An Automated LLM-based Pipeline for Asset-Level Database Creation to Assess Deforestation Impact
Journal:
arXiv
Published Date:
May 5, 2025
Abstract
The European Union Deforestation Regulation (EUDR) requires companies to
prove their products do not contribute to deforestation, creating a critical
demand for precise, asset-level environmental impact data. Current databases
lack the necessary detail, relying heavily on broad financial metrics and
manual data collection, which limits regulatory compliance and accurate
environmental modeling. This study presents an automated, end-to-end data
extraction pipeline that uses LLMs to create, clean, and validate structured
databases, specifically targeting sectors with a high risk of deforestation.
The pipeline introduces Instructional, Role-Based, Zero-Shot Chain-of-Thought
(IRZ-CoT) prompting to enhance data extraction accuracy and a
Retrieval-Augmented Validation (RAV) process that integrates real-time web
searches for improved data reliability. Applied to SEC EDGAR filings in the
Mining, Oil & Gas, and Utilities sectors, the pipeline demonstrates significant
improvements over traditional zero-shot prompting approaches, particularly in
extraction accuracy and validation coverage. This work advances NLP-driven
automation for regulatory compliance, CSR (Corporate Social Responsibility),
and ESG, with broad sectoral applicability.