Insight Conversation: Jason Switzer, Equitable Origin

What is EO100 and what does it measure?

EO100 follows international best practices and measures social impacts (positive and negative) through its 138 targets related to human rights, social impact and community development, against which sites are scored on their performance. Specifically, these targets cover meaningful engagement and consultation with local communities, the pursuit of Free, Prior, and Informed Consent (FPIC) for Indigenous Peoples, community health and safety, and equitable community investment and benefit-sharing.

Social impacts will vary based on the project scope, context, and what communities have identified as priorities, but the EO100 allows for co-development and reporting on social impacts.

Every country has unique social and environmental contexts. How can a certification adapt while maintaining its standards?

The EO Standard for energy projects is intended to be globally applicable. While it sets a high-performance bar, our system accommodates differences in social and environmental contexts. For example, water use standards in dry regions differ from those in regions with abundant freshwater. Similar considerations apply across social and environmental performance.

EO strikes a balance between the global standards it synthesizes, and local law and context as applied in specific projects during the assurance process. Third-party trained experts with deep local competence ensure the certification is rigorously applied, ensuring comparability across different regions.

How does the EO Standard interact or relate with current "tags" or "labels" on renewable energy certificates, such as Green-E, P-REC or EkoEnergy?

EO has always strived for collaboration and recognition with other frameworks.

In the gas sector, we have a well-established joint certification with MiQ, a methane emissions standard that complements the EO100's broad coverage. In renewables, we are in the early stages of becoming a Production Facility Label through the I-TRACK Foundation.

We are also exploring collaboration with other REC labeling organizations, such as Green-E and P-REC, to create added benefits and opportunities.

What trends have you observed regarding market demand for the EO100 certification among energy producers? How do you see this demand evolving?

While ESG faces some headwinds, market demand for the EO100 certification has grown as investors and consumers increasingly prioritize rigorous performance disclosure and project developers seek to differentiate and enhance project economics.

Wind and solar energy producers seek certification to align with global sustainability goals and demonstrate ESG [environmental, social and governance] due diligence to investors and electricity buyers. Communities and indigenous rights-holders seek greater assurance of responsible practices in their backyards, as well as a greater voice and equity stake in projects. Future trends suggest increased interest from emerging markets as renewable energy projects expand globally, rising adoption due to consumer demand for transparency in supply chains, and a growing need for legal due diligence, in which certification can play a role.

Can you provide examples of energy projects that have successfully achieved EO certification and their impact on their operations?

Over 15% of natural gas production in the US and Canada is EO100 Certified, including major companies like Expand Energy and ARC Resources. EO certification enhances stakeholder relations through transparent reporting, improves ESG credibility and increases revenue opportunities as buyers pay premiums for certified products.

Smaller producers also benefit by demonstrating high ESG performance for acquisitions. EO100 certification can improve project economics and showcase environmental and social performance through a REC+ model.

S&P Global Commodity Insights indicates that solar I-RECs may cost as low as $0.24/MWh, while Solar P-Rec prices can be significantly higher. Currently, there are efforts to pilot wind and solar supplements.

What challenges have you faced in promoting the adoption of the EO100 Standard within the energy sector?

We should be honest in saying that project certification is not for all projects.

There is limited but growing awareness of certification and its value for the energy sector. It took several decades for forest sustainability certification to become a requirement for doing business in the timber or palm oil sector. However, awareness is growing that EO100 is a widely credible and well-established system for demonstrating and providing assurance regarding comprehensive sustainability and social performance practices in energy projects.

Another challenge is understanding the complex sustainability challenges surrounding wind and solar energy beyond their carbon benefits. Today's fixation on climate can lead to neglect or discounting the importance of other ESG aspects such as community consent, displacement of people, loss of biodiversity and cultural heritage, and human rights abuses in the supply chain.

There are also cost concerns. For example, smaller companies or projects may view the costs or engagement requirements associated with certification as prohibitive in the absence of a strong market or investor signal.

How do you anticipate the policies of US President Donald Trump's new administration on energy and environmental regulations could affect the adoption and implementation of the EO100 Standard in the energy sector?

In a time where the pendulum is swinging away from regulation, this creates a new demand for market-based solutions like our certification that allow ESG leaders to more credibly signal that they are differentiating themselves from competitors among investors and better to investors, customers and communities.

Looking ahead, what are the future goals for the EO100 Standard, and how do you envision its evolution in response to emerging ESG trends?

Future goals for the EO100 Standard include creating sector-specific guidance for emerging markets and technologies and updating the standard to align with sustainability trends.

Key sectors of interest include data center operators and finance, focusing on transition finance and sustainability impact. Areas of further exploration include offshore wind, powerlines and CCUS [carbon capture, utilization and storage], while addressing supply chain traceability, circular economy practices, biodiversity restoration, Indigenous equity ownership, and scope 3 greenhouse gas emissions management.