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ESG Requirements

Definition

ESG requirements refer to criteria related to environmental, social, and governance factors that organizations must meet. These standards guide corporate conduct and investment decisions, assessing a company’s impact on sustainability, societal welfare, and ethical operational practices. In the digital asset sector, ESG considerations address the energy consumption of blockchain networks, the social impact of decentralized finance, and the governance structures of crypto projects. Adherence to these requirements influences investor sentiment and regulatory scrutiny.