{"id":276286,"date":"2021-06-16T19:34:00","date_gmt":"2021-06-16T16:34:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/bitcoin-miners-can-prove-green-potential-by-undergoing-esg-ratings-check\/"},"modified":"2021-06-16T19:34:00","modified_gmt":"2021-06-16T16:34:00","slug":"bitcoin-miners-can-prove-green-potential-by-undergoing-esg-ratings-check","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/bitcoin-miners-can-prove-green-potential-by-undergoing-esg-ratings-check\/","title":{"rendered":"# Bitcoin miners can prove green potential by undergoing ESG ratings check"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a39b4023c72c\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a39b4023c72c\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/bitcoin-miners-can-prove-green-potential-by-undergoing-esg-ratings-check\/#Proof_of_green_potential_through_ESG_ratings\" >Proof of green potential through ESG ratings<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/bitcoin-miners-can-prove-green-potential-by-undergoing-esg-ratings-check\/#Will_ESG_ratings_become_an_ongoing_trend_for_miners\" >Will ESG ratings become an ongoing trend for miners?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/buradabiliyorum.com\/en\/bitcoin-miners-can-prove-green-potential-by-undergoing-esg-ratings-check\/#Is_Bitcoin_an_ESG_disaster\" >Is Bitcoin an ESG disaster?<\/a><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong># Bitcoin miners can prove green potential by undergoing ESG ratings check <\/strong>&#8221;<br \/>\n<img decoding=\"async\" src=\"https:\/\/images.cointelegraph.com\/images\/840_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjEtMDYvYjRhYTViNGYtNzhmMi00MjJkLWIwNjUtNGY3MDA1MGMyMWFhLmpwZw==.jpg\" \/><\/p>\n<div class=\"post-content\" data-v-5a136f3a>Environmental concerns regarding the energy-intensive, proof-of-work (PoW) mechanism that Bitcoin (BTC) uses to produce new coins and verify transactions have been front and center lately. Debates regarding Bitcoin\u2019s energy use particularly surged following a tweet sent out by Tesla CEO Elon Musk\u00a0in May saying that his company would no longer accept Bitcoin payments due to the network\u2019s \u201cincreasingly rapid use of fossil fuels.\u201d<\/p>\n<p>Since then, a number of ways Bitcoin mining companies could go green have been discussed, many of which include using 100% renewable energy sources. For example, El Salvador president Nayib Bukele recently disclosed plans for a geothermal power company, letting\u00a0Bitcoin miners use its facilities to ensure clean mining. <\/p>\n<h2><span class=\"ez-toc-section\" id=\"Proof_of_green_potential_through_ESG_ratings\"><\/span>Proof of green potential through ESG ratings<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>While innovative, these initiatives may be easier said than done. Moreover, if these mechanisms were to be achieved, proof of Bitcoin\u2019s green potential may still be required to show its impact.<\/p>\n<p>In order to demonstrate true energy conservation, Bryan Bullett, CEO of Bit Digital \u2014 one of the largest publicly listed Bitcoin mining companies \u2014 told Cointelegraph that the company recently submitted for a third-party environmental, <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">social<\/a> and corporate governance (ESG) review. Bullett noted that the international ESG framework is used by many companies and favored by institutional investors to track and verify companies\u2019 environmental standards and adherence. <\/p>\n<p>Sam Tabar, chief strategy officer of Bit Digital, further told Cointelegraph that the firm may be the only Nasdaq-listed miner that has engaged an independent ESG firm:<\/p>\n<blockquote><p>\u201cOur ESG rating will be provided by Apex Group ESG Ratings &amp; Advisory, a well-known ESG specialist. Apex met our requirements for an independent process to ensure relevance and consistency surrounding ESG and shares our commitment to creating ESG transparency for investors.\u201d <\/p><\/blockquote>\n<p>According to Tabar, once completed, the ESG report from Apex will allow Bit Digital to draw meaningful conclusions to better understand the firm\u2019s ESG performance against international standards and its peers, and then identify areas for improvement, all while tracking progress over time. <\/p>\n<p>It\u2019s important to point out that Bit Digital\u2019s ESG rating is not yet available, as Tabar added that he is not sure when the firm will receive the score. \u201cIt\u2019s not up to us, but we are willing to be reviewed. Our miner fleet has been running on a majority of carbon-free energy mix on average, so we expect that will be reflected in our score.\u201d <\/p>\n<h2><span class=\"ez-toc-section\" id=\"Will_ESG_ratings_become_an_ongoing_trend_for_miners\"><\/span>Will ESG ratings become an ongoing trend for miners?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Although Bit Digital may be one of the first mining companies to undergo an ESG review from a third-party firm, other miners may also choose to do the same. <\/p>\n<p>For example, Rob Chang, CEO of Gryphon Digital Mining \u2014 a clean energy Bitcoin mining company \u2014 told Cointelegraph that the company is using 100% hydroelectricity to mine Bitcoin. While Chang noted that Gryphon has already achieved 100% carbon neutrality,\u00a0Brittany Kaiser, chair of the board of directors at Gryphon, explained that an ESG rating will be performed upon the launch of the company\u2019s first mining machines, which is set for the beginning of August. \u201cWe have not seen ESG rated yet, as we are pre-operational. However, our electricity source is 100% renewable and we have purchased more than 250x more carbon credits to offset the delivery of our mining machines than the footprint it will create.\u201d<\/p>\n<p>Tabar additionally pointed out that it\u2019s important for publicly listed mining companies to undergo ESG ratings for their shareholder\u2019s knowledge:\u00a0<\/p>\n<blockquote><p>\u201cInstitutional investors increasingly require transparency on, and compliance with, international ESG standards. Therefore, to attract institutional investment, miners face an imperative to operate sustainably, and to provide consistent ESG metrics to the market.\u201d<\/p><\/blockquote>\n<p>While the case for ESG ratings is clear, it may be challenging for Bitcoin miners to obtain an ESG score, as a lot of data must be disclosed. Andy Pitts-Tucker, ESG managing director for Apex Group, told Cointelegraph that the ESG rating process varies based on the provider in question. \u201cFor listed businesses or funds, companies are evaluated based on publicly available information such as media sources and annual reports, with scores given for each \u2018E,\u2019 \u2018S\u2019 and \u2018G\u2019 category, alongside an overall score.\u201d He added, \u201cFor private companies and their investors, data must be provided by the companies themselves.\u201d<\/p>\n<p>Pitts-Tucker further added that an ESG rating specifically provides a consistent standard against which a company\u2019s ESG performance can be measured. As such, he noted that ESG ratings really gained attention last year, as the global pandemic renewed the world\u2019s focus on risks of all types, including non-financial and ESG factors:<\/p>\n<blockquote><p>\u201cCompanies are now facing increasing pressure from investors, employees and customers to disclose their ESG credentials. Companies now not only want, but need, to show their ESG credentials and compliance as their hands are forced by the implementation of regulations.\u201d<\/p><\/blockquote>\n<h2><span class=\"ez-toc-section\" id=\"Is_Bitcoin_an_ESG_disaster\"><\/span>Is Bitcoin an ESG disaster? <span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Although a recent decarbonization report from Big Four firm KPMG <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/advisory.kpmg.us\/content\/dam\/advisory\/en\/pdfs\/2021\/decarbonization-journey.pdf\">reinstates<\/a> that ESG ratings are quickly becoming a best practice for companies, some traditional financial service firms consider a Bitcoin ESG to be near impossible. <\/p>\n<p>For example, Benefit Financial Services Group, a registered investment advisor for both institutions and individuals, recently <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.bfsg.com\/is-bitcoin-an-esg-nightmare\/\">published<\/a> a blog post on the challenges of obtaining a Bitcoin ESG score. Unsurprisingly, the post mentions that by nature, Bitcoin mining is an \u201cundeniable environmental offender.\u201d As such, the entire document slams Bitcoin for being unethical and harmful toward the environment.<\/p>\n<p><strong><em>Related:\u00a0Fortunes turning? Specialized GPUs and SSDs come to aid crypto miners<\/em><\/strong><\/p>\n<p>While this may be a common opinion, Sam Wyner, cryptoasset services director and co-lead at KPMG, told Cointelegraph that in some cases, Bitcoin mining operations may be better positioned than larger organizations for an ESG score since they are typically smaller, more focused and, therefore, more agile:<\/p>\n<blockquote><p>\u201cThey will face the same challenges any corporation trying to obtain an ESG rating would face: Organizational maturity, when it comes to ESG and availability, and granularity of the data needed to support the rating. This is something even the largest corporations currently struggle with. And, like any corporation going through this for the first time, there is always the risk that the rating comes back less favorable than desired.\u201d<\/p><\/blockquote>\n<p><template data-name=\"subscription_form\" data-type=\"markets_outlook\"><\/template><\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/bitcoin-miners-can-prove-green-potential-by-undergoing-esg-ratings-check\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;# Bitcoin miners can prove green potential by undergoing ESG ratings check &#8221; Environmental concerns regarding the energy-intensive, proof-of-work (PoW) mechanism that Bitcoin (BTC) uses to produce new coins and verify transactions have been front and center lately. Debates regarding Bitcoin\u2019s energy use particularly surged following a tweet sent out by Tesla CEO Elon Musk\u00a0in&#8230;<\/p>\n","protected":false},"author":1,"featured_media":276287,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjEtMDYvYjRhYTViNGYtNzhmMi00MjJkLWIwNjUtNGY3MDA1MGMyMWFhLmpwZw==.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74862,74989,74858,74894,74872,75042,70934],"class_list":["post-276286","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-bitcoin","tag-bitcoin-mining","tag-bitcoin-regulation","tag-blockchain","tag-green-technology","tag-mining","tag-regulation"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/276286","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=276286"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/276286\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/276287"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=276286"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=276286"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=276286"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}