Materiality

Stakeholder priorities evolve over time, and it is important that we regularly review and respond to them, to address expectations and effectively manage risks and opportunities. In 2023, we completed the first phase of a materiality assessment exercise. The exercise is designed to identify the sustainability topics of importance to stakeholders and their potential to have an impact on the business.

The process during 2023 involved external benchmarking to understand the current and emerging topics relevant for Drax. Benchmarking considered sustainability topics in peer disclosures, sustainability reporting frameworks, and three ESG rating questionnaires. We interviewed 30 internal stakeholders, including our Executive Committee members, to rate topics according to the potential or actual impact of our operations on people and the environment. Further analysis was added through a survey, issued to a sample of colleagues, which asked them to rate sustainability topics perceived as most important for Drax.

The resulting list of 11 material topic groupings is prioritised in order of importance, based upon scoring of impact. The 11 groupings consist of 24 material sub-topics, amongst which Water and Nature (biodiversity) were identified as emerging topics for Drax.

The outputs inform our sustainability disclosures and will be reflected in subsequent updates to our Sustainable Development Framework. This helps to ensure Drax is continuing to meet the expectations of its stakeholders.