Ethereum leads ESG rankings, Bitcoin falls behind due to emissions

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.

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