Neste Oil claims that it uses sustainably produced palm oil. However, Neste Oil refuses to tell where the palm oil comes from and who the palm oil suppliers are, with one exception. Malaysian IOI Group has been identified as one of the main suppliers for Neste Oil.
Most of the palm oil for Neste Oil has been bought from IOI Group, a Malaysian corporation responsible for the ongoing destruction of rainforests, peatlands and habitats of orangutan, for illegal plantings, land-grabbing and land conflicts.
Neste Oil started buying palm oil from IOI in 2007. To fill the new massive palm oil demand of Neste Oil and to continue feeding it´s old customers, IOI doubled its land bank in the same year by expanding in Indonesia. In its consessions in Indonesia, IOI has carried out illegal land clearance, destroyed habitats of orangutan and destroyed peatlands.
In the Malaysian state of Sarawak, a court ruled in 2010 that IOI had illegally bulldozed rainforest, paddy fields and people's fruit trees to plant oil palms. IOI Group was ordered to compensate the damages caused by the destruction of land belonging to Long Teran Kanan, a Kayan native community.
The state government of Sarawak has announced plans for another one million hectares of tropical forests to be cut down for oil palms. IOI is one of the main investors in this expansion.