Data Science and Artificial Intelligence

With the rise of generative AI, knowledge graphs, and Enterprise Resource Planning (ERP) systems, sustainability reporting can now be automated, streamlined, and made more accurate. The platform also keeps monitoring documents published by regulatory bodies in order to automatically identify new KPIs, in case regulations or requirements) change. 

The EU significantly expanded and formalized the reporting requirements with the introduction of the Corporate Sustainability Reporting Directive (CSRD) and extends mandatory sustainability reporting to a larger group of companies. The CSRD also introduces more detailed reporting standards, including the requirement to align with European sustainability reporting standards (ESRS), and aims to increase transparency, comparability, and reliability of ESG data disclosed by companies. As a result of these initiatives, sustainability reporting has become increasingly important for businesses, as stakeholders demand more transparency regarding ESG performance.

Traditionally, sustainability reports are generated manually by collecting data from multiple sources within the company, analyzing it, and presenting it in a structured format. This process is not only tedious and time consuming, but it is also error-prone and may lead to inconsistency. With the rise of generative AI, knowledge graphs, and Enterprise Resource Planning (ERP) systems, sustainability reporting can now be automated, streamlined, and made more accurate. Generative AI can also improve the granularity of sustainability reporting, allowing companies to highlight specific areas of improvement and track progress over time. This level of detail provides stakeholders with a more transparent view of a company's ESG performance, which is increasingly becoming a critical factor in business decision-making.

The platform which is being implemented in collaboration with Fraunhofer Austria, explores how combining LLMs, knowledge graphs, and data from ERP systems such as SAP can enhance sustainability reporting. The sustainability reporting system generates reports using KPIs and data from ERP system as well as knowledge graph and formats the resulting report using LLM. Compliance manager and executives are the primary consumers of the reports, while the domain experts ensure that the knowledge graph (KG) is accurate and up-to-date. The platform keeps monitoring documents published by regulatory bodies in order to automatically identify new KPIs, in case regulations or requirements change.