It is not only evil, crypto can also do good
Many people, when they hear the term cryptocurrency, tend to think of it as fake money because, for example, we cannot use it to buy a packet of chips, but it is no longer something we can deny or ignore.
Many in the crypto industry are working to alleviate the climate impact
It’s very much a real business, with nearly 19,000 cryptocurrencies in circulation currently worth around $1.75 trillion – about the same as the gross domestic product of Italy, the world’s eighth largest economy.
Cryptocurrency doesn’t have a good reputation among my Greenie friends because it uses a lot of energy. And I mean it a lot. For example, according to a recent White House report, “Annual global electricity use from the Bitcoin blockchain is estimated to be 90 to 145 billion kWh, with a theoretical range of 40 to 180 billion kWh.” But we all need to understand that the energy consumption does not come from transactions with the currency, it comes from the rewards that the miners receive for their work with a blockchain.
As a specialist in ESG and sustainability integration and communication, last year I became interested in the technology behind crypto and the data traceability that comes with it. I spent about 30 hours trying to understand it and I still call myself an amateur in this area.
So this article is not about educating you about crypto, it is about highlighting the fact that what can be perceived as evil can be transformed into good and can be communicated in a powerful way if we understand it and understand the good it can do.
That’s when I started reading and meeting several blockchain technology companies to demystify this matter, one of which was Zumo.
The data tells us that consumers, regulators and investors are all interested in addressing this technology’s sustainability impact and its downfalls. For example, the Crypto Climate Accord (CCA), the crypto industry’s own voluntary association on this issue, has put in place an ambitious 2030 net-zero goal and is working together to define standards, agree on reporting and tackle the problem at its source with ‘ proof of green’ solutions that target the industrial operators at the source of crypto-electricity consumption.
Zumo’s entire purpose as a blockchain technology company is to bring the benefits of blockchain and digital assets to people and businesses everywhere. It provides sustainable, simple and secure technologies to unlock the benefits of crypto and Web3. Zumo is one of the first signatories of the CCA, and it launched its own net-zero strategy in 2021.
Speaking to the firm’s board environment advisor, Kirsteen Harrison, she says: “Some proof-of-work cryptocurrencies (especially Bitcoin) are big users of electricity. The good thing is that we know how to decarbonise electricity production – the technology already exists, and the more we install, the more the price falls.
“We can achieve this decarbonization through renewable energy sources either directly (like cryptocurrency miners using renewable energy sources) or indirectly (via the purchase of renewable energy certificates, RECs). RECs are a market instrument recognized by the GHG protocol that can be used by anyone in the crypto ecosystem for to account for their own ‘share’ of electricity use. If we do this at scale within the crypto sector, we have a real opportunity to drive demand for renewable energy globally.”
Amelie Arras, Zumo’s Marketing Director, adds: “Sustainability is a key value for Zumo. From the beginning, we wanted to bring the benefits of crypto to everyone in a sustainable way. We knew we weren’t taking an easy path, we had big challenges, our first was breaking down two complex topics: crypto and decarbonization, and now we’re using that knowledge to build meaningful solutions.
“Every step of the way, we thrive on being transparent, simple and inclusive – that means inviting people to collaborate and join us on that journey. Our greatest strength has been the buy-in from everyone internally, and this has so far been key to our success.”
Until crypto becomes the norm, we need to communicate the features in a certain way. Here are my three recommendations for communicating the features:
- Cut to the action: Tell your audience what you need from them and what role they play in your crypto story.
- Cut to the emotions: take your audience to the moment where your crypto story will generate extreme emotions and trigger a sense of belonging.
- Cut to the experiences: Cement with the audience what lessons they should have learned from reading, watching or listening to the crypto product or service story.
Crypto and its features aren’t hard to communicate, it’s how you talk about it that makes or breaks your product and service. And before communicating the features, make sure the facts and figures are accurate to avoid reputational damage and avoid being accused of greenwashing.
About the author
Gihan Hyde is the award-winning communications specialist and founder of CommUnique, an ESG communications startup.
She has implemented ESG campaigns in eight sectors, in six countries over the past 20 years.
Her campaigns have had a positive impact on over 150,000 staff and 200,000 clients and have closed over £300 million in investment deals. Some of the clients she has advised on include the World Health Organization (WHO), HSBC, Barclays, M&S, SUEZ, Grundfos, Philip Morris, USAID and the Saudi government.
Get in touch with Gihan through LinkedIn or Twitter @gehanam.
