More clarity, less effort: how AI is changing ESG reporting

February 25, 2025
|
4
minutes |
Elena Welsch

In a nutshell

  • AI reduces effort and minimizes errors in ESG reporting by automatically collecting, analyzing and structuring data.
  • Companies benefit from greater transparency and accuracy, which simplifies strategic management and reporting.
  • Planted uses AI specifically to make ESG data management, materiality analyses and carbon accounting more efficient.

How artificial intelligence is transforming ESG reporting

Sustainability reporting is becoming increasingly important for companies. Regulatory requirements such as the Corporate Sustainability Reporting Directive (CSRD) and rising expectations from investors and stakeholders are increasing the pressure to provide reliable ESG data.

Many companies face the same challenges: Data from different sources must be merged, analyzed and documented in a legally compliant manner. The process is time-consuming, error-prone and often manually controlled.

Software solutions such as Planted help to organize ESG reporting centrally and across teams. They create structure, facilitate collaboration and ensure traceable documentation. The amount of data remains the same - recording, administration and analysis still require human resources.

This is where artificial intelligence (AI) comes in. AI-supported solutions optimize data processing, identify patterns and significantly reduce manual effort . For companies subject to reporting requirements, this means more clarity, fewer errors and more time for the essentials - the ESG strategy and sustainable progress.

The most important advantages of AI in ESG reporting

  1. Automated data collection and analysis: Sustainability KPIs come from a wide variety of sources - from internal CO₂ data to supplier information. AI collects, structures and analyzes this data automatically, identifying inconsistencies and avoiding errors.
  2. Preparation of legally compliant reports: Whether for the CSRD or other sustainability standards - reports must be complete, audit-proof and standard-compliant. KI ensures structured preparation, checks for completeness and identifies any gaps or inconsistencies.
  3. Identification of risks and opportunities: AI recognizes patterns in ESG data and shows companies opportunities for improvement and potential risks at an early stage. This creates a solid basis for data-driven decisions and a proactive sustainability strategy.

How Planted uses AI in ESG reporting

Planted's ESG platform supports companies in efficiently recording and managing their sustainability data and reporting in compliance with CSRD. AI helps to automate processes, optimize reports and achieve strategic sustainability goals.

1. dual materiality analysis: With the help of AI, Planted supports companies in carrying out the dual materiality analysis in accordance with the European Sustainability Reporting Standards(ESRS) more efficiently. Based on the value chain, the AI automatically generates suggestions for Impact, Risks and Opportunities (IROs).

AI-supported identification of impacts, risks and opportunities (IROs)

2 Automated data collection and CO₂ accounting: Planted enables the automated collection of CO₂ data. Invoices or other receipts can be easily uploaded and the AI automatically identifies relevant emission factors. If data is missing, the AI provides support with extrapolations. This optimizes data accuracy and minimizes manual effort and errors. 

AI-supported selection of relevant emissions data

‍3. creation of the CSRD report: The all-in-one platform generates an audit-proof CSRD report that can be exported in all common formats with a single click. AI supports text optimization and the automatic filling in of report content, which speeds up the process considerably.‍

4. ESG strategy and target setting: Companies can use Planted to set science-based ESG and climate targets and develop a roadmap to Net Zero. AI-generated suggestions for measures help to continuously improve ESG key figures and achieve the targets set.

Why AI is becoming indispensable in ESG reporting

The use of AI in ESG reporting enables companies to implement complex requirements efficiently and in a legally compliant manner. More and more processes - from data collection to report generation - are being automated. At the same time, AI remains a supporting tool: the final responsibility for the accuracy of the reports remains with the companies.

Nevertheless, its influence will continue to grow. AI will be an integral part of ESG reporting in the future and will help companies to optimize processes and simplify their reporting.

Want to learn more about Planted's AI-powered ESG platform? Arrange a free demo appointment and find out which IROs our AI identifies based on your business activities.