The task of ESG compliance, long the domain of spreadsheets, consultants and mounting costs, is getting an AI-powered overhaul.
Brisbane-based startup ESGagent.ai has launched a platform that promises to cut compliance costs by up to 85 percent and make regulatory reporting accessible even to businesses with no in-house sustainability expertise.
The timing is no coincidence. Australia’s new ESG reporting requirements come into effect in 2025, compelling more companies, particularly SMEs, to get serious about sustainability disclosures. But for smaller firms without deep pockets or internal teams, regulatory compliance can be both intimidating and expensive.
ESGagent.ai says it’s targeting that gap directly. Its platform uses a suite of autonomous AI agents to automate everything from data collection to generating reports aligned with frameworks like TCFD, GRI and IFRS.
“ESG expertise has traditionally been accessible only to large organisations with dedicated sustainability teams and massive consulting budgets,” says Shan Vahora, founder and CEO of ESGagent.ai. “We’re changing that. Our platform democratises access to sophisticated ESG capabilities, enabling businesses of all sizes to achieve compliance without massive resource investments.”
From bottleneck to background task
The core offering is a team of AI agents trained to handle specific ESG functions, data requests, deadline tracking, compliance verification and even real-time interpretation of evolving regulations. The system is designed to work like an in-house sustainability team, minus the headcount.
One of these agents, dubbed “Susan,” acts as a virtual ESG analyst. Susan contacts internal and external stakeholders to collect relevant data, checks it against regulatory standards, and drafts reports in the appropriate format. According to Vahora, it’s more than automation, it’s delegation.
“Susan works like a colleague who never sleeps,” he says. “She chases data across departments, ensures nothing is missed, and drafts entire reports based on real-time compliance checks. She’s trained in your company’s specific ESG data, so there’s no generic guesswork.”
A built-in onboarding coach for SMEs
While larger firms might use ESGagent.ai to accelerate reporting cycles, the platform was designed with SMEs in mind.
“We know most SMEs don’t have an ESG expert on staff,” says Vahora. “That’s why each client gets a custom-trained AI agent that builds a knowledge base from their existing reports and sustainability data. From there, it guides them through what’s needed and when.”
The onboarding process includes uploading existing ESG documentation into a central data store, which is then used to build a company-specific model. From there, the AI checks for gaps, aligns the business with the correct standards, and assigns tasks to different agents.
To reduce learning curves, the platform includes pre-built templates, educational resources and a real-time compliance checker. Vahora describes it as “a system that doesn’t just tell you what to do, it walks you through it.”
Where the cost cuts come from
While the idea of replacing ESG consultants with AI might sound bold, the company backs its cost-saving claims with a breakdown.
“Consultants charge $100,000 to $200,000 a year to handle ESG reporting,” says Vahora. “We’re offering a system that delivers the same outcomes, data management, framework alignment, report generation, at a fraction of the price.”
Vahora points out that for a mid-sized company, automating ESG reporting can unlock over $200,000 in annual productivity savings. For larger firms, that figure could rise to $1 million. What’s more, many of these savings come not just from cutting external costs, but from reclaiming internal time.
“A process that usually takes three to six months with consultants can be done in a few weeks,” he says. “There’s no duplicate data entry across frameworks, no manual formatting. That’s where the time and money are lost, and that’s where AI makes the biggest difference.”
Plug and play compliance
For SMEs still grappling with what ESG compliance even looks like, Vahora offers specific examples.
“A manufacturing company might use our platform to determine which CSRD requirements apply to them, and the AI will then break those down into concrete tasks,” he says. “A tech startup might upload emissions data and have our system automatically calculate their carbon footprint and flag missing values. A retail company could assign ESG tasks to staff without hiring a single new person.”
In practical terms, SMEs can log in, check a dashboard, update figures, and generate a verified report, without needing a consultant to explain the acronyms.
The platform also offers a layer of protection against greenwashing. By automatically verifying claims with supporting documentation and aligning them to recognised frameworks, ESGagent.ai helps ensure that sustainability statements hold up under external scrutiny.
Ready for the regulator and the auditor
For Australia’s 600-plus B Corps facing updated certification standards, and companies preparing for the incoming reporting mandates, the platform is pitched as a ready-to-go solution.
And for directors increasingly on the hook for ESG risks, the tool adds an extra layer of governance.
“It’s not just about ticking boxes,” says Vahora. “Our platform gives boards and executives real oversight of ESG risk, from regulatory exposure to reputational damage.”
Delivered as a SOC 2-compliant application, ESGagent.ai also emphasises data privacy, a critical factor for companies handling sensitive information.
As Australian regulators ramp up expectations around ESG, the arrival of AI in compliance may come as a relief. Whether or not it can fully replace human expertise remains to be seen. But if ESGagent.ai delivers even half of what it promises, the era of spreadsheet ESG might be on its way out.
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