Contents
1. Mission Statement

4-8

2. Methodology & Rankings

9-11

3. Key Highlights

12-15

4. Category Statistics

16-20

5. Conclusion

21-24

ESG Benchmark July 2023

2

Access the Underlying ESG Methodology And Datasets
ESG Benchmark July 2023

3

Mission Statement

4Introducing: ESG Benchmark
Leveraging their combined expertise in digital asset data and Environmental,
Social, and Governance (ESG) analysis, CCData and CCRI, have collaborated tocreate an industry ﬁrst, institutional grade Digital Asset ESG Benchmark and datasolutions.
CCData and CCRI's unique methodology provides a novel lens through which theindustry can discern an asset's ESG exposure and analyse the ESG risks andopportunities inherent in digital assets.
The benchmark offers digital asset ESG ratings for 40 of the largest, most liquid
crypto assets. The benchmark is supported by thousands of hours of research andutilises both qualitative and quantitative metrics to assess a broad range of ESG
parameters.
The underlying digital asset ESG data and rankings support the development ofindustry-ﬁrst ESG indices and other ﬁnancial products. Whilst complete ESG dataand rankings are available, constituent data from environmental, social andgovernance can also be derived for more detailed analysis in each of thesedistinct areas.

ESG Benchmark July 2023

5Mission Statement
CCData, in partnership with CCRI, have created an industry-ﬁrst, institutionallyfocused ESG Benchmark that provides a framework for assessing the ESG risks andopportunities associated with a selection of digital assets. The ﬁrst iteration of thebenchmark covers 40 assets over 11 core categories of evaluation:-Fundamentals
Electricity Consumption
Climate Impact
HardwareTransparency
Accessibility & Inclusivity
Community Engagement
Security
Decentralisation
Participation

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.

ESG Benchmark July 2023

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 digitalasset 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.

6

Who is the ESG Benchmark for?
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 andcriticisms from regulators, policymakers and media, who consider ESG
requirements a top priority.

Index Providers who require access to comprehensive datathat continuously monitors ESG performance, providing theultimate benchmark for ESG investment products and indexsolutions.

Regulators who need to assess the ESG performance ofdigital assets and investments, monitor the industry, andevaluate compliance amidst growing ESG concerns, ensuring
effective oversight.

Funds looking to integrate ESG into their asset selection
processes and strategies, meet investor expectations whorequire ESG as part of their investment mandates, andensure regulatory compliance across multiple jurisdictions.

Exchanges that need to ensure transparency amidst
regulatory pressures, and those making informed listing
decisions which require referencing a comprehensive ESG
benchmark.

ESG Benchmark Rankings

ESG Benchmark July 2023

Find out more about our ESG data solutions7

Benchmark Scoring - Key Principles●The three key categories: Environmental, Social andGovernance, are divided into subcategories of metrics, eachwith weightings based on their relative importance - theseweightings are decided at CCData and CCRI’s discretion, andmay change in future editions of the Benchmark.

●Points are aggregated within each category and are thenscaled to the category weighting. Each category score issummed up to reach a total score.

●Each category includes a range of metrics that canquantitatively or qualitatively measure the ESG complianceof an asset. Metrics are then given points based on theirrelative importance within that category - again decided atCCData and CCRI’s discretion.

●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 arecomparable, 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.’

ESG Benchmark July 2023

8

Methodology & Rankings

9ESG Methodology Ranking and Grading
Scores from each category are aggregated to form a total
cumulative score. The maximum score is 100.
We ensure equal weighting to Environmental, Social, andGovernance (ESG) aspects. This is often overlooked in the industry
but is essential for fostering more comprehensive and responsible
investment decisions.

Environmental
33.33%

Governance33.33%

ESG
Methodology

Top-Tier Assets are required to maintain a minimum score of 65,
corresponding with a BB score, whilst Lower-Tier Assets maintain ascore below this threshold.

Social33.33%

Category

Environmental

SocialGovernanceTotal Points

Grades

AAABB

BCDE

Points

33.33

33.33

33.33

100

Points

>70

65-70

60-65

55-60

50-55

45-50

<45

ESG Benchmark July 2023

10

ESG Assets Toplist

Access the underlying ESG dataand methodology

See the full rankings on ourdashboard

Asset

Environmental

SocialGovernanceTotal Score

Final Grades

Ethereum26282579AASolana

26

26

1669

ACardano26

182468A

Binance Coin

25

232068AAptos

25

212268A

Polkadot

24

172668A

Dai

25

162667A

Ripple

27

22

1665

ATezos

26

20

1965

A

Uniswap

24

202165

BBCosmos

22

192364BB

Polygon

26

23

1564

BB

Algorand

25

22

1763

BB

EOS

25

18

2163

BB

Stellar Lumens

30

20

1362

BB

ESG Benchmark July 2023

11

Key Highlights

12Key Highlights — Environmental
Assets increasingly build on technical fundamentals with rather low
electricity requirements. 34 out of the top 40 assets rely on a consensus
mechanism, such as Proof-of-Stake, which does not exceed 10 GWh ofannual electricity consumption. This is particularly interesting as only a

For the majority of assets, the carbon intensity of electricitygeneration is below the world average. For most of the analysed assets,
the carbon intensity ranges between 300 and 400 gCO₂/kWh which isslightly below the world average of 459 gCO₂/kWh. With aroundfew years ago, the electricity-intensive Proof-of-Work mechanism wasdominant among top digital assets.

500gCO₂/kWh, the carbon intensity of Proof-of-Work-based assets isworse than average, as cheap electricity sources nowadays include

Differences in the magnitude of electricity consumption remain
striking. The environmental concerns regarding the electricity intensityof digital assets remain central, with Bitcoin consuming more than 100
TWh per year. Some Proof-of-Stake-based assets, however, consume10,000 times less electricity than Bitcoin.
Only a few assets require specialised and single-purposed hardware.
Only 4 out of the top 40 assets require so-called ASICs that need to bereplaced regularly to remain competitive and cannot be used for otherpurposes, thus generating inevitable e-waste.

ESG Benchmark July 2023

natural gas and subsidized coal power.
More transparency on the sustainability performance of digital assets
is required. For only 7 of the top 40 assets, there is comprehensive andhigh-quality information available on their sustainability performance.
More disclosure with proper methodology descriptions, third-partyaudits, and live data is needed.

13Key Highlights — Social
Security remains a key priority within the industry. This was evidenced by
the implementation of bug bounty programs in 80% of projects. This
heightened focus on security is crucial for effectively safeguarding
customer funds, considering the escalating frequency of attacks targeting

Concentration of Wealth and Power is rising among protocols. The
unequal distribution of protocol tokens signiﬁcantly undermines fairness
within the industry, posing a substantial threat to inclusivity. Thisobservation becomes particularly concerning given that the top 10 wallets

the industry. This proactive approach aligns with the principles of ESG,
highlighting the industry's dedication to responsible and secure practices

control 50% or more of the coin/token supply for 20% of the analysedassets. Such a concentration of wealth and power raises serious questions

that ensure the long-term integrity and trustworthiness of the blockchain
ecosystem.

regarding the industry's adherence to ESG principles and its commitment
to fostering a level playing ﬁeld for all stakeholders.

Average transaction costs are still high. Despite the availability ofBlockchains with low transaction fees, the majority of transactions occur
on blockchains with high fees. This high fee requirement creates barriers toentry, hampers adoption, and impacts the accessibility and inclusivity ofblockchains. Despite the effectiveness of Layer2 solutions in addressing
this issue, their widespread adoption appears to be progressing slowly due
to the concentration of transactions on Layer 1 blockchains.

Community grants are becoming increasingly prevalent across theindustry. Our analysis reveals that an impressive 67.5% of projects
incorporate some form of community grant programme, which highlights
the industry's strong commitment to onboarding diverse participants andpromoting equal opportunities. These grants play a pivotal role inempowering underrepresented communities and individuals, making
substantial contributions to the development of a more inclusive andequitable ecosystem.

ESG Benchmark July 2023

14Key Highlights — GovernanceFurther Adoption of On-Chain Governance is Required. Only 16 of thetop 40 assets have fully implemented on-chain governance that allows
token holders to vote on proposals. Additionally, 3 assets allows token
holders to participate in governance by delegating their tokens tovalidators.

Sufficient Documentation of Governance Process. 29 of the top 40
assets have a dedicated web page where they have documented theirgovernance process and explains how protocol changes are discussed
and implemented.

Lack of Decentralisation. Only 9 of the top 40 assets have a Nakamoto
Coefficient of over 50, suggesting that they are sufficiently decentralised.
Of these 9 assets, 5 of them have implemented a Proof-of-Workconsensus, indicating the increased decentralised nature of suchblockchains compared to Proof-of-Stake assets.

Higher Rate of Proposal Success Rate in Off-Chain Governance. 24 of
the assets have a proposal success rate of greater than 50%. 16 of them
employ an off-chain governance system suggesting that there is moreagreeableness and due diligence before each proposal is available forvoting.

Polkadot, Cardano and Solana Lead In Decentralisation Among theNon-PoW Assets. Polkadot leads the non-PoW blockchains when it comesto decentralisation based on the Nakamoto Coefficient, courtesy of their
Nominated Proof of Stake (NPoS) consensus mechanism.

Low Average Voter Turnout. Only 6 of the assets have an average voter
turnout of greater than 50%. Assets employing Off-Chain governanceare not transparent about their turnout for decision-making by design.

ESG Benchmark July 2023

15

Category Statistics

16

Top-Tier ESG Assets
CCData has established the notion of Top-Tier volume
whereby investors can segment the current universe intohigher and lower volumes, based on ESG rankings.
We currently deﬁne Top-Tier volume as volume derived
from exchanges scoring a BB and above.
Top-Tier Assets represented 18.4% of total average daily
trading volumes of the 40 assets, dominated by
AA-Graded Assets (Ethereum).

18.4%
Of average daily trading
volumes were fromTop-Tier Assets

Volumes are calculated during data collection period (Q2 2023) using CCData’s OHLCV
dataset and utilising an average 90 days period.

ESG Benchmark July 2023

17

Environmental

85%

~90%

62.5%

Of the analysed assets rely
on a consensus mechanismthat does not exceed
10GWh of annualconsumption.

Of the annual electricity consumed
by the analysed assets can beattributed to Bitcoin.

Of the analysed assets have acarbon intensity of electricity
usage that is lower than thecurrent global average of 459
gCO₂/kWh.

90%

17.5%

Of the analysed assets do notrequire specialised andsingle-purposed hardware.

Of the analysed assets provide
comprehensive and high-quality
disclosure regarding theirsustainability performance.

ESG Benchmark July 2023

18

Social$2.98678

6.4M

Is the average transaction
fee required to transact on
the analysed blockchains andprotocols.

Is the total number of trading
pairs in which analysedassets feature on Top-Tierexchanges, making themwidely accessible.

Daily active users acrossanalysed protocols,
represented by daily activewallets.

$26.0B 67.5%
Is the average daily trading
volume for the analysed crypto
assets on centralised
exchanges.

ESG Benchmark July 2023

Of blockchains and protocols
have community grants tofund their communityinitiatives.

80%
Of analysed projects have
implemented a Bug Bounty
program to increase theirsecurity measures.

19Governance

15.0%
Of assets had their top 10
token holders account forless than 10% of the total
supply.

9
Of the analysed assets
have a Nakamoto
Coefficient of more than50. Of the 9, only 4 are non
PoW assets.

40.0%
Of the analysed assets have afully on-chain governancesystem where token holders
can vote on proposals.

27.5% 72.5%
Of the analysed assets
have more than 100
proposals. 60% of them
have a proposal successrate of more than 50%.

ESG Benchmark July 2023

Of the analysed assets
have documentation of
their governance process.

20

Conclusion

21

Conclusion
ESG is emerging as a critical aspect of the digital asset landscape, driven byincreasing institutional adoption and the demand for sustainable
investment practices. As the ecosystem expands, so does the need for acomprehensive ESG benchmark tailored speciﬁcally to the digital asset
space. CCData and CCRI’s ESG Benchmark allows investors to accurately
assess ESG risks and opportunities, reducing barriers to entry from an
institutional perspective, whilst helping to foster and shape a sustainable
future for the entire ecosystem in the process.

This report has highlighted key ﬁndings which should be considered whenapproaching ESG in the digital asset space. For example, although Bitcoinranks second in Social, and fourth in Governance, it ranks last in
Environmental due to heavy electricity consumption and the carbonintensity of the electricity it utilises, amongst other environmentalexternalities. This reﬂects the expected poor Environmental performance ofProof-of-Work assets, who conversely score well in both Social andGovernance metrics.

By grading a selection of the largest and most liquid digital assets using a

On the other hand, Ethereum, the top performing asset in the Benchmark,standardised ESG criteria, this benchmark equips investors with the tools
needed to make informed decisions and allocate resources to assets
which hold strong ESG scores. Our institutional grade ESG benchmark
serves as a catalyst for positive change within the industry, encouraging
digital asset projects to prioritise sustainability and sound governancepractices when making decisions.

produced stellar scores in each section, being the only asset to receive an
AA grade in excess of 70 points. Ethereum’s recent shift to Proof-of-Stakeis a key driving force behind their consistent scores across all sections,reﬂecting their commitment to sustainability whilst maintaining strong
principles in decentralisation.

22Contact
The ESG Benchmark is backed by thousands of research hours and covers over 200 qualitative and quantitative
metrics. This report is updated twice annually to reﬂect the fast-changing digital asset landscape. If there is any
part of the Benchmarks that you would like to discuss, please reach out to us.

Speak to us if you are interested in any of the following:-Custom Reporting
Detailed Benchmark Scores
Underlying Data

Reach out to:
CCData Sales: sales@ccdata.io
CCData Research: research@ccdata.io
CCRI Contact: hi@carbon-ratings.com

Access the Benchmark scores using our API

ESG Benchmark July 2023

Access the underlying ESG data andmethodology

23

Disclaimer
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 internallywithin your organization and by receiving this information, you agree thatexcept with the prior written permission of CCData and its partners, suchinformation 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 andprojections, 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 aresult of this Report or any inaccuracies, inconsistencies, formatting errors, oromissions in this Report. CCData and its partners make no representations orwarranties, express or implied, as to the accuracy or completeness of theinformation contained herein, and will not have any liability to you or any otherperson resulting from the use of such information by you or any of yourrepresentatives.

ESG Benchmark July 2023

24