The assessment of environmental sustainability of European companies: a MCDM approach

This paper examines the environmental sustainability of European companies through the use of three multi-criteria decision-making methods: TOPSIS, PROMETHEE II, and SIR. The companies listed in the STOXX Europe 600 index, divided into ten economic sectors, are evaluated using 110 environmental criteria organized into three categories: Emissions, Innovation, and Resource Use. The use of multiple methods allows for a comprehensive assessment of corporate sustainability by capturing different ranking perspectives. This approach mitigates the limitations associated with relying on a single decision-making model and enhances the reliability of the evaluation process. A comparison with the LSEG ranking is provided to assess the consistency of these multi-criteria methods with an established sustainability benchmark. The results indicate that while PROMETHEE II and SIR exhibit a strong correlation, TOPSIS generates significantly different rankings, highlighting the influence of methodological differences on sustainability assessments. Moreover, the findings reveal a general improvement in corporate environmental performance over time, with certain companies consistently achieving high rankings, while others struggle to keep pace with evolving sustainability standards. The study provides relevant insights for investors, policymakers, and corporate executives, offering tools to improve sustainability practices and promote responsible investment