Analysis

After reviewing Neste’s website and press releases, the sustainability strategy the company uses is Eco-branding. The homepage of the company is a slideshow of pictures that display the earth and smiling people. Directly underneath the pictures is a link to a video entitled, “Neste 2018: Towards a Healthier Planet,” with a caption, “This is the only planet we have, and we are all responsible for keeping it in shape.” Neste takes concrete action by creating responsible choices…” It is evident that the company's objective is to use their sustainability efforts as a catalyst of competitiveness, and a generator of public support, customer loyalty, and many other fundamental advancements non-related to a healthier environment.  

            Consequent of Neste’s efforts thus far they are likely in the fourth stage of sustainability. Stage four is Developing New Business Models and one way to do so is through partnerships. Neste has partnered with Stuttgart Airport of Germany. The airport began using Neste’s MY Renewable Diesel in 2017. The diesel fuel is a high performing, low carbon biofuel. This fuel is beneficial to the German airport in terms of engine performance and environmental impact. By switching to the premium fuel, it has helped to reduce the airports CO2 emissions and carbon footprint.

In regard to Environmental, Social, and Governance (ESG); Neste has made notable strides. As mentioned previously they created a renewable diesel fuel. Neste MY Renewable Diesel is made entirely from residue and waste. This product is a bit more expensive but is a completely renewable fuel which is a significant accomplishment within the industry overall. As a result, the sale of this fuel began exclusively at service stations in Finland. It is also compatible with existing diesel fuel engines and is considered to be among the world’s best fossil diesel fuels. As the company continues to expand its market and conduct R&D, it seeks to further expand its raw material base. This is one of the most practical approaches to addressing ESG issues and concerns.

Neste maintains a holistic perspective that not only incorporates the effects on the environment, but also economic and social issues. This approach is classified as a fully integrated commitment to systems thinking and sustainability. Neste has applied this approach by how they have decided to produce all their renewable energy products. Neste considered a large and long term scope when they determined their supply chain and business practices.

Neste currently produces a diesel fuel made entirely from renewable products and sustainable raw materials. Moreover, the company also ensures that their products are produced sustainably by confirming they do not cause deforestation or jeopardize biodiversity. Within the United States, every company in Neste's supply-chain undergoes strict sustainability assessments. This ensures that each partner Neste conducts business with is also operating at a high level of sustainability thus assisting in creating innovation for a brighter tomorrow. By their consistent practices they have reinforced positive feedback loops as they have reduced greenhouse gas emissions by up 80% compared to petroleum diesel

GRI GUIDELINES	Neste Oyj Evaluation	Description
Stakeholders Inclusiveness	MET	In its annual sustainability report, Neste oyj highlights several areas where stakeholders benefit from its sustainability strategy.
Accuracy	MET	According to shadow reports, Neste’s sustainability report is accurate.
Materiality	MET	Neste oyj publishes an extensive materiality assessment report every year.