| Abstract |
The integration of Artificial Intelligence (AI) and Machine Learning (ML) technologies
in sustainability reporting has brought about a transformative shift in regulatory practices,
particularly in the realms of environmental, social, and governance (ESG) metrics. This paper
explores the profound implications of AI and ML in revolutionizing regulatory reporting processes,
focusing on their role in streamlining data collection, analysis, and narrative crafting for more
efficient and impactful sustainability reporting. By leveraging AI and ML tools, organizations can
enhance the accuracy of predicting financial indicators such as Return on Equity (ROE) and
Return on Assets (ROA) of public enterprises in Europe based on ESG indicators and other economic
metrics. Furthermore, this research investigates the impact of ESG initiatives on the financial
performance of public European enterprises and discusses how these factors contribute to the
advancement of Corporate Social Responsibility (CSR) policies and practices. Leveraging a
combined approach of ML techniques and inferential models, this study aims to provide insights
into the transformative impact of AI and ML in sustainability reporting, emphasizing ethical
considerations and transparency in their utilization. |
