Drax Group
DRX
2
exclusion reasons
2 themes
This page is part of our public exclusion list — a transparency tool that shows which companies we screen out and why. It is not investment advice, and it is not an accusation. But it is subject to change as our understanding of the facts evolves.
Drax Group is under investigation by the UK Financial Conduct Authority concerning its biomass sourcing disclosures between January 2022 and March 2024, and the compliance of its 2021, 2022, and 2023 annual reports. The FCA probe, announced in August 2025, triggered an immediate 8% decline in Drax's share price. Separately, Ofgem concluded an investigation in 2024 which found Drax Power Limited had failed to report data accurately, a breach of annual profiling reporting requirements. A shareholder group, represented by Mishcon de Reya, is pursuing a compensation claim against Drax, alleging greenwashing. Internal whistleblower concerns regarding the company's sustainability claims were reportedly investigated through an internal grievance procedure, according to tribunal evidence from 2026.
Drax Group operates the world's largest biomass power station in the UK, fueled primarily by wood pellets. Its U.S. subsidiary, Drax Biomass, operates pellet mills in the Deep South that have amassed over 18,000 documented environmental violations. These include thousands of incidents exceeding permitted limits for toxic air pollutants like formaldehyde and acrolein, as well as repeated water contamination events.
In 2022, Drax paid $3 million to settle claims over toxic pollution from its Gloster, Mississippi plant. Residents of Gloster are now suing the company, alleging unlawful exposure to massive amounts of pollutants.
Investigations by journalists and NGOs, supported by whistleblower testimony, allege Drax sources wood from primary forests. The company publicly denies this, but the opacity of its supply chain — including a failure to fully detail Canadian wood sources cited by Mississippi regulators — undermines its sustainability claims.
Drax-owned mills have repeatedly failed to utilize required pollution control equipment. Regulators denied the company a permit for a new pellet mill in Mississippi following community opposition, citing 55 known toxic compounds that disproportionately impact environmental justice communities.
Research Sources
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