We are excited to announce that as of 9th May, 2022, in partnership with Green Crypto Research, SwissBorg has released ESG ratings for the 40+ tokens in the SwissBorg app!
For the initial release, the ratings can be viewed on the Supported Assets page of our website and in the Learn section of each token in the app. Later this year, we will be updating the Marketplace in our app to include a ratings column as well to give users the information they need to make sustainable investment decisions at a glance.
We hope you are as thrilled as we are about this first step in our sustainability roadmap!
What is ESG?
ESG stands for Environmental, Social and Governance, and is the model SwissBorg and many other organisations are using to define sustainability.
While many people assume the word ‘sustainability’ refers to the environment, the fact is that this is just one piece of the puzzle. Think of it like the three-legged stool analogy - a three-legged stool needs all three legs to remain stable. If one or two of them is missing, it will collapse.
Similarly, for us to build a sustainable organisation and wealth management ecosystem, we need to address all three pillars. This is why all three are considered in this rating system, because all three are required to get a holistic view of any project or token.
How are the ESG ratings calculated?
We recently announced a partnership with Green Crypto Research (GCR), an independant Swiss-based association that has developed the world’s first sustainability rating for crypto, following the ESG framework.
To calculate these ratings, GCR sources between 90 to 110 data points per token to feed their data model. Their expert team then critically reviews the ratings produced by the data model and adjusts them if necessary to ensure the ratings are as accurate as possible. These ratings are then reviewed every quarter and updated at least every six months.
Some of the data that is considered when developing these ratings includes:
- The underlying blockchain of a token
- Energy Consumption
- Transaction volume
- How the token empowers people economically or socially
- Social issues
- Legal and regulatory status
- Transparency relating to legal entities and domiciles
- Auditing procedures
You can see how these factors all come together in their analysis of our beloved CHSB token.
The token rating scale
Once the data is considered, the token is given a score between A+ and D- for each of the ESG factors, with the scores meaning the following:
- A = Sustainable
- B = Has potential
- C = Not there yet
- D = Not sustainable
Once the token is given a score for its level of sustainability relating to Environment, Social and Governance, the overall rating is then based on the worst score received - this ensures that a failure in one category cannot be compensated for by success in the other two.
Again, for sustainability, projects need to consider all three factors, so if a token receives two As and one D, it is not truly sustainable.
How token ratings can impact your investing
As we discussed in our annual meeting, we believe in investing according to your values. For those who value the sustainability and longevity of crypto, these ratings are one way you can make sure your voice is heard.
Simply check our Supported Assets for the ratings of each asset, or follow these steps to find the ratings in our app:
- Navigate to the Marketplace tab
- Tap the ‘Learn about’ card at the bottom of the screen
- The scores will appear at the top of the screen
We’re thrilled to have you join us on this first step to a more sustainable crypto future!
Try the SwissBorg app today!