ESG Rewards

Definition ∞ ESG rewards are incentives or benefits provided to individuals or entities for demonstrating adherence to Environmental, Social, and Governance principles. These rewards aim to encourage sustainable practices, responsible conduct, and ethical operations. They can manifest as financial bonuses, preferential investment terms, or public recognition. Such mechanisms promote positive societal and ecological outcomes.
Context ∞ The concept of ESG rewards is emerging in the crypto sphere, with discussions around protocols that might offer tokens or other incentives for participation in environmentally friendly mining or social impact initiatives. News may highlight projects experimenting with these reward systems. These systems align digital asset activities with broader sustainability goals.