According to crypto data firm CCData’s research, Ethereum topped the first institutional-grade crypto ESG ranking, followed by Solana and Cardano, while Bitcoin lagged due to its heavy energy usage. CCData’s inaugural ESG Benchmark, created in unison with the Crypto Carbon Ratings Institute (CCRI), evaluated 40 of the largest, most liquid digital assets assessing parameters such as decentralization, security and climate impact.
As ESG-related assets under management could reach 33.9 trillion by 2026, according to global accounting firm PricewaterhouseCoopers (PwC), CCData created the new crypto-focused scoring framework to cater to this increased demand. The ESG Benchmark measured environmental, social and governance risks for and opportunities of digital assets, taking into account a range of metrics including decentralization, energy consumption, and community engagement.
Ethereum was the only blockchain that earned an AA grade, performing well in all three ESG factors. This is partly attributed to the network’s recent transition to proof-of-stake technology, which slashed energy consumption and made miners obsolete. Solana, Cardano and Polkadot also excelled in decentralization, granting them a top-tier A grade. Bitcoin received a B grade, earning high scores in social and governance aspects but slammed for its heavy energy usage and hardware need.
This grading does not connote overall superiority, instead it represents a means of ranking digital assets according to ESG parameters, the report said. It equips investors with the tools needed to make informed decisions and allocate resources to assets which hold strong ESG scores.