RECONCILING ESG COMMITMENTS AND DIGITAL ASSET AMBITIONS

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RECONCILING ESG COMMITMENTS AND DIGITAL ASSET AMBITIONS

  • Jakub Smolinski, Victor Plante, Jasmine Phang, Hazel Leung
  • Published: 23 March 2022


The past two years have seen a radical shift in financial services institutions’ attitudes to – and adoption of – digital assets in the face of a dramatic expansion in the global cryptocurrency market. At the same time, this digital asset revolution looks to set on a collision course with another dominant current market dynamic: the ever-fiercer focus by governments, regulators, industry, investors, and consumers on Environmental, Social, and Governance (ESG) considerations.

Moving forward, alignment and compliance with emerging ESG standards will be a critical differentiator for long-term business success across financial, energy, and manufacturing markets globally. However, digital assets and the processes and technologies that underpin them are far from ESG friendly. So, can a bank’s digital asset ambitions be reconciled with its ESG commitments and goals?

In this paper, we explore the intersection of the fast-evolving digital assets space and banks and financial institutions’ emerging ESG obligations.

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