Neste, the world’s leading producer of renewable diesel and sustainable aviation fuel (SAF), has revised several of its climate targets due to the company’s current financial position and streamlined investment portfolio. 

 

The company says meeting its original, highly ambitious targets would have required investments that are not currently feasible.

 

Neste will now aim to reduce greenhouse gas emissions in its own operations (Scope 1 & 2) by 80% by 2040, replacing the previous goal of achieving carbon-neutral production by 2035. The interim target of a 50% emissions reduction has been pushed back from 2030 to 2035. The company will focus exclusively on absolute emissions reductions in its operations, removing the option of using emission compensation to meet its goals.

 

Two of Neste’s climate targets remain unchanged: reducing the use-phase emission intensity of sold products by 50% by 2040, and helping customers cut their greenhouse gas emissions by 20 million tons annually by 2030.

 

“The company's original targets to reduce its carbon footprint were based on a plan to transform Neste’s Porvoo refinery into a renewable and circular solutions refining hub by 2035. Since we announced the delay of Porvoo refinery transformation earlier this year, we have conducted a careful assessment of our climate targets to ensure they are ambitious but realistic. 

 

"Neste’s current financial position does not allow further major capital expenditure beyond the ongoing 2.5 billion euros investment in expansion of our renewables refinery in Rotterdam. As investment projects in our industry take years to complete, the timelines of our climate targets have to be delayed under the current circumstances,” said Neste CEO Heikki Malinen.

 

In the short term, Neste will focus on energy efficiency, operational excellence, and evaluating alternatives to fossil hydrogen. Planning and development for converting the Porvoo refinery to process renewable and circular raw materials will continue, with timelines aligned to fuel market demand, legislative developments, and technology advances. Fossil fuels remain necessary, in part to ensure Finland’s energy security.

 

“Neste continues to provide its customers and consumers alternatives to fossil fuels, and our continuing investment in the world’s largest renewable fuels refinery in Rotterdam underlines our commitment to this. 

 

"We have also been able to reduce GHG emissions in our own operations by 24% since 2019, despite increasing our production of renewable fuels. We continue our efforts to contribute to mitigating climate change, while at the same time ensuring sustainable financial performance and long-term success,” Malinen added.