Neste’s sustainable plastics solutions

MERCEDES ALONSOExecutive Vice PresidentRenewable Polymers and ChemicalsNeste Corporation

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International Forum on Industrial Biotechnology & Bioeconomy

Rome, 2 October 2020

25%of employees

working on R&D, engineering and

innovation

3rd most sustainable company in the

world (2020 Global 100)

In 2019, Neste's revenue

stood at EUR

15.8

billion

Founded in

1948 to secure oil supply

for the state of Finland

Renewable products production

capacity

3.2 → 4.5 Mt/ain 2023

World’s

#1 producer of renewable diesel and sustainable

aviation fuel (SAF)

Circularity

Chemically recycling waste plastic to new

high-quality plastics and chemicals.

Neste has developed more sustainable solutions for the polymers and chemicals industry,

with a focus on two areas:

Renewable

Renewable feedstock to replace fossil feedstock in the production of a variety of plastics and

chemicals

Waste and residues account

for 80% of Neste’s renewable raw material use

annually

All renewable raw materials Neste

uses are sustainably

produced* and traceable to the place of origin

Neste’s renewable raw

material portfolio consists of waste and residue oils and fats as well as vegetable oils

Independent of raw materials

used, our renewable

feedstock for polymers and

chemicals have consistent high

quality

Renewable raw material mix

*Meeting or exceeding e.g. EU RED requirements

CONTINUOUS PORTFOLIO EXPANSION

WHILE MEETING SUSTAINABILITY

CRITERIA

We can support brand owners to fulfill their sustainability commitments

Cracker

NXB

TL

REN

EWA

BLE

H

YDR

OC

AR

BO

NS

Construction

C2

C3

C5-9

C10+C2

C4

C1

PolymersComposites

IngredientsSurfactants Emollients

Adhesives Coatings Sealants

NES

TE

HYD

ROCA

RBO

NS

Toys

Packaging

FurniturePersonal

care

Fashion

RENEWABLEWaste and

residue oils as well as

vegetable oils

RECYCLEDLiquefied and

purified waste plastics

Automotive

Electronics

Circular plastics value

chain

Building relationships beyond business

Leading the way towards a sustainable future together

Examples of our partnerships

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Neste and LyondellBasell successfully produced several thousand tons of bio-based plastics from Neste’s renewable hydrocarbons.

Collaboration marks the

world’s first parallel production of bio-based

polypropylene and bio-based polyethylene at a

commercial scale.

“Through the use of renewable resources, we are contributing to the fight against

climate change and helping our customers achieve their environmental targets.”

Richard Roudeix, LyondellBasell Senior Vice President of Olefins and Polyolefins

for Europe, Asia and International

Reducing dependence on fossil resources:

CASE

Renewable plastics production at a commercial scale

Borealis and Neste in a strategic co-operation to accelerate circularity and bioeconomy in plastics

CASE

Borealis has been producing mass balance

certified renewable polypropylene at its own facilities in Belgium from

Neste’s renewable propane since the end of

2019. For example, Henkel will use this

renewable polypropylene.

”Through co-operation with Neste we can offer our

customers and partners a new portfolio of renewable PP solutions, helping them to make their offering more

climate friendly.”

LUCRÈCE FOUFOPOULOS, EXECUTIVE VICE PRESIDENT POLYOLEFINS, INNOVATION & TECHNOLOGY

AND CIRCULAR ECONOMY SOLUTIONS, BOREALIS

Replacing fossil raw materials with a renewable alternative in the manufacture of high-performance polycarbonates

CASE

Neste and Covestro started cooperation in Europe to

enable Covestro to replace a significant portion of the fossil

raw materials with material from renewable sources in the

manufacture of polycarbonates. Such

high-performance plastic is used e.g. in car headlamps,

LED lights, electronic and medical devices and automotive glazing.

”By transforming our production, we are helping

important industrial sectors such as the automotive and

electronics industries achieve greater sustainability

and reduce the dependence on crude oil.”

MARKUS STEILEMANN, CEO, COVESTRO

Responsible choices at home:

Redefining the future of plasticsIKEA and Neste are partnering to produce renewable polymers from Neste’s renewable hydrocarbons derived from waste and residue raw materials as well as sustainably-produced vegetable oils.

CASE

IKEA aims to switch all of the plastic used in

IKEA products to plastic based on recycled and/or renewable

materials

by 2030

”IKEA wants to contribute to a transformational change in the industry

and to the development of plastics made from recycled or renewable sources. We are moving away from virgin fossil-based

plastic materials in favor of plastic produced from more sustainable recycled

or renewable sources.”

LENA PRIPP-KOVAC, SUSTAINABILITY MANAGER, IKEA OF SWEDEN

The European Green Deal

Increasing the EU’s climate

ambition for 2030 and 2050

Full mobilisation of industry to

achieve a climate neutral and

circular economy

New circular economy action plan focusing on waste reduction and sustainable product policy

Boost the market of secondary raw materials with

mandatory recycled

content

Design 100%recyclable

and reusableproducts where

possible

Use 20% lessvirgin plastics with

10% absolutereduction

Increase recycling rate

by 25%

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The European Plastics Pact

Bringing together frontrunner companies and governments to accelerate the transition towards a European circular plastics economy.

Use at least30% of

recycledplastics in

new plastics

We want to create a healthier planet for our children (by creating responsible choices every day.)