Companies across industries are increasingly required to comply with sustainability reporting regulations, yet the process remains complex and resource-intensive. In response to this challenge, Ghent-based Karomia has developed an AI-powered platform designed to streamline ESG reporting. The company has now secured €2 million in funding from Entourage, imec.istart Future Fund, and imec.istart Fund to enhance its platform further. With regulatory frameworks like the Corporate Sustainability Reporting Directive (CSRD) evolving, businesses seek efficient ways to maintain compliance while addressing sustainability goals.
Karomia’s approach to ESG reporting stands out from past efforts by offering automation that significantly reduces reporting time. While many traditional solutions require months to generate a CSRD-compliant report, Karomia claims to produce a near-final version within hours. The company’s ability to extract and organize existing data efficiently sets it apart from earlier methods, which demanded extensive manual input. Compared to other AI-driven sustainability platforms, Karomia emphasizes its ability to assist businesses of all sizes, including SMEs that follow the VSME standard.
How Does Karomia’s AI-Driven Platform Work?
Karomia’s platform leverages artificial intelligence to analyze a company’s internal data, populate ESG reports, and identify missing information. This automated approach simplifies compliance by minimizing the manual workload typically associated with sustainability reporting. By addressing two primary challenges—managing large data sets and evaluating sustainability impacts throughout supply chains—the platform seeks to provide companies with actionable insights. The system’s efficiency is particularly beneficial for businesses struggling to keep up with the dynamic landscape of ESG regulations.
What Impact Will the New Investment Have?
The recent funding will enable Karomia to refine its technology further, making CSRD compliance more accessible to a broader range of companies. The company intends to enhance its platform’s capabilities beyond reporting by offering solutions that support long-term sustainability strategies. This expansion aligns with the increasing demand for tools that not only ensure compliance but also help businesses integrate sustainability into their operations. With over 45 clients already using the platform, including enterprises and SMEs, Karomia aims to scale its offerings to a wider audience.
“Our clients are often surprised to discover they already have much more CSRD information than they initially thought – it just needs to be extracted and organised,”
said Simon Hiel, CTO of Karomia.
The company collaborates with consulting firms such as Mobius and PwC, which incorporate the platform into their advisory services. By leveraging AI, Karomia aims to eliminate bureaucratic hurdles, allowing companies to focus on executing their sustainability initiatives rather than navigating complex reporting processes. According to COO Jens Verhiest, the platform’s efficiency enables businesses to dedicate more resources to meaningful sustainability actions rather than prolonged compliance efforts.
“ESG reporting doesn’t have to be complex in the age of AI. Our customers focus on what matters: prioritizing and executing their sustainability initiatives, while Karomia’s knowledge machine eliminates the bureaucracy of report writing,”
said Verhiest.
As sustainability reporting requirements continue to evolve, businesses face increasing pressure to maintain transparency. AI-driven solutions like Karomia’s offer an alternative to conventional manual reporting approaches, which often require significant time and effort. The ability to generate reports quickly could be particularly beneficial for smaller enterprises that may lack the resources to dedicate to extensive compliance processes. However, the effectiveness of AI in ESG reporting will ultimately depend on the accuracy of data input and the adaptability of the platform to future regulatory changes.
