Drax executives privately doubted sustainability claims while the energy company publicly defended itself against allegations that it burned wood from old-growth forests, tribunal documents have revealed. Senior leaders, including the chief executive, denied BBC Panorama’s claims externally, but internally raised concerns about insufficient evidence supporting sustainability assertions.
The company received over £7 billion in subsidies from household energy bills, contingent on biomass pellets sourcing from waste or low-value wood in sustainable forests. Drax imports millions of tonnes of wood pellets annually from Canada, yet has faced persistent questions about its business model’s environmental credibility.
When the BBC broadcast its documentary in October 2022, Drax rejected findings about two pellet production facilities in British Columbia. Chief executive Will Gardiner assured government officials of compliance with subsidy requirements, stating he had positioned sustainable biomass “at the heart of Drax” with “careful and robust governance.” The company claimed 80 percent of material was sawmill residue and waste.
Court documents provided to news organizations revealed contradictions to these public assurances. Compliance staff privately warned the company lacked data proving pellet origin and sustainability. Former head of public affairs Rowaa Ahmar alleged she was dismissed after warning Gardiner that Drax was “misleading the public, government and its regulator.” Her witness statement claimed compliance leadership admitted the company might have consistently burned old-growth pellets since at least 2019, constituting “significant misreporting” of burn data under government subsidy schemes.
Chief commercial officer Paul Sheffield acknowledged awareness of compliance concerns about substantiating claims made after the documentary. Ahmar’s statement detailed a colleague explaining that while Drax represents to Ofgem they measure every log, the company does not actually perform such measurements. However, tribunal documents suggest the chief executive was unaware of these internal concerns when initially denying BBC allegations.
Gardiner later stated that following the broadcast, his team needed conducting a full review of allegations, though he had initially been advised the documentary would have limited impact. He noted the UK-based team responding to fallout remained disconnected from Canadian operations, creating challenges gathering necessary information for public statements and government responses.
Company leadership defended their response approach. Jonathan Oates, director of external affairs, emphasized the fundamental principle that “you do not lie” in public relations. Corporate affairs director Clare Harbord testified that external statements underwent extensive cross-checking and approval across the business, describing the vetting process as “extraordinary, meticulous and robust.”
KPMG was contracted to review data provided to regulators, nearly a month after allegations emerged. Drax has refused to publicly release the review’s findings. Ahmar departed the company in January 2024 after special leave, subsequently settling her tribunal claim without Drax admitting liability.
Drax stated all tribunal claims were thoroughly investigated through internal processes and independent reports. The company maintained that findings were provided to regulator Ofgem. Following their separate 16-month investigation concluding August 2024, Ofgem found no evidence of incorrect subsidy issuance or unsustained biomass. However, Ofgem identified inadequate data governance and controls regarding wood sourcing from Canada between April 2021 and March 2022, with Drax paying £25 million compensation.
The Financial Conduct Authority continues investigating historical statements Drax made regarding pellet sourcing. Drax currently generates 10 percent of Great Britain’s electricity, having transitioned from being western Europe’s largest coal-fired station in 2012 through the complete 2023 shift to compressed wood biomass.
