Our Approach

Reaching net zero by the end of 2040 across our value chain.

Over the next decade, global demand for electricity will rise, fast. Rapid developments in AI, data centres, electric vehicles, heat pumps and air conditioning are predicted to drive unprecedented demand for power. At the same time, carbon emissions need to halve. How do we keep the lights on, while powering progress and taking care of our planet?

At Drax, we’ve already taken one big step towards solving this challenge. Having converted our power station from coal to biomass, it’s now a critical source of renewable power to the UK grid. But we’re nowhere near done.

Climate Positive in action

Our objective isn’t just to reduce emissions, but to have a net positive impact on the climate. We’ll aim to do this through three major areas of action.

Reducing emissions to net zero 

First, we’ll aim to minimise emissions across our value chain, reaching net zero in scopes 1, 2 and 3 by the end of 2040. Getting there requires more than just converting to biomass — we also need to keep making our operations as clean¹ as possible. We’ve already made significant progress here, cutting our total group supply chain emissions by 27% since 2020. Eliminating the remainder will be hard. The biggest challenges are shipping and pelleting, and we’re making progress on both, including investing in a wind-assisted shipping trial and testing renewable power sources for our pellet plants.

Sourcing biomass only from well-managed forests², or other responsible sources 

We are committed to sourcing biomass that delivers climate, nature and people positive outcomes, adhering to strict compliance, traceability, and third-party certification standards.

Removing carbon for good 

Third, we’ll continue to develop and evaluate options to permanently remove carbon from the atmosphere via our carbon removals projects. To accelerate this, we launched a new business unit, Elimini, with a focused goal of scaling carbon removals.

Our commitments

We will reach net zero by the end of 2040 across our value chain.

C1	We will achieve all our near-term 2030 SBTi targets covering scopes 1, 2 and 3. We will aim to further achieve our 2040 net zero target, which is in active review with SBTi at present.
C2	We will explore the efficient recovery and integration of the heat of our Bioenergy with Carbon Capture and Storage (BECCS) facilities and pellet plants, to create and use the heat as a product where local demand exists.
C3	We will perform comprehensive cradle to grave carbon life cycle analysis (LCA) to establish carbon footprint baselines and to identify potential improvements of our facilities.

We will deliver evidence on forest carbon stocks in all principal biomass feedstock sourcing areas by the end of 2026, using rigorous science-based approaches

C4	By the end of 2026, we will have evaluated forest carbon stocks in all principal sourcing areas and will monitor trends using a pioneering science-based approach.
C5	We will develop and pilot a robust, peer reviewed forest carbon appraisal methodology for evaluating the impact of biomass demand on carbon stocks in sourcing regions by the end of 2025, and we’ll champion this among our peers.
C6	We will continue to conduct comprehensive forest carbon risk and resilience assessments in all sourcing regions that supply our pellet mills and future BECCS facilities.

We will further address the global climate crisis with positive contributions to climate change mitigation and adaptation by the end of 2030.

C7	We will continue to develop and evaluate options to permanently remove carbon from the atmosphere via our carbon removals projects.
C8	We will publish and implement a climate adaptation plan by the end of 2027.

Supporting biodiversity across our sites and in our value chain by the end of 2030.

The areas we operate in are home to rich and unique biodiversity. The land around our sites is home to hundreds of species, and the forests we source biomass from are similarly full of life.

Nature Positive in action

Avoiding and preventing negative impact to nature is critically important and remains a key area of focus for us. But we know we’re still at the beginning of the journey. We’re committed to taking action that not only aims to protect nature across all our sites, but actively enhances it.

Avoiding negative impact  

First, we’re taking urgent action to avoid negative environmental impacts. Compliance is the foundation of everything we do, and our approach evolves as we learn more. We’ve already invested $130M to improve our pellet plants since 2022, including improving air emissions. By the end of 2026, we’ll publish plans laying out how we’ll monitor and manage air quality and improve our impact on water. We’re also committing to work with our partners and suppliers to be deforestation, degradation and conversion free, and we’ll utilise leading technology to monitor and report on progress by the end of 2026.

Delivering positive impact 

Second, we’re taking strategic action to leave a positive impact. By the end of 2030, we’ll deliver biodiversity enhancements across all our sites, and take action to support biodiversity and ecosystem resilience in our value chain. This will be measurable and evidenced, backed by a science-based target for nature and action plans across our sites and sourcing areas.

Our committments

We will mitigate harm and promote circular resource use across our operations by the end of 2030.

N1	We will publish a white paper on opportunities to adopt circular economy principles within Drax, with a particular focus on the circular bioeconomy, by the end of 2025.
N2	We will develop a comprehensive plan for managing air quality by the end of 2025.
N3	We will develop a group water strategy by the end of 2026 identifying opportunities for water efficiency improvements, water reduction and improved water stewardship.* *Stewardship includes water quality, quantity and access, sanitation and hygiene.
N4	We will create and publicly report on an Environmental Incident Frequency Rate (EIFR) by the end of 2026.

We will deliver biodiversity enhancements across all our sites by the end of 2030.

N5	We will deliver net positive biodiversity for all new developments globally by the end of 2030.
N6	We will implement Nature Positive Action Plans to deliver biodiversity enhancements at or related to all owned sites by the end of 2030.
N7	We will publish our first fully aligned Taskforce on Nature-related Financial Disclosures (TNFD) report by the end of 2026.

We will support biodiversity and ecosystem resilience in our value chain, contributing to measurable restoration and conservation outcomes by the end of 2030.

N8	We will develop an SBTN “science-based target network” aligned target for nature by the end of 2027.
N9	We will develop Nature Positive Action Plans for priority biomass sourcing regions aligned to TNFD guidance by the end of 2030.
N10	We commit to being deforestation, degradation and conversion free* by taking actions in collaboration with our suppliers and other partners. We will develop our evidencing using leading technology by the end of 2026 and will report on progress. *We refer to definitions from the United Nations Food and Agriculture Organisation and applicable legislation.

Seeking to make a positive contribution to the lives and livelihoods of our colleagues, communities, and workers in our supply chain.

We believe the energy transition can and should benefit everyone. We believe in creating opportunities and ensuring respect comes above all.

People Positive in action

Building an inclusive workplace 

First, we’re acting for our colleagues, building a fair, safe and inclusive workplace for everyone. That means continuing to prioritise the health and safety of our colleagues, building a workforce that better represents the communities we operate in, and aiming to exceed the sector benchmark for employee engagement.

Promoting fundamental rights 

Second, we’re acting to uphold human and labour rights across our supply chain. As part of this, we’ve developed an Indigenous Peoples Policy, which enshrines the concept of Free and Prior Informed Consent as fundamental in our sourcing decisions.

Partnering with our communities 

Finally, we’re seeking to make tangible improvements to the lives and livelihoods of the communities we operate in . This goes beyond providing jobs at Drax sites – it requires social investment, collaboration, education and long-term support.

In 2023-24, we donated £6.3 million to non-profit organizations and community improvement projects, and our community support programmes continue to grow. We’re improving access to Science, Technology, Engineering and Maths (STEM) education and green skills training within underserved communities through the Drax Foundation. We’re also implementing Community Engagement Plans across the communities where we operate.

Our commitments

We will keep building a fair, safe and inclusive workplace.

P1	We will keep prioritising the health and safety of our colleagues.
P2	We will work to represent the communities we operate in at Drax, supported by achieving our agreed commitments and targets.
P3	We will aim to exceed the sector benchmark for employee engagement and wellbeing in our employee survey.

We will continue to collaborate with our supply chain to promote fundamental human and labour rights, including those covered by the principles of the UN Global Compact and the UN Declaration on the Rights of Indigenous Peoples.

P4	We will enhance our third-party onboarding experience and optimise our systems and associated data to strengthen the transparency of our higher risk supply chains by the end of 2026.
P5	We will consolidate our Responsible Sourcing Strategy across our supply chain by the end of 2026. This will include how social considerations will be/are integrated into the assessment of new business opportunities.

We will partner with the communities we operate in, seeking to make a postive contribution to their lives and livelihoods.

P6	We will continue to support the communities in which we operate through investment, delivered primarily through the Drax Foundation and Community Fund.
P7	We will contribute to a Just Transition by improving access to STEM education and green skills training for people in under-served communities in the regions where Drax operates, by the end of 2030.
P8	We will implement Community Engagement Plans in each of the communities where Drax owns and operates an asset, including a consultation and informed participation process, by the end of 2027.

Cautionary statement:

This Sustainability Framework has not been prepared as financial or investment advice or to provide any guidance in relation to the future performance of Drax Group plc (“Drax”) and its subsidiaries (the “Group”). It should be read as a whole, and in conjunction with the Group’s periodic reporting and other announcements (including, without limitation, regulatory announcements made in connection with Drax’s listing on the London Stock Exchange).

Forward-looking statements

This Sustainability Framework contains statements, projections, expectations, targets, goals and objectives which are “forward-looking statements” concerning the sustainability operations and business of Drax. Any statements which do not solely relate to historical or current facts are forward-looking statements which involve risk and uncertainty because they relate to events and depend on circumstances that may occur in the future. There are a number of factors, many of which are beyond the control of Drax, which could cause actual results and developments to differ materially from those expressed or implied by such forward-looking statements. Therefore, the accuracy and completeness of all such statements, including statements regarding the future emissions levels, biomass sources, technologies, community involvement, and biodiversity impacts of the Drax Group, are not warranted or guaranteed, and no assurance can be given that they will prove to be correct or achievable.

¹ Clean energy is energy that, when used, creates little or no greenhouse gas emissions. Source.
² Well-managed forestry balances society’s demands for forest products and benefits with preservation tactics to keep forests healthy for future generations.