Implementation of ESG Index on Long-term Value and Performance of Oganizations Using AI and ML

Organizations are using AI and ML to identify the opportunities in various domains. This paper examines the effect of incorporating Environment, Social, and Governance (ESG) criteria in evaluation of the long-term value and performance of organizations. Specifically, this paper proposes a model that uses artificial intelligence and machine learning to analyse ESG data and helps to determine which organizations are more likely to achieve long-term success. Then there is application of this model to a sample of publicly traded companies to assess its efficacy. Our results suggest that organizations with higher ESG scores are more likely to have better long-term performance and value. The implementation of the ESG analysis tool and machine learning model helps in identifying the organizations which are performing well in the environment, social and governance aspects along with considering their financial outlook. This paper focuses on discussion of the proposed model evaluating the ESG index, and thus helping the investors, organizations, and retail individuals on the performance of the organization selected by using AI and ML. Every organization needs advanced technology for its business, AI and ML works for that and helps in reduction of the manual efforts and also helps to create a standardized model which if developed well could be evolved as one of the important aspects for individuals and corporates alike to be considered before making their investment decisions.