Green Finance Framework

Neste’s key strategic target is to become a global leader in renewable and circular solutions, which is why sustainability is incorporated in everything we do, not only in our operational activities but also in our financing. We launched our first Green Finance Framework in 2021. The proceeds from green finance have been allocated to the renewable and circular solution projects. With this updated version of the framework (February 2024), we deliver on our promise to update and amend our framework in line with recent developments within sustainable finance.

The structure of the Framework is developed in alignment with both the ICMA Green Bond Principles (GBP) 2021 (with June 2022 Appendix 1), as well as the AsiaPacific Loan Market Association (APLMA), Loan Market Association (LMA) and Loan Syndications and Trading Association (LSTA) Green Loan Principles (GLP) 2023. For added transparency and to raise awareness of Neste’s climate transition-related purposes and strategy, Neste is also guided by the recommendations outlined in the ICMA Climate Transition Finance Handbook (CTFH) 2023.

Neste will allocate the net proceeds of the Green Debt to finance/refinance Eligible Assets and Projects that have been evaluated and selected by the Green Finance Committee.

The Eligible Assets and Projects must fall within either of the ICMA green project categories outlined below:

• Eco-efficient and circular economy adapted products, production technologies and processes

• Renewable energy

Neste publishes a Green Finance Report annually that outlines the allocation and impact of Green Debt Instruments issued under the Green Finance Framework. Neste will strive to report on the actual environmental impact of the investments financed by the Green Debt Instruments.

S&P Global Ratings has shaded our Green Finance Framework Medium Green. S&P Global Ratings also mentioned in their second party opinion that Neste’s renewable products help the EU and its customers such as the aviation and polymers/chemicals industry to meet their GHG reduction targets. These products and technologies also help enable a circular economy, which is a dark green element.