An ESG Council Report from Ipsos reveals the potential of Artificial Intelligence (AI) to accelerate Environmental, Social, and Governance (ESG) progress by revolutionising data analysis.
In its report, “Reset or Retreat,” ISG revealed that AI enables more accurate, efficient, and real-time data collection, analysis, and reporting of ESG progress amidst increasing reporting demands that involve expanding workloads and skillsets, especially regarding environmental disclosures.
Underutilised AI
Yet, a staggering 74% of Council Members reported a lack of meaningful integration of AI technologies into their ESG strategy.
The report strongly recommends that companies prioritise investments in robust data collection, analysis, and reporting systems, including exploring innovative technologies like AI and blockchain, to alleviate the reporting burden on sustainability teams.
The report underscores that leveraging AI technologies to their full potential will significantly enhance ESG transparency across various stakeholder groups, from regulators to investors to the media.
It will also help Chief Sustainability Officers free up their time to focus on other priorities.
No silver bullet
“AI is no silver bullet for ESG professionals, though,” clarified the report, as some Council Members have ethical objections to using AI in ESG reporting, such as upcoming regulations and concerns about whether CSOs have sufficient expertise to drive its adoption.
The report acknowledges the challenges of implementing AI and other advanced technologies in ESG practices. It reassures sustainability leaders that while these technologies may make life easier in the long term, significant complexities exist.
Reset or retreat
The report stemmed from in-depth interviews with over fifty sustainability leaders across thirteen global markets.
