Role of AI in Strengthening ESG Governance

Author:

Jayalakshmi M.1,Maria Sneha A.1,Girish S.1ORCID

Affiliation:

1. Christ University, India

Abstract

Socially conscious investors, especially Gen Z, value ethics over money. ESG reports are as important as financial reports for them. ESG ratings from various sources can puzzle these Gen Z investors, as there is no standardization in ESG data. Firstly, the chapter focuses on the need to integrate AI into ESG reporting by highlighting the limitations of mere frameworks such as GRI, SASB, and ISSB. Secondly, it emphasizes the difference between traditional reporting and AI-integrated ESG reporting. It also points out the challenges of AI integration and ways to overcome these challenges. Lastly, the chapter also proposes the need for a unified framework, making it easier for investors to compare and make decisions.

Publisher

IGI Global

Reference49 articles.

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