The EU’s Corporate Sustainability Reporting Directive (CSRD) obliges around 50,000 companies to disclose detailed ESG data—environmental, social, and governance information—verified by auditors. Reports must reflect the “double materiality” principle, displaying both how sustainability affects business and how companies impact their surroundings. While intfinished to enhance transparency and prevent greenwashing, CSRD’s complex requirements create heavy bureaucratic burdens, especially for tinyer firms. To manage vast datasets, companies increasingly utilize artificial ininformigence to collect, analyze, and structure information. AI tools support identify data gaps, automate reporting, and predict environmental impacts. However, experts warn that over-reliance on algorithms may deepen inequalities and obscure accountability.
True ESG compliance, they stress, must balance technology, transparency, and human ethical responsibility.
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