Environmental, social, and governance risks and environmentally sensitive competitive strategies: A case study of a multinational logistics company

Abstract

AbstractGlobal climate change continues to have a negative impact on many sectors, particularly supply chains and logistics. Companies are progressively incorporating environmentally friendly practices into their strategies to tackle this global problem. Accordingly, the increase in environmental, social, and governance (ESG) risks has increased the importance of sustainable corporate governance. As a result, companies tend to place more emphasis on ESG initiatives. The study aims to analyze the importance levels of ESG criteria and to select the most ideal environmentally sensitive competitive strategy for multinational logistics companies. For this purpose, a set of criteria and alternatives for the businesses in the context of the related problem was defined, and a decision model was proposed to handle problems, which include uncertain information. In this context, q‐rung orthopair fuzzy (q‐ROF) weighted average technique was used for weighting the criteria and q‐ROF‐evaluation based on distance from average solution (q‐ROF‐EDAS) method was utilized for prioritizing the strategies. As a result, “greenhouse gas emissions” was identified as the most important criterion, while “eco‐efficiency” was selected as the best option for environmentally conscious competitive strategies.