Drax and the dark side of green finance : greenwashing, KPI design, and sustainability-linked loans / Arpita Agnihotri, Saurabh Bhattacharya.

Format:

Book

Author/Creator:

Agnihotri, Arpita, author.

Bhattacharya, Saurabh, author.

Language:

English

Subjects (All):

Sustainability in Business.

Physical Description:

1 online resource

Place of Publication:

Los Angeles, CA : SAGE Publications, Inc., 2026.

Summary:

This case study examines the sustainability challenges encountered by Will Gardiner, CEO of Drax Group plc, as the company transitioned from coal-based power generation to biomass. Drax positioned wood pellets as a carbon-neutral alternative, securing sustainability-linked financing and government subsidies. However, the firm faced major challenges: scientific evidence, NGO investigations, and regulatory actions questioned the credibility of its sustainability claims; the company received fines for air pollution and inaccurate reporting; investor lawsuits were filed; and there was skepticism over sustainability-linked loans due to reliance on weak, intensity-based metrics. These challenges undermined stakeholder trust. Despite ongoing expansion of biomass operations and plans for new U.S. facilities, Drax struggled to align ambitious growth with credible sustainability practices under increased scrutiny of green finance. What factors led Gardiner's biomass strategy to fall short of sustainability objectives? What key limitations exist in Drax's sustainability-linked loan key performance indicators? What actions should Drax, and its lenders take to strengthen the credibility of sustainability-linked finance?

Notes:

Description based on XML content.

ISBN:

9798348871765

OCLC:

1616683357

Publisher Number:

T303907