Abstract
The aim of this research is to explore the utilisation of AI tools enhancing ESG reporting compliance by South African energy industry companies. The primary research question was, How do industry experts perceive the potential of existing AI tools to enhance ESG sustainable reporting compliance in the energy industry of South Africa?. This was achieved through four research objectives that provided a clear scope, direction and focus to the researcher. Namely, to identify and understand challenges in ESG reporting in South Africa’s energy industry. To review the application and features of global AI tools in ESG reporting. To explore potential enhancements in ESG reporting using AI tools. To gauge stakeholder reception towards AI-driven ESG reporting. The research employed a qualitative research design to address the research question and objectives. The research strategy that supported this research was a Delphi technique, where a list of experts was interviewed over two rounds of interviews. Data collection was conducted using semi-structured interviews through one-on-one online interviews held on Microsoft Teams. That ensured flexible interview meeting scheduling and gathering detailed insights from the participants at their most convenient time and place. These participants were experts drawn from the LinkedIn platform. The list comprised energy company executives and sustainable officers, ESG consultants and advisors, AI tool providers and technology experts and industry analyst and researchers. Findings from the research evidenced that there is no mandate that requires energy companies to report on ESG issues except for companies that are listed on the Johannesburg Stock Exchange. The findings show that there are inconsistencies in ESG reporting and compliance, except for big corporates like Sasol. Issues of greenwashing and treating ESG reporting as a tick box were indicated in the findings. In addition, findings revealed that stakeholders were positive with the idea of adopting artificial intelligence-driven ESG reporting. Furthermore, the findings indicated that artificial intelligence tools can be a game-changer and enhance data collection issues, efficiency, compliance and standardisation among other challenges of ESG reporting being faced by stakeholders.