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Digital & AI

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Digital Tools and AI Changing ESG Implementation in 2025

Empowered consumers are prepared to make changes in response to disruptions!

Digital & AI

Published Aug 24, 2025

Chris Bendall, Founder and CPO at Orocon

Chris Bendall

Founder, CPO

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Empowered consumers are prepared to make changes in response to disruptions!

Digital & AI

Published Aug 24, 2025

Chris Bendall

Founder, CPO

ESG implementation is evolving fast. No longer is it sufficient to collect data once a year or rely on manual reporting.

In 2025, organisations are increasingly turning to digital tools —artificial intelligence, Internet of Things (IoT), digital twins, unified platforms — to embed ESG in everyday operations. These tools help cut costs, reduce risk, speed up compliance, and improve strategic decision making. Below are key tools, adoption trends, case studies, and what companies should expect.

Key Tools & Trends Driving ESG Implementation

  1. AI-powered ESG analytics and reporting

    • Tools like ESGReveal use Large Language Models (LLMs) to extract structured data from corporate reports. A 2023 study found it achieved ≈ 76.9% accuracy in data extraction and 83.7% in disclosure analysis for environmental and social data. arxiv.org

    • Another study of Chinese listed firms showed that the extent of AI adoption is positively correlated with ESG ratings. ewadirect.com

  2. Real-time monitoring & IoT / Smart Sensors

    • By 2025, the number of connected environmental monitoring devices globally is past 25 billion, creating a continuous stream of data on energy use, emissions, water discharge, etc. CarbonMinus

    • Digital twins are being used for scenario planning: simulating interventions before implementation. Use of digital twins jumped ~40% in 2024. CarbonMinus

  3. Unified ESG / sustainability platforms & dashboards

    • Platforms launched in 2025 (e.g. Comply 360 by Achilles; Integrated Sustainability Solutions by Re Sustainability Ltd) automate ESG data collection, support CSRD, GRI, ISSB, etc., and shift firms away from disconnected spreadsheets. Business Web Wire

    • Dashboards now offer live visibility, regulatory updates, and project-level tracking so that senior management can act sooner.

  4. Automation, Natural Language Generation, and Responsible AI

    • Generative AI is helping with written disclosures, regulatory document drafting, and detecting discrepancies in reports. Singhfinity+1

    • Studies emphasise responsible AI frameworks: transparency, data quality, explainability are essential to avoid bias or greenwashing. link.springer.com+1

Adoption & Market Data

  • The global AI in ESG & Sustainability market was valued at US$ 182.34 billion in 2024; forecast to grow to US$ 846.75 billion by 2032, with a CAGR of ~21.16%. asdreports.com

  • In Saudi Arabia, the average ESG disclosure quality rose from ~39.8 in 2021 to ~54.1 in 2024 (an increase of ~36%), coinciding with rising AI adoption (mean AI intensity from 18.2 to 44.9 over same period). MDPI

  • IDC reported that in Asia/Pacific excluding Japan (APEJ), ~35% of companies had plans or were in process to use AI for ESG metrics management and beyond mere reporting by 2024. Approximately 46% saw GenAI especially useful for ESG data analysis. Communications Today

  • A Gartner forecast: 80% of digital workplace leaders will integrate workplace tools with ESG management by 2027 (up from < 5% today). gartner.com

Implications for Organisations

  • Faster compliance, lower cost: Digitised workflows and automated data reduce the manual labour and errors inherent in ESG reporting.

  • Greater transparency and trust: Real-time dashboards, digital tools allow stakeholders to monitor ESG performance; improves credibility.

  • Ability to anticipate risks: AI and sensor data enable predictive detection of issues (e.g. emissions breach, supply-chain disruption) so you can act before damage occurs.

  • Strategic advantage: Early adopters of these digital tools can differentiate with stronger ESG credentials, invest in innovation, and access sustainable finance more easily.

Challenges & Considerations

  • Data quality and governance: Bad data = bad decisions. Organisations must ensure source reliability, validation, and strong governance of digital tools.

  • Skills gap: Many organisations lack personnel with the digital/AI/ESG hybrid skills needed. A 2024 report found that ~68% of executives indicated moderate-to-extreme gaps in digital/sustainability skills. Reuters

  • Regulatory compliance: Digital tools must evolve with changing standards (e.g. CSRD, ISSB, regional laws). Interoperability across frameworks is key.

  • Energy and environmental cost of digital tools: Data centres, AI training, and continuous monitoring have carbon footprints; companies must consider those and lean toward green or renewable-powered infrastructure.

What to Expect in 2025 & Beyond

  • More AI-native ESG platforms combining strategy, monitoring, reporting, and scenario modelling.

  • Increased use of digital twins for simulation of ESG interventions (e.g. emissions reduction, water usage, treatment).

  • ESG tools offering “plug-and-play” modules for small/medium enterprises: easier onboarding, less customisation required.

  • Tighter regulation around greenwashing and mandatory assurances, which digital tools will help satisfy.

Digital tools are no longer optional in ESG implementation—they’re fundamental. Companies that invest in the right platforms, adopt AI responsibly, build real-time visibility, and close the skills gap will implement ESG not just more efficiently, but more impactfully.

For organisations looking to move beyond periodic reporting into active resilience and sustainable advantage, these are the technologies to embrace now.

How Orocon Integrates Digital Tools Every Day

At OROCON, digital innovation is not a side note—it is embedded in our daily work with clients. We deploy AI-enabled workflows to evaluate ESG risks, apply IoT and satellite data for real-time monitoring, and use advanced dashboards to provide transparent, auditable insights.

Our expert-in-the-loop approach ensures that while digital tools drive speed and precision, human oversight guarantees integrity and relevance. By combining technology with deep ESG expertise, we help organisations move from static compliance to dynamic, future-ready ESG strategies.