Is your corporate ESG text comprehensive and balanced?

Complying with corporate sustainability reporting (CSRD) standards can be a formidable task. You may have to analyze a vast amount of data to identify your materiality topics, assess the activities of your peers and understand the image your annual reports present to the reader.

At Deloitte, we are using the transformative power of technology to automate much of this arduous process. Our ESG-specific AI tool leverages recent advances in AI and large language models to analyze text. It is adept at extracting ESG-related actionable insights, which are crucial for navigating the intricacies of CSRD standards effectively.

Cognitiva significantly enhances our ability to understand and assess double materiality within various industries and geographies. It enables both our clients and our in-house professionals to delve deeper into the related content in annual reports and other documents. As well as identifying key material topics, the tool can help discern industry trends and mitigate the risk of misstatements.

Cognitiva not only benchmarks peers based on their material topics reporting, it also evaluates the content and the tonality of the report. It analyzes the extent to which their reports follow balanced reporting principles and evaluates both the sentiment and the quality of the language used. This analysis provides a clear picture of how companies present themselves relative to their peers, fostering a better understanding of their positioning within the industry.

Combining our expertise in AI and ESG

Traditionally, identifying and assessing the importance of material topics, along with their associated risks and opportunities, would require the scrutiny of vast amounts of documentation by experts. To streamline this process, our AI engineers have collaborated closely with our ESG advisors to train a sophisticated large language model based on GRI and ESRS standards. This collaboration has created an expert tool capable of detecting, extracting, and evaluating ESG statements within reports with remarkable precision.

Our experts have also designed the tool to ascertain whether a company’s discussion of topics, their statistical representation, and tone provide a realistic depiction of the situation, while evaluating whether topics have been discussed proportionately. It even scrutinizes the language used, determining whether it is positive, negative or neutral. Utilizing this sentiment analysis facilitates an accurate comparison of ESG-related reporting with industry peers.

At Deloitte, we are proud to offer this innovative AI tool, which will empower our clients with deeper insights and a clearer understanding of their industry landscape. We believe that through advanced technology and expert collaboration, we can continue to lead in delivering exceptional value and strategic guidance.

Interested in using Cognitiva?

Start your AI journey with Cognitiva by contacting our expert Alireza Azarfar.