AI-Driven Carbon Accounting: The Key to Enhancing Transparency in Global ESG Standards

As environmental concerns grow and regulatory demands around sustainability intensify, businesses are increasingly turning to artificial intelligence (AI) to enhance their carbon accounting and Environmental, Social, and Governance (ESG) reporting practices. This article explores how AI-driven carbon accounting systems are transforming the transparency and accuracy of ESG disclosures on a global scale. By leveraging AI technologies such as machine learning, predictive analytics, and data integration, organizations are able to streamline carbon footprint calculations, improve data accuracy, and ensure compliance with evolving environmental regulations. The paper highlights the significant benefits of AI in overcoming traditional challenges in carbon reporting, such as data complexity, time constraints, and errors in manual calculations. Additionally, it discusses how AI can support real-time reporting, enabling businesses to make more informed decisions about their sustainability strategies. The findings underscore the importance of AI in driving transparency, enhancing regulatory compliance, and fostering trust with stakeholders. Finally, the article examines the barriers to AI adoption, such as high implementation costs and skill gaps, and provides recommendations for overcoming these challenges to unlock AI’s full potential in carbon accounting and ESG reporting.