Sustainable Development

XR technologies are redefining business and climate strategies. Here's how

Innovations in sustainability: XR technology augments workforce training and optimizes manufacturing processes.

Innovations in sustainability: XR technology augments workforce training and optimizes manufacturing processes. Image: Global Collaboration Village: World Economic Forum, Accenture and Microsoft.

Natasha Novosel
Partner Engagement Lead, Global Collaboration Village, World Economic Forum
Flora McCrone
Lead, Immersive Interactions, Centre for Nature and Climate, World Economic Forum Geneva
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Virtual and Augmented Reality

  • Emerging technologies are driving innovations in sustainability, helping businesses tackle climate risks more efficiently.
  • XR boosts business efficiency and sustainability by optimizing impact through real-time simulations.
  • The Global Collaboration Village uses extended reality (XR) to unite leaders around taking action on climate.

The convergence of business, XR technologies, and environmental stewardship is opening up new opportunities and challenges as the climate crisis intensifies. XR, which includes virtual reality (VR), augmented reality (AR) and mixed reality (MR), is becoming a powerful tool to help leaders drive innovations in sustainability. This isn’t just a tech trend; it’s a major shift in how companies innovate, operate, and connect with stakeholders.

1. Virtual platforms for global collaboration

Virtual platforms such as the Global Collaboration Village show how XR could drive global collective action on climate issues. These technologies help leaders simulate climate scenarios and evaluate strategies. For instance, a company can use VR to explore how shifting to renewable energy might impact operations. This immersive approach deepens planning and long-term understanding.

Compelling data highlights XR’s potential: reports estimate that XR technologies could unlock $1.5 trillion in value for the global economy by 2030, with a significant portion of this value tied to sustainability initiatives.

XR is predicted to create substantial economic value by 2030.
XR is predicted to create substantial economic value by 2030. Image: PwC

The village helps leaders create real-world change with next-gen technology. Inside, decision-makers visualize data, simulate outcomes and collaborate globally to drive sustainable business practices. As businesses take on their role in a sustainable future, the mix of technology and environmental action will be vital in building a resilient global economy.

2. XR as a catalyst for innovations in sustainability and supply chains

XR technologies are now used across industries and federal agencies for tasks like workforce training, design and data visualization. A recent report by the US Government Accountability Office showcases a wide range of VR applications across federal agencies, including workforce training, data visualization, design, public outreach and even medical treatment.

These immersive technologies are being used for real-time decision-making, collaboration and safety improvement, offering valuable insights for businesses looking to adopt similar innovations.

XR workforce training, public outreach, data visualization innovations in sustainability
Government agencies are adopting XR for workforce training, public outreach, data visualization and more. Image: US Government Accountability Office

In the business sector, companies use XR to simulate strategies including reducing carbon footprints or optimizing supply chains. In the automotive industry, firms such as Ford and BMW use VR to train and design energy-efficient vehicles. These simulations speed up innovation and reduce waste and energy, cutting the environmental footprint.

3. XR-driven workforce training and education

XR technologies enable businesses to educate and engage their workforce in sustainability initiatives more effectively. Through immersive experiences, employees can visualize the environmental impact of their actions and decisions, fostering a culture of sustainability within the organization. This experiential learning approach is far more impactful than traditional methods, as it makes the abstract concept of the climate crisis more tangible and relatable.

This means businesses play a key role in the climate crisis as contributors and problem-solvers. With their extensive supply chains and resources, they have the responsibility and opportunity to lead change. For instance, companies can use AR to monitor carbon emissions in real-time, enabling data-driven decisions to reduce their footprint, especially as regulations and consumer demand for sustainability rise.

4. Transforming operations and supply chains

XR technologies are transforming supply chains and operations, improving sustainability and reducing environmental impact. Companies are adopting AR and MR to enhance real-time decisions, making processes more efficient and eco-friendly. AR helps optimize delivery routes, cutting fuel use, while MR allows remote monitoring, reducing the need for travel.

Leveraging immersive technology to address global supply chain disruptions.
Leveraging immersive technology to address global supply chain disruptions. Image: Global Collaboration Village: World Economic Forum, Accenture and Microsoft.

In manufacturing, XR creates digital twins – virtual replicas of assets – allowing real-time optimization. This boosts efficiency and helps identify environmental issues early, reducing waste and emissions to help companies meet sustainability goals while staying profitable.

5. Immersive tech to address the climate crisis

At the World Economic Forum’s Sustainable Development Impact Meetings during the UN’s 2024 Global Assembly, leaders are being immersed in the Climate Tipping Points Hub, visualizing our planet’s over 25 Earth system tipping points, varying temperature scenarios and the associated global risks. The emphasis will be on potential solutions for the Amazon tipping point in a year when the region is hosting high-level international biodiversity and G20 dialogues.

Through the Village, business, policy and civil society leaders can link Earth system tipping points, the risks posed to their supply chains, societies and ecosystems and the opportunities that would open up through prioritizing resilience. This not only aids leaders in their strategic planning but also fosters a deeper understanding of the long-term implications of their decisions.

XR is changing how businesses operate and prioritize climate action by playing with time and space to create virtual simulations linked to real-world scenarios. These tools allow leaders to map the future impact of their business decisions, proving XR’s role in shaping equitable solutions. From improving supply chains to transforming operations, XR empowers businesses to adopt scalable, data-driven innovations in sustainability that address the climate crisis with real actions.

The Global Collaboration Village is a World Economic Forum initiative, in partnership with Accenture and powered by Microsoft Mesh.

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World Economic Forum articles may be republished in accordance with the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International Public License, and in accordance with our Terms of Use.

The views expressed in this article are those of the author alone and not the World Economic Forum.

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