Enhancing ESG Reporting Analysis: Leveraging GPT and Resampling Methods for Improved Multi-Label Classification
Jim‐Wei Wu, Lydia Hsiao-Mei Lin, Richard Tzong‐Han Tsai · 2024
ESG reporting, covering environmental, social, and governance aspects, is a crucial resource for investors, companies, and governments to understand a company's value. However, the sheer volume of data and information in the reports makes it difficult to retrieve specific information on ESG. ESG-BERT models are developed to categorize the content of ESG reports based on the relevant field. However, the accurate prediction of multiple classifications is difficult due to unevenly distributed labels. To address this problem, we used a self-made assistant based on GPT to label the data and then resampling technology to adjust the balance of the data set. After the data set was balanced, we adjusted to ESG-BERT to improve its multi-label classification accuracy. We evaluated multiple resampling methods and determined the most suitable strategy for classifying ESG report content. Thus, the accuracy of ESG content analysis was improved through more refined model adjustment and preprocessing methods. The results indicated that balancing the data for improved classification ensures fairness and objectivity in distributing content for ESG reports with multiple labels.