ESG Compliance

Definition ∞ ESG compliance refers to an organization’s adherence to established standards and regulations related to Environmental, Social, and Governance factors. This involves meeting specific criteria concerning ecological impact, social responsibility, and corporate management practices. Companies demonstrate ESG compliance through transparent reporting and measurable actions. It assures stakeholders of ethical and sustainable operations.
Context ∞ In the digital asset space, ESG compliance is a growing concern, particularly regarding the environmental footprint of certain cryptocurrencies. News frequently reports on regulatory pressures and investor demands for greater transparency from blockchain projects. These demands drive efforts towards more sustainable practices.