Daily Papers

Climate change has intensified the need for transparency and accountability in organizational practices, making Environmental, Social, and Governance (ESG) reporting increasingly crucial. Frameworks like the Global Reporting Initiative (GRI) and the new European Sustainability Reporting Standards (ESRS) aim to standardize ESG reporting, yet generating comprehensive reports remains challenging due to the considerable length of ESG documents and variability in company reporting styles. To facilitate ESG report automation, Retrieval-Augmented Generation (RAG) systems can be employed, but their development is hindered by a lack of labeled data suitable for training retrieval models. In this paper, we leverage an underutilized source of weak supervision -- the disclosure content index found in past ESG reports -- to create a comprehensive dataset, ESG-CID, for both GRI and ESRS standards. By extracting mappings between specific disclosure requirements and corresponding report sections, and refining them using a Large Language Model as a judge, we generate a robust training and evaluation set. We benchmark popular embedding models on this dataset and show that fine-tuning BERT-based models can outperform commercial embeddings and leading public models, even under temporal data splits for cross-report style transfer from GRI to ESRS

In the evolving field of corporate sustainability, analyzing unstructured Environmental, Social, and Governance (ESG) reports is a complex challenge due to their varied formats and intricate content. This study introduces an innovative methodology utilizing the "Unstructured Core Library", specifically tailored to address these challenges by transforming ESG reports into structured, analyzable formats. Our approach significantly advances the existing research by offering high-precision text cleaning, adept identification and extraction of text from images, and standardization of tables within these reports. Emphasizing its capability to handle diverse data types, including text, images, and tables, the method adeptly manages the nuances of differing page layouts and report styles across industries. This research marks a substantial contribution to the fields of industrial ecology and corporate sustainability assessment, paving the way for the application of advanced NLP technologies and large language models in the analysis of corporate governance and sustainability. Our code is available at https://github.com/linancn/TianGong-AI-Unstructure.git.

Sustainability reports are key for evaluating companies' environmental, social and governance, ESG performance, but their content is increasingly obscured by greenwashing - sustainability claims that are misleading, exaggerated, and fabricated. Yet, existing NLP approaches for ESG analysis lack robustness against greenwashing risks, often extracting insights that reflect misleading or exaggerated sustainability claims rather than objective ESG performance. To bridge this gap, we introduce A3CG - Aspect-Action Analysis with Cross-Category Generalization, as a novel dataset to improve the robustness of ESG analysis amid the prevalence of greenwashing. By explicitly linking sustainability aspects with their associated actions, A3CG facilitates a more fine-grained and transparent evaluation of sustainability claims, ensuring that insights are grounded in verifiable actions rather than vague or misleading rhetoric. Additionally, A3CG emphasizes cross-category generalization. This ensures robust model performance in aspect-action analysis even when companies change their reports to selectively favor certain sustainability areas. Through experiments on A3CG, we analyze state-of-the-art supervised models and LLMs, uncovering their limitations and outlining key directions for future research.

The rapid growth of the financial sector and the rising focus on Environmental, Social, and Governance (ESG) considerations highlight the need for advanced NLP tools. However, open-source LLMs proficient in both finance and ESG domains remain scarce. To address this gap, we introduce SusGen-30K, a category-balanced dataset comprising seven financial NLP tasks and ESG report generation, and propose TCFD-Bench, a benchmark for evaluating sustainability report generation. Leveraging this dataset, we developed SusGen-GPT, a suite of models achieving state-of-the-art performance across six adapted and two off-the-shelf tasks, trailing GPT-4 by only 2% despite using 7-8B parameters compared to GPT-4's 1,700B. Based on this, we propose the SusGen system, integrated with Retrieval-Augmented Generation (RAG), to assist in sustainability report generation. This work demonstrates the efficiency of our approach, advancing research in finance and ESG.

Environment, Social, and Governance (ESG) KPIs assess an organization's performance on issues such as climate change, greenhouse gas emissions, water consumption, waste management, human rights, diversity, and policies. ESG reports convey this valuable quantitative information through tables. Unfortunately, extracting this information is difficult due to high variability in the table structure as well as content. We propose Statements, a novel domain agnostic data structure for extracting quantitative facts and related information. We propose translating tables to statements as a new supervised deep-learning universal information extraction task. We introduce SemTabNet - a dataset of over 100K annotated tables. Investigating a family of T5-based Statement Extraction Models, our best model generates statements which are 82% similar to the ground-truth (compared to baseline of 21%). We demonstrate the advantages of statements by applying our model to over 2700 tables from ESG reports. The homogeneous nature of statements permits exploratory data analysis on expansive information found in large collections of ESG reports.