Multimodal LLM audit finds 80% of corporate building reports unfit for decarbonization regulation

Researchers from arXiv (Paper 2607.22006) developed BeDA (Built-environment Decarbonisation-disclosure Auditor), a multimodal large-language-model instrument, to evaluate whether corporate disclosure of building carbon intensity is fit for stranding regulation. BeDA was applied to a global panel of 2,246 firms spanning 2003-2023. The tool assigns a standards-compliance score that proved reliable across model families (inter-extractor κ=0.95-0.97) and converged with three independent external criteria. The study focuses on laws like NYC Local Law 97 and EU Energy Performance of Buildings Directive, which require measuring carbon intensity per square meter against science-based pathways.

The results are stark: only 21.5% of built-environment firm reports disclose operational carbon intensity per m² (Wilson 95% CI [16.4%, 27.7%]), rising to 45.5% among 519 real-estate firm-reports. Europe leads at 64-74% for listed real estate compared to 37% in the US. Critically, among the 215 real-estate reports where intensity can be calculated, 39% already exceed the Carbon Risk Real Estate Monitor (CRREM) 1.5°C pathway limits. The study emphasizes this is a screening tool, not a forecast—credibility doesn't predict stranding readiness when controlling for portfolio size. The main takeaway: measurable, jurisdiction-specific reporting gaps are the primary obstacle to enforceable building-stranding regulation, and targeted disclosure mandates can close them with BeDA as a monitoring tool.