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VOL. 10, ISSUE 4 (2025)
AI-driven environmental, social, and governance (ESG) metrics: Bridging the gap between ethical finance and ecological sustainability
Authors
Deepshikha Sharma, Dr. Vikas Kumar Pandey
Abstract
The integration of Environmental, Social, and Governance (ESG)
principles into finance has become a defining marker of sustainable economic
development, yet traditional ESG assessments remain constrained by inconsistent
reporting, reliance on self-disclosures, and limited scalability. This
systematic review examines how Artificial Intelligence (AI) is being applied to
overcome these barriers, focusing on peer-reviewed research published between
2018 and 2025. Through a structured screening and selection process, thirty-two
studies were identified and analyzed thematically. The findings indicate that
AI applications—including machine learning, natural language processing, and
predictive modeling—have significantly improved ESG data quality by detecting
exaggerations in corporate reports, generating reliable rating metrics from
unstructured text, and forecasting ESG performance using financial
fundamentals. These advances not only enhance the credibility of ESG
disclosures but also strengthen their role in ethical finance and ecological
sustainability by supporting more accurate investment decision-making and risk
management. At the same time, the review highlights persistent challenges,
including algorithmic opacity, data heterogeneity, and regulatory uncertainty,
which constrain the broader adoption of AI-driven ESG frameworks. The evidence
suggests that while AI has the potential to serve as a transformative bridge between
ethical finance and ecological outcomes, realizing this promise will require
harmonized data standards, explainable AI systems, and global governance
mechanisms. By synthesizing current progress and identifying gaps, this review
contributes to the growing body of scholarship on sustainable finance and
offers practical insights for policymakers, investors, and corporate leaders.
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Pages:80-82
How to cite this article:
Deepshikha Sharma, Dr. Vikas Kumar Pandey "AI-driven environmental, social, and governance (ESG) metrics: Bridging the gap between ethical finance and ecological sustainability". National Journal of Multidisciplinary Research and Development, Vol 10, Issue 4, 2025, Pages 80-82
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