By: Sheri Hinish, Principal Global Consulting Sustainability, Technology + Ecosystems Leader, EY

We stand at the intersection of two revolutions—sustainability and artificial intelligence. One demands we change how we live, and the other enables us to do it. The convergence of AI and ESG represents a transformative force for businesses seeking to address today’s sustainability challenges. AI is pivotal in helping companies unlock deep insights into operational efficiencies, emission reductions and public sentiments, which are essential for shaping ESG strategies that are not only reactive but proactive. However, for many organizations, the complexity of AI integration can be overwhelming—especially when they lack the necessary resources, mature models or internal expertise. This is where a robust partner ecosystem becomes a critical enabler, providing the infrastructure, data, tools and AI capabilities to effectively power sustainability efforts.

AI-Driven ESG Insights: The Power of Partnership

AI is not just a tool; it’s the bridge between data complexity and actionable sustainability insights. As companies embark on their sustainability journeys, harnessing AI through partner ecosystems can accelerate and marry business modernization—helping their sustainability transformation to create real impact.

Leveraging a partner ecosystem allows businesses to pool AI resources, data and expertise. This collaborative model ensures businesses can focus on strategic ESG goals, without getting bogged down by the technical challenges of AI implementation. AI solutions can transform fragmented, manual processes into automated, predictive insights, enabling real-time decision-making that aligns with regulatory requirements and long-term sustainability goals.

Harnessing AI for Enhanced ESG Reporting and Compliance

Sustainability is no longer a regulatory checkbox—it’s a business imperative. One of the most immediate applications of AI in sustainability is in ESG reporting and moving beyond ‘just compliance’ and instead into connected transformation. The technology’s ability to sift through vast datasets and provide accurate, real-time insights is indispensable for businesses navigating the evolving regulatory landscape. Organizations can utilize AI-powered platforms to streamline their reporting processes, track Scope 3 emissions and model their decarbonization pathways with precision.

But to maximize the value of AI, a collaborative ecosystem is necessary. Partners bring the domain-specific knowledge and platforms that allow companies to harness AI for sustainability, whether it’s for monitoring carbon hotspots or optimizing supply chain emissions. As we’ve seen with other organizations, AI-powered ecosystems provide a scalable framework for managing compliance while ensuring data integrity and transparency across the value chain.

AI and ESG in the C-Suite: Strategic Decision-Making

For C-suite leaders, AI and generative AI (Gen AI) offer enhanced insights into both risks and opportunities— empowering executives to make strategic decisions based on data-driven intel that go beyond mere compliance. By collaborating with AI-focused partners, businesses can tap into advanced analytics that highlight public sentiment around sustainability, forecast regulatory shifts and optimize operational efficiencies in areas such as energy usage and resource management. In this sense, a partner ecosystem does not just provide technology; it creates a support system for embedding AI in ESG decision-making.

Driving Innovation and Impact Through a Partner Ecosystem

The way forward for businesses looking to scale their AI-powered ESG initiatives is through a well-structured partner ecosystem that integrates AI capabilities with sustainability expertise. We’ve consistently seen that AI alone cannot solve the complex, multi-faceted challenges of sustainability. It’s the collaboration between technology partners, data providers and subject matter experts that unlocks AI’s full potential. By bringing together diverse stakeholders, companies can drive greater innovation, make more informed decisions and ultimately create sustainable business models that benefit both people and the planet. For example, in one of our alliances, we use AI technologies to optimize renewable energy use and integrate AI-driven resource management. We have operationalized smart grid management systems that use AI to predict and adjust energy supply based on real-time data from renewable energy sources, reducing waste and enhancing efficiency.

In another example, an alliance has used AI to track Scope 3 emissions across thousands of suppliers, using predictive models to reduce environmental impacts. We’re also witnessing AI being used by Consumer Product Goods and agricultural companies to predict and mitigate the impacts of climate change on crop yields. This has helped to secure food systems and simultaneously reduce resource use.

In summary, while many organizations are at the early stages of their AI journey, the key to success lies in leveraging partner ecosystems. These ecosystems provide access to AI tools and expertise that enable organizations to extract actionable insights, enhance ESG reporting and create sustainable roadmaps tailored to their unique needs. The time to act is now, and the businesses that embrace this collaborative approach will lead the way in sustainable transformation.

About the author:

Sheri is the Global Consulting Sustainability Technology and Ecosystems Leader across sectors, service lines, alliances, sustainability solutions, and digital ventures. She serves clients in their journey to net zero, supporting transformations across ESG data and regulatory reporting, sustainable supply chain and circular transition, and innovation in decarbonization by bringing the best in sustainability services across the breadth of EY and its partnerships.

The views reflected in this article are the views of the author and do not necessarily reflect the views of the global EY organization or its member firms.