Neste Adjusts Climate Targets
- Neste sets a new target to reduce Scope 1 & 2 emissions by 80% by 2040.
- The interim target for a 50% emission reduction is extended to 2035.
- Neste's 2.5 billion euro investment focuses on expanding the Rotterdam refinery.
- The Porvoo refinery transformation is delayed, pending market and legislative developments.
Revised Climate Targets
Neste has revised its climate targets due to financial constraints and a streamlined investment portfolio. The company now aims to reduce greenhouse gas emissions in its own operations (Scope 1 & 2) by 80% by 2040, instead of achieving carbon-neutral production by 2035. The interim target for a 50% emission reduction has been extended from 2030 to 2035.
Investment and Financial Position
Neste's current financial position does not support further major capital expenditures beyond the ongoing 2.5 billion euro investment in expanding its renewables refinery in Rotterdam. This financial reality has necessitated the adjustment of climate targets and timelines.
Porvoo Refinery Transformation
The transformation of Neste’s Porvoo refinery into a renewable and circular solutions hub has been delayed. The timeline for transitioning from crude oil to processing renewable and circular raw materials will depend on market demand, legislative developments, and technological advancements.
Focus on Emission Reductions
Neste is focusing on absolute emission reductions in its operations and has removed the option of using emission compensation from its climate target setting. The company continues to work on energy efficiency and operational excellence measures, as well as exploring alternatives to fossil hydrogen.
Source: Neste