The Impact of the Top 3 Strategic Imperatives on Sustainability in the Metaverse

Transformative Megatrends

Why

• Metaverse can be a double-edged sword for sustainability.
• On the one hand, the infrastructure required to run metaverse platforms can consume immense energy.
• On the other hand, it transforms how we interact and engage with the physical world, providing a unique opportunity to address environmental issues, leading to a more sustainable future.

Frost Perspective

• Metaverse will reduce our reliance on physical tasks such as attending meetings or conferences, traveling to educational institutions, and commuting for events or recreation, among others, reducing the environmental footprint of many of these activities.
• Energy-efficient technology or the use of renewable energy sources can help with issues associated with providing the energy needed to set up the extensive infrastructure (compute power and storage).

Disruptive Technologies

Why

• The adoption of sustainable practices inside the metaverse is being fueled by a convergence of many technologies, including edge computing, blockchain, digital twins, artificial intelligence (AI), and extended reality (XR).
• Further progress in these technologies will contribute to a future where the development of the metaverse and environmental responsibilities go hand in hand.

Frost Perspective

• Several of these technologies (e.g., AI and digital twins) have the potential to eliminate inefficiencies related to energy use, resource allocation, and waste generation, minimize environmental impact through virtual production, and reduce carbon footprint.
• However, the metaverse is still in its nascent stages, and technological breakthroughs are required to offer end users a realistic and seamless metaverse experience.

Internal Challenges

Why

• Businesses looking to develop sustainable practices within the metaverse face several internal challenges, such as the lack of standardized metrics to measure the environmental impact of activities in the metaverse and an inability to strike a balance between sustainable practices vis-à-vis user experiences, as some restrictive measures may discourage users from engaging in the metaverse.

Frost Perspective

• Frost & Sullivan believes businesses should increasingly collaborate with standards bodies and other policymakers to help establish standardized metrics to benchmark their efforts toward sustainability and demonstrate progress.
• Similarly, businesses should foster innovative solutions or approaches that encourage sustainable practices without compromising user experience (e.g., gamified experiences).
• Investing in a greener metaverse now can position a business for success in the long run.

Growth Drivers

• Urban developers and federal governments can use the metaverse and digital twins to optimize urban infrastructure in cities for better resource management and environmental impact reduction. Sustainable considerations can be integrated from the ground up in urban planning efforts.
• Metaverse can lead to a reduction in resource consumption as virtual environments minimize the need for physical production of goods and services required in the real world.
• Metaverse not only decreases the requirement for physical resources, but also reduces the need to physically commute for work, education, or social events, leading to a significant reduction in emissions. This translates into a lower carbon footprint and, subsequently, reduced environmental impact.
• Metaverse platforms are introducing gamification elements that encourage users to engage in eco-friendly behaviors and educate them on various environmental issues, helping to promote a sustainable culture within the metaverse.

Growth Restraints

• The infrastructure required to power the metaverse, including data centers and network systems, in addition to cryptocurrency mining, demands significant energy. It often relies on non-renewable sources, which poses a substantial sustainability challenge.
• Virtual worlds gather different types of user data, including personal information, user behavior, and metadata from personal communication. Engaging in a virtual environment might expose users to continuous monitoring and hacking. Unauthorized access to the technology will enable hackers to carry out abusive behaviors, including showing dangerous immersive content to people in real time, which might leave them psychologically scarred for life. Such breaches can undermine trust and deter sustainable engagement.
• The lifecycle of digital assets, from creation to disposal, requires vast amounts of data storage, which contributes to digital waste. In addition, obsolete hardware contributes to electronic waste. Efficiently managing this waste without harming the environment remains a significant challenge.
• Unequal access to the necessary technology and high-speed internet can exacerbate social inequalities within the metaverse, limiting its accessibility and benefits to a privileged few. Overindulging in the metaverse may also have negative consequences, such as a disregard for real-world social relationships and the consequent feelings of loneliness and distress.