Sustainable Investment

Definition ∞ Sustainable investment involves allocating capital to companies or projects that aim to generate financial returns while also contributing positively to environmental, social, and governance (ESG) factors. This approach considers long-term societal and ecological impact alongside profit objectives. It represents a conscientious financial allocation.
Context ∞ The digital asset sector is increasingly seeing sustainable investment principles applied, particularly in projects that utilize energy-efficient consensus mechanisms or develop blockchain solutions for environmental tracking and carbon credits. News reports often highlight the growing trend of ESG-focused funds allocating capital to green crypto initiatives. The broader debate around the environmental footprint of blockchain technology also features prominently.