Feyisayo Ogunyemi, a Nigerian-born Chartered Accountant and Artificial Intelligence sustainability expert, has introduced an AI-powered carbon accounting model designed to improve corporate transparency and Environmental, Social, and Governance (ESG) compliance.
Ogunyemi, an award-winning researcher, shared in a statement on Wednesday that the AI-based model could help companies attract sustainable investments by addressing persistent challenges in measuring carbon footprints—issues that are often caused by inconsistent reporting standards and manual data collection methods.
His research proposes a solution that uses machine learning for real-time emissions tracking, blockchain technology for enhanced verification and transparency, and predictive analytics to help businesses meet global sustainability targets such as the Paris Agreement and the Science-Based Targets Initiative.
“This AI-driven approach improves the accuracy of carbon reporting and supports businesses in optimizing their ESG performance,” Ogunyemi said.
This development comes at a time when companies worldwide are facing increased regulatory scrutiny and growing investor demand for transparent ESG reporting. Ogunyemi emphasized that AI is revolutionizing sustainable finance by improving investment decision-making and risk assessments, especially as ESG considerations become more integral to corporate governance.
For Nigeria and other African nations grappling with energy challenges and limited financial resources amid climate concerns, Ogunyemi believes AI-powered risk modeling could enhance climate finance and due diligence efforts. His research underscores how green bonds and sustainability-linked loans can benefit from machine learning, while AI-driven carbon credit valuation could streamline emissions trading.
“AI-enabled ESG analytics are reshaping compliance by automating reporting, boosting transparency, and proactively identifying sustainability risks,” he said. “AI-based ESG monitoring can also detect anomalies in reporting, ensuring alignment with regulations.”
Ogunyemi noted that integrating AI into climate finance would reduce uncertainty, attract investors focused on ESG, and lower capital costs for renewable energy projects. However, despite Nigeria’s large number of small and medium-sized enterprises (SMEs) facing a difficult business environment, he pointed out that financial and technical barriers hinder their ability to adopt AI-based carbon accounting.
His research suggests that AI-powered financial tools could help bridge this gap through AI-driven credit scoring for green finance access, automated ESG analytics for compliance, and AI-facilitated carbon credit trading platforms to monetize emissions reductions.
“Governments and financial institutions must support SMEs by creating regulatory sandboxes that enable them to test AI-driven sustainability solutions without overwhelming compliance requirements,” he said.
Ogunyemi, who holds an advanced degree in Sustainability specializing in Energy & Finance from Eastern Illinois University, earned the Best Paper Award in 2023 from the International Journal of Multidisciplinary Research in Science, Engineering, and Technology. His paper, titled AI-Powered Carbon Accounting: Transforming ESG Reporting Standards for a Sustainable Global Economy, was selected from more than 500 submissions.
