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Contribution Details

Type Journal Article
Scope Discipline-based scholarship
Title Cheap talk and cherry-picking: What climatebert has to say on corporate climate risk disclosures
Organization Unit
  • Julia Anna Bingler
  • Mathias Kraus
  • Markus Leippold
  • Nicolas Webersinke
Item Subtype Original Work
Refereed Yes
Status Published in final form
  • English
Journal Title Finance Research Letters
Publisher Elsevier
Geographical Reach international
ISSN 1544-6123
Volume 47
Page Range 102776
Date 2022
Abstract Text Disclosure of climate-related financial risks greatly helps investors assess companies’ preparedness for climate change. Voluntary disclosures such as those based on the recommendations of the Task Force for Climate-related Financial Disclosures (TCFD) are being hailed as an effective measure for better climate risk management. We ask whether this expectation is justified. We do so by training ClimateBERT, a deep neural language model fine-tuned based on the language model BERT. In analyzing the disclosures of TCFD-supporting firms, ClimateBERT comes to the sobering conclusion that the firms’ TCFD support is mostly cheap talk and that firms cherry-pick to report primarily non-material climate risk information.
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Digital Object Identifier 10.1016/
Other Identification Number merlin-id:22388
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