We are leading our industry by setting standards of best practice on biofuel sourcing.

We have taken the following measures:

1. We only supply biofuel that makes a real contribution to climate change.

In practice this means:

• We don't buy bioethanol derived from US corn – an energy intensive crop that has also been linked to the “food v fuel” debate.
  
  
• We do buy Brazilian bioethanol. Derived from sugar cane produced with low fertiliser input and using the cane stalks to generate electricity required for processing, this gives the greatest carbon saving of any form of bioethanol currently on the market.
  
  
• We do buy biodiesel derived from soy grown in the US.
  
  
• We do buy biodiesel derived from animal fats.
  
  
• We do buy biodiesel made from used cooking oil.
  
  
• We do buy palm that is not from areas converted from forest or peat.
  
  
• We do buy rapeseed oil grown in the UK as well as biodiesel produced from canola in North America and rapeseed in Europe.
  
  
• For more information look at our perspectives section.

2. We have an extensive and ongoing audit programme to inspect our suppliers’ production.

• Our audit programme is being co-ordinated by leading environmental consultants ProForest, www.proforest.net, who have unparalleled expertise in the development and application of land-use based sustainability standards.

• We have worked with ProForest and leading standards and environmental groups in Brazil to develop the first sustainability standard specifically designed for Brazilian bioethanol imports into the UK.

• We have ongoing scheduled visits to all of our bioethanol suppliers and our target is to formally audit 100% of our bioethanol supply by the end of 2008.
  
  
• We are working towards an audit programme for biodiesel made from soy of South American origin.
  
  
• We are working towards sole supplier arrangements for palm biodiesel so that we can audit plantations.

3. We manage our purchasing practices so that our biofuels are derived from sustainable sources.

• All Greenergy’s purchase contracts include sustainability criteria which vary according to biofuel type and country of origin.

• We are expanding the proportion of biodiesel derived from used cooking oils and animal fats in our feedstock mix by developing new long-term contracts. This has grown from 3% of our biodiesel supply in spring 2007 to a forecast 25% over summer 2008.
  
  
• We buy palm products from RSPO members (Round Table on Sustainable Palm) and soy products from RTRS members (Round Table on Responsible Soy).

• We are working to ensure continuous improvement in our palm oil sourcing:
  
  
  • We are committed to sourcing RSPO-certified product as soon as this is commercially possible.
  • In the meantime we buy palm if it can be traced back to well-managed plantations where there has been no recent land use change, whether rainforest or peatland destruction.
  • We are lobbying the food industry to meet the same standards as above.

• We do not use any premixed B5 diesel/biodiesel mixes from the Baltic for traceability reasons.

4. We are using a credible party KPMG LLP, to provide assurance over our RTFO reporting.