Big news from KPMG, one of the world’s “big four” accounting firms, has crypto enthusiasts buzzing. They recently published a pivotal report highlighting how Bitcoin positively contributes to the ESG investing framework, which stands for Environmental, Social, and Governance factors.
Daniel Batten, a renowned expert in ESG and co-founder of CH4 Capital, hailed this report as a crucial milestone for Bitcoin’s mainstream and institutional acceptance.
The deep-dive report, titled “Bitcoin’s role in the ESG Imperative,” begins with the environmental aspect, addressing the energy-intensive Bitcoin mining industry. KPMG suggests that the mining industry is moving towards net zero emissions and compares Bitcoin’s carbon footprint to other global industries like tourism and fashion, revealing that it’s actually quite small.
The report also outlines strategies to further reduce Bitcoin’s environmental impact, such as using renewable energy and recycled heat.
The social aspect of the report challenges the “Bitcoin is for criminals” narrative, referring to a recent study by Chainalysis. KPMG argues that Bitcoin can be a tool for financial inclusion, citing examples like crowdfunding for Ukraine’s war efforts and providing access to electricity in Africa. Furthermore, the report highlights the importance of Bitcoin for marginalized communities around the world.
Lastly, in terms of governance, KPMG focuses on the decentralized nature of Bitcoin, one of its most prominent features. The report stresses that the network’s rules cannot be altered by those in power, providing a robust governance structure that instills confidence in the system.
Despite the positive findings, the report concludes with a series of questions for the Bitcoin community, encouraging users, miners, and other organizations to reassess their relationship with the ecosystem.
In short, KPMG’s report marks a significant step forward for Bitcoin and cryptos in general, shedding light on its potential benefits within an ESG framework.
While there is still work to be done to correct mainstream misinformation about cryptocurrencies and many concerns about ESG’s principles, this report serves as a valuable resource for those seeking to understand areas of crypto’s utility and potential future applications, from the perspective of major corporations.