What it takes to keep crypto safe
Part five of a five-part series on strengthening Canada’s blockchain ecosystem
Brane Inc. is dedicated to improving its environmental footprint, for example, by purchasing carbon offsets. istock.com
Mindful growth, a focus on sustainability
If you’ve heard anything at all about cryptocurrency, you’ve probably also heard that it is a major environmental concern. One Earth.org article noted that a single year of bitcoin’s energy use could power all the tea kettles in the U.K. for 29 years. Clever as they are, comparisons like this lack an important element – meaningful context. For example, cryptocurrency’s energy use is still a fraction of that of the traditional banking industry.
The challenge, however, is real. China comprehensively banned bitcoin mining there in June after several increasingly restrictive bans. While the bans are more likely spurred by the potential for cryptocurrency to undermine China’s state-controlled banking, the resulting exodus is seen as a huge opportunity for energy-efficient miners in regions with renewable power sources.
It also highlights the urgency of significantly reducing crypto’s emissions footprint, even as the sector continues to grow exponentially. It’s something that sector leaders take very seriously, says Emile Scheffel, vice president of operations at Brane Inc.
“Another value that we’ve prioritized is environmental sustainability – giving our clients confidence that when they choose Brane as a partner, they get to be part of the solution.”
Canada’s first independent crypto custody solutions company, Brane was also the first crypto custody company to sign on to the Crypto Climate Accord, a private sector-led initiative inspired by the Paris Climate Agreement. The accord involves a commitment by its signatories to be carbon neutral by 2030, and provides a forum for participants to share knowledge and collaborate to reduce emissions and environmental impact across the crypto ecosystem.
“We’ve spent a lot of time defining our core values as a company,” says Mr. Scheffel. “We start with independence, which means that our clients can trust that we are free of conflicts of interest, they have transparency on the value of their assets, and their access to those assets is protected. Another value that we’ve prioritized is environmental sustainability – giving our clients confidence that when they choose Brane as a partner, they get to be part of the solution.”
One of the earliest signatories of the Crypto Climate Accord was DMG Blockchain Solutions, a Vancouver-based company that has established itself as a worldwide leader in sustainable crypto mining by using greener energy sources. DMG is a strategic investor in Brane; its CEO Sheldon Bennett sits on Brane’s board of directors. From the start, the company has grown its business mindfully, with a sustainability lens. “It means factoring emissions into every decision that we make, from how much office space we need, to how we manage business travel, to what kind of printer paper we choose,” says Mr. Scheffel. “It’s weaving sustainability into our corporate culture.”
That process included identifying the best provider of carbon offsets, he says. “We settled on Carbonzero, the leading greenhouse gas measurement and carbon offset provider in Canada.”
After an involved inventory of the company’s environmental impacts, Brane purchased carbon offsets to become operationally carbon neutral and support a major afforestation project in Northern Ontario.
As it continues to grow, the company will benchmark its emissions annually, figuring out ways to reduce its environmental impacts along the way. “It’s about finding more sustainable ways to do everything that we do,” says Mr. Scheffel.
For more stories from this feature, visit globeandmail.com
To view the full report as it appeared in The Globe's print edition: Cryptocurrency Series 2021