Crypto Data Firm Releases First Institutional-Grade ESG Ranking for Digital Assets
Crypto data firm CCData has unveiled the first institutional-grade scoring system that evaluates digital assets based on environmental, social, and governance (ESG) factors. The firm’s inaugural ESG Benchmark, created in collaboration with the Crypto Carbon Ratings Institute (CCRI), assessed 40 of the largest and most liquid digital assets, ranking them based on parameters such as decentralization, security, and climate impact.
Key Points:
- Ethereum ranked first in the ESG ranking, with Solana and Cardano following closely behind. Bitcoin lagged due to its heavy energy usage.
- ESG mandates are gaining importance among institutional investors and asset management firms, with ESG-related assets under management predicted to reach $33.9 trillion by 2026.
- CoinDesk’s Consensus conference attendees emphasized the need for the crypto industry to embrace ESG in order to attract institutional money.
- CCData’s ESG Benchmark aims to address the growing demand for ESG-focused investments and improve the industry’s resilience against regulatory and media criticisms.
- The benchmark evaluates digital assets based on metrics such as decentralization, energy consumption, and community engagement to provide an overall score of AA (best) to E (worst).
Hot Take: The release of CCData’s ESG Benchmark highlights the increasing importance of ESG factors in the evaluation of digital assets. Ethereum’s top ranking demonstrates the positive impact of its transition to proof-of-stake technology on energy consumption. As institutional investors continue to prioritize ESG considerations, the crypto industry must adapt and embrace ESG to attract new capital.
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