· 2 min read
illuminem summarizes for you the essential news of the day. Read the full piece on Sustainability Magazine or enjoy below:
🗞️ Driving the news: Drax Group, the UK’s leading renewable power generator, has been found misreporting its use of primary and old-growth forests in Canada for biomass production
• The BBC revealed that the company sourced whole trees from British Columbia, contradicting its sustainability claims and UK reporting requirements
• This follows a £25m fine in 2024 for inaccurately reporting biomass sourcing data
🔭 The context: Drax generates around 6% of the UK’s electricity, mainly through biomass at its Yorkshire plant
• The company has received £6bn in UK green energy subsidies and substantial financing from banks, including Barclays, RBC, and J.P. Morgan
• Despite sustainability-linked loans, Drax’s environmental track record raises concerns about greenwashing in the financial sector
🌍 Why it matters for the planet: Biomass is marketed as a low-carbon alternative to coal, but concerns over deforestation and carbon neutrality persist
• Burning whole trees from old-growth forests undermines climate goals and threatens biodiversity
• Financial institutions backing Drax face scrutiny over their ESG commitments versus profit motives
⏭️ What's next: Drax says it is implementing lessons from past controversies, but further regulatory scrutiny is expected
• RBC’s recent exit from the Net Zero Banking Alliance signals a potential shift in climate finance priorities
• The debate over biomass sustainability continues as the UK pushes toward a zero-carbon power system
💬 One quote: "Are financial institutions prioritising profits over genuine sustainability? It’s imperative for banks to align their financing with authentic ESG commitments." — Oonagh van den Berg, CEO of Compliance Consultancy and Compliance Education
📈 One stat: Drax reported a 99% reduction in Scope 1 and 2 emissions since 2012, but concerns remain over its supply chain’s true environmental impact
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