Built-in, not bolt-on
ESG and AI require ground-up transformation, not surface-level attention
ESG cannot be a bolt-on; it needs to be built-in.
What does this mean exactly? Well, it needs to be integrated across the company and should be part of everyone’s job.
That’s still not very helpful, is it?
Fundamentally, material ESG changes will upend business models, processes, and products. It may involve integrating a circular model into a manufacturing process or diversifying supply chains to protect against shifting US policy. You might be a stakeholder-centric business, like higher education or healthcare, and it may require new approaches to a growing set of diverse stakeholders.
Yet, these may still be bolt-on efforts if not approached from the ground up, and who has time or budget to do that?
Well, if you’re considering AI projects, it provides an interesting comparison to ESG efforts, and you might be falling into the same trap.
Let’s look at a personal example.
Recently, I’ve been using Generative AI to help my middle daughter research and select colleges to apply to this fall.
She’s interested in writing musicals and would like to perform a bit as she’s learning. Still, writing is the primary focus.
I was an English major who went into technology, sales, and landed in ESG, so you can imagine how little I know about this field. As I worked with Anthropic’s Claude back and forth, two things became clear.
Musical Theatre is its own discipline, not to be confused with Theatre.
Writing musicals is a more specialized field, often reserved for graduates rather than undergraduate programs.
And so, the conversation continued when I hit a transformational shift.
Here was the big a-ha moment: I asked Claude what I should be asking to help inform its answers, which gave us way more granularity and surfaced some interesting aspects, including a possibility for voice acting, avoiding colleges in the south (too hot), and more.
From there, we had a new tool. We worked with Claude on a list meeting to discuss more specific requirements and set ourselves to list her requirements, which was a big pivot. This opened up new conversations, considerations, and possibilities.
However, what is most incredible is that we looked at no traditional college sites. We did not consult the infamous US News & World Report list, which has been the subject of controversy due to its ranking system. Instead, we looked at sites like Playbill to see where performers on Broadway had gone.
In finding the right musical theatre programs, we are discovering that there are program chairs and others to connect with along the way, offering deeper expertise than the model or public websites.
We simply asked the questions, had a conversation, and worked independently to research programs.
AI has the potential to upend any rating and ranking system, displacing industry experts to inform, rather than assess. It can lead YOU to do the assessing with a boost of direction.
Quite transformational, no?
Think about the places where we make decisions this way. We examine restaurant reviews, Amazon reviews, and the best of this or that, as well as rating and ranking the ESG performance of companies to inform our investment decisions.
Yet, when AI is used to upend the entire process, amazing things can happen.
ESG is the same. Let’s revisit the above examples a little deeper:
Integrating a circular model into a manufacturing process can extend the life of components or materials, thereby creating additional value for the company and its stakeholders.
Diversifying supply chains can help protect against shifting US policy, ensuring reliability and reducing volatility.
For stakeholder-centric businesses, such as those in higher education or healthcare, paying close attention to diversity and inclusion can open new markets and enhance product usability.
The risk arises when we treat ESG (or AI) as just a tool rather than the transformational force it could be. When we lead with values (pushing against it, like they do in Texas) or relegate it as simply ‘less’ (like arbitrarily lowering carbon), we’re scratching the surface of what ESG can do.
The companies that will thrive aren't those that bolt on ESG reporting, set goals, or add new sustainability features. They're the ones asking, "What if we approached this as a fundamental redesign opportunity rather than an add-on project?" just like my daughter and I did with college selection.
Here's the thing. While some companies are merely scratching the surface, others are utilizing ESG to transform entire industries, stakeholder experiences, and their value chain. The question isn't whether you have time, budget, or resources for this transformation, but whether you have time to be left behind.
AI and Editorial Content Disclosure Statement
This article was developed with assistance from Claude Sonnet 4. I utilize AI to assist with researching information and reviewing initial drafts for clarity and structure. All final editorial decisions, perspectives, and conclusions remain my own and do not reflect the views of any employer or affiliated organization.
This content should not be considered professional advice. All information is gathered from publicly available sources and is provided for informational and educational purposes only. Readers are encouraged to verify information independently and seek professional guidance when appropriate.