The Advancement of Environmental, Social, and Governance: Classification, Pros/cons Analysis, and AI Application

Environmental Social and Governance has developed as a main focus for evaluating how organizations address sustainability and value development in conditions of global environmental and social issues. This work provides foundations and types of ESG across the three areas and shows how this approach extends analysis that focuses on financial measures. The work examines main benefits of using this approach and considers important difficulties. The analysis also examines how AI systems affect development of ESG in the future. These systems allow improvements in processing data and making predictions and supporting governance operations in ESG analysis but also produce new issues relating to use of energy, inequality and credibility. Overall this work suggests that ESG’s effectiveness depends on finding balance between benefits that develop over time and difficulties in actual use and responsible application of developing technologies.