01/08/2024

AI can Offer Benefits, Pitfalls for Sustainability Reporting

Understanding AI's potentials in ESG reporting

The disclosure of environmental, social and governance issues is increasingly a red button topic for investors and companies. Faced with new mandatory disclosure rules, they continue to grapple with ongoing challenges around the lack of standardisation in myriad disclosure standards and frameworks.

For example, there is no consensus on the metrics that are used to demonstrate progress, nor a standard approach to measurement. Indeed, some frameworks require a quarterly metric, while others require measurement annually.

So, will the advent of artificial intelligence (AI) bring powerful new tools that will help the industry solve those challenges, or will lack of standards and ethics around the use of generative AI itself further muddy the reporting waters?

Please select this link to read the complete article from Reuters.