The oil and gas industry is undoubtedly one of the biggest contributors to global warming and climate change. Since 1900, the burning of fossil fuels has significantly increased. In recent decades, the emissions have increased by about 90%. Even emissions from fossil fuel combustion and industrial processes are contributing more than 78% to greenhouse gases.
The advent of technology has made all this possible. New methods to extract fuels and energy from different parts of the world have become possible. It is right to say that with technology we have caused a great deal of damage to the environment.
“The intelligent use of science and technology are the tools with which to achieve a new direction.” – says Jacque Fresco.
Our company spotlight for today is choosing the right direction for itself by using technology with positive intent.
Neste or as known internationally as Neste Corporation is one of the global leaders in sustainability. The oil refining company was founded in 1948 as the State petrol company of Finland. The company was started to serve the purpose of ensuring the availability of refined fuels in Finland. With their headquarters present in Espoo in Finland, the Finnish Government (Finnish national institutions) holds 35.91% shares as of 30th November 2021.
Hereon, Neste began growing its market value and carried on acquisitions of various firms. In Nov 1995, the company was listed on the Helsinki Stock Exchange. According to the official website, they have about 70 major and minor shareholders.
In 2005, it finally became the Nestle Oil Corporation.
The company that started as a local refinery finally went on to become a global leader in renewable diesel and sustainable aviation fuel refined from waste and residues, introducing renewable solutions also to the polymers and chemicals industries.
Neste manufactures its products in countries like Finland, the Netherlands and Singapore. The company is also a co-owner of a base oil plant in Bahrain.
Using technology to bring change:
The Engineering Solutions department at Neste is thoughtful about all the stakeholders that are affected by their projects. These include their employees, their customers and most importantly the environment. Their processes and technologies have a strong focus on the need to combat climate change and encourage a circular economy.
Products/services they offer:
Renewable road transport:
The company’s ‘MY Renewable Diesel™’ is produced from 100% renewable raw materials. It is also instrumental in up to 90% reduction of GHG emissions as compared to fossil fuels.
Aviation fuel gives out the highest direct carbon emissions. To achieve its emission reduction targets the Neste MY Sustainable Aviation Fuel™ is made from recycled oil. It reduces GHG emissions by up to 80% compared to fossil jet fuel. The product is already available for commercial use.
Renewable chemicals & recycled plastics:
Neste RE consists of 100% renewable and recycled material. These are climate-friendly polymers and chemicals. The Isoalkane oil offers a sustainable, safe and odourless alternative to traditional mineral oils.
The waste and residues increased to 92% of the renewable raw materials for the former half of 2021. By diversifying their portfolio of a wide variety of raw materials they aim to process 1 MT of plastic waste from 2030 onwards.
Neste’s sustainability commitments:
- Reducing our customers’ greenhouse gas emissions every year by at least 20 million tons CO2 equivalent by 2030.
- Reaching carbon neutral production by 2035.
- Reducing the use phase emission intensity of sold products by 50% by 2040 compared to 2020 levels.
- Aiming to make Porvoo the most sustainable refinery in Europe by 2030 and increasing the share of renewable and circular feedstock to over 10% of the refinery feed by 2030.
- Strengthening our end markets in renewable aviation and the polymers business.
- Supporting Sustainable Aviation Fuel (SAF) market growth with 1.5 million tons/a planned capacity already available by the end of 2023.
- Strengthening our position as a solution provider for chemical recycling.
- Expanding our unique global waste and residue feedstock platform.
- Outperforming our peers in value creation.
Their strategic themes include:
- Growing renewable and circular solutions.
- Getting ready for the future.
- Boost competitiveness and transformation.
The company is determined to work towards combatting climate change through both local and global efforts. In October 2021, we also set a concrete target for Scope 3 emissions. Our climate commitments are:
- reduce customers’ greenhouse gas (GHG) emissions with our renewable and circular solutions by at least 20 million tons of CO2 eq annually by 2030,
- reach carbon neutral production by 2035,
- and reduce the use phase emission intensity of sold products by 50% by 2040 compared to 2020 levels, and work with suppliers and partners to reduce emissions across the value chain (Scope 3).
The company has also taken various efforts to identify and help make the supply chain more sustainable.
Neste’s sustainability vision is an integral part of the company’s transformation. They shed focus on:
The company is committed to the transformation towards a carbon-neutral value chain and also has two existing & ambitious climate commitments.
So far the company has taken actions like combating deforestation in the supply chain and aiming for spearheaded transparency and positive impact towards biodiversity.
Their vision is to create a more equitable and inclusive value chain with a dignified workplace. Ethical treatment of workers is important.
Supply chain & raw materials:
A safe and healthy workplace, fair labor practices, a transparent supply chain and ethical sourcing of raw materials are crucial.
The Finnish firm went from third to fourth place in a year, but it is still on the Corporate Knights Global 100 Index for the 15th year in a row, which is far longer than any other global energy firm.
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