Greenpeace, a prominent environmental organization, has recently shed light on the climate impact of Bitcoin investments by asset managers. In a report published by the organization, it has been revealed that financial services companies are contributing to increased pollution and fossil fuel usage through their investments in Bitcoin.
According to Greenpeace’s findings, an alarming 62% of the global Bitcoin mining electricity in 2022 came from fossil fuels. This significant reliance on fossil fuels for Bitcoin mining raises concerns about the environmental consequences of this digital currency.
The report identifies several asset managers that are actively supporting Bitcoin, including BlackRock, Fidelity Investments, Vanguard, Citigroup, JP Morgan Chase, and Goldman Sachs. Greenpeace has criticized these companies for their lack of action regarding the impact of Bitcoin on communities and climate.
Among the asset managers, BlackRock has been labeled as the “worst contributor” by Greenpeace. The organization points out that BlackRock’s involvement in Bitcoin investments disregards its responsibility towards environmental sustainability.
JP Morgan Chase, on the other hand, has been identified as the “biggest Bitcoin backer” by Greenpeace. The organization highlights the need for JP Morgan Chase to take proactive measures to address the climate impact of its investments.
One of the key concerns raised by Greenpeace is the significant energy consumption associated with Bitcoin mining. In fact, the energy consumption of Bitcoin mining is equivalent to the entire annual carbon footprint of New Zealand. This staggering statistic emphasizes the immense environmental impact of Bitcoin mining.
Greenpeace argues that the unsustainable increase in energy consumption by the Bitcoin network contributes to climate change. The use of fossil fuels in Bitcoin mining operations further worsens the environmental impact by releasing large amounts of greenhouse gas emissions.
The findings of Greenpeace’s report serve as a call to action for asset managers to address the climate impact of their investments in Bitcoin. With the increasing popularity and adoption of cryptocurrencies, it is crucial for financial institutions to consider the environmental consequences of their actions.
As the world grapples with the pressing issue of climate change, it is essential for asset managers and other stakeholders to prioritize sustainable investment practices. By acknowledging and mitigating the climate impact of Bitcoin investments, asset managers can contribute to a more environmentally responsible financial sector.
