Neste has revised several of its climate targets, citing its current financial position and a more focused investment portfolio, while retaining key longer-term goals linked to its products and customers.
The Finnish fuel producer said achieving its previously announced climate targets within the original timelines would have required investment levels that are not currently feasible. As a result, the company has adjusted its targets for emissions reductions in its own operations, while maintaining its broader objectives related to renewable fuels.
Under the updated framework, Neste now aims to cut greenhouse gas emissions from its own operations (Scope 1 and 2) by 80% by 2040. This replaces its earlier goal of reaching carbon neutral production by 2035. The timeline for an interim target to halve operational emissions has also been extended from 2030 to 2035. The revised targets focus solely on absolute emissions reductions and remove the use of emissions compensation as a compliance option.
Two of Neste’s existing climate targets remain unchanged. These include a commitment to reduce the use-phase emissions intensity of sold products by 50% by 2040, and a target to help customers reduce their greenhouse gas emissions by 20 million tonnes annually by 2030. The reference years for these targets, 2019 and 2020 respectively, remain unchanged.
Explaining the revisions, chief executive Heikki Malinen said the original targets were based on plans to transform the Porvoo refinery into a renewable and circular solutions hub by 2035. Following the earlier announcement that this transformation would be delayed, the company reassessed its climate targets to align them with current financial constraints.
Malinen said Neste’s financial position does not allow for additional major capital expenditure beyond the ongoing €2.5 billion investment to expand its renewables refinery in Rotterdam, adding that the long lead times for large-scale industrial projects necessitated a shift in target timelines.
In the near term, Neste said it will focus on measures such as improving energy efficiency, strengthening operational performance and assessing alternatives to fossil hydrogen. Planning work to gradually convert the Porvoo refinery will continue, with the pace of transition from crude oil to renewable and circular feedstocks to be determined by fuel market demand, regulatory developments and technological progress. The company added that fossil fuels remain necessary in the short term to support Finland’s energy security.
Malinen said Neste has reduced greenhouse gas emissions from its own operations by 24% since 2019, despite increased renewable fuel production, and will continue to balance climate action with financial performance and long-term viability.
Further details on the company’s climate targets and progress will be published in its sustainability statement, due by 4 March 2026.
