IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v15y2023i12p9701-d1173225.html
   My bibliography  Save this article

Towards Automating the Identification of Sustainable Projects Seeking Financial Support: An AI-Powered Approach

Author

Listed:
  • Hojat Behrooz

    (Department of Civil, Environmental and Ocean Engineering, Stevens Institute of Technology, 1 Castle Point on Hudson, Hoboken, NJ 07030, USA)

  • Carlo Lipizzi

    (School of Systems and Enterprises, Stevens Institute of Technology, 1 Castle Point on Hudson, Hoboken, NJ 07030, USA)

  • George Korfiatis

    (Department of Civil, Environmental and Ocean Engineering, Stevens Institute of Technology, 1 Castle Point on Hudson, Hoboken, NJ 07030, USA)

  • Mohammad Ilbeigi

    (Department of Civil, Environmental and Ocean Engineering, Stevens Institute of Technology, 1 Castle Point on Hudson, Hoboken, NJ 07030, USA)

  • Martin Powell

    (Siemens Financial Services, Iselin, NJ 08830, USA)

  • Mina Nouri

    (Department of Civil, Environmental and Ocean Engineering, Stevens Institute of Technology, 1 Castle Point on Hudson, Hoboken, NJ 07030, USA)

Abstract

The criticality of sustainable development to control the unprecedented consequences of climate change is clear. A vital element in launching sustainability projects is financing, especially for projects by small and medium enterprises. The first and crucial step to offering financing services for sustainable development is to identify and evaluate promising projects. The current practice to accomplish this step heavily depends on subject-matter expertise and professional networks. The current practice also involves extensive manual document reviews and subjective decisions. Therefore, existing methods are time-consuming, inefficient, and not scalable. This study proposes an automated system to identify potential sustainability projects for financing services using Artificial Intelligence (AI). The proposed method uses web crawlers and text mining solutions, including Natural Language Processing (NLP), to search the Internet, analyze text data, evaluate the information quantitatively, and identify potential sustainability projects for financing services. The proposed method was implemented and empirically assessed. The results indicate that the AI-enhanced system is able to identify and prioritize potential sustainability projects with 87% accuracy. The outcomes of this study will help financial experts and decision-makers take advantage of the information available on the Internet efficiently to improve the existing methods for identifying potential projects for financing services.

Suggested Citation

  • Hojat Behrooz & Carlo Lipizzi & George Korfiatis & Mohammad Ilbeigi & Martin Powell & Mina Nouri, 2023. "Towards Automating the Identification of Sustainable Projects Seeking Financial Support: An AI-Powered Approach," Sustainability, MDPI, vol. 15(12), pages 1-12, June.
    • Handle: RePEc:gam:jsusta:v:15:y:2023:i:12:p:9701-:d:1173225
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/15/12/9701/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/15/12/9701/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Lee, Seung Jun & Theerthagiri, Jayaraman & Nithyadharseni, Palaniyandy & Arunachalam, Prabhakarn & Balaji, Dhandapani & Madan Kumar, Arumugam & Madhavan, Jagannathan & Mittal, Vikas & Choi, Myong Yong, 2021. "Heteroatom-doped graphene-based materials for sustainable energy applications: A review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 143(C).
    2. Magnus Jansson & Anders Biel, 2011. "Motives to engage in sustainable investment: a comparison between institutional and private investors," Sustainable Development, John Wiley & Sons, Ltd., vol. 19(2), pages 135-142, March/Apr.
    3. Taghizadeh-Hesary, Farhad & Yoshino, Naoyuki, 2019. "The way to induce private participation in green finance and investment," Finance Research Letters, Elsevier, vol. 31(C), pages 98-103.
    4. Gunnar Friede & Timo Busch & Alexander Bassen, 2015. "ESG and financial performance: aggregated evidence from more than 2000 empirical studies," Journal of Sustainable Finance & Investment, Taylor & Francis Journals, vol. 5(4), pages 210-233, October.
    5. C. Deser & F. Lehner & K. B. Rodgers & T. Ault & T. L. Delworth & P. N. DiNezio & A. Fiore & C. Frankignoul & J. C. Fyfe & D. E. Horton & J. E. Kay & R. Knutti & N. S. Lovenduski & J. Marotzke & K. A., 2020. "Publisher Correction: Insights from Earth system model initial-condition large ensembles and future prospects," Nature Climate Change, Nature, vol. 10(8), pages 791-791, August.
    6. Stefan Claus & Massimo Stella, 2022. "Natural Language Processing and Cognitive Networks Identify UK Insurers’ Trends in Investor Day Transcripts," Future Internet, MDPI, vol. 14(10), pages 1-18, October.
    7. Campos-Guzmán, Verónica & García-Cáscales, M. Socorro & Espinosa, Nieves & Urbina, Antonio, 2019. "Life Cycle Analysis with Multi-Criteria Decision Making: A review of approaches for the sustainability evaluation of renewable energy technologies," Renewable and Sustainable Energy Reviews, Elsevier, vol. 104(C), pages 343-366.
    8. C. Deser & F. Lehner & K. B. Rodgers & T. Ault & T. L. Delworth & P. N. DiNezio & A. Fiore & C. Frankignoul & J. C. Fyfe & D. E. Horton & J. E. Kay & R. Knutti & N. S. Lovenduski & J. Marotzke & K. A., 2020. "Insights from Earth system model initial-condition large ensembles and future prospects," Nature Climate Change, Nature, vol. 10(4), pages 277-286, April.
    9. Pham, Quang Hung & Gagnon, Martin & Antoni, Jérôme & Tahan, Antoine & Monette, Christine, 2021. "Rainflow-counting matrix interpolation over different operating conditions for hydroelectric turbine fatigue assessment," Renewable Energy, Elsevier, vol. 172(C), pages 465-476.
    10. Clark, Robyn & Reed, James & Sunderland, Terry, 2018. "Bridging funding gaps for climate and sustainable development: Pitfalls, progress and potential of private finance," Land Use Policy, Elsevier, vol. 71(C), pages 335-346.
    11. Mansouri, Sasan & Momtaz, Paul P., 2022. "Financing sustainable entrepreneurship: ESG measurement, valuation, and performance," Journal of Business Venturing, Elsevier, vol. 37(6).
    12. Ganesh Dash & Chetan Sharma & Shamneesh Sharma, 2023. "Sustainable Marketing and the Role of Social Media: An Experimental Study Using Natural Language Processing (NLP)," Sustainability, MDPI, vol. 15(6), pages 1-16, March.
    13. Magdalena Ziolo & Beata Zofia Filipiak & Iwona Bąk & Katarzyna Cheba, 2019. "How to Design More Sustainable Financial Systems: The Roles of Environmental, Social, and Governance Factors in the Decision-Making Process," Sustainability, MDPI, vol. 11(20), pages 1-34, October.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Aghilasse Kashi & Mohamed Eskandar Shah, 2023. "Bibliometric Review on Sustainable Finance," Sustainability, MDPI, vol. 15(9), pages 1-30, April.
    2. Wang, Kai-Hua & Zhao, Yan-Xin & Jiang, Cui-Feng & Li, Zheng-Zheng, 2022. "Does green finance inspire sustainable development? Evidence from a global perspective," Economic Analysis and Policy, Elsevier, vol. 75(C), pages 412-426.
    3. Shijie Zhou & Ping Huang & Lin Wang & Kaiming Hu & Gang Huang & Peng Hu, 2024. "Robust changes in global subtropical circulation under greenhouse warming," Nature Communications, Nature, vol. 15(1), pages 1-9, December.
    4. Xuezhi Tan & Xinxin Wu & Zeqin Huang & Jianyu Fu & Xuejin Tan & Simin Deng & Yaxin Liu & Thian Yew Gan & Bingjun Liu, 2023. "Increasing global precipitation whiplash due to anthropogenic greenhouse gas emissions," Nature Communications, Nature, vol. 14(1), pages 1-15, December.
    5. Lei Huang & Axel Timmermann & Sun-Seon Lee & Keith B. Rodgers & Ryohei Yamaguchi & Eui-Seok Chung, 2022. "Emerging unprecedented lake ice loss in climate change projections," Nature Communications, Nature, vol. 13(1), pages 1-12, December.
    6. Vikki Thompson & Dann Mitchell & Gabriele C. Hegerl & Matthew Collins & Nicholas J. Leach & Julia M. Slingo, 2023. "The most at-risk regions in the world for high-impact heatwaves," Nature Communications, Nature, vol. 14(1), pages 1-8, December.
    7. Jisesh Sethunadh & F. W. Letson & R. J. Barthelmie & S. C. Pryor, 2023. "Assessing the impact of global warming on windstorms in the northeastern United States using the pseudo-global-warming method," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 117(3), pages 2807-2834, July.
    8. Claudio Nuber & Patrick Velte & Jacob Hörisch, 2020. "The curvilinear and time‐lagging impact of sustainability performance on financial performance: Evidence from Germany," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 27(1), pages 232-243, January.
    9. Ming Chen & Lina Song & Xiaobo Zhu & Yanshuo Zhu & Chuanhao Liu, 2023. "Does Green Finance Promote the Green Transformation of China’s Manufacturing Industry?," Sustainability, MDPI, vol. 15(8), pages 1-22, April.
    10. Archana Saxena & Rajesh Singh & Anita Gehlot & Shaik Vaseem Akram & Bhekisipho Twala & Aman Singh & Elisabeth Caro Montero & Neeraj Priyadarshi, 2022. "Technologies Empowered Environmental, Social, and Governance (ESG): An Industry 4.0 Landscape," Sustainability, MDPI, vol. 15(1), pages 1-17, December.
    11. Mingna Wu & Tianjun Zhou & Chao Li & Hongmei Li & Xiaolong Chen & Bo Wu & Wenxia Zhang & Lixia Zhang, 2021. "A very likely weakening of Pacific Walker Circulation in constrained near-future projections," Nature Communications, Nature, vol. 12(1), pages 1-8, December.
    12. Mi-Kyung Sung & Soon-Il An & Jongsoo Shin & Jae-Heung Park & Young-Min Yang & Hyo-Jeong Kim & Minhee Chang, 2023. "Ocean fronts as decadal thermostats modulating continental warming hiatus," Nature Communications, Nature, vol. 14(1), pages 1-10, December.
    13. Xu Lian & Sujong Jeong & Chang-Eui Park & Hao Xu & Laurent Z. X. Li & Tao Wang & Pierre Gentine & Josep Peñuelas & Shilong Piao, 2022. "Biophysical impacts of northern vegetation changes on seasonal warming patterns," Nature Communications, Nature, vol. 13(1), pages 1-9, December.
    14. Gunnar Gutsche & Miwa Nakai & Toshi H. Arimura, 2021. "Individual Sustainable Investment in Japan," RIEEM Discussion Paper Series 2006, Research Institute for Environmental Economics and Management, Waseda University.
    15. Bhatnagar, S. & Sharma, D., 2022. "Evolution of green finance and its enablers: A bibliometric analysis," Renewable and Sustainable Energy Reviews, Elsevier, vol. 162(C).
    16. Lu Dong & L. Ruby Leung & Fengfei Song & Jian Lu, 2021. "Uncertainty in El Niño-like warming and California precipitation changes linked by the Interdecadal Pacific Oscillation," Nature Communications, Nature, vol. 12(1), pages 1-10, December.
    17. B. H. Samset & C. Zhou & J. S. Fuglestvedt & M. T. Lund & J. Marotzke & M. D. Zelinka, 2022. "Earlier emergence of a temperature response to mitigation by filtering annual variability," Nature Communications, Nature, vol. 13(1), pages 1-9, December.
    18. Nico, Gianluigi & Azzarri, Carlo, 2022. "Weather variability and extreme shocks in Africa: Are female or male farmers more affected?," IFPRI discussion papers 2115, International Food Policy Research Institute (IFPRI).
    19. Dirk Olonscheck & Andrew P. Schurer & Lucie Lücke & Gabriele C. Hegerl, 2021. "Large-scale emergence of regional changes in year-to-year temperature variability by the end of the 21st century," Nature Communications, Nature, vol. 12(1), pages 1-10, December.
    20. Gutsche, Gunnar & Nakai, Miwa & Arimura, Toshi H., 2021. "Revisiting the determinants of individual sustainable investment—The case of Japan," Journal of Behavioral and Experimental Finance, Elsevier, vol. 30(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:15:y:2023:i:12:p:9701-:d:1173225. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.