Project Canary, a climate tech and environmental assessment company focused on providing trusted third-party ESG data for emission-intensive industries, announced on June 7 that it has expanded its strategic relationship with private equity provider Quantum Energy Partners related to Quantum’s credit and structured capital investment efforts.
Quantum is focused on providing sustainability-linked capital to both public and private energy companies. Both Project Canary and Quantum believe that meaningful synergies exist between Quantum’s sustainability-linked investment initiatives and Project Canary’s emissions monitoring solutions.
Sustainability-linked investments aim to encourage improvements in operators’ sustainability and ESG profiles by incentivizing them to achieve certain sustainability performance targets (SPTs) based on certain key performance indicators (KPIs) including emissions.
- Project Canary enables its customers to improve performance by providing regular, third-party facility-level data regarding certain environmental attributes, such as methane emissions, to continuously monitor and measure environmental exposures.
- Granular emissions information can help operators and investors to differentiate their assets and improve their ESG profiles using up-to-date performance data.
Through ongoing collaboration between Quantum and Project Canary regarding the simultaneous need for private capital and methane emissions monitoring solutions, this strategic arrangement seeks to expand the adoption of facility-level environmental assessments and continuous monitoring of methane emissions for certain stakeholders in the energy value chain.
Methane is a greenhouse gas (GHG) that traps significantly more heat in the atmosphere than carbon dioxide. Having data to measure and reduce methane emissions can have a meaningfully positive impact on operators’ ESG profiles.
"ESG 2.0 is embedded in the measurement economy. High-fidelity, facility-level data that can accurately portray a more holistic environmental profile, including methane and other GHG emissions, is likely to be the new minimum standard," Chris Romer, CEO of Project Canary, said in a statement.
"Quantum's focus on our solutions underscores how capital markets view the need for more granular and real-time data to measure progress over time. Financial markets want a gold standard for measurable and validated ESG data to drive sustainable actions."
Quantum believes demand for private capital among both traditional energy companies, as well as companies involved in energy transition, is growing significantly as the world moves towards decarbonization. Through the active and disciplined deployment of its capital, Quantum seeks to support the promotion of relevant, enduring and sustainable improvements relative to borrowers’ near-term ESG performance and longer-term sustainability initiatives.
"Private capital can play an important role in helping incentivize companies to achieve their ESG goals. We believe there are a broad range of areas where we can seek to influence positive change in the energy sector related to methane emissions, water consumption, natural gas flaring, and utilization of renewable power, among others," said Ajay Khurana, co-president of Quantum. "We believe Project Canary can help provide operators with essential emissions data to measure and validate progress towards achievement of these goals."
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