In collaboration with the Crypto Carbon Ratings Institute (CCRI), CCData has just published the first ESG Crypto ranking. Here are the details of this evaluation :
ESG assessment of digital assets
As part of this study, CCData evaluated the 40 most important cryptos of the moment. To do this, it is based on criteria:
- environmental,
- social,
- of governance.
This assessment responds to growing demand as ESG-related investments could account for one-fifth of all global investments by 2026. Indeed, the ESG Crypto Benchmark is now seen as an essential step in building the industry in the face of ESG issues and criticism from regulators and policy makers.
Decryption: each crypto must comply with ESG requirements to attract new institutional funds.
Ethereum crowned crypto ESG champion
With an AA rating, Ethereum lands a top spot in the ESG crypto rankings. This remarkable performance is attributed to its recent transition to Proof of Stake (PoS). By ditching energy-intensive mining and switching to PoS, Ethereum has significantly reduced its energy consumption.
This major development has allowed Ethereum to strengthen its position as a enduring leader in the crypto industry.
Bitcoin, pinned for its energy consumption
Unlike Ethereum, Bitcoin has been criticized in the ESG crypto ranking due to:
- its high energy consumption,
- their material needs.
Certainly, Bitcoin accumulates good scores in social and governance aspects. However, he still faces a major challenge: make its network more sustainable and efficient.
In this sense, initiatives are already underway to promote more sustainable solutions. By this we mean:
- the increasing use of renewable energies in the mining process,
- the adoption of a more efficient Proof of Work (PoW) crypto mining protocol.
The ESG ranking compiled by CCData highlights the growing importance of environmental, social and governance aspects in the cryptocurrency industry. It now constitutes a key element for investors and market participants.
Receive a digest of news in the world of cryptocurrencies by subscribing to our new service of daily and weekly so you don’t miss any of the essential Tremplin.io!
