AI key to increased ESG adoption — ESGpedia
MORE Philippine businesses including small and medium enterprises (SME) are expected to adopt environmental, social and government (ESG) frameworks on sustainability with the rise of technology, particularly artificial intelligence (AI), according to Singapore-based ESG data and solution provider ESGpedia Pte. Ltd.
They need to engage more with ESG as mandatory local sustainability reporting takes effect next year, ESGpedia founder and Managing Director Benjamin Soh told BusinessWorld.
“Over the next few years, technology will be key in helping businesses not just comply but thrive in a more demanding regulatory environment,” he said in an e-mailed reply to questions.
Mr. Soh said ESG adoption gives SMEs a competitive edge as the market puts higher value on sustainability.
“It helps them not only meet regulatory requirements and build operational resilience, but importantly, increase their competitiveness for business deals and tenders by being able to showcase their sustainability commitment and credentials to stakeholders,” he said.
“Proactive ESG action is now seen not just as compliance but as a driver of long-term business value,” he added.
Mr. Soh said ESG adoption among SMEs has been hindered by lack of awareness, limited expertise and complex ESG frameworks.
He added that ESGpedia could help SMEs with end-to-end digital tools that automate carbon calculations, emission tracking, sustainability reporting and supply chain monitoring, removing the need for costly expert consultants.
“ESGpedia helps companies embed ESG into their operations by digitalizing sustainability reporting and making it easier and more accurate,” he pointed out.
“Our platform helps SMEs align [themselves] with local and international standards, generate credible sustainability reports and unlock new opportunities in global supply chains,” he added.
ESGpedia offers a platform that turns operational data into structured ESG reports aligned with global standards and local frameworks. The company uses AI to extract and validate data.
The platform has built-in validation tools that check inputs against logical thresholds and minimize errors. It also requires supporting documents for ESG claims and allows third-party audits.
The company’s AI technology strengthens transparency, lowers risks of greenwashing and provides a full audit trail, Mr. Soh said.
ESGpedia is a one-stop digital platform of ESG data and solutions for corporations, SMEs and financial institutions across the Asia-Pacific region to attain ESG goals. — Revin Mikhael D. Ochave
