Can AI Estimate ESG Impact?
I’m exploring using Generative AI to create baseline ESG impact reports for small to medium indirect B2B suppliers.
The Problem
While many enterprises are measuring their own operations’ social and environmental impact, they do not know the ESG impact of their suppliers. Yet their supply chain can comprise 80+% of their footprint. EU regulations are coming that will require enterprises report on the sustainability of their supply chain. Yet the challenge for small to medium businesses is the high cost to startup and run a sustainability program. There is no easy onramp and for enterprise procurement managing the supply chain, there is no common framework for assessment. Are their suppliers taking appropriate action and governing the results?
The Solution
My goal is to solve this problem by generating an estimated social and environmental impact report that gives both buyers and suppliers a place to start in their supply chain sustainability efforts. There is only a small group of people that are experts in generative AI and sadly I am not one of them, so I have a steep learning curve. And since I know there are many of you who are embarking on a similar journey, I will share mine here with the hopes that you will also share your learning and we can grow together.
Challenges
Some of the unknowns I am grappling with:
- Is there enough ESG data available to train my AI models? The good news is that many data sources have opened so my well is growing. And I plan to contribute my own data drawn from this work.
- Can I generate ESG impact data without succumbing to green- or pink- washing? Because I am using data from reliable sources to train my models instead of relying on PR statements, I may be able to avoid this trap. But as Taylor Swift says, “the haters gonna hate hate hate”. My hope is that my work is the start of a healthy, respectful dialog on how business can contribute and lead the efforts to make our planet a better, equitable place.
- Can I create a report that is easy for the average person to consume? There are many people smarter than me that are building new reporting formats but they are not user friendly for the masses. So, my challenge is also a UX one — luckily I *do* know how to craft a good experience! I was recently inspired by Seventh Generation’s Climate Impact Fingerprints report — it’s a great starting point!
- Will small to medium businesses be inspired by my report to become more sustainable? My goal is to make this an onramp to sustainability for suppliers with the carrot that it will increase their competitive edge with their buyers and when responding to RFPs. My key performance indicator is the number of suppliers that use my report to build their own ESG goals and measures. I suspect I will need to provide other user friendly tools and resources to help them on this journey — my next challenge!
- And of course the biggest challenge: how do I ensure the insights I generate are unbiased and ethical? I am inspired by the work of leading AI experts such as Nicole DeCario at AI2 who is working on AI & Fairness. And participating in AI for Good Foundation’s inaugural SDG Catalyst program last fall provided a great foundation for my ethical development and use of AI.
Starting Now
What have I missed? Anyone interested in contributing to my efforts? At first I intend to go fast on my own, with my limited resources, but I really want to go far, contribute significantly to the movement. Let me know if you want to help.
If you are a small to medium B2B business and are ready to start on your sustainability journey, a great place to start is our simple SDG assessment. Thanks for your efforts to improve society and the planet!
