Evolving Corporate Values

"this position paper challenges the outdated narrative that ethics slows innovation. Instead, it proves that ethical AI is smarter AI—more profitable, scalable, and future-ready. AI ethics is a strategic advantage—one that can boost ROI, build public trust, and future-proof innovation. Key takeaways include: 1. Ethical AI = High ROI: Organizations that adopt AI ethics audits report double the return compared to those that don’t. 2. The Ethics Return Engine (ERE): A proposed framework to measure the financial, human, and strategic value of ethics. 3. Real-world proof: Mastercard’s scalable AI governance and Boeing’s ethical failures show why governance matters. 4. The cost of inaction is rising: With global regulation (EU AI Act, etc.) tightening, ethical inaction is now a risk. 5. Ethics unlocks innovation: The myth that governance limits creativity is busted. Ethical frameworks enable scale. Whether you're a policymaker, C-suite executive, data scientist, or investor—this paper is your blueprint to aligning purpose and profit in the age of intelligent machines. Read the full paper: https://lnkd.in/eKesXBc6 Co-authored by Marisa Zalabak, Balaji Dhamodharan, Bill Lesieur, Olga Magnusson, Shannon Kennedy, Sundar Krishnan and The Digital Economist.

Nature: “to be or not to be optional?” Short answer is “not”. Nature has never been optional for ISSB. Since our creation at COP26 in Glasgow, nature has been embedded in our work for a simple reason: the global economy depends—directly or indirectly—on ecosystem services. Impacts on those ecosystems create risks that capital markets need to understand and price. Dozens of nature-related industry-specific disclosures were already present in the SASB standards, which we integrated into our solutions in 2022. Our first standard, IFRS S1, from its exposure draft in March 2022 to its finalization in June 2023, has required companies to report all sustainability-related risks and opportunities (including nature) when investor material. These arise from relationships, dependencies, and impacts across operations and value chains, over the short, medium, and long term. So, simply put, without considering nature, a company cannot comply with IFRS S1. IFRS S2 also captures nature- and social-related aspects of climate. We reinforced this publishing Educational Material on “Nature and social aspects of climate-related risks and opportunities” in December 2023, ahead of the standards’ effective date (January 2024). What we are working on now is specific nature-related disclosures incremental to all the existing requirements in S1, S2 and SASB, enhancing their application. So why not introduce a new “S3” standard now? When we moved our nature research into standard-setting last October, we made clear already that any new standard would have a later effective date or be voluntary. The reason is practical: more than 40 jurisdictions are in the process of putting ISSB standards into law. This involves major legal and regulatory changes and processes, often affecting hundreds or thousands of companies. 17 jurisdictions go live this year alone. At this stage, changing S1 or S2—or introducing a mandatory S3—would heavily disrupt that process. That’s why our incremental nature disclosures will initially be voluntary during this initial wave of adoption of our existing Standards. We have determined that a Practice Statement (PS) is at this time the most practical way now for the following 5 simple reasons.  A PS follows full due process, including public consultation via an exposure draft (ED), which we target for the biodiversity COP in October. The ED will also ask stakeholders whether a different standard-setting approach would be preferable Once issued, companies using the PS will achieve outcomes equivalent to applying a Standard.  Jurisdictions which are ready to act can adopt it immediately.  And when conditions allow, the PS can be converted into a formal ISSB standard, subject to public consultation. We are happy to bring more granularity on Nature related financial disclosures to investors and banks, drawing from the work of the TNFD and we will continue engaging with stakeholders to guide our next steps on the way.

Sustainability-Related Financial Reporting Standards 🌎 Sustainability reporting is undergoing a structural transformation. Multiple voluntary frameworks are converging into a unified system aimed at improving consistency, comparability, and relevance of sustainability-related financial disclosures. This shift is being led by the IFRS Foundation through the creation of the International Sustainability Standards Board, which released the first two global baseline standards in 2023: IFRS S1 and IFRS S2. IFRS S1 sets out the general requirements for disclosing sustainability-related risks and opportunities that could affect an entity’s prospects. IFRS S2 focuses specifically on climate-related disclosures and builds directly on the TCFD recommendations. The TCFD, which played a critical role in guiding corporate climate reporting since 2017, was officially dissolved in 2024. Its core recommendations were fully integrated into the new IFRS standards, reinforcing their status as the new global benchmark. This consolidation also brings together elements from the SASB standards, the Integrated Reporting Framework, and the CDSB, ensuring that the IFRS standards reflect established best practices while addressing existing fragmentation. One of the most important changes is the requirement to align sustainability-related disclosures with financial statements. Reports must cover the same reporting period and be published at the same time, reinforcing the link between financial and non-financial performance. Countries are already beginning to adopt or align with the new IFRS standards. Brazil, Turkey, and Nigeria are early adopters. Other jurisdictions such as the United Kingdom, Australia, and Singapore are moving toward mandatory implementation. The consolidation of sustainability reporting standards under IFRS signals a broader trend toward financial system integration. It reflects growing market expectations for decision-useful sustainability information and positions sustainability as a core element of enterprise value reporting. Source: Verdani Partners #sustainability #sustainable #esg #business #reporting

#AI in the public sector? And yet it moves! And it’s a prime example of how technological advancement requires the highest social and ethical standards. “Ethical Integration in Public Sector AI”: the new IAB X Center for Responsible AI Technologies study is out. It addresses the ethical design of AI in the public sector, with a focus on #PublicEmploymentServices (PES). While AI is increasingly employed to streamline administrative processes and improve service delivery, its application in employment mediation raises fundamental concerns regarding #fairness, accountability, and democratic legitimacy. The EU AI Act has further underscored the urgency of addressing these challenges by classifying employment-related AI systems as high-risk. We examine how ethical and social considerations can be systematically embedded in the development and implementation of public sector AI. Using the German PES as a case study, we introduce the “Embedded #Ethics and Social Sciences” approach, which integrates ethical reflection and practitioner involvement from the outset. Qualitative insights from interviews with caseworkers highlight the socio-technical challenges of implementation, particularly the need to reconcile efficiency with citizen trust. We propose concrete design elements emerging from the integration of ethical and social considerations into system development: data ethics, bias, fairness, explainable AI. The approach supports compliance with new regulatory requirements but also strengthens human oversight and shared decision-making.

Humanizing AI Through the Kano Model In an era where generative AI has become a ubiquitous offering, true differentiation lies not in merely adopting the technology but in integrating human values into its core. Building on my earlier discussion about applying the Kano Model to Gen AI strategy, let’s explore how this framework can refocus development metrics to prioritize ethics and human-centricity. By aligning AI systems with human needs, organizations can shift from functional tools to trusted partners that inspire lasting loyalty. Traditional metrics such as speed, scalability, and model accuracy have evolved into basic expectations the “must-haves” of AI. What truly elevates a product today is its ability to embody values like safety, helpfulness, dignity, and harmlessness. These qualities, categorized as “delighters” in the Kano Model, transform AI from a transactional tool into a meaningful collaborator. Key Human-Centric Differentiators Safety: Proactive safeguards must ensure AI systems protect users from risks, whether physical, emotional, or societal. Safety is non-negotiable in building trust. Helpfulness: Personalized, context-aware interactions demonstrate empathy. AI should anticipate needs and adapt to individual preferences, turning routine tasks into meaningful experiences. Dignity: Ethical design principles—fairness, transparency, and privacy—must underpin AI development. Respecting user autonomy fosters long-term trust and engagement. Harmlessness: AI outputs and recommendations should prioritize user well-being, avoiding unintended consequences like bias, misinformation, or psychological harm. This human-centered approach represents a paradigm shift in technology development. While traditional KPIs remain important, they are no longer sufficient to stand out in a crowded market. Organizations that embed human values into their AI systems will not only meet user expectations but exceed them, creating emotional connections that drive loyalty. By applying the Kano Model, businesses can systematically align innovation with ethics, ensuring technology serves humanity rather than the other way around. The future of AI isn’t just about efficiency it’s about elevating human potential through thoughtful, responsible design. How is your organization balancing technical excellence with human values?

🚨 If you work in AI, blockchain, compliance, sustainability or digital governance, this report is NOT optional reading. It’s essential. 🔍 “Blockchain as an Enabler of Trusted AI”, produced by INATBA’s AI & Blockchain Convergence Task Force, is the most comprehensive and timely exploration of how blockchain can help restore trust in AI systems—from algorithmic transparency to ESG compliance and decentralized governance. Here’s why you should read it now: ✅ It goes beyond hype and offers concrete mechanisms for integrating ethics into AI using blockchain: auditability, smart contracts for ethical compliance, decentralized oversight via DAOs, and privacy-preserving ZKPs. ✅ It directly addresses the regulatory convergence between the EU AI Act, GDPR, ESG mandates, and Web3 infrastructures—essential knowledge if you're preparing for the future of tech governance. ✅ It provides realistic solutions to complex challenges like algorithmic bias, data colonialism, and ethical automation—especially in healthcare, justice, and finance. ✅ It outlines how blockchain-based digital trust layers will anchor AI in human values, transparency, and resilience, with mechanisms to measure, verify and reward ethical behavior through tokenization and automated ESG compliance. 🧠 Bonus: It’s written by a task force of global experts, with insights you won’t find in mainstream AI discourse. 📥 Download it. Highlight it. Share it with your policy, tech, and sustainability teams. 👉 If you believe AI must be ethical, inclusive, and verifiable—this is your blueprint. #AI #Blockchain #EthicalAI #TrustTech #DigitalGovernance #ESG #DAOs #ZKP #INATBA #ResponsibleTech #HumanCentricAI Let’s build Alfredo Yousuke Hidenori Carlos Carlos Yuki Jun

📢 New analysis on the EU’s draft “ESRS 2.0” sustainability reporting standards. Important changes to consider! The European Commission says the revised standards would reduce:  • Mandatory datapoints by 60%+   • Total datapoints by 70%+   • Reporting costs by more than 30%  Some of the biggest changes include:  • A much more top-down double materiality assessment   • Expanded ability to omit commercially sensitive information   • More flexibility on GHG reporting boundaries   • Three-year reliefs for certain value chain disclosures   • Reduced granularity in several environmental and social disclosures Importantly, double materiality remains. The real question will be whether simplification improves usability or whether it allows disclosures to be watered down. Unlike the changes on who was in scope, I believe these changes will support a more efficient and effective set of sustainability disclosures.  The consultation period is open until June 3, with final adoption expected later this year. Have your say on the consultation here: https://lnkd.in/eJNhpe-Q If you have any questions on how this might impact you, don’t hesitate to reach out!  #esrs #csrd #esgreporting #esgregulation #sustainabilityreporting 

Building ESG: Decoding ESG Reporting: A Roadmap for Sustainable Business ________________________________________ ESG reporting is gaining momentum as a key tool for businesses to demonstrate their commitment to sustainability and create value. It involves disclosing information on a company's environmental, social, and governance (ESG) performance. Why is ESG Reporting Important? * Stakeholder Demand: Over 90% of S&P 500 companies published ESG reports in 2021, indicating a growing demand from investors, customers, and other stakeholders for transparency on ESG issues. * Value Creation: ESG reporting can help companies identify and manage risks, improve their reputation, enhance their brand image, and attract investors. * Sustainability Goals: It aligns businesses with global sustainability goals and contributes to a more sustainable future. Best Practices for ESG Reporting: * Identify Material Issues: Conduct a materiality assessment to identify and prioritize ESG issues relevant to your business and stakeholders. * Set Targets and KPIs: Establish clear, measurable targets and key performance indicators (KPIs) to track progress. * Engage Stakeholders: Collaborate with stakeholders throughout the reporting process to ensure their perspectives are reflected in the report. * Seek Assurance: Obtain assurance from external providers to enhance the credibility and reliability of your ESG data. * Report on Impact and Value Creation: Clearly communicate how your ESG activities contribute to creating value for your business and stakeholders. Common ESG Reporting Frameworks and Standards: * Global Reporting Initiative (GRI): A widely used framework for sustainability reporting. * Sustainability Accounting Standards Board (SASB): Provides industry-specific standards for ESG disclosure. * Task Force on Climate-related Financial Disclosures (TCFD): Focuses on climate-related risks and opportunities. * International Integrated Reporting Council (IIRC): Promotes integrated reporting that connects financial and non-financial information. Are you ready to embrace ESG reporting and demonstrate your commitment to sustainability? Share your thoughts and experiences in the comments below! Please feel free to share (Disclaimer: Views are personal, should not be related to organisations view) #buildingEsg #circulareconomy #sustainablefinance #esgreporting #esgstrategy #esgrisk #climaterisk #climatechangeaction #climaterisks #india #emissions #esgratings #esg #cop28 #greenertogether #SDGs #sustainability #business #csr

SOME leaders got it ALL WRONG 🔥 Perks like pizza and bean bags? Cool, but they’re not what keeps people invested. The real glue is respect, fairness, and opportunity - the kind of fundamentals that build culture, not just vibes. 1. Respect and Fairness • Let them be heard: Make space for voices. When people feel seen, trust grows. • Keep it real: Recognition should be earned, not handed out like party favours. Reward merit - it’s what keeps the culture honest. 2. Opportunities That Matter • Growth isn’t optional: People need to see a way forward. Create space for them to level up in skills and responsibility. • Access for all: Don’t gatekeep. Give everyone the same shot to thrive. 3. Pay What They’re Worth • Respect their value: Competitive pay isn’t a bonus - it’s the baseline. Undervalue people, and you lose them. 4. Balance is Power • Flexibility is the future: Time is currency. Respect their personal lives as much as their output. • Support > Pressure: Build a culture that lets people take care of themselves without guilt. 5. Well-being is Non-Negotiable • Safety is everything: From mental health to physical spaces, make sure they know they’re protected. 6. Feedback That Hits • Guide, don’t micromanage: Feedback should empower growth, not tick a box. • Open up the floor: Honest conversations build stronger teams. 7. Empowerment Through Trust • Let them own it: Autonomy isn’t just freedom - it’s a vote of confidence in their skills. • Push for bold ideas: Back their risks with resources and belief. 8. Recognition With Depth • Make it personal: A thank-you isn’t enough. Show them you see the real work behind the scenes. • Celebrate like it matters: Forget cookie-cutter celebrations. Honour wins in ways that reflect your team’s energy. The extras are surface-level. The essence is what sticks. When you nail the fundamentals - respect, fairness, and opportunity - you’re not just building a team. You’re building culture. Something real, something lasting. 💡Reno Perry

The era of standalone sustainability reporting is officially over 🌎 With the latest updates to the UK Sustainability Reporting Standards (UK SRS), nonfinancial data is now subject to the exact same rigorous audit scrutiny as your core financials. For C-Suite executives and Sustainability Managers across the UK, EU, and the US, this represents a fundamental shift in corporate governance. Recent geopolitical instability and energy market disruptions have made one thing clear: Understanding your environmental impact and supply chain vulnerabilities is no longer just about compliance. It is about sheer business survival and operational resilience. In my recent conversations with enterprise CFOs, the tone has completely shifted. CFOs are no longer simply asking if their company is compliant. They are asking if their ESG data can survive a financial audit. If your organization still relies on fragmented workflows and manual spreadsheets, you are carrying a massive business risk. Here is what the new standard of "audit-ready" sustainability requires: 📊 Moving beyond manual processes: Manual data collection leads to credibility gaps and poor transparency. At Sweep we work with companies who tell us they need consistent, entity-level data that flows seamlessly across distributed operations. 🔗 Mastering Scope 3 emissions: Over 90% of a company's carbon footprint is typically hidden within its value chain. Tackling this requires systems capable of real-time tracking across complex, global supply chains. 🤝 Breaking down data silos: Sustainability, finance, procurement, and risk teams must operate from a single source of truth. Every reported number must be backed by documented methodologies that can stand up in the boardroom. Treating the UK SRS as a simple reporting checkbox will expose your company to financial penalties and an erosion of investor confidence. Conversely, leaders who integrate nonfinancial data into their core business strategy will turn transparency into a distinct competitive advantage. The clock is ticking on mandatory disclosures. Are your systems ready for financial-grade scrutiny? 💡 If you are unsure how to get there, you are not alone. Follow SWEEP’s LinkedIn page to join a global community of leaders. We share weekly, expert insights to help you navigate complex global regulations, build audit-ready systems, and turn your sustainability data into your strongest business asset. 👉 Follow us here: https://lnkd.in/eg-vuEaM