DeepGreen: Catching Corporate Greenwashing

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.

DeepGreen: Effective LLM-Driven Green-washing Monitoring System Designed for Empirical Testing -- Evidence from China

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