Economic responsibility
By operating profitably and competitively, we make ourselves a profitable investment, a significant employer, a reliable partner and a good corporate citizen.
A financially solid company can address the needs of its stakeholders, take care of its social and environmental obligations, as well as sponsoring activities for the public good.
We are targeting EUR 350 million EBITDA run rate improvement by the end of 2026 from our performance improvement program, of which EUR 250 million from operational costs. We are committed to maintaining our leverage below 40%.
Value creation
We provide value for society by developing renewable, lower-emission solutions for transportation, aviation, marine and other industrial uses.
Our sustainability vision is a carbon-neutral and nature-positive value chain by 2040, which can be achieved in collaboration with our customers and partners.
Our value creation is based on high-quality products, a global business model for raw material sourcing and product sales, in-depth knowledge of regulations and global customer requirements for both fossil and renewable products, as well as continuous innovation and development of products and solutions. Non-financial assets, for example production, sales, and sourcing expertise are also an essential part of our value creation.
See our value creation map in our Annual Report 2024.
Clean revenue and investments
One way to view how we create value is the share of revenue from sustainable solutions; so called clean revenue.
Clean revenue means revenue from all goods and services which have a clear environmental and/or social benefits. Clean investments are investments in such benefits consisting of Clean cash-out investments, Clean R&D and Clean M&A investments. Clean Revenue and Clean Investments include for example revenue from, and investments in, clean transition as well as low-carbon and circular economy solutions.
CLEAN REVENUE IN 2024 | MEUR |
|---|---|
Renewable Products | 7,321 |
Oil Products | 57 |
Total | 7,378 |
CLEAN INVESTMENTS IN 2024 | MEUR |
|---|---|
Clean R&D | 75 |
Clean cash-out investments | 1,013 |
Clean cash-out M&A investments | 13 |
Total | 1,101 |
Economic value retained
DIRECT ECONOMIC VALUE GENERATED AND DISTRIBUTED IN 2024 | MEUR |
|---|---|
Revenue | 20,635 |
Other income | 54 |
Revenues from financial investments | 47 |
Direct economic value generated | 20,737 |
Operating costs | 19,094 |
Employee wages and benefits | 582 |
Payments to providers of capital | 301 |
Payments to government | 152 |
Charity work and sponsorship | 1 |
Direct economic value distributed | 20,130 |
Economic value retained | 607 |
Neste's tax footprint
We support the functioning of societies and their ability to provide public local services in all countries in which we operate by way of paying taxes and creating jobs. The taxes and tax-like fees paid and remitted by Neste were a significant source of income to public administrations also in 2024, when we supported the societies altogether with 3.4 billion euros.
In compliance with Neste’s Human Rights Principles, we encourage social progress and development that is in the public interest, including transparency, accountability and prohibition of tax abuse. We follow and communicate our tax principles stated below and act in accordance with Neste Code of Conduct.
We comply with the applicable local legislation in paying, collecting, remitting, and reporting on taxes and fees. We are committed to following the applicable sustainability frameworks and OECD Transfer Pricing Guidelines, and we pay and collect taxes in countries where our value-added activities are born as a result of our investments and personnel.
The data of our tax payments in 2024 has been compiled taking into account the points of view of materiality and business reasons.
Documents to download (PDF):
Green finance
Neste’s Green Finance Framework is focused on the development and investments in renewable and circular solutions with the purpose of reducing greenhouse gas emissions globally.
Annually, Neste publishes a Green Finance Report which covers the use of proceeds of green financing issued under the Green Finance Framework. The company will allocate the net proceeds of the Green Debt to finance Eligible Assets and Projects that have been evaluated and selected by the Green Finance Committee. The Eligible Assets and Projects must fall within the eco-efficient and circular economy adapted products, production technologies and processes category. Read more about Neste's approach to green finance here.
The Green Finance Report, which covers green financing activities in 2022, demonstrates our commitment to combating climate change and accelerating a shift towards a circular economy.
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