The software entertainment industry, otherwise known as the video gaming or gaming industry, has seen unique and significant growth from 2019 to present day. The industry saw a massive uptick in users due to the effect of covid 19 quarantines and has not seen a slowdown since. A fast-growing, relatively new industry cemented its influence globally and has now begun to change the way that society socializes and has influenced the way that media is consumed and produced. Because of its relatively short history, many are unaware of the climate impact and sheer amount of energy it takes to produce, host, and play the games that are now a standard form of entertainment for over 3 billion users worldwide.

The difficulty or lack of tracking, reporting, and communicating of ESG data is not something unique to the software entertainment industry. However, the industry's position of influence between tech and manufacturing would make the gaming industry the perfect subject for developing and testing software that could streamline annual reporting and ESG communication using data that is more accessible than other industries with more complex pipelines.

This capstone looks into the relationship between stakeholders in the software entertainment industry and data processes supported by artificial intelligence. AI-assisted collection, generation, and comparison of ESG data across industry stakeholders goes further to ensure accurately reported progress toward a more sustainable, future-proof economy.

Problem Statement

In the software entertainment industry, consumers are unaware of the impact that video games can have on the environment and are hesitant to change their gaming habits despite climate change. In addition, producers have little incentive to form more sustainability practices and no forms of accountability for sustainable investment. However, with the influx of exposure and new advances within the software entertainment and tech industry, consumers are becoming more aware of the influence and impact that the gaming industry has. In a very competitive and growing market of gaming, sustainability can bring the competitive advantage that investors are increasingly interested in. Companies need to put much more emphasis on this if they want to grow and thrive.

Solution Mapping

Our team met to gather what we knew about our problem and list by scope how our solution could have the most influence and effect. We landed on a three-step process that would allow us to effect change at every scope within the production process using an AI Certification and Reporting program in addition to a free tool to aid us with awareness and data collection.

We then restructured our research plan to maximize our impact between the investor and producer. Our next steps were to evaluate what value we could bring to the stakeholders and what that could look like with an AI toolset.

The Solution: ES.Genius

ES.Genius is an AI-driven ESG tracking and report-generating program concept with online published results and communication. ES.Genius would make it easier for a company to track, plan, and publish ESG reports for investors and consumers alike. with ES.Genius, a company would be able to connect information about subsidiaries, network with sustainable investors, and update consumers on NetZero plans and projects.

The Solution: ES.Genius Data Model

You will find attached the visual representation of our data model, a list of programs, and input options that will provide the data points we will use to inform our AI engine. We are using PWC's ESG auditing structure; Blackrock, Vanguard, and Prosus Sustainability investment requirements; and Sustainalytics data point statistics to inform our model and program base. Each dot represents a category for the sustainability certification. Each square represents internal and external sources that will be used to inform the category.

Our model would pull data from connected human capital, accounting, and project management Saas programs in order to inform our ESG Audit Report Generation and tracking tools. Most competitive ESG tracking and rating tools on the market either use only external data to inform their ratings or use limited internal data to inform energy use and emissions only. Our program would use a combination of internal and external data in order to get a full view of a company's ESG progress and standing.

For example, one of the 39 categories that we analyze in our AI-assisted audit is workplace diversity. Our internal data collection for this would be ADP. using ADP, we can pull information of each employee's demographic. In addition to the internal data, the code would collect external data through LinkedIn. By using more than one data point for each category, both internally and externally, we get a better picture of how a company operates.

The program would be written with a combination of both AI SQL language and Rule-Based Python language. Rule-based coding would be ideal for the quantitative data that we would need to collect, such as energy used, water used, demographic populations, and competitive salaries. Alternatively, AI is best suited for collecting and comparing qualitative data and would therefore be used for the more difficult-to-define measurements such as Health and Safety and Corporate Instability.

The Solution: The Program

ES. Genius will have an Investor, company, and public page each with its unique dashboard and tools.

The Solution: The Program-Investor Page

We aim to help investors connect with appropriate companies with long-term sustainability approaches. Throughout our platform, investors are able to follow companies that they are interested in and get updated information promptly in an intuitive way. The investor page would be how companies and financial stakeholders could request information from companies, track project progress from key accounts, and have risk assessments automated based on the data from the companies within the portfolio.

The Solution: The Program-Company Page

Beyond a seal or attestation certificate, our sustainable company certification offers other advantages. The procedure turns into a tool intended to build a more resilient organization. A company's sustainability accreditation is more than just a seal of approval. A commitment to organizational change is what counts. These ESG activities go beyond one-off tactics to cover social and environmental initiatives. Sustainability can help businesses cut costs, increase sales, and give them a fresh edge over rivals. We will support our customers to get certified around ESG by partnering with several institutions, such as B Lab, LEED, and others.

Companies will manage their sustainability activities through our platform and get recommendations enhancing ESG efforts based on our AI technology which measures accurately, simulates, tracks, and optimizes their emissions.

The Solution: The Program- Public Page

In subsequent research and innovation, we will devote ourselves to strengthening the connection between technology and target users, enhancing user education and participation, and raising sustainability awareness. This includes developing a tool that can track computer statistics such as RAM speed, CPU temperature, and refresh rates.

Users will also be able to stay up to date on the sustainability progress of top game producers and discover new studios devoted to green gaming. ES.Genius will provide relevant news, company reports, and special partnership releases that incentivize users and producers alike to interact in a sustainability-centered digital space.

The Solution: Logic Model

The participation in ESG planning and reporting amongst gaming companies is low, The awareness of the environmental impact that the gaming industry has is overlooked, and Corporate transparency is low.

We would input a small team of software engineers, UI designers, and partner relations specialists; a risk and stakeholder analysis; as well as a roadmap informed by KPIs and our ESG requirement list. The small team would mobilize after investment to deploy our key strategies and activities: collecting more information on our market, customer base, implementation plan, and partners in order to build buzz, make connections, and refine our program. Long term, the program would be used in more diverse industries and be outfitted for more complex supply chains.

Conclusion

Through the investigation and research on the sustainability of the game industry, it is not difficult to see that although many large enterprises have mature ESG systems and are committed to improving their sustainability, there are still many problems. The participation of small and medium-sized enterprises in sustainable practices is low, the importance of sustainability is insufficiently popularized, corporate ESG transparency is low, and sustainability-related projects lack exposure and investment. Our platform can build a bridge for companies, investors, and gamers alike.We can assist companies with excellent ESG data collection and reporting tools, provide investors with more sustainable investment options, and raise awareness among game consumers.