Industry 4.0-Enabled Environment, Social, and Governance Reporting: A Case from a Chinese Energy Company

Abstract

ABSTRACT Accelerating climate change, deforestation, and pollution have turned a global spotlight on corporate sustainability. Many countries have issued standards on Environment, Social, and Governance (ESG) reporting, especially from heavily polluting companies. ESG disclosure has become a main channel for investors, the public, and other external stakeholders to understand companies’ impact on the environment. However, the current methods of collecting and processing environmental information are insufficient and infrequent, impairing stakeholders’ decision-making. Moreover, the complexity and diversity of environmental measures can inhibit information reliability, accuracy, and objectivity. We propose the use of Industry 4.0 technologies to improve existing ESG reporting processes and demonstrate a novel environmental reporting system that could allow a Chinese energy company to collect and report environmental information in real time, enhancing the completeness, reliability, and efficiency of their environmental disclosure.

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