Role of Artificial Intelligence in Sustainability Reporting by Leveraging ESG Theory into Action

There is a heightened need for reporting on the environmental, social, and governance (ESG) contributions of the organizations. Micro, small, and Medium Enterprises (MSMEs) in India are gearing up to meet this requirement. Artificial Intelligence (AI) helps organizations to optimize processes, reduce costs, manage people, and improve governance. This research explored the current level of ESG-related activities of MEMEs and how AI is acting as an enabler or a constraint. Using qualitative research methods MSME companies and their ESG readiness were analyzed using thematic analysis. Use cases were explored to understand how MSMEs can use AI in monitoring and measuring ESG performances. The present research constructs an effective decision-making tool that identifies environmental, social, and governance factors for MSME companies.