KPMG is placing strong emphasis on how AI for sustainability reporting can transform the way organizations manage ESG efforts. Maura Hodge, the U.S. ESG leader at KPMG, believes that AI enables Chief Sustainability Officers (CSOs) to gather, process, and interpret large volumes of data faster and with greater accuracy. As a result, businesses can produce more reliable sustainability reports while streamlining their internal processes.
Today, companies face increasing pressure to deliver transparent, data-backed ESG results. AI tools make it easier to detect inefficiencies, measure carbon footprints, and evaluate supply chain sustainability. At the same time, they help ensure that organizations meet ever-evolving regulatory standards. By adopting these technologies, businesses can not only stay compliant but also make informed decisions that benefit both operations and the planet.
Yet, there’s a flip side to this digital leap. One major concern is the energy required to power AI tools. These models, especially those used for large-scale analysis, can consume vast amounts of electricity. KPMG doesn’t ignore this downside. Instead, it encourages businesses to choose more energy-efficient systems and rely on renewable energy whenever possible. This allows companies to enjoy the advantages of AI while staying true to their sustainability commitments.
Best Practices to Maximize AI for Sustainability Reporting
KPMG recommends a thoughtful approach when integrating AI for sustainability reporting. The key is to ensure that these tools serve both the company and its environmental goals. Here are four proven strategies:
- Unify Data Sources: ESG data often comes from multiple departments and systems. Centralizing this information enables companies to generate cohesive and accurate reports.
- Automate Routine Workflows: AI can handle time-consuming tasks like tracking emissions or compiling resource usage data. This frees up human teams for strategic analysis.
- Leverage Predictive Capabilities: AI can forecast potential risks, helping companies prepare for regulatory changes or environmental disruptions.
- Share Insights Clearly: Transparency matters. Businesses should communicate AI-driven findings to stakeholders to build trust and drive accountability.
These actions do more than just reduce workload—they help companies plan smarter, act faster, and remain agile in an unpredictable global climate.
Incorporating AI isn’t just about technology—it’s about using the right tools to support long-term sustainability goals. With KPMG’s guidance, businesses can strike a balance between innovation and responsibility.
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News Source: esgdive.com
