Comparative Analysis of MCDM Methods for the Assessment of Corporate Sustainability Performance in Energy Sector

Abstract

Energy is an important input for production, growth, and development. A sustainable energy sector, where energy production and consumption balance is ensured, constitutes a key point for nature and humanity. In this study, a multidimensional framework is presented to measure corporate sustainability in the energy sector. Based on this framework, the sustainability performance of energy companies operating in the Asia and Europe regions is measured by hybrid multiple-criteria decision-making (MCDM) methods, taking into account the economic, environmental, and social dimensions of sustainability. The Entropy method is used to determine the weights of the criteria, the Proximity Indexed Value (PIV) - Range of Value (ROV) - Grey relational analysis (GRA) - Measurement Alternatives and Ranking according to Compromise Solution (MARCOS) methods are used to rank the alternatives. The Copeland method is used to obtain a single rational ranking from different rankings. Based on the obtained results, it is concluded that energy companies in the Asian region are more sustainable than in the European region. Moreover, Thailand is the most sustainable country in the Asian region. The proposed framework can be contribute to the development of the energy sector.