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KPMG has published a report addressing Bitcoin and ESG (environment, social, and governance) matters. The prominent professional services firm discovered that Bitcoin “seems to offer several advantages within an ESG framework.”
Examining each element of ESG individually, the report highlighted that emissions serve as a more critical indicator of environmental harm than energy consumption. It placed Bitcoin (BTC) emissions in context with those from various sectors, including tobacco and tourism, identifying it as the second smallest contributor, following “Video (US).” It concluded:
“Bitcoin’s emissions may be lower than often discussed.”
The report reiterated well-known strategies for enhancing Bitcoin’s carbon footprint, such as increasing the use of renewable energy and utilizing energy generated from methane for mining.
BREAKING: KPMG, one of the ‘top 4′ largest accounting firms globally, recognizes the positive effects #Bitcoin can have on the environment. pic.twitter.com/LjxvELm3yg
— Dennis Porter (@Dennis_Porter_) August 1, 2023
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The report indicated that Bitcoin’s role in money laundering is minimal compared to the overall scale of money laundering worldwide. Money laundering is estimated to represent 2-5% of global gross domestic product, according to statistics from the United Nations Office on Drugs and Crime referenced in the report, but constitutes only 0.24% of Bitcoin transactions, as reported by Elliptic. It also mentioned that laundered funds were received in Bitcoin significantly less than in Ether (ETH), stablecoins, or altcoins, and that Anti-Money Laundering (AML) and Know Your Customer (KYC) protocols could be implemented at the point of off-ramping the coin, despite the absence of AML/KYC requirements for its transactions.
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Examples of positive applications were again highlighted, such as fundraising efforts for Ukraine and electrification initiatives in rural Africa.
The report asserted that Bitcoin’s governance is strong, as its rules cannot be altered without forking:
“This results in a system that cannot be abused or misused by those in power or even individuals with ulterior motives due to its decentralization.”
The 12-page report relies entirely on secondary sources and well-known use cases. It emphasizes, however, that Bitcoin continues to be misunderstood. The firm provides a variety of crypto-related advisory services.
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