ESG stands for Environmental, Social, and Governance. Investors are increasingly applying these non-financial factors as part of their analysis process to identify material risks and growth opportunities. The huge rise in popularity of Bitcoin — and the growing interest by mainstream financial institutions in virtual assets as an investable and tradable asset class — has shone a light on the cryptocurrency industry’s environmental, social, and governance (ESG) performance.
Sustainable investing is a forward-looking approach that aims to deliver a long-term sustainable financial return in a fast-changing world.
Environmental, social and governance (ESG) factors will increasingly affect the ability of companies to operate and generate returns, today and over the long term. ESG factors also represent opportunities that investors can capture as companies innovate to build a sustainable future.
Investors in cryptocurrency miners, in crypto asset service providers, and even in companies that put crypto assets on their balance sheets must now weigh the potential for increased returns against the possible negative impact on their ESG credentials.