Nasdaq Launches Sustainable Lens ESG Platform

Illustration of Nasdaq Sustainable Lens platform

(Credit: Nasdaq)

by | Nov 30, 2023

Nasdaq has released its Sustainable Lens software-as-a-service intelligence platform, aiming to help companies deliver transparent, credible ESG disclosures.

As companies begin to face stricter measures for ESG reporting and investors seek improved corporate transparency, companies have expressed difficulties amidst evolving regulations. The Sustainable Lens platform may address this issue by streamlining datasets and disclosures with data-driven insights for professionals involved with sustainability reporting.

The platform features data from over 9,000 companies worldwide and includes an AI-powered ESG assistant that may help generate comprehensible summaries of companiesā€™ disclosures. The assistant may also access company documents and benchmark disclosures against current standards. The platform also features Large Language models informed by sustainability and data science experts on Nasdaq data, and the AI reportedly passed simulated CFA ESG and SASB FSA exams. Its AI-powered chat function also allows users to ask specific questions related to data needed for ESG reporting.

Nasdaq’s research report, The State of Sustainability and ESG in 2023, revealed that out of 7,200 global companies, only 44% currently provide climate-related disclosures aligned with the Corporate Sustainability Reporting Directive (CSRD), International Sustainability Standards Boards’ sustainability and climate-related standards (ISSB), and SEC proposed rules. As some once-optional rules become mandatory, companies may benefit from platforms such as the Sustainable Lens SaaS in meeting such regulations.

Nasdaq Emphasizes How AI Helps Meet ESG Standards Growth

Market reports indicate that few companies feel prepared to meet upcoming ESG regulations. A recent report from KPMG found that only 25% of companies report having ESG policies, skills, and systems in place for independent ESG data assurance.

Further, Nasdaq explains that a considerable amount of resources are needed to meet regulatory demands and to help companies decide on which ESG areas to focus on. ESG is also a comparatively new area for companies, especially for smaller companies, so AI-based services can save teams immense time and effort.

Disclosures are largely qualitative, unstructured, dispersed information sets that could be tedious to address manually, so the Nasdaq platform and others like it can significantly improve reporting efficiency. Especially as companies come under scrutiny for making sustainability claims that are potentially not credible, AI may help ensure reports accurately reflect a company’s efforts.

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