Assurance statement - Drax

Independent limited assurance statement

To:  The Stakeholders of Drax Group Plc

Introduction and objectives of work

Bureau Veritas UK Limited (hereafter “Bureau Veritas” or “BV”) has been engaged by Drax Group Plc (hereafter “Drax”) to provide limited assurance over sustainability activities reported in its Annual report and accounts 2018 (hereafter ‘the Report’) and website (https://www.drax.com/sustainability). This Assurance Statement applies to the related information included within the scope of work described below. The aim of this process is to provide assurance to Drax’s stakeholders over the accuracy, reliability and objectivity of the reported information and that it covers the issues material to the business and its stakeholders.


Scope of work

The scope of our work was limited to assurance over performance data and information included within the Report and website for the period 1st of January to the 31st of December 2018 (the ‘Selected Information’), as listed below:

  • GHG emissions (scope 1, 2);
  • Health and safety performance (Total Recordable Injury Rate);
  • Employee headcount (gender, country, business unit);
  • Water data; and
  • Biomass supply chain emissions.

Limitations and Exclusions

Our assurance process was subject to the following limitations as we have not been engaged to:

  • Activities outside the defined verification period;
  • Positional statements (expressions of opinion, belief, aim or future intention by Drax) and statements of future commitment;
  • Determine which, if any, recommendations should be implemented;
  • Appropriateness of the reporting criteria;
  • Financial data taken from the Report which are audited by an external financial auditor, including but not limited to any statements relating to production, tax, sales, and financial investments; and
  • Other information included in the Report other than the scope defined above.

The verified 2018 EU Emissions Trading Scheme reported data were relied on as part of this GHG emissions assurance process, and the verification effort was not repeated.

This limited assurance engagement relies on a risk based selected sample of sustainability data and the associated limitations that this entails. This independent statement should not be relied upon to detect all errors, omissions or misstatements that may exist.


Responsibilities

The preparation and presentation of the Selected Information in the Report is the sole responsibility of the management of Drax.

Bureau Veritas was not involved in the drafting of the Report. Our responsibilities were to:

  • Obtain limited assurance about whether the Selected Information has been appropriately and accurately prepared;
  • Form an independent conclusion based on the assurance procedures performed and evidence obtained; and
  • Report our conclusions to the Directors of Drax.

Assessment Standard

We performed our work in accordance with International Standard on Assurance Engagements (ISAE) 3000 Revised, Assurance Engagements Other than Audits or Reviews of Historical Financial Information (effective for assurance reports dated on or after December 15, 2015), issued by the International Auditing and Assurance Standards Board.


Summary of work performed

As part of its independent verification, Bureau Veritas undertook the following activities:

  1. Assessed the appropriateness and accuracy of the Selected Information;
  2. Conducted interviews with relevant personnel of Drax;
  3. Reviewed the data collection and consolidation processes used to compile the Selected Information, including assessing assumptions made, the data scope and reporting boundaries;
  4. Reviewed documentary evidence provided by Drax;
  5. Performed a selection of aggregation calculations of the Selected Information;
  6. Agreed a selection of the Selected Information to the corresponding source documentation; and
  7. Reviewed the current sustainability issues that could affect Drax and are of interest to stakeholders.

Conclusion

On the basis of our methodology and the activities described above nothing has come to our attention to indicate that the Selected Indicators are not fairly stated in the Report in all material respects.

Further detailed recommendations are provided on the “Additional commentary” section and in the form of an internal management report to be issued to Drax.


Statement of Independence, Integrity and Competence

Bureau Veritas is an independent professional services company that specialises in quality, environmental, health, safety and social accountability with over 185 years’ history. Its assurance team has extensive experience in conducting verification over environmental, social, ethical and health and safety information, systems and processes.

Bureau Veritas operates a certified [1] Quality Management System which complies with the requirements of ISO 9001:2008, and accordingly maintains a comprehensive system of quality control including documented policies and procedures regarding compliance with ethical requirements, professional standards and applicable legal and regulatory requirements.

Bureau Veritas has implemented and applies a Code of Ethics, which meets the requirements of the International Federation of Inspections Agencies (IFIA) [2] across the business to ensure that its employees maintain integrity, objectivity, professional competence and due care, confidentiality, professional behaviour and high ethical standards in their day-to-day business activities. The assurance team for this work does not have any involvement in any other Bureau Veritas projects with Drax.


Additional commentary

Based on the work conducted, we identified the following areas of progress and good practice:

  • Drax keeps track of the workers’ incidents and produces monthly Health & Safety executive reports containing incident details, hours worked and injury frequency rates.

Based on the work conducted we recommend Drax to consider the following:

  • Reduce the materiality threshold for GHG emissions reporting. For the Report, Drax has adopted a materiality threshold of 100,000 tonnes of CO2; and
  • Be consistent on the inclusion of Drax businesses in the reported sustainability key performance indicators. For parameters, such as water, Drax does not include data from all businesses.

Bureau Veritas UK Limited

London

20 February 2019

 

  • [1] Certificate of Registration FS 34143 issued by BSI Assurance UK Limited
  • [2] International Federation of Inspection Agencies – Compliance Code – Third Edition