CROSS-CUTTING SYSTEM

AI in Sustainability

How artificial intelligence is transforming sustainability practice –
from planetary monitoring to corporate disclosure.

In 30 Seconds

AI is reshaping how we measure, report, and act on sustainability challenges. From satellite-derived deforestation alerts to automated CSRD disclosure, machine learning is becoming embedded across the sustainability stack.

Measurement

Satellite imagery, acoustic monitoring, eDNA analysis – AI makes planet-scale observation possible.

Reporting

Automated data extraction, gap filling, disclosure drafting – AI reduces the burden of compliance.

Action

Scenario modelling, supply chain optimisation, investment screening – AI informs strategic decisions.

The opportunity: Organisations that strategically deploy AI for sustainability gain speed, coverage, and insight. Those that don't risk falling behind on both compliance and competitive intelligence.

Where This Fits

This page explains how AI is used across sustainability – the applications, maturity levels, and key players. It's distinct from AI Capability which describes what Pandion offers.

AI Capability (/ai)

What Pandion offers: our methodology, services, how we work with AI, service packages and pricing.

Service-focused

AI in Sustainability (this page)

What the market looks like: domain applications, technology landscape, key players, maturity, ethics.

Knowledge ecosystem

Why both matter: Understanding the landscape helps you make informed decisions. Understanding Pandion's services helps you act on them.

AI Across the 5 Layers

AI applications vary significantly across the sustainability stack. Here's where AI adds value at each layer:

L1: Planetary Foundations

MIXED MATURITY

Earth system science and planetary boundary monitoring. AI enables global-scale observation and prediction.

Applications

  • • Climate modelling and prediction (DeepMind's GraphCast)
  • • Earth system simulation (Microsoft AI4Earth)
  • • Biodiversity detection (eDNA analysis, acoustic monitoring)
  • • Species identification (image recognition)
  • • Weather forecasting (Google DeepMind, ECMWF)

Key Players

  • DeepMind – Climate/weather AI
  • Microsoft AI4Earth – Earth observation
  • NatureMetrics – eDNA biodiversity
  • Rainforest Connection – Acoustic monitoring

L2: Landscapes & Jurisdictions

GROWING RAPIDLY

Spatial analysis, land use monitoring, and jurisdictional risk assessment. AI makes landscape-scale monitoring practical.

Applications

  • • Land use change detection (deforestation alerts)
  • • Ecosystem classification and mapping
  • • Spatial risk analysis for supply chains
  • • Jurisdictional screening (EUDR compliance)
  • • Fire prediction and monitoring

Key Players

  • Planet – Daily global imagery
  • Global Forest Watch – Deforestation alerts
  • Trase – Supply chain mapping
  • Regrow – Agricultural MRV

L3: Ecosystem Services

EMERGING

Valuing and optimising nature-based solutions. AI enables more accurate carbon quantification and NBS design.

Applications

  • • NBS design optimisation
  • • Carbon credit modelling and verification
  • • Biodiversity credit quantification
  • • Ecosystem service valuation
  • • Restoration outcome prediction

Key Players

  • Pachama – Forest carbon verification
  • Restor – Restoration mapping
  • Sylvera – Carbon credit ratings
  • BeZero – Credit quality assessment

L4: Policy & Governance

EARLY STAGE

Regulatory intelligence and policy analysis. AI helps track the evolving compliance landscape.

Applications

  • • Regulatory horizon scanning
  • • Policy impact modelling
  • • Compliance monitoring automation
  • • Greenwashing detection
  • • Standard interpretation (CSRD, ISSB)

Key Players

  • Datamaran – Materiality & regulatory intelligence
  • RepRisk – ESG risk data, controversy screening
  • EcoVadis – Supply chain ratings
  • Emerging LLM tools – Regulatory interpretation

L5: Corporate Action

GROWING RAPIDLY

Corporate sustainability management – measurement, targets, disclosure, strategy. The most active AI investment area.

Applications

  • • Carbon accounting automation
  • • Disclosure drafting (CSRD, TNFD, CDP)
  • • Supply chain screening & risk
  • • Materiality assessment
  • • Transition scenario modelling
  • • Target setting & pathway optimisation

Key Players

  • Watershed – Carbon measurement & reduction
  • Persefoni – Carbon accounting platform
  • Plan A – Decarbonisation software
  • Clarity AI – ESG data & analytics
  • Normative – Emissions intelligence

AI in the Vertical Flows

AI also transforms the vertical elements that run through all layers – Data Flows and Capital Flows.

Capital Flows

AI influences how capital is allocated to sustainability outcomes.

  • Credit Quality Ratings
    Automated assessment of carbon and biodiversity credits. Risk scoring at scale.
  • Investment Screening
    ESG data extraction, controversy monitoring, portfolio alignment calculation.
  • Climate Risk (TCFD)
    Physical and transition risk modelling. Scenario analysis automation.
  • Portfolio Alignment
    Calculating alignment to Paris, SBTi, net zero. Benchmark tracking.

AI in Sustainable Finance →

Data Flows

AI transforms how sustainability data is collected, processed, and validated.

  • MRV Automation
    Satellite imagery + ML = continuous monitoring at scale. Ground-truth + AI = calibrated accuracy.
  • Data Quality
    Gap detection, anomaly identification, automated validation. Reduces manual QA burden.
  • Satellite-Ground Fusion
    Combining remote sensing with field data. AI models that learn from both sources.
  • Traceability
    Supply chain mapping, deforestation risk, EUDR compliance. AI connects products to places.

AI in Data Flows →

AI for Cross-Cutting Systems

Social Sustainability

  • • Just transition impact analytics
  • • Supply chain social risk detection
  • • Worker safety monitoring
  • • Community engagement analysis
  • • Human rights due diligence screening

See: Social Sustainability

Enabling Systems

  • • Technology infrastructure for sustainability
  • • Data standards and interoperability
  • • Platform integration
  • • API ecosystems
  • • Automation pipelines

See: Enabling Systems

Actors

  • • Different AI maturity by organisation type
  • • Large corporates: sophisticated tools
  • • SMEs: simpler, focused solutions
  • • Investors: data-hungry, automation-ready
  • • NGOs: resource-constrained, high-impact potential

See: Actors

The Technology Landscape

AI for sustainability spans multiple technology categories. Key players by domain:

Satellite & Remote Sensing

  • Planet – Daily global coverage
  • Maxar – High-resolution imagery
  • Sentinel (ESA) – Open data, workhorse
  • GEDI (NASA) – Forest structure LiDAR
  • Umbra – SAR radar imaging

Mature technology, rapidly improving resolution

Carbon MRV

  • Pachama – Forest carbon verification
  • Sylvera – Credit ratings & monitoring
  • BeZero – Quality ratings, risk
  • Chloris Geospatial – Biomass mapping
  • NCX – Forest carbon, US focus

Growing rapidly, consolidation expected

Biodiversity Tech

  • NatureMetrics – eDNA sampling
  • Rainforest Connection – Acoustic AI
  • Restor – Restoration mapping
  • iNaturalist – Species ID (citizen science)
  • GBIF – Biodiversity data aggregation

Emerging, fragmented, high potential

ESG Data Providers

  • MSCI – ESG ratings, indices
  • Sustainalytics – ESG risk ratings
  • CDP – Climate/nature disclosure
  • Clarity AI – AI-driven ESG data
  • RepRisk – Controversy monitoring

Established, but AI integration varies

Disclosure Automation

  • Watershed – Carbon + compliance
  • Persefoni – Carbon accounting
  • Plan A – Decarbonisation
  • Normative – Emissions intelligence
  • Datamaran – Materiality & regulatory

Hot market, significant VC investment

Open Source & Research

  • Global Forest Watch – Deforestation alerts
  • Google Earth Engine – Geospatial analysis
  • Climate TRACE – Emissions tracking
  • OS-Climate – Open climate data
  • Hugging Face eco models – ML for sustainability

Valuable for capability building, lower cost

AI Ethics in Sustainability

AI in sustainability raises important ethical questions. The same technology that enables progress can also enable harm.

Greenwashing Risk

AI can enable greenwashing as easily as detect it. Sophisticated models can generate plausible-sounding sustainability claims without substance.

Counterbalance: AI-powered greenwashing detection tools (RepRisk, InfluenceMap) that analyse claims against evidence.

Data Sovereignty & Indigenous Rights

Satellite monitoring of indigenous lands raises questions about consent and data ownership. Who benefits from biodiversity data extracted from traditional territories?

Best practice: FPIC (Free, Prior, Informed Consent), community benefit-sharing, indigenous data sovereignty frameworks.

Black-Box Opacity

ESG ratings derived from opaque AI models are hard to challenge or verify. What goes into a "sustainability score"? Often, nobody knows.

Response: Demand methodology transparency. Prefer tools with explainable outputs. Treat AI outputs as inputs to human judgment, not final answers.

Training Data Bias

Models trained on historical data inherit historical biases. Carbon models trained on temperate forests may undervalue tropical ecosystems. Risk models may penalise developing regions.

Mitigation: Diverse training data, regional model variants, human expert validation, regular bias audits.

"AI for Good" vs Reality

The narrative of "AI saving the planet" can obscure AI's own environmental footprint (energy use, rare earth mining for hardware) and distract from simpler solutions. AI is a tool, not a saviour.

Who Uses AI for Sustainability

Corporates

The primary market for AI sustainability tools.

  • Disclosure automation: CSRD, CDP, TNFD reporting
  • Supply chain screening: Risk identification, EUDR compliance
  • Carbon accounting: Scope 1-3 measurement, reduction pathways
  • Target setting: SBTi alignment, transition planning

Investors

Data-hungry, automation-ready, willing to pay for quality.

  • ESG ratings: Portfolio screening, benchmark comparison
  • Climate risk: Physical and transition risk modelling
  • Portfolio alignment: Paris Agreement, net zero tracking
  • Controversy monitoring: Real-time reputational risk

Project Developers

Carbon and biodiversity credit creators.

  • MRV: Satellite-based monitoring, verification evidence
  • Credit optimisation: Quantification, additionality modelling
  • Registry integration: Automated reporting submissions
  • Impact tracking: Ongoing outcome measurement

Regulators

Increasingly using AI for oversight and enforcement.

  • Monitoring: Deforestation alerts, emissions detection
  • Enforcement: Identifying compliance gaps
  • Policy modelling: Impact assessment of regulations
  • Greenwashing detection: Claims vs evidence analysis

Researchers

Pushing the boundaries of what's possible.

  • Climate modelling: Earth system simulation
  • Biodiversity analysis: Species distribution, ecosystem modelling
  • Novel methods: New monitoring techniques, algorithms
  • Open source tools: Building capabilities for all

NGOs & Civil Society

Resource-constrained but high-impact potential.

  • Watchdog function: Monitoring corporate claims
  • Advocacy: Evidence-based campaigning
  • Conservation: Species monitoring, protected area management
  • Capacity building: Training local communities

The Pandion View

AI is genuinely transforming sustainability practice. But it's a tool, not magic. The organisations that benefit most are those that combine AI capabilities with domain expertise and strategic clarity.

Where AI Genuinely Helps

  • Scale: Monitoring that would be impossible manually (global deforestation, species detection)
  • Speed: Disclosure preparation, data extraction, report generation
  • Pattern recognition: Identifying trends, anomalies, risks in large datasets
  • Consistency: Applying the same methodology across large portfolios

Where AI Is Overhyped

  • Strategy: AI can inform strategy but can't replace strategic thinking
  • Stakeholder engagement: Human relationships require human connection
  • Context: AI struggles with nuance, local knowledge, cultural factors
  • Novel situations: Models trained on the past may fail in unprecedented futures

As a hybrid professional combining sustainability expertise with AI capability, we help clients navigate this landscape – identifying where AI adds value, selecting the right tools, and ensuring human judgment remains central to strategic decisions.

Explore our AI capability →