Unlocking Responsible AI for ESG Ways AI Can Drive Sustainability and Social Impact
Author: Akbar Mohammed, Principal Architect, Strategic Center
Corporate social responsibility (CSR) is gaining significance in shaping enterprises’ sociocultural, environmental, political, and ethical structure and brand identity. Hence, businesses seek to integrate sustainable practices into their operations for long-term, well-rounded growth. One way this is being achieved is through artificial intelligence (AI). This powerful tool helps enterprises improve their environmental, social, and governance (ESG) performance, enabling them to monitor and manage their impact on the environment, society, and stakeholders more effectively. Enterprises worldwide are already taking internal measures to address their environmental impact, such as implementing separate bins for food and plastic and factoring in employee flight travel to calculate their carbon footprint. Some industry leaders have gone even further by committing to net zero carbon emissions. Other companies are taking positive steps toward aligning their ESG initiatives with the UN’s Sustainable Development Goals (SDGs).
also complex. Conflicting global policies, varying levels of integration, and the challenges of balancing short-term financial interests with long-term environmental and governance goals indicate that enterprises are still near the beginning of their journey toward achieving ESG compliance. Many existing AI applications can be reconfigured to identify, monitor, and produce solutions for these challenges. Yet, despite its potential, AI needs to be more leveraged and remains untapped in measuring the impact of sustainability efforts and developing new approaches for more environmentally sustainable practices. Environmental Impact The impact of AI on the environmental facet of ESG has significant potential. AI technology is already being used to track greenhouse gas emissions, resource consumption, and weather changes. This data is then analyzed to provide insights that can help conserve natural resources and assist organizations in adopting more environmentally friendly practices. In the agricultural industry, for example, AI is helping inform decisions regarding adopting new approaches, such as regenerative agricultural practices, to promote environmen- tal sustainability. This involves farmers using the land to a point before shifting to a more sustainable practice while regenerating the previously exploited land for future use. Social Impact AI also plays a significant role in measuring and improving employee welfare in the workplace. Fractal implements AI to measure employee well-being through an in-house AI conversational chatbot that keeps a tab on the psychological well-being of employees. Questions are formulated, and a qualified team of specialists interprets results to ensure the human element remains the driving force behind the conclusions. Automated surveys are then released to specific employees based on their work hours, allowing for a more comprehensive analysis.
The application of artificial intelligence in environmental, social, and corporate governance represents a formidable force for positive change.
While large enterprises have started incorporating data governance and structures to measure their impact, the challenges facing ESG are unfortunately not only many but
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