Sustainability performance assessment with intuitionistic fuzzy composite metrics and its application to the motor industry

Abstract

The performance assessment of companies in terms of sustainability requires to find a balance between multiple and possibly conflicting criteria. We here rely on composite metrics to rank a set of companies within an industry considering environmental, social and corporate governance criteria. To this end, we connect intuitionistic fuzzy sets and composite programming to propose novel composite metrics. These metrics allow to integrate important environmental, social and governance principles with the gradual membership functions of fuzzy set theory. The main result of this paper is a sustainability assessment method to rank companies within a given industry. In addition to consider multiple objectives, this method integrates two important social principles such as maximum utility and fairness. A real-world example is provided to describe the application of our sustainability assessment method within the motor industry. A further contribution of this paper is a multicriteria generalization of the concept of magnitude of a fuzzy number.