D. Wadhwa, S. Kakade, F. Akkawi
Northwestern University,
United States
Keywords: generative AI, large language models, LLM, zero-shot, few-shot, prompt engineering, classification, sustainability, ESG, corporate sustainability, corporate governance, transformation, sustainability intelligence, environmental, social, governance, risk assessment, regulatory, compliance
Summary:
This presentation introduces a novel, comprehensive approach that combines sustainability principles with generative AI capabilities to transform how global organizations evaluate, synthesize, and act upon environmental, social, and governance (ESG) reporting data. Our innovation leverages a spectrum of generative AI techniques, including zero-shot learning, sophisticated prompt engineering, and few-shot learning, to analyze corporate sustainability reports across diverse global industries. By strategically applying these AI advancements, our solution penetrates the complexity of corporate sustainability disclosures, uncovering critical insights that elude traditional analytical approaches. Our results demonstrate significant improvements in efficiency through accelerated analysis and a paradigm shift in the proactive identification of hidden compliance risks and governance vulnerabilities. Going beyond mere compliance, this methodology empowers forward-looking sustainability governance by pinpointing emerging risks and opportunities. Additionally, by automating evaluation, ensuring analytical rigor, and deepening the scope of analysis, our framework provides a systematic means to assess ESG compliance progress and flag crucial risk areas for management attention. For global enterprises navigating increasingly intricate sustainability regulations, our solution offers a distinct competitive advantage, converting ESG reporting from a compliance necessity into a strategic business intelligence asset that fuels both sustainable practices and enhanced shareholder value. We will detail our technical approach, present compelling evaluation metrics showcasing these impactful outcomes, and outline practical implementation strategies for organizations seeking to fortify their sustainability governance and risk assessment capabilities in a dynamic regulatory environment.