Empowering Climate Risk Analysis with Project Gaia

Project Gaia is a collaborative effort between Eurosystem project partners, including the Bank of Spain, the Deutsche Bundesbank, and the European Central Bank. The project aims to create an open, web-based tool that will assist analysts in efficiently searching for corporate climate-related disclosures. By utilizing cutting-edge technologies, such as machine learning and large language models like GPT, Project Gaia seeks to extract relevant information from non-standardized PDF reports. This tool will address the need for high-quality climate-related data, as central banks and financial regulators increasingly recognize the importance of assessing the financial stability risks posed by climate change. Currently, climate-related data is scattered across various documents, making it challenging to access and utilize. The lack of standardized disclosures further complicates the process. Project Gaia will explore the standardization of globally recognized ESG disclosures and develop a data-agnostic model that meets the needs of the central banking community. By utilizing natural language processing and other advanced tools, unstructured data will be made more usable, facilitating climate risk assessments. The project will result in a repository of textual corporate reports, a search engine for specific sustainability-related disclosures, a graphical user interface for accessing the climate-related database, and a final report summarizing the project’s findings and lessons learned.

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