Neste Oyj – Missing the forest and the trees: What is driving negative momentum for this ESG outperformer?May 15, 2019
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This brief explores the factors driving recent ESG performance for Neste, a Finland-based producer that has ambitions to become the authority in biofuel production, alongside its traditional businesses selling petroleum products such as diesel fuel, aviation and bunker fuel.
- In 2018 NGOs drew attention to the company’s potential link to ongoing deforestations
- Neste has scaled renewable production such that the segment operates at roughly double the operating margin of the rest of its business through a 5-year cycle
- Neste is well-positioned to capture future growth and profits riding this sustainability tailwind—to the extent that its biofuel products provide a solution to the underlying problem of reducing carbon emissions
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