Generative AI in ESG Reporting: A Case Study and Process Framework

ABSTRACT The emergence of generative artificial intelligence (GenAI) is found to have a remarkable impact on environmental, social, and governance (ESG) reporting. Although there is abundant literature on ESG reporting, very few studies have examined the adoption of GenAI in ESG reporting. As a result, this study examines how companies can use GenAI to generate value in ESG reporting. We obtain the following three findings that we articulate in this paper: (i) GenAI drives digital innovation in ESG reporting via automated data extraction, accelerated analytics, and dynamic reporting; (ii) GenAI‐powered platforms enhance stakeholder engagement by integrating diverse data sources and improving information accessibility; and (iii) organizations encounter significant challenges in data governance and human‐AI collaboration. We also propose a framework for adopting GenAI in digital ESG platforms.