Governance

AI ESG (Environmental, Social, Governance)

Framework for evaluating AI systems through environmental impact, social effects, and governance practices.

Definition

AI ESG applies Environmental, Social, and Governance criteria to AI systems and AI-developing organizations:

Environmental:

  • Energy consumption of AI training and inference
  • Carbon footprint of AI infrastructure
  • E-waste from AI hardware

Social:

  • AI impact on employment and labor
  • Algorithmic discrimination and fairness
  • AI accessibility and digital divide
  • AI safety and societal risk

Governance:

  • AI ethics policies and oversight
  • Transparency in AI practices
  • Board-level AI oversight
  • AI risk management frameworks

Investors and stakeholders increasingly evaluate companies on AI ESG factors. Disclosure frameworks are emerging for AI-specific ESG reporting.

Sources

  • ESG Frameworks
  • Corporate Sustainability Reporting