Xpansiv Publishes Digital Fuels Program to Accelerate ESG Transition in Fuels Sector

NEW YORK, SAN FRANCISCO, SYDNEY – 13 May 2021 — Xpansiv, the global marketplace for Intelligent Commodities™, today published a pioneering Digital Fuels™ Program for the issuance, transaction, settlement, and retirement of evidenced-based environmental, social, and governance (ESG) performance claims associated with fuels.

The program is designed to provide a rules-based market for all stakeholders—from fuel producers and net-zero buyers to certification bodies, carbon-accounting initiatives, registries, independent-assurance providers, data aggregators, and investors—all seeking to meet growing demand for registered, tradable, intangible assets to differentiate fuels based on ESG performance.

The framework incorporates established principles for environmental and energy markets, sustainability standards, and GHG accounting by outlining an auditable process by which data is refined into an immutable, digital record of the underlying physical fuel. This digital record serves as a reference for registered, transactable ESG product claims associated with the underlying physical asset. The approach is broadly extensible, inclusive of natural gas, crude oil, aviation fuels, bio-based fuels, and hydrogen.

Two areas of focus for the Digital Fuels Program are: 1) a rigorous, minimum threshold for ESG-asset integrity, enabling emerging markets to move forward quickly and collectively to integrate and value ESG performance within the global commodity complex; and 2) Proof of State™, whereby production data and related activities are encrypted and subject to independent validation.

To further ensure market integrity and collaboration, the program stipulates the creation of a Market Stakeholder Committee, led by an Independent Secretariat.

Coinciding with the program’s publication, Xpansiv added S&P Global Platts to the growing list of partnering stakeholders advancing ESG in fuel. “Transparency around an agreed set of standards allows all market participants to evaluate and differentiate energy fuels on the basis of their ESG attributes,” said Jonty Rushforth, Senior Director for Markets Group and Energy Transition, S&P Global Platts. “This evidence-based proof of provenance enables participants to make informed decisions on the clear path to net-zero.”

The Pollination Law Group team, led by partners Rick Saines and Marisa Martin, were instrumental in the program design and launch. “Having been associated with these markets for many years, I believe this is a profound development,” Saines said. “We’re excited to be part of it.”

The Digital Fuels Program leverages Xpansiv’s unique experience integrating environmental registries housing billions of dollars in ESG assets, portfolio management of those assets, and the operation of spot markets in voluntary carbon, renewable energy, and water—as well as the company’s experience translating fuels data into registered assets.

“Beyond voluntary carbon and renewable energy markets, the next step on the path to a low-carbon future relates to ESG performance in the fuels sector, beginning with GHG intensity,” said Cameron Prell, Head of Policy and Legal at Xpansiv. “The Digital Fuels Program is designed to support and accelerate this trend. Our intention is to do the heavy lifting to clear the way for market participants with the understanding that the program will evolve over time.”

About Xpansiv

Xpansiv is the global market for ESG-inclusive commodities. These Intelligent Commodities bring transparency and liquidity to markets, empowering participants to value energy, carbon, and water to meet the challenges of an information-rich, resource-constrained world. The company’s main business units include CBL, the leading spot exchange for ESG commodities, including carbon, renewable energy certificates, and Digital Natural Gas™; H2OX, the leading spot exchange for water in Australia; and XSignals, which provides end-of-day and historical market data. Xpansiv is the digital nexus where ESG and price signals merge. Xpansiv.com

US Contact: Rob Dalton, Xpansiv VP Communications – rdalton@xpansiv.com

AU Contact: Michael Mullane, Xpansiv PR Contact – michael.mullane@edelman.com