Regulation
Stuttgart Stock Exchange launches ESG data for cryptocurrencies ahead of EU MiCA
Boerse Stuttgart Group has announced an expansion of its market data offering to include ESG data on cryptocurrencies.
The data is calculated and provided by Crypto Risk Metrics as part of a cooperation. Boerse Stuttgart Group distributes the data via its existing network of data providers. Their customers can get the ESG data via a simple feed extension, which minimizes their internal effort.
Cryptocurrency providers must publish sustainability data for cryptocurrency offerings under MiCA regulation
Initially, Boerse Stuttgart Group offers ESG data for around 30 cryptocurrencies. The offer will be continuously expanded based on demand.
The launch of ESG data for cryptocurrencies by the Stuttgart Stock Exchange follows the entry into force of the EU MiCA regulation, which will come into force by the end of the year and will establish transparency requirements for cryptocurrency service providers, who will be obliged to publish data on the sustainability of the cryptocurrencies they offer.
Sabine Guske, Head of Data & Analytics at Boerse Stuttgart Group, commented: “Through our ESG data offering for cryptocurrencies, every bank, broker and cryptocurrency provider can easily and cost-effectively obtain the data required by regulation. We are directly connected to all major data providers who can redistribute the ESG data to their customers.”
Tim Zölitz, CRO of Crypto Risk Metrics, adds: “Our collaboration with Boerse Stuttgart Group ensures that every crypto service provider can meet their ESG reporting obligations in the best possible way. We were particularly pleased that our internal compliance framework, which systematically excludes possible influences from blockchain protocols in the calculation of ESG figures, was taken into account.”
ZERO13 Launches Digital Asset Carbon Footprint Solution
GMEX Group’s digital climate fintech aggregation ecosystem, ZERO13, has recently partnered with B2B digital asset infrastructure Zumo to launch a digital asset carbon footprint solution.
Designed for banks and their corporate and institutional clients who want to account for the environmental impact of their digital activities and every aspect of their value chain, the integrated solution leverages the GMEX ZERO13 hub’s connectivity to digital carbon ledgers, trade execution capabilities and its decentralized asset settlement network.
The solution provides high-quality tokenized and validated carbon credits and helps customers account for their carbon footprint through the sourcing and custody of tokenized carbon credits, with easy trading, clearing and settlement.
Zumo is a UK FCA registered entity that enables GMEX ZERO13 to leverage Zumo’s capabilities to integrate new banks, corporates and other institutions into its trading platform. Zumo clients will be able to operate and/or access their own trading platforms and associated liquidity pools for high quality carbon credit assets and other instruments and provide end-to-end efficiency across the transaction lifecycle from onboarding (KYC/AML) to settlement.
Banks and their clients can seamlessly connect with each other and with third-party ledgers, exchanges and other counterparties to issue, trade, clear and settle tokenized carbon credits, while executing their ESG strategies with the help of blockchain technology.
CCData Offers ESG Benchmark
Last year, CCData introduced an ESG Benchmark and underlying data solutions in partnership with CCRI. The ESG Benchmark provides a framework to assess ESG risks and opportunities associated with 40 of the largest and most liquid digital assets, across 11 key valuation categories.
CCData’s ESG Benchmark was created to meet the growing demand from ESG-focused investors and support the development of ESG indices and financial products. The firm highlighted key findings in the report, which include:
- Ethereum was the only asset to earn an AA grade in the first ESG Benchmark, followed by Solana and Cardano with A grades. Looking at individual categories, Stellar Lumens led in the environmental section, while Ethereum and Polkadot topped the Social and Governance categories, respectively. Despite high scores in social and governance, Bitcoin ranked 20th overall, due to its high electricity consumption.
- 90% of the electricity consumed by the assets analyzed can be attributed to Bitcoin. Environmental concerns regarding the electricity intensity of digital assets remain central, with Bitcoin consuming more than 100 TWh per year. Some of the Proof-of-Stake assets analyzed consume 10,000 times less electricity than BTC.
- 62.5% of the analyzed resources have a carbon intensity of electricity use below the current global average of 459 gCO₂/kWh. The carbon intensity of most of the analyzed resources typically falls between 300 tb and 400 gCO₂/kWh, which is just below the global average of 459 gCO₂/kWh. Proof-of-work resources show a higher carbon intensity of around 500 gCO₂/kWh.
- $2.98 is the average transaction fee required to transact on the blockchains and protocols analyzed. Despite the availability of blockchains with low transaction fees, average transaction costs are still high, with most transactions occurring on blockchains with high fees.
- The top 10 wallets control 50% or more of the token supply for 20% of the assets analyzed. The concentration of wealth and power is increasing among protocols. This is concerning as the unequal distribution of protocol tokens significantly undermines equity within the industry, posing a substantial threat to inclusivity.
CC_Fig_1_13Jul23.jpg
The benchmark offers ESG ratings for 40 of the largest and most liquid cryptocurrencies and is supported by thousands of hours of research, using both qualitative and quantitative metrics to assess a broad range of ESG metrics.