In deep discussion: (from left) Panel moderator Hui Yin, with Chong, Matthew and Puah discuss how cutting edge AI-technology is augmenting Bursa's CSI Solution.
SUSTAINABILITY has moved from being a "nice-to-have" to a business imperative, a shift that has pressured companies to disclose their ESG impact with greater accuracy and transparency.
Yet, sustainability reporting remains a complex and resource-intensive process, often hindered by fragmented data, evolving regulations and the challenge of collating the data from various departments.
This is where artificial intelligence (AI) can step up as a powerful enabler for organisations to simplify data management, improve disclosure quality and stay ahead of global standards.
Recognising this shift, BoardRoom has collaborated with Bursa Malaysia to champion the adoption of its Centralised Sustainability Intelligence (CSI) Solution.
As Bursa Malaysia's official sustainability reporting channel, the CSI Solution's disclosure module supports the International Sustainability Standards Board (ISSB) IFRS S1 General Requirements for Disclosure of Sustainability-related Financial Information and IFRS S2 Climate-related Disclosures under the National Sustainability Reporting Framework (NSRF).
Together with BoardRoom's sustainability advisory team, this integrated solution offers a seamless end-to-end experience, from onboarding and data input to reporting guidance and strategic advisory, empowering companies to reduce the complexity of sustainability reporting and unlock the corporates true business potential by leveraging on Boardroom's sustainability advisory team using cutting edge AI-technology.
A tool to assist reporting
To provide further insight on Bursa Malaysia's and BoardRoom's collaborated initiative to public-listed companies (PLCs), a discourse was held at Bursa Malaysia on Aug 13 called "Game-Changer: AI-Tech to Elevate Sustainability Reporting and Advisory".
The event was attended by Bursa Malaysia Berhad chief executive officer (CEO) Datuk Fad'l Mohamed and BoardRoom Group CEO Angeline Aw.
It featured a panel discussion on the "Importance of adopting AI in Sustainability Reporting", moderated by Bursa Intelligence executive vice president Wong Hui Yin, with BoardRoom Group Sustainability regional director Chong Kok Wai, CarbonGPT CEO and co-founder Dr Matthew Wong, and Sustenyx managing director Alan Puah, as panel speakers.
Hui Yin mentioned that the current conversation is very much about AI Sustainable Centralised Sustainability Intelligence Solution.
"This is what Bursa is offering to help PLCs (public-listed companies) conform to the NSRF standards. Beyond that, we are also looking into how we can help PLCs to harness the power of AI to help reporting a little bit more elegant and smarter."
Chong pointed out that sustainability data reporting can cause reporting fatigue. "Data collection using AI is the best way to relieve us of all our problems," he said.
"I believe that a sustainable practitioner, or those doing it in-house, should spend more time on initiatives [and] push more on decarbonisation."
He said while reporting is important, those who doing the reporting should harness AI to help them, as that saves them time for more actionable tasks.
Matthew explained that using AI technologies provided by CarbonGPT and Sustenyx can cut down 70% to 80% of the user's time. "Which means potentially, you're saving thousands of hours on compliance," he added. "You [can] use that time on your initiatives, on creating the culture that your company actually embraces."
He pointed out that sustainability is not simply about compliance and keeping the checkpoints.
"The reason why we created an importance on sustainability is to ensure there is business sustainability, there is resilience, so that the market can withstand any change or disruption, and can grow. This is also what Bursa is also looking forward to."
Puah explained that the AI technology used in the Sustainability Ratings Analyser (SRA) was developed together with Bursa Malaysia and aims to help in a number of ways. For one, it helps predict the FTSE4Good score and to identify the immediate opportunities that can be worked on based on the gaps that arise.
The analyser also recommends how users can improve their scores and is able to guide them through the whole journey of rating their companies. Lastly, it can improve a company's score and reflect those accordingly.
"From an AI perspective, everybody is already using it anyway," said Puah. "Do it now. It doesn't matter what stage of the journey you are in. You have to start now because if you don't, you are losing out," he urged.
Delving deeper in sustainability reporting
The second half of the event is a fireside chat with The Edge Malaysia ESG editor Tan Zhai Yun and Chong. Answering a barrage of questions, Chong explained that AI is there to help companies, but ultimately, they will need to produce the data.
"[Presuming] you are the chief sustainability officer (CSO), sustainability head, or double or tripling up as whatever that some of us are, you probably are in a very fragmented situation, asking, 'How am I going to get this done and key into the system (CSI)', so that you can report."
In doing so, the person doing the reporting has indirectly involved the whole company, by involving every department in the process.
When asked if AI can actually be a tool for greenwashing, Chong answered that "cheating" can still occur with or without AI.
"If you want to cheat, you don't really need AI. A lot of people can actually cheat by buying templates," he explained. He then asked whether the report is published as a vanity report or something with substance.
"It's not about printing a very nice image of planting trees. That doesn't help you in your reporting because [you will need to ask] who are the ones reading your report? Who is your target audience?"
He encouraged PLCs to ask themselves the reason for creating a report and mentioned that if the sustainability officer can pose that question to the board itself, there should be no problems.
"I believe all the CSOs will be very happy, because it will be at the top of the agenda," he said.
"That would be the sustainability report, risk opportunities and how to get those into an impactful strategy, where the chief strategy officer will also be involved. So AI will always be at the back to help.
"We can put in all the guardrails, and the regulations but at the end of the day, you'll have to ask yourself how well you're going to do the report and how you are positioning yourself," he said.