SAF Producer Neste Walks Back Some Climate Goals

Sustainable aviation fuel producer Neste has retrenched some of its stated climate commitments from five years ago when it joined as a signatory to the Climate Pledge. In 2020, the company, one of the world’s largest renewable fuels refiners, pledged to halve its operational carbon emissions by 50% by 2030 and reach carbon-neutral production by 2035.

Citing its current financial position and streamlined investment portfolio as factors, the Finland-based company noted that reaching those goals would entail significant investments “that are not currently realistic.”

“The company's original targets to reduce its carbon footprint were based on a plan to transform Neste’s Porvoo [Finland] refinery into a renewable and circular solutions refining hub by 2035,” explained CEO Heikki Malinen. “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.”

Instead, Neste set new targets of reducing greenhouse gas emissions in its own operations by 80% by 2040. The timeline for the related interim target of 50% emission reduction was extended from 2030 to 2035.

Malinen noted that Neste’s current financial position does not allow for further major capital expenditure beyond the ongoing €2.5 billion investment in the expansion of its 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.”

Unchanged are the company’s goals to help reduce its customers' greenhouse gas emissions by 20 tonnes a year by 2030 and to reduce the use-phase emission intensity of its products by 50% by 2040.

“We continue our efforts to contribute to mitigating climate change, while at the same time ensuring sustainable financial performance and long-term success,” concluded Malinen.