Tag: sustainability

Sustainability reporting 2017

21 March 2018

Sustainable business

Sustainability information

Our Approach

Through our integrated value chain and flexible lower-carbon energy proposition … [Read more]

Achieve together with our people

We are nothing without our people and we take our commitment to provide a safe and healthy workplace … [Read more]

Drax Group sustainability team

Deliver for our customers

We focus relentlessly on improving our service and developing stronger relationships with our customers … [Read more]

A lower-carbon company

We are committed to enabling a low-carbon future by moving away from coal … [Read more]

Responsible sourcing

Our commitment to sourcing natural resources responsibly is underpinned by our sustainability policy … [Read more]

Reduce our environmental impact

Our responsibility for the environment as a major power supplier goes beyond reducing carbon dioxide … [Read more]

Positive social impact

Our contribution to the community takes many forms, from our direct role in areas … [Read more]

Sustainability case studies

Building a sustainable business

The boundaries between users, suppliers and generators are blurring, writes CEO Will Gardiner … [Read more].

The sustainable development goals

Improved performance has guided our business purpose for over four decades … [Read more]

Commitment to the UNGC

Reporting on the 10 principles of the UN Global Compact … [Read more]

Drax Biomass invests in greenhouse gas efficiencies

Truck dumps, a new train line and use of sawmill residues are helping our own biomass producer … [Read more].

Gamlingay community turbine

Opus Energy works with thousands of renewable electricity generators. Find out more in this purchase power agreement … [Read more]

Partnering to build a Northern Powerhouse

We are passionate about supporting the economy of the North of England … [Read more]

Customer service excellence

Excellent customer service is at the heart of our business … [Read more]

Collaborating for biodiversity protection and enhancement

Drax is committed to protecting biodiversity and playing an active role in habitat enhancement … [Read more]

Drax Biomass creates value in the United States

In many US States, including those in which Drax Biomass operates, there is a system of local taxation … [Read more]

American Tree Farm

The oldest sustainable family woodland system in the US … [Read more]

People strategy

We continue to strengthen, develop and deliver our people strategy across the Group … [Read more]

Listening to local communities

We strive to make a positive impact on local communities to ensure we understand the potential impacts … [Read more]

The Sustainable Biomass Program

The Sustainable Biomass Program’s (SBP) vision is an economically, environmentally and socially sustainable … [Read more]

Working with our suppliers

Working with Pinewells, a supplier of sustainable wood pellets in Portugal … [Read more]

The Bettercoal initiative

Ensuring industry respects people’s rights and makes a positive contribution to the social and economic … [Read more]

Restoring Brickmakers’ Wood

Haven Power employees have worked with the Eden-Rose Coppice Trust to help transform a woodland … [Read more]

Building a sustainable business

Will Gardiner, Chief Executive Officer, Drax Group

Opinion

The UK energy sector is changing rapidly. The boundaries between users, suppliers and generators are blurring as energy users are choosing to generate their own energy and are managing their energy use more proactively while, conversely, generators are increasingly seeing users as potential sources of generation and providers of demand management.

“The UK is undergoing an unprecedented energy revolution with electricity at its heart – a transition to a low-carbon society requiring new energy solutions for power generation, heating, transport and the wider economy”

In that context, our Group’s purpose is to help change the way energy is generated, supplied and used for a better future. This means that sustainability, in its broadest sense, must be at the very core of what we do. Successful delivery of our purpose depends on all our people, across all our businesses, doing the right thing, every day. With the right products and services, we can go even further and help our customers make the right, sustainable energy choices.

As our businesses transform and we embrace a larger customer base, different generation technologies and operate internationally, the range of sustainability issues we face is widening and becoming more complex. At the same time, the range of stakeholders looking to Drax for responsible leadership on sustainability is increasing. The need for transparency is greater than ever, so our website’s sustainability section provides a comprehensive insight into the Group’s environmental, social and governance management and performance during 2017.

Some of the highlights include:

  • Carbon reduction: I am pleased that, in 2017, the proportion of our energy generation from renewable sources remained high. 65% of our generation during the year came from sustainable biomass and accounted for 15% of the country’s overall renewable generation. We maintained our rigorous and robust approach to ensure that we only ever use biomass that is sustainably produced and legally sourced.
  • People: Another key achievement was the roll out of our people strategy to 2020 – One Drax – which focuses on talent to deliver on our strategic and operational objectives.
  • Safety: The health and safety of all our employees and contractors is of paramount importance to Drax. While the Group’s safety incident rate remained on target in 2017, the fire at our biomass rail unloading facilities in December did cause an outage, with disruption lasting into 2018. It highlighted once again that the risks of generating using biomass must be mitigated through robust safety procedures and a risk-based plant investment and maintenance programme. Safety therefore remains at the centre of our operational philosophy and we are determined to do even better.
  • Customers: Our business to business (B2B) Energy Supply business received recognition for their dedication to customer service. Opus Energy won “Utilities Provider of the Year” at the British Small Business Awards 2017.

We initiated a process which would allow us to participate in the United Nations Global Compact (UNGC). We are committed to the initiative and its ten principles, which align with our culture of doing the right thing.

Our website’s sustainability section also sets out our commitment to achieving the United Nations’ Sustainable Development Goals through our operations, the services we deliver to our customers and in partnership with others.

Global ambitions and goals are important, but so too are our ambitions for our local and regional communities. As such, we have played a key role in the UK Northern Powerhouse Partnership, initiatives such as POWERful Women and a comprehensive programme of stakeholder engagement.

“Sustainability, in its broadest sense, must be at the very core of what we do”

Finally, I do not believe any organisation, however well intentioned, can get its commitment to sustainability perfect on its own and I am very keen for Drax to learn from people reading our website’s sustainability section. It sets out what we see as our achievements and aspects in which we believe we need to do better. I would like to invite any stakeholder with an interest to comment on what we’re doing and help us improve where we can. Feedback can be submitted at Contact us or via our Twitter account or Facebook page.

Read the Chief Executive’s Review in the Drax Group plc annual report and accounts

The sustainable development goals

Sustainable business

In 2015, the United Nations launched 17 Sustainable Development Goals (SDGs) to end poverty, protect the planet and ensure prosperity for all by 2030. At Drax, improved performance has guided our business purpose for over four decades. We are committed to play our part in achieving the UN SDGs through our operations, the services we deliver to our customers and in partnership with others.

Drax Group has the most significant impact on the Global Goals listed below:

Affordable and clean energy

We provide 6% of the UK’s electricity and play a vital role in helping change the way energy is generated, supplied and used as the UK moves to a low-carbon future. In 2017, 65% of the electricity we produced came from biomass, rather than coal. Our B2B Energy Supply businesses encourage customers to be more sustainable, including through the provision of reliable, renewable electricity at no premium compared to fossil fuel-generated electricity.

Customers

Low Carbon

Decent work and economic growth

We directly employ over 2,500 people in the United Kingdom and United States and their health, safety and wellbeing remains our highest priority. Our B2B Energy Supply business offers energy solutions and value-added services to industrial, corporate and small business customers across the UK.

Society

Industry, innovation and infrastructure

We develop innovative energy solutions to enable the flexible generation and lower-carbon energy supply needed for a low-carbon future. We also innovate to improve the efficiency of our operations and increase our production capacity, notably in our biomass supply chain. Our B2B Energy Supply business offers “intelligent sustainability” and innovative products and services to our customers.

Customers

Low Carbon

Climate action

Our electricity generation activities are a source of carbon emissions. We are committed to helping a low-carbon future by moving away from coal and towards renewable and cleaner fuels, including biomass electricity generation and our planned rapid-response gas plants. We also help our business customers to be more sustainable through the supply of renewable electricity.

Low Carbon

Life on land

We source sustainable biomass for our electricity generation activities and engage proactively with our supply chain to ensure that the forests we source from are responsibly managed. We work closely with our suppliers and through tough screening and audits ensure that we never cause deforestation, forest decline or source from areas officially protected from forestry activities or where endangered species may be harmed.

Low Carbon

Sourcing

Environment

Partnerships for the goals

We engage with stakeholders regularly and build relationships with partners to raise our standards and maximise what can be achieved. Our collaborations align closely with our business, purpose and strategy.

Stakeholder Engagement

Society

Commitment to the UNGC

Sustainable business

In 2017, we initiated a process which will allow us to participate in the United Nations Global Compact (UNGC) a global sustainability initiative and we will evidence progress next year. We made progress in preparing for participation outlined in the following sections:

Human rights

We seek to safeguard fundamental human rights for our employees, contractors and anyone that is affected by our business. We ensure that our suppliers apply high standards to protect human rights.

Modern Slavery Statement

Labour

We have policies and standards in place to safeguard our employees and contractors. We respect our employees’ rights in areas such as freedom of association and collective bargaining and we do not tolerate forced, compulsory or child labour. We are committed to providing a safe and healthy workplace for all our people and we strive to prevent discrimination and promote diversity in our workforce.

People

Environment

As a generator and supplier of electricity, we take our responsibility to protect the environment very seriously. We have transformed our generation business and are seeking to further reduce our environmental impact. We focus on reducing our emissions to air, discharges to water, disposal of waste, and on protecting biodiversity and using natural resources responsibly. We have invested heavily in lower-carbon technology as we continue to transition away from coal to renewable and lower-carbon fuels.

Customers

Low Carbon

Environment

Anti-corruption

We do not tolerate any forms of bribery, corruption or improper business conduct. Our “Doing the Right Thing” framework sets out the ethical principles our people must uphold, which is supported by the Group corporate crime policy. Our strict ethical business principles apply to all employees and contractors and we expect the same high standards from anyone we do business with.

Ethics and Integrity

Gamlingay community turbine

Sustainable business

Gamlingay Community Turbine is situated just outside the village of Gamlingay, Cambridgeshire. It is an enterprise privately funded by local residents and businesses. The village installed the turbine for three reasons: to reduce its carbon footprint; to raise money for the community by selling the turbine’s power; and to create a good investment opportunity for individuals and businesses in the area.

Opus Energy offers to purchase power at market-leading prices. The team behind the Community Turbine were seeking a high level of customer service, which is why they chose to sell their power to Opus Energy. Mr Brettle, a director of the project, comments:

“It really came down to how easy it was to talk to Opus Energy. We’re all people with day jobs so don’t have much spare time, and we’re certainly not experts in this area! Opus Energy helped us cut through the jargon and gave us confidence that nothing horrible will happen because we’d missed some technical detail. They made the entire process simple from start to finish.”

Gamlingay Community Turbine Ltd will give 10% of the net income, after all running costs, to a community fund. This will enable them to create a long-term income stream for the local area which will be used to support environmentally friendly projects for the benefit of the whole community.

Partnering to build a Northern Powerhouse

Sustainable business

As a company with a strong Yorkshire heritage, we are passionate about supporting the economy of the North of England and promoting the role of the energy sector within it.

That is why we play an active role in the Northern Powerhouse Programme and regularly meet with regional bodies such as Transport for the North and Local Enterprise Partnerships.

We are also represented on the board of the Northern Powerhouse Partnership, a group of leading northern businesses and civic leaders committed to maximising the economic potential of the North.

As part of our work with the Partnership, the CEO of Drax Power, Andy Koss, chaired five workshops focusing on the opportunities and challenges facing the energy sector in the North. Over 100 people attended the workshops in York, Hull, Warrington, Lancaster and Carlisle, which brought together industry experts, local authorities and community groups.

The workshops informed a report published by the Partnership in September 2017, Powerhouse 2050: Transforming the North, which recommended several policy interventions to address the North’s productivity gap and create an extra 850,000 jobs by 2050.

Customer service excellence

Sustainable business

Our B2B Energy Supply business offers personal account management to our large corporate customers and our employees strive to support customers at every step. We aim to treat customers fairly at all times and commit to being professional, honest and transparent in our interactions.

Both Haven Power and Opus Energy have strict standards, outlined publicly in their respective “treating customers fairly” policies. The statements explain how we communicate with customers, transfer their supply, deal with billing and payment and how we handle complaints. Opus Energy publishes an additional performance standard confirming its commitment to customers. Employees receive regular training on providing a high level of customer service.

When things do go wrong, we are quick to make amends and resolve issues efficiently. We have publicly available complaints procedures and make it clear who to contact. At Opus Energy, complaints are overseen by the Customer Experience Board.

We are proud of the recognition both Haven Power and Opus Energy received for their dedication to customer service in 2017. Haven Power was shortlisted for “Supplier of the Year” at the Energy Awards 2017 and named the UK’s best performing energy supplier by Third Party Intermediaries (TPIs) in this year’s Cornwall Insight Report. Opus Energy won “Utilities Provider of the Year” at the British Small Business Awards 2017 and was shortlisted in the National Business Awards 2017.

Protecting customer security and privacy

We take the privacy and security of our customers’ data seriously. We are committed to maintaining effective and sustainable privacy and security programmes dedicated to ensuring our customers have confidence in our data handling practices.

As part of our commitment in this area, we appointed a Group Data Protection Officer to enhance our privacy compliance. We are in the process of updating our Privacy Compliance Programme to take account of new requirements of the General Data Protection Regulation (GDPR), enforceable in May 2018, and other associated new data protection legislation.

To support our privacy compliance process and organisation policies, we undertook an extensive technical Security Improvement Programme. We implemented industry-leading control measures to protect our customer and employee data by detecting and preventing threats and security breaches.

Programme initiatives included information protection, using protection technology to automatically detect personally identifiable information and protect it from unauthorised access and disclosure. In addition, advanced threat monitoring and analytics measures implemented mean we have layered toolsets designed to detect, identify, respond to and resolve cyber threats and attacks before they can happen.

Providing customers with great value and good ethics

Founded in 1860, Salisbury Museum is located in a Grade I listed building opposite Salisbury Cathedral. As a charitable, not-for-profit organisation, the museum relies on entry fees, grants, donations and the support of its members to continue its vital work. Finding a business energy supplier that offered the best prices on the market, as well as the right length of contract and good ethics, was important for the museum.

SMEs are a key part of Opus Energy’s business and they know that a business energy service that is as smooth and efficient as possible is a top priority.

Nicola Kilgour-Croft, Finance Manager at Salisbury Museum, commented:

“The switching process went through really smoothly, and the facility to receive invoices via email means I don’t need to spend time on the phone trying to sort out payment. Having 12-month contracts really works for us.

“We were looking for a business energy supplier that offered great value, combined with the right length of contract and good ethics – and Opus Energy ticked all these boxes for us.”

 

Drax Biomass creates value in the United States

Sustainable bioenergy

In many US States, including those in which Drax Biomass operates, there is a system of local taxation called “severance tax”. This is a tax raised on each tonne of timber felled in a State, and is usually paid by the landowner.

Drax Biomass has elected to pay this tax directly, on behalf of the supplier, on all roundwood received at each pellet plant.

In Mississippi alone, over a 12-month period, severance tax in excess of $80,000 was paid. The monies raised are used for local schools, roads and other public services.

People strategy

Sustainable business

Our people strategy: One Drax

Following extensive consultation with employees, we developed our people strategy to 2020 – One Drax. It has been designed to address the key issues that were raised by employees in our 2016 employee survey, such as the need for clearer learning and development programmes and more effective internal communications. The strategy focuses on valuing our people, driving business performance and developing talent to deliver our strategic and operational objectives.

We launched the five aspects of the strategy: my career, my performance, our behaviours, our reward, my recognition. In 2018, we will focus on all of these aspects and, in particular, our reward, my recognition and my career.

Behavioural framework

We have developed a number of HR programmes in line with our people strategy. The foundation of this is a new behavioural framework that identifies positive behaviours reflecting our Company values: honest, energised, achieving, together. The behaviours are integrated into all areas of our people management processes at Drax Group. The HR team consulted with one in five employees across the business, including senior leaders and union representatives, to develop the framework.

In 2018 we will further embed the behavioural framework and our Company values into our culture by developing an online tool for employees to evaluate how they demonstrate the behaviours.

Developing our people / apprenticeships

At Drax Power, we have a proud history of apprenticeships, with the majority remaining to work at Drax and progressing through the Company.

Mick Moore joined Drax on 7 September 1976 as a craft apprentice.

On completion of his apprenticeship, Mick continued to further his education and completed an HNC in Electrical & Electronic Engineering. After a 10-year break he resumed his further education, graduating from Humberside & Lincolnshire University with a degree in Electronics & Control Engineering, achieving Chartered Engineering status with the Institute of Electrical Engineers in 1999.

Having worked at Drax for 41 years, Mick’s career has included roles such as Instrument Mechanic, various engineering grades from Assistant Engineer to Process Control Engineer & Maintenance Section Head. Mick is now the Electrical, Control & Instrumentation Engineering Section Head for Drax Power and is currently responsible for a team of 51 people.