ESG Ratings and Initiatives
CDP is a global environmental disclosure system for investors, business, cities, states and regions. In 2020, Drax received a score of A- in the CDP Climate Change Programme and B in the CDP Forests Programme.
Drax is a constituent of the FTSE4Good Index Series. View certificate [PDF]
MSCI ESG Research provides MSCI ESG Ratings on global public and a few private companies. In 2020, Drax received a rating of AA (on a scale of AAA-CCC) in the MSCI ESG Ratings assessment.
Sustainalytics is a global provider of ESG and corporate governance ratings. Drax has a Sustainalytics ESG Risk Rating of 26.1 (on an open ended scale from 0-50+).
We have been a UN Global Compact (UNGC) participant since 2018, demonstrating our commitment to the universal principles on human rights, labour, environment and anti-corruption. The Drax Group Annual Report and Accounts 2020 forms our latest Communication on Progress.
*THE USE BY DRAX OFANY MSCI ESG RESEARCH LLC OR ITS AFFILIATES (“MSCI”) DATA, AND THE USE OF MSCI LOGOS, TRADEMARKS, SERVICE MARKS OR INDEX NAMES HEREIN, DO NOT CONSTITUTE A SPONSORSHIP, ENDORSEMENT, RECOMMENDATION, OR PROMOTION OF DRAX BY MSCI. MSCI SERVICES AND DATA ARE THE PROPERTY OF MSCI OR ITS INFORMATION PROVIDERS, AND ARE PROVIDED ‘AS-IS’ AND WITHOUT WARRANTY. MSCI NAMES AND LOGOS ARE TRADEMARKS OR SERVICE MARKS OF MSCI.
The Board has ultimate responsibility for the Group’s sustainability performance and receives quarterly environment, social and governance updates from the CEO. The Executive Committee, chaired by the CEO, oversees performance. The Group Director of Corporate Affairs leads Drax’s sustainability programme and is a member of the Executive Committee.
Drax is a participant of the United Nations Global Compact (UNGC) and sits on the UNGC UK Advisory Group.
In 2019, Drax established an Independent Advisory Board to provide advice on sustainable biomass and its role in Drax’s transition to net zero emissions. The Board provides feedback and makes recommendations on Drax’s sustainable biomass approach and performance.
We have identified non-financial priorities that are material to our business and important to our stakeholders. Our 2020 progress and performance are reported under each priority area as follows:
|Carbon Negative||Forest Positive||People Positive|
|• Carbon emissions|
• Environmental impact
|• Sourcing sustainable biomass|
• Catchment Area Analysis
• Healthy Forest Landscapes
• Independent Advisory Board
|• Positive social impact|
• Safety, health and wellbeing
• People, culture and values
• Ethics and integrity
Impact on the Sustainable Development Goals
The 17 United Nations’ Sustainable Development Goals (SDGs) are a blueprint to achieve a better and more sustainable future for everyone. We have identified six SDGs where we can have the greatest positive impact.
Affordable and Clean Energy
We contribute to the share of renewable energy in the global energy mix.
We contribute to SDG 13 to take action to combat climate change and its impacts across our business.
Life on Land
We promote the implementation of sustainable forest management in all working forests that we source from.
Industry, Innovation and Infrastructure
We contribute to investment in infrastructure and innovation in the energy sector, progressing the technological capabilities of our sector and contributing to research and development spending.
Sustainable Cities and Communities
We contribute to SDG 11 to make cities and human settlements inclusive, safe, resilient and sustainable.
Partnerships for the Goals
We proactively collaborate and engage with all stakeholders and seek partners to achieve our purpose of enabling a zero carbon, lower cost energy future. This directly enhances the global partnership for sustainable development to support the achievement of the Goals.
Engaging our Stakeholders
We recognise that we need to listen to, and work with, a diverse range of interested parties to achieve our purpose: to enable a zero carbon, lower cost energy future.
Drax has a wide range of stakeholders and takes care to ensure that the Group, and the Board, has an effective strategy to identify and engage with them. The Board receives regular reports on stakeholder engagement including from the Corporate Affairs and Investor Relations functions. This ensures that the Board takes into account the views of our stakeholders when making strategic decisions.
Drax’s Communications Strategy contains our stakeholder engagement plan. Presented to the Board at least annually, this sets out and provides oversight of how the Group intends to engage stakeholders.
Our Annual Report and Accounts 2020 sets out the broad stakeholder groups that we identified and engaged with during 2020. It also highlights their key concerns, why and how we engaged and how we responded.
We engaged Lloyds Register Quality Assurance Limited to provide limited assurance of select non-financial data points using the assurance standard ISAE 3000. A summary of the work performed is outlined in the full assurance statement.
We engaged Bureau Veritas Limited to provide limited assurance of our ‘average biomass supply chain greenhouse gas emissions’ data using the assurance standard ISAE 3000. A summary of the work performed is outlined in the full assurance statement.