Neste and Sourcing Waste and Residue Materials

ISCC Shanghai Conference 13th November 2017

Adrian Suharto and Edouard Nau Neste Singapore Content

1. Introduction 2. Our Raw Materials 3. Our Sustainability Commitment 4. Neste Due Diligence Process 5. Challenges of Sourcing in China Introduction OUR VISION

Creating responsible choices every day Biofuels are part of the solution

Combat climate change and reduce Reduce Improve and carbon emissions from dependency on safeguard traffic and fossil oil and security of transportation imported energy energy supply (fulfilling bio mandates) Neste globally

Production: Headquarters: Espoo, Finland Porvoo Naantali Rotterdam Singapore Bahrain (joint venture, Neste's share 45%)

Sales and marketing: Espoo Stockholm Tallinn Riga Vilnius St. Petersburg Geneva Beringen Houston Toronto Singapore Our renewable products

Neste Renewable Fuels Neste Renewable Chemicals

Neste Neste Neste Neste Neste Neste Neste Renewable Renewable Renewable Renewable Jet Renewable Renewable Renewable Diesel Gasoline Propane Fuel Isoalkane Naphta Propane Our Raw Materials Broad range of renewable raw materials

Animal fat from Fish fat from fish Vegetable oil processing Used Technical food industry waste processing waste waste and residues cooking oil corn oil (e.g. PFAD, PES, SBEO)

Crude palm oil Rapeseed oil Soybean oil Camelina oil Jatropha oil

Neste uses bio-based ethanol from the global market as a bio-component in 95 E10 and 98 E5 gasolines. The company also uses tall oil pitch at its refinery in Naantali, Finland. Waste and residues form nearly 80% of our renewable raw material inputs

RENEWABLE RAW MATERIAL MIX

22% Waste and residues (e.g. waste and residue fats from In 2015, we achieved food processing, technical corn oil) capability to use solely Vegetable Oils (100% Certified waste and residues as CPO, Rapeseed Oils) raw materials in our processing. 78% Huge increase in waste and residue usage

Tons

2,400,000 2,200,000 2,000,000 1,800,000 1,600,000 1,400,000 1,200,000 1,000,000 800,000 600,000 400,000 200,000 0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Our Sustainability Commitment All renewable raw materials sustainably produced

Our Raw Materials All of the renewable Renewable raw comply with Neste raw materials used materials are sustainably Code of Conduct, produced and that production by Neste are traced Sustainability has not infringed back to the Policies and human rights or endangered plantations or rainforests or Principles, and production plants carbon-rich areas Market requirements

TRACEABLE SUSTAINABLE COMPLIANCE Neste Sustainability Compliance

Market (mandate) Sustainability National and Based Policy Multi- International Requirement stakeholder Regulations Code of Conduct initiatives

No-Deforestation eg: RFS US EPA, Guideline eg: ILO ISCC

ILO = International Labour Organization RFS US EPA = Renewable Fuel Standard as issued by United States Environmental Protection Agency ISCC = International Sustainability and Carbon Certification System (Germany) Due Diligence System The journey towards digitalization

Launch of global Demo version Supplier the open sustainability of the system Sustainability supply chain hackathon in and Portal in use digitalization Helsinki and stakeholder challenge Singapore engagement

Slush 2016 May 2017 Late 2017 By end of 2018 Challenge of W&R Sourcing in China Supply chain Commitment from compliance with stakeholders on Beyond latest maintaining high certification certification standards requirements Neste sustainability ISCC Actual GHG Data & Traceability expectation

Sustainability Market Environment

Enhancement & harmonization of Visibility on internal policies across energy policies and provinces supporting Market other demand for energy use, collection transparency W&R feedstock and traceability

Beyond UCO, Increase maturity of availability and Waste & residues collection of other collector to access waste & residues international market feedstock Thank you