Metaverse and ESG Governance: Addressing Social and Environmental Challenges in the Virtual World

Abstract

The Metaverse, a virtual environment with enormous capabilities, can be defined as a world that has the power to change the manner individuals perceive technology, each other, and the surrounding world. This potential gives the possibility of significant ecology, social, and governance problems which should be resolved under an extensive sustainable development concept. This chapter is centered on the micro-level challenges of the Metaverse, such as the environmental, social, and governance (ESG) aspects, and proposes ways for the Metaverse to overcome the challenges. The methodology for this chapter is, therefore, the use of such literatures on the Metaverse, Metaverse Governance, and Sustainability. It is found that the biggest ESG challenges are going to be that of the metaverse and that there is a need to address these challenges to ensure a sustainable future. This chapter emphasizes the approaches to diminishing the environmental footprint of Metaverse, advocating diversity and empowerment, and providing sound governance and regulation in that field. The case studies elucidate about the effective projects which have made tremendous progress in these domains and can be an ideal model for a better Metaverse. This chapter underlines the point that ESG governance is one of the essential factors that can stand in the way of the Metaverse’s sustainability in the long run. The case studies in this chapter provide you with a real-world basis how this can be to study approach and can serve as a guide for future development in this area.

Citation

Sahdev, S.L., Hassan, A., Krishnan, C., Mariappan, J. and Chang, I.S. (2024), "Metaverse and ESG Governance: Addressing Social and Environmental Challenges in the Virtual World", Krishnan, C., Behl, A., Dash, S. and Yadav, P.D. (Ed.) The Metaverse Dilemma: Challenges and Opportunities for Business and Society, Emerald Publishing Limited, Leeds, pp. 149-161. https://doi.org/10.1108/978-1-83797-524-220241009