> For the complete documentation index, see [llms.txt](https://fatexdao.gitbook.io/fatexdao/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://fatexdao.gitbook.io/fatexdao/fatexdao-dapps-and-tokens/fxd-global-commodity-denomination/esg-w-natural-capital-asset-tokens.md).

# ESG w/ Natural Capital Asset Tokens

This page can be populated with *extreme* amounts of data to prove how the physical output, energy consumption, and pollutive output of the paper, plastic, brick & mortar central banking (aka the finance industry that is not FinTech/digital/dlt/DeFi) and forex institutions & exchanges combined with the inability of any multinational organization to end poverty and market volatility. 

## How/Why FxD Promotes ESG:

### Collateral Reserve Token Category:

#### One of the collateral reserve tokens is multi-nationally sanctioned, environmental "credits" like carbon/blue tax credits, and others yet to be developed, which the DAO will pro-actively encourage.  

#### Natural capital asset class quantification and proliferation is essential to the FxD protocol.

### Why:

1. **It fits the characteristical requirements of the reserve tokens, described** [**here**](/fatexdao/fatexdao-dapps-and-tokens/fxd-global-commodity-denomination/the-solution-is-fxd/black-swan-proof.md)**.**
2. **Sustainability is "good for business" if done right. (As is economic equality)**
3. **The point of FATExDAO, FATExFi & FxD is specific - because of the points made in the prior sections under the topic, it works.  The point of FATExDAO is idealistic & philosophically driven (as detailed** [**here**](/fatexdao/the-green-paper-a-declaration-of-the-freedom-from-centralized-illiquidity/the-green-paper/grievances.md)**) but realistic.**  
4. **Humanity should not have to wait for pandemics, wars, or global climate disasters to deliver solutions en masse.**  
5. **FxD will help provide the monetization base-layer for other industries, ideas, and research to receive funding that a quarterly, cash-flow-to-debt leveraged profit expectation cycle prevents. I.e.**    

### One example is necessary to prove the point:

*There are +20 billion plastic credit cards in supply, +/-20% of those are replaced each year (equal to dumping over 50 billion plastic cards in the ocean).  Credit cards are the 15th largest part of the finance & insurance sector*. **Please do the math...**  

**All of DeFi is *****discussing***** changing this** - why has there not been a solution that no one can debate because everyone wins and there is nothing ethically wrong with it? That is the CSR/ESG need...

It goes further...

### **It is unarguable that** unsustainable **practices/conditions exist:**

* Reusable bags should be used for groceries
* Bitcoin mining consumes a lot of energy 
* Equity markets trade mostly worthless "rights" to owning companies that are almost all leveraged, this is a new asset market, but a sub-sector of the two industries: Fin. & Tech.
  * Improper debt underwriting combined with market psychology that misaligns valuation with hyperactivity will *always come crashing down.* 
  * *The people running do not cause "bank runs", individual manipulators' or flawed entities'*
    * [80% *of all* companies did not exist before 1980](https://hbr.org/2016/12/the-scary-truth-about-corporate-survival).  

### **Innovation is the driving factor of success and liquidity.**  

* Poverty & under-developed countries can be cured by building infrastructures. 
  * This type of financing is *not profitable* for a private firm or one, single national interest and produces too low a yield short-term.
  * The existing institutions created by Bretton-Woods, or by the same event: World War 2 is intentionally not owned by one government: UN, IMF, WB have had since the 1950's to not accomplish the task. 

### Invention & exploration sustain and enhance the condition of humanity's life. **Nothing else...**