With all the buzz around Generative AI, it’s easy to forget that artificial intelligence (AI) has been driving innovation across industries for years. Environmental, Social, and Governance (ESG) and risk management are no different. However, at the rate AI is advancing and as the amount of raw data available for analysis continues to expand, the need to understand AI is more pressing than ever.

AI is transforming ESG, turning complex data into predictive insights and reshaping our approach to risk. But what does this mean for the industry, and how can professionals leverage this technology to maintain a competitive edge? The future of AI in ESG and risk management is not just a matter of technological advancement but a narrative of how we evolve with it.

This ebook dives into how AI works when applied to ESG, shares a few practical examples of what it looks like in real life, and offers a few predictions for what comes next.

Dive deeper into the mechanics of how AI works in ESG and equip your organization with the insights needed to enhance your ESG practices. Fill out the form below to access your copy.

We are excited to announce the SESAMm MCP Server, a new integration that brings SESAMm's ESG controversy data directly into your preferred AI assistant. You can now get answers on a company's ESG risk without leaving the AI assistant: no switching platforms, no extra logins, just one workflow.

The MCP server is built on the Model Context Protocol, an open standard originally developed by Anthropic and now supported by all major AI assistants. Setup takes less than five minutes.

Ask Your Portfolio Anything

The SESAMm MCP Server gives your AI assistant direct access to SESAMm data. From there, the AI can retrieve the right information and synthesize it into a clear, contextualized answer, not just hand back raw data. Ask about a company's top controversies over the last 12 months, compare CES scores across a shortlist, or run a UNGC screen on a portfolio: the assistant handles everything and returns a contextualized, source-linked answer in seconds. Every result traces back to the underlying SESAMm cases and documents, so you can verify the output.

Standardized  Reports Made Easy

Once you have a workflow that delivers the output you need, you can save it as a Skill, whether that's a standardized ESG summary, a deal-ready risk table, or a customized controversy brief. It's a fast, easy way to customize reports and standardize workflows across your team.

For example, if your Sustainability team builds a customized ESG report, they can save it as a Skill and share it internally with the rest of their organization. From there, every colleague on your organization's SESAMm MCP, whether they sit in Sustainability, Credit, or Deal teams, runs the exact same report, in the exact same format.

Key Benefits of the SESAMm MCP Server

• Standardized, shareable reports and processes: Save any query as a Skill and share it with the team. Everyone runs the same trusted process, in the same format, every time.
• Portfolio screening at conversational speed: Rank an entire portfolio by peak CES, flag UNGC violations, and surface high-risk names, all from one query and with no manual aggregation.
• ESG answers without leaving your workflow: Query any company's controversies, CES score, or UNGC status directly from your AI assistant and get a clear, contextualized answer in seconds, with no platform login required.

As 2025 kicks off, we stopped to take a look at the significant environmental, social, and governance (ESG) controversies of 2024, as we do every year. In this article, we dive into the three public companies with the most controversies for each pillar: environmental, social, and governance, analyzing the companies and the wider impact of the controversies themselves. Join us as we analyze these key moments that have not only influenced public opinion but also shaped the future of responsible business practices.

ESG Risks: Focus 2024

Starting with environmental risks, biodiversity and ecosystems, climate change, waste management, and atmospheric pollution emerged as the most scrutinized sub-risks in 2024. These issues were primarily tied to greenwashing, such as the Mercer Super case and energy companies' expansions at the expense of climate change.

Meanwhile, for social controversies, working conditions and fundamental human rights took center stage. Notably, some companies were linked to forced labor, while coffee supply chains were linked to child labor. Boycotts over the war on Gaza have also been a major highlight of 2024.

Finally, for governance, fraud and legal investigations have been a big driver of controversies, mainly linked to financial fraud cases. This was followed by terrorism financing linked to the war on Gaza, as well as corruption and bribery charges.

Environmental Controversies: Top 3 Public Companies

Shell

In 2024, Shell faced a host of environmental controversies, particularly through its Nigerian subsidiary, Nigeria Delta, which was implicated in serious water pollution due to oil spills. The company dealt with several other notable controversies, including a €15 million compensation related to the spills, a New York City lawsuit over climate change, and a landmark emissions ruling from a Dutch court. Additionally, the company faced condemnation from U.S. lawmakers for alleged greenwashing practices, a carbon credit scandal, and a water contamination lawsuit resolved with a  $230 million settlement.

ExxonMobil

2024 was a challenging year for ExxonMobil. First, its Hammerhead project was hit by an FDA-required Environmental Impact Assessment to evaluate the potential ecological risks. Then, conflicts with Venezuela arose over environmental concerns, followed by several U.S. lawsuits. California, Kansas, and Puerto Rico all sued the company for issues ranging from global plastic pollution and greenwashing to trade law violations. Additionally, ExxonMobil was targeted in a climate lawsuit and faced ongoing fallout from the 1989 oil spill. Protests from groups like CalPERS and student activists highlighted dissatisfaction with ExxonMobil’s environmental practices, emphasizing the company's broad regulatory and public relations challenges.

TotalEnergies

Coming in at number three, TotalEnergies dealt with several environmental controversies, notbably protests related to its East African crude oil pipeline project in Tanzania and Uganda. The company has also been accused of greenwashing and misleading sustainability claims while struggling with oil leaks at its Donges refinery and Egina field. On top of these environmental controversies, TotalEngeries faced key governance and social controversies, including a $48 million fine by the U.S. Commodity Futures Trading Commission (CFTC) for attempting to manipulate the European gasoline market in March 2018. There are also ongoing investigations into an attack in Mozambique.

Social Controversies: Top 3 Public Companies

Boeing

In 2024, Boeing faced significant challenges due to safety concerns and production controversies, which have fueled employee unrest and public skepticism. Recent incidents, including a missing door plug attachment on a Boeing 737 Max and investigations into quality control lapses at Boeing and its supplier Spirit AeroSystems, have eroded trust among small businesses reliant on the manufacturer. Whistleblower testimonies and increasing scrutiny from Congress and the FAA highlight systemic safety failures. These developments suggest a difficult path ahead for Boeing as it works to regain credibility amid ongoing struggles.

Pfizer

In 2024, Pfizer faced scrutiny after EU documents revealed over 4.9 million adverse events and 3,280 deaths linked to its COVID-19 vaccine, especially among women and individuals aged 31-50. Critics allege Pfizer continued distribution despite knowing the risks, questioning the EMA's approval. Additionally, DNA contaminants, including carcinogenic SV40 sequences, have been reported in the vaccines. A whistleblower disclosed that Pfizer employees were offered a "separate" COVID vaccine, raising concerns about access inequality. Kansas has filed a lawsuit accusing Pfizer of misleading the public about vaccine safety; meanwhile, the company faces fines in the UK for excessive pricing of an anti-epileptic drug.

Meta

In 2024, Meta faced intense scrutiny and legal challenges due to multiple controversies, including a significant data breach, allegations of failing to protect children, and privacy concerns. The company settled a $1.4 billion lawsuit related to facial recognition practices and was fined $220 million by Nigeria for violating data laws. Additional lawsuits from school districts and the Consumer Protection Association highlighted issues related to social media addiction and mental health impacts on teenagers.

Governance Controversies: Top 3 Public Companies

Alphabet

2024 was a legally challenging year for Alphabet, facing numerous antitrust issues globally. For instance, Allegro sued Alphabet for $568 million over anti-competitive practices, and the U.S. Justice Department accused Google of monopolies in the search engine and Android app markets. It has also faced an antitrust ruling, which it plans to appeal. In Europe, Google was scrutinized under the Digital Markets Act and fined 71 million euros in Turkey for anti-competitive behavior. Additionally, France imposed a $271 million fine on Google for using news content without publisher consent, and India began investigating Google's gaming app policies. These incidents highlight Alphabet’s ongoing regulatory battles across multiple continents.

Meta

2024 was not only full of social controversies for Meta. The company also encountered governance challenges across multiple jurisdictions. In Europe, Meta faced hefty fines totaling over €1 billion for a data breach and violating EU antitrust rules, alongside investigations for non-compliance with the Digital Markets Act. The company was also involved in a lawsuit from the AMI media association over advertising practices and investor lawsuits linked to the Cambridge Analytica scandal. In South Korea, Meta was fined $15 million for collecting personal information illegally, and in Ireland, a €91 million GDPR compliance fine was imposed. In addition, further complications arose from EU investigations into potential election interference and foreign disinformation. On top of that, Meta faced new lawsuits in Japan over fake advertisements, illustrating the global extent of its legal and regulatory challenges.

Apple

2024 saw Apple wrestling with significant legal and regulatory issues worldwide. The Democratic Republic of Congo accused Apple of using conflict minerals, raising ethical sourcing concerns. In Europe, Apple settled for $14.4 billion over illegal tax benefits and faced a $2 billion EU antitrust fine related to Spotify. Additional investigations included non-compliance under the EU's Digital Markets Act, anti-competitive probes in Spain, and a UK class action over monopolistic data storage practices. In Brazil, Apple was required to remove restrictions on in-app payments. The company also settled a lawsuit involving an iTunes gift card scam and contended with a patent infringement lawsuit in China from Shanghai Xiao-I, highlighting Apple's extensive legal challenges in its global operations.

Conclusion

In conclusion, the controversies surrounding environmental, social, and governance issues in 2024 have underscored the urgent need for accountability and transparency within corporations. As these companies grapple with significant backlash and legal challenges, it is clear that stakeholder expectations are evolving. The demand for responsible practices is louder than ever, and the consequences of neglecting these issues can be severe, impacting not just public perception but also financial stability and sustainability.

SESAMm’s AI Technology Reveals ESG Insights

Discover unparalleled insights into ESG controversies, risks, and opportunities across industries. Learn more about how SESAMm can help you analyze millions of private and public companies using AI-powered text analysis tools.