Value chain sustainability

We recognise the critical role our suppliers and business partners play in our value chain and emphasise the need for stringent due diligence to address sustainability risks, particularly in bio and fossil fuel supply chains.

Our due diligence process is pivotal to managing sustainability risks associated with feedstock sourcing, production, and transportation. The highest risks are present in our upstream bio- and fossil fuel supply chains, which include points of origin for feedstocks, and their production and transportation. In addition, large-scale temporary projects in our home markets that include construction and maintenance are identified as high-risk.

To manage this work, the third-party due diligence process has been further defined through the operating model project work in 2024. Through the third-party due diligence process, the sustainability requirements should be considered when negotiating new contracts or updating existing ones. Partner sustainability due diligence is part of the wider third-party due diligence process, which includes legal review, cyber security review, and a solvency check, in addition to the sustainability assessment.

In 2024, we advanced our supplier due diligence process and practices by continuing the development and partial implementation of a new third-party due diligence system, focusing on the HVO value chain. This system includes supplier onboarding processes, sustainability risk management, audit documentation, and, in the future, the management of related corrective action plans. It will also support the application of St1’s new Sustainability Partner Due Diligence rule, which was developed in 2024 and will be finalised in 2025.

In 2025, St1 will redesign the processes and workflows to enable enhanced automation, particularly for low-risk partners. The system will be expanded to cover various streams, including bio-based products, fossil products, strategic partners, and indirect sourcing partners. As part of this implementation, training will be provided, specifically for employees with purchasing responsibilities. Additionally, we will expand the system through collaborations with value chain partners, including joint ventures.