Next Article in Journal
Research on the Sustainable Indicator System for Multi-Coal Seam Mining: A Case Study of the Buertai Coal Mine in China
Next Article in Special Issue
Drivers of AI–Sustainability: The Roles of Financial Wealth, Human Capital, and Renewable Energy
Previous Article in Journal
Enhancing the Resilience of Resource-Based Cities: A Dual Analysis of the Driving Mechanisms and Spatial Effects of the Digital Economy
Previous Article in Special Issue
A Digital Sustainability Lens: Investigating Medical Students’ Adoption Intentions for AI-Powered NLP Tools in Learning Environments
 
 
Font Type:
Arial Georgia Verdana
Font Size:
Aa Aa Aa
Line Spacing:
Column Width:
Background:
Article

AI-Enabled ESG Compliance Audit for Stakeholders

by
Eid M. Alotaibi
1,* and
Abdulaziz M. Alwathnani
2
1
Department of Accounting and Information Systems, American University of Sharjah, Sharjah 26666, United Arab Emirates
2
Department of Accounting, Al Yamamah University, Riyadh 11512, Saudi Arabia
*
Author to whom correspondence should be addressed.
Sustainability 2025, 17(21), 9513; https://doi.org/10.3390/su17219513
Submission received: 24 August 2025 / Revised: 14 October 2025 / Accepted: 21 October 2025 / Published: 25 October 2025

Abstract

Environmental, social, and governance (ESG) disclosures face credibility risks due to Scope 2 Greenhouse Gas (GHG) reports lacking standardized compliance checks, raising concerns about their reliability. This study therefore develops and evaluates an AI-enabled artefact for ESG compliance auditing. This artefact applies natural language processing (NLP) to extract reported values, implements rule-based checks grounded in the GHG Protocol, and produces transparent output. A design science research (DSR) approach guided the design, demonstration, and evaluation of the artefact, which was applied to sustainability reports from five technology companies. The results revealed that it replicates auditor judgments and reduces workload by over ninety percent in the sample. These findings serve as a proof-of-concept for automation in ESG compliance auditing. The theoretical contributions include extending the literature on AI in ESG auditing by reframing its role from producing interpretive scores to enabling transparent compliance verification. This study also demonstrates how DSR can help produce artefacts that embed rule-based logic into ESG assurance with rigor and practical relevance. The practical contributions include highlighting how a lightweight tool can enable auditors, regulators, boards, and investors to screen disclosures and benchmark credibility without sacrificing professional judgment.
Keywords: artificial intelligence; natural language processing; scope 2 emissions; compliance audit; ESG audit; design science research artificial intelligence; natural language processing; scope 2 emissions; compliance audit; ESG audit; design science research

Share and Cite

MDPI and ACS Style

Alotaibi, E.M.; Alwathnani, A.M. AI-Enabled ESG Compliance Audit for Stakeholders. Sustainability 2025, 17, 9513. https://doi.org/10.3390/su17219513

AMA Style

Alotaibi EM, Alwathnani AM. AI-Enabled ESG Compliance Audit for Stakeholders. Sustainability. 2025; 17(21):9513. https://doi.org/10.3390/su17219513

Chicago/Turabian Style

Alotaibi, Eid M., and Abdulaziz M. Alwathnani. 2025. "AI-Enabled ESG Compliance Audit for Stakeholders" Sustainability 17, no. 21: 9513. https://doi.org/10.3390/su17219513

APA Style

Alotaibi, E. M., & Alwathnani, A. M. (2025). AI-Enabled ESG Compliance Audit for Stakeholders. Sustainability, 17(21), 9513. https://doi.org/10.3390/su17219513

Note that from the first issue of 2016, this journal uses article numbers instead of page numbers. See further details here.

Article Metrics

Back to TopTop