The AI ESG protocol: Evaluating and disclosing the environment, social, and governance implications of artificial intelligence capabilities, assets, and activities

Sætra, Henrik Skaug

doi:10.1002/sd.2438

Cited by 37 publications

(8 citation statements)

References 60 publications

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“…Early research results have mostly focused on the relationship with enterprises from the three dimensions of environment, society, and corporate governance. Saetra found that corporate governance is not objectionable to enhancing enterprise value, although the relationship between environmental and social factors and enterprise value is unclear [25]. However, the finding that higher levels of environmental and social responsibility enhance enterprise value is most common.…”

Section: Research Reviewmentioning

confidence: 99%

The Impact of Digital Transformation on ESG Performance Based on the Mediating Effect of Dynamic Capabilities

Su,

Wang,

2023

Sustainability

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The United Nations Development Summit in 2015 adopted the “2030 Agenda for Sustainable Development”, establishing a framework for Sustainable Development Goals (SDGs) with the aim of achieving coordinated economic, social, and ecological development worldwide by 2030. The “environmental, social, and governance” (ESG) approach is important within the concept of SDGs and is the subject of increasing attention from scholars. Despite China’s significant contributions to the SDGs, it still faces numerous challenges in terms of environmental and governance development. With the ongoing development of digital technology, many Chinese enterprises aspire to harness the dividends of digital transformation in order to achieve SDGs. In this study, we aim to help companies understand how they can improve their ESG performance through digital transformation. We use a sample of A-share listed companies in China from 2011 to 2020 to construct a digital transformation index by profiling the frequency of digital-related words in companies’ annual reports using textual analysis. Furthermore, we empirically examine the direct effect of digital transformation on companies’ level of ESG disclosure and explore the mediating effect of dynamic capabilities on the impact of digital transformation on ESG performance. Empirical testing reveals that digital transformation indeed has a positive impact on enterprises’ ESG performance, and digital technology innovation can enhance ESG performance through dynamic capabilities such as green innovation, social responsibility, and operational management. The findings indicate that companies need to actively develop and promote digital technologies to obtain the benefits of digital transformation, with company executives including advanced technology in their decision-making and operational processes in an effort to promote innovation and management efficiency, thereby improving their ESG performance.

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Section: Research Reviewmentioning

confidence: 99%

The Impact of Digital Transformation on ESG Performance Based on the Mediating Effect of Dynamic Capabilities

Su,

Wang,

2023

Sustainability

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“…These digital technologies play a crucial role in accurate ESG reporting, and ESG investment is associated with AI capabilities (Saxena et al, 2023). In addition, Sætra (2023) argues that the AI ESG protocol is a solution for ESG assessment and disclosure. D’Amato et al (2022) employed a machine learning approach to assess the effect of financial balance sheets on the ESG score.…”

Section: Theoretical Framework and Hypothesesmentioning

confidence: 99%

Digital Transformation Empowers ESG Performance in the Manufacturing Industry: From ESG to DESG

Wang,

Hong,

Long

2023

Sage Open

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Digital transformation (DT) is a long-term strategy for economic sustainability, particularly for manufacturing-oriented economies. This study proposes a digital ESG (DESG) theoretical framework to investigate how DT empowers ESG performance in the manufacturing industry. Using Python, we collected data from Chinese manufacturing firms from 2009 to 2020. This study used the ordinary least squares method to examine the relationships among DT, ESG performance, and manufacturing ESG heterogeneity. The results suggest that big companies and growing firms pay more attention to their ESG performance than others and that state-owned enterprises are keen on ESG performance but underperform. Additionally, DT may contribute to manufacturing ESG performance in general; labor-intensive and non-state-owned enterprises benefit more from DT than their counterparts; and manufacturers in economically developed regions show more significant ESG performance thanks to DT. These findings support the use of a DESG theoretical framework in the manufacturing industry whereby digital technologies facilitate business production and improve the business profits of manufacturing firms, so that manufacturers have sufficient profits to conduct ESG investments for sustainable development in a virtuous cycle. JEL Classification: O32, O44, Q56

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“…sustainability information), the limited scope of non-financial disclosures imposed by the accounting regulation as well as the lack of external attestation bodies aimed to verify the declarative information embedded in the non-financial report (Czaja-Cieszyńska et al, 2021). In addition, Saetra (2022) addressed the problems of variability in the sustainability-related data produced by the requirements to collect and report sustainability-related information, which differ between nations, regions, and sectors. Due to…”

Section: Entrepreneurship and Sustainability Issuesmentioning

confidence: 99%

Sustainability information – analysis of current trends in sustainability monitoring & reporting

Táncošová¹,

Lincényi²,

Fabuš³

2023

JESI

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Government legislation, investor and stakeholder expectations, as well as international voluntary initiatives have all contributed to the rising demand for high-quality information and reporting on sustainability issues. The scientific community exploring sustainability issues is expanding quickly, and the need for sustainability data has grown significantly in recent years. Sustainability reporting is a fast developing topic with many different monitoring and reporting frameworks, some criteria that overlap, and problems with worldwide consistency. This frequently causes uncertainty on how data and information should be used to produce useful results and science-based resources. The paper ascertains current trends in monitoring and reporting sustainability-related information, including a particular analysis for each relevant level (i.e. country and corporate). The study commences with an updated review of sustainability reporting literature followed by an emphasis on the well-known instruments (i.e. SDGs index and the International Spillover index) used to monitor and report the nations progress toward SDGs. Also, the connections among different international approaches/initiatives for increasing the accountability of companies for sustainability actions were analysed and the improvements were emphasized. Although the worldwide reporting seems to be led by the adoption of the GRI and SASB standards, the range of metrics and disclosure patterns is wide and displays a high variation across industries, sectors, sizes, complexity and location. Through a structured analysis, the paper argued international initiatives (i.e. European Sustainability Reporting Standards and IFRS Sustainability Disclosure Standards) are of valuable importance for counteracting the fragmentation of available sustainability information and assuring the alignment and interoperability between different sustainability information.

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The AI ESG protocol: Evaluating and disclosing the environment, social, and governance implications of artificial intelligence capabilities, assets, and activities

Cited by 37 publications

References 60 publications

The Impact of Digital Transformation on ESG Performance Based on the Mediating Effect of Dynamic Capabilities

The Impact of Digital Transformation on ESG Performance Based on the Mediating Effect of Dynamic Capabilities

Digital Transformation Empowers ESG Performance in the Manufacturing Industry: From ESG to DESG

Sustainability information – analysis of current trends in sustainability monitoring & reporting

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