Methodology and Rankings

Methodology Updates, Grading and 'Top-Tier' Classification

METHODOLOGY RANKING AND GRADING

Category	Environmental	Social	Governance	Total Points
Points	33.33	33.33	33.33	100

Grades	AA	A	BB	B	C	D	E
Points	>70	65-70	60-65	55-60	50-55	45-50	<45

Scores from each category are aggregated to form a total cumulative score. The maximum score is 100.

We ensure equal weighting to Environmental, Social, and Governance (ESG) aspects. This is often overlooked in the industry but is essential for fostering more comprehensive and responsible investment decisions.

Top-Tier Assets are required to maintain a minimum score of 60, corresponding with a BB score, whilst Lower-Tier Assets are those that score below this threshold.

Methodological updates are introduced at a 6 month frequency, with quarterly reviews taking place. CCData and CCRI remain conservative with new additions and updates, but improvements to the methodology are made if highly material, or aligns with the evolving ESG landscape within both TradFi and Digital Assets.

SUB-SECTION UPDATES:

Ecosystem Health added to Social
Security moved from Social to Governance

NEW ASSETS:

Ethereum Classic

NEW METRICS:

Social:

Developer Grants

Governance:

Team transparency
Governance discussion platform

TOP TIER ESG ASSETS

CCData has established the notion of Top-Tier volume whereby investors can segment the current universe into higher and lower volumes, based on ESG rankings.

We currently define Top-Tier volume as volume derived from assets scoring a BB and above.

Top-Tier Assets represented 21.1% (compared to 18.4% in July 2023) of total average daily trading volumes of the 40 assets, dominated by AA-Graded Assets (Ethereum).

Top-Tier Assets are required to maintain a minimum score of 60, corresponding with a BB score, whilst Lower-Tier Assets are those that score below this threshold.

We ensure equal weighting to Environmental, Social, and Governance (ESG) aspects. This is often overlooked in the industry but is essential for fostering more comprehensive and responsible investment decisions.