The Power to Change

Drax is driving its sustainability response to the next level with an innovative multi-asset derivative model

Sustainability is central to the business of power generator Drax Group. With the ambition to become a carbon-negative company by 2030, the treasury team at Drax is never one to shy away from innovative thinking. Having successfully executed a number of pioneering projects, TMI is delighted to celebrate the team as winner of the Treasury4Good 2021 Best ESG FX Solution for its innovative ESG-linked FX derivatives project.

Best ESG FX Solution

Power generators are under intense investor scrutiny over their sustainability credentials. But the sector has a decidedly green contingent, with Drax, one of the UK’s leading renewable energy generators, known for its proactive and innovative approach.

The focus on sustainability for Drax treasury started in 2019 with its first ESG term loan, a £125m ESG CO2 emission-linked loan facility, a global first for a power generator. Since then, it has implemented an ESG Deferred Letter of Credit programme, established a £300m ESG RCF, and added a Canadian-dollar ESG term-loan. Most recently Drax has extended its ESG metrics to derivatives, with a multi-asset approach, starting with FX.

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