Drax Group PLC (Drax) has announced[1] the FCA has closed its investigation into the company.
We undertook an extensive investigation following concerns raised regarding disclosures to the market about the sustainability of Drax’s Canadian biomass. We did not find evidence that justified any further action.
Thousands of pages of complex material were reviewed as part of the investigation, and individuals from the company interviewed. Our focus was on areas within our remit, specifically whether Drax’s annual reports and accounts between 2021 and 2023 contained misleading statements or left out important information investors needed to know. Accurate reporting is crucial to the integrity of our markets, and vital so investors can make informed decisions.
Where evidence supports proportionate action, we take it. Where it does not, we close cases as swiftly as possible.
Background
- The FCA confirmed it was opening an investigation[2] on 28 August 2025 following enquiries made in the wake of the announcement by Ofgem in August 2024 of its conclusions on Drax’s reporting of biomass profiling data.
- Drax is not a regulated financial services firm subject to all our rules. As a listed company it has specific rulebooks detailing listed companies’ continuing disclosure obligations.
- The FCA investigation’s scope was limited to examining Annual Reports and Accounts for 2021, 2022 and 2023.