Mission Statement
Key Principles, Use Cases and Grade Breakdown
CCData, in partnership with CCRI, have created an industry-first, institutionally-focused ESG Benchmark that provides a framework for assessing the ESG risks and opportunities associated with a selection of digital assets. This iteration of the benchmark covers 40 assets over 12 core categories of evaluation:
Fundamentals
Electricity Consumption
Carbon Intensity
Hardware
Transparency (in two sections)
Accessibility & Inclusivity
Community Engagement
Ecosystem Health
Decentralisation
Participation
Security
Our innovative methodology draws on a wide range of qualitative and quantitative metrics, covering all ESG aspects. A grade (AA-E) is assigned to each asset to identify ESG-compliance within the industry.
The three key categories: Environmental, Social and Governance, are divided into subcategories of metrics, each with weightings based on their relative importance - these weightings are decided at CCData and CCRI’s discretion, and may change in future editions of the Benchmark.
Each category includes a range of metrics that can quantitatively or qualitatively measure the ESG compliance of an asset. Metrics are then given points based on their relative importance within that category - again decided at CCData and CCRI’s discretion.
Points are aggregated within each category and are then scaled to the category weighting. Each category score is summed up to reach a total score.
Assets are granted a grade given their final score, ranging from AA-E. The scores required for each grade are outlined on page 10. The scores and grades across all assets are comparable, and the weaker performance of Proof-of-Work coins and centralised assets highlights the relatively poor compatibility with the ESG standards.
We define ‘Top-Tier’ assets as those that attain a grade BB or higher, whereas those attaining a grade B or lower are considered ‘Lower-Tier.’
CCData and CCRI’s ESG Benchmark provides the industry with a robust framework for discerning the top digital assets' ESG exposure and associated ESG risks and opportunities. The ESG Benchmark is a critical first step toward improving the resilience of the industry in the face of ESG challenges from regulators, policymakers and media, who consider ESG requirements a top priority.
LEARN MORE ABOUT OUR ESG DATA SOLUTIONS
WHAT DO THE GRADES MEAN?
The ESG Benchmark ranks digital assets from AA-E. We classify a Top-Tier digital asset as any in the AA-BB bracket and Lower-Tier digital asset as those graded B-E. Digital assets in the Top-Tier meet our minimum threshold for ESG risk.
WHAT THE GRADING IS NOT
This grading does not connote overall superiority, instead it represents a means of ranking digital assets according to ESG parameters.
DISCLAIMER
The ESG Benchmark does not serve as a guide to which digital asset is superior from an investment perspective. The ESG Benchmark does not account for the recent regulatory action taken by the SEC against tokens deemed to be unlicensed securities. The content found in this Report is for informational purposes only, you should not construe any such information or other material as legal, tax, investment, financial, or other advice.
This Report contains the proprietary information of CCData and its partners, including but not limited to CCRI, and others. It is intended to be used internally within your organization and by receiving this information, you agree that except with the prior written permission of CCData and its partners, such information shall not be used for any unauthorized purpose and shall not be published or disclosed by you to third parties, in whole or part.
The information contained in this Report, including all forecasts and projections, are provided to you on an “AS IS” basis for use at your own risk. CCData and its partners will not be responsible for any action you take as a result of this Report or any inaccuracies, inconsistencies, formatting errors, or omissions in this Report. CCData and its partners make no representations or warranties, express or implied, as to the accuracy or completeness of the information contained herein, and will not have any liability to you or any other person resulting from the use of such information by you or any of your representatives.
