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Neste publishes 2018 palm oil and PFAD supply chain

Finland-headed oil refiner and renewable fuel producer Neste Oyj has published its palm oil and palm fatty acid distillate (PFAD) supply chain data for 2018 on its traceability dashboard. The dashboard supplements Neste’s sustainability reporting by providing detailed information about palm oil usage as well as its palm oil supply chain in 2018 including an interactive palm oil supply chain map with information about the supplying palm oil mills and estates, their locations and certifications.

Crude Palm Oil (CPO), Palm Fatty Acid Distillate (PFAD) and Palm Effluent Sludge (PES) are three
oil palm derived raw materials used by Neste for its renewable products.

According to a statement, all Neste-sourced renewable raw materials are traceable to the point of origin as the law requires of biofuels producers (e.g. EU RED in Europe). In 2017, Neste committed to mapping the company’s PFAD supply chain to oil palm plantations by 2020.

In collaboration with palm oil suppliers and sustainability specialists from the Consortium of Resource Experts (CORE), Neste has now mapped 99 percent of its PFAD supply chain to the palm oil mills supplying palm oil to refineries where PFAD is extracted as a processing residue from edible oil to meet the food industry’s quality standards.

Each mill’s environmental risks have been evaluated as part of our proactive approach to preventing deforestation, and PFAD-supplying palm oil refineries have been engaged to ensure that their operations and those of their supplying mills and plantations are in compliance with the company’s sustainability policies and principles.

Furthermore, 44 percent of Neste’s PFAD supply chain has been mapped all the way to oil palm plantations based on publicly available data (e.g. on RSPO, ISCC, ISPO certifications) and supplier reporting.

Neste says that it will continue work in this area in 2019 and will include collaboration with its suppliers to pilot innovative, scalable approaches to traceability.

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