AI Policy

Version 1.0 · effective 21 May 2026
Owner: Dominik Kaufmann · Next review: 21 May 2027 (or sooner if material regulatory changes occur)
Effective immediately. Binding for all client engagements and internal work.
1. Purpose 2. Principles 3. Providers 4. Data classification 5. Audit trail 6. EU AI Act 7. Incident procedure 8. Staff & contractors 9. Review 10. Binding effect Appendix: Checklist

1. Purpose and scope

This policy describes how Kaufmann Sustainability GmbH uses artificial intelligence in client engagements and internal work. It serves as an internal commitment and as a documentation basis for clients, data processing agreements, and audits.

Scope:

2. Core principles

(1) AI accelerates, humans decide.

Materiality, strategy and stakeholder decisions remain a human responsibility. AI is a tool, not a decision-maker.

(2) Data stays with the client.

AI runs in the client's cloud environment (Azure OpenAI EU, Google Vertex EU, AWS Bedrock EU, on-premise). Client data does not leave the client's tenant.

(3) No training on client data.

Only providers that contractually guarantee that input data is not used for model training are used. Provider status: see Section 3.

(4) Traceability before speed.

Every productive AI workflow is documented (purpose, input, method, output, sources). Audit trails are required, not optional.

(5) Human validation.

AI output that flows into reports, decision papers or external communication is reviewed by a qualified person before use. Current industry error rates (~23 %) make validation indispensable.

(6) Minimal environmental footprint.

Where possible, smaller specialized models are used instead of large language models. Cloud regions with a high share of renewables are preferred — coordinated with the client's IT team.

3. Provider selection

Whitelist (approved for use)

Provider Service Conditions
Azure OpenAI Service GPT-4, GPT-4o, GPT-5 models Region: West Europe / Sweden Central / France Central. No-training under Service Terms.
Google Vertex AI Gemini models Region: europe-west4 (Netherlands) / europe-north1 (Finland). Customer data is not used for training.
AWS Bedrock Claude, Llama, Titan Region: eu-central-1 (Frankfurt) / eu-west-1 (Ireland). Bedrock Data Privacy guarantees no-training.
Anthropic API Claude (Sonnet, Opus) Direct use: US routing. Where EU residency is required, routed via AWS Bedrock EU. Anthropic API agreement includes a no-training guarantee.
OpenAI API direct GPT models Internal research / non-personal data only. Not permitted for client projects without explicit client approval.

Blacklist / use with caution

Provider change procedure

When adding a new provider:

  1. Review of privacy notice + DPA availability
  2. Review of training policy (contractual no-training guarantee)
  3. Review of EU data residency
  4. Addition to whitelist + notification of active clients (30 days advance notice)

4. Data classification

Class A — Sensitive

Personal data, confidential business secrets, supplier information, financial data.

→ Processed exclusively in client tenant or locally encrypted. Never in public LLM interfaces.
Class B — Internal

ESG data, methodology documentation, audit trail material, aggregated statistics without personal identifiers.

→ Processed in EU regions of approved providers. DPA required.
Class C — Public

Published reports, press releases, regulatory texts, open datasets.

→ Free to process. Internal tools (e.g. Claude Code for my own research) permitted.

5. Audit trail requirements

At minimum, the following is documented per productive workflow:

Logging tools (as of 2026): LangSmith, Helicone, OpenLLMetry, Phoenix. At least one per productive pipeline.

6. EU AI Act — Risk classification

The EU AI Act is fully applicable from August 2026. A risk rating is documented per workflow:

Risk class Examples Approach
Minimal risk Data extraction, draft text, research summaries Standard audit trail is sufficient
Limited risk AI-generated client content (e.g. report drafts) Transparency notice in output that AI was involved
High risk Decision support for personnel evaluations, supplier creditworthiness, lending decisions Not in standard engagements. Requires separate risk assessment + documented human final decision
Prohibited Social scoring, mass surveillance, manipulative influence Not offered

Sustainability reporting workflows typically fall into "minimal" or "limited risk".

7. Incident procedure

If a violation of this policy is identified (e.g. inadvertent use of sensitive data with an unapproved provider):

  1. Immediate action: Stop the workflow. Isolate the data exposure.
  2. Within 24 h: Written notification to affected clients.
  3. Within 72 h: If GDPR-relevant, notify the supervisory authority per GDPR Art. 33.
  4. Within 7 days: Root cause analysis + mitigation measures documented.

8. Staff and contractors

Current state: Kaufmann Sustainability GmbH operates as a one-person company with Dominik Kaufmann as sole responsible party.

If staff or external contractors are added in the future:

9. Review and updates

Owner for updates: Dominik Kaufmann

10. Binding effect

This policy is binding for all activities of Kaufmann Sustainability GmbH from the effective date stated in the version. Deviations are only permitted with documented justification and written approval by the managing director.

Appendix — Quick-reference checklist per new engagement