Five steps to ESG certification

Certified natural gas initiatives gained attention as operators and buyers looked for third-party ways to demonstrate environmental performance. Programs differ in what they assess and what evidence they require. The five steps below cover the work of preparing a natural gas product for certification and, where the program allows, for sale under that claim.

What is ESG certification?

Natural gas certification allows operators to demonstrate that specified operations, production volumes, or environmental attributes meet the requirements of a particular standard. What is evaluated depends on the program. Some focus on methane emissions performance. Others assess broader environmental and social practices. Certification does not automatically prove that every molecule delivered to a buyer came from certified production, especially when gas from multiple sources is commingled.

Certification, independent assessment, and registry tracking serve different purposes. A certification program defines the standard. An independent assessor evaluates evidence against that standard. A registry, when used, records certificates or attributes under its own rules for issuance, transfer, and retirement. Independent assessment supports confidence in the evidence; it does not guarantee every figure is correct.

In 2021, several operators publicly announced certified or responsibly sourced gas initiatives. For example, ExxonMobil announced plans to certify natural gas for methane performance under the MiQ framework, which involves independent assessment against MiQ’s standard. Vermilion announced EO100™ certification through Equitable Origin, which covers environmental and social performance criteria beyond emissions alone. Another historical example is the Pacific Canbriam-Ènergir deal, which used the Xpansiv Digital Fuels Registry™ alongside EO100™ certification.

Embracing transparency and third-party validation

Some certified natural gas programs use third-party registries to maintain records of eligible attributes, certificates, transfers, and retirement. These records can help buyers and sellers substantiate claims and reduce the risk of double counting, depending on the program’s rules.

For a related distinction between corporate emissions accounting and operational emissions management, see carbon accounting vs emissions management.

Step 1: Determine participation and define success

The first step is the most important step as it clarifies what your company desires out of its certification program. By figuring out how you want to participate and what success looks like, you can narrow your scope and focus on where certification can make the biggest impact. The biggest questions you need to ask are:

• Do I want to participate in an ESG-related trade?
• Do I want a qualitative or quantitative approach?
• Do I want to have public validation that I am making ESG progress?

Through these questions, you can identify the path forward for your certification program to quickly reach its goals.

Step 2: Define your differentiated product profile

Decide what claim you want the product to support and which assets can back it. Natural gas can be differentiated through certified production practices, documented emissions performance, or environmental attributes associated with eligible production. Depending on the program, those characteristics may appear in certification records or in tradable certificates. Certificates and a differentiated physical product can be commercially related, but they are not the same thing.

• What claim do I want to make, and which attributes support it?
• Which assets or production volumes are in scope?
• How will the claim be assessed, including any independent assessment required by the program?

A clear product profile comes before market conversations.

Step 3: Assess your data and existing practices

With goals and product scope set, check whether existing data and practices can support the standard you want to pursue.

• What emissions, production, and equipment data do I already have?
• What policies and operating practices are already documented?
• What calculations and source systems does the standard require?
• Can I trace reported emissions and production figures back to source records, calculations, and reporting periods?

The answers become the roadmap for gap-filling in Step 4.

Step 4: Fill in the data and policy gaps

Once you’ve identified the gaps, determine what needs to be corrected before assessment. That could mean collecting missing operating records, updating calculation methods, documenting procedures, or resolving inconsistencies between source systems.

• What gaps do I have in my data?
• What policies or procedures are missing?
• How will I get the missing records or resolve the inconsistencies?

Step 5: Execution

Once the requirements and data gaps are understood, the operator can begin preparing the evidence needed for certification. This may involve consolidating source records, completing calculations, addressing outstanding gaps, and coordinating an independent assessment.

• Bring source records into one working set for the assessment period.
• Complete the calculations required by the standard.
• Complete the certification process with the program and any required independent assessment.
• If applicable, prepare for certificate registration or transactions under the program’s rules.

Once certification is complete, operators can market the claim only to the extent the program, certificate ownership, and contracts allow.

Certification is only part of the process. If volumes move through shared infrastructure, operators may still need records for allocation, transfer, and claims against eligible attributes.

Frequently asked questions

What data is needed for natural gas certification?

Requirements vary by certification program. Methane-focused standards may require emissions measurements or estimates, production volumes, equipment inventories, and documented calculation methods. Broader standards may also examine environmental policies, operational practices, and social impacts. Operators need to show where the information came from, how emissions figures were calculated, and whether the evidence meets the selected standard’s requirements.

How is certified natural gas tracked after certification?

Depending on the program, certified production may be associated with certificates or other records that document eligible volumes and environmental attributes. Those records may document certificate issuance, ownership, transfers, and retirement, providing evidence to support permitted claims. Because natural gas is often mixed in pipelines, tracking a certificate or attribute does not necessarily mean tracing the physical gas delivered to a buyer. For MiQ, the grade and the retirement record support the attribute claim. The supply contract covers the gas.

Is natural gas certification the same as emissions reporting?

No. Certification assesses whether specified operations, products, or attributes meet a standard’s requirements. Emissions reporting involves quantifying and communicating emissions under a defined reporting framework. Both may use the same underlying measurements and calculations, but certification can involve additional assessment and verification requirements. Learn more about voluntary emissions reporting.

Where Validere fits

Validere helps operators bring emissions and operational data together, standardize calculations, and maintain supporting records for emissions reporting and verification.

Certification decisions and independent assessments remain with the relevant program participants and certification bodies. Learn more about voluntary emissions reporting.