By the ERShares team
ERShares’ proprietary methodology, the Entrepreneur Factor, has incorporated ESG factors since its inception. ESG is an integral part of ERShares’ investment philosophy and therefore the company is rarely faced with a trade-off between investment opportunities and ESG policy compliance throughout the investment process. .
The firm positions itself as a thought leader and has taken measurable steps to encourage the companies in which they invest to take ESG angles into account. They realize that beyond encouraging ESG initiatives specific to previous companies, it is much more critical and impactful to raise awareness of ESG issues at hand.
Bitcoin’s energy consumption and environmental impact now have extremely large unintended consequences as mainstream stories suggest. Therefore, the ERShares team has worked to frame the issue and oppose Bitcoin as it uses a considerable amount of energy, the proportion of renewable energy used remains unclear, and regulations regarding the cryptocurrency as a whole remain. nebulae.
Bitcoin mining electricity use, emissions too high
Blockchain technology, while an incredible technological breakthrough, has amazing and obvious environmental footprints.
Energy consumption is rooted in “crypto mining” which makes digital currencies greedy for energy. Researchers believe that “mining Bitcoin, the most popular blockchain-based currency, uses more electricity than entire countries like Argentina” (NY Times).
Although it represents only a small portion of total global transactions, the carbon footprint involved compares with the carbon footprint of entire countries. Bitcoin energy emissions alone can further exacerbate global warming far beyond levels that can potentially lead to even more adverse effects of climate change.
Gradually, the environmental impact of cryptocurrencies is starting to upset climate policy. “Left unchecked, Bitcoin mining in China – where about two-thirds of the world’s blockchain mining takes place – could make it difficult for the world’s biggest polluter to meet its targets.” climatic. China’s Inner Mongolia region recently declared that it was preparing to ban the practice because it hampers the province’s efforts to meet new carbon emissions targets set by the national government ”(NY Times). As a result, governments around the world are starting to crack down on cryptocurrency mining and lock in new policies on climate change.
ERShares’ position on Bitcoin
ERShares has set its own standards with a clear policy of not investing in Bitcoin for this very reason. In addition, most of their employees have adopted this policy in their personal portfolios for the same reason.
The ERShares team also educates the public through its media feeds. For example, Coinbase (COIN) made history as the first major cryptocurrency company to list its shares on a U.S. stock exchange, pushing its valuation to nearly $ 100 billion. (NY Times) While this has been hailed as a historic moment for global digital currencies, the company has also addressed the negative impact of the action on environmental and regulatory issues on the rise since its recent debut.
In the financial sector, the energy consumption of digital currency can be seen as insignificant compared to the implications of traditional banking. Therefore, ERShares is ensuring that investors are more aware of the Bitcoin system and its indirect effect on ESG.
Efforts are being made to make cryptocurrency technology more environmentally sustainable. Yet until they are enacted, ERShares will continue to oppose Bitcoin and gain recognition as a thought leader within the global financial industry.
Entrepreneurs: “Aware of the long-term consequences”
Behind the companies in which ERShares invests, there are entrepreneurs who work as thought leaders, very aligned with the team culture of the investment manager. These companies are created by entrepreneurs who have identified weak points in their personal lives and continue to develop new solutions. ERShares academic research also dates back twenty years and demonstrates the continued outperformance of the competition due to entrepreneurs who create a unique culture. Overall, they are aware of the long-term consequences and use their resources in a productive and distributed manner.
Beyond the fundamental issue of Bitcoin, entrepreneurs think differently about innovation and consider the potential negative implications of disrupting innovation. Thus, ERShares strongly believes that the companies in which they invest and present their investors with opportunities are working to embed the same level of awareness within their organizations as the internal team at ERShares.
ERShares is an investment management company that focuses on entrepreneurial stocks. Their flagship ETFs are the ETF ERShares Entrepreneurs (ENTR) and the ETF ERShares NextGen Entrepreneurs (ERSX).
Past performance is no guarantee of future results. Please refer to the following information: https://entrepreneurshares.com/disclosures/
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