Microsoft Integrates AI for ESG Reporting

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by KnowESG
KnowESG_Microsoft Integrates AI for ESG Reporting | AI use in sustainability
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Microsoft has enhanced its Cloud for Sustainability offering with new data and artificial intelligence (AI) capabilities aimed at assisting customers in measuring, reducing, and reporting their environmental impacts.

Within Microsoft Fabric, the cloud hyperscaler's software-as-a-service (SAAS) analytics platform, sustainability-focused data services have been introduced, along with a version of the Copilot AI tool and an AI model tailored for the Microsoft Sustainability Manager platform.

Microsoft Fabric acts as a centralised hub for enterprise data from various sources, providing a valuable resource for innovative enterprises seeking to leverage AI effectively.

The updated features in Microsoft Fabric enable organisations to analyse and report on large volumes of environmental and social data, facilitating actionable insights.

Satish Thomas, Microsoft's corporate VP of industry clouds, highlights that customers can accelerate their sustainability progress through out-of-the-box ESG and biodiversity data models, connectors, and reporting capabilities.

In tandem with these developments, Microsoft is integrating AI more closely with its Sustainability Manager platform. Copilot assists leadership teams and chief sustainability officers (CSOs) in drafting ESG reports, creating tables, and synthesising data to meet reporting requirements, such as those outlined in the Corporate Sustainability Reporting Directive (CSRD) from the EU.

Thomas stresses the importance of human oversight in conjunction with AI insights to ensure accuracy and compliance with regulatory standards.

Intelligent Insights, a new AI model within Microsoft Sustainability Manager, enables thorough analysis of emissions data, identification of emission reduction opportunities, and data-driven decision-making.

This AI model helps organisations identify both short- and long-term reduction opportunities based on historical trends, seasonality, and anomalies in the data, offering critical support for manual ESG data management.

The AI insights model can uncover trends and correlations, such as facilities transitioning to renewable energy, aiding in strategic decision-making.

While initially focused on carbon emissions, Microsoft Sustainability Manager now has water and waste management, providing a comprehensive view of an organisation's sustainability impact.

Real-world examples, such as Södra and Allegiant Stadium, demonstrate the practical benefits of Microsoft's AI-driven sustainability tools. Södra uses Microsoft Cloud for Sustainability to empower its employees with actionable insights from ESG data, while Allegiant Stadium leverages Microsoft Sustainability Manager to enhance energy efficiency and overall sustainability efforts.

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Source: SDxCentral

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