Measuring Sustainability Performance with Multi Criteria Model: A Case Study

Abstract

The proposal of this research is the development of a hybrid multi-criteria decision analysis (MCDA) model of sustainability performance. The model is applied to a Brazilian oil and gas company and is constructed from the MCDA associated with statistical analysis. The MCDA technique is a preference ranking organization method for enrichment evaluation (PROMETHEE), with analysis of 20 indicators of the dimensions of sustainability. In the statistical analysis, the Principal Component Analysis (PCA) and Multiple Linear Regression (MLR) are used. The results of PROMETHEE showed that the company’s best sustainability performance was in 2011 and 2010. The worst sustainability performance was in 2015 and 2016. The application of the PCA technique aims to eliminate the existing multicollinearity and capture the direction of variability of the indicators. The first PC with 53.2%, the second PC with 25.6%. An estimate based on the MLR equation was performed. The limitation of the paper is with data from the company’s sustainability reports as well as the choice and quantity of indicators. The analysis of the sustainability performance of the company through multi-criteria models is not new but their combination with mathematical models, comparing the sustainability reports per year, brings more complete results on the sustainability performance of the company.