What is it about?

Currently, sustainability is a vital aspect for every nation and organization to accomplish Sustainable Development Goals (SDGs) by 2030. Environmental, social, and governance (ESG) metrics are used to evaluate the sustainability level of an organization. According to the statistics, 53% of respondents in the BlackRock survey are concerned about the availability of low ESG data, which is critical for determining the organization’s sustainability level. This obstacle can be overcome by implementing Industry 4.0 technologies, which enable real-time data, data authentication, prediction, transparency, authentication, and structured data. Based on the review of previous studies, it was determined that only a few studies discussed the implementation of Industry 4.0 technologies for ESG data and evaluation. The objective of the study is to discuss the significance of ESG data and report, which is used for the evaluation of the sustainability of an organization. In this regard, the assimilation of Industry 4.0 technologies (Internet of Things (IoT), artificial intelligence (AI), blockchain, and big data for obtaining ESG data by an organization is detailed presented to study the progress of advancement of these technologies for ESG. On the basis of analysis, this study concludes that consumers are concerned about the ESG data, as most organizations develop inaccurate ESG data and suggest that these digital technologies have a crucial role in framing an accurate ESG report. After analysis a few vital conclusions are drawn such as ESG investment has benefited from AI capabilities, which previously relied on self-disclosed, annualized company information that was susceptible to inherent data issues and biases. Finally, the article discusses the vital recommendations that can be implemented for future work.

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Why is it important?

The United Nations laid out the SDGs in 2015 to achieve global sustainability by 2030 . States, individuals, and investors are increasingly aware that firms can play a significant role in addressing societal issues, and the world still is on track to meet the UN SDGs for 2030 . ESG factors are progressively being infused into investment and business management because of their potential to develop superior productivity and longer-term profit growth . The performance of any organization related to its contribution and progress towards sustainability in terms of environmental, social, and governance can be evaluated with the assistance of the ESG approach

Perspectives

he lack of high-accuracy ESG data has caused challenges to evaluate the ESG report. However, Industry 4.0 technologies are capable of overcoming the challenges in ESG data and reports. These facts have inspired this study to present the significance of ESG for sustainability and implementation of Industry 4.0 technologies for obtaining the high accurate ESG data. automatic data collection. The objective of the study is to discuss the significance of ESG data and report, which is used for evaluation of sustainability of an organization. The findings of the study are AI framework serves as a driving force for humans to evaluate the necessary data in ESG metrics so that investors can understand which organizations they have decided to invest in; In any case, AI can provide a solution by acting as a catalytic for scaled sustainable investing via analysis technologies that filter important data; data mining is used to explore relationships and patterns in data by using anomalies and data clusters.

Vaseem Akram Shaik

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This page is a summary of: Technologies Empowered Environmental, Social, and Governance (ESG): An Industry 4.0 Landscape, Sustainability, December 2022, MDPI AG,
DOI: 10.3390/su15010309.
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