Assessing corporate sustainability with large language models: evidence from Europe — Forster et al. (2026)
Abstract Companies play a crucial role in achieving global sustainability goals, yet evidence on their progress across environmental, social, and governance (ESG) dimensions remains limited. We develop a machine learning framework to systematically extract ESG indicators from corporate reports. Applying this approach to annual and sustainability reports of 600 large European firms (2014–2023), we construct a dataset of 2.9 million ESG observations across environmental, social, and governance topics. We assess ESG transparency based on disclosures aligned with the European Sustainability…
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