Uncover new opportunities for alpha generation and risk avoidance

Methane leakage by company – updated daily.  MethaneScan®  detects major leak  at Acme Petroleum wellhead in this hypothetical example.

Methane leakage by company – updated daily. MethaneScan® detects major leak at Acme Petroleum wellhead in this hypothetical example.

methanescan® Detects unexposed ESG risks

  • Be alerted to material risks prior to news on Bloomberg, Reuters etc.

  • Quant Lab reveals insights – alignments with factor models; linkages to financial risks and returns; hidden alpha factors

  • Pathway to leadership for oil & gas producers – benchmark performance versus peers; gain competitive advantage by responding proactively to safety, reputation and political risks

Why methane is key


Methane – the primary component of natural gas – is a potent greenhouse gas. A powerful heat trapper, methane produces 86 times the warming power of carbon dioxide during its first 20 years in the atmosphere. This is why fugitive methane emissions are extremely deleterious to climate stability.  

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Onus falls chiefly on oil & gas industry

Unfortunately, methane levels have shot up in the past decade. Keeping methane in check is critical to staving off the worst effects of climate change. In the U.S., the onus chiefly falls on the oil and gas industry as the #1 source of methane emissions.

New York Times – The Natural Gas Industry Has a Leak Problem
Financial Times – Gas leaks worse for climate than thought

Applications for investment professionals

News of corporate governance lapses can    jolt markets   .

News of corporate governance lapses can jolt markets.

Methane leaks may be a key indicator of wasteful, inefficient energy businesses with poor governance. Super emitters, in particular, are likely to have above average exposure to governance lapses, legal liability, and accidents – as well as reputation and political risk. Therefore, the highest emitting companies may be candidates for short positions (or under-weighting) by traders and investors versus cleaner operating peers and alternatives.

Hedge fund managers, asset managers and the sell side can use MethaneScan® in several different ways, including:


Alpha Generation



Hedge Fund Managers – Long-Short strategies and opportunistic event-driven trades in global energy sector

Asset Managers – Better decisions about which companies/sectors to over- or under-weight based on verified actual risks

Sell Side – Deliver more fully informed guidance to clients investing with ESG considerations



Asset Managers – Drive changes in governance and practices at companies via shareholder resolutions and proxy votes


Analogous to bond ratings

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  • Trusted independent source

  • Delivers transparency for better investment decisions

  • Normalized scores for peer-to-peer comparisons by sector

unlike bond ratings

  • Scientific observations – not subjective judgements

  • Focus on largest climate stressors – energy and food

  • Applicable to equities as well as bonds