19:57 10 October 2025
AI proving useful in creating ESG reports for EU’s CSRD directive
The EU’s Corporate Sustainability Reporting Directive (CSRD) obliges around 50,000 companies to disclose detailed ESG data—environmental, social, and governance information—verified by auditors. Reports must reflect the “double materiality” principle, showing both how sustainability affects business and how companies impact their surroundings. While intended to enhance transparency and prevent greenwashing, CSRD’s complex requirements create heavy bureaucratic burdens, especially for smaller firms. To manage vast datasets, companies increasingly use artificial intelligence to collect, analyze, and structure information. AI tools help identify data gaps, automate reporting, and predict environmental impacts. However, experts warn that over-reliance on algorithms may deepen inequalities and obscure accountability.
True ESG compliance, they stress, must balance technology, transparency, and human ethical responsibility.
