AI in sustainability reporting
Sustainability reporting has never been higher on the corporate agenda, particularly following the introduction of the EU’s Corporate Sustainability Reporting Directive (CSRD).
At the same time, artificial intelligence (AI) is receiving more attention than ever. And it’s coming into its own for its ability to convert organizations’ existing data into the data they need to fulfil sustainability reporting requirements.
Here, we outline the way AI is taking the headache out of sustainability reporting for organizations across the globe, while also accelerating climate action for a more sustainable future.
What exactly is sustainability reporting?
Sustainability reporting is a type of non-financial reporting that involves companies disclosing Environmental, Social & Governance (ESG) matters. This includes their mobility impact on the planet from a safety and sustainability perspective.
The EU currently leads the way with ESG legislation. And the CSRD has taken ESG reporting to new levels.
In the United States, ESG reporting has largely been driven by voluntary efforts, but over recent months we have seen the introduction of new state-level regulations. We’ve also seen the release of the U.S. Securities and Exchange Commission’s (SEC) finalized climate-related disclosure rule, although – at the time of publication – this has been temporarily paused by a U.S appeals court.
In other parts of the world, the landscape is also evolving. At the beginning of this year, the government of Australia announced the release of new draft legislation which would introduce mandatory climate-related reporting requirements for large and medium sized companies, including disclosures on greenhouse gas emissions across the value chain.
And just within the last couple of months, new mandatory climate-related reporting requirements have been announced in Singapore, as well as in China.
How important is data in sustainability reporting?
Data IS sustainability reporting. Without it, there is no reporting. And AI makes it easier and more efficient for organizations to uncover the data that matters.
To fulfil the latest sustainability reporting requirements, such as the CSRD and other legislation, organizations need to measure their impact on the environment, and on society. AI enables them to uncover new insights from their existing data to do exactly that.
For example, AI can convert driving data into crash probability (for social reporting) and climate impact (environmental reporting). It can also calculate the driver influence on these factors, enabling organizations to not only measure, but also act and report with ease.
What difference does AI make to sustainability data?
AI enables organizations to measure driver impact in real-time. Not just that, but to quickly see changes in risk and climate impact, identify trends in data and set targets for reduction. It can also provide detailed insights into the reasons behind crash probability and climate impact, helping organizations to easily pinpoint areas for improvement.
Most importantly of all, AI can harmonize sustainability data. This is game-changing for insurance companies, for example, or any other company working with data from multiple sources. AI can harmonize driving data from different telematics solutions, or from sources such as dashcams or smartphones. Also, across different geographical areas, and from different vehicle types, including ICE and EVs. This makes it possible to easily compare driver impact at any level.
How AI supports sustainability reporting across Scopes 1, 2, 3
A sustainability reporting program based around AI can be adopted by any organization. And, it can be utilized by organizations to ensure consistent sustainability reporting across Scopes 1, 2, and 3. Managing Scope 3 emissions is a particular challenge for many organizations, especially since these emissions are outside of their direct control. For that reason, the U.S’s SEC dropped Scope 3 reporting from its climate disclosure rules. BUT, AI does make it possible to incorporate Scope 3 emissions into sustainability reporting.
At Greater Than, our AI solution is replicable in any location, by any user, with no need for additional hardware. This makes it easy for organizations to obtain the data they need across all scopes to fulfil their sustainability reporting requirements.
AI drives positive change
Many countries have adopted net-zero emissions targets. And achieving this requires all organizations to play a role in influencing positive change. AI enables organizations to uncover the insights they need from their driving data to set targets as part of their sustainability reporting programs.
AI also converts their data into actionable intelligence that can truly drive positive change. For example, Greater Than’s add-on Crash Probability Tool not only enables organizations to see the drivers with highest crash probability, but it also provides insights into the reasons for risk and recommended actions to reduce it. Our Communication Tool enables organizations to send communication directly to drivers about their crash probability and/ or climate impact, helping to raise awareness and incentivize safe, sustainable behaviors.
Quality sustainability reporting data increases transparency
Along with the obvious benefits to the environment, improving accountability and increasing transparency are two clear aims of sustainability reporting. No company wants to be accused of greenwashing. Therefore, having the data to back up sustainability claims is more important than ever.
AI helps companies convert their data into a format that is ready for sustainability reporting, with audit-ready traceability information. Being open and transparent about the data used, the action taken on the data insights, and reporting on improvements made are all important aspects of sustainability reporting, and AI helps companies to achieve that.
Get started with AI in sustainability reporting
Greater Than is proud to be the first and still leading company to develop and use AI to convert organizations’ existing driving data into crash probability and climate impact, helping them to meet the mobility requirements of sustainability reporting.
How do we achieve this? It all started 20 years ago when we started training the AI with driving patterns. Today, we have identified over 7 billion ways to drive a vehicle, and by comparing real time driving data with patterns in our database, we can rapidly identify a driver’s impact from a safety and sustainability perspective.
It couldn’t be easier to get started. All we need is 1km of driving data to start measuring crash probability and climate impact. And you can share your data with us via a simple API connection, such as connected car, telematics solution, dashcam, or via a smartphone app.
Our new ESG compliance package brings together our most popular products into one comprehensive package, ideal for meeting sustainability reporting requirements.
To discuss your sustainability reporting needs with us, please book a meeting.
