The Role of Artificial Intelligence in Environment Social Governance Disclosure

Abstract

For achieving the necessary industrial progress “Artificial Intelligence” has been one of the greatest inventions, there are numerous societal and organizational gains promised by the efficiency of Artificial Intelligence. The recent advancements in “Artificial Intelligence” are affecting businesses all around the globe. Various aspects of business have been affected by the indulgence of Artificial Intelligence and so has the investor decision. The current situation demands sustainability as a key determinant. So, as the decision-making revolves around it. To measure the sustainability practice adopted by the corporate the benchmark is the Environment Social Governance (ESG) disclosure practice. It has been gaining attention in recent times and investors prefer to invest in the stocks of companies which have good disclosure scores. Both Intuitional as well as retail investors. The awareness of ESG disclosure has led to the creation of ESG funds as well to cater for these needs. The Investors willfully pay increased charges for ESG funds. The investor will sacrifice the current monetary return for the benefit of society. The ESG reporting has developed through a cluster of The ESG disclosure Framework and standards. The two have distinction at a higher level as their purpose and utility change. As per the SASB standards website, the sustainability framework provides guidelines which are principle-based. However, this issue and its related aspects have not been vastly studied. This paper attempts to exactly understand the role played by Artificial Intelligence in the environment of social governance disclosure practices and how it is affecting the investor’s attitude.