Ratings Methodology
BDO Zones are closely examined and scored using the most rigorous standardized framework devised to date for accurately rating feedstock risks for investors and capital markets.
Rating Framework
BDO Zone ratings are evaluated based on 75+ risk indicators from the Biomass Supply Chain Risk (BSCR) Standards, to assess Biomass Supply Chain and Infrastructure risks.
The Biomass Supply Chain Risk (BSCR) Standards represent an established risk assessment methodology for evaluating feedstock credit quality and operational resilience within the bioeconomy sector. These standards provide a comprehensive framework for analyzing supply chain stability, counterparty reliability, and operational risk factors that impact the creditworthiness of biomass-dependent enterprises.
In 2021, the Canadian Standards Association (CSA) used the BSCR standard as the seed document to produce a National Standard of Canada (CSA W209:21). Harmonization as a U.S. ASTM standard is slated for 2025.
The Zones
A BDO Zone rating constitutes a regional risk assessment centered on a designated reference point selected by the BDO Zone Issuer. The methodology establishes three concentric assessment zones radiating from this central coordinate, within which comprehensive evaluations of Biomass Supply Chain and Infrastructure risk factors are conducted to determine the overall rating and operational viability of the designated region.
BDO Zone
A 25-mile drive distance from the center point, representing the primary siting area for future biomass projects.
Supply Zone
A 75-mile drive distance from the center point, where feedstock availability is assessed.
Competition Zone
A 150-mile drive distance from the center point, where consumers can compete for feedstock.
Rating Phases
The BDO Zone rating process consists of two phases: the Analysis Phase, and the Promotion Phase.
Rating Analysis Phase
The Rating Analysis Phase encompasses a comprehensive four-to-sixteen week assessment period, with duration subject to variation based on transaction complexity and data availability. This phase incorporates quantitative risk evaluation across biomass supply chain and infrastructure risk metrics, benchmarked against established ASTM and CSA industry standards. Upon completion of the analytical review, the rating is assigned, issued, and published.
Rating Promotion Phase
Following rating issuance, a 12-to-24 month Promotional phase is implemented to enhance rating visibility and market penetration. This phase involves systematic dissemination of the BDO Zone rating to the global investment community, including project developers, institutional investors, and industry participants, with the objective of facilitating capital formation and attracting bio-based development investment to the rated jurisdiction.