Neste, the world’s leading producer of renewable diesel and sustainable aviation fuel (SAF), revises some of its climate targets due to the company’s current financial position and streamlined investment portfolio. Reaching the original climate targets by the previously communicated, very ambitious target years would have required significant investments that are currently not realistic. Neste continues to drive growth in renewable fuels, providing alternatives to fossil fuels to mitigate climate change.
Neste sets a carbon footprint target of reducing greenhouse gas emissions in its own operations (Scope 1 & 2) by 80% by 2040, replacing the target of reaching carbon-neutral production by 2035. The timeline for the related interim target of 50% emission reduction is extended from 2030 to 2035. With these changes, Neste focuses solely on absolute emission reductions in its own operations and removes the option of using emission compensation from its climate target setting. Two of Neste’s climate targets remain unchanged: the carbon footprint target to reduce the use-phase emission intensity of sold products by 50% by 2040, and the carbon handprint target to help customers reduce their greenhouse gas emissions by 20 Mt annually by 2030. The respective reference years 2019 and 2020 have not been changed.
“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 for further major capital expenditure beyond the ongoing 2.5 billion euros investment in the 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,” says Neste’s CEO Heikki Malinen.
In the short term, Neste’s climate footprint mitigation actions focus on energy efficiency and operational excellence measures, as well as evaluating alternatives to fossil hydrogen. Neste’s planning and development work to gradually convert the Porvoo refinery will continue, and the timeline for transitioning from crude oil to processing renewable and circular raw materials will be determined in line with the actual fuel market demand, legislation development and technological development. For the time being, fossil fuels are needed, among other things, to ensure the security of energy supply in Finland.
“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,” says Malinen.
Information on Neste’s climate targets is available on Neste’s website. Detailed information on e.g. related plans and progress will be provided in the company’s sustainability statement, which will be published on Neste’s website on 4 March 2026 at the latest.
