Calculating Carbon Intensity

Should ESG Investors Own Cryptocurrency?

The growing popularity of cryptocurrency has created a new wrinkle for investors—how to balance its potential upside against its inherent environmental and social impacts. A look at both sides of the issue.

Despite the recent exponential growth in the cryptocurrency industry, this emerging asset class leaves many open questions for investors who integrate environmental, social and governance (ESG) issues into their portfolios.

While crypto can offer some societal benefits—such as financial inclusion and the ability to “be your own bank”—there are also potential downsides, including its carbon footprint, prevalence of theft through hacks and lack of centralized governance.

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