Bitcoin enthusiasts celebrated this week as KPMG, a prominent global accounting firm, released a report highlighting the protocol's potential to make a positive impact across the three key areas of ESG investing: environmental, social, and governance.
The KPMG report titled "Bitcoin's Role in the ESG Imperative" marks a significant milestone by being the first comprehensive evaluation of Bitcoin by a mainstream financial institution within the ESG framework.
The report thoroughly examines the three pillars of the framework, starting with Bitcoin mining's environmental impact – a process known for its energy intensity. KPMG notes that the mining industry is actively working towards achieving Net Zero emissions.
KPMG's analysis places Bitcoin's emissions in perspective against industries like tourism and fashion, highlighting its minimal contribution. The report offers various strategies to mitigate Bitcoin's carbon footprint, such as adopting renewable energy sources and repurposing heat generated during mining operations.
The social perspective covered in the report addresses the contentious assertion that "Bitcoin is for criminals," referencing a recent Chainalysis study. This view has been echoed by figures like U.S. Senator Elizabeth Warren, who associates cryptocurrency with criminal activities and negative societal impacts such as the fentanyl crisis.
In response, KPMG counters these claims by highlighting the positive aspects of the protocol in terms of social impact. It showcases instances where Bitcoin has enabled financial inclusion, including aiding Ukraine's conflict with Russia through crowdfunding, facilitating access to electricity in Africa, and supporting marginalized communities globally.
Additionally, the report delves into the governance aspect of Bitcoin, particularly its decentralized nature, which it identifies as one of its standout attributes. The report underscores the network's resilience to manipulation or alteration by influential figures, highlighting the robust governance structure that instills a high level of confidence in the system as a whole.
The report's final assessment affirms that Bitcoin offers several advantageous contributions within the ESG investing framework. It wraps up by posing a set of inquiries to participants within the ecosystem, encouraging users, miners, and other entities to evaluate their roles and connections within this environment.
This endeavor will enhance education and empower individuals with a thirst for knowledge to develop an enlightened perspective on the practicality of Bitcoin.
KPMG Bitcoin Report Marks ‘a milestone the Bitcoin ecosystem should celebrate’: Analyst (no date) Yahoo! Finance. Available at: https://finance.yahoo.com/news/kpmg-bitcoin-report-marks-milestone (Accessed: 15 August 2023).