KEY TAKEAWAYS:

• Proof-of-work cryptocurrencies raise a range of concerns for responsible investors, particularly on the topic of climate change risks.
• Climate impacts associated with the maintenance of the Bitcoin network can be seen to outweigh the benefit derived from a digital store of value.
• ESG data can be leveraged to assess companies involved in the wider Bitcoin ecosystem.
• The governance structure of Bitcoin has proven remarkably resilient in its relatively short history.
• Although there are initiatives to make Bitcoin less impactful for climate, the technologies and innovations that would enable such transition are not yet realized.
• Future iterations of digital assets may perform differently in terms of ESG risks.