Sustainability and the Circular Economy in Virtualized Settings
Abstract
Supply chains are under mounting pressure to reconcile operational performance with environmental responsibility — a tension that conventional efficiency tools and isolated green initiatives have not resolved satisfactorily. This chapter examines how the industrial metaverse, as an integrative platform encompassing digital twins, extended reality interfaces, and AI-enabled analytics, can embed circular economy principles within supply chains. Drawing on recent scholarship, it traces alignment between closed-loop material flows and the informational closure enabled by metaverse environments. Attention is given to enabling conditions and persistent barriers — organisational, technological, and regulatory — shaping adoption. The chapter situates these developments within the digital economy, considering how financial digitalization and platform economics affect viability, and offers practical guidance followed by a research agenda.