Position Green’s vision for AI in sustainability reporting

Addressing CSRD challenges with AI

“AI is effective at analyzing vast amounts of data, even when it’s complex and varied, but isn’t a silver bullet if the underlying systems and data are poorly structured.” – Victor Friberg, AI Lead, Position Green

The European Corporate Sustainability Reporting Directive (CSRD) requires organizations to go beyond financial reporting, delving deep into environmental, social, and governance (ESG) impacts. However, not every organization is ready to integrate AI effectively. Businesses with siloed systems, inconsistent data, or outdated infrastructure risk inaccurate results and potential non-compliance. For these organizations, investing in foundational improvements like data structuring and system integration is key to unlocking the potential of AI.

“AI is effective at analyzing vast amounts of data, even when it’s complex and varied”

Victor Friberg, AI Lead, Position Green

How Position Green’s AI tools could make a difference

Our vision is to develop AI-powered capabilities that address CSRD reporting challenges at every stage of the process. Here’s what we believe is possible:

• Automating qualitative and quantitative data consolidation: AI has the potential to take scattered information—from texts, PDFs, Excel files—and consolidate it into one coherent database. This could eliminate much of the manual work of gathering and organizing data across departments.
• Enhancing accuracy: Machine learning models could validate data to reduce errors, ensuring compliance with CSRD frameworks. For example, AI might identify inconsistencies between quantitative data and narrative statements, flagging gaps that would otherwise go unnoticed.
• Generating reports with ease: The future holds the possibility of AI drafting sustainability statements adhering to regulatory frameworks, massively reducing the work hours required. These reports could be tailored to meet CSRD requirements, making them both comprehensive and efficient.

A proactive approach to evolving regulations

Staying ahead of regulatory changes is crucial for long-term compliance. Anders Gullander, our head of product, discussed how Position Green envisions AI adapting to new frameworks: “You could ask the AI analyst about specific frameworks, how your data matches up, and even what new regulations might mean for your reporting.”

This adaptability could enable businesses to remain compliant without the need for time-intensive manual updates as AI doesn’t just stop at understanding updates; it could actively analyze regulation changes to show their potential impact on your current data and outputs.

A glimpse into the future of AI at Position Green

Looking ahead, Position Green is working to expand AI functionalities, further automating sustainability reporting. We’re developing a sustainability statement feature that’s AI-enabled and could help reduce the amount of work hours massively.”

Our goal is to simplify reporting while enabling deeper insights and more strategic decision-making. By leveraging AI, organizations could move from compliance excellence to creating sustainable impact.

Conclusion

While these possibilities are not yet fully realized in our ESG management software, our roadmap for AI integration reflects our commitment to helping organizations tackle CSRD challenges. From automating data collection to adapting to regulatory changes, the potential of our platform is to reduce the burden of compliance while enhancing accuracy and insight.

Book a demo today to see how it can open up smarter, more efficient sustainability reporting for your teams.