Enviva, Inc.

Fagen v. Enviva Inc. et al., (Case No. 8:22-cv-02844), D. Md.

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On October 12, 2022, Blue Orca Capital issued a short report alleging that purported ESG wood pellet producer, Enviva, Inc. “is flagrantly greenwashing its wood procurement.”

According to the report, Enviva claims to be an ESG Company, when instead it is relying on a carbon accounting loophole that “subsidizes European power companies to replace coal with wood pellets derived from deforestation in the United States.” Using GPS data to geolocate Enviva’s harvests, Blue Orca found satellite imagery of clear-cut forests, a controversial practice involving the removal of full swaths of forest. Clear-cutting is a widely condemned practice by both ESG investors and climate change advocates.

Additional allegations in the short report include the company overstating the sustainability of harvests, decreasing hardwood forest inventory around the Company’s facilities, inflated profit margins from providing equipment to loggers in exchange for reduced prices, and overpayment for related party transactions.

Shares of Enviva, Inc. stock dropped more than 13% in intraday trading on October 12, 2022.

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