Building your own ESG LLM models using C++

Building your own ESG LLM models using C++



Link in kaggle --> How to Build your own ESG LLM Foundational Models


Building Your Own ESG LLM Models Using C++: A Technical and Business Perspective

Introduction

In recent years, Environmental, Social, and Governance (ESG) criteria have become critical metrics for investors, regulators, and corporations. Simultaneously, advancements in artificial intelligence (AI), particularly Large Language Models (LLMs), have unlocked new ways to analyze vast amounts of unstructured ESG data, such as corporate reports, news articles, and social media. While Python dominates the AI landscape, C++ offers unparalleled performance advantages for building scalable, high-throughput models. This article explores how organizations can leverage C++ to develop custom ESG-focused LLMs, balancing technical rigor with strategic business value.


Understanding ESG and LLMs

ESG Fundamentals

ESG frameworks evaluate a company’s sustainability and ethical impact:

  • Environmental: Carbon emissions, resource usage, waste management.
  • Social: Labor practices, community engagement, diversity.
  • Governance: Board structure, executive compensation, regulatory compliance.

The Role of LLMs in ESG Analysis

LLMs excel at parsing unstructured text to extract insights like sentiment, risk factors, and compliance gaps. For example, an LLM could identify greenwashing in sustainability reports or track emerging ESG risks in news articles. However, generic LLMs like GPT-4 lack domain-specific tuning for ESG terminology, regulatory standards, or industry-specific metrics.


Why Build Your Own ESG LLM?

  1. Customization: Tailor models to specific industries (e.g., mining vs. tech) or regional regulations (e.g., EU’s SFDR vs. SEC climate rules).
  2. Performance: C++ enables low-latency inference and efficient resource utilization, crucial for real-time ESG scoring.
  3. Cost Control: Avoid reliance on expensive third-party APIs and retain full ownership of data and model architecture.


Technical Implementation with C++

1. Data Collection and Preprocessing

Data Sources:

  • Regulatory filings (10-K, 20-F reports).
  • Sustainability frameworks (GRI, SASB).
  • News feeds and social media.

C++ Tools:

  • cURL/libcurl: Fetch data via APIs or web scraping.
  • Boost.String: Clean and tokenize text (e.g., removing HTML tags, handling UTF-8).
  • SQLite: Store structured metadata.

cpp

#include <curl/curl.h>  
#include <boost/algorithm/string.hpp>  

size_t WriteCallback(void* contents, size_t size, size_t nmemb, std::string* output) {  
    size_t total_size = size * nmemb;  
    output->append((char*)contents, total_size);  
    return total_size;  
}  

std::string fetchESGReport(const std::string& url) {  
    CURL* curl = curl_easy_init();  
    std::string response;  
    curl_easy_setopt(curl, CURLOPT_URL, url.c_str());  
    curl_easy_setopt(curl, CURLOPT_WRITEFUNCTION, WriteCallback);  
    curl_easy_setopt(curl, CURLOPT_WRITEDATA, &response);  
    curl_easy_perform(curl);  
    curl_easy_cleanup(curl);  
    return response;  
}          

2. Model Architecture

Framework Selection:

  • TensorFlow C++ API or PyTorch LibTorch: Deploy transformer-based architectures.
  • Eigen Library: Optimize matrix operations for attention mechanisms.

Key Components:

  • Embedding Layer: Map ESG-specific vocabulary to dense vectors.
  • Transformer Blocks: Multi-head self-attention for context-aware analysis.
  • Task-Specific Heads: Classify text into ESG risk levels (e.g., "high water usage" → Environmental risk).

cpp

#include <torch/torch.h>  

struct ESGPT : torch::nn::Module {  
    ESGPT(int64_t vocab_size, int64_t d_model) {  
        embedding = register_module("embedding", torch::nn::Embedding(vocab_size, d_model));  
        transformer = register_module("transformer", torch::nn::Transformer(d_model, 8));  
        classifier = register_module("classifier", torch::nn::Linear(d_model, 3)); // 3 ESG pillars  
    }  

    torch::Tensor forward(torch::Tensor input) {  
        auto x = embedding->forward(input);  
        x = transformer->forward(x);  
        x = classifier->forward(x.mean(1)); // Pooling  
        return torch::log_softmax(x, /*dim=*/1);  
    }  

    torch::nn::Embedding embedding{nullptr};  
    torch::nn::Transformer transformer{nullptr};  
    torch::nn::Linear classifier{nullptr};  
};          

3. Training the Model

  • Hardware: Utilize GPU acceleration via CUDA with C++ interfaces.
  • Optimization: Use Intel MKL or OpenMP for parallelization.
  • Loss Function: Cross-entropy loss weighted by ESG pillar priorities.

4. Evaluation and Fine-Tuning

  • Metrics: Precision/recall for ESG risk detection, F1-score for multi-label classification.
  • Tools: Google Benchmark for profiling inference speed in C++.

5. Deployment

  • Inference Engine: Export models to ONNX Runtime for interoperability.
  • API Integration: Use RESTbed or Qt Framework to build low-latency APIs.


Business Implications

1. Competitive Advantage

  • Real-Time Analytics: Portfolio managers can assess ESG risks during mergers or crises faster than competitors.
  • Customization: Offer clients industry-specific models (e.g., oil & gas vs. renewable energy).

2. Cost Efficiency

  • Reduced Cloud Costs: C++’s memory efficiency lowers GPU/CPU expenses.
  • Avoid Vendor Lock-In: Eliminate per-query fees from SaaS LLM providers.

3. Applications

  • Investment Firms: Screen assets using proprietary ESG criteria.
  • Corporations: Automate sustainability reporting aligned with CSRD or TCFD.
  • Auditors: Detect discrepancies in ESG disclosures.


Challenges and Considerations

  • Expertise: Requires proficiency in C++ and ML, a rare skill combination.
  • Data Privacy: Ensure compliance with GDPR when processing EU corporate data.
  • Explainability: Use SHAP or LIME to clarify model decisions for stakeholders.


Conclusion

Building ESG LLMs in C++ merges high-performance engineering with strategic sustainability goals. While the initial development effort is significant, the long-term benefits—customization, speed, and cost control—position organizations to lead in the rapidly evolving ESG landscape. As regulations tighten and AI matures, bespoke models will become a cornerstone of responsible investing and corporate governance.

By adopting a C++-centric approach, businesses not future-proof their ESG analytics pipelines but also gain a unique edge in transparency and efficiency. The intersection of technical excellence and sustainability is no longer optional—it’s imperative.

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