Are NFTs Sustainable? An ESG Perspective

Abstract

This chapter addresses the sustainability features of non-fungible tokens (NFT) through Environmental, Social, and Governance (ESG) criteria. Consistent with Sustainable Development Goals (SDGs), ESGs represent best practice standards used by investors to screen and back sustainable projects. NFT applications raise sustainability concerns that need to be foreseen with social and technological forecasting to attract investors before their standards become consolidated and ubiquitous. This chapter considers the main ESG parameters of existing BigTechs that are concerned with NFT applications. The chapter also includes a SWOT analysis that is pertinent to the NFT space. The findings of the chapter suggest that, whereas the impact of the digital footprint of energy-guzzling cryptocurrencies can be softened by the technological upgrade, the strongest ESG issues in fact concern the social and governance component; For instance, ludopathies may be exacerbated by 3D dependence, detaching addicted surfers from the real world.