Companies across industries are focused on improving their environmental, social and governance practices, and with good reason. In addition to having the desire to do good for its own sake, businesses are very aware that more and more investors are taking a company’s ESG standards and practices into account when making investment decisions.
Crypto mining companies would do well to look into how they too can keep ESG practices in mind, and in light of a common criticism levied at the crypto industry — that it has a large carbon footprint — they may want to begin by focusing on energy efficiency and emissions. Below, eight members of Cryptox Innovation Circle share tips to help crypto mining companies adopt or enhance ESG practices and share that work with fellow industry members and the public.
Join and engage with online mining communities
While it’s clear how to make mining more sustainable, the implementation can still be lengthy and expensive. Joining and engaging with online mining communities will allow you to communicate with other successful ESG-savvy mining enterprises. Hearing advice and success stories from your peers will help you develop a strategy for implementing ESG best practices. – Sheraz Ahmed, STORM Partners
Invest in energy-efficient mining equipment and renewable energy
Prioritize energy efficiency and utilize renewable energy sources. By investing in energy-efficient mining equipment, optimizing mining operations and tapping into solar, wind or hydroelectric power, mining companies can significantly reduce their carbon footprint and contribute to a more sustainable crypto ecosystem, thereby appealing to environmentally conscious stakeholders. – Tomer Warschauer Nuni, Kryptomon
Look for opportunities to leverage otherwise wasted energy
Use renewable energy if possible. Or if not, use only excess energy that would otherwise have gone to waste. For example, if a power plant is just idling, it is still burning fuel, but the energy being generated is not being used. If you can find opportunities to put otherwise wasted energy to good use for mining, then that’s a good thing. – Zain Jaffer, Zain Ventures
Prioritize transparency and accountability
For crypto mining companies focusing on ESG practices, prioritizing transparency and accountability is key. Providing clear information on your environmental impact, energy consumption and carbon reduction efforts builds trust. Engaging stakeholders fosters positive social impact and addresses concerns. – Arvin Khamseh, SOLDOUT NFTs
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Use blockchain-based emissions reports
An important tip for crypto mining companies is to implement ESG practices using blockchain-based emission reports. These reports offer standardized carbon footprint metrics as communal governance and granular data to help ESG managers decarbonize the mining process. – Vinita Rathi, Systango
Collaborate with local stakeholders for green energy contracts
To stand out in the crypto space, mining companies must embrace ESG by prioritizing energy efficiency and renewable energy sourcing. Innovate with cutting-edge mining tech, smart cooling solutions, and waste heat utilization while collaborating with local stakeholders for green energy contracts. Elevate your brand, attract eco-conscious investors and lead the charge toward a sustainable crypto future. – Jagdeep Sidhu, Syscoin Foundation
Be conscious of the consumption associated with PoW mining
Mining operations should prioritize the utilization of renewable energy sources. The energy consumption associated with cryptocurrency mining, especially for proof-of-work-based cryptocurrencies such as Bitcoin, can be significant and contribute to a substantial carbon footprint. – Theo Sastre-Garau, NFTevening
Make positive contributions to offset your energy usage
Find ways to make the mining process more sustainable, such as by using renewable energy resources or making positive environmental contributions that offset your energy usage. One way this could be done is by donating a percentage of each transaction fee to an environmental organization in order to offset emissions. – Anthony Georgiades, Pastel Network
This article was published through Cryptox Innovation Circle, a vetted organization of senior executives and experts in the blockchain technology industry who are building the future through the power of connections, collaboration and thought leadership. Opinions expressed do not necessarily reflect those of Cryptox.
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