# ESG-Bench: Benchmarking Long-Context ESG Reports for Hallucination Mitigation

arXiv: https://arxiv.org/abs/2603.13154 · HTML: https://mlsanity.com/paper/2603.13154/

## Key facts

- No citing papers in the map yet (data through 14 Oct 2026).
- Builds on 10 of its 41 references that are in the map.
- First posted on arXiv 13 Mar 2026.

## Builds on (most cited first, 10 of 10)

- [The Llama 3 Herd of Models](https://mlsanity.com/paper/2407.21783/) (2024)
- [Large Language Models are Zero-Shot Reasoners](https://mlsanity.com/paper/2205.11916/) (2022)
- [TriviaQA: A Large Scale Distantly Supervised Challenge Dataset for Reading Comprehension](https://mlsanity.com/paper/1705.03551/) (2017)
- [Language Models (Mostly) Know What They Know](https://mlsanity.com/paper/2207.05221/) (2022)
- [Fine-tuning Language Models for Factuality](https://mlsanity.com/paper/2311.08401/) (2023)
- [Wat zei je? Detecting Out-of-Distribution Translations with Variational Transformers](https://mlsanity.com/paper/2006.08344/) (2020)
- [Analyzing Sustainability Reports Using Natural Language Processing](https://mlsanity.com/paper/2011.08073/) (2020)
- [RECKONING: Reasoning through Dynamic Knowledge Encoding](https://mlsanity.com/paper/2305.06349/) (2023)
- [Investigating Hallucinations in Pruned Large Language Models for Abstractive Summarization](https://mlsanity.com/paper/2311.09335/) (2023)
- [POT: Inducing Overthinking in LLMs via Black-Box Iterative Optimization](https://mlsanity.com/paper/2508.19277/) (2025)

## Abstract (arXiv)

As corporate responsibility increasingly incorporates environmental, social, and governance (ESG) criteria, ESG reporting is becoming a legal requirement in many regions and a key channel for documenting sustainability practices and assessing firms' long-term and ethical performance. However, the length and complexity of ESG disclosures make them difficult to interpret and automate the analysis reliably. To support scalable and trustworthy analysis, this paper introduces ESG-Bench, a benchmark dataset for ESG report understanding and hallucination mitigation in large language models (LLMs). ESG-Bench contains human-annotated question-answer (QA) pairs grounded in real-world ESG report contexts, with fine-grained labels indicating whether model outputs are factually supported or hallucinated. Framing ESG report analysis as a QA task with verifiability constraints enables systematic evaluation of LLMs' ability to extract and reason over ESG content and provides a new use case: mitigating hallucinations in socially sensitive, compliance-critical settings. We design task-specific Chain-of-Thought (CoT) prompting strategies and fine-tune multiple state-of-the-art LLMs on ESG-Bench using CoT-annotated rationales. Our experiments show that these CoT-based methods substantially outperform standard prompting and direct fine-tuning in reducing hallucinations, and that the gains transfer to existing QA benchmarks beyond the ESG domain.