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Théo Le Guenedal

Publications and source records attributed to Théo Le Guenedal.

3 recordsLinked to original sources

Detecting Greenwashing: A Natural Language Processing Literature Survey

Greenwashing refers to practices by corporations or governments that intentionally mislead the public about their environmental impact. This paper provides a comprehensive and methodologically grounded survey of natural language processing (NLP) approaches for detecting greenwashing in textual data, with a focus on corporate climate communication. Rather than treating greenwashing as a single, monolithic task, we examine the set of NLP problems, also known as climate NLP tasks, that researchers have used to approximate it, ranging from climate topic detection to the identification of deceptive communication patterns. Our focus is on the methodological foundations of these approaches: how tasks are formulated, how datasets are constructed, and how model evaluation influences reliability. Our review reveals a fragmented landscape: several subtasks now exhibit near-perfect performance under controlled settings, yet tasks involving ambiguity, subjectivity, or reasoning remain challenging. Crucially, no dataset of verified greenwashing cases currently exists. We argue that advancing automated greenwashing detection requires principled NLP methodologies that combine reliable data annotations with interpretable model design. Future work should leverage third-party judgments, such as verified media reports or regulatory records, to mitigate annotation subjectivity and legal risk, and adopt decomposed pipelines that support human oversight, traceable reasoning, and efficient model design.

cs.CL↗

The Market Measure of Carbon Risk and its Impact on the Minimum Variance Portfolio

Like ESG investing, climate change is an important concern for asset managers and owners, and a new challenge for portfolio construction. Until now, investors have mainly measured carbon risk using fundamental approaches, such as with carbon intensity metrics. Nevertheless, it has not been proven that asset prices are directly impacted by these fundamental-based measures. In this paper, we focus on another approach, which consists in measuring the sensitivity of stock prices with respect to a carbon risk factor. In our opinion, carbon betas are market-based measures that are complementary to carbon intensities or fundamental-based measures when managing investment portfolios, because carbon betas may be viewed as an extension or forward-looking measure of the current carbon footprint. In particular, we show how this new metric can be used to build minimum variance strategies and how they impact their portfolio construction.

q-fin.PM↗

Measuring and Managing Carbon Risk in Investment Portfolios

This article studies the impact of carbon risk on stock pricing. To address this, we consider the seminal approach of Görgen \textsl{et al.} (2019), who proposed estimating the carbon financial risk of equities by their carbon beta. To achieve this, the primary task is to develop a brown-minus-green (or BMG) risk factor, similar to Fama and French (1992). Secondly, we must estimate the carbon beta using a multi-factor model. While Görgen \textsl{et al.} (2019) considered that the carbon beta is constant, we propose a time-varying estimation model to assess the dynamics of the carbon risk. Moreover, we test several specifications of the BMG factor to understand which climate change-related dimensions are priced in by the stock market. In the second part of the article, we focus on the carbon risk management of investment portfolios. First, we analyze how carbon risk impacts the construction of a minimum variance portfolio. As the goal of this portfolio is to reduce unrewarded financial risks of an investment, incorporating the carbon risk into this approach fulfils this objective. Second, we propose a new framework for building enhanced index portfolios with a lower exposure to carbon risk than capitalization-weighted stock indices. Finally, we explore how carbon sensitivities can improve the robustness of factor investing portfolios.

q-fin.PM↗