AI-driven carbon accounting, sustainable finance can transform ESG compliance, renewable investments, says Michael

Feyisayo Ogunyemi Michael is a Chartered Accountant and AI-driven sustainability specialist. With his expertise spanning AI-driven sustainability accounting, carbon accounting, sustainable finance, and renewable energy, Michael, a holder of advanced degree in Sustainability with a specialisation in energy and finance from Eastern Illinois University, USA spoke with KINGSLEY JEREMIAH on the many implications of AI-enhanced financial mechanisms for carbon accountability, sustainable investments, and the role of machine learning in renewable energy finance.

Your expertise spans accounting, sustainability, and AI-driven finance. What inspired this interdisciplinary focus?

Growing up in Nigeria, I saw firsthand the economic and environmental challenges linked to resource management. My background in accounting gave me a strong foundation for financial analysis and corporate sustainability, but I soon realized that traditional accounting needed to evolve to capture environmental impacts and carbon costs.

Over the past decade, my work has spanned finance, AI applications, and sustainability, providing me with hands-on experience in corporate sustainability strategies, carbon finance, and AI-powered financial modelling. I have helped organizations integrate AI-driven carbon accounting frameworks, develop predictive sustainability finance models, and contribute to policy discussions on green finance and ESG compliance.

Your research on AI-driven carbon accounting has gained significant attention. What are your key findings?

One of my primary findings is that AI-powered carbon accounting enhances corporate transparency, improves ESG compliance, and attracts sustainable investments. Many companies struggle with accurately measuring their carbon footprint due to inconsistent reporting standards and manual data collection.

My research proposes an AI-integrated carbon accounting model that leverages machine learning for real-time emissions tracking, blockchain technology for verification and transparency, and predictive analytics to align businesses with global sustainability goals such as the Paris Agreement and the Science-Based Targets Initiative (SBTi). This AI-powered approach ensures greater accuracy in carbon reporting and helps businesses optimize their ESG performance.

How is AI transforming green finance and renewable energy investments?

Finance plays a crucial role in accelerating renewable energy adoption, and AI is reshaping sustainable finance by optimizing investment decisions and risk assessments. My research highlights how AI-driven risk modelling improves climate finance and due diligence, how green bonds and sustainability-linked loans benefit from machine learning, and how AI-powered carbon credit valuation enhances emissions trading.

By integrating AI into climate finance, organizations can reduce uncertainty, attract ESG-conscious investors, and lower capital costs for renewable energy projects.

What role do small and medium-sized enterprises (SMEs) play in AI-driven sustainability finance?

SMEs are vital to the global sustainability transition, yet they often face financial and technical barriers to adopting AI-driven carbon accounting. My research suggests that AI-powered financial tools can bridge this gap by enabling AI-based credit scoring for green finance access, automated ESG analytics for compliance and reporting, and AI-driven carbon credit trading platforms to monetize emissions reductions.

Governments and financial institutions must support SMEs by creating regulatory sandboxes that allow them to test AI-driven sustainability solutions without excessive compliance burdens.

ESG reporting is now a major focus for businesses. How can AI help ensure compliance while maintaining profitability?

AI-powered ESG analytics are transforming compliance by enabling businesses to automate reporting, enhance transparency, and identify sustainability risks proactively. My research emphasizes that AI-driven ESG monitoring detects reporting anomalies and ensures regulatory alignment, machine learning models optimize energy efficiency and carbon reduction strategies, and predictive analytics improve ESG investment decisions, attracting ethical investors.

Companies that embrace AI-powered ESG frameworks gain a competitive edge, reduce financial risks, and enhance operational efficiency.

How is AI-driven carbon accounting shaping global sustainability policies and corporate strategies?

AI is revolutionizing carbon markets and regulatory frameworks by enabling machine-learning-based emissions tracking for regulatory compliance, blockchain-enabled carbon registries for transparency and fraud prevention, and automated emissions trading systems (ETS) for seamless carbon credit exchanges.

To prevent greenwashing and enhance accountability, my research calls for harmonized global AI-carbon accounting standards that align with evolving ESG policies and financial regulations.

In 2023, you won the Best Paper Award from the International Journal of Multidisciplinary Research in Science, Engineering, and Technology (IJMRSET). Can you share more about this achievement and the impact of your research?

Winning the 2023 Best Paper Award from IJMRSET was a tremendous honour. My paper, “AI-Powered Carbon Accounting: Transforming ESG Reporting Standards for a Sustainable Global Economy,” was selected from over 500 submissions worldwide. The award recognized my research for its innovative approach to integrating artificial intelligence with environmental sustainability reporting.

The study presents a framework that leverages AI technologies such as machine learning, natural language processing, and blockchain to revolutionize carbon accounting. It demonstrates how these technologies improve the accuracy, efficiency, and transparency of ESG reporting. The selection committee highlighted the methodological rigor, interdisciplinary relevance, and real-world applicability of my research, particularly in demonstrating how AI-driven solutions enhance corporate sustainability practices.

This recognition came at a crucial time when businesses and regulatory bodies are prioritizing sustainability and looking for more efficient ways to track and report environmental impact. My research provides a data-driven approach to AI-powered environmental reporting, featuring case studies of successful AI implementations across industries. The award also reinforces Eastern Illinois University’s position as a leader in AI and sustainability research.

This achievement motivates me to continue advancing AI-driven financial and sustainability frameworks that help organizations transition to more accountable and transparent environmental reporting practices.

What’s next for your research?

My upcoming research will deepen the integration of AI, blockchain, and carbon accounting, with a focus on machine-learning-driven emission tracking and forecasting, AI-powered financial models for decarbonization investments, and blockchain-enabled carbon credit markets for enhanced transparency.

I also plan to mentor emerging researchers and collaborate across disciplines to develop AI-driven sustainability solutions.

Any advice for aspiring researchers in this field?

Embrace a multidisciplinary mindset. The future of sustainability and finance requires collaboration across AI, accounting, finance, and environmental science. Stay curious about AI advancements in carbon accounting and green finance, ensure your research has a real-world impact on policies and industry practices, and focus on technology-driven sustainability solutions for long-term change.

The future of finance is AI-driven and sustainable, and those who integrate technology into ESG strategy will lead the way.

 

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