In 2020, investments in ESG sustainable funds more than doubled compared to the previous year, rising from 21 to 51 billion dollars –a sign that the world of finance, too, is increasingly paying attention to environmental issues, among others. ESG stands for environmental, social and governance: hence, related ESG funds denote those funds sensitive to such issues, providing buyers only with stock in companies that have scored highly in their sustainability rating.
Millennial investors are the main drivers of this phenomenon, as they have grasped that this is another way to fight climate change and support social inclusion. “They have sustainability concerns and are starting to realize we can address those through our investments” sums up Jon Hale, head of Morningstar, a company specialised in sustainable investments.
And this is perhaps a viewpoint that will also allow us to better understand bitcoin’s fluctuating trend. Although the most notorious cryptocurrency has little to do with traditional finance, it’s well known that millennials pay a lot of attention to bitcoins as a form of capital goods, which means that, unavoidably, their value is increasingly scrutinised in terms of sustainability, too.