Sustainability Flash Note Sustainability Connect 2026: Take-aways from our Call with Drax

Research evidence excerpt

Sustainability Flash Note Sustainability Connect 2026: Take-aways from our Call with Drax

Jean-Xavier Hecker AC Europe Equity Research

(33-1) 4015 4472 18 May 2026 J P M O R G A N

jean-xavier.hecker@jpmorgan.com

forests and the assessment of specific impacts on those stocks. The Board advises on

measurement approaches and impact assessment.

Biomass Sourcing Policy: Verification and Traceability

The speaker mentioned that Drax’s Biomass Sourcing Policy requires sourcing

only from regions where forest carbon stocks are stable or increasing. Verification is

supported by technology, enabling assessment at both broader landscape and national

levels. Drax employs a more granular approach through partnerships, notably with

NGIS, utilising geospatial data to monitor carbon stocks. The company also engages in

bespoke partnerships to analyse growth versus harvest ratios, enhancing traceability and

verification. In addition, Drax uses a biomass carbon calculator to help meet regulatory

obligations and measure greenhouse gas emissions across the supply chain. Technology

is described as instrumental in increasing the transparency and granularity of these

processes. Drax has launched the Biomass Tracker, which provides accurate visibility

into biomass flows. The company relies on third-party standards, notably SBP, with

granular data underpinning its traceability efforts. Standards are applied across

government and regulatory requirements.

SBP and Third-Party Certification: Drax reports that 99.95% of the woody biomass

consumed at Drax Power Station is SBP compliant. The company assesses the

stringency of SBP within the context of a risk-based regulatory framework, which is

important due to the dynamic nature of forests. SBP certification serves as a proxy to