Our ESG rating reflects a holistic understanding of sustainability and is composed of three individual scores: 

Our ESG rating is a relative ranking, meaning that the best cryptocurrency in each category receives an A rating, while the worst receives a D rating. An average score is calculated for each category. The overall rating corresponds to the worst ESG score so that failures in a single category cannot be compensated for by good scores in the other two. Thus, if a cryptocurrency is judged not to be environmentally sustainable, it cannot make up for the poor rating with adequate social standards or good governance.

Rating Categories
Sustainable

Can be held and traded without negative environmental or social impact within a governed framework.

A+ | A-
With potential

Low environmental and/or social impact with potential governance optimizations. Can be held and traded if there is no better alternative.

B+ | B | B-
Sustainability issues

Negative environmental and/or social impact expected with potential governance issues. Trading and holding are to be avoided if possible.

C+ | C | C-
Not sustainable

Negative environmental and/or social impact with potential deficiencies in governance. Trading and holding are to be avoided altogether.

D+ | D-

Check out the ratings for your favorite cryptos here:

Environment

The environmental score in our GCR Sustainability rating illustrates the cryptocurrency impact on the planet. This not only refers to the actual energy consumption caused by the mining of cryptocurrencies, but it also involves the associated awareness and management to reduce emissions.