FAQ

Project Canary Frequently Asked Questions

cropped-favicon.png

Project Canary
Frequently Asked Questions

General

Public Benefit Corporations are legally responsible to the “double bottom line,” making us accountable to both working for the public good and protecting shareholder interests. Traditional corporations typically have a singular goal of maximizing shareholder value, which can mean their actions may lead to better dividends, but worsening economic and environmental conditions for the rest of us.

In contrast, Project Canary incorporated itself as a Public Benefit Corporation, making us legally responsible for taking into account the economic, environmental, and societal impacts of every decision we make. Since our focus is on making the world a better place, we make sure we are impartial in everything we do, from gathering and reporting air quality data, to performing our Canary Certifications.

That means the ESG data we collect and provide can be trusted by our partners, their investors, and the public as a whole.

Project Canary generates revenue through recurring ratings fees that are paid independently of the score, through transactional fees from the marketplace, and through other data collection fees such as those associated with our independent continuous monitors.

Our Certifications

A Canary Certification is a broad, robust review of operational excellence, covering topics across Air, Water, Land and Community impact. Our certification process includes a review of policies, plans, execution and onsite verification. It evaluates management systems, preventative controls, surveillance and response aspects. There are 600+ different engineering and operational elements evaluated during the process.

Our rating and certification entails over 600 data points across 24 categories, including 12 categories of continuous monitoring. The Project Canary process includes a site visit to review each location that is certified and may include interviews with company subject matter experts to gain a full understanding of the practices of each organization. We currently offer four levels of certification, including Platinum, Gold, Silver and Rated.

A Canary rating lasts for one year with annual renewals.

Project Canary is the leader for trusted, independent verified environmental data. Our assessments include historical, real-time, and projected measures based on over 150 years of engineering experience. We’ve spent over 5 years building, testing, and refining our systems with significant input from independent stakeholders, including 13 environmental NGOs, regulators, foundations and individuals via our Cooperating Stakeholders Program.

Yes, this is an important part of the overall Project Canary process. We evaluate a number of different components of emissions, and this affects the overall scoring. Additionally, there are specific Verified Attributes related to methane and freshwater which provide verification and quantification of specific methane and freshwater-related aspects of operations.

The Low Methane Verified Attribute and Freshwater Verified Attribute are an extension of the Project Canary Certification that will be completed on these wells at no additional cost.  The Low Methane Verified Attribute highlights an operator’s commitment to reducing methane emissions. Our Freshwater Verified Attribute was developed alongside The Center for Energy Water Sustainability at Colorado State University as a first of its kind certification differentiating performance relative to water use and responsible stewardship.

Natural gas producing sites that have undergone third–party certification to verify that the operator has utilized the highest standards and practices in all phases of their operations and have received Project Canary certification of Gold or Platinum can proudly share their Responsibly Sourced Gas, or, RSG designation (also referred to as Certified Gas). Companies that receive the Low Methane Verified Attribute are also designated as producing Certified Low Emissions Gas.

Continuous Monitoring

We currently have two models of sensors. The Canary S unit is designed to monitor VOC emissions. The Canary X unit is designed specifically for methane emissions. Additional sensors can be included within the devices if desired.

Yes, our dashboard has algorithms for correlating wind and methane data with asset location. This allows operators to pinpoint the leak and/or determine if the leak is coming from their location.

An operator accesses data through our secure data analytics platform.  Our monitoring fee includes access to the platform for 10 user accounts. We can provide additional access for a nominal fee.

Our customers have used their continuous monitoring data for a variety of uses, including prioritizing operational improvements, leak detection, and strengthening investor relations with cautious investors that are starting to account for environmental risk, and regulatory use.

ESG & The Market

Environmental, Social, and Governance (ESG) is a criteria for evaluating a company’s operations. ESG sits alongside financial factors, as another way of evaluating a company’s risks and impact. Investors are beginning to apply ESG mandates to companies across their portfolios, with close to 90% of S&P 500 companies publishing ESG reports.

Project Canary is focused on the “E” in ESG–our certification process includes assessments of how operations impact Air, Water, Land and Community. Our certification gives investors, buyers and others confidence that operations from Canary Certified sites have a known, data-driven understanding of environmental impact and a certification to show continuous annual improvement.

Lenders are increasingly including more restrictive loan covenants that address climate change, and most lenders are looking for an independent body to act as the provider of environmental data to ensure it can be trusted by their LPs and the general public. To ensure continued access to capital, companies need trusted environmental data as good and verifiable as the audited financials they already provide.

Methane is 80X more potent than CO2, making fugitive and planned emissions of natural gas a prime contributor to climate change. Outside of air quality, Oil and Gas operations can have a direct impact on the land we all use, our water quality, and the communities we all live in.

When you buy or sell Project Canary Responsible Gas, you are demonstrating a commitment to responsibly developed energy. The gas production facility was individually rated, certified and inspected by Project Canary in accordance with the Project Canary ratings system, on an annual basis.