New report highlights clear investment risk from methane emissions, with the help of former ENRP student

Rising Risk Report cover
ENRP alum Carlos Villacis co-authored the EDF report on methane risks in the wake of Aliso Canyon news
January 12, 2016
 
In this investor focused report, Carlos Villacis and Sean Wright looked at the state of disclosure among 65 of the largest oil and gas companies in the U.S. Their findings were that most companies are not reporting on methane through investor focused platforms, with less than 1/3 of companies reporting methane emissions, and 0 companies reporting reduction targets. This is despite methane being a GHG 84 times stronger than CO2 over a 20 year period, and representing a saleable product, which is not reaching the market. This exposes investors in the industry to economic and reputational risks, as well as regulatory risks, with investors unaware of how companies will be positioned for upcoming regulations from the EPA and BLM. These risks have recently been further exposed through the large leak occurring in Aliso Canyon (which is not discussed in the report itself).  The report concludes by offering 4 methane metrics, which investors are recommended, to encourage companies and platforms to adopt, in order to increase standardization, and through the reporting of better data, foster a better dialogue between stakeholders in addressing the issue.
 
The full report and analysis can be found at edf.org/risingriskThis report has been written about in outlets such as BloombergReutersThe Hill, and Inside Climate News.
 
Carlos Villacis graduated from ENRP in 2016 and was able to complete this report during his time as an intern for the Environmental Defense Fund.