An interview with Anup Garg, Founder & Director, World of Circular Economy (WOCE)
In the era of climate litigation, politicized sustainability, and rising investor scrutiny, the world of ESG reporting is undergoing a seismic shift. AI is changing how companies collect, validate, and present their sustainability data- but trust, not technology, remains the ultimate differentiator.
In this conversation, Anup Garg, Founder and Director of World of Circular Economy (WOCE), a global sustainability solutions firm operating across 10+ countries, based in Delhi- discusses the future of ESG reporting, the rise of hybrid assurance models, and how businesses can stay authentic amid the noise.
Q1. ESG has moved from voluntary disclosure to boardroom priority. What’s driving this shift in 2025?
Anup Garg:
The biggest driver today is regulation. ESG is no longer a marketing story, it’s a compliance and credibility mandate.
Globally, we’ve seen a tightening of norms: the EU’s Corporate Sustainability Reporting Directive (CSRD) now covers nearly 50,000 companies, requiring detailed, auditable disclosures. The US SEC’s climate rule, though under legal scrutiny, is reshaping investor expectations. In India, SEBI has expanded its Business Responsibility and Sustainability Reporting (BRSR) requirements and is reviewing ESG rating frameworks to prevent ‘greenwashing.’
The message is clear: sustainability data now moves markets. Investors, lenders, and even supply-chain partners demand verified, machine-readable ESG metrics before engagement. Companies that treat ESG as an afterthought risk exclusion from global value chains.
Q2. Despite these mandates, many companies still struggle with data accuracy. Why is manual ESG validation breaking down?
Anup Garg:
Because the scale and scrutiny of ESG data have exploded. Earlier, sustainability teams collected qualitative inputs, now they’re dealing with quantitative metrics across hundreds of suppliers, facilities, and emission sources.
Manual validation, through spreadsheets or scattered reports, simply can’t handle this complexity. A 2024 Deloitte survey found that 68% of companies cite “poor data quality and fragmentation” as their biggest challenge in ESG reporting.
Meanwhile, greenwashing lawsuits have surged globally. More than 50 corporations faced litigation last year for misleading claims, from airlines overstating carbon offsets to manufacturers misreporting renewable energy use. That has made ESG officers more cautious; every unchecked figure can now become a courtroom exhibit.
Manual systems can’t meet that level of accountability. The risk-to-reputation ratio is just too high.
Q3. How is Artificial Intelligence changing the ESG reporting landscape?
Anup Garg:
AI is revolutionizing ESG by making it faster, smarter, and verifiable. Using machine learning and natural-language processing, AI tools can automatically extract emission data from invoices, detect anomalies, and even benchmark performance against peers.
Reports in public domain also note that companies using AI-driven ESG platforms saw up to 40% faster data processing and 30% fewer validation errors. Beyond speed, AI brings something even more important- traceability. Every data point can be linked to its source, creating a transparent audit trail.
That’s critical because ESG disclosures are increasingly treated like financial statements; they must be precise, comparable, and defensible. AI makes that possible by removing human error and building a chain of evidence behind every sustainability claim.
Q4. Does this mean AI will replace human validation in ESG assurance?
Anup Garg:
Absolutely not, and that’s the misconception we need to correct. AI can collect and clean data, but it can’t understand context or materiality. For example, a machine can detect anomalies in water usage data, but only a human expert can assess whether that variance reflects operational changes or reporting inconsistencies.
The future lies in a hybrid assurance model:
- AI for accuracy and efficiency, handling large datasets and pattern recognition.
- Human oversight for interpretation and ethical judgment.
This balance is now being recognized in global frameworks. The International Sustainability Standards Board (ISSB) encourages “assurance-ready” data systems that blend automation with human review. India’s SEBI is moving in the same direction.
So, the goal isn’t to automate everything, it’s to ensure that AI and human intelligence work in sync to build trust.
Q5. How can Indian companies use this transition to gain a competitive edge?
Anup Garg:
India has a unique opportunity to leapfrog. With mandatory BRSR disclosures and growing investor pressure, companies that adopt digital, AI-enabled ESG systems early will have a clear advantage.
Accurate, real-time sustainability data helps firms not just comply but also cut costs, attract capital, and innovate. For example, predictive analytics can flag operational inefficiencies before they inflate energy bills or carbon emissions.
Globally, ESG-compliant suppliers are now preferred partners, particularly by European buyers adapting to the Carbon Border Adjustment Mechanism (CBAM). For Indian exporters, credible ESG reporting could directly translate into market access and investor confidence.
So, it’s not just about compliance anymore, it’s about competitiveness and credibility.
Q6. Finally, how does WOCE help organizations navigate this fast-changing ESG landscape?
Anup Garg:
At WOCE, our mission is to make sustainability measurable, verifiable, and valuable. We work with over 100+ clients across 10+ countries, helping them transition from manual reporting to AI-enabled, audit-ready ESG systems.
Through our digital platforms like esgpro.ai, and Green APIs, etc., we integrate sustainability data from multiple sources, validate it using AI, and align it with both global (GRI, PCAF, CBAM) and local (BRSR) standards.
In short, WOCE helps companies cut through the noise, focus on substance over symbolism, and build the one thing ESG most urgently needs- trust through transparency.