Metaverse and ESG Digital Transformation Accelerates Sustainability

©2021 TechIPm, LLC All Rights Reserved www.techipm.com
Metaverse
based
ESG Digital Transformation
for
Accelerating Sustainability
August 18, 2021
Alex G. Lee

©2021 TechIPm, LLC All Rights Reserved
I. Metaverse Ecosystem
-Metaverse Taxonomy
-Metaverse Examples
-Facebook Metaverse Vision
-Microsoft Metaverse Solution
-Nissan Metaverse Use Case
-Metaverse Industry Ecosystem
-Metaverse Next
II. ESG Sustainability
-ESG Sustainability Imperative
-UN Sustainable Development Goals (SDGs)
-ESG Digital Transformation (DX)
-The Fourth Wave of Environmentalism
-Microsoft AI for Earth Project
-UPCO2 Blockchain based Carbon Credits Token Project
-BlocPower: Fighting Climate Change with IoT & Data
-AI Blockchain IoT for ESG DX AT A Glance
-ESG DX Innovation Insights from Patents
-ESG DX for Sustainable Business Innovation & Growth
-ESG DX Forum
III. Metaverse for ESG Sustainability
-Dassault Systemes Digital Twins for Sustainability
-Microsoft Metaverse for Sustainability Use Cases
-Metaverse for Sustainable Smart City (ESG City) Development
Agenda

Metaverse Ecosystem

Metaverse Taxonomy
The metaverse is a collective virtual shared space, created by the convergence of virtually
enhanced physical reality and physically persistent virtual space, including the sum of all
virtual worlds, augmented reality, and the Internet. (Wikipedia:
https://en.wikipedia.org/wiki/Metaverse)
The metaverse is a virtual world constructed on the Internet where people can interact freely
in a variety of ways and forms. By utilizing technologies such as AR (augmented reality), VR (virtual
reality), MR (mixed reality), and XR (cross reality), the Metaverse is able to connect the digital
world and the real world. (Nissan: https://www.nissan
global.com/EN/TECHNOLOGY/OVERVIEW/i2v.html)
The metaverse is a network of always-on virtual environments in which many people can
interact with one another and digital objects while operating virtual representations – or
avatars – of themselves. Think of a combination of immersive virtual reality, a massively multiplayer
online role-playing game and the web. (The CONVERSION: https://theconversation.com/what-is-
the-metaverse-2-media-and-information-experts-explain-165731
The metaverse is typically used to describe the concept of a future iteration of the Internet, made
up of persistent, shared, 3D virtual spaces linked into a perceived virtual universe. (Forbes:
https://www.forbes.com/sites/cathyhackl/2020/07/05/the-metaverse-is-coming--its-a-very-big-
deal/?sh=7d5ffc1f440f)
The metaverse refers to a variety of virtual experiences, environments and assets. (The New
York Times: https://www.nytimes.com/2021/07/10/style/metaverse-virtual-worlds.html)

Metaverse Examples
Arcona AR Metaverse: https://www.youtube.com/watch?v=o0kFlw7NEew
Digital Twins: https://www.youtube.com/watch?v=GAkB98ewcjI&t=7s
NFTs and the Metaverse: https://www.youtube.com/watch?v=ANO29CzQXUA
Apple Glasses: https://www.youtube.com/watch?v=5QimDrnA8wM

Facebook Metaverse Vision
Source. https://www.cnbc.com/2021/07/26/facebook-creates-exec-team-to-work-on-metaverse.html

Microsoft Metaverse Solution
“Converging the physical and digital world with digital twins, mixed reality, and metaverse apps.
Metaverse apps are the culmination of the intelligent cloud and intelligent edge working in
harmony together—at their foundation is digital twins. Digital twins enable you to create rich digital
models of anything physical from simple assets or products to complex environments. Once it’s
modeled, it can be brought to life and synchronized with the physical world using two-way IoT
connections. This initial binding of the physical and digital is foundational to enabling
metaverse apps.”
Source. https://azure.microsoft.com/en-us/blog/converging-the-physical-and-digital-with-digital-twins-mixed-reality-and-metaverse-
apps/

Nissan Metaverse Use Case
People joining through the Metaverse appear as 3D avatars in the real world through MR
(Mixed Reality), letting people in both worlds share the experience of space and movement in
real-time. A family member or friend from anywhere in the world can join the vehicle as an avatar
to accompany on the journey via the Metaverse. The avatar would occupy a seating position to give
a sense they are actually in the vehicle. If needing driving instruction or guidance, a pro driver
from the Metaverse could join the drive as an avatar and assist in real-time.
*Digital twin: A digital representation of the physical world including vehicles, buildings and
infrastructure is created in real-time through massive amounts of data collected through
IoT/sensing technology. Linked to virtual spaces and the real world, the Digital Twin can be utilized
to share information and support augmented and mixed reality interfaces in the real world.

Metaverse Industry Ecosystem
Source. https://newzoo.com/insights/infographics/metaverse-ecosystem-
infographic/
Source. https://www.gsma.com/futurenetworks/wiki/cloud-ar-vr-whitepaper/
Source. https://robindchnt.medium.com/the-current-state-of-industrial-
startups-in-europe-an-update-september-2020-908b22e862d1

Metaverse Next
Metaverse Today: A collection of disconnected digital worlds with limited physical persistence
that are connected with the physical world in which people and digital representations of people
(digital proxy avatars) can partially interact with one another and digital objects/environments
(including digital proxy twins) with limited reality.
Metaverse Next: A collection of fully connected digital worlds with physical persistence that are
converged with the physical world in which people and digital representations of people (digital
people) can fully interact with one another and digital objects/environments (including digital
twins) with full reality.
Metaverse Next is the converged world of physical world and virtual world that is hyper-connected,
hyper-visualized, hyper-interacted, and hyper-reality enabled. Development of the Metaverse Next
requires the convergence of legacy metaverse technologies and all other digital/ICT technologies.
Metaverse Next will bring a paradigm shift of digital revolution.
Digital Twin Innovation + Reality Technology Innovation + Digital/ICT Innovation

Appendix: AI Digital Twin Avatars – Digital Ours
Source.
https://www.youtube.com/watch?v=PHQhCiVLRp
E
Source. https://oben.me/about

Appendix: Extended Reality
Source. https://www.youtube.com/watch?v=U8ex4rLMwLU
Source. https://www.youtube.com/watch?v=iF1cccHpUWE
Teslasuit - Extended Reality xR Extended Reality with Kia Motors

ESG Digital Transformation
for
Sustainability

ESG Sustainability Imperative

Demo video Link: https://www.youtube.com/watch?v=iZB-U0zrzr8
Topic modeling for ESG knowledge map development
Text summarization for ESG trend analysis
Text analytics & classification for opportunity/risk/impact scoring using internal
information (ESG reports) & external information (SEC reports, earning calls)
ESG scoring with respect to Stock earnings & volatility analysis
Sentiment analysis for Greenwashing detection
Semantic sentiment search & analysis for advanced ESG performance rating
- Controversial activities detection
- Supervised learning for ESG classification via auto-labeling regarding
business/industry/jurisdiction-specific materiality determination and
performance scoring
Appendix: AI Applications for ESG Management and Investing

Appendix: ESG Knowledge Map

The Sustainable Development Goals (SDGs) are a collection of 17 interlinked
global goals designed to be a "blueprint to achieve a better and more
sustainable future for all". The SDGs were set up in 2015 by the UN General
Assembly and are intended to be achieved by the year 2030.
(https://sdgs.un.org/goals)
UN Sustainable Development Goals (SDGs)

UN SDG IMPACT STANDARDS Enterprises: Integrating impact management
into Enterprises’ decision-making to optimize their contribution to sustainable
development and the SDGs
UN SDG IMPACT STANDARDS Private Equity Funds: Impact management
for Private Equity, Debt and Venture Capital Funds committed to contributing
positively to sustainable development and achieving the SDGs
UN SDG IMPACT STANDARDS Bond Issuers: Integrating impact
management into Bond Issuers’ decision-making to optimize their contribution
to sustainable develop
Appendix Sustainability Impacts Management

Appendix: Sustainability Impact Assessment Solution
A company
A Com.

Appendix: FinScience ESG AI Solution Details

Appendix: Sustainability Impact Assessment for S&P 500 High-Tech

Sustainability Impact Corporate Awards (SICA)
Sustainability Impact and Sustainable Development Goals (SISDGS) Initiative (https://sisdgs.org/)
will host an awards commencement event in best practice of UN SDG sustainability impacts
management on August 21 (https://sisdgs.org/awards-ceremony). Participating companies will be
given one of the two types of awards during the Awards Ceremony:
Sustainability Impact Corporate Performance
Enterprises with remarkable effort in integrating sustainable management into business operation.
Sustainability Impact Corporate Excellence
Enterprises with significant effort and intense commitment in putting forward sustainability impacts.
TTI Global Impact Awards
Top Tier Impact (TTI) Group (https://www.toptierimpact.com/) will host an awards commencement
event to give recognition to the most impactful innovators in sustainability worldwide on August 17
(https://www.toptierimpact.com/impact-awards/ceremony). The ceremony is taking place in a virtual
environment, where can interact live with the avatars of all attendees (metaverse).
Awards Categories: Agriculture & Foods, Consumer & Retail, Financial Services, Education &
Media, Energy & Environment, Healthcare & Wellbeing, Sustainable Cities & Real Estate, Diversity
& Inclusion
Appendix: Sustainability Impact Awards

Global assessment of countries' progress towards achieving the UN
Sustainable Development Goals (https://dashboards.sdgindex.org/rankings)
Appendix: National UN SDG Performance Ranking

ESG digital transformation (DX) refers to the integration of the digital
technology into all domains of ESG to transform sustainability management,
sustainable investing, and sustainable development in innovative ways .
Artificial Intelligence (AI), Blockchain, Internet of Things (IoT) are the catalyst
for the ESG DX.
ESG Digital Transformation (DX)

The Fourth Wave of Environmentalism
Potential of digital technological innovation to support environmental
sustainability efforts: https://www.weforum.org/agenda/2018/05/how-
technology-is-driving-a-fourth-wave-of-environmentalism/

Microsoft AI for Earth Project
Source: https://www.youtube.com/watch?v=f8wPULL7VYw

Appendix: AI Innovation State Of The Art
3D Image Recognition

Appendix: AI for Climate Change
Talk by Prof. Yoshua Bengio@UN/ITU AI for Good Global Summit
Link: https://www.youtube.com/watch?v=PZlLLTDIR7U

UPCO2 Blockchain based Carbon Credits Token Project
Source: https://www.youtube.com/watch?v=qsXo3hJTVGk

Appendix: Blockchain State Of The Art: Issues with Public Chain
Directed Acyclic Graph (DAG): IOTA, Locus Chain
Blockchain Interoperability
How to communicate/transact across different blockchain networks?
Layer 1 approach: multichain/cross-chain blockchain networks -
Cosmos/Polkadot
Layer 2 approach: relays/sidechains/cross-chain swaps -
Plasma/Rollups
Blockchain Scalability
High scalability can process high volume transactions/achieve
high TPSs (transaction per second)
Layer 1 approach: Ethereum’s dynamic sharding/ Polkadot
Layer 2 approach: Bitcoin’s Lightning Network/ Plasma/StarkWare

BlocPower: Fighting Climate Change with IoT & Data
Source: https://www.youtube.com/watch?v=Du0iYMHeJoc

Appendix: IoT Innovation State Of The Art - 5G & Edge AI
Source: https://www.researchgate.net/publication/342402668_Towards_Edge_Intelligence_Multi-
Access_Edge_Computing_for_5G_and_Internet_of_Things; https://jelvix.com/blog/what-is-edge-computing

AI Blockchain IoT for ESG DX AT A Glance

AI Blockchain IoT for ESG Digital Transformation AT A Glance

Around 100,000 patent applications in the USPTO/EPO/IPO during the period of
January 1, 2010 - September 30, 2020 in priority date that specifically describe the ESG
related AI, Blockchain, IoT technologies are searched and reviewed. 625 published
patent applications that are related to ESG digital transformation innovation are selected
for detail analysis.
ESG DX Innovation Insights from Patents

Appendix: AI Blockchain IoT Innovation Insights from Patents
Ref. https://www.slideshare.net/alexglee/ai-blockchain-iot-convergence-insights-from-patents

1. Use Case for Reducing Carbon Footprint (AI + IoT)
2. Use Case for Increasing Renewable Energy Use (AI + Blockchain)
3. Use Case for Waste Management (AI +Blockchain+IoT)
4. Use Case for Workplace/Workforce Management in Social-Human Care
(AI+IoT)
5. Use Case for Cybersecurity & Privacy in Social-Business Relationship
Management (AI +Blockchain+IoT)
6. Use Case for Corporate Governance (Blockchain)
Appendix: AI Blockchain IoT Convergence for ESG DX Insights
from Patents
Ref. https://www.slideshare.net/alexglee/ai-blockchain-iot-convergence-for-esg-digital-
transformation-insights-from-patents-248353384

“By making patents with low carbon technology applications freely available to
all, we hope to encourage and accelerate the innovation humanity needs to
avert a climate disaster. Initially, hundreds of patents will be made available,
with the intention to add to this list as more patents become available and
others join the Low Carbon Patent Pledge.”
Appendix: Low-Carbon Patent Pledge
Ref. https://lowcarbonpatentpledge.org/

ESG DX enables effective integration of ESG sustainability into business
strategy, model, and operations based on data-driven material ESG
risks/opportunities/impacts assessment across supply and value chain.
ESG DX enables ESG sustainability data informed decision-making to lead an
ESG sustainable company.
ESG DX enables ESG sustainability data gathering and sharing for sustainable
development of innovative products/services and their manufacturing/providing.
ESG DX enables ESG sustainability serve as a growth engine by innovating
company’s operations, products and services, as well as creating new revenue
streams.
ESG DX enables automation of ESG sustainability performance measurement
and reporting process.
ESG DX for Sustainable Business Innovation & Growth
Source. https://www.weforum.org/agenda/2021/03/here-s-how-digital-transformation-and-sustainability-can-
flourish-together/

Forum for ESG + digital transformation (DX) integrated management for
sustainability impacts & digital technology innovation for sustainable
development acceleration.
LinkedIn Group: https://www.linkedin.com/groups/8956651/
Facebook Group: https://www.facebook.com/groups/822562128365739
ESG DX Forum

Appendix: ESG DX Solutions for Metrics Digitalization & Reporting
Automation Exploiting Existing IT/Digital Technology System
Source. Efraim Turban; Carol Pollard; Gregory Wood. Information Technology for Management: Driving Digital Transformation to Increase Local and Global Performance, Growth and Sustainability,

Metaverse
for
ESG Sustainability

Dassault Systemes Digital Twins for Sustainability
Source: https://www.youtube.com/watch?v=Du0iYMHeJoc

Microsoft Metaverse for Sustainability Use Cases
“What if you could have a digital twin of any physical asset or environment? One that empowered
you to run simulations to discover things that are important to you. To understand the past and
predict the future. To apply AI to sense that environment and automate things. To interact with that
digital twin and all the insights it contains in a collaborative way in mixed reality. All this is happening
on the Microsoft Cloud with leading edge companies taking advantage of digital twins, mixed reality,
AI, IoT, and the power of the intelligent cloud and the intelligent edge. Learn about the services in
the Microsoft Cloud that enable these metaverse applications to drive transformational business
outcomes.”
Source. https://azure.microsoft.com/en-us/blog/converging-the-physical-and-digital-with-digital-twins-mixed-reality-and-metaverse-
apps/

Metaverse for Sustainable Smart City (ESG City) Development
Cities are responsible for more than two-thirds of the world’s energy use and greenhouse gas
(GHG) emissions. A comprehensive reduction in GHG emissions requires an increased focus on
transforming energy use in buildings, transportation systems, as well as a shift from fossil fuels to
renewable energy sources. It also requires a holistic approach to the de-carbonization of city
operations, infrastructure, and services (e.g., waste management systems).
Integrated Environmental Solutions (IES) developed the environmental digital twin technology that
can reduce carbon emissions of cities worldwide. The environmental digital twin enables energy-
efficient design and continuous optimization of buildings using AI by incorporating real-world
operational data obtained by IoT sensors.
The city of York is the first city in the UK to use a real-time
transport model for live traffic management exploiting digital twins.
Digital twins can help to realistically simulate and analyze a city’s
current and future traffic, to test and validate different measures
and thus find the best locations for new traffic.
Digital twins can provide a holistic view of a utility’s electricity/water
systems and enable data-driven decision-making for
energy-efficient and resource-saving management of the systems.
Metaverse City Management Center enable citi-wide ESG
Sustainability monitoring and control exploiting integrated hierarchies
of digital twins (metaverse).
Source. https://learn.iesve.com/digital-twin-
white-paper/?utm_source=ies-
website&utm_campaign=navigant

Appendix: u-City Development Projects in S. Korea

Appendix: ESG City Development Projects in S. Korea

Thank you!

Metaverse and ESG Digital Transformation Accelerates Sustainability

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