Assuring Sustainable Futures: Auditing Sustainability Reports using AI Foundation Models

Ensuring compliance of sustainability reports, especially Environmental, Social, and Governance (ESG) reporting, with the EU Taxonomy is essential in the European Union. In parallel, a significant transformation of Artificial Intelligence (AI) can be observed, shifting from task-specific models towards Foundation Models. This study investigates the incorporation of AI Foundation Models into the auditing process of ESG reports. OpenAI's GPT, a foundation model, is utilized in this study to analyze sustainability reports to assess their compliance with the EU Taxonomy and providing auditors with critical insights. The integration of Foundation Models with traditional auditing methodologies signifies the advent of an innovative epoch in auditing of ESG reports, characterized by enhanced efficiency and insights.