AI & ESG
Document Type
Article
Publication Date
2025
Abstract
The field of Environmental, Social, and Governance (ESG) has undergone rapid expansion, followed by political backlash, yet continues to see steady utilization in recent years. Businesses are disclosing social and environmental information, prompting regulatory agencies to propose and set regulations and guidelines. Moreover, ESG is evolving as a tool for investment analysis, a risk management tool, and an approach to corporate social responsibility. Simultaneously, artificial intelligence (AI) is emerging as a possible tool for companies to collect and analyze ESG metrics, including environmental impacts and workplace safety. This Article proposes an approach that companies and their users can employ to leverage AI benefits and adequately minimize risks. This Article addresses (1) the environmental impacts of AI, (2) the numerous ways AI is being used in the ESG space, (3) the legal hurdles companies and their users may face when integrating AI in the ESG space, and (4) best practices to mitigate the risks and leverage the potential of AI in the ESG space. This Article concludes by revealing best practices for companies, which include utilizing blockchain to mitigate risks, implementing adequate procedures and policies, and ensuring adequate oversight over AI use.
Recommended Citation
Ballan, Barbara and Czarnezki, Jason J. and Martin, Morgan, AI & ESG (August 08, 2025). Environmental Law, Volume 55, No. 3 Pp. 405-448 (2025)
