Drax’s first EU Taxonomy Report reveals an impressive 71% revenue alignment with sustainability criteria—nearly double the sector average—cementing its role as a frontrunner in green finance. Combined with upgraded CDP leadership scores, this voluntary disclosure sends a powerful message to investors about the company’s decisive climate strategy and operational integrity.
Drax has reached a major milestone on its sustainability journey with the publication of its first EU Taxonomy Report, a move that reinforces its leadership in sustainable finance. This voluntary disclosure highlights the depth of the company’s alignment with the European Union’s green ambitions. Notably, 71% of Drax’s revenue qualifies as both eligible and aligned with the taxonomy framework, and of that aligned portion, 99% meets the EU’s sustainability principles—an achievement well beyond the European average.
The EU Taxonomy was developed to provide a unified classification for economic activities that support environmental goals, guiding investors and businesses alike towards credible climate action. Drax’s alignment showcases how its strategic transition from coal to biomass has delivered not only cleaner energy but also financial resilience within a sustainability-focused framework.
The results stand out against the broader market. A recent EY report showed average EU Taxonomy-aligned turnover across all sectors at 10%, and even in the energy sector, the figure only reached 37%. Drax’s 71% alignment therefore marks it as a leading force in decarbonisation and responsible energy generation. This is the outcome of long-term, intentional business transformation that centres on renewables.
Beyond compliance, Drax’s ambition is to exceed minimum environmental benchmarks. Its work on sustainable biomass, particularly in responsible forestry management, underpins its pathway to achieving net zero across its value chain by 2040. Biomass sourcing is closely managed to maintain biodiversity, forest health and carbon balance, avoiding deforestation while enhancing ecosystem value.
Supporting this ambition are Drax’s latest CDP scores. The company maintained an A- rating for climate and earned an upgraded A- score for forests, placing it in CDP’s highest ‘leadership’ band. This recognition reflects Drax’s commitment to transparency, accountability, and continuous improvement in how it manages emissions, water, and forest impacts. It also places Drax among the leading performers in the FTSE group when it comes to environmental disclosures.
These achievements are bolstered by the introduction of a new sustainability framework shaped by collaboration with scientists, NGOs, investors, and employees. This consultative model underscores Drax’s holistic approach, aiming to ensure that sustainability is embedded at every level of decision-making.
For Drax, this is not the destination but the start of a longer journey. Facing a rapidly evolving climate landscape, the company is committed to raising the bar—engaging openly with stakeholders, decarbonising its supply chain, and staying aligned with the highest standards of environmental governance. Through its continued leadership in sustainable biomass generation, Drax is proving that reliable energy and responsible climate action can go hand in hand.
Drax Group plc (LON:DRX), trading as Drax, is a power generation business. The principal downstream enterprises are based in the UK and include Drax Power Limited, which runs the biomass fuelled Drax power station, near Selby in North Yorkshire.
