The AI ESG protocol: Evaluating and disclosing the environment, social, and governance implications of artificial intelligence capabilities, assets, and activities
Sætra, H. S. (2022). The AI ESG protocol: A tool for evaluating and disclosing impacts and risks of AI and data capabilities, assets, and activities. Sustainable Development. https://doi.org/10.1002/SD.2438
11 Pages Posted: 9 Aug 2022 Last revised: 2 Nov 2022
Date Written: October 31, 2022
AI and data are key strategic resources and enablers of the digital transition. Artificial Intelligence (AI) and data are also intimately related to a company's environment, social, and governance (ESG) performance and the generation of sustainability related impacts. These impacts are increasingly scrutinized by markets and other stakeholders, as ESG performance impacts both valuation and risk assessments. It impacts an entity's potential to contribute to good, but it also relates to risks concerning, for example, alignment with current and coming regulations and frameworks. There is currently limited information on and a lack of a unified approach to AI and ESG and a need for tools for systematically assessing and disclosing the ESG related impacts of AI and data capabilities. I here propose the AI ESG protocol, which is a flexible high-level tool for evaluating and disclosing such impacts, engendering increased awareness of impacts, better AI governance, and stakeholder communication.
Keywords: ESG, AI, data, big data, reporting, sustainability
Suggested Citation: Suggested Citation