Greenwashing Gets Washed Out: New AI Technology Lifts the Veil on Sourcing Ethics
As consumers and investors demand greater corporate accountability, Permutable AI is utilizing innovative AI tools to tackle two major obstacles to business sustainability – greenwashing and supply chain opacity. In this article, Permutable AI CEO Wilson Chan discusses how the company’s proprietary GreenProof framework and newly launched Supply Chain Links Monitor empower stakeholders with invaluable insights, enabling more ethical and environmentally conscious decision-making.
Amidst a growing global emphasis on sustainability and ethical business practices, this year, we can expect the spotlight increasingly turn to innovative solutions reshaping our understanding of corporate environmental impact.. One thing is absolutely clear – in a world where conscientious consumers and investors are demanding greater accountability from businesses, the imperative to move beyond mere rhetoric and substantiate environmental claims has become paramount.
Let’s take the financial services sector as an example. Greenwashing instances by global banks and financial service companies increased by 70% between 2022-2023. In over 50% of these cases, banks were linked to oil or fossil fuel companies, going against their sustainability claims. Meanwhile, 80% of executives think their companies are doing well with environmental sustainability. This is one of the reasons so many banks currently achieve such high ESG scores in our standard news sentiment analysis. This must become a thing of the past.
Additionally, the critical aspect of supply chain transparency is highlighted by a recent CIPS & Deloitte report into procurement and supply chain resilience showing that rather than being visible, the supply chains of most public- and private-sector organisations are positively opaque. The report found that just 13% can map their entire supply chain network, and that up to 22% have no visibility beyond their immediate suppliers. A major stumbling block to achieving supply chain sustainability.
In light of the above, this article navigates through two advancements we have been working on at Permutable AI to address the above issues – GreenProof, our proprietary greenwashing detection framework, and Supply Chain Links Monitor – our newly launched tool to make relationships within supply chains visible and transparent. With these tools we aim to use AI for good and by tackling greenwashing, elevating transparency, and furnishing stakeholders with invaluable insights.
GreenProof: A Revolutionary Approach to Environmental Impact
At the heart of Permutable AI’s commitment to sustainability lies GreenProof, an innovative framework that we have developed using the latest machine learning techniques along with international financial regulators. GreenProof leverages the power of artificial intelligence to scrutinize and validate a company’s environmental claims, with the aim of providing consumers and investors with reliable insights into the true extent of a business’s commitment to green practices.
In a landscape plagued by greenwashing, where businesses may exaggerate or misrepresent their environmental efforts, GreenProof acts as a beacon of truth. The framework has been developed with advanced algorithms and has the potential to analyse vast datasets, cross-referencing information to verify the authenticity of a company’s sustainability claims. This not only helps consumers make informed choices but also safeguards investors against potential risks associated with false or exaggerated claims.
Supply Chain Links Monitor: Navigating the Complexities of Ethical Sourcing
Beyond the immediate environmental impact of a company’s operations, ethical sourcing and responsible supply chain practices play a pivotal role in determining a business’s overall sustainability. At Permutable AI, we are addressing this crucial aspect through our Supply Chain Links Monitor, offering businesses a tool to navigate the complexities of global supply networks.
The Supply Chain Links Monitor employs cutting-edge AI technology to map and analyse supply chain relationships with unprecedented accuracy. By tracking every link in the supply chain it can provide valuable insights into the environmental and ethical implications of commercial operations.
From the free version to the enterprise version the tool grants users access data from first-tier supplier and customer relationships up to a comprehensive and unlimited network covering supplier, customers and regulators with nformation on up to 200,000 available companies (Enterprise version only) providing unparalleled transparency across corporate supply chains.
As an award-winning business intelligence provider, Permutable AI’s commitment to combating knowledge asymmetry is central to both GreenProof and Supply Chain Links Monitor. In a world where consumers and investors are increasingly conscientious about the environmental impact of their choices, having access to accurate and reliable information is paramount.
Our vision is that GreenProof (in next stages of development) and the Supply Chain Links Monitor (in BETA) will empower stakeholders to make informed choices aligned with their values. Whether deciding on a product purchase, potential supplier or evaluating an investment portfolio, stakeholders can rely on these tools (alongside our free and publicly available ESG data) to cut through the noise of greenwashing and ambiguity and assess the true impact of their decisions.
We are passionate about using our technology to scrutinize a company’s environmental practices which is becoming a critical factor in business decision-making, particularly within the realm of sustainable finance. In particular, GreenProof and the Supply Chain Links Monitor provide the necessary tools to evaluate the long-term sustainability of an investment and highlight those engaged in unethical environmental practices.
Businesses Navigate Complex Landscapes
As we collectively strive to navigate the ever-evolving landscape of sustainability and environmental responsibility, we know that the insights provided by our GreenProof and the Supply Chain Links Monitor will become invaluable. The ability to identify weaknesses in supply chain sustainability, anticipate environmental threats, and align operations with ethical standards in an era where sustainability is a key driver on the global agenda positions businesses not only as conscientious contributors to ecological well-being but also as forward-thinking entities. Ultimately, integrating responsible practices into their core operational strategies must become an imperative.
The development of our GreenProof and the Supply Chain Links Monitor signifies a transformative shift in the approach to sustainability within the business realm. The world is increasingly recognising that sustainability is not merely but an indispensable necessity. Through the research and development of cutting edge tools powered by artificial intelligence, at Permutable AI we are committed to pioneering environmental intelligence as a catalyst for positive change.
These innovative tools empower businesses to navigate the complexities of sustainable practices, ensuring a meticulous scrutiny of environmental claims, fostering transparency, and providing valuable insights into supply chain networks. In an era where responsible business conduct is paramount, our advancements aim to not only combat greenwashing but also increase corporate transparency, instilling a culture of conscientious decision-making, and contributing to a more sustainable and ethically driven global business community.