Intelligent ESG Evaluation for Construction Enterprises in China: An LLM-Based Model

Environmental, social, and governance (ESG) evaluation has become increasingly critical for company sustainability assessments, especially for enterprises in the construction industry with a high environmental burden. However, existing methods face limitations in subjective evaluation, inconsistent...

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Main Authors: Binqing Cai, Zhukai Ye, Shiwei Chen
Format: Article
Language:English
Published: MDPI AG 2025-07-01
Series:Buildings
Subjects:
Online Access:https://www.mdpi.com/2075-5309/15/15/2710
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author Binqing Cai
Zhukai Ye
Shiwei Chen
author_facet Binqing Cai
Zhukai Ye
Shiwei Chen
author_sort Binqing Cai
collection DOAJ
description Environmental, social, and governance (ESG) evaluation has become increasingly critical for company sustainability assessments, especially for enterprises in the construction industry with a high environmental burden. However, existing methods face limitations in subjective evaluation, inconsistent ratings across agencies, and a lack of industry-specificity. To address these limitations, this study proposes a large language model (LLM)-based intelligent ESG evaluation model specifically designed for the construction enterprises in China. The model integrates three modules: (1) an ESG report information extraction module utilizing natural language processing and Chinese pre-trained language models to identify and classify ESG-relevant statements; (2) an ESG rating prediction module employing XGBoost regression with SHAP analysis to predict company ratings and quantify individual statement contributions; and (3) an ESG intelligent evaluation module combining knowledge graph construction with fine-tuned Qwen2.5 language models using Chain-of-Thought (CoT). Empirical validation demonstrates that the model achieves 93.33% accuracy in the ESG rating classification and an R<sup>2</sup> score of 0.5312. SHAP analysis reveals that environmental factors contribute most significantly to rating predictions (38.7%), followed by governance (32.0%) and social dimensions (29.3%). The fine-tuned LLM integrated with knowledge graph shows improved evaluation consistency, achieving 65% accuracy compared to 53.33% for standalone LLM approaches, constituting a relative improvement of 21.88%. This study contributes to the ESG evaluation methodology by providing an objective, industry-specific, and interpretable framework that enhances rating consistency and provides actionable insights for enterprise sustainability improvement. This research provides guidance for automated and intelligent ESG evaluations for construction enterprises while addressing critical gaps in current ESG practices.
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spelling doaj-art-c96165144eec4f32b6bf11c2d59e333b2025-08-20T03:36:03ZengMDPI AGBuildings2075-53092025-07-011515271010.3390/buildings15152710Intelligent ESG Evaluation for Construction Enterprises in China: An LLM-Based ModelBinqing Cai0Zhukai Ye1Shiwei Chen2School of Management, Fujian University of Technology, Fuzhou 350118, ChinaSchool of Management, Fujian University of Technology, Fuzhou 350118, ChinaSchool of Management, Fujian University of Technology, Fuzhou 350118, ChinaEnvironmental, social, and governance (ESG) evaluation has become increasingly critical for company sustainability assessments, especially for enterprises in the construction industry with a high environmental burden. However, existing methods face limitations in subjective evaluation, inconsistent ratings across agencies, and a lack of industry-specificity. To address these limitations, this study proposes a large language model (LLM)-based intelligent ESG evaluation model specifically designed for the construction enterprises in China. The model integrates three modules: (1) an ESG report information extraction module utilizing natural language processing and Chinese pre-trained language models to identify and classify ESG-relevant statements; (2) an ESG rating prediction module employing XGBoost regression with SHAP analysis to predict company ratings and quantify individual statement contributions; and (3) an ESG intelligent evaluation module combining knowledge graph construction with fine-tuned Qwen2.5 language models using Chain-of-Thought (CoT). Empirical validation demonstrates that the model achieves 93.33% accuracy in the ESG rating classification and an R<sup>2</sup> score of 0.5312. SHAP analysis reveals that environmental factors contribute most significantly to rating predictions (38.7%), followed by governance (32.0%) and social dimensions (29.3%). The fine-tuned LLM integrated with knowledge graph shows improved evaluation consistency, achieving 65% accuracy compared to 53.33% for standalone LLM approaches, constituting a relative improvement of 21.88%. This study contributes to the ESG evaluation methodology by providing an objective, industry-specific, and interpretable framework that enhances rating consistency and provides actionable insights for enterprise sustainability improvement. This research provides guidance for automated and intelligent ESG evaluations for construction enterprises while addressing critical gaps in current ESG practices.https://www.mdpi.com/2075-5309/15/15/2710construction industryESG ratingLLMIntelligent Evaluation
spellingShingle Binqing Cai
Zhukai Ye
Shiwei Chen
Intelligent ESG Evaluation for Construction Enterprises in China: An LLM-Based Model
Buildings
construction industry
ESG rating
LLM
Intelligent Evaluation
title Intelligent ESG Evaluation for Construction Enterprises in China: An LLM-Based Model
title_full Intelligent ESG Evaluation for Construction Enterprises in China: An LLM-Based Model
title_fullStr Intelligent ESG Evaluation for Construction Enterprises in China: An LLM-Based Model
title_full_unstemmed Intelligent ESG Evaluation for Construction Enterprises in China: An LLM-Based Model
title_short Intelligent ESG Evaluation for Construction Enterprises in China: An LLM-Based Model
title_sort intelligent esg evaluation for construction enterprises in china an llm based model
topic construction industry
ESG rating
LLM
Intelligent Evaluation
url https://www.mdpi.com/2075-5309/15/15/2710
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AT zhukaiye intelligentesgevaluationforconstructionenterprisesinchinaanllmbasedmodel
AT shiweichen intelligentesgevaluationforconstructionenterprisesinchinaanllmbasedmodel