In a timely letter to the FT, contributors argue that artificial intelligence (AI) is poised to tackle one of the most entrenched challenges in corporate sustainability: measuring and verifying ESG (environmental, social, and governance) performance. Despite growing attention and pledges around ESG commitments, quantifying them in a rigorous, scalable manner remains elusive. AI, however, offers a compelling solution.

At the heart of this transformation is AI’s ability to parse unstructured data—ranging from supplier reports and regulatory filings to social media commentary and satellite imagery—and translate it into measurable ESG indicators. For instance, AI-driven tools can scan across supplier chains to check if emissions targets reflect real-world practices, identify environmental violations, or uncover governance red flags. By automating this scanning process, companies gain access to continuous, real-time insights into their ESG performance.

Another key advantage is standardization. ESG reporting today suffers from fragmented data sources and inconsistent frameworks, undermining comparability and credibility. AI platforms can harmonize different vocabularies and metrics, aligning them with standards like SASB, TCFD, and GRI. This makes reported data more reliable and audit-ready—crucial for regulators, investors, and customers who tighten their scrutiny.

Early adopters are already integrating AI-powered ESG monitoring into their risk management systems, combining structured data with natural-language processing to detect anomalies and trigger timely alerts. As one letter contributor puts it, AI can “ride to the rescue” of ESG—shifting monitoring from periodic checkbox exercises to dynamic, evidence-based accountability.

Of course, challenges remain: ensuring data quality, avoiding biased algorithms, and maintaining transparency about how AI makes decisions. Nonetheless, as ESG expectations grow, companies that leverage AI for real-time verification will gain a decisive edge—demonstrating both performance and integrity in equal measure.

AI is not just a promising tool for ESG—it may soon become the standard for credible, continuous sustainability oversight.