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EO stands for:

Certified responsible oil production.

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What is Equitable Origin? Equitable Origin is an innovative stakeholder-based voluntary certification system designed to promote higher social and environmental standards, greater transparency, and more accountability in oil and gas exploration and production. Equitable Origin delivers a market mechanism for positive change that reduces the social and environmental impact of oil and gas operations, creates a new market for responsibly produced fuels and petroleumderived products, and empowers consumers and businesses to reward energy companies that achieve certification.

Equitable Origin gives consumers who care about the impact of their purchases a choice for the first time to buy from companies that responsibly produce and source fuels, plastics and materials made from oil and gas.

Equitable Origin offers visionary energy companies an independent, third-party verification of their social and environmental responsibility, thereby allowing them to realize the added financial and brand value, easier access to financing and social license to operate associated with certification.

Since January 2009, Equitable Origin has spearheaded a multi-stakeholder effort that brings together oil and gas companies, governments, local and indigenous communities, academics and environmental and social NGOs, to create a rating system for social and environmental responsibility in oil and gas exploration and production. Negotiated by stakeholders, the EO100 Standard supersedes, consolidates, and ensures alignment with existing standards and regulations. Alignment with the EO100 Standard brings greater transparency and credibility to corporate responsibility activities, as a result of Equitable Origin’s strong standards and independent, thirdparty verification of best practices.

Equitable Origin helps companies that utilize oil and gas in the transport or manufacture of their products to address the broader ethical and environmental impacts of their raw material supply chain, procurement and transport. These champions recognize an opportunity to differentiate themselves by selling EO Certified Products while pioneering a new frontier in sustainability, further reducing their carbon footprint, and protecting biodiversity and local and indigenous cultures.

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While we transition to new sources of energy, we need to responsibly manage the way our current primary energy sources are produced – to prevent the deforestation, loss of biodiversity and impacts on communities and human health which can occur.

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Obtaining EO Certification sends a clear signal to consumers, NGOs, governments, local and indigenous c o m m u n i t i e s and multi-lateral financing institutions that a company operates under the highest levels of social and environmental responsibility. 4

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EO stands for:

Thriving local communities and the rights of indigenous peoples.

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Why is it Needed? Eighty-six million barrels of oil are produced each day and while standards and regulations exist, there is no uniformity or clear pathway through a maze of overlapping national and international standards. Oil and gas companies that take extra precautions are not rewarded, regulations and standards change; and local regulations may not adequately protect social and environmental resources. The social “license to operate� of some oil and gas companies is at risk, and lawsuits filed after the fact are slow, expensive, and non-preventive. At the same time, consumers and businesses have no independently verified basis for purchasing from oil and gas companies that have more environmentally and socially responsible oil and gas exploration and production methods. Oil and gas are ubiquitous in our lives and in our economy, yet the unintended consequences of oil and gas exploration and production can sometimes be quite serious. Whether one believes that oil is the lifeblood of our modern society, or that we need to transition to more sustainable forms of energy, it is clear that global society will be using oil and gas for decades to come.

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The Opportunity Responsible Oil and Gas Exploration and production Equitable Origin provides oil and gas companies with an independent third-party verification of their corporate social responsibility claims. As an umbrella system for industry recommendations and guidelines, EO Certification serves as a “one-stop shop� for oil and gas operators seeking to independently verify their sustainability performance, preservation of the environment and the protection of workers’ and human rights. Obtaining EO Certification sends a clear signal to consumers, NGOs, governments, local and indigenous communities and multi-lateral financing institutions that a company operates under the highest levels of social and environmental responsibility. The enhanced brand value resulting from EO Certification helps a company increase long-term shareholder value, gain easier access to financing and build greater loyalty and trust amongst its stakeholders. Operations are streamlined to reduce waste and re-work, increase employee motivation, participation and productivity and minimize operational, legal and reputational risk. Lastly, EO Certification facilitates the acquisition of a social license to operate, which in areas of socially and environmentally sensitive oil and gas development is essential to mitigating social unrest, ensuring against halts in production and assisting in the attainment of permits and concessions.

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As an umbrella system for industry recommendations and guidelines, EO Certification serves as a “one-stop shop� for oil and gas operators seeking to independently verify their sustainability performance, preservation of the environment and the protection of workers’ and human rights.

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The Marketplace EO Certified Oil and Gas Voluntary certification creates an economic mechanism by which companies can be rewarded by selling certified oil and gas at a slight premium to consumers, governments, educational institutions and communities who are concerned about the environmental and social repercussions of oil and gas exploration and production. Following the certification trends in other industries, the EO100 Standard will create a marketplace for oil, gas, and derivative products that support responsible production processes.

EO certification gives companies an opportunity to show their commitment to safer and more responsible oil and gas exploration and production. The EO mark will be a readily identifiable seal of approval for the support of responsibly produced oil and gas just as Fair Trade Certification has become for socially conscious chocolate and coffee. Thus obtaining certification will enable oil and gas producers and manufacturers to differentiate their commoditized products and insert themselves in the booming ethical consumerism market.

In the forestry sector, the Forest Stewardship Council has certified that the management of nearly 15% of the world’s working forests now meet its standards, with resulting FSC Certified Products sales totaling $20 billion worldwide.

For the first time, consumers will have a choice to support exploration and production of oil and gas under the highest social and environmental conditions. Consumers are increasingly demonstrating their willingness to pay a premium for greener, fairer and more sustainable products as evidenced by the rapidly growing ethical consumerism market. We are confident that consumers will do the same with EO Certified products.

In the seafood arena, the Marine Stewardship Council has certified more than 150 fisheries worldwide, covering 7% of the global annual harvest with MSC Certified Products totaling $1.5 billion worldwide. Global Fair Trade sales for more than 20 agricultural products exceed $5 billion annually and have shown annual double digit growth over the past decade. Equitable Origin LLC

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EO stands for:

Accountability.

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How does certification work? An oil and gas production site will be scored by a third party auditor for its compliance with the EO100 Standard’s specific performance targets. The site score will be converted into a percentage of production and a corresponding number of certificates, each representing one barrel of certified oil. For example, if a site scores 50 points out of 100, then 50% of the well’s production is eligible for certificates at one certificate per barrel. If the site produces 10,000 barrels per day, the producer will earn 5,000 certificates per day. Certificates will then be traded on a global electronic exchange where manufacturers, retailers and transportation companies, consumers, local and state governments and educational institutions can purchase them.

on oil and gas-derived products. The quantity of products that can be labeled is equivalent to the amount of oil or gas used in the manufacture of the products. Thus labeled products can include anything made from oil and gas or its derivatives - from transportation fuels to plastics, or synthetic materials. The logo signals to consumers that an amount of oil and gas, equivalent to the amount of oil and gas in the product, was produced with careful attention to social and environmental conditions. In collaboration with Mission Markets, Equitable Origin has developed a web based trading platform for the exchange of EO Certificates. Through this partnership, EO Certificates join existing environmental credit markets and can be bought and sold through one consolidated exchange.

A certificate is required (along with a small licensing fee) to place the EO Certified logo

What is the EO100 Standard? The EO100 Standard consists of a framework of six principles that address governance, social and environmental issues around oil and gas production. There are several provisions for each principle and specific performance targets for each provision.

would show greater environmental and social performance than a certified operation of 20 in Ecuador, and thus the higher scoring operation would be rewarded with more certificates.

The specific performance targets for each provision produce a score that rewards continual improvement and differentiates operations. In contrast, under Fair Trade Certification, there is no distinction between a certified rose from Ecuador and a certified rose from Colombia. However, under the EO Standard, a certified operation with a score of 25 in Colombia

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The EO System EO System 1

EO100 STANDARD

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EO100 STANDARD PRINCIPLES Corporate Governance, Accountability & Ethics

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Human Rights, Social Impact & Community Development

Fair Labor & Working Conditions

Indigenous Peoples’ Rights

Climate Change, Biodiversity & Environment

Project Life Cycle Management

EVALUATION & CERTIFICATION

50 100

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EO EXCHANGE

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EO CERTIFIED OIL PRODUCTS

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CONSUMER CHOICE

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The EO100 Standard Scoring The EO100 Standard is made up of Principles, Provisions Standard Scoring andEO100 Performance Targets. These are evaluated by a thirdparty auiditor to produce a site score. The EO100 Standard is made up of Principles, Provisions and Performance Targets. These are evaluated by a third-party auditor to produce a site score.

Scoring Process

Example E O PR I N CI PL E 4:

EO Principles

Climate, Biodiversity & Environment The Operator minimizes negative impacts and maximizes positive impacts on the biophysical environment and people living in that environment to maintain or enhance the integrity of ecosystems, plant and animal biodiversity, and other conservation values.

PR OV I S I ON 5. 6:

Provisions

Water The quality and quantity of groundwater and surface water in affected terrestrial and marine areas shall be unchanged or improved by the Operator’s activities to meet or exceed international standards and social, cultural, economic and environmental needs. PE R F O R MA N C E T AR G ET 1

Performance Targets

An environmental flow assessment (EFA) has been completed to define environmental flow requirements using an appropriate methodology that involves input from key stakeholders on desired ecological outcomes.

Yes

No

PE R F O R MA N C E T AR G ET 2

Environmental flow requirements and desired ecological outcomes are met consistently and reported publicly; stakeholders have the opportunity to contribute to monitoring and verify the company’s compliance and performance.

Operator’s EO Score

Yes

No

(Evaluated by a third party auditor) PE R F O R MA N C E T AR G ET 3

Maintenance of environmental flows is built into closure planning; post-closure flows will be maintained without the need for ongoing or intermittent human intervention.

Yes

No

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The EO Certificate One EO Certificate entitles a purchaser to place an EO Certified logo on and/or make a claim to the refined products below. The quantity of products per certificate reflects a rounded five year average of the US refinery yield and corresponds to 42 gallons per barrel. The other includes lubricants, wax, kerosene, asphalt and road EOcategory Certificate oil, still gas, and other miscellaneous products. The corresponding conversion tableentitles is currently buyers One EO Certificate a purchaser tobeing place annegotiated EO Certified logo among on and/or make a claim and to the refined products below.sellers The quantity products per certificate reflects a rounded five year ofofEO Certificates. average of the US refinery yield and corresponds to 42 gallons per barrel. The other category includes lubricants, wax, kerosene, asphalt and road oil, still gas, and other miscellaneous products. The corresponding conversion table is currently being negotiated among buyers and sellers of EO Certificates.

EO Certificate

4% Heavy Fuel Oil 5% Petroleum Coke

Petrochemical Feedstock 2.5% Liquid Petroleum Gas 4% Processing Gain 6.5%

9% Other Distillates Jet Fuel 9% 27% Diesel and Heating Oil

Motor Gasoline 46%

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The EO Standard Principles EO100 Standard Principles 1

Governance, Accountability & Ethics The Operator carries out oil and gas exploration and production activities in compliance with all applicable laws, regulations and administrative requirements of the country in which the operations take place. Operations activities are compliant with the aims of listed international treaties and conventions to which the country is a signatory, as well as to voluntary standards considered the norm. Activities such as corruption, bribery, money laundering and/or financing of terrorism are prohibited. In addition, firms carry out and accurately disclose all social and environmental activities and performance in accordance with internationally recognized standards.

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Human Rights, Social Impacts & Development Operators identify and prioritize communities potentially affected by the project and act proactively to protect and promote their rights, to ensure meaningful participation, and to identify, understand and respond to communities’ concerns. Operators are accountable to report and communicate with stakeholders on project-related decisions, practices and performance. Oil and gas exploration and production enhances the long-term social, cultural and economic well-being of local communities. The rights of workers - including contractors and subcontractors, and full and part time laborers - are recognized and respected in accordance with listed international treaties and agreements.

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Fair Labor & Working Conditions The rights of workers are recognized and respected in accordance with ILO Core Standards* as well as Part IV of the ILO Convention 155, The Occupational Safety and Health Convention (1981). The term ‘workers’ includes direct employees whether full or part time, as well as workers provided by, or working for, contractors and subcontractors. *ILO Conventions numbers 29, 87, 98, 100, 105, 111, 138 and 182 are “Core Standards” covered by the 1998 ILO Declaration on Fundamental Principles and Rights at Work and its follow up.

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Indigenous Peoples’ Rights Operators respect and recognize the rights of Indigenous Peoples as determined in the United Nations Declaration on the Rights of Indigenous Peoples, ILO Convention 169 on Indigenous and Tribal Peoples, and the rights of Indigenous Peoples established by the Constitution of the country of operation. Oil and gas exploration and production activities are carried out in ways that recognize, respect and address the specific rights, traditions and cultural implications for affected Indigenous Peoples.

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Climate, Biodiversity & Environment The Operator minimizes negative impacts and maximizes positive impacts on the biophysical environment and the people living in that environment. Operations maintain or enhance the integrity of ecosystems, plant and animal biodiversity, and other conservation values. The Operator minimizes use of ozone-depleting substances and generation of greenhouse gases.

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Life Cycle Management Oil and gas exploration and production activities are carried out using effective management systems that respect local, national and international laws and standards. These management systems incorporate institutional and operational frameworks that require responsible and sustainable approaches to resource use. The Operator incorporates strategic and long-term environmental and social planning for all phases of the project, from early exploration to closure and reclamation.

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Balanced representation of civil society and industry is incorporated into the standard-making process, including community stakeholders, academics, social and environmental NGOs, as well as representatives of oil and gas industry operators and service providers.

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How was the EO100 Standard developed? Equitable Origin engaged in a stakeholder-based process to develop the EO100 Standard, using the ISEAL (International Social and Environmental Accreditation and Labeling Alliance) Code of Good Practice for Setting Social and Environmental Standards as a roadmap for the process. ISEAL’s roadmap of consultation processes is a global reference for social and environmental standard-setting. Balanced representation of civil society and industry is incorporated into the standard-making process, including community stakeholders, academics, social and environmental NGOs, as well as representatives of oil and gas industry operators and service providers. Accreditation and certification is outsourced to credible third-party auditors. Assessment, monitoring, and auditing at EO Certified production sites will comply with the highest standards of the compliance assessment industry.

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How is the EO100 Standard different from other standards? Many recommendations and guidelines exist in the oil and gas industry, however, the industry lacks a comprehensive, rigorously developed and stakeholder negotiated standard that independently verifies an operator’s social and environmental performance and enables the monetization of an operator’s best practices. Developed through an unprecedented collaboration between oil and gas producers, indigenous and local communities, socially and environmentally focused NGOs, academics and national governmental agencies, the EO100 Standard is comprised of numerous auditable provisions that span the life cycle of an oil and gas operation. These provisions cover everything from transparency in contract negotiation to environmentally and socially sound remediation and closure.

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As an umbrella system, the EO100 Standard, encompasses and builds upon existing industry recommendations for best practices including the Energy and Biodiversity Initiative, International Association of Oil & Gas Producers (OGP), the International Financing Corporation (IFC) Performance Standards, the United Nations Declaration on the Rights of Indigenous Peoples, Society of Petroleum Engineers (SPE), the International Petroleum Industry Environmental Conservation Association (IPIECA), American Petroleum Institute (API), AA1000 Accountability Principles Standards, the Global Reporting Initiative (GRI), the Extractive Industries Transparency Initiative (EITI), the World Bank’s International Finance Corporation Performance Standards and ILO conventions 29, 87, 100, 105, 111, 139, 155, 169 and 182.

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Who is behind Equitable Origin? Equitable Origin is a stakeholder-based, for-profit social enterprise. Our Board of Directors includes individuals representing our diverse nonshareholder stakeholders, such as the environment and local and indigenous communities. Our stakeholder-based Board of Directors guarantees that our brand embodies transparent, rigorous and credible standards which represent industry best practices. The stakeholderbased Board of Directors is comprised of: Three members from industry, including oil & gas companies and manufacturers and retailers of petrochemical-based products

cerned and informed about the oil and gas industry Three independent board members with business, finance and/or academic expertise in this field The presiding Chief Executive Officer The by-laws of Equitable Origin require that the Board of Directors approve, with a “supermajority,� all issues regarding the EO100 Standard. This super-majority requires that a majority of stakeholder groups approve designated critical motions, so that each group will be confident that it cannot be denied representation through a simple majority of the board.

Three members representing NGOs con-

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What are the benefits of the EO System? Equitable Origin is an innovative, stakeholder-based social enterprise that seeks to accomplish the following goals: Provide energy companies with a comprehensive system to exceed global environmental and social standards in oil and gas exploration and production with an umbrella certification that verifies their sustainability performance, reduces their operational risks and costs and competitively differentiates them to realize the added financial and brand value associated with certification. Take companies who utilize oil and gas in the transport or manufacture of their products into the next frontier of sustainability, beyond efficiency and narrowly scoped carbon footprint initiatives. Equitable Origin enables progressive leaders to address the systemic ethical and environmental impacts of their raw material supply chain, procurement and transport – by protecting biodiversity and local and indigenous peoples and reducing the carbon and GHG impacts of their oil and gas consumption Give consumers

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an opportunity to choose producers that support the world’s most transparent and credible standards for environmentally and socially responsible oil and gas exploration and production. Provide nonprofit organizations, and financial institutions with a rigorous standard to evaluate investments in relation to social and environmental performance. Provide governments with a market-based solution to close the gaps in international, national and local regulations, and give them a blueprint for crafting strong national standards. Support local and indigenous communities by empowering traditionally underrepresented groups to have an assurance that the extraction process will protect them and their ability to subsist on their lands. Preserve and protect the environment, biodiversity and people where oil and gas are produced.

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EO stands for:

Transparency.

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EO stands for:

Environmental conservation and the protection of biodiversity.

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Why get certified? The EO100 Standard represents the only global system for improving the social and environmental conditions of oil and gas exploration and production through financial incentives. Oil and gas producers gain a clear roadmap for performing at the highest level of environmental and social responsibility, verify their sustainability performance and gain a social license to operate. They also enjoy an increased rate of securing permits, concessions & financing, reduced cost of liability insurance and a price premium on their products. Operations are streamlined to reduce waste and re-work, increase employee motivation, participation and productivity and minimize operational, legal and reputational risk.

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Why buy certificates? Purchasing EO certificates provides companies with access to the rapidly growing ethical consumerism market and an improvement of brand value that this brings. Leadership companies have an opportunity to gain brand loyalty with progressive consumers by making a commitment to protecting biodiversity and local and indigenous peoples, and to reducing the extended greenhouse gas impacts of their oil and gas consumption that occur through deforestation under standard practices. EO Certificates represent the tangible social and environmental benefits of certification, in the same way that Renewable Energy Certificates (RECs) represent the environmental attributes of electricity produced by renewable energy sources. Purchasing EO Certificates supports local communities where oil and gas are produced, helps to preserve the environment and promote sustainable development around production sites. Moreover, certificate purchasers become part of a global movement that brings world class social and environmental practices into the normal activities of business.

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Our partners Walsh Environmental Standard Development The Dragonfly Initiative Standard Development Ecuador’s Ministry of Non-Renewable Natural Resources Government Coordinating Organization of Indigenous Communities of the Amazon Basin (COICA) NGO Confederation of Indigenous Communities in the Ecuadorean Amazon Basin (CONFENIAE) NGO Mision Markets Environmental Credits Market

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EO stands for:

A sustainable future.

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What do you stand for?

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EO Brochure Overview (test)  

Brochure overview test