value chain, is a key component of Neste’s
human rights due diligence. Neste implements stake-
holder engagement as an ongoing process of interac-
tion and dialogue with its affected stakeholders in order
to hear, understand and respond to their interests and
concerns, including through collaborative approaches.
Neste takes a proactive approach in identifying affected
and potentially affected stakeholders, and the best ways
to engage with them or their legitimate representatives,
paying special attention to individuals and groups who
may be particularly vulnerable to adverse impacts.
Neste seeks to engage with potentially affected groups
early on and before decisions are made, not only when
a decision is imminent or a situation is already escalat-
ing. Neste seeks to take the perspectives of affected
stakeholders into account in its decision-making, and in
designing prevention, mitigation and remediation actions
to address adverse human rights impacts. Neste takes
steps to design stakeholder engagement processes that
are inclusive, participatory, accessible, transparent, cred-
ible, culturally-appropriate, context-specific and gender
sensitive. When assessing human rights risks, the com-
pany pays special attention to vulnerable groups such
as women, children, migrant workers and Indigenous
peoples.
Neste engages with value chain workers both directly
and through representatives. Examples include:
• Audiovisual worker voice technology: Neste has
implemented worker voice technology to scale up
the number of workers the company engages with
in its operations and value chains, and to improve
the company’s overall understanding of workers’
experiences. The technology uses an audiovisual
survey to enable direct and anonymous engagement
with workers via mobile devices. The surveys are
designed to be easily accessible for illiterate workers,
can be taken in their mother-tongue language, and
function even in remote regions without internet
access, allowing Neste to engage with even the
most vulnerable groups of workers. The technology
is used on an ongoing basis throughout the year
across Neste’s global sourcing regions. The worker
voice surveys provide direct insights from value
chain workers on a range of topics including but
not limited to indicators of forced labor, recruitment
fees, children’s rights, living wages, inequality, living
standards, and issues impacting vulnerable groups
such as young workers, migrant workers, women
and workers with disabilities. The insights gathered
through these engagements inform the annual
human rights saliency assessment, which underpins
Neste’s human rights policies, and approach to risk
mitigation.
• Sustainability audits: Neste’s sustainability audits
prioritize the assessment of impacts on people and
identifying any signs of forced labor. The audits in the
company’s upstream supply chains for renewable
raw materials include one-on-one interviews with
different employee groups, including management,
workers with different job profiles, third-party
employees and, when possible, union or worker’s
committee representatives.
• Human rights impact assessments: Neste
assesses human rights risks when planning to enter
new sourcing regions for its renewable raw materials.
This can involve on-the-ground field research
and interviews with rights-holders and/or their
legitimate representatives. For example, in 2023-24,
Neste collaborated with third-party experts at the
Solidaridad Foundation to assess the human rights
impacts associated with its Brazilian supply chains.
The assessment included gender-sensitive interviews
with various groups, including representatives of
value chain workers and Indigenous peoples.
• Engaging with third-party workers on Neste
sites: Neste engages actively with third-party
workers at its refineries through a variety of practices
designed to ensure open communication and
support. The company prioritizes educating third-
party workers on their labor rights during site-entry-
permit inductions and social toolbox meetings.
These sessions provide a safe space for two-way
conversations, allowing workers to voice concerns
and discuss social issues directly with Neste
representatives. In addition, Neste actively promotes
the availability of site-level grievance channels and
suggestion boxes, encouraging workers to share
feedback and concerns in a manner that respects
their anonymity and safety. Recognizing that migrant
workers are a particularly vulnerable group, Neste
ensures that key engagement materials are available
in the languages most commonly spoken by these
workers, for example, site induction pamphlets and
posters informing workers of their rights and how to
spot and report signs of exploitation.
The effectiveness of engagement channels is primarily
assessed through direct worker feedback and ongo-
ing monitoring of the number and quality of responses
received via different engagement channels.
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Processes to remediate negative impacts
and channels for value chain workers to
raise concerns
Neste is committed to the remediation of adverse human
rights impacts in its business operations and value
chains, in accordance with its Human Rights Principle.
Neste provides access to appropriate and effective rem-
edy by making efficient grievance mechanisms available
to its rights-holders, including at the operational level
and site level and seek to ensure that grievances are
addressed early and remediated directly.
Where Neste identifies that it has caused or contrib-
uted to adverse impacts on the human rights of others,
the company provides for or cooperates in the reme-
diation of the adverse impacts through legitimate pro-
cesses intended to deliver an appropriate and effective
remedy. This may include cooperating in good faith in
the provision of remedy through state-led mechanisms,
such as the OECD national contact points.
Where adverse impacts have occurred that Neste
has not caused or contributed to, but which are directly
linked to Neste’s activities through its business relation-
ships, Neste seeks to use its leverage to prevent or miti-
gate the risk of the impacts continuing or recurring. This
may include supporting the company’s business part-
ners in the remediation of those impacts through their
own grievance management processes, or support col-
laboration to provide for non-judicial remediation through
third parties.
Neste takes seriously any allegations that human
rights are not properly respected in its business or supply
chains, and encourages individuals, communities, busi-
ness partners or other stakeholders who have reason
to believe such activity is taking place to raise their con-
cerns, without fear of retaliation, via Ethics Online. Ethics
Online is further described under G1 Business conduct
-section of the report. Ethics Online is available 24/7
and is accessible in multiple languages. Reports can be
made anonymously via phone or web service, and can
be made by anyone, including value chain workers.
Neste has established procedures for tracking and
processing grievances at the group-level, including a
cross-functional team that ensures speed and consis-
tency in managing grievance cases and assessing the
effectiveness of its actions. The company publicly dis-
closes and tracks the number and type of grievances
that have been raised in person or via Ethics Online.
Neste has also established permanent site-level com-
plaints channels at its refineries to address concerns
of contracted and subcontracted workers, including
migrant workers. These channels, accessible via both
suggestion boxes and QR codes on posters discreetly
placed around the sites, enable workers to submit anon-
ymous complaints directly to Neste. The posters inform
workers of their rights in various languages and use
illustrations and simple terminology to encourage them
to report situations in which they may be experienc-
ing exploitation. The complaints are received and man-
aged by local committees, who implement remediative
actions and assess the effectiveness of these actions
on an ongoing basis. Workers also have the option to
report concerns directly to supervisors, or to use Neste’s
company-wide Ethics Online whistleblowing channel. All
channels guarantee confidentiality and protection from
retaliation.
Neste maintains a publicly available log of sustainabil-
ity-related concerns and complaints raised in its renew-
able raw materials supply chains on its website. This
grievance log is updated on a monthly basis to include
new grievances, provide status updates on the remedia-
tion of existing grievances, and track the effectiveness of
the remedial actions taken. Reports documented in the
grievance log may involve cases of forced labor or severe
human rights issues. The log also encompasses cases
of actual or suspected non-compliance with the UN
Guiding Principles on Business and Human Rights, the
ILO Declaration on Fundamental Principles and Rights at
Work, and the OECD Guidelines for Multinational Enter-
prises that involve value chain workers. Descriptions of
the nature of such cases are provided within the log. In
addition, Neste reports annually on the percentage of
human rights and labor violations identified through its
sustainability audits, which also assess compliance with
these international standards. Certain cases are further
detailed in Neste’s annual Modern Slavery Statement to
provide additional context and transparency.
Neste encourages its suppliers to put in place appro-
priate complaints channels and grievance mechanisms
that workers can use to report actual or suspected
cases of human rights violations, and have transpar-
ent processes for receiving and following up on reports.
This is outlined in the Neste Supplier Code of Conduct
Guide for Suppliers and included as a regular topic in
Neste-led capacity building sessions for its renewable
raw materials suppliers. Neste uses worker voice tech-
nology and in-person interviews conducted during sus-
tainability audits to assess whether value chain workers
are aware of and trust the grievance channels in their
workplace as a way to raise their concerns and have
them addressed.
Targets
Human Rights are part of Neste’s sustainability vision,
as Neste aims to create a more equitable and inclusive
value chain by 2030, in which everyone works with dig-
nity. Neste is committed to implement and sustain com-
prehensive sustainability due diligence across its own
Key performance indicator Performance in 2024
Human Rights Due Diligence
carried out for key business areas/functions
(# and description)
1)
Four major assessments/initiatives undertaken in 2024:
1) Corporate-wide assessment to review
Neste’s salient issues and mitigation actions.
2) Human rights impact & risk assessment
completed for the potential construction and
operation of a new unit at Porvoo Refinery.
3 Human rights due diligence assessments
completed for Neste-owned terminals in
Finland, Rotterdam and Baltics.
4) Living wage gap assessments completed
for Neste’s own employees globally.
1
) See description of Human Rights Due Diligence process under ‘Processes’.
operations and supply chains in line with Corporate Sus-
tainability Due Diligence Directive requirements. Neste
does not have a separate measurable, time-bound tar-
get related to human rights-related issues in the value
chain but does track the effectiveness of its policies and
actions with e.g., an entity-specific Key Performance
Indicator (KPI) of Human Rights Due Diligence carried
out for key business areas/functions. The scope of the
KPI is focused on Neste’s upstream and own activities.
The KPI has not been validated by an external third party.
Monitoring: Neste annually analyzes the saliency of its
human rights impacts based on severity and likelihood.
The assessments evaluate Neste’s actual and potential
impacts on people throughout the value chain at a prac-
tical and granular level. This enables Neste to monitor
its progress, account for any new risks resulting from
changes in the business and accurately focus and prior-
itize work. As part of this assessment, Neste also tracks
and evaluates the effectiveness of current prevention
and mitigation measures in place, and assesses whether
existing practices are sufficient in scale and complexity
to address its salient human rights issues.
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Actions and resources
Actions
Neste has undertaken several initiatives to identify and
understand how human rights risks, including modern
slavery and child labor, may be present in its operations
and supply chains, including contractors. For Neste
to prioritize its activities, the company’s risk assess-
ment includes mapping supply chains and operations
including contractors, country risk assessments, indi-
vidual project risk assessments, desk-based research,
supplier and contractors surveys and self-assessment
questionnaires, supplier and contractor engagement,
audits and discussions with expert stakeholders.
Neste conducts ongoing human rights due diligence
in its operations and supply chains to identify, prevent,
mitigate and, where necessary, remediate the occur-
rence of forced and child labor. Potential business part-
ners undergo automated pre-screening for economic
sanctions and selected ethical concern categories in
third-party enforcement databases and major news out-
lets, which in practice can include topics on modern
slavery. On top of this, renewable raw material suppliers
and select contractors operating on Neste sites are sub-
ject to additional human rights due diligence on forced
and child labor, such as country and sector risk assess-
ments, supplier desktop evaluations, supplier engage-
ment, sustainability audits, document reviews, and train-
ing for suppliers, contractors and staff.
Neste addresses adverse sustainability impacts once
the company becomes aware of them, including any
adverse human rights impacts, as further detailed under
the description of Neste’s remediation process below, a
key part of its due diligence process. Remediation takes
place in cases where adverse impacts are identified. The
company’s primary means of action is engagement and
cooperation with its suppliers and contractors to rem-
edy issues. This is because Neste seeks to prioritize
the wellbeing of those whose rights have been harmed,
and ending purchases does not resolve problems or
provide access to remedy for affected rights holders.
Remediation activities include:
• Conducting a thorough and impartial investigation
and depending on the severity of the impact,
selecting the course of action (e.g. supplier
engagement, audits by the company’s own local
sustainability specialists or a third-party auditor).
• Implementing immediate actions to address
any urgent or critical issues identified during the
investigation.
• Requiring a detailed plan with a timeline for corrective
actions from the supplier.
• Cooperating with the supplier and other stakeholders
to help develop their operations, practices and
processes, perform necessary corrective actions,
and monitor the outcomes.
• Monitoring and reporting on the progress online via
Neste’s log of renewable raw material supply chain
grievances.
• Ending purchases if Neste does not see adequate
progress or if the supplier loses relevant certifications
• Reviewing, improving and adjusting the company’s
processes where needed.
• The company also conducts training of its own
employees and capacity building of suppliers.
• The company tracks its progress and effectiveness
of implementing these actions through KPI’s and its
Grievance Tracking process.
Neste believes that close engagement and collabora-
tion with contractors on its sites and raw material suppli-
ers provides it the best opportunities to advance human
rights and proactively mitigate modern slavery risks
within company supply chains. Neste therefore engages
regularly in capacity building with its suppliers and con-
tractors. The company also monitors supplier informa-
tion and engages with its suppliers through its Sup-
plier Sustainability Portal (SSP), a digital platform that
is used to facilitate the evaluation of potential and exist-
ing renewable raw material suppliers, to support perfor-
mance monitoring and to enable active supplier engage-
ment. This, and engagement with other stakeholders
(as described in ESRS 2 General disclosures) informs
Neste’s ambition for addressing forced labor in the value
chain.
Neste aims to continue the above actions until the con-
text, best practice or requirements change. Neste con-
tinues to strengthen its due diligence system towards
compliance with the EU Corporate Sustainability Due
Diligence directive.
Expected outcomes
Through these actions, Neste aims to ensure respect
for human rights and mitigate the risk of forced labor
across the value chain. In addition, these actions sup-
port improving social and environmental conditions in the
supply chain and enhance supplier sustainability perfor-
mance over the short and medium term. Above actions
are also relevant in ensuring alignment with the Supplier
Code of Conduct requirements for Environment, Social,
Business Conduct, Safety and Human rights issues.
Human Rights Due Diligence KPI is one indicator to
monitor progress in these actions.
Resources to implement actions
Implementation of the actions reported above are not
expected to require significant (> 50 MEUR) financial
resources.
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Governance information
G1 Business conduct
Material impacts, risks and opportunities
Neste has identified the following material impact with regards to the company’s business conduct:
Management of relationships with suppliers
Positive impact Upstream value chain Neste drives policies and practices that contribute to improved working conditions, ethical business practices, health and safety and environmental sustainability in its
supply chains. Neste aims to include its Supplier Code of Conduct in the contract terms for suppliers and other business partners, setting strict criteria on human and
labor rights, occupational health and safety, climate, the environment and ethical business conduct. All Neste’s raw material suppliers are subject to additional sustainability
due diligence. The positive impact potential is particularly relevant to Neste’s renewable and recycled raw material sourcing and applicable across short- to long-term time
horizons.
Business conduct policies
Neste’s Code of Conduct sets the framework for the
company’s global business operations. The Code of
Conduct applies to the entire Neste Group. It contains
the company’s main principles and key requirements for
all Neste employees to comply with in their daily work,
as well as in interactions with customers, suppliers and
other business partners and stakeholders. It also con-
tains references to more detailed requirements and
guidance in other governing documents. Neste man-
agement is responsible for ensuring the implementation
of the Code of Conduct, supported by Neste’s Compli-
ance Function.
The Neste Code of Conduct references several inter-
national frameworks. In line with the United Nations
Guiding Principles on Business and Human Rights,
Neste respects internationally recognized human and
labor rights as laid out in the International Bill of Human
Rights and the International Labour Organization (ILO)
Declaration on Fundamental Principles and Rights at
Work. Neste is also committed to upholding and imple-
menting the ten principles of the UN Global Compact, to
which the company is a signatory. Neste Code of Con-
duct is publicly available for Neste’s stakeholders. Rais-
ing awareness of and training in the Code of Conduct
and its topics are central elements of the Neste compli-
ance program. Neste regularly communicates internally
on compliance-related topics and trains its employees
through both e-learning courses and in-person training.
Selected business conduct topics are trained annually.
The Code of Conduct e-learning course is part of the
new employee onboarding and is also regularly issued
to the organization.
The Compliance Function, headed by the Chief Com-
pliance Officer, regularly reports on compliance activities
to the Neste Leadership Team and the Board of Direc-
tors’ Audit Committee. Neste also has an Ethics and
Compliance Committee, which oversees and steers the
management of the ethics and compliance program in
Neste. Compliance topics and risks are also regularly
reported and managed on a Business area and Func-
tion level.
As stated in the company’s Code of Conduct, Neste
has zero tolerance of corruption and bribery of any kind
in connection with Neste’s operations, whether commit-
ted by Neste employees or third parties acting on behalf
of Neste. Neste’s Anti-Corruption Principle sets the
rules for preventing corruption in connection with Neste’s
business operations and provides more detailed guid-
ance on responsible business practices and the pre-
vention of corruption. The Principle applies to all Neste
employees and to anyone working for or representing
any business entity within the Neste Group. The prin-
ciple is consistent with the United Nations Convention
against Corruption. The Anti-Corruption Principle and
related guidance is internally available in Neste’s global
intranet and further communicated and trained via an
anti-corruption e-learning issued to all office workers, tar-
geted trainings and via regular newsletters. Neste man-
agement is responsible for ensuring the implementation
of the Anti-Corruption Principle, supported by Neste’s
Compliance Function.
Risks of corruption and bribery are typically treated as
inherent risks in the oil and gas sector due to its global
nature, contractual relationships with local governments,
and involvement in complex networks with various sup-
pliers and contractors. As a preventive measure, Neste
has developed a compliance program, which includes
policy statements (Code of Conduct, Anti-Corruption
Principle), dedicated e-learning packages, an annual
compliance acknowledgment, regular communication
and Ethics Online for the reporting of suspected miscon-
duct. Neste’s counterparties are required to comply with
the Supplier Code of Conduct and/or their own equiva-
lent principles and undergo a compliance clearance and
counterparty risk assessment. As stated in the Code
of Conduct, Neste has processes in place to carry out
due diligence on its business partners. The compliance
clearance and counterparty risk assessment covers the
following risks: trade sanctions; politically exposed per-
sons; money laundering; corruption and bribery.
Employees are encouraged and required to report
their concerns, or observed or suspected violations of
Neste’s Code of Conduct or Anti-Corruption Principle to
their own manager, Neste’s HR, and the Compliance or
Internal Audit functions. The Code of Conduct e-learning
course includes guidelines on how to report observed or
suspected violations of Neste’s Code of Conduct, other
Neste policies or principles or applicable legislation or
regulations. In addition to other reporting channels,
Neste has an externally operated misconduct report-
ing system, Ethics Online, available to all Neste’s inter-
nal and external stakeholders, including various actors
in its supply chains. Ethics Online serves as a grievance
mechanism and enables Neste’s stakeholders to anon-
ymously raise concerns related to alleged misconduct
in Neste’s operations. The Ethics Online can be used by
phone or via the website. To assess the effectiveness of
Neste’s reporting channels, the number of reports sub-
mitted through the channels is followed regularly. Neste
may seek feedback from its employees on the channels,
for example, through employee engagement surveys.
Neste’s Investigation Group is responsible for evalu-
ating and investigating reported cases in a professional,
objective, confidential and prompt manner. The Investi-
gation Group will decide on the investigation lead and
approach to investigate depending on the nature of the
reported allegation and/or concern. All investigations
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shall be impartial, unbiased and based on fact finding
and managed by appropriate resources. Upon need
and depending on the nature of the investigation, Neste
Investigation Group regularly retains independent exter-
nal forensic and/or legal expertise to conduct the inves-
tigation. Misconduct investigations and their outcome
are regularly reported to Neste’s Ethics and Compliance
Committee and at least annually to the Neste Board
Audit Committee.
Neste has a strict non-retaliation policy for concerns
reported in good faith. Neste’s main principles and pol-
icy followed in internal misconduct investigations is
described in the Company’s internal Misconduct Inves-
tigation Standard. The Standard is aligned with the
Directive (EU) on the protection of persons who report
breaches of Union law (2019/1937).
Management of relationships
with suppliers
Policies
One of Neste’s sustainability vision areas is to drive a
safe and healthy workplace, fair labor practices and
increased commitment to sustainability across the sup-
ply chain. Neste’s commitments to responsible and ethi-
cal business depend not only on its own people but also
on forming relationships with business partners who
share the company’s commitments.
Neste requires all its suppliers and other business part-
ners to comply with applicable laws and expect them to
follow equivalent ethical business standards as stated
in the Neste Code of Conduct, further described in the
Neste Supplier Code of Conduct. The Neste Sup-
plier Code of Conduct outlines the basic requirements
Neste expects its suppliers and their first tier suppliers,
contractors and business partners to adhere to and
implement throughout their businesses. Neste aims to
include Supplier Code of Conduct in the contract terms
for suppliers, contractors and other business partners
participating in the delivery of raw materials, products,
components, materials or services to Neste. Compa-
nies consolidated through mergers and acquisitions are
also expected to implement the Neste Supplier Code of
Conduct in their sourcing. The Supplier Code of Conduct
includes requirements on Compliance with laws and reg-
ulations; Business Conduct; Environmental impact and
climate change; Occupational health, safety and secu-
rity; and Human and labor rights. It references the Uni-
versal Declaration of Human Rights and the fundamental
rights in the eight core conventions of the International
Labor Organization.
The Supplier Code of Conduct is publicly available on
Neste’s webpages in several languages. Neste carries
out training and provides a guide with practical recom-
mendations to support the implementation and help its
suppliers meet their obligations to comply with the Sup-
plier Code of Conduct.
Additionally, Neste requires all its renewable raw
material suppliers to comply with Neste Responsible
Sourcing Principle. The requirements of the Responsi-
ble Sourcing Principle are described more in detail in the
E5 Resource Use -section. The Supplier Code of Con-
duct and related Principles are a key tool for enhancing
the positive impact Neste aims to achieve throughout its
value chains.
General governance, including the highest level of
accountability for policies, and stakeholder engagement
related to policy implementation are described in the
ESRS 2 General disclosures -section of this report.
Targets
Neste is committed to implement and sustain compre-
hensive sustainability due diligence across Neste’s own
operations and supply chains in line with Corporate
Sustainability Due Diligence Directive (CSDDD) require-
ments. Specific targets in line with the European Sus-
tainability Reporting Standard and the CSDDD require-
ments may be developed where relevant.
Neste’s sustainability due diligence process is a key
element in addressing material impacts and implement-
ing its policy commitments related to the management
of relationships with suppliers. Neste’s sustainability
due diligence process covers renewable, recycled and
fossil raw material suppliers, and includes country risk
assessment, supplier due diligence and audits, supplier
engagement and grievance investigations.
As a key performance indicator, Neste tracks per-
centages of business partners who have committed to
Neste’s minimum sustainability requirements covered in
the Supplier Code of Conduct or equivalent as detailed
in the table below. As a target level, Neste expects all
its suppliers and other business partners to comply with
applicable laws and expect them to follow equivalent eth-
ical business standards as stated in the Neste Code of
Conduct, further described in the Neste Supplier Code
of Conduct. Neste has not defined a separate base year
for the key performance indicator.
Key performance indicator Performance in 2024
Business partners who have committed to Neste’s
minimum sustainability requirements covered in the
Supplier Code of Conduct or equivalent
1)
100% of the renewable and
recycled raw material volumes
81% of crude oil and fossil raw materials volumes
91% overall indirect contracted spend
1
) After the assessment of the supplier’s or business partner’s own policies and principles, Neste may agree that compliance with their own code of
conduct is sufficient for the purpose of complying with the Neste Supplier Code of Conduct.
Actions
Key actions related to the management of relationships
with suppliers are described below:
Risk assessment in supply chains: A key element
in understanding the sustainability risks in the compa-
ny’s supply chains is assessing country risks. Neste
uses a bespoke, industry-leading country risk assess-
ment methodology from Verisk Maplecroft to identify
countries or geographical areas in which it operates and
has raw material supply chains with high sustainability
risks. Neste maintains an up-to-date country risk cat-
egorization based on country risk indices such as eth-
ical business practices, human and labor rights, health
and safety, and the environment. The categorization also
includes a list of no-go countries and regions based on
considerations including trade sanctions, conflicts and
sustainability risks. The country risk assessment allows
Neste to effectively prioritize its activities by identifying
the most significant sustainability risks in certain coun-
tries or geographical areas.
Conducting sustainability due diligence: Assess-
ing sustainability risks in the company’s supply chains
begins before agreements have been signed or raw
materials, products, components, materials or ser-
vices are delivered. To ensure its suppliers’ compliance
with the Supplier Code of Conduct, Neste has imple-
mented systematic controls for counterparty screening
and monitoring, during which potential business part-
ners undergo automated screening. Counterparties are
screened for economic sanctions and similar compli-
ance issues and selected ethical concern categories in
third-party enforcement databases and major news out-
let sources. All Neste’s raw material suppliers are sub-
ject to additional sustainability due diligence. Neste uses
a risk based approach to determine the type of assess-
ment, which can include desktop reviews, the mapping
of supply chains and operations, supplier engagement
and sustainability audits. The risk-based approach uses
country risk as one element of the risk assessment.
Knowing the origin of raw materials is a fundamen-
tal supplier requirement. Where possible, the aim is to
gain visibility throughout the raw material supply chain,
including Neste’s suppliers’ suppliers.
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Renewable raw materials sourcing: Neste requires
all its renewable raw material suppliers to comply with
Neste Supplier Code of Conduct and Neste Responsi-
ble Sourcing Principle. All Neste’s renewable raw mate-
rial suppliers are also subject to rigorous sustainability
due diligence, as stated in Neste’s Supplier Sustainabil-
ity Approval Principle. The Principle applies globally to
any Neste company which is establishing a business
relationship with a supplier of renewable raw materi-
als. It sets the minimum sustainability requirements for
approving suppliers through a five-step process, includ-
ing raw material evaluation, risk assessments, counter-
party screening, a sustainability review and audits. The
Principle is available internally.
Neste verifies suppliers’ compliance with Neste’s
Supplier Code of Conduct with the sustainability review,
encompassing a range of topics such as governance,
labor standards and practices, human rights, the envi-
ronment and health and safety. The company contin-
ues commercial negotiations only with approved parties
that meet its sustainability requirements, and all partners
must continue to meet these criteria. The validity period
of the sustainability approval for a supplier is three or five
years, depending on, e.g. country risk, raw material vol-
umes supplied to Neste and the outcome of the sustain-
ability review. Once the validity period expires, the sup-
plier undergoes a new review.
Liquefied waste plastics sourcing: Neste requires
its liquefied waste plastic suppliers to fulfill the require-
ments in the Neste Supplier Code of Conduct and only
accept liquefied waste plastic that is traceable and com-
plies with the ISCC Plus certification requirements.
Crude oil and other fossil raw material sourcing:
The due diligence process for the company’s crude oil
and other fossil raw material suppliers includes a coun-
try risk assessment and a counterparty screening. Neste
also conducts a sustainability review of all new suppliers
based on publicly available information regarding topics
outlined in the Neste Supplier Code of Conduct, suppli-
ers’ climate and environmental commitments, and crude
oil production-specific issues such as flaring and spills.
The sustainability review is renewed for fossil raw mate-
rial suppliers every three years.
Indirect Procurement: Neste’s indirect procurement
is responsible for the sourcing, purchasing, contract
and supplier management of goods and services that
are not included in the sourcing and delivery of crude oil
and other fossil raw materials or renewable and recycled
raw materials. In addition to the automated counterparty
compliance screening, Neste has carried out category
and supplier specific risk assessments to enhance its
understanding of the sustainability risk in Neste’s indi-
rect procurement supply chains. Neste has completed
Sedex self-assessment questionnaires for its refiner-
ies in Porvoo, Rotterdam and Singapore, allowing the
company to thoroughly assess gaps in its management
systems and human rights due diligence. The com-
pany plans to further integrate sustainability into indirect
procurement and continues to work proactively to pro-
mote respect for labor rights across its production sites.
See S2 Workers in the value chain for a more detailed
description of Neste’s processes for engaging with value
chain workers about impacts.
Sustainability audits: Neste carries out audits to
mitigate sustainability risks in the supply chains. When
selecting suppliers to be audited, special attention is
paid to suppliers, raw materials or countries with the
highest sustainability risks. Sustainability audits are one
way of verifying that Neste’s suppliers comply with the
Neste Supplier Code of Conduct. All audits adhere to the
requirements of the Neste Sustainability Audit Standard,
which is regularly benchmarked against globally rec-
ognized methodologies such as SMETA and SA8000.
After the audit, Neste follows up cases of non-compli-
ance and requires its suppliers to remediate significant
open issues within a specified timeframe. The sustain-
ability audits are conducted either by Neste’s own local
sustainability specialists or a third-party auditor. Where
possible, the company also conducts audits on its sup-
pliers’ suppliers (second-tier suppliers or even beyond).
Capacity building: Neste understands that due dil-
igence processes and sustainability audits alone are
insufficient for a positive impact in its value chain. The
company therefore engages regularly in capacity build-
ing with its suppliers. Neste regularly organizes training
sessions and workshops on topics such as the Neste
Supplier Code of Conduct requirements, sustainabil-
ity policy development, due diligence, traceability and
grievance management. The company is also commit-
ted to training its employees on its policies. To support
implementation across its business, Neste has issued
an e-learning to train relevant Neste employees on the
Supplier Code of Conduct requirements, while also pro-
viding live training sessions for selected Neste teams,
led by the company’s human rights and sustainability
specialists.
Grievances and concerns in the supply chain:
Neste investigates all complaints and allegations of sus-
pected sustainability violations. This includes any sus-
pected breaches of the Neste Supplier Code of Conduct
or the Neste Responsible Sourcing Principle. Engage-
ment and cooperation with the company’s suppliers
and contractors are its primary ways of addressing any
grievances and concerns. Ending purchases does not
necessarily solve the problem, while by working with the
suppliers, Neste can work for improvements. If the sus-
tainability criteria or contractual requirements included in
contracts have been verifiably breached, their nature is
considered serious, and progress to resolve those issues
is not made in a reasonable time, Neste will terminate
its contract with the supplier or contractor in question.
See S2 Workers in the value chain for a more detailed
description of Neste’s processes to remedy negative
impacts and ensure grievance mechanisms are avail-
able for value chain workers to raise concerns.
In the future, Neste will continue developing its supplier
due diligence in accordance upcoming regulations, such
as the Corporate Sustainability Due Diligence Directive.
Expected outcomes
Through these actions, Neste aims to improve social
and environmental conditions in the supply chain and
enhance supplier sustainability performance over the
short and medium term. The actions support in ensuring
alignment with the Supplier Code of Conduct require-
ments for environment, social, business conduct, safety
and human rights issues. The progress in these actions
is monitored by the KPI presented on the previous page.
Resources to implement actions
Implementation of the actions reported above are not
expected to require significant (>50 MEUR) financial
resources.
Reporting principles
Supplier Code of Conduct: The share of renewable
and recycled raw material volumes and crude oil and
fossil raw materials volumes covered by the Neste Sup-
plier Code of Conduct or equivalent is calculated based
on the volumes delivered to Neste during the reporting
year. The share of the Neste Supplier Code of Conduct
coverage for indirect procurement is calculated based
on spend. An external third party has not validated the
KPI.
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Appendixes
Statement on due diligence
Core elements of due diligence Sections in the Sustainability statement Page
a) Embedding due diligence in governance, strategy and business model S2 Workers in the value chain 137-138
G1 Business Conduct 142-143
b) Engaging with affected stakeholders in all key steps of the due diligence ESRS 2 General disclosures 105-106
S1 Own workforce 133-134
S2 Workers in the value chain 138-139
c) Identifying and assessing adverse impacts ESRS 2 General disclosures 108-109
S1 Own workforce 132
S2 Workers in the value chain 137, 138
G1 Business conduct 142-143
d) Taking actions to address those adverse impacts S1 Own workforce 134
S2 Workers in the value chain 139-140
e) Tracking the effectiveness of these efforts and communicating S1 Own workforce 133-134
S2 Workers in the value chain 137-140
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ESRS 2 General Disclosures
Disclosure requirement Page
BP-1 General basis for preparation of sustainability statement 101
BP-2 Disclosures in relation to specific circumstances 101, 122–123, 126,
131, 136, 143
GOV-1 The role of the administrative, management and supervisory bodies 101–102
GOV-2 Information provided to and sustainability matters addressed by the
undertaking’s administrative, management and supervisory bodies
102
GOV-3 Integration of sustainability-related performance in incentive schemes 102
GOV-4 Statement on due diligence 144
GOV-5 Risk management and internal controls over sustainability reporting 102–103
SBM-1 Strategy, business model and value chain 103–104
SBM-2 Interests and views of stakeholders 105–106
SBM-3 Material impacts, risks and opportunities and their interaction with strategy
and business model
107–108
IRO-1 Description of the processes to identify and assess material impacts, risks and
opportunities
108–109
IRO-2 Disclosure requirements in ESRS covered by the undertaking’s sustainability
statement
145–149
Disclosure Requirements in ESRS
covered by Neste’s Sustainability
statement
The following table lists all ESRS disclosure require-
ments in ESRS 2 and the seven topical standards which
are material to Neste and included in the Sustainability
statement. Neste omits all disclosures related to topical
standards E3 Water and marine resources, S3 Affected
communities and S4 Consumers and end-users, as
these were not deemed material in the double mate-
riality assessment. Relevant disclosure requirements
have been identified by linking material impacts, risks
and opportunities, and their related sub-topics or sub-
sub topics, to the relevant ESRS. Additional entity-spe-
cific disclosures have been defined based on imple-
mented targets and for the entity-specific topic ‘carbon
handprint’.
ESRS E1 Climate change
Disclosure requirement Page
ESRS 2 GOV-3 Integration of sustainability-related performance in incentive schemes 102
E1-1 Transition plan for climate change mitigation 103–104, 119–121
ESRS 2 SBM-3 Material impacts, risks and opportunities and their interaction with
strategy and business model(s)
107–108, 116–118
ESRS 2 IRO-1 Description of the processes to identify and assess material climate-
related impacts, risks and opportunities
108–109, 117–118
E1-2 Policies related to climate change mitigation and adaptation 109, 118–119
E1-3 Actions and resources in relation to climate change policies 120–121
E1-4 Targets related to climate change mitigation and adaptation 119–120
E1-5 Energy consumption and mix 121, 122–123
E1-6 Gross Scopes 1, 2, 3 and Total GHG emissions 122–123
E1-8 Internal carbon pricing 121
ESRS E2 Pollution
Disclosure requirement Page
ESRS 2 IRO-1 Description of the processes to identify and assess material pollution-
related impacts, risks and opportunities
108–109, 124
E2-1 Policies related to pollution 109, 124–125
E2-2 Actions and resources related to pollution 125
E2-3 Targets related to pollution 125
E2-5 Substances of concern and substances of very high concern 126
ESRS E4 Biodiversity and ecosystems
Disclosure requirement Page
E4-1 Transition plan on biodiversity and ecosystems 103, 128–129
ESRS SBM 3 Material impacts, risks and opportunities and their interaction with
strategy and business model
107–108, 127–128
ESRS 2 IRO-1 Description of processes to identify and assess material biodiversity
and ecosystem-related impacts, risks and opportunities
108–109, 127–128
E4-2 Policies related to biodiversity and ecosystems 109, 128
E4-3 Actions and resource related to biodiversity and ecosystems 129
E4-4 Targets related to biodiversity and ecosystems 128
E4-5 Impact metrics related to biodiversity and ecosystems change 129
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ESRS E5 Resource use and circular economy
Disclosure requirement Page
ESRS 2 IRO-1 Description of the processes to identify and assess material resource
use and circular economy-related impacts, risks and opportunities
108–109
E5-1 Policies related to resource use and circular economy 109, 130
E5-2 Actions and resources related to resource use and circular economy 131
E5-3 Targets related to resource use and circular economy 131
E5-4 Resource inflows 131
ESRS S1 Own workforce
Disclosure requirement Page
SBM-2 Interest and views of stakeholders 105–106
SBM-3 Material impacts, risks and opportunities and their interaction with strategy
and business model
107–108, 132
S1-1 Policies related to own workforce 109, 132–133
S1-2 Processes for engaging with own workers and workers’ representatives about
impacts
133
S1-3 Processes to remediate negative impacts and channels for own workers to
raise concerns
133–134, 141–142
S1-4 Taking action on material impacts on own workforce, and approaches to
mitigating material risks and pursuing material opportunities related to own workforce,
and effectiveness of those actions
134
S1-5 Targets related to managing material negative impacts, advancing positive
impacts, and managing material risks and opportunities
134
S1-6 Characteristics of Neste’s employees 135, 136
S1-14 Health and safety indicators 135, 136
ESRS S2 Workers in the value chain
Disclosure requirement Page
SBM-2 Interest and views of stakeholders 105–106
SBM-3 Material impacts, risks and opportunities and their interaction with strategy
and business model
107–108, 137
S2-1 Policies related to value chain workers 109, 133, 137–138
S2-2 Processes for engaging with value chain workers about impacts 138
S2-3 Processes to remediate negative impacts and channels for value chain workers
to raise concerns
139, 141–142
S2-4 Taking action on material impacts on value chain workers, and approaches to
mitigating material risks and pursuing material opportunities related to value chain
workers, and effectiveness of those actions
140
S2-5 Targets related to managing material negative impacts, advancing positive
impacts, and managing material risks and opportunities
139
ESRS G1 Business conduct
Disclosure requirement Page
ESRS 2 GOV-1 The role of the administrative, supervisory and
management bodies
101–102
ESRS 2 IRO-1 – Description of the processes to identify and assess material impacts,
risks and opportunities
108–109
G1-1 Corporate culture and business conduct policies 109, 141–142
G1-2 Management of relationships with suppliers 104, 142–143
147
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List of datapoints in cross-cutting and
topical standards that derive from other
EU legislation
The table below includes all of the data points that derive
from other EU legislation as listed in ESRS 2 appendix B.
The table indicates on which page the data points can
ESRS 2 GOV-1 Board's gender diversity paragraph 21 (d) X X 102
ESRS 2 GOV-1 Percentage of board members who are independent paragraph 21 (e) X 102
ESRS 2 GOV-4 Statement on due diligence paragraph 30 X 144
ESRS 2 SBM-1 Involvement in activities related to fossil fuel activities paragraph 40 (d) i X X X 104
ESRS 2 SBM-1 Involvement in activities related to chemical production paragraph 40 (d) ii X X Not applicable
ESRS 2 SBM-1 Involvement in activities related to controversial weapons paragraph 40 (d) iii X X Not applicable
ESRS 2 SBM-1 Involvement in activities related to cultivation and production of tobacco paragraph 40 (d) iv X Not applicable
ESRS E1-1 Transition plan to reach climate neutrality by 2050 paragraph 14 X 119–121
ESRS E1-1 Undertakings excluded from Paris-aligned Benchmarks paragraph 16 (g) X X 119
ESRS E1-4 GHG emission reduction targets paragraph 34 X X X 119–120
ESRS E1-5 Energy consumption from fossil sources disaggregated by sources (only high climate impact sectors) paragraph 38 X 121
ESRS E1-5 Energy consumption and mix paragraph 37 X 121
ESRS E1-5 Energy intensity associated with activities in high climate impact sectors paragraphs 40 to 43 X 121, 123
ESRS E1-6 Gross Scope 1, 2, 3, and Total GHG emissions paragraph 44 X X X 122
ESRS E1-6 Gross GHG emissions intensity paragraphs 53 to 55 X X X 122, 123
ESRS E1-7 GHG removals and carbon credits paragraph 56 X Not material
ESRS E1-9 Exposure of the benchmark portfolio to climate-related physical risks paragraph 66 X Not disclosed
ESRS E1-9 Disaggregation of monetary amounts by acute and chronic physical risk paragraph 66 (a) X Not disclosed
ESRS E1-9 Location of significant assets at material physical risk paragraph 66 (c) X Not disclosed
ESRS E1-9 Breakdown of the carrying value of its real estate assets by energy-efficiency classes paragraph 67 (c) X Not disclosed
ESRS E1-9 Degree of exposure of the portfolio to climate-related opportunities paragraph 69 X Not disclosed
ESRS E2-4 Amount of each pollutant listed in Annex II of the E- PRTR Regulation (European Pollutant Release and Transfer Register) emitted to air,
water and soil, paragraph 28
X Not material
ESRS E3-1 Water and marine resources paragraph 9 X Not material
be found in Neste’s Sustainability statement. Excluded
data points are marked as i) ‘Not material’ based on
the results of the double materiality assessment, ii) ‘Not
disclosed’, if the disclosure requirement is phased in
based on the provision in Appendix C of ESRS 1, or iii)
‘Not applicable’ if the disclosure requirement is not rel-
evant for Neste’s business.
Disclosure requirement and related datapoint SFDR Pillar 3
Benchmark
regulation
EU
Climate Law
Page reference in
Sustainability statement
148
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ESRS E3-1 Dedicated policy paragraph 13 X Not material
ESRS E3-1 Sustainable oceans and seas paragraph 14 X Not material
ESRS E3-4 Total water recycled and reused paragraph 28 (c) X Not material
ESRS E3-4 Total water consumption in m3 per net revenue on own operations paragraph 29 X Not material
ESRS 2- IRO 1 - E4 paragraph 16 (a) i X Not material
ESRS 2- IRO 1 - E4 paragraph 16 (b) X 127
ESRS 2- IRO 1 - E4 paragraph 16 (c) X 127
ESRS E4-2 Sustainable land / agriculture practices or policies paragraph 24 (b) X 128
ESRS E4-2 Sustainable oceans / seas practices or policies paragraph 24 (c) X 128
ESRS E4-2 Policies to address deforestation paragraph 24 (d) X 128
ESRS E5-5 Non-recycled waste paragraph 37 (d) X Not material
ESRS E5-5 Hazardous waste and radioactive waste paragraph 39 X Not material
ESRS 2- SBM3 - S1 Risk of incidents of forced labor paragraph 14 (f) X Not material
ESRS 2- SBM3 - S1 Risk of incidents of child labor paragraph 14 (g) X Not material
ESRS S1-1 Human rights policy commitments paragraph 20 X 133
ESRS S1-1 Due diligence policies on issues addressed by the fundamental International Labour Organisation Conventions 1 to 8, paragraph 21 X 133
ESRS S1-1 Processes and measures for preventing trafficking in human beings paragraph 22 X 133
ESRS S1-1 Workplace accident prevention policy or management system paragraph 23 X 132
ESRS S1-3 Grievance/complaints handling mechanisms paragraph 32 (c) X 133, 141–142
ESRS S1-14 Number of fatalities and number and rate of work-related accidents paragraph 88 (b) and (c) X X 135
ESRS S1-14 Number of days lost to injuries, accidents, fatalities or illness paragraph 88 (e) X Not disclosed
ESRS S1-16 Unadjusted gender pay gap paragraph 97 (a) X X Not material
ESRS S1-16 Excessive CEO pay ratio paragraph 97 (b) X Not material
ESRS S1-17 Incidents of discrimination paragraph 103 (a) X Not material
ESRS S1-17 Non-respect of UNGPs on Business and Human Rights and OECD paragraph 104 (a) X X Not material
ESRS 2- SBM3 - S2 Significant risk of child labour or forced labour in the value chain paragraph 11 (b) X 137
ESRS S2-1 Human rights policy commitments paragraph 17 X 137–138, 142
ESRS S2-1 Policies related to value chain workers paragraph 18 X 137–138, 142
ESRS S2-1 Non- respect of UNGPs on Business and Human Rights principles and OECD guidelines paragraph 19 X X 139
Disclosure Requirement and related datapoint SFDR Pillar 3
Benchmark
regulation
EU
Climate Law
Page reference in
Sustainability statement
149
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ESRS S2-1 Due diligence policies on issues addressed by the fundamental International Labor Organisation Conventions 1 to 8, paragraph 19 X 137–138, 142
ESRS S2-4 Human rights issues and incidents connected to its upstream and downstream value chain paragraph 36 X 139
ESRS S3-1 Human rights policy commitments paragraph 16 X Not material
ESRS S3-1 non-respect of UNGPs on Business and Human Rights, ILO principles or and OECD guidelines paragraph 17 X X Not material
ESRS S3-4 Human rights issues and incidents paragraph 36 X Not material
ESRS S4-1 Policies related to consumers and end-users paragraph 16 X Not material
ESRS S4-1 Non-respect of UNGPs on Business and Human Rights and OECD guidelines paragraph 17 X X Not material
ESRS S4-4 Human rights issues and incidents paragraph 35 X Not material
ESRS G1-1 United Nations Convention against Corruption paragraph 10 (b) X Not applicable
ESRS G1-1 Protection of whistle-blowers paragraph 10 (d) X Not applicable
ESRS G1-4 Fines for violation of anti-corruption and anti-bribery laws paragraph 24 (a) X X Not material
ESRS G1-4 Standards of anti-corruption and anti-bribery paragraph 24 (b) X Not material
Disclosure Requirement and related datapoint SFDR Pillar 3
Benchmark
regulation
EU
Climate Law
Page reference in
Sustainability statement
150
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Key figures
Income statement 2024 2023 2022
Revenue EUR million 20,635 22,926 25,707
EBITDA EUR million 1,005 2,548 3,048
- of revenue % 4.9 11.1 11.9
Operating profit EUR million 25 1,682 2,410
- of revenue % 0.1 7.3 9.4
Profit before income taxes EUR million -113 1,596 2,279
- of revenue % -0.5 7.0 8.9
Profit for the period EUR million -95 1,436 1,891
- of revenue % -0.5 6.3 7.4
Comparable EBITDA EUR million 1,252 3,458 3,537
Comparable net profit EUR million 131 2,216 2,336
Profitability
Return on equity (ROE) % -1.2 17.9 25.1
Comparable return on average capital
employed, after tax (Comparable ROACE) % 2.5 23.9 30.1
Financing and financial position
Interest-bearing net debt EUR million 4,192 2,488 1,344
Leverage ratio % 36.1 22.7 13.9
Equity-to-assets ratio % 47.7 53.1 56.3
Net Debt to EBITDA % 4.2 1.0 0.4
Other indicators
Capital employed EUR million 12,564 12,532 10,942
Net working capital in days outstanding 39.4 41.0 35.4
Capital expenditure and investments in shares EUR million 2,006 2,351 2,218
- of revenue % 9.7 10.3 8.6
Research and development expenditure EUR million 86 94 85
- of revenue % 0.4 0.4 0.3
Average number of personnel 5,796 6,018 5,244
1)
Board of Directors’ proposal to the Annual General Meeting. 2022 key figures include an ordinary dividend of EUR 1.02 per share, an extraordinary
dividend of EUR 0.25 per share, and a discretionary second extraordinary dividend of EUR 0.25 per share.
Share-related indicators 2024 2023 2022
Earnings per share (EPS) EUR -0.12 1.87 2.46
Comparable earnings per share EUR 0.17 2.88 3.04
Equity per share EUR 9.65 11.02 10.83
Cash flow per share EUR 1.54 2.97 1.56
Dividend per share EUR 0.20
1)
1.20 1.52
Dividend payout ratio % -162.3
1)
64.3 61.8
Dividend yield % 1.6
1)
3.7
3.5
Share prices
Closing price EUR 12.13 32.21 43.02
Average price EUR 19.26 37.66 42.26
Lowest price EUR 10.98 28.55 30.81
Highest price EUR 33.60 48.50 52.18
Market capitalization EUR million 9,331 24,776 33,091
Trading volumes
Number of shares traded 1,000 443,798 242,189 270,643
- of weighted average number of shares % 58 32 35
Weighted average number of
shares outstanding 768,212,287 768,175,637 768,060,103
Number of shares outstanding
at the end of the period 768,215,734 768,199,747 768,083,170
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Reconciliation of key figures to IFRS Financial Statements
Reconciliation between comparable EBITDA, EBITDA and operating profit is presented in Note 4, Segment information.
EUR million 2024 2023 2022
Comparable EBITDA 1,252 3,458 3,537
IS
Depreciation, amortization and impairments -980 -866 -638
Items in depreciation, amortization and impairments
affecting comparability 15 0 27
IS
Total financial income and expenses -138 -86 -131
IS
Income tax expense 19 -160 -388
IS
Non-controlling interests 0 -3 -3
Tax on items affecting comparability -37 -128 -68
Comparable net profit 131 2,216 2,336
Reconciliation of comparable return on average capital employed, after tax (Comparable ROACE), %
EUR million 2024 2023 2022
Comparable EBITDA, last 12 months 1,252 3,458 3,537
IS
Depreciation, amortization and impairments -980 -866 -638
Items in depreciation, amortization and impairments
affecting comparability 15 0 27
IS
Financial income 47 45 9
IS
Exchange rate and fair value gains and losses -29 -9 -80
IS
Income tax expense 19 -160 -388
Tax on other items affecting Comparable ROACE -59 -145 -76
Comparable net profit, net of tax 266 2,324 2,391
Capital employed average 12,398 11,514 9,823
Assets under construction average -1,756 -1,789 -1,880
Return on comparable average capital employed,
after tax (Comparable ROACE), % 2.5 23.9 30.1
Reconciliation of equity-to-assets ratio, %
EUR million 2024 2023 2022
BS Total equity 7,417 8,463 8,327
BS Total assets 15,581 15,983 14,917
Advances received -42 -39 -138
Equity-to-assets ratio, % 47.7 53.1 56.3
Reconciliation of net working capital in days outstanding
EUR million 2024 2023 2022
Operative receivables 1,488 1,788 1,902
BS Inventories 2,898 3,366 3,648
Operative liabilities -2,159 -2,581 -3,057
Net working capital 2,227 2,573 2,494
IS Revenue 20,635 22,926 25,707
Net working capital in days outstanding 39.4 41.0 35.4
Reconciliation between comparable EBITDA and comparable net profit
IS
OCI
BS
CF
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Calculation of key figures
Neste presents Alternative Performance Measures to enhance comparability between financial periods as well as to reflect operational performance and financial risk level. These indicators should be examined together with the IFRS-compliant performance
indicators.
Key figure Calculation Reason for use
EBITDA = Operating profit + depreciation, amortization and impairments
EBITDA is an indicator to measure the operational performance and cash flow
generation.
Comparable EBITDA =
EBITDA -/+ inventory valuation gains/losses -/+ changes in the fair value of open
commodity and currency derivatives -/+ capital gains/losses - insurance and other
compensations -/+ other adjustments
Comparable EBITDA describes underlying operational performance and cash flow
generation.
1)
Items affecting comparability =
Inventory valuation gains/losses, changes in the fair value of open commodity and
currency derivatives, capital gains/losses, insurance and other compensations,
impairments and other adjustments
Items affecting comparability are linked to unpredictability events of a significant
nature that do not form part of normal day-to-day business.
1)
Comparable net profit =
Comparable EBITDA - depreciation, amortizations and impairments -/+ items in
depreciation, amortization and impairments affecting comparability - total financial income
and expense - income tax expense - non-controlling interests - tax on items affecting
comparability
Comparable net profit is used to provide additional financial performance indicators
to support meaningful comparison of underlying net profitability between periods.
Return on equity (ROE), % = 100 x
Profit before income taxes - income tax expense, last 12 months
Return on equity provides additional information on the profitability of operations.
Total equity average, 5 quarters end values
Comparable return on average
capital employed, after-tax
(Comparable ROACE), %
= 100 x
Comparable EBITDA - depreciation, amortizations and impairments -/+ items in
depreciation, amortization and impairments affecting comparability + financial income +
exchange rate and fair value gains and losses - income tax expense - tax on other items
affecting Comparable ROACE, last 12 months
Comparable return on average capital employed after-tax (Comparable ROACE) is
one of Neste’s key financial targets. It is a long-term over the cycle indicator
measuring Neste’s profitability and efficiency of capital usage.
Capital employed average - assets under construction average, 5 quarters end values
Capital employed = Total equity + interest bearing liabilities
Capital employed is primarily used to determine the comparable return on average
capital employed (Comparable ROACE) which is Neste’s key financial target.
Interest-bearing net debt = Interest-bearing liabilities - cash and cash equivalents - current investments Interest-bearing net debt is an indicator to measure the total external debt financing.
Leverage ratio, % = 100 x
Interest-bearing net debt
Leverage ratio is one of Neste’s key financial targets. It provides useful information
regarding Neste’s capital structure and financial risk level.
Interest bearing net debt + total equity
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Equity-to-assets ratio, % = 100 x
Total equity
Equity-to-assets ratio provides useful information regarding financial risk level.
Total assets - advances received
Net working capital in days outstanding = 365 x
Net working capital
Net working capital in days outstanding measures efficiency in turning net working
capital into revenue.
Revenue, last 12 months
Net Debt to EBITDA =
Interest-bearing net debt
Net debt to EBITDA measures capital structure and ability to cover debt.
EBITDA, last 12 months
Return on net assets, % = 100 x
Segment operating profit, last 12 months
Neste uses return on net assets to follow the operational performance of its
operating segments.
Average segment net assets, 5 quarters end values
Comparable return on net assets, % = 100 x
Segment comparable EBITDA, last 12 months - depreciation, amortization and
impairments +/- items in depreciation, amortization and impairments affecting
comparability
Neste uses comparable return on net assets to follow the underlying operational
performance of its operating segments.
Average segment net assets, 5 quarters end values
Segment net assets =
Property, plant and equipment + goodwill + intangible assets + investments in associates
and joint ventures + inventories + interest-free receivables and liabilities - provisions -
pension liabilities allocated to the business segment
Segment net assets are primarily used to determine the return on net assets and
comparable return on net assets.
Calculation of share-related indicators
Earnings per share (EPS) =
Profit for the period attributable to the owners of the parent
Weighted average number of shares outstanding during the period
Comparable earnings per share =
Comparable net profit
Weighted average number of shares outstanding during the period
Equity per share =
Shareholder's equity attributable to the owners of the parent
Number of shares outstanding at the end of the period
Cash flow per share =
Net cash generated from operating activities
Weighted average number of shares outstanding during the period
Key figure Calculation Reason for use
154
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Dividend payout ratio, % = 100 x
Dividend per share
Earnings per share
Dividend yield, % = 100 x
Dividend per share
Share price at the end of the period
Average share price =
Amount traded in euros during the period
Number of shares traded during the period
Market capitalization = Number of shares at the end of the period x share price at the end of the period
Calculation of key drivers
Oil Products total refining margin (USD/bbl) =
Comparable sales margin x average EUR/USD exchange rate for the period
x standard refinery yield
Oil Products total refining margin measures the segment's comparable sales margin
per refined unit sold. USD/bbl is a standard unit used in the oil industry.
Refined sales volume x standard barrels per ton
Renewable Products comparable sales
margin (USD/ton)
=
Comparable sales margin x average EUR/USD exchange rate for the period
Renewable Products comparable sales margin measures the sales margin
per unit sold.
Sales volumes of renewable diesel, sustainable aviation fuel and other products
1)
In the business environment where Neste operates, commodity prices and foreign exchange rates are volatile and can cause significant fluctuations in inventory values and operating profit. Comparable EBITDA eliminates both the inventory valuation gains/losses generated by the volatility in raw material
prices and changes in open derivatives, and better reflects the company’s underlying operational performance. Also, it reflects Neste’s operational cash flow, where the change in operating profit caused by inventory valuation is mostly compensated by changing net working capital. Items affecting
comparability are linked to unpredictability events of a significant nature that do not form part of normal day-to-day business. They include among others impairment losses and reversals, gains and losses associated with the combination or termination of businesses, restructuring costs, and gains and
losses on the sales of assets. Only items having an impact of more than EUR 1 million on Neste’s result will be classified as items affecting comparability.
Key figure Calculation Reason for use
155
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Financial
statements
Consolidated statement of income 156
Consolidated statement of comprehensive income 156
Consolidated statement of nancial position 157
Consolidated cash ow statement 158
Consolidated statement of changes in equity 159
Notes to the consolidated nancial statements 160
Parent company income statement 214
Parent company balance sheet 214
Parent company cash ow statement 215
Parent company notes to the nancial statements 216
Proposal for the distribution of earnings and
signing of the Review by the Board of Directors
and the Financial Statements 235
Auditor’s Report 236
156
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1
7
8
9
2
4
3
5
6
10
11
12
13
14
15
16
24
17
25
18
26
19
27
20
28
21
29
22
30
23
31
Consolidated Statement of Income
EUR million Note 1 Jan–31 Dec 2024 1 Jan–31 Dec 2023
Revenue 4, 5 20,635 22,926
Other income 6 54 55
Share of profit (loss) of associates and joint ventures 15 -9 1
Materials and services 7 -18,388 -19,098
Employee benefit costs 8 -582 -642
Depreciation, amortization and impairments 4 -980 -866
Other expenses 9 -706 -695
Operating profit 25 1,682
Financial income and expenses 10
Financial income 47 45
Financial expenses -156 -122
Exchange rate and fair value gains and losses -29 -9
Total financial income and expenses -138 -86
Profit before income taxes -113 1,596
Income tax expense 11 19 -160
Profit for the period -95 1,436
Profit attributable to
Owners of the parent -95 1,433
Non-controlling interests 0 3
-95 1,436
Earnings per share from profit attributable to
owners of the parent (in euro per share) 12
Basic earnings per share -0.12 1.87
Diluted earnings per share -0.12 1.87
Consolidated Statement of Comprehensive Income
EUR million 1 Jan–31 Dec 2024 1 Jan–31 Dec 2023
Profit for the period -95 1,436
Other comprehensive income net of tax:
Items that will not be reclassified to profit or loss
Remeasurements on defined benefit plans 5 11
Net change of other investments at fair value -15 -3
Total -10 8
Items that may be reclassified subsequently to profit or loss
Translation differences 100 -66
Cash flow hedges
recorded in equity -141 50
transferred to income statement 19 -85
Share of other comprehensive income of investments
accounted for using the equity method -2 -4
Total -23 -105
Other comprehensive income for the period, net of tax -34 -97
Total comprehensive income for the period -128 1,339
Total comprehensive income attributable to:
Owners of the parent -128 1,336
Non-controlling interests 0 3
-128 1,339
The notes are an integral part of these consolidated financial statements.
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7
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9
2
4
3
5
6
10
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12
13
14
15
16
24
17
25
18
26
19
27
20
28
21
29
22
30
23
31
Consolidated Statement of Financial Position
EUR million Note 31 Dec 2024 31 Dec 2023
ASSETS
Non-current assets
Goodwill 13 514 496
Intangible assets 13 164 185
Property, plant and equipment 14 8,872 7,786
Investments in associates and joint ventures 15 53 58
Non-current receivables 17 128 126
Deferred tax assets 11 222 127
Derivative financial instruments 16, 19 33 26
Other financial assets 17 40 54
Total non-current assets 10,026 8,858
Current assets
Inventories 18 2,898 3,366
Trade and other receivables 17 1,539 1,913
Current tax assets 50 76
Derivative financial instruments 16, 19 113 190
Current investments 17 0 5
Cash and cash equivalents 17 955 1,575
Total current assets 5,555 7,125
Total assets 15,581 15,983
EQUITY
Capital and reserves attributable to the owners
of the parent 20
Share capital 40 40
Other equity 7,377 8,423
Total 7,417 8,463
Non-controlling interests 0 0
Total equity 7,417 8,463
LIABILITIES
Non-current liabilities
Interest-bearing liabilities 21 4,362 3,487
Deferred tax liabilities 11 335 317
Provisions 22 144 187
Pension liabilities 23 73 93
Derivative financial instruments 16, 19 8 6
Other non-current liabilities 21 32 42
Total non-current liabilities 4,953 4,132
Current liabilities
Interest-bearing liabilities 21 786 581
Current tax liabilities 11 15
Derivative financial instruments 16, 19 230 212
Trade and other payables 21 2,185 2,580
Total current liabilities 3,210 3,388
Total liabilities 8,164 7,520
Total equity and liabilities 15,581 15,983
The notes are an integral part of these consolidated financial statements.
EUR million Note 31 Dec 2024 31 Dec 2023
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7
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9
2
4
3
5
6
10
11
12
13
14
15
16
24
17
25
18
26
19
27
20
28
21
29
22
30
23
31
Consolidated Cash Flow Statement
EUR million Note 1 Jan–31 Dec 2024 1 Jan–31 Dec 2023
Cash flows from operating activities
Profit before income taxes -113 1,596
Adjustments for
Share of profit (loss) of associates and joint ventures 4, 15 9 -1
Depreciation, amortization and impairments 4 980 866
Other non-cash income and expenses -159 109
Financial expenses - net 10 138 86
Profit / loss from disposal of fixed assets and shares 1 0
Cash flow before change in net working capital 855 2,656
Change in net working capital
Decrease (+) / increase (-) in trade and other receivables 326 99
Decrease (+) / increase (-) in inventories 504 261
Decrease (-) / increase (+) in trade and other payables -376 -338
Change in net working capital 454 21
Cash generated from operations 1,309 2,677
Interest and other finance cost paid -189 -109
Interest income received 38 34
Realized foreign exchange gains and losses 28 -17
Income taxes paid -5 -307
Finance cost and income taxes paid -127 -398
Net cash generated from operating activities 1,183 2,279
Cash flows from investing activities
Purchases of property, plant and equipment -1,525 -1,403
Purchases of intangible assets 13 -27 -27
Acquisitions of subsidiaries -11 -176
Proceeds from sales of property, plant and equipment 8 0
Changes in long-term receivables and other financial assets 59 78
Cash flows from investing activities -1,496 -1,528
Cash flow before financing activities -313 751
Cash flows from financing activities
Payment of (-) / proceeds from (+) current interest-bearing liabilities 295 -380
Proceeds from non-current interest-bearing liabilities 1,374 1,591
Repayments of non-current interest-bearing liabilities -782 -209
Repayments of lease liabilities -278 -254
Transactions with non-controlling interests 0 -18
Dividends paid to the owners of the parent -922 -1,168
Dividends paid to non-controlling interests -1 -3
Cash flows from financing activities -314 -441
Net decrease (-) / increase (+)
in cash and cash equivalents -627 311
Cash and cash equivalents at beginning of the period 1,575 1,271
Exchange gains (+) / losses (-) on cash and cash equivalents 7 -7
Cash and cash equivalents at end of the period 17 955 1,575
The notes are an integral part of these consolidated financial statements.
EUR million Note 1 Jan–31 Dec 2024 1 Jan–31 Dec 2023
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Consolidated Statement of Changes in Equity
EUR million Note
Share
capital
Reserve
fund
Reserve of
invested
unrestricted
equity
Treasury
shares
Fair value
and other
reserves
Actuarial
gains and
losses
Translation
differences
Retained
earnings
Owners of
the parent
Non-
controlling
interests
Total
equity
Total equity at 1 January 2024 40 7 16 -5 56 -67 -131 8,548 8,463 0 8,463
Profit for the period 0 0 0 0 0 0 0 -95 -95 0 -95
Other comprehensive income for the period, net of tax 0 0 0 0 -138 5 100 0 -34 0 -34
Total comprehensive income for the period 0 0 0 0 -138 5 100 -95 -128 0 -128
Transactions with the owners in their capacity as owners
Dividend decision 0 0 0 0 0 0 0 -922 -922 0 -922
Share-based compensation 0 0 0 0 0 0 0 3 3 0 3
Transfer from retained earnings 0 0 0 0 0 0 0 0 0 0 0
Total equity at 31 December 2024 20 40 7 16 -5 -82 -63 -32 7,536 7,417 0 7,417
EUR million Note
Share
capital
Reserve
fund
Reserve of
invested
unrestricted
equity
Treasury
shares
Fair value
and other
reserves
Actuarial
gains and
losses
Translation
differences
Retained
earnings
Owners of
the parent
Non-
controlling
interests
Total
equity
Total equity at 1 January 2023 40 7 16 -5 98 -78 -66 8,309 8,322 5 8,327
Profit for the period 0 0 0 0 0 0 0 1,433 1,433 3 1,436
Other comprehensive income for the period, net of tax 0 0 0 0 -43 11 -66 0 -97 0 -97
Total comprehensive income for the period 0 0 0 0 -43 11 -66 1,433 1,336 3 1,339
Transactions with the owners in their capacity as owners
Dividend decision 0 0 0 0 0 0 0 -1,168 -1,168 -3 -1,171
Transactions with non-controlling interests 0 0 0 0 0 0 0 -27 -27 -4 -31
Share-based compensation 0 0 0 1 0 0 0 0 1 0 1
Transfer from retained earnings 0 0 0 0 0 0 0 0 -1 0 -1
Total equity at 31 December 2023 20 40 7 16 -5 56 -67
-131 8,548 8,463 0 8,463
The notes are an integral part of these consolidated financial statements.
160
Annual review Governance Review by the Board of Directors Financial statements
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Notes to the Consolidated Financial Statements
161
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162
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163
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164
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165
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166
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167
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168
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169
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170
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171
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30
23
31
Renewable
Products
Oil
Products
Marketing &
Services
172
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173
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174
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175
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176
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177
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179
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180
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181
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183
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189
Annual review Governance Review by the Board of Directors Financial statements
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190
Annual review Governance Review by the Board of Directors Financial statements
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191
Annual review Governance Review by the Board of Directors Financial statements
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192
Annual review Governance Review by the Board of Directors Financial statements
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194
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195
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196
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197
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198
Annual review Governance Review by the Board of Directors Financial statements
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199
Annual review Governance Review by the Board of Directors Financial statements
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200
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201
Annual review Governance Review by the Board of Directors Financial statements
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202
Annual review Governance Review by the Board of Directors Financial statements
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203
Annual review Governance Review by the Board of Directors Financial statements
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204
Annual review Governance Review by the Board of Directors Financial statements
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205
Annual review Governance Review by the Board of Directors Financial statements
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206
Annual review Governance Review by the Board of Directors Financial statements
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207
Annual review Governance Review by the Board of Directors Financial statements
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208
Annual review Governance Review by the Board of Directors Financial statements
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209
Annual review Governance Review by the Board of Directors Financial statements
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210
Annual review Governance Review by the Board of Directors Financial statements
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7
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9
2
4
3
5
6
10
11
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14
15
16
24
17
25
18
26
19
27
20
28
21
29
22
30
23
31
211
Annual review Governance Review by the Board of Directors Financial statements
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9
2
4
3
5
6
10
11
12
13
14
15
16
24
17
25
18
26
19
27
20
28
21
29
22
30
23
31
212
Annual review Governance Review by the Board of Directors Financial statements
1
7
8
9
2
4
3
5
6
10
11
12
13
14
15
16
24
17
25
18
26
19
27
20
28
21
29
22
30
23
31
213
Annual review Governance Review by the Board of Directors Financial statements
1
7
8
9
2
4
3
5
6
10
11
12
13
14
15
16
24
17
25
18
26
19
27
20
28
21
29
22
30
23
31
214
Annual review Governance Review by the Board of Directors Financial statements
9
5
13
3
11
7
15
19
22
24
2
10
6
14
18
21
4
12
8
16
17
20
23
1
EUR million Note 1 Jan–31 Dec 2024 1 Jan–31 Dec 2023
Revenue 2 12,266 15,768
Change in product inventories -205 -235
Other operating income 3 33 31
Materials and services 4 -10,851 -13,173
Personnel expenses 5 -303 -355
Depreciation, amortization and write-downs 6 -230 -211
Other operating expenses 7 -666 -509
Operating profit/loss 43 1,317
Financial income and expenses 8 156 27
Financial income and expenses total 156 27
Profit/loss before appropriations and taxes 199 1,343
Appropriations 9 41 97
Income tax expenses 10 9 -262
Profit for the year 250 1,178
Parent company income statement
Parent company balance sheet
EUR million Note 31 Dec 2024 31 Dec 2023
ASSETS
Fixed assets and other long-term investments 11, 12
Intangible assets 111 116
Tangible assets 1,907 1,878
Other long-term investments 5,948 4,071
Fixed assets and other long-term investments total 7,966 6,064
Current assets
Inventories 13 1,375 1,518
Long-term receivables 14 104 64
Short-term receivables 15 2,020 2,702
Cash and cash equivalents 706 1,328
Current assets total 4,204 5,611
Total assets 12,170 11,676
SHAREHOLDERS' EQUITY AND LIABILITIES
Shareholders' equity 16
Share capital 40 40
Other funds and reserves
Invested non-restricted equity fund 19 19
Fair value reserve -53 24
Other funds and reverses total -33 43
Retained earnings 2,906 2,649
Profit for the year 250 1,178
Shareholders' equity total 3,162 3,911
Accumulated appropriations 17 1,205 1,163
Provisions for liabilities and charges 18 45 103
Liabilities 19
Long-term liabilities 3,471 2,823
Short-term liabilities 4,287 3,676
Liabilities total 7,758 6,499
Total equity and liabilities 12,170 11,676
215
Annual review Governance Review by the Board of Directors Financial statements
9
5
13
3
11
7
15
19
22
24
2
10
6
14
18
21
4
12
8
16
17
20
23
1
EUR million 1 Jan–31 Dec 2024 1 Jan–31 Dec 2023
Cash flows from operating activities
Profit/loss before approriations and taxes 199 1,343
Adjustments:
Depreciation, amortization and write-downs 230 211
Other non-cash income and expenses
1)
-107 119
Financial income and expenses -156 -27
Divesting activities, net -1 0
Operating cash flow before change in working capital 166 1,647
Change in working capital
Decrease (+)/increase in group bank account receivables 86 16
Decrease (+)/increase (-) in other interest-free receivables 297 483
Decrease (+)/increase (-) in inventories 143 396
Decrease (+)/increase in group bank account liabilities 1,044 -621
Decrease (-)/increase (+) in other interest-free liabilities -200 -349
Change in working capital 1,369 -74
Cash generated from operations 1,535 1,573
Interest and other financial expenses paid, net -96 -35
Dividends received 284 122
Income taxes paid 20 -257
Realized foreign exchange gains and losses, net 23 -20
Net cash from operating activities 1,766 1,384
Parent company cash flow statement
Cash flows from investing activities
Capital expenditure -282 -148
Proceeds from sale of fixed assets 3 0
Investments in shares in subsidiaries -1,281 -810
Investments in shares in other shares -2 -1
Proceeds from shares in subsidiaries 15 0
Change in other investments, increase (-) -530 -81
Change in other investments, decrease (+) 96 264
Net cash used in investing activities -1,982 -777
Cash flow before financing activities -216 607
Cash flows from financing activities
Proceeds from long-term liabilities 1,374 1,671
Payments of long-term liabilities -1,285 -209
Change in short-term liabilities 308 -380
Dividends paid -922 -1,168
Group contributions, net 120 0
Cash flow from financing activities -405 -86
Net increase (+)/decrease (-) in cash and cash equivalents -622 521
Cash and cash equivalents at the beginning of the period 1,328 806
Cash and cash equivalents at the end of the period 706 1,328
Net increase (+)/decrease (-) in cash and cash equivalents -622 521
EUR million 1 Jan–31 Dec 2024 1 Jan–31 Dec 2023
1)
Other non-cash income and expenses consists of change in FX derivatives, change in commodity derivatives, change in provisions and
adjustments to realized FX gains/losses.
216
Annual review Governance Review by the Board of Directors Financial statements
9
5
13
3
11
7
15
19
22
24
2
10
6
14
18
21
4
12
8
16
17
20
23
1
Buildings and structures 20–40 years
Production machinery and equipment, including special spare parts 15–20 years
Other equipment and vehicles 2–15 years
Other tangible assets 20–40 years
Goodwill and Intangible assets
1)
3–10 years
1)
Intangible assets include capitalized development expenditures
1 Accounting policies
The financial statements of Neste Corporation (Parent company) are prepared in accordance with Finnish GAAP. The financial
statements are presented in thousands of euros unless otherwise stated. The figures in the tables are exact figures and consequently
the sum of individual figures may deviate from the sum presented.
Neste Oyj prepares separate natural gas sale and network financial statements that is published in Neste Oyj’s consolidated
financial statements.
Neste’s growth and financial performance may be impacted by the general macroeconomic and geopolitical development. In
addition, regulatory changes on the European Union or individual member state level may adversely affect particularly Neste’s
renewables businesses. Neste has assessed the impacts of war in Ukraine by reviewing the carrying values of the balance sheet
items, which did not indicate a need for asset impairments. Neste does not have fixed assets in Russia nor in Ukraine. Neste’s
financial position remained good.
Revenue
Revenue include sales revenues from actual operations less discounts, indirect taxes such as value added tax and excise tax
payable by the manufacturer and statutory stockpiling fees.
Other operating income
Other operating income includes gains on the sales of fixed assets and contributions received as well as all other operating
income not related to the sales of products or services and non-recurring income.
Foreign currency items
Transactions denominated in foreign currencies have been valued using the exchange rate at the date of the transaction.
Receivables and liabilities denominated in foreign currencies outstanding on the balance sheet date have been valued using the
exchange rate quoted on the balance sheet date. Exchange rate gains and losses related to operative items are recognized as
adjustments to operative income and expenses in the income statement. Net exchange rate differences related to financial items
are reported under financial income and expenses.
Financial assets and liabilities
Derivative financial instruments are initially recognised at fair value on the trade date and are subsequently re-measured at their
fair value on the balance sheet date. Liabilities subject to fair value hedging are partly recognised at fair value. Other financial
assets and liabilities are measured at amortized cost and recognized initially at fair value on the settlement date.
Loans and receivables consist of cash and cash equivalents, loans granted together with trade and other receivables. Other
financial liabilities include interest-bearing liabilities together with trade and other payables. Due to the nature of short-term trade
and other receivables their carrying amount is expected to be equal to their fair value.
Changes in the fair value of derivatives, for which hedge accounting is not applied, are recognized in the income statement.
The effective portion of the changes in the fair value of derivative financial instruments that are designated and qualified as cash
flow hedges are recognized in equity.
Derivative financial instruments
The company uses derivative financial instruments mainly to hedge commodity price, foreign exchange and interest rate exposures.
Derivatives not qualified for hedge accounting are recognized in the income statement either in operating profit or financial income
and expenses, depending on the underlying hedged item.
Current investments
Current investments includes deposits held at banks and other liquid investments with original maturities from three months to
12 months.
Hedge accounting
The company applies hedge accounting on certain forward foreign exchange contracts, options and interest rate derivatives.
Fair value hedges
The company applies fair value hedge accounting to reduce exposure to fair value fluctuations of interest-bearing liabilities due
to changes in interest rates. Changes in fair value of derivatives designated and qualifying as fair value hedges, together with any
changes in the fair value of hedged liabilities attiributable to the hedged risk, are recognized in financial income and expenses.
Cash flow hedges
The company applies cash flow hedge accounting to reduce exposure of currency and interest rates fluctuations. The result of
foreign currency derivative contracts hedging future cash flows and qualifying for hedge accounting is recognized once matured
and when the hedged item affects the income statement. Gains or losses for interest rate swaps used to hedge the interest rate
risk exposure are accrued over the period to maturity and are recognized as an adjustment to the interest income or expense of
the underlying liabilities.
Fixed assets and other long-term investments
The balance sheet value of fixed assets consists of historical costs less depreciation according to plan and other possible write-
offs, plus revaluation permitted by local regulations. Fixed assets are depreciated using straight-line depreciation based on the
expected useful life of the asset. Land areas are not depreciated. The depreciation is based on the following expected useful
lives:
Investments in subsidiaries and other companies are measured at acquisition cost, or fair value in case the fair value is lower than
cost.
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Inventories
Inventories are stated at either cost or net realizable value, whichever is the lowest. Cost is determined using the weighted
average method. The cost of finished goods and work in progress comprises raw materials, direct labor, other direct costs,
and related production overheads (based on normal operating capacity). Net realizable value is the estimated selling price in the
ordinary course of business, less applicable variable selling expenses. Inventories held for trading purposes are measured at fair
value less selling expenses. Standard spare parts are carried as inventory and recognized in profit or loss as consumed.
Research and development
Research expenditure is recognized as an expense as incurred and included in other operating expences in the income statement.
Expenditure on development activities is capitalized only when it fulfills tight criteria e.g. development relates to new products that
are techincally and commercially feasible. The majority of the company’s development expenditure does not meet the criteria for
capitalization and are recognized as expences as incurred.
Cash pool receivables/liabilities
Cash pool items are presented as short-term receivables or liabilities.
Pension expenses
An external pension insurance company manages the pension plan.The pension expenses are booked to income statement
during the year they occur.
Appropriations
Appropriations consist of received or given group contributions from or to Neste Group companies and depreciation above the
plan.
Deferred taxes
Deferred taxes are determined on the basis of temporary differences between the financial statement and tax bases of assets
and liabilities. Deferred income tax is determined using tax rates that have been enacted at the balance sheet date and are
expected to apply.
Provisions
Foreseeable future expenses and losses that have no corresponding revenue and which Neste Corporation is committed or
obliged to settle, and whose monetary value can reasonably be assessed, are entered as expenses in the income statement
and included as provisions in the balance sheet. These items include expenses relating to the pension liabilities, guarantee
obligations, restructuring provisions, expenses relating to the future clean-up of proven environmental damage and obligation to
return emission allowances. Provisions are recorded based on management estimates of the future obligation.
2 Revenue
3 Other operating income
Revenue by segment, EUR million 2024 2023
Renewable Products
1)
3,230 4,985
Oil Products 8,871 10,582
Marketing & Services 4 -7
Other 161 208
12,266 15,768
EUR million 2024 2023
Rental income 2 3
Gain on sale of intangible and tangible assets 2 0
Insurance compensations 14 7
Government grants 13 14
Other 2 7
Other operating income total 33 31
Revenue by market area, EUR million 2024 2023
Finland 4,337 4,668
Other Nordic countries 1,809 2,867
Baltic Rim 1,128 1,465
Other European countries 4,024 4,770
USA 375 1,420
Other countries 591 578
12,266 15,768
1)
The tax administrations of Finland and Singapore concluded in 2024 a bilateral advance pricing agreement (BAPA) impacting the transfer pricing between
Neste Oyj and Neste Singapore Pte. Ltd. This resulted in an increase in the net sales of Neste Oyj for 2024 of EUR 95 million of which EUR 58 million relate
to transfer pricing adjustments for 2022 and 2023.
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EUR million 2024 2023
Depreciation according to plan 213 207
Write-offs 18 4
Depreciations, amortization and write-downs total 230 211
EUR million 2024 2023
Operating leases and other property costs
1)
-15 19
Repairs and maintenance
2)
331 117
Planning and consulting services 45 40
IT services 141 149
Other 163 183
Other operating expenses total 666 509
Fees charged by the statutory auditor
EUR thousands 2024 2023
Authorised Public Accountants KPMG KPMG
Auditor's fees 717 680
Auditor's statements 152 35
Tax advisory 233 204
Other advisory services 174 260
1,276 1,179
4 Materials and services 6 Depreciation, amortization and write-downs
7 Other operating expenses
5 Personnel expenses
EUR million 2024 2023
Materials and supplies
Purchases during the period 10,476 12,420
Change in inventories -62 162
10,414 12,581
External services 437 592
Materials and services total 10,851 13,173
EUR million 2024 2023
Wages, salaries and remunerations 259 286
Indirect employee costs
Pension costs 60 69
Other indirect employee costs 9 12
Wages and salaries capitalized in fixed assets -24 -11
Personnel expenses total 303 355
Average number of employees 2024 2023
White-collar 2,514 2,919
Blue-collar 717 743
3,231 3,661
Salaries and remuneration
Key management compensations are presented in Note 25 in the Neste Group consolidated financial statements.
1)
The environmental provision related to the closure of the Naantali refinery was released by EUR 55 million during the third quarter of 2024.
2)
The increase in maintenance costs is due to a major turnaround at the Porvoo refinery.
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EUR million 2024 2023
Dividend income
From Group companies 284 122
Dividend income total 284 122
Interest income from long-term loans and receivables
From Group companies 4 1
From others 6 5
Interest income from long-term loans and receivables total 10 6
Other interest and financial income
From Group companies 40 18
Other 34 39
Other interest and financial income total 74 57
Write-downs on long-term investments
Write-drowns of other long-term investments 0 0
Write-downs on long-term investments total 0 0
Interest expenses and other financial expenses
To Group companies -52 -46
Other -135 -76
Interest expenses and other financial expenses total -186 -122
Exchange rate differences -25 -36
Financial income and expenses total 156 27
Total interest income and expenses, EUR million 2024 2023
Interest income 84 62
Interest expenses -179 -120
Net interest expenses -96 -57
EUR million 2024 2023
Change in depreciation difference
Difference between depreciation according to plan
and depreciation in taxation -42 -23
Group contributions
Group contributions received 84 120
Appropriations total 41 97
EUR million 2024 2023
Income taxes on regular business operations 2 261
Taxes for prior periods
1)
11 -1
Change in deferred tax assets -23 3
Income tax expense total -9 262
8 Financial income and expenses
9 Appropriations
10 Income tax expense
1)
The adjustments to prior period taxes resulted largely from the finalization of a bilateral advance pricing agreement (BAPA) between the tax administrations of
Finland and Singapore, which also resulted in transfer pricing adjustments for 2022 and 2023.
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Intangible assets, EUR million Goodwill Other intangible assets Total
Acquisition cost as of 1 January 2024 1 382 383
Increases 0 26 26
Decreases 0 -3 -3
Transfers between items 0 0 0
Acquisition cost as of 31 December 2024 1 406 407
Accumulated amortization and write-downs as of 1 January 2024 1 266 268
Amortization for the period 0 29 29
Accumulated amortization and write-downs as of 31 December 2024 1 295 296
Balance sheet value as of 31 December 2024 0 111 111
Intangible assets, EUR million Goodwill Other intangible assets Total
Acquisition cost as of 1 January 2023 1 358 359
Increases 0 24 24
Decreases 0 0 0
Transfers between items 0 0 0
Acquisition cost as of 31 December 2023 1 382 383
Accumulated amortization and write-downs as of 1 January 2023 1 235 236
Amortization for the period 0 32 32
Accumulated amortization and write-downs as of 31 December 2023 1 266 268
Balance sheet value as of 31 December 2023 0 116 116
11 Fixed assets and long-term investments
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Tangible assets, EUR million Land areas
Buildings
and structures
Machinery
and equipment
Other
tangible assets
Advances paid and
construction in progress Total
Acquisition cost as of 1 January 2024 26 1,487 3,408 103 204 5,228
Increases 0 8 95 0 124 228
Decreases 0 -1 -3 0 -12 -17
Transfers between items 0 17 81 0 -98 0
Acquisition cost as of 31 December 2024 26 1,511 3,580 103 218 5,439
Accumulated depreciation and write-downs as of 1 January 2024 0 879 2,446 51 0 3,377
Accumulated depreciation and write-downs of decreases and transfers 0 -1 -1 0 0 -2
Depreciation and write-downs for the period 0 39 142 2 0 184
Accumulated depreciation and write-downs as of 31 December 2024 0 917 2,588 53 0 3,559
Revaluations 6 21 0 0 0 27
Balance sheet value as of 31 December 2024 31 615 993 50 218 1,907
Balance sheet value of machinery and equipments used in production 993
Tangible assets, EUR million Land areas
Buildings
and structures
Machinery
and equipment
Other
tangible assets
Advances paid and
construction in progress Total
Acquisition cost as of 1 January 2023 26 1,453 3,323 102 167 5,072
Increases 0 23 32 1 116 172
Decreases 0 0 -14 0 -1 -15
Transfers between items 0 10 66 1 -78 0
Acquisition cost as of 31 December 2023 26 1,487 3,408 103 204 5,228
Accumulated depreciation and write-downs as of 1 January 2023 0 840 2,323 50 0 3,213
Accumulated depreciation and write-downs of decreases and transfers 0 0 -12 0 0 -11
Depreciation and write-downs for the period 0 39 135 2 0 176
Accumulated depreciation and write-downs as of 31 December 2023 0 879 2,446 51 0 3,377
Revaluations 6 21 0 0 0 27
Balance sheet value as of 31 December 2023 31 629 961 52 204 1,878
Balance sheet value of machinery and equipments used in production 961
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Other long-term investments
Shares in
group companies
Receivables from
group companies
Shares in
associated
companies
Receivables
from associated
companies
Other shares
and holdings
Other
receivables Total
Acquisition cost as of 1 January 2024 3,939 0 7 107 23 3 4,079
Increases
1)
1,281 603 0 6 3 0 1,892
Decreases -15 0 0 0 0 0 -15
Acquisition cost as of 31 December 2024 5,206 603 7 113 25 3 5,956
Accumulated depreciation and write-downs as of 1 January 2024 0 0 0 0 5 3 8
Decreases 0 0 0 0 0 0 0
Accumulated depreciation and write-downs as of 31 December 2024 0 0 0 0 5 3 8
Balance sheet value as of 31 December 2024 5,206 603 7 113 20 0 5,948
Other long-term investments
Shares in
group companies
Receivables from
group companies
Shares in
associated
companies
Receivables
from associated
companies
Other shares
and holdings
Other
receivables Total
Acquisition cost as of 1 January 2023 3,130 170 7 82 21 3 3,413
Increases 810 0 0 26 1 0 837
Decreases 0 -170 0 -1 0 0 -171
Acquisition cost as of 31 December 2023 3,939 0 7 107 23 3 4,079
Accumulated depreciation and write-downs as of 1 January 2023 0 0 0 0 5 3 8
Decreases 0 0 0 0 0 0 0
Accumulated depreciation and write-downs as of 31 December 2023 0 0 0 0 5 3 8
Balance sheet value as of 31 December 2023 3,939 0 7 107 17 0 4,071
Interest-bearing and interest-free receivables, EUR million 2024 2023
Interest-bearing receivables 716 107
716 107
1)
Additions regarding shares mainly comprise capital contributions
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12 Revaluations
13 Inventories
14 Long-term receivables
15 Short-term receivables
EUR million
Revaluations as of
Jan 1 2024 Increases Decreases
Revaluations as of
Dec 31 2024
Land areas 6 0 0 6
Buildings 21 0 0 21
Revaluations total 27 0 0 27
EUR million
Revaluations as of
Jan 1 2023 Increases Decreases
Revaluations as of
Dec 31 2023
Land areas 6 0 0 6
Buildings 21 0 0 21
Revaluations total 27 0 0 27
EUR million 2024 2023
Raw materials and supplies 749 687
Products/finished goods 626 831
Advance payments on inventories 0 0
Inventories total 1,375 1,518
Replacement value of inventories 1,438 1,607
Book value of inventories 1,375 1,518
Difference 63 89
EUR million 2024 2023
Long-term receivables from others
Long-term advance payments 13 16
Other receivables 33 32
Deferred tax assets 57 16
Long-term receivables total 104 64
Short-term accrued income and prepaid expenses, EUR million 2024 2023
Accrued interest 10 6
Derivative financial instruments 198 280
Current investments 0 5
Other 26 48
Total 235 338
EUR million 2024 2023
Receivables from Group companies
Trade receivables 625 712
Loan receivables 6 85
Group contribution receivables 84 120
Other receivables 500 588
Accrued income and prepaid expenses 94 127
Total 1,308 1,633
Receivables from associated companies
Trade receivables 18 22
Other receivables 0 0
Total 18 22
Receivables from others
Trade receivables 477 666
Other receivables 75 170
Accrued income and prepaid expenses 141 211
Total 693 1,047
Short-term receivables total 2,020 2,702
Policies and principles for revaluations and evaluation methods
The revaluations are based on fair values at the moment of revaluation.
Deferred taxes have not been booked on revaluations.
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17 Accumulated appropriations
18 Provisions for liabilities and charges
EUR million 2024 2023
Share capital at 1 January 40 40
Share capital at 31 December 40 40
Fair value reserve at 1 January 24 69
Increases 1,667 3,265
Decreases -1,744 -3,310
Fair value reserve at 31 December -53 24
Restricted shareholders equity -13 64
Invested non-restricted equity fund at 1 January 19 19
Invested non-restricted equity fund at 31 December 19 19
Retained earnings at 1 January 3,827 3,817
Dividends paid -922 -1,168
Profit for the year 250 1,178
Retained earnings at 31 December 3,155 3,827
Non-restricted shareholders equity 3,174 3,847
Capitalized development expenditure 14 12
Distributable equity 3,108 3,835
The amount of own shares is presented in the group’s consolidated financial statements in Note 20.
EUR million 2024 2023
Depreciation difference 1,205 1,163
2024
EUR million
Restructuring
provisions
Provision for
environment
Provision for environment
for Naantali refining
operations closure
Other
provisions Total
Balance sheet value
as of 1 January 2024 0 1 99 3 103
Increase
1)
13 0 0 0 13
Decrease 11 0 58 2 71
Balance sheet value
as of 31 December 2024 2 1 42 0 45
2023
EUR million
Restructuring
provisions
Provision for
environment
Provision for environment
for Naantali refining
operations closure
Other
provisions Total
Balance sheet value as of
1 January 2023 0 1 111 4 117
Increase 0 0 0 3 3
Decrease 0 0 12 4 16
Balance sheet value as of
31 December 2023 0 1 99 3 103
1)
The environmental provision related to Naantali refinery’s shutdown in 2021 was reduced by EUR 55 million during the third quarter of 2024 based on an action
plan updated in line with the assessment of the situation and research findings.
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19 Liabilities
Long-term liabilities, EUR million 2024 2023
Bonds 2,115 2,110
Loans from financial institutions 1,327 609
Advanced payments 17 18
Liabilities to Group companies
Other long-term liabilities 3 80
Accruals and deferred income 8 6
Long-term liabilities total 3,471 2,823
Interest-bearing liabilities due after five years, EUR million 2024 2023
Loans from financial institutions 93 93
Bonds 1,091 1,587
1,184 1,680
Short-term liabilities, EUR million 2024 2023
Bonds 0 201
Loans from financial institututions 81 6
Advances received 14 11
Trade payables 642 689
Liabilities to Group companies
Advances received 0 0
Trade payables 643 692
Other short-term liabilities 1,737 1,119
Accruals and deferred income 67 71
Total 2,448 1,881
Liabilities to associated companies
Trade payables 11 9
Total 11 9
Other short-term liabilities 738 530
Accruals and deferred income 355 348
Short-term liabilities total 4,287 3,676
Short-term accruals and deferred income, EUR million 2024 2023
Salaries and indirect employee costs 55 95
Accrued interests 57 43
Derivative financial instruments 296 277
Other short-term accruals and deferred income 5 4
421 419
Interest-bearing and interest-free liabilities, EUR million 2024 2023
Long-term liabilities
Interest-bearing liabilities 3,442 2,799
Interest-free liabilities 29 24
3,471 2,823
Short-term liabilities
Interest-bearing liabilities 2,117 1,322
Interest-free liabilities 2,170 2,354
4,287 3,676
Listed bond issues
Issued/Maturity
Interest
basis
Interest
rate, % Currency
Nominal
EUR million
Carrying
amount,
EUR million
2021/2028 Fixed 0.750 EUR 500 497
2023/2029 Fixed 3.875 EUR 500 497
2023/2031 Fixed 3.875 EUR 600 607
2023/2033 Fixed 4.250 EUR 500 514
Total outstanding carrying amount 31 December 2024 2,100 2,115
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20 Contingent liabilities
Contingent liabilities, EUR million 2024 2023
Contingent liabilities given on own behalf
Real estate mortgages 26 26
Pledged assets 0 0
Other contingent liabilities 21 23
Total 47 49
Contingent liabilities given on behalf of Group companies
Guarantees 164 206
Total 164 206
Contingent liabilities given on behalf of associated companies
Pledged assets 119 114
Total 119 114
Contingent liabilities given on behalf of others
Guarantees 1 1
Total 1 1
Other contingent liabilities
The Company is obliged to adjust VAT deductions made from real estate investments if the taxable utilization of real estate will
decrease during a 10 years control period. The amount of VAT deductions on 31 December 2024 was EUR 34 million.
Operating lease liabilities 2024 2023
Due within a year 23 10
Due after a year 32 8
Total 55 19
Capital commitments 2024 2023
Commitments for purchase of property,
plant and equipment and intangible assets 35 100
Other commitments 5 8
Total 40 108
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31 Dec 2024 31 Dec 2023
Nominal value by maturity Fair Value Nominal value by maturity Fair Value
EUR million < 1 year > 1 year Positive Negative Net < 1 year > 1 year Positive Negative Net
Foreign exchange derivatives
Interest swaps 0 300 0 6 -6 0 0 0 0 0
Foreign exchange derivatives, forwards 1,882 0 15 75 -60 1,944 0 33 3 30
Foreign exchange options
Purchased 7 0 0 0 0 0 0 0 0 0
Written 7 0 0 0 0 0 0 0 0 0
Derivatives designated as cash flow hedges 1,896 0 15 81 -66 1,944 0 33 3 30
Interest rate swaps 0 550 29 0 29 0 550 26 0 26
Derivatives designated as fair value hedges 0 550 29 0 29 0 550 26 0 26
Foreign exchange derivatives, forwards 3,270 0 24 72 -48 2,766 0 38 7 31
Intra-group forward foreign exchange contracts 1,795 0 44 22 22 1,350 0 5 22 -17
Currency options
Purchased 0 0 0 0 0 0 0 0 0 0
Written 0 0 0 0 0 0 0 0 0 0
Intra-group currency options
Purchased 0 0 0 0 0 0 0 0 0 0
Written 0 0 0 0 0 0 0 0 0 0
Non-hedge accounting 5,065 0 68 94 -26 4,117 0 43 29 15
21 Derivative financial instruments
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Nominal value by maturity Fair Value Nominal value by maturity Fair Value
EUR million < 1 year > 1 year Positive Negative Net < 1 year > 1 year Positive Negative Net
Commodity derivatives
1)
Oil and vegetable oil derivatives
Sold forwards, million bbl 16 0 21 26 -5 25 0 74 26 48
Purchased forwards, million bbl 17 0 37 51 -14 25 0 13 122 -109
Intra-group oil and vegetable oil derivatives
Sold forwards, million bbl 9 0 24 19 5 11 0 33 17 16
Purchased forwards, million bbl 10 0 17 18 -1 11 0 35 29 6
Electricity and gas derivatives
Sold forwards, GWh 7 126 0 0 0 0 0 0 0 0
Purchased forwards, GWh 2,348 873 20 6 13 2,172 767 1 57 -57
Intra-group electricity and gas derivatives
Sold forwards, GWh 1,061 661 2 12 -10 1,282 531 54 0 54
Non-hedge accounting 3,469 1,659 119 132 -12 3,526 1,298 210 252 -42
Derivatives Total 232 307 -75 312 283 29
of which
Current derivative financial instruments 198 296 -98 280 277 3
Non-current derivative financial instruments 33 11 22 32 6 26
1)
Commodity derivative contracts with non-hedge accounting status include oil, vegetable oil, electricity and gas derivative contracts. They consist of trading derivative contracts and cash flow hedges without hedge accounting status.
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Fair value hierarchy of derivatives, EUR million 2024 2023
Financial assets Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total
Non-current derivative financial instruments
Interest rate derivatives 0 29 0 29 0 26 0 26
Currency derivatives 0 0 0 0 0 0 0 0
Commodity derivatives 0 4 0 4 0 6 0 6
Other financial assets 0 0 0 0 0 0 0 0
Current derivative financial instruments
Currency derivatives 0 83 0 83 0 76 0 76
Commodity derivatives 57 58 0 115 69 134 0 204
Financial liabilities
Non-current derivative financial instruments
Interest rate derivatives 0 6 0 6 0 0 0 0
Currency derivatives 0 0 0 0 0 0 0 0
Commodity derivatives 0 5 0 5 0 6 0 6
Current derivative financial instruments
Currency derivatives 0 169 0 169 0 31 0 31
Commodity derivatives 71 56 0 127 71 175 0 246
Financial instruments that are measured in the balance sheet at fair value are presented according to following fair value measurement hierachy:
Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities
Level 2: inputs other than quoted price included within Level 1 that are observable for the assets or liability, either directly (i.e. as prices) or indirectly (i.e derived from prices)
Level 3: inputs for the assets or liablity that is not based on obervable market data (unobservable inputs).
Fair value estimations
Derivative financial instruments are initially recognized and subsequently re-measured at their fair values i.e.the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participant and the measurement
date.
The fair value of exchange traded commodity futures and option contracts is determined using the forward exchange market quotations as per last business day of financial year. The fair value of over-the-counter derivative contracts is calculated using the net
present value of the forward derivative contracts quoted market prices as per last business day of financial year.
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Country of
incorporation No of shares Holding -%
Subsidiary shares
Kiinteistö Oy Espoon Keilaranta 21 Finland 16,000 100.00
Navidom Oy Finland 50 50.00
Neste (Suisse) S.A. Swizerland 200 100.00
Neste AB Sweden 2,000,000 100.00
Neste Belgium NV Belgium 615 100.00
Neste Canada Canada 30,000 100.00
Neste Components B.V. Netherlands 40 100.00
Neste Eesti AS Estonia 10,000 100.00
Neste Germany GmbH Germany 25,000 100.00
Neste Insurance Limited Guernsey 7,000,000 100.00
Neste Italy S.R.L. Italy 1 100.00
Neste Markkinointi Oy Finland 210,560 100.00
Neste Netherlands B.V. Netherlands 18,000 100.00
Neste Pretreatment Rotterdam B.V. Netherlands 18,000 100.00
Neste Renewable Products Inc USA 5,000 100.00
Neste Renewable Solutions US, Inc. USA 1,000 100.00
Neste RPC Solutions US, Inc. USA 1,000 100.00
Neste Shipping Oy Finland 101 100.00
Neste Singapore Pte. Ltd. Singapore 1,727,535,875 100.00
Neste Spain S.L. Spain 3,000 100.00
Neste US, Inc. USA 1,000 100.00
SIA Neste Latvija Latvia 348 100.00
UAB Neste Lietuva Lithuania 1,055,134 100.00
Associated companies
A/B Svartså Vattenverk - Mustijoen Vesilaitos O/Y Finland 14 40.00
Kilpilahti Powerplant Ltd. Finland 20,000 40.00
Neste Arabia Co. Ltd. Saudi Arabia 480 48.00
22 Shares and holdings
23 Disputes and potential litigations
Other shares and holdings
Circularise B.V. Netherlands 19,420
CLEEN Oy Finland 100
Kiinteistö Oy Himoksen Aurinkopaikka Finland 51
Kiinteistö Oy Katinkullan Hiekkaniemi Finland 102
Kiinteistö Oy Katinkultaniemi Finland 51
Kiinteistö Oy Kotkan Klubi Finland 30
Kiinteistö Oy Kuusamon Tähti 1 Finland 51
Kiinteistö Oy Laavutieva Finland 51
Kiinteistö Oy Lapinniemi & Osakeyhtiö Lapinniemi Finland 24
Posintra Oy Finland 190
St Laurence Golf Oy, B-osake Finland 3
Sunfire GmbH Germany 264,121
Telephone shares
Elisa Oyj Finland 1
Pietarsaaren Seudun Puhelin Oy Finland 3
Savonlinnan Puhelinosuuskunta SPY Finland 1
Country of
incorporation No of shares
Neste Corporation is involved in legal proceedings and disputes incidental to its business. In management’s opinion, the outcome
of these cases is difficult to predict but not likely to have material effect on the Neste’s financial position.
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24 Unbundling of natural gas network operations
INCOME STATEMENT, EUR million 1 Jan–31 Dec 2024 1 Jan–31 Dec 2023
Revenue 10 9
Other operating income
Utility income 13 7
Materials and services 0 0
External services
Network service fees -21 -16
Personnel expenses 0 0
Depreciation, amortization and write-downs
Depreciation according to the plan
Planned depreciation of natural gas network assets 0 0
Other operating expenses -1 0
Operating profit/loss 1 0
Financial income and expenses 0 0
Profit/loss before appropriations and taxes 1 0
Profit/loss for the year 1 0
BALANCE SHEET, EUR million 31 Dec 2024 31 Dec 2023
ASSETS
Fixed assets and other long-term investments
Tangible assets
Tangible assets of natural gas network 0 0
0 0
Current assets
Inventories 0 0
Receivables
Long-term receivables 0 0
Short-term receivables
Trade receivables 1 3
Other receivables 1 0
Cash and cash equivalents -1 0
1 3
Total assets 1 3
SHAREHOLDERS' EQUITY AND LIABILITIES
Shareholders' equity
Share capital 0 0
Other funds and reserves 0 0
Retained earnings -1 -1
Profit/loss for the year 1 0
0 -1
Accumulated appropriations 0 0
Provisions for liabilities and charges 0 0
Long-term liabilities
Short-term liabilities 0 0
Short-term interest-fee liabilities
Trade payables 1 0
Other short-term liabilities
1)
0 4
1 4
Total equity and liabilities 1 3
1)
No share capital has been presented in the financial statements for 2023. The share capital has been corrected from other short-term liabilities to the share
capital in the financial statements for 2023.
Accounting policies
According to the Natural Gas Market Act, business transactions and balance sheet items are booked in to the income
statements and balance sheets of business in accordance with the accraul principle.
Income statement and balance sheet items that not directly attributable to business operations in accordance with the
accruals principle, distributed on the basis of the size of the business.
The remaining balance sheet diffrence will ge equalized in the balance sheet to the point ‘Cash and cash equilevants’.
Chapter 13 of the Natural gas Market Act (587/2017) provides for accounting separation of natural gas business and non-
natural gas business. In addition, computational separation is regulated by the Decree of the Ministry of Economic Affairs and
Employment of the separation natural gas businesses (1306/2019).
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Tangible assets Natural gas network
Acquisition cost as of 1 January 2024 0
Increases 0
Decreases 0
Acquisition cost as of 31 December 2024 0
Accumulated depreciation and write-downs as of 1 January 2024 0
Depreciation and write-downs for the period 0
Accumulated depreciation and write-downs as of 31 December 2024 0
Balance sheet value as of 31 December 2024 0
Tangible assets Natural gas network
Acquisition cost as of 1 January 2023 0
Increases 0
Decreases 0
Acquisition cost as of 31 December 2023 0
Accumulated depreciation and write-downs as of 1 January 2023 0
Depreciation and write-downs for the period 0
Accumulated depreciation and write-downs as of 31 December 2023 0
Balance sheet value as of 31 December 2023 0
Natural gas network’s xed assets net investments
Natural gas network’s return on investment
2024 2023
Return on investment, % 43.81 -5.74
Notes to the unbundling of natural gas network operations
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Unbundling of natural gas sales operations
INCOME STATEMENT, EUR million 1 Jan–31 Dec 2024 1 Jan–31 Dec 2023
Revenue 79 105
Other operating income
Utility income 75 78
Materials and services
Materials, supplies and goods
Purchases during the period -158 -184
Personnel expenses 0 0
Depreciation, amortization and write-downs 0 0
Other operating expenses 0 0
Operating loss/profit -3 -1
Financial income and expenses 0 0
Loss/profit before appropriations and taxes -3 -1
Loss/profit for the year -3 -1
BALANCE SHEET, EUR million 31 Dec 2024 31 Dec 2023
ASSETS
Fixed assets and other long-term investments 0 0
Current assets
Inventories 0 0
Receivables
Long-term receivables 0 0
Short-term receivables
Trade receivables 5 25
Other receivables 4 1
Cash and cash equivalents 30 9
39 35
Total assets 39 35
SHAREHOLDERS’ EQUITY AND LIABILITIES
Shareholders' equity
Share capital 0 0
Other funds and reserves 0 0
Retained earnings 4 5
Loss/profit for the year -3 -1
1 4
Accumulated appropriations 0 0
Provisions for liabilities and charges 0 0
Liabilities
Long-term liabilities 0 0
Short-term liabilities
Short-term interest-fee liabilities
Trade payables 38 31
38 31
Total equity and liabilities 39 35
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The effect of financial instruments in the income statement 2024 2023
Materials and services; Derivatives
Realized gain 0 0
Realized loss 0 0
Unrealized loss 0 0
Currency derivatives
Realized and unrealized gains and losses on currency derivatives related to the sale of natural gas are booked in the materials
and services group on the income statement in the sale of natural gas.
Notes to the unbundling of natural gas sales operations
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Proposal for the distribution of earnings and signing
of the Review by the Board of Directors and the Financial Statements
Espoo, 13 February 2025
Matti Kähkönen
Pasi Laine John Abbott
Nick Elmslie Just Jansz
Conrad Keijzer Eeva Sipilä
Johanna Söderström Sari Mannonen
Heikki Malinen
President and CEO
The Parent company’s distributable equity as of 31 December 2024 stood at EUR 3,108 million. The Board of Directors proposes
Neste Corporation to pay a dividend of EUR 0.20 per share for 2024, totalling EUR 154 million, and that any remaining distributable
funds be allocated to retained earnings.
Confirmation of the Board of Directors and the CEO
We confirm that
• the consolidated financial statements prepared in accordance with the International Financial Reporting Standards (IFRS) as
adopted by the European Union and the financial statements of the parent company prepared in accordance with the laws
and regulations governing the preparation of financial statements in Finland give a true and fair view of the assets, liabilities,
financial position and profit or loss of the company and the undertakings included in the consolidation taken as a whole;
• the management report includes a fair review of the development and performance of the business and the position of the
company and the undertakings included in the consolidation taken as a whole, together with a description of the principal
risks and uncertainties that they face and
• that the sustainability report within management report is prepared in accordance with sustainability reporting standards
referred to in Chapter 7 of the Accounting Act and with the Article 8 of Taxonomy Regulation
The Auditor’s Note
A report on the audit performed has been issued today.
Helsinki, 13 February 2025
KPMG Oy Ab
Authorised Public Accountants
Leenakaisa Winberg
Authorized Public Accountant
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This document is an English translation of the Finnish auditor’s report. Only the Finnish version of the report is legally binding.
Report on the Audit of the Financial Statements
Opinion
We have audited the financial statements of Neste Corpora-
tion (business identity code 1852302-9) for the year ended 31
December, 2024. The financial statements comprise the con-
solidated statement of financial position, income statement,
statement of comprehensive income, statement of changes
in equity, statement of cash flows and notes, including mate-
rial accounting policy information, as well as the parent com-
pany’s balance sheet, income statement, statement of cash
flows and notes.
In our opinion
• the consolidated financial statements give a true and fair
view of the group’s financial position, financial performance
and cash flows in accordance with IFRS Accounting
Standards as adopted by the EU
• the financial statements give a true and fair view of the
parent company’s financial performance and financial
position in accordance with the laws and regulations
governing the preparation of financial statements in Finland
and comply with statutory requirements.
Our opinion is consistent with the additional report submitted
to the Audit Committee.
Basis for Opinion
We conducted our audit in accordance with good auditing
practice in Finland. Our responsibilities under good auditing
practice are further described in the Auditor’s Responsibilities
for the Audit of the Financial Statements section of our report.
We are independent of the parent company and of the group
companies in accordance with the ethical requirements that
are applicable in Finland and are relevant to our audit, and we
have fulfilled our other ethical responsibilities in accordance
with these requirements.
In our best knowledge and understanding, the non-audit
services that we have provided to the parent company and
group companies are in compliance with laws and regulations
applicable in Finland regarding these services, and we have
not provided any prohibited non-audit services referred to in
Article 5(1) of regulation (EU) 537/2014. The non-audit ser-
vices that we have provided have been disclosed in note 9 to
the consolidated financial statements.
We believe that the audit evidence we have obtained is suf-
ficient and appropriate to provide a basis for our opinion.
Materiality
The scope of our audit was influenced by our application of
materiality. The materiality is determined based on our profes-
sional judgement and is used to determine the nature, timing
and extent of our audit procedures and to evaluate the effect
of identified misstatements on the financial statements as a
whole. The level of materiality we set is based on our assess-
ment of the magnitude of misstatements that, individually or
in aggregate, could reasonably be expected to have influence
on the economic decisions of the users of the financial state-
ments. We have also taken into account misstatements and/
or possible misstatements that in our opinion are material for
qualitative reasons for the users of the financial statements.
Auditor’s Report
To the Annual General Meeting of Neste Corporation
Key Audit Matters
Key audit matters are those matters that, in our professional
judgment, were of most significance in our audit of the finan-
cial statements of the current period. These matters were
addressed in the context of our audit of the financial state-
ments as a whole, and in forming our opinion thereon, and
we do not provide a separate opinion on these matters. The
significant risks of material misstatement referred to in the EU
Regulation No 537/2014 point (c) of Article 10(2) are included
in the description of key audit matters below.
We have also addressed the risk of management override of
internal controls. This includes consideration of whether there
was evidence of management bias that represented a risk of
material misstatement due to fraud.
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THE KEY AUDIT MATTER HOW THE MATTER WAS ADDRESSED IN THE AUDIT
Biofuel credits
(reference to notes 4, 5 and 18 in the consolidated financial statements)
Renewable Products revenue includes income deriving
from biofuel credits which Neste earns its sales operations
especially in the USA. Neste’s biofuel credits relate to the
import and sale of renewable fuels in the USA in the form
of Renewable Identification Number (RINs) and Low
Carbon Fuel Standard (LCFSs) and Blenders Tax Credits
(BTC).
RINs and LCFSs are accounted for as government
grants upon receipt of the product inventory in the USA
and are recognized as a revenue when biofuel credits are
sold to a third party. RINs and LCFSs are accounted for
as inventory to the extent they have been separated from
the physical goods, which happens when renewable fuel
is blended with fossil fuel. The BTC credit system expired
at the end of 2024.
As there is a risk relating to accuracy of biofuel credits
it has been considered as a key audit matter.
Our audit procedures related to biofuel credits included:
• Evaluating the appropriateness of the accounting
policies applied when recording biofuel credits in relation
to underlying IFRS principles.
• Evaluation of the process for registering biofuel credits
and for reconciling balances to the eligible credits.
• Comparing of the registered balances against the
systems administered by the Environmental Protection
Agency (EPA) in the USA.
In addition, our test of details included the following
procedures to confirm accuracy of biofuel credits:
• Testing of revenue recognition on a sample basis
based on the sales agreements and system generated
documents.
• Comparing the valuation of RINs and LCFSs accounted
for as inventory to quoted market prices.
• Comparing of the value of the BTC to that defined by
the authorities in the USA.
THE KEY AUDIT MATTER HOW THE MATTER WAS ADDRESSED IN THE AUDIT
Valuation of inventories
(reference to note 18 in the consolidated financial statements)
The company has significant inventory balances both in
the Renewable Products and Oil Products segments. The
inventory is valued at the lower of cost or net realizable
value. The cost of inventory in the Renewable Products
segment reflects purchase prices, which are impacted by
the market prices of different feedstocks as well as the
mix of feedstocks purchased.
Inventory management, stocktaking routines and
costing of inventories are underlying key factors in
determining the value of inventories.
Due to complexity of the inventory valuation
calculations for Renewable Products the valuation of
inventories in Renewable Product segment is considered
as a key audit matter.
Our audit procedures related to valuation of Renewable
Products’ inventories included:
• Evaluating the appropriateness of the accounting
policies applied in relation to IFRS standards.
• Testing of controls over inventory management and
valuation.
• Performing substantive audit procedures in order to test
the accuracy of inventory valuation at the lower of cost
or net realization value at reporting date by testing on a
sample basis accuracy of relevant components related
to valuation.
In addition, we have assessed the appropriateness of the
Group’s disclosures in respect of inventory valuation.
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Responsibilities of the Board of Directors
and the Managing Director for the Financial
Statements
The Board of Directors and the Managing Director are respon-
sible for the preparation of consolidated financial statements
that give a true and fair view in accordance with IFRS Account-
ing Standards as adopted by the EU, and of financial state-
ments that give a true and fair view in accordance with the laws
and regulations governing the preparation of financial state-
ments in Finland and comply with statutory requirements. The
Board of Directors and the Managing Director are also respon-
sible for such internal control as they determine is necessary
to enable the preparation of financial statements that are free
from material misstatement, whether due to fraud or error.
In preparing the financial statements, the Board of Direc-
tors and the Managing Director are responsible for assess-
ing the parent company’s and the group’s ability to continue
as a going concern, disclosing, as applicable, matters relat-
ing to going concern and using the going concern basis of
accounting. The financial statements are prepared using the
going concern basis of accounting unless there is an intention
to liquidate the parent company or the group or cease opera-
tions, or there is no realistic alternative but to do so.
Auditor’s Responsibilities for the Audit of
the Financial Statements
Our objectives are to obtain reasonable assurance about
whether the financial statements as a whole are free from
material misstatement, whether due to fraud or error, and to
issue an auditor’s report that includes our opinion. Reason-
able assurance is a high level of assurance, but is not a guar-
antee that an audit conducted in accordance with good audit-
ing practice will always detect a material misstatement when
it exists. Misstatements can arise from fraud or error and are
considered material if, individually or in the aggregate, they
could reasonably be expected to influence the economic deci-
sions of users taken on the basis of the financial statements.
As part of an audit in accordance with good auditing prac-
tice, we exercise professional judgment and maintain profes-
sional skepticism throughout the audit. We also:
• Identify and assess the risks of material misstatement of
the financial statements, whether due to fraud or error,
design and perform audit procedures responsive to
those risks, and obtain audit evidence that is sufficient
and appropriate to provide a basis for our opinion. The
risk of not detecting a material misstatement resulting
from fraud is higher than for one resulting from error, as
fraud may involve collusion, forgery, intentional omissions,
misrepresentations, or the override of internal control.
• Obtain an understanding of internal control relevant to
the audit in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose
of expressing an opinion on the effectiveness of the parent
company’s or the group’s internal control.
• Evaluate the appropriateness of accounting policies used
and the reasonableness of accounting estimates and
related disclosures made by management.
THE KEY AUDIT MATTER HOW THE MATTER WAS ADDRESSED IN THE AUDIT
Valuation of property, plant and equipment and goodwill in Renewable Products
(reference to notes 4, 13 and 14 in the consolidated financial statements)
As of 31 December 2024, the total assets of Renewable
Products (RP) segment amounts EUR 9.9 billion including
EUR 0.5 billion value of goodwill.
During the latest years Neste has made remarkable
investments to increase its capacity in RP business. At the
same time the uncertainty in the global economic outlook
and geopolitical situation has created market volatility in
RP business. During the latest quarter in 2024 the
Company launched a comprehensive full potential analysis
to ensure level of performance and competitiveness in
different market conditions.
At each balance sheet date, the management has to
assess whether there are any indications that assets may
be impaired. If any such indications exists, the recoverable
amount of the asset is to be estimated. Goodwill is
subject to an annual impairment test.
The main assumptions used in the valuation of RP’s
property, plant and equipment and goodwill relate to the
estimated future operating cash flows and underlying
sales margins as well as the discount rates that are used
in calculating the present value.
The assumptions used in the valuation of the balances
in question require substantial management estimation,
and thus this is a key audit matter.
Our audit procedures regarding impairment testing
included, among others:
• Assessing the key assumptions used in the calculations,
such as profitability levels, discount rates used and long-
term growth rate.
• Assessing whether the methods and the key
assumptions used are appropriate and have been
consistently applied year-on-year.
• Involving KPMG valuation specialists when considering
the appropriateness of the assumptions used by
comparing to external market and industry information
and testing the technical accuracy of the calculations.
Regarding property, plant and equipment we have also
assessed the management process to evaluate the
appropriateness of the depreciation periods.
In addition, we have assessed the appropriateness of the
related disclosures in the Group’s financial statements.
We have not identified key audit matters relating to the parent company’s financial statements.
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• Conclude on the appropriateness of the Board of
Directors’ and the Managing Director’s use of the going
concern basis of accounting and based on the audit
evidence obtained, whether a material uncertainty exists
related to events or conditions that may cast significant
doubt on the parent company’s or the group’s ability
to continue as a going concern. If we conclude that
a material uncertainty exists, we are required to draw
attention in our auditor’s report to the related disclosures
in the financial statements or, if such disclosures are
inadequate, to modify our opinion. Our conclusions are
based on the audit evidence obtained up to the date of
our auditor’s report. However, future events or conditions
may cause the parent company or the group to cease to
continue as a going concern.
• Evaluate the overall presentation, structure and content
of the financial statements, including the disclosures, and
whether the financial statements represent the underlying
transactions and events so that the financial statements
give a true and fair view.
• Plan and perform the group audit to obtain sufficient
appropriate audit evidence regarding the financial
information of the entities or business units within the
group as a basis for forming an opinion on the group
financial statements. We are responsible for the direction,
supervision and review of the audit work performed for
purposes of the group audit. We remain solely responsible
for our audit opinion.
We communicate with those charged with governance regard-
ing, among other matters, the planned scope and timing of
the audit and significant audit findings, including any signifi-
cant deficiencies in internal control that we identify during our
audit.
We also provide those charged with governance with a
statement that we have complied with relevant ethical require-
ments regarding independence, and communicate with them
all relationships and other matters that may reasonably be
thought to bear on our independence, and where applicable,
related safeguards.
From the matters communicated with those charged with
governance, we determine those matters that were of most
significance in the audit of the financial statements of the
current period and are therefore the key audit matters. We
describe these matters in our auditor’s report unless law or
regulation precludes public disclosure about the matter or
when, in extremely rare circumstances, we determine that a
matter should not be communicated in our report because
the adverse consequences of doing so would reasonably
be expected to outweigh the public interest benefits of such
communication.
Other Reporting Requirements
Information on our audit engagement
We were first appointed as auditors by the Annual General
Meeting on March 30, 2021, and our appointment represents
a total period of uninterrupted engagement of 4 years.
Other Information
The Board of Directors and the Managing Director are respon-
sible for the other information. The other information com-
prises the report of the Board of Directors and the informa-
tion included in the Annual Report, but does not include the
financial statements or our auditor’s report thereon. We have
obtained the report of the Board of Directors prior to the date
of this auditor’s report, and the Annual Report is expected to
be made available to us after that date. Our opinion on the
financial statements does not cover the other information.
In connection with our audit of the financial statements, our
responsibility is to read the other information identified above
and, in doing so, consider whether the other information is
materially inconsistent with the financial statements or our
knowledge obtained in the audit, or otherwise appears to be
materially misstated. With respect to the report of the Board of
Directors, our responsibility also includes considering whether
the report of the Board of Directors has been prepared in
compliance with the applicable provisions, excluding the sus-
tainability report information on which there are provisions
in Chapter 7 of the Accounting Act and in the sustainability
reporting standards.
In our opinion, the information in the report of the Board
of Directors is consistent with the information in the financial
statements and the report of the Board of Directors has been
prepared in compliance with the applicable provisions. Our
opinion does not cover the sustainability report information on
which there are provisions in Chapter 7 of the Accounting Act
and in the sustainability reporting standards.
If, based on the work we have performed on the other infor-
mation that we obtained prior to the date of this auditor’s
report, we conclude that there is a material misstatement of
this other information, we are required to report that fact. We
have nothing to report in this regard.
Other Opinions Based on Statutory Law
Based on our audit, it is our responsibility to express an opin-
ion on the matters required by the Finnish Natural Gas Market
Act Chapter 13, Section 64.
The unbundled income statements, balance sheets and the
supplementary information of the natural gas business opera-
tions are prepared in accordance with the Finnish Natural Gas
Market Act and the rules and regulations issued thereunder.
Other Statements
We support that the financial statements and the consolidated
financial statements should be adopted. The proposal by the
Board of Directors regarding the use of the profit shown in
the balance sheet is in compliance with the Limited Liability
Companies Act. We support that the Members of the Board
of Directors and the Managing Director of the parent com-
pany should be discharged from liability for the financial period
audited by us.
Helsinki, 13 February 2025
KPMG OY AB
LEENAKAISA WINBERG
Authorised Public Accountant, KHT
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This document is an English translation of the Finnish Assurance Report on the Sustainability Statement. Only the Finnish version of the report is legally binding.
We have performed a limited assurance engagement on the
group sustainability statement of Neste Corporation (business
identity code 1852302-9) that is referred to in Chapter 7 of the
Accounting Act and that is included in the report of the Board
of Directors for the financial year 1.1.–31.12.2024.
Opinion
Based on the procedures we have performed and the evi-
dence we have obtained, nothing has come to our attention
that causes us to believe that the group sustainability state-
ment does not comply, in all material respects, with
1) the requirements laid down in Chapter 7 of the Account-
ing Act and the sustainability reporting standards (ESRS);
2) the requirements laid down in Article 8 of the Regulation
(EU) 2020/852 of the European Parliament and of the
Council on the establishment of a framework to facilitate
sustainable investment, and amending Regulation (EU)
2019/2088 (EU Taxonomy).
Point 1 above also contains the process in which Neste Cor-
poration has identified the information for reporting in accor-
dance with the sustainability reporting standards (double mate-
riality assessment) and the tagging of information as referred
to in Chapter 7, Section 22 of the Accounting Act.
Our opinion does not cover the tagging of the group sus-
tainability statement with digital XBRL sustainability tags in
accordance with Chapter 7, Section 22, Subsection 1(2), of
the Accounting Act, because sustainability reporting compa-
nies have not had the possibility to comply with that provi-
sion in the absence of the ESEF regulation or other European
Union legislation.
Basis for Opinion
We performed the assurance of the group sustainability state-
ment as a limited assurance engagement in compliance with
good assurance practice in Finland and with the International
Standard on Assurance Engagements (ISAE) 3000 (Revised)
Assurance Engagements Other than Audits or Reviews of His-
torical Financial Information.
Our responsibilities under this standard are further described
in the Responsibilities of the Authorized Group Sustainability
Auditor section of our report.
We believe that the evidence we have obtained is sufficient
and appropriate to provide a basis for our opinion.
Other Matter
We draw attention to the fact that the group sustainability
statement of Neste Corporation that is referred to in Chapter
7 of the Accounting Act has been prepared and assurance
has been provided for it for the first time for the financial year
1.1.–31.12.2024. Our opinion does not cover the compara-
tive information that has been presented in the group sustain-
ability statement. Our opinion is not modified in respect of this
matter.
Authorized group sustainability auditor’s
Independence and Quality Management
We are independent of the parent company and of the group
companies in accordance with the ethical requirements that
are applicable in Finland and are relevant to our engagement,
and we have fulfilled our other ethical responsibilities in accor-
dance with these requirements.
The authorized group sustainability auditor applies Interna-
tional Standard on Quality Management ISQM 1, which requires
the authorized sustainability audit firm to design, implement
and operate a system of quality management including poli-
cies or procedures regarding compliance with ethical require-
ments, professional standards and applicable legal and regu-
latory requirements.
Responsibilities of the Board of Directors
and the Managing Director
The Board of Directors and the Managing Director of Neste
Corporation are responsible for:
• the group sustainability statement and for its preparation and
presentation in accordance with the provisions of Chapter
7 of the Accounting Act, including the process that has
been defined in the sustainability reporting standards and
in which the information for reporting in accordance with
the sustainability reporting standards has been identified as
well as the tagging of information as referred to in Chapter
7, Section 22 of the Accounting Act and
• the compliance of the group sustainability statement with
the requirements laid down in Article 8 of the Regulation (EU)
2020/852 of the European Parliament and of the Council on
the establishment of a framework to facilitate sustainable
investment, and amending Regulation (EU) 2019/2088;
• such internal control as the Board of Directors and the
Managing Director determine is necessary to enable the
preparation of a group sustainability statement that is free
from material misstatement, whether due to fraud or error.
Assurance Report on the Sustainability Statement
To the Annual General Meeting of Neste Corporation
241
Annual review Governance Review by the Board of Directors Financial statements
Inherent Limitations in the Preparation of a
Sustainability Statement
Preparation of the sustainability statement requires Company
to make materiality assessment to identify relevant matters to
report. This includes significant management judgement and
choices. It is also characteristic to the sustainability reporting
that reporting of this kind of information includes estimates and
assumptions as well as measurement and estimation uncer-
tainty. Furthermore, when reporting forward looking informa-
tion company has to disclose assumptions related to potential
future events and describe Company´s possible future actions
in relation to these events. Actual outcome may differ as fore-
casted events do not always occur as expected.
Responsibilities of the Authorized Group
Sustainability Auditor
Our responsibility is to perform an assurance engagement to
obtain limited assurance about whether the group sustain-
ability statement is free from material misstatement, whether
due to fraud or error, and to issue a limited assurance report
that includes our opinion. Misstatements can arise from fraud
or error and are considered material if, individually or in the
aggregate, they could reasonably be expected to influence
the decisions of users taken on the basis of the group sustain-
ability statement.
Compliance with the International Standard on Assurance
Engagements (ISAE) 3000 (Revised) requires that we exercise
professional judgment and maintain professional skepticism
throughout the engagement. We also:
• Identify and assess the risks of material misstatement of the
group sustainability statement, whether due to fraud or error,
and obtain an understanding of internal control relevant to
the engagement in order to design assurance procedures
that are appropriate in the circumstances, but not for the
purpose of expressing an opinion on the effectiveness of
the parent company’s or the group’s internal control.
• Design and perform assurance procedures responsive
to those risks to obtain evidence that is sufficient and
appropriate to provide a basis for our opinion. The risk
of not detecting a material misstatement resulting from
fraud is higher than for one resulting from error, as fraud
may involve collusion, forgery, intentional omissions,
misrepresentations, or the override of internal control.
Description of the Procedures That Have
Been Performed
The procedures performed in a limited assurance engage-
ment vary in nature and timing from, and are less in extent
than for, a reasonable assurance engagement. The nature,
timing and extent of assurance procedures selected depend
on professional judgment, including the assessment of risks
of material misstatement, whether due to fraud or error. Con-
sequently, the level of assurance obtained in a limited assur-
ance engagement is substantially lower than the assurance
that would have been obtained had a reasonable assurance
engagement been performed.
Our procedures included for ex. the following:
• We interviewed persons responsible for the preparation
and gathering of the sustainability information.
• We familiarized with interviews to the key processes related
to collecting and consolidating the sustainability information.
• We got acquainted with the relevant guidances and policies
related to the sustainability information disclosed in the
sustainability statement.
• We acquainted ourselves to the background documentation
and other records prepared by the Company, as appropriate
and assessed how they support the information included in
the sustainability statement.
• We conducted site visits to the selected operational sites.
• In relation to the double materiality assessment process,
we interviewed persons responsible for the process
and familiarized ourselves with the process description
prepared of the double materiality assessment and other
documentation and background materials.
• In relation to the EU taxonomy information we interviewed
persons with key roles in reporting taxonomy information to
understand how taxonomy eligible and taxonomy aligned
activities have been identified, we obtained evidence
supporting the interviews and reconciled the reported EU
taxonomy information to supporting documents and to the
reporting systems, as applicable.
• We assessed the application of the ESRS sustainability
reporting standards reporting principles in the presentation
of the sustainability information.
Helsinki, 13 February 2025
KPMG OY AB
Authorized Sustainability Audit Firm
LEENAKAISA WINBERG
Authorized Sustainability Auditor, KRT
242
Annual review Governance Review by the Board of Directors Financial statements
Information
for investors
Information for investors 243
Key gures 2024 245
243
Annual review Governance Review by the Board of Directors Financial statements
Neste shares are listed on Nasdaq Helsinki under the trading code NESTE.
The company had 187,413 (148,094) shareholders at the end of 2024.
Information for investors
Annual General meeting
Neste Corporation’s Annual General Meeting will be
held on Tuesday 25 March 2025 at 10.30 a.m. EET in
the Conference Centre of Helsinki Expo and Conven-
tion Centre, at Rautatieläisenkatu 3, Helsinki. Registra-
tion and the distribution of voting papers will begin at
8.30 a.m. EET. Shareholders wishing to participate in
the Annual General Meeting should inform the company
by 4.00 p.m. EET on 17 March 2025 at the latest:
• Via Neste Corporation’s website www.neste.com,
by following the instructions detailed therein, or
• By phone, at +358 (0)20 770 6862 (Monday–Friday,
9.00 a.m. – 4.00 p.m. EET), or
• By letter, addressed to Neste Corporation, Annual
General Meeting, POB 95, FI-00095 NESTE.
Holders of proxies are requested to forward them when
stating their wish to participate, ensuring that they reach
the company by 4.00 p.m. EET on 17 March 2025 at the
latest.
The Board of Directors proposes to the AGM that a
dividend of EUR 0.20 per share be paid on the basis of
the approved balance sheet for 2024. The dividend will
be paid in one installment.
Interim reports in 2025
Neste Corporation will publish financial reports
in 2025 as follows:
• Interim Report January–March 2025:
29 April 2025
• Half Year Financial Report January–June 2025:
24 July 2025
• Interim Report January–September 2025:
29 October 2025
The Interim Reports are published in Finnish
and English and can be downloaded at
neste.com/investors.
Contact information
Investor Relations:
Anssi Tammilehto,
Senior Vice President, Strategy,
M&A and Investor Relations
Tel. +358 50 458 8436
anssi.tammilehto@neste.com
Debt Investor and
Banking Relations:
Katariina Perkkiö,
Vice President, Treasury & Risk
Management
+358 50 458 1492
katariina.perkkio@neste.com
Neste’s general e-mail
address for investors:
investors@neste.com
Dividend payment in 2025
13 March 2025
AGM record date.
27 March 2025
Record date of the dividend
payment.
3 April 2025
Dividend payment date.
244
Annual review Governance Review by the Board of Directors Financial statements
244
Total shareholder return, %
40
20
20222021 2023 2024
Shareholders’ total return, indexed
Neste Stoxx Nordic
Shareholder structure on 31 December 2024, %
Neste share’s trading volumes in 2024, %
Finnish State 44.2% (44.2%)
Non-Finnish shareholders 29.8% (36.8%)
Finnish institutions 14.8% (10.6%)
Households 11.2% (8.4%)
Nasdaq Helsinki 69.9% (65.8%)
CBOE Europe 25.8% (29.7%)
Turquoise 4.3% (4.1%)
BATS Europe 0.1% (0.3%)
200
100
50
150
250
0
2022 2023 202420212020
Neste’s share performance 2020–2024, EUR
70
30
50
10
60
20
40
0
2021 2022 2023 20242020
-20
-60
-40
-80
0
-25.4
1.1
-21.6
-58.6
60
Earnings per share and dividend
per share, EUR
20222021 2023 2024
2.31
1.54
0.82
2.46
3.04
1.52
1)
1.87
2.88
1.20
2.5
2.0
3.0
1.5
1.0
0.5
-0.5
0
Earnings per share
Comparable earnings per share
Dividend per share
2)
1)
2022: Ordinary dividend 1.02 + Extraordinary dividend 0.50
2)
2024: Board’s proposal to the AGM.
-0.12
0.17
0.20
245
Annual review Governance Review by the Board of Directors Financial statements
2024 2023 Change,%
Income statement
Revenue, MEUR
20,635 22,926 -10%
EBITDA, MEUR
1,005 2,548 -61%
Operating profit, MEUR
25 1,682 -99%
Profit before income taxes, MEUR
-113 1,596 -107%
Profit for the period, MEUR
-95 1,436 -107%
Comparable EBITDA, MEUR
1,252 3,458 -64%
Comparable net profit, MEUR
131 2,216 -94%
Profitability, %
Return on equity (ROE), %
-1.2 17.9 -107%
Comparable return on average capital employed after tax
(Comparable ROACE),%
2.5 23.9 -90%
Financing and financial position
Total equity, MEUR
7,417 8,463 -12%
Interest-bearing net debt, MEUR
4,192 2,488 68%
Leverage ratio, %
36.1 22.7 59%
Equity-to-assets ratio, %
47.7 53.1 -10%
Net Debt to EBITDA, %
4.2 1.0 320%
Net cash generated from operating activities, MEUR
1,183 2,279 -48%
Other indicators
Capital employed, MEUR
12,564 12,532 0%
Net working capital in days outstanding
39.4 41.0 -4%
Capital expenditure and investment in shares, MEUR
2,006 2,351 -15%
Research and development expenditure, MEUR
86 94 -9%
Average number of personnel
5,796 6,018 -4%
Total Recordable Injury Frequency per million hours worked (TRIF)
2.2 2.3 -4%
Process Safety Event Rate (PSER)
1.3 1.2 8%
Share-related indicators
Earnings per share (EPS), EUR -0.12 1.87 -106%
Comparable earnings per share, EUR 0.17 2.88 -94%
Equity per share, EUR 9.65 11.02 -12%
Cash flow per share, EUR 1.54 2.97 -48%
Dividend per share, EUR 0.20
1)
1.20 -83%
Dividend payout ratio, % -162.3
1)
64.3 -352%
Dividend yield, % 1.6
1)
3.7 -57%
Share price at the end of the period, EUR 12.13 32.21 -62%
Average share price, EUR 19.26 37.66 -49%
Lowest share price, EUR 10.98 28.55 -62%
Highest share price, EUR 33.60 48.50 -31%
Market capitalization at the end of the period, MEUR 9,331 24,776 -62%
1)
Board of Directors’ proposal to the Annual General Meeting.
2024 2023 Change,%
2024 2023 Change,%
GHG indicators
Reduced GHG emissions by Neste customers
with Neste’s products (compared to fossil fuel) in MtCO
2
e
1)
12.1 11.0 10%
Neste’s absolute GHG emissions in scope 1 and 2
(production) (tCO
2
e)
2)
2.7 2.8 -4%
Use phase emission intensity of sold fuel products (gCO
2
e/MJ)
3)
54 58 -7%
1)
Annual Greenhouse gas (GHG) emission reduction achieved over the lifecycle with Neste’s renewable products compared to fossil fuel.
The value is based on market regulations which provide the methodology and define the fossil diesel reference GHG emissions values.
2)
Market-based emissions for scope 2
3)
Use phase emission intensity is calculated by dividing the emissions from the use of fuel products sold by Neste (part of scope 3) with
the total amount of sold energy (gCO
2
e/MJ).
Key figures 2024
246
Annual review Governance Review by the Board of Directors Financial statements
We have performed a reasonable assurance engagement on
the financial statements 5493009GY1X8GQ66AM14-2024-
12-31-0-en.zip of Neste Corporation (Business ID 1852302-9)
that have been prepared in accordance with the Commission’s
regulatory technical standard for the financial year ended
31.12.2024.
Responsibilities of the Board of Directors
and the Managing Director
The Board of Directors and the Managing Director are respon-
sible for the preparation of the company’s report of the Board
of Directors and financial statements (the ESEF financial state-
ments) in such a way that they comply with the requirements of
the Commission’s regulatory technical standard. This respon-
sibility includes:
• preparing the ESEF financial statements in XHTML
format in accordance with Article 3 of the Commission’s
regulatory technical standard
• tagging the primary financial statements, notes and
company’s identification data in the consolidated financial
statements that are included in the ESEF financial
statements with iXBRL tags in accordance with Article 4 of
the Commission’s regulatory technical standard and
• ensuring the consistency between the ESEF financial
statements and the audited financial statements.
• The Board of Directors and the Managing Director are also
responsible for such internal control as they determine
is necessary to enable the preparation of ESEF financial
statements in accordance with the requirements of the
Commission’s regulatory technical standard.
Auditor’s independence and quality
management
We are independent of the company in accordance with the
ethical requirements that are applicable in Finland and are rel-
evant to the engagement we have performed, and we have
fulfilled our other ethical responsibilities in accordance with
these requirements.
The auditor applies International Standard on Quality Man-
agement (ISQM) 1, which requires the firm to design, imple-
ment and operate a system of quality management includ-
ing policies or procedures regarding compliance with ethical
requirements, professional standards and applicable legal and
regulatory requirements.
Auditor’s responsibilities
Our responsibility is to, in accordance with Chapter 7, Sec-
tion 8 of the Securities Markets Act, provide assurance on
the financial statements that have been prepared in accor-
dance with the Commission’s regulatory technical standard.
We express an opinion on whether the consolidated financial
statements that are included in the ESEF financial statements
have been tagged, in all material respects, in accordance with
the requirements of Article 4 of the Commission’s regulatory
technical standard.
Our responsibility is to indicate in our opinion to what extent
the assurance has been provided. We conducted a reason-
able assurance engagement in accordance with International
Standard on Assurance Engagements (ISAE) 3000.
The engagement includes procedures to obtain evidence
on:
• whether the primary financial statements in the
consolidated financial statements that are included in
the ESEF financial statements have been tagged, in all
material respects, with iXBRL tags in accordance with the
requirements of Article 4 of the Commission’s regulatory
technical standard and
• whether the notes and company’s identification data in
the consolidated financial statements that are included
in the ESEF financial statements have been tagged, in all
material respects, with iXBRL tags in accordance with the
requirements of Article 4 of the Commission’s regulatory
technical standard and
• whether there is consistency between the ESEF financial
statements and the audited financial statements.
The nature, timing and extent of the selected procedures
depend on the auditor’s judgment. This includes an assess-
ment of the risk of a material deviation due to fraud or error
from the requirements of the Commission’s regulatory techni-
cal standard.
We believe that the evidence we have obtained is sufficient
and appropriate to provide a basis for our opinion.
Opinion
Our opinion pursuant to Chapter 7, Section 8 of the Securi-
ties Markets Act is that the primary financial statements, notes
and company’s identification data in the consolidated financial
statements that are included in the ESEF financial statements
of Neste Corporation 5493009GY1X8GQ66AM14-2024-12-
31-0-en.zip for the financial year ended 31.12.2024 have been
tagged, in all material respects, in accordance with the require-
ments of the Commission’s regulatory technical standard.
Our opinion on the audit of the consolidated financial state-
ments of Neste Corporation for the financial year ended
31.12.2024 has been expressed in our auditor’s report dated
13.2.2025. With this report we do not express an opinion on
the audit of the consolidated financial statements nor express
another assurance conclusion.
Helsinki 27 February 2025
KPMG OY AB
Leenakaisa Winberg
Authorised Public Accountant, KHT
Independent auditor’s report on the ESEF financial statements of Neste Corporation
To the Annual General Meeting of Neste Corporation
