ESG Investing Conference

Impact Investing Conference

ESG Investing

52 companies representing $7 trillion worth of stock are exposed to cryptocurrencies Markets Insider52 companies representing $7 trillion worth of stock are exposed to cryptocurrencies Markets Insider52 companies representing $7 trillion worth of stock are exposed to cryptocurrencies Markets Insider

Impact Investing Conference

Impact Investing Forum 2023

London. Dec 05-06, 2023.

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According to MSCI, investors are increasingly exposed to cryptocurrencies as well as the risks associated with digital assets.
At least 52 of the companies covered by MSCI ESG Research have cryptocurrency exposure.
These 26 companies are also included in the MSCI’s flagship ACWI World Index.
According to MSCI, investors who are focused on governance, environmental, and social issues are more vulnerable to “creeping” exposure. According to the ESG team’s podcast, 52 of the 52 public companies that MSCI ESG Research covers have exposure to cryptocurrency, which amounts to approximately 6.6% of the total market cap. MSCI ESG Research stated that while most cryptocurrencies are speculative investments without much apparent utility, some have had limited success as genuine currency and many have posted impressive returns. “This growth has contributed both to the rise of cryptocurrency-exposed companies and efforts by established companies to gain cryptocurrency exposure.” A variety of companies are exposed, including Coinbase, a pure-play cryptocurrency exchange operator that went public in May. Facebook is another name. It does not make any revenue from digital coins, but is looking for ways to monetize it. Nvidia, a chipmaker that has a dedicated graphics-processing unit designed for professional cryptocurrency miners, is another name.

When newly listed cryptocurrency companies are added into indexes or when investors own companies directly or through indexes that venture into activities involving Bitcoin or other cryptocurrencies, crypto exposure can creep in, according to MSCI. The MSCI ACWI Index, which is the company’s flagship global equity benchmark, includes 26 crypto-exposed companies. It measures the performance of large- and medium-cap stocks in 23 developed markets and 27 emerging ones. The index has more than 2,900 constituents from 11 sectors. Investors with crypto exposure could be running contrary to their ESG goals. These include the potential for greenhouse-gas emissions and electronic waste. Governance risks include boards of cryptocurrency-exposed companies needing to adapt risk-management policies to issues such as cybersecurity and anti-money laundering practices.Read the original article on Business Insider

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