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It was trained on a highly curated dataset of Institutional Shareholder Services (ISS) proposals, achieving an **F1 score of 0.981** on the validation set.
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##
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**Recommended Input Format:**
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To achieve optimal performance, input text should mirror the structure of the training data:
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> "A {sponsor_type}-type sponsor has filed a shareholder proposal to a(an) {sic2_des}-sector company. This proposal requests: {resolution}. [It falls under a broader agenda class that may include items not directly relevant to this specific proposal: {AgendaCodeInformation}]"
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- **Validation split:** 300 examples
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- **
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- **Train batch size:** 16
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- **Eval batch size:** 16
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- **Seed:** 42
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- **Weight decay:** 0.05
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- **Optimizer:** AdamW
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- **Number of epochs:** 10
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|:---:|:---:|:---:|:---:|:---:|
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| 1 | 0.3060 | 0.0968 | 0.9667 | 0.9675 |
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| 2 | 0.0954 | 0.0898 | 0.9733 | 0.9740 |
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| 5 | 0.0395 | 0.1026 | 0.9800 | 0.9803 |
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| 6 | 0.0350 | 0.1308 | 0.9733 | 0.9744 |
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| 7 | 0.0094 | 0.1108 | 0.9767 | 0.9772 |
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| **8** | **0.0003** | **0.1182** | **0.9800** | **0.9806** |
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| 9 | 0.0004 | 0.1154 | 0.9767 | 0.9773 |
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| 10 | 0.0002 | 0.1229 | 0.9767 | 0.9773 |
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If you use this model in your research, please cite the associated working paper:
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<div align="center">
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# 🌿 Green Shareholder Proposal Classifier
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<p align="center">
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<img src="https://img.shields.io/badge/License-Apache%202.0-green.svg?style=for-the-badge&logo=apache" alt="License"/>
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<img src="https://img.shields.io/badge/Language-English-blue?style=for-the-badge&logo=googletranslate&logoColor=white" alt="Language"/>
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<img src="https://img.shields.io/badge/F1%20Score-0.981-brightgreen?style=for-the-badge&logo=checkmarx&logoColor=white" alt="F1 Score"/>
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<img src="https://img.shields.io/badge/Task-Text%20Classification-orange?style=for-the-badge&logo=openai&logoColor=white" alt="Task"/>
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<img src="https://img.shields.io/badge/Domain-ESG%20%7C%20Climate%20Finance-teal?style=for-the-badge&logo=leaflet&logoColor=white" alt="Domain"/>
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</p>
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*A fine-tuned NLP model for classifying climate-related shareholder proposals with high precision.*
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</div>
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---
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## 📋 Model Summary
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This model is a fine-tuned version of [`climatebert/distilroberta-base-climate-detector`](https://huggingface.co/climatebert/distilroberta-base-climate-detector), specifically designed to classify **shareholder proposals** into binary categories: **green** (climate/environmental) or **non-green**.
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It was trained on a highly curated dataset of Institutional Shareholder Services (ISS) proposals, achieving an **F1 score of 0.981** on the validation set.
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> 💡 **Designed for researchers and practitioners** in sustainable finance, ESG analysis, and corporate governance.
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---
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## 🔍 Model Details
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| Property | Value |
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|:---|:---|
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| 🧠 **Base Model** | `climatebert/distilroberta-base-climate-detector` |
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| 🎯 **Task** | Binary Sequence Classification |
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| 🌐 **Language** | English |
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| 📄 **License** | Apache 2.0 *(model weights)* |
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### 🏷️ Label Schema
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| Label | Description |
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|:---:|:---|
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| `1` | ✅ Green / Climate-related proposal |
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| `0` | ❌ Non-green proposal |
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---
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## 🚀 Uses
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### ✅ Direct Use
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The model takes a structured text input describing a shareholder proposal and predicts whether it is conceptually focused on climate change or environmental sustainability.
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**📌 Recommended Input Format**
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To achieve optimal performance, input text should mirror the structure of the training data:
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```
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"A(An) {sponsor_type}-type sponsor has filed a shareholder proposal to a(an)
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{sic2_des}-sector company. This proposal requests: {resolution}.
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[It falls under a broader agenda class that may include items not directly
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relevant to this specific proposal: {AgendaCodeInformation}]"
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```
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### ⚠️ Out-of-Scope Use
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The following use cases are **not recommended**:
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- 🚫 Applying the model to **non-English** texts
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- 🚫 Using the model for **automated legal or compliance decision-making** without human oversight
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- 🚫 Generalizing to **broad ESG topics** outside of strict environmental/climate scopes *(e.g., social or governance issues like gender equality or animal welfare are explicitly trained as negative classes)*
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---
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## 📦 Training Data
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<div align="center">
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| Split | Examples |
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|:---:|:---:|
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| 🏋️ Train | 1,200 |
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| 🧪 Validation | 300 |
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| **Total** | **1,500** |
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</div>
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The model was fine-tuned on a custom **stratified dataset of 1,500 manually curated ISS shareholder proposals**. The dataset underwent rigorous rule-based correction to exclude tangentially environmental or purely social/governance proposals.
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📂 For full details on data sampling, text construction, and labeling rules, please refer to the **[gprop_training_dataset](https://huggingface.co/datasets/Jidi1997/gprop_training_dataset)**.
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---
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## ⚙️ Training Procedure
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### 🔧 Hyperparameters
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| Hyperparameter | Value |
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|:---|:---:|
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| 📐 Learning Rate | `2e-05` |
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| 📦 Train Batch Size | `16` |
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| 📦 Eval Batch Size | `16` |
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| 🎲 Seed | `42` |
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| ⚖️ Weight Decay | `0.05` |
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| 🔁 Optimizer | AdamW |
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| 🔄 Epochs | `10` |
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### 📈 Training Results
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The model weights from **Epoch 8 (`checkpoint-600`)** were selected as the best performing checkpoint based on the validation F1 score.
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| Epoch | Train Loss | Val Loss | Accuracy | F1 (Binary) |
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| 1 | 0.3060 | 0.0968 | 0.9667 | 0.9675 |
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| 2 | 0.0954 | 0.0898 | 0.9733 | 0.9740 |
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| 5 | 0.0395 | 0.1026 | 0.9800 | 0.9803 |
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| 6 | 0.0350 | 0.1308 | 0.9733 | 0.9744 |
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| 7 | 0.0094 | 0.1108 | 0.9767 | 0.9772 |
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| **8** ⭐ | **0.0003** | **0.1182** | **0.9800** | **0.9806** |
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| 9 | 0.0004 | 0.1154 | 0.9767 | 0.9773 |
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| 10 | 0.0002 | 0.1229 | 0.9767 | 0.9773 |
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> ⭐ **Best checkpoint selected at Epoch 8** — highest validation F1 of **0.9806**
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---
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## ⚠️ Limitations and Bias
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While the model achieves high accuracy on the validation set, several limitations should be noted:
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- 🔗 **Domain dependency** — Performance is tightly coupled with the specific linguistic patterns and taxonomy of the ISS database *(e.g., SIC-2 sector descriptions, ISS agenda codes)*
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- 📰 **Unstructured text** — Lower confidence or accuracy is expected when processing unstructured news articles or raw corporate filings
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- 🌍 **Jurisdictional scope** — The model may not generalize well to proposals from jurisdictions outside the US/global norm represented in the training set
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---
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## 📚 Citation
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If you use this model in your research, please cite the associated working paper:
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```bibtex
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@misc{gprop_classifier,
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title = {Green Shareholder Proposal Classifier},
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note = {Citation details forthcoming},
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}
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```
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---
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<div align="center">
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*Built on top of [ClimateBERT](https://huggingface.co/climatebert) · Trained with 🤗 Hugging Face Transformers*
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</div>
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