Salesforce, at Dreamforce 2023, announced its plans to utilize AI technology to transform its environmental, social, and governance (ESG) reporting platform, Net Zero Cloud. The platform, powered by “Einstein,” will provide auto-generated responses to simplify the ESG reporting process for businesses. Ari Alexander, General Manager and VP, highlighted the significance of Net Zero Cloud, stating that it will help companies achieve net zero by streamlining ESG reporting.
ESG, which evaluates a company’s impact on people and the planet, focuses on environmental stewardship, making it a crucial criterion for Net Zero Cloud. Salesforce developed the comprehensive sustainability solution to enable corporations to easily access and report their environmental footprint across all scopes – 1, 2, and 3. Additionally, the platform addresses the S and G criteria metrics and generates reports in accordance with recognized ESG reporting standards such as SASB, CDP, GRI, and the EU Corporate Sustainability Reporting Directive (CSRD). Starting next year, approximately 50,000 businesses, including US-based multinational companies, will be required to comply with the EU CSRD, which mandates reporting on climate-related financial risks, societal impact, and supply chain emissions (Scope 3).
Salesforce has enhanced Net Zero Cloud by introducing two additional capabilities: CSRD Report Builder and Materiality Assessment. The CSRD Report Builder automates the generation of CSRD reports, while the Materiality Assessment helps companies identify the most material aspects to focus on.
McKinsey reports that successful ESG implementation can reduce operating costs by up to 60%. However, finance officers spend a significant amount of time collecting and disclosing ESG data. This is where generative AI technology, such as Salesforce’s Einstein for Net Zero Cloud, proves valuable. Einstein suggests responses based on prompts aligned with specific reporting framework criteria, simplifying the ESG report authoring process. By referring to previous ESG reports, impact and compliance reports, and other data uploaded to the platform, Einstein generates automatic responses for each item in the report. The new features of Net Zero Cloud empower companies to manage their ESG disclosures efficiently, which is increasingly important as governments make ESG reporting mandatory.
The CSRD Report Builder enables businesses to generate ESG reports according to CSRD requirements, including “double materiality.” This capability expands the platform’s report builders, while the Materiality Assessment helps ESG managers determine the most material aspects for their company. With ESG-aligned results, companies can design a more effective ESG reporting strategy.
Several companies, including Rossignol, the iconic winter sports brand, have already adopted Salesforce Net Zero Cloud for their ESG disclosures. Rossignol uses the platform to manage its carbon emissions, taking responsibility for its environmental impact and accelerating its journey to net zero. Salesforce has also demonstrated its commitment to climate action by implementing multiple initiatives at COP27 in Egypt last year. Additionally, the company launched the Net Zero Marketplace, a carbon credit solution that simplifies the process of purchasing carbon credits.
Einstein for Net Zero Cloud will be available in Spring 2024, while the CSRD Report Builder and Materiality Assessment features will be available starting October this year. As ESG reporting becomes increasingly mandatory, Salesforce’s dedication to sustainability shines through, providing businesses with a valuable tool to achieve net zero. The latest innovations of Net Zero Cloud empower companies to navigate ESG disclosures more easily and efficiently.