Climate Change Data

Enviva Inc.

Climate Impact & Sustainability Data (2012, 2019, 2020)

Reporting Period: 2012

Environmental Metrics

Total Carbon Emissions:100-200 kgCO2/MWhe (average life cycle GHG emissions of pelletized woody biomass)

ESG Focus Areas

  • Climate Change
  • Environmental Sustainability
  • Sustainable Forestry
  • Economic Impact
  • Social Responsibility

Environmental Achievements

  • Biomass-fired electricity generation has demonstrated greenhouse gas emissions reductions between 74 percent and 90 percent as compared to equivalent energy produced using coal.
  • Increased forest carbon sequestration by 31 percent since 1990 in the US.
  • Net CO2 sequestration from forests was 922 million metric tons of CO2 equivalent in 2010, which was approximately 16 percent of total US emissions.

Social Achievements

  • The wood pellet industry provides tens of thousands of new employment opportunities, both direct manufacturing jobs and indirect supply chain jobs in rural areas.
  • Provides revenue for forestland owners, helping them earn a living from their wood resources and giving them the incentive and the means to reinvest in the forest.

Governance Achievements

  • Enviva maintains a number of certifications to leading programs that verify the certified content in our supply chain and also ensure that non-certified fiber comes from responsible sources.
  • All Enviva-owned and partner pellet plants are now certified to the Sustainable Forestry Initiative® (SFI) Fiber Sourcing Standard.

Climate Goals & Targets

Environmental Challenges

  • Economic downturn decreasing demand for forest products, potentially threatening the positive trend of increasing forests and forest carbon stocks.
  • Risk of forest saturation due to decreased demand, leading to increased tree mortality and vulnerability to threats.
  • Increased frequency of severe wildfires in recent years.
Mitigation Strategies
  • Strong timber markets with new demand created by biomass-to-energy provide economic incentives to ensure that landowners maintain their land as forests.
  • Sustainable forest management practices, including commercial thinning, help maintain forest health and vitality.
  • Biomass energy harvesting provides landowners with additional revenue sources, ensuring they can keep their forestlands as forests.

Supply Chain Management

Responsible Procurement
  • Best Management Practices (BMPs)
  • SFI Fiber Sourcing Certification

Climate-Related Risks & Opportunities

Physical Risks
  • Wildfires
Transition Risks
  • Economic downturn reducing demand for forest products
Opportunities
  • Biomass as a renewable energy source

Reporting Standards

Frameworks Used: SFI

Certifications: FSC, PEFC, SFI, ATFS

Reporting Period: 2019

Environmental Metrics

Total Carbon Emissions:245,994 tCO2e/year (Scope 1 & 2)
Scope 1 Emissions:31,032 tCO2e/year
Scope 2 Emissions:214,962 tCO2e/year
Carbon Intensity:87 kgCO2e/MT in 2019

ESG Focus Areas

  • Forests
  • Climate Change
  • People

Environmental Achievements

  • Displaced 16 million metric tons of coal since inception, avoiding 31 million metric tons of CO2e emissions.
  • Increased forest inventory in sourcing regions by over 400 million metric tons between 2010 and 2019.
  • Achieved Sustainable Biomass Program (SBP) certification for all plants.
  • Enrolled over 90,000 acres in forest management certification between 2015 and 2019.

Social Achievements

  • Launched Enviva Forest Conservation Fund (EFCF) in 2015, conserving over 15,000 acres of bottomland hardwoods through 2019.
  • Improved Total Recordable Incident Rate (TRIR) to 1.10 in 2019.
  • Implemented Operational Excellence Management System (OEMS) to improve safety and sustainability.
  • Partnered with Halifax Community College for RAMP East Program, providing training and employment opportunities.
  • Donated $25,000 to the STARZ24 Teen Center in Greenwood, SC.

Governance Achievements

  • Established three standing committees: audit, compensation, and health, safety, sustainability, and environmental (HSSE).

Climate Goals & Targets

Environmental Challenges

  • Early sourcing from bottomland hardwood stands raised concerns.
  • Greenhouse gas impacts of the industry.
  • Supply chain emissions from harvesting, processing, and transportation.
Mitigation Strategies
  • Developed strict procedures for sustainable forest sourcing, including pre-harvest assessments and gate inspections.
  • Implemented Track & Trace® technology for supply chain transparency.
  • Improved sourcing processes to avoid High Conservation Value (HCV) areas.
  • Partnered with conservation organizations to improve sourcing practices.
  • Reduced lifecycle carbon footprint of wood pellets by 91% compared to coal and 85% compared to natural gas.

Supply Chain Management

Supplier Audits: Almost triple the number of inspections compared to 2018

Responsible Procurement
  • Master Wood Purchase Agreement with sustainability requirements
  • Pre-harvest assessments, gate inspections, and post-harvest inspections

Climate-Related Risks & Opportunities

Physical Risks
  • Increased wet weather events causing sourcing disruptions
Opportunities
  • Availability of salvage wood during severe weather events

Reporting Standards

Frameworks Used: GRI, SASB, UN SDGs, GHG Protocol

Certifications: SFI®, FSC®, PEFC®, SBP

Third-party Assurance: Bureau Veritas UK Ltd

Reporting Period: 2020

Environmental Metrics

Total Carbon Emissions:289,363 tCO2e
Scope 1 Emissions:45,208 tCO2e
Scope 2 Emissions:244,155 tCO2e
Scope 3 Emissions:398,185 tCO2e
Renewable Energy Share:25%

ESG Focus Areas

  • Climate Change
  • Forests
  • People and Communities

Environmental Achievements

  • Achieved the safest year ever in operations.
  • Improved comprehensive sustainability efforts.
  • Reduced natural gas requirement in operations by 25% while maintaining emission control.
  • Partnered with GreenGasUSA to decarbonize natural gas-related emissions, offsetting approximately 75% of direct emissions.

Social Achievements

  • Created a new VP of Equity, Inclusion, and Impact role.
  • Improved safety performance, achieving the safest year ever.
  • Supported community initiatives through philanthropy, including youth centers, senior centers, and food banks.
  • Partnered with organizations to address heirs' property issues.

Governance Achievements

  • Converted from a master limited partnership to a Delaware corporation.
  • Expanded the board, adding three new directors, resulting in all directors except the CEO being independent.
  • Launched a first ever Green Term Loan, with S&P Global Ratings certifying alignment with Green Bond and Loan Principles.

Climate Goals & Targets

Long-term Goals:
  • Net-zero greenhouse gas emissions from operations by 2030.
Medium-term Goals:
  • Source 100% renewable energy by 2030.
  • Achieve net-zero greenhouse gas emissions from operations by 2030.
Short-term Goals:
  • Source 50% renewable energy by 2025.

Environmental Challenges

  • Supply chain disruptions due to inclement weather events exacerbated by climate change.
  • Maintaining safety during the COVID-19 pandemic.
Mitigation Strategies
  • Developed a stumpage program to mitigate sourcing disruptions.
  • Implemented enhanced cleaning and safety protocols, followed CDC guidance, adjusted shift schedules, and increased PPE distribution to maintain safety during COVID-19.

Supply Chain Management

Responsible Procurement
  • Responsible Sourcing Policy (RSP)
  • Track & Trace® (T&T®) program
  • SBP certification

Climate-Related Risks & Opportunities

Physical Risks
  • Increased wet weather events causing sourcing disruptions.
Transition Risks
  • Changes in regulations on biomass as a carbon-neutral fuel.
Opportunities
  • Sourcing salvage wood after severe weather events.

Reporting Standards

Frameworks Used: SASB

Certifications: FSC® Chain of Custody (CoC) and Controlled Wood (CW) Standards, PEFC, SFI® Chain of Custody certification, SFI Fiber Sourcing Standard

Third-party Assurance: Bureau Veritas UK Ltd