We incorporate various regulatory requirements of the European Union into the ESG valuation of digital assets. As of January 2023, we have adjusted our calculation models and increased the weighting of data quality and data transparency in our assessment method. Inaccurate, unclear or contradictory information and figures lead to penalty points in the analysis.
Sustainable Finance Disclosure Regulation (SFDR)
Under the SFDR, funds and financial products advertised or labeled as ESG must meet the requirements for one of three classifications. We assesses each blockchain against Articles 6, 8, and 9 of the SFDR framework. Tokens are not classified as they are built on existing blockchains.
Learn more about SFDR in our blog post.
We examine each blockchain against the six objectives within the classification system (climate change mitigation, climate change adaptation, sustainable use and protection of water and marine resources, transition to a circular economy, pollution prevention and control, protection and restoration of biodiversity and ecosystems) and assess whether it meets the EU taxonomy as a whole.
Learn more about how we include the "do not harm" approach in our blog post.