The Australian branch of cryptocurrency exchange Binance has become the first entity in the digital currency space with plans to begin Environmental, Social, and Governance (ESG) metrics reportage.
Through the exchange’s Twitter account, Binance indicated that the reportage is part of changing the narrative associated with the cryptocurrency sector dominated by negative commentary and misinformation based on carbon emissions.
According to Binance, the ESG reportage compliments the exchange’s vision to enhance the freedom of money globally.
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The exchange notes that the ESG initiative aims to focus on facilitating transparency of the sustainability footprint of organizations in the crypto sector.
“One of the most significant headwinds the digital asset industry has faced is negative commentary and misinformation based on carbon emissions from the sector. The sector is led by people and organizations determined to have a positive impact on society, and the negative headlines have triggered a lack of education and awareness of ESG conscious crypto businesses,” said Leigh Travers, Chief Executive Officer of Binance Australia.
By embarking on ESG reportage, Binance also aims to leverage the growing space, which is increasingly becoming an essential component of how organizations interact with their customers.
Companies not focusing on ESG might miss out
As previously reported by Finbold, Jamie Strauss, CEO of ESG disclosure and data company for the mining sector, Digbee warned that businesses that are not focusing on ESGs risk being shunned by investors.
According to the executive, companies disclosing their ESG will have the upper hand in attracting new capital streams. Furthermore, he noted that companies, especially from the mining sector shunning ESG, are already recording a drop in their stocks.
Overall, there has been increased awareness regarding sustainability amongst consumers in recent years, in return giving the ESG framework prominence. In this line, research by Moody’s revealed that the inflow of institutional and retail investors to ESG products increased by 140% in 2020 compared to 2019.
