AI Technology: The Game Changer in Sustainability Reporting

AI Technology: The Game Changer in Sustainability Reporting

Creating a Sustainability Report (SR) should be a straightforward process. At its core, sustainability reporting is about how a company balances its business goals with its social and environmental responsibilities. The main focus areas are environment, social responsibility, and governance.

To get started, companies simply need to identify the actions they’ve taken and record the outcomes. With a clear, structured approach, putting together a sustainability report becomes easier, more efficient, and ultimately more meaningful.

Of course, transparency is key to all of this. Up until this point, writing an SR should remain uncomplicated—unless a company is trying to hide something that’s expected to be disclosed. But if there’s genuine intent behind the reporting, there’s really nothing complicated about sustainability reports.

What can make the process feel daunting is the set of requirements outlined by frameworks like the GRI Standards. This is especially true if management insists on having the SR prepared by certified professionals and externally assured. At that point, it’s not just about writing the report; the associated costs can add up. For large companies, this might be a non-issue, but for others, it’s a heavier burden.

It’s worth noting that adhering to frameworks like the GRI Standards, TCFD, or SASB isn’t legally required—at least not yet. If these global frameworks seem overwhelming, companies can stick to the more straightforward SE-OJK 16 of 2021 guidelines, which are much easier to follow compared to global standards.

However, there’s a solid reason why many companies feel the pressure to follow these internationally recognized frameworks. Certain situations make it difficult to avoid using them—such as when investors require companies to issue SRs in line with GRI Standards. Multinational investors rely on standardized reporting to quickly assess and compare data. Adhering to GRI Standards ensures that sustainability data is consistent and comparable across industries and regions.

These frameworks also demand a high degree of transparency, which boosts the credibility of GRI-compliant SRs. This, in turn, earns the trust of investors and stakeholders, enhancing the company’s reputation.

Following a framework also brings strategic advantages. Well-organized data can help companies make better decisions. In the long run, companies that regularly produce SRs using these frameworks will be better prepared to navigate sustainability challenges and tougher regulations.

The good news is that the difficulties of using international frameworks don’t need to be a major roadblock. Technology can simplify the process—and AI is a prime example.

AI is capable of processing vast amounts of data quickly, analyzing it, and compiling the necessary information for an SR that meets the required standards. By leveraging AI, companies can streamline the entire SR-writing process, even if they lack in-house sustainability experts.

One platform that provides this service is Reporthink.AI. This AI-driven platform does more than just report on sustainability performance—it automatically generates reports that adhere to GRI Standards and SE-OJK 16 of 2021. Reporthink.AI has been developed with the help of certified GRI Standards writers.

Companies simply upload their data, and Reporthink.AI takes care of the rest, compiling and presenting it as a complete SR. If any sections are missing data, the platform will highlight where further input is needed.

The resulting report is delivered in both Indonesian and English, and if additional translations are needed, users can choose from optional add-ons. What used to take months can now be completed in just a few hours.

Reporthink.AI offers more than just efficiency and cost savings—it plays a role in accelerating the shift towards a more sustainable economy. By removing financial and technical barriers, Reporthink.AI makes sustainability reporting accessible to companies of all sizes. Instead of getting bogged down by framework requirements, companies can stay focused on what really matters—substantive, strategic issues.

By using Reporthink.AI, companies not only streamline their operations but also contribute to the transformation of a more sustainable industry. This technology is expected to encourage businesses to take bold steps in tackling global sustainability challenges.

Reporthink believes that sustainability reporting is a right for all companies, not just the big players. Everyone should have the opportunity to enhance their standing with investors, consumers, and stakeholders. Publishing a sustainability report isn’t just about fulfilling obligations—it’s a strategic opportunity for companies to help shape a better future.

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