Investing.com | Editor Ambhini Aishwarya
Published Nov 17, 2023 12:35AM ET
Ethereum has emerged as the top scorer in the latest environmental, social, and governance (ESG) rankings among cryptocurrencies, according to a recent evaluation by CCData and the Crypto Carbon Ratings Institute (CCRI). With a score of 78, Ethereum outshined its peers on Thursday, underscoring its strengths across key ESG parameters.
The assessment, which included 40 digital assets, revealed that other prominent cryptocurrencies like Solana, Polkadot, and Binance Coin also performed notably well, each securing an "AA" grade. This recognition is a testament to their effective management of ESG-related risks and their potential to provide sustainable returns.
In contrast, Bitcoin, the most widely known cryptocurrency, was placed at the 26th position in the ranking. Its notably lower standing is primarily due to an environmental score of just 7. The leading digital currency has been frequently criticized for its substantial energy demands that contribute to higher greenhouse gas emissions.
The ESG rankings are increasingly influential as they reflect a growing trend in both investor preference and regulatory focus. Investors are more frequently integrating ESG factors into their decision-making processes, looking for opportunities that align with broader sustainability goals. Similarly, regulatory bodies are placing greater emphasis on these factors within their frameworks.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.
Written By: Investing.com
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.