Preliminary Analysis of Corporate Sustainability Based on Annual Reports: A Case Study of Companies on the Baltic Market
Name
Brandon Loorits
Abstract
Sustainability, also known as ESG (Environmental, Social, and Corporate Governance), has become a central concept in corporate strategic management and investment decisions worldwide, including in the Baltics. Financial institutions and investors are increasingly focusing on the sustainability of the companies they invest in [ZB21]. This master’s thesis explores the development of a preliminary sustainability analysis tool using large language models to analyze the annual reports of companies listed on the Baltic stock exchange. The aim is to assess companies’ contributions to ESG fields and provide analysts with tools for more efficiently processing large volumes of data. The study focuses on large language models, such as GPT-4 Turbo, which enable the automatic generation of answers to ESG pre-analysis questionnaires, thereby reducing manual labor and increasing analysis efficiency. The prototype developed allows sustainability specialists to more quickly and accurately assess corporate sustainability without the need to meticulously read through annual reports. [ZB21] Ilze Zumente and Julija Bistrova. Do baltic investors care about environmental, social and governance (esg)? Entrepreneurship and Sustainability Issues, 8(4):349–362, June 2021. Accessed: 2024-04-16.
Graduation Thesis language
Estonian
Graduation Thesis type
Master - Data Science
Supervisor(s)
Mark Fišel, Lehar Oha
Defence year
2024