
DeepGreen: Catching Corporate Greenwashing
AI-powered detection system for environmental claim verification
DeepGreen introduces a dual-layer LLM system that analyzes corporate financial statements to detect misleading environmental claims.
- Uses preliminary keyword identification followed by semantic implementation analysis
- Quantifies greenwashing through the novel GreenImplement ratio metric
- Tested on 68 companies from China's A-share market with 204 financial statements
- Serves as a proactive monitoring tool for regulators and investors
This research enhances financial security by providing a systematic method to identify potential environmental misrepresentations before they harm stakeholders or lead to regulatory penalties.