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How AI Can Help Businesses with ESG Reporting

04.12.2022

Game-changer

It will be a game-changer in competition. The main goal of the European Sustainability Reporting Guidelines is to fight greenwashing. Greenwashing is defined as businesses that pretend to be sustainable but in fact are not.

AI to help businesses by implementing ESG guidelines

AI can help businesses monitor, track and report on their ESG performance in an efficient and cost-effective manner. AI systems can be used to collect and analyze data from various sources to identify areas where a company is performing well and areas where it is not meeting its ESG objectives. This data can be used to create accurate and up-to-date ESG reports that provide a comprehensive overview of the company’s performance. AI can also help businesses identify opportunities for improvement and suggest potential solutions. AI can also be used to identify potential risks related to ESG performance. For example, AI can help companies identify potential risks related to supply chain management, water usage, and carbon emissions. By monitoring and analyzing data, AI systems can detect potential risks before they become a major problem.

This allows businesses to take action quickly to reduce risk and improve their ESG performance. In addition, AI can help businesses automate the process of generating ESG reports. AI systems can be used to generate reports quickly and accurately, allowing businesses to better meet their reporting deadlines as it speeds up this process by designing and prepare datasheets, help and clarify reporting requirements and compare two or more periods over time or with market benchmarks.

Finally, AI can help businesses share their ESG performance with stakeholders. AI-generated reports can be used to create engaging visuals that clearly present ESG performance metrics. This can help businesses communicate their ESG performance to investors, customers, and other stakeholders.

Sky Dust has the expertise in Esg reporting and uses AI to help it scale to as many as possible as we believe in the need for esg reporting as it helps to better determine the risks from business activities and better able to focus more specifically those elements that reduce climate change.