European biofuels: the growing challenge of sourcing sustainable feedstocks

The European Renewable Energy Directive requires an increasing share of renewable fuel in the European transport sector over the next decade. Many European refiners are hence investing in biofuel production at their existing facilities or converting uncompetitive assets. The regulation includes restrictions on the feedstocks used to produce the renewable fuels, which challenges biofuel producers to source increasing volumes of advanced feedstocks. Setting up, or expanding, these feedstock supply chains exposes refiners to a range of Environmental, Societal and Governance risks, which need to be carefully managed if they are to retain their social license to operate. By understanding where and what the key ESG risks are, refiners can strengthen their traceability checks and hence lower reputational and legal risk as they diversify their business and transition to a lower carbon future.