Nigerian Researcher Develops AI-Powered ESG Model to Enhance Corporate Sustainability

Feyisayo Michael, a Nigerian-born Chartered Accountant and AI sustainability expert, has unveiled an innovative AI-powered carbon accounting model designed to improve corporate transparency and compliance with Environment, Sustainability, and Governance (ESG) standards. The model aims to address long-standing challenges in accurately measuring carbon footprints, often hindered by inconsistent reporting and manual data collection, helping companies attract sustainable investments.

Michael’s system integrates machine learning for real-time emissions tracking, blockchain for verification, and predictive analytics to align businesses with global sustainability goals like the Paris Agreement. This AI-powered model promises to enhance the accuracy of carbon reporting and optimize corporate ESG performance, offering a more efficient solution for businesses looking to meet regulatory standards.

As ESG compliance becomes increasingly crucial worldwide, companies are under heightened scrutiny from regulators and investors demanding greater transparency. Michael’s research shows how AI is transforming sustainable finance, improving investment decisions, and mitigating risks, particularly in countries like Nigeria and other African nations facing energy crises and climate challenges. His AI-driven model is set to streamline green bonds, sustainability-linked loans, and carbon credit valuation.

Despite the growing interest in AI for sustainability, Michael highlights challenges for small and medium-sized enterprises (SMEs) in Nigeria, where financial and technical barriers limit the adoption of these advanced tools. His research advocates for AI-based financial solutions, such as automated ESG analytics and AI-driven carbon credit trading platforms, while urging governments and financial institutions to create supportive regulatory environments for SMEs to test these solutions without heavy compliance burdens.

SOURCE: PUNCH