Sempra's Invisible Aliso Canyon Methane Disaster

Blowout at SoCal, a subsidiary of Sempra Energy (SRE, a Fortune 500 company)
October 2015 - February 2016

When little or no transparency on underlying risk, stock price MOVEMENT IS LIMITED – OR DELAYED

CLIMATE impact GREATER THAN DEEPWATER HORIZON

 Invisible methane plume from Aliso Canyon Disaster (2016) detected from space with infrared spectrometer – but image not published until later. Photo:  NASA Earth Observatory

Invisible methane plume from Aliso Canyon Disaster (2016) detected from space with infrared spectrometer – but image not published until later. Photo: NASA Earth Observatory

  • 100,000 tons of methane – 2nd largest leak in US history
  • Impact on climate equivalent of annual emissions of half a million cars

  • Far bigger warming effect than 2010 BP Deepwater Horizon disaster in Gulf of Mexico

Revealing true impacts of catastrophic environmental events such as Aliso Canyon could make the connection between disasters and financial risk from lawsuits or reputation loss much stronger and more immediate, even when direct financial losses to the company may be negligible.

Source: Journal of Environmental Investing (September 2017) by Geofinancial Analytics team members