Artificial Intelligence as an Emerging Risk Dimension in Corporate Sustainability Reporting: A Legal and Governance Perspective

(1) Background: As digital technologies become integral to business operations, risks associated with artificial intelligence (AI), data governance, and cybersecurity are emerging as material concerns in the context of corporate sustainability. This article examines the extent to which current sustainability reporting standards (CSRD/ESRS, GRI, ISSB, and SASB) address risks associated with AI and broader digital transitions. (2) Methods: This study employs a qualitative content analysis of twenty corporate sustainability reports across digitally intensive sectors, complemented by a doctrinal legal analysis of the relevant normative instruments governing sustainability and digital risk reporting. (3) Results: This study finds that while references to AI risks are increasingly present, they often lack depth, standardisation, and connection to legal accountability mechanisms. Key gaps include underreporting human rights impacts linked to algorithmic decision-making and limited disclosure on internal AI governance structures. (4) Conclusions: The article argues that to uphold the principles of transparency, due diligence, and stakeholder accountability, sustainability reporting frameworks must evolve to capture the risks associated with AI transitions explicitly. The findings call for regulatory and standard-setting bodies to establish more explicit guidance on AI risk disclosures, and for corporate directors to integrate these dimensions into their risk governance and reporting duties.