Empirically assessing corporate adaptation and resilience disclosure using AI

Martín, Roberto Spacey, Ranger, Nicola, Schimanski, Tobias and Leippold, Markus (2025) Empirically assessing corporate adaptation and resilience disclosure using AI. Grantham Research Institute on Climate Change and the Environment Working Papers (430). Grantham Research Institute on Climate Change and the Environment, London, UK.

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Abstract

The extent to which firms are adapting and building resilience to environmental change is crucial information for financial institutions, regulators and governments. While corporates’ physical climate risk exposure of their assets to environmental change can be calculated using models, additional information is needed to evaluate their vulnerability to physical climate change, how well they are adapting and broader alignment with societal adaptation and resilience (A&R) goals. This paper empirically evaluates the extent of A&R-related information in current corporate sustainability reports to provide such insights. We build on established sustainability disclosure frameworks and develop an A&R disclosure framework that we combine with the latest advances in large language models to assess S&P 500 company sustainability reports. We prove that corporate A&R disclosure is lacking, particularly around risks, metrics and targets, underlining the need to consider other data sources when assessing firm-level risks and contributions to societal A&R goals.

Item Type:	Monograph (Working Paper)
Official URL:	https://www.lse.ac.uk/granthaminstitute/publicatio...
Additional Information:	© 2025 Grantham Research Institute
Divisions:	Grantham Research Institute
Subjects:	H Social Sciences > HG Finance H Social Sciences > HD Industries. Land use. Labor G Geography. Anthropology. Recreation > GE Environmental Sciences
Date Deposited:	05 Jan 2026 12:00
Last Modified:	13 Jan 2026 10:09
URI:	http://eprints.lse.ac.uk/id/eprint/130809

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