Many medium-sized companies face the pressing challenge of integrating Environmental, Social, and Governance (ESG) factors into their business practices to create a more sustainable future. To promote this, regulatory frameworks such as the Corporate Sustainability Reporting Directive (CSRD) have been introduced. But how can company effectively and efficiently meet the requirements of these guidelines?
Nowadays, people increasingly turn to ChatGPT and similar tools first to save work and complete tasks as quickly as possible. But is it really that easy when it comes to implementing the CSRD, creating a CO₂ balance sheet, and other sustainability statements?
The good news first – Artificial Intelligence can not only automate processes but also enable a more precise and comprehensive analysis of ESG data. The bad news: it can only ever be seen as a supporting element. There is no way around personally engaging with the generated content.
In this article, we will take a closer look at how AI is already transforming ESG reporting at Code Gaia today and in the future.
Inhaltsverzeichnis
- Who works on Artificial Intelligence at Code Gaia?
- How is Artificial Intelligence used in ESG reporting at Code Gaia?
- What is Code Gaia planning for AI in ESG reporting?
- ESG Reporting and Artificial Intelligence: A Conclusion
1. Who works on Artificial Intelligence at Code Gaia?
It is always important to remember that behind AI are people who train it with their expertise before the technology can finally be used as a supporting element.
AI functionality has been developed as part of the product at Code Gaia from the very beginning. Dr. Sebastian Beschke, Head of Engineering, brings the ideal qualifications to apply the latest technologies precisely to sustainability challenges with his PhD in Natural Language Processing and experience in diverse Data Science projects. The entire versatile engineering team of software engineers and data scientists is constantly working on improving our AI functions.
Supporting him is our Head of Sustainability, Phillip Blumenthal, a certified ESG specialist with more than 20 years of experience in corporate environmental, ESG, and sustainability management. He is Code Gaia’s expert on technical sustainability issues, including legal regulations, reporting, and methodological requirements.
Their expertise ensures that the Code Gaia software not only functions smoothly, but is also technologically sound and professionally validated.
2. How is Artificial Intelligence used in ESG reporting at Code Gaia?
Effective Creation of CO₂ Balances
At Code Gaia, we already use AI for various functions in ESG reporting. A key role is played by the automated extraction of environmental data from different sources. This data is analyzed and categorized by AI, allowing CO₂ balances to be created quickly and accurately without relying on manual data entry.
Code Gaia utilizes AI-powered processing of invoices and receipts. For example, fuel receipts or train tickets can be uploaded, and the AI automatically identifies relevant emission factors, assigns fuel types, and calculates the corresponding CO₂ values. This minimizes manual effort and increases data quality.
Support in Writing the Sustainability Statement
Furthermore, our AI supports the reporting process by generating drafts tailored to specific reporting requirements while considering user-provided information. This information can either be entered as text, e.g., as a bullet-point summary of existing insights or copied from other documents.
Additionally, Code Gaia employs AI-assisted text generation to help companies create qualitative disclosures in accordance with ESRS. The AI analyzes existing sustainability reports or policy documents and generates suggestions for key topics, risks, and opportunities, as well as strategic formulations. The generated texts are provided in a structured format so that users can easily adjust and finalize them.
This saves valuable time in summarizing policies, procedures, and documents that have already been written.
However, it is very important to mention that Artificial Intelligence can only act as a supportive tool here. There is no way around reviewing the AI-generated reporting content for accuracy. In the end, the sustainability report must be watertight and stand up to auditor scrutiny. Even if it’s not fun – check your entire report thoroughly.
3. What is Code Gaia planning for AI in ESG reporting?
Improved Data Extraction & Optimization Suggestions
We aim to further expand the use of Artificial Intelligence in our ESG reporting software. Planned enhancements include improving existing functions, such as better data extraction and providing optimization suggestions based on collected data. Additionally, our AI should be able to interpret data queries and provide specific optimization recommendations based on analyzed environmental metrics.
We also want to use Artificial Intelligence in quality assurance processes to detect erroneous inputs and results.
Another key development area is supporting the materiality analysis. Through AI-powered features within the Code Gaia software, companies can analyze existing sustainability reports, invoices, and other relevant documents. The AI automatically extracts and structures key topics, risks, and opportunities, which are then reviewed by human experts.
Additionally, Artificial Intellingence enables the automatic transfer of materiality analysis results into the final report. This reduces manual effort and ensures that recorded data is consistently and accurately integrated into reporting.
AI as an Advisory Function
Code Gaia thrives on interaction with customers. Especially in this relatively new and complex field of ESG reporting, we will never use AI as a replacement for personal support. However, what we do plan is to implement AI as an advisory support feature within the software.
Optimized Data Collection Processes
Furthermore, Artificial Intelligence will play a crucial role in consolidating information and data collection processes. For example, it should be able to read web content and provide advice on potential data sources. Our development team will also focus on Robotic Process Automation (RPA) in the future. RPA refers to the use of AI software to automate repetitive tasks that have so far been manually performed due to large volumes of data, such as maintaining transactions and records.
4. ESG Reporting and Artificial Intelligence: A Conclusion
Overall, ESG reporting is undergoing an exciting transformation through the use of AI. At Code Gaia, we recognize the importance of AI in ESG reporting and are already successfully implementing it to provide our customers with a holistic and efficient solution.
However, it is important to emphasize that Artificial Intelligence can only play a supporting role. Ultimately, the responsibility lies with the users to review AI-generated reporting content for accuracy and ensure that the sustainability report meets the requirements.
We firmly believe that integrating AI into ESG reporting at Code Gaia not only increases efficiency but also contributes to creating a more sustainable future for businesses and society as a whole.
Would you like to learn more about our ESG reporting solution? Feel free to schedule an appointment.
