IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v12y2020i17p6805-d402341.html

Sustainability Assessment of Investments Based on a Multiple Criteria Methodological Framework

Author

Listed:
  • Paraskevi Ovezikoglou

    (Department of Quality Management and Technology, School of Science and Technology, Hellenic Open University, GR 26335 Patra, Greece)

  • Dimitrios Aidonis

    (Department of Quality Management and Technology, School of Science and Technology, Hellenic Open University, GR 26335 Patra, Greece
    Department of Supply Chain Management, School of Economics and Business Administration, International Hellenic University, GR 60100 Katerini, Greece)

  • Charisios Achillas

    (Department of Supply Chain Management, School of Economics and Business Administration, International Hellenic University, GR 60100 Katerini, Greece)

  • Christos Vlachokostas

    (Laboratory of Heat Transfer and Environmental Engineering, Aristotle University Thessaloniki, GR 54124 Thessaloniki, Greece)

  • Dionysis Bochtis

    (Institute for Bio-Economy and Agri-Technology (iBO), Center for Research and Technology–Hellas (CERTH), 6th km Charilaou-Thermi Rd, Thermi, GR 57001 Thessaloniki, Greece)

Abstract

The assessment of an investment is currently carried out by using mainly financial tools. This work presents a new model for the assessment of the sustainability of an industrial investment and focuses on the development of a holistic framework with the use of indicators. With the use of multi-criteria decision analysis, the framework evaluates a total of eighteen (18) alternative indicators in order to select the optimal bundle to be used for the assessment of future industrial investments. The proposed indicators are selected based on relevant data from the literature, taking into account the principles of prevention, planning and designing. The alternatives are assessed over four (4) criteria, namely environment, society, economy and technology, which are grounded on the principles of sustainable development. Depending on the special characteristics of the programme that is foreseen to fund the potential investments, the decision-maker is provided with a hierarchized set of indicators over which the alternative investments could be optimally assessed in parallel with widely used indicators that strictly assess economic performance. In the present work, twelve (12) different scenarios are examined, incorporating different values in the coefficients of the criteria. For the majority of the scenarios examined (a sensitivity analysis is also provided), the alternative indicator that is assessed with the highest score is “Resource Savings”, followed by “Recycling” and “Research, Innovation, Development”.

Suggested Citation

  • Paraskevi Ovezikoglou & Dimitrios Aidonis & Charisios Achillas & Christos Vlachokostas & Dionysis Bochtis, 2020. "Sustainability Assessment of Investments Based on a Multiple Criteria Methodological Framework," Sustainability, MDPI, vol. 12(17), pages 1-13, August.
    • Handle: RePEc:gam:jsusta:v:12:y:2020:i:17:p:6805-:d:402341
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/12/17/6805/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/12/17/6805/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Rogers, Martin & Bruen, Michael, 1998. "Choosing realistic values of indifference, preference and veto thresholds for use with environmental criteria within ELECTRE," European Journal of Operational Research, Elsevier, vol. 107(3), pages 542-551, June.
    2. Sergio Manrique & Carmen-Pilar Martí-Ballester, 2017. "Analyzing the Effect of Corporate Environmental Performance on Corporate Financial Performance in Developed and Developing Countries," Sustainability, MDPI, vol. 9(11), pages 1-30, October.
    3. Hossam A. Kishawy & Hussien Hegab & Elsadig Saad, 2018. "Design for Sustainable Manufacturing: Approach, Implementation, and Assessment," Sustainability, MDPI, vol. 10(10), pages 1-15, October.
    4. Didem Dizdaroglu, 2017. "The Role of Indicator-Based Sustainability Assessment in Policy and the Decision-Making Process: A Review and Outlook," Sustainability, MDPI, vol. 9(6), pages 1-28, June.
    5. Haralambopoulos, D.A. & Polatidis, H., 2003. "Renewable energy projects: structuring a multi-criteria group decision-making framework," Renewable Energy, Elsevier, vol. 28(6), pages 961-973.
    6. Lee, Ki-Hoon & Min, Byung & Yook, Keun-Hyo, 2015. "The impacts of carbon (CO2) emissions and environmental research and development (R&D) investment on firm performance," International Journal of Production Economics, Elsevier, vol. 167(C), pages 1-11.
    7. Komninos Angelakoglou & Georgios Gaidajis, 2020. "A Conceptual Framework to Evaluate the Environmental Sustainability Performance of Mining Industrial Facilities," Sustainability, MDPI, vol. 12(5), pages 1-20, March.
    8. Di Vaio, Assunta & Varriale, Luisa & Alvino, Federico, 2018. "Key performance indicators for developing environmentally sustainable and energy efficient ports: Evidence from Italy," Energy Policy, Elsevier, vol. 122(C), pages 229-240.
    9. Ibrahim Falqi & Saleh Alsulamy & Mohamed Mansour, 2020. "Environmental Performance Evaluation and Analysis Using ISO 14031 Guidelines in Construction Sector Industries," Sustainability, MDPI, vol. 12(5), pages 1-18, February.
    10. Ivo Hristov & Antonio Chirico, 2019. "The Role of Sustainability Key Performance Indicators (KPIs) in Implementing Sustainable Strategies," Sustainability, MDPI, vol. 11(20), pages 1-19, October.
    11. Michailidou, Alexandra V. & Vlachokostas, Christos & Moussiopoulos, Νicolas, 2016. "Interactions between climate change and the tourism sector: Multiple-criteria decision analysis to assess mitigation and adaptation options in tourism areas," Tourism Management, Elsevier, vol. 55(C), pages 1-12.
    12. C Achillas & D Aidonis & C Vlachokostas & D Folinas & N Moussiopoulos, 2013. "Re-designing industrial products on a multi-objective basis: a case study," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 64(9), pages 1336-1346, September.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Charisios Achillas & Dionysis Bochtis, 2020. "Toward a Green, Closed-Loop, Circular Bioeconomy: Boosting the Performance Efficiency of Circular Business Models," Sustainability, MDPI, vol. 12(23), pages 1-6, December.
    2. Vangelis Marinakis & Alexandros Flamos & Giorgos Stamtsis & Ioannis Georgizas & Yannis Maniatis & Haris Doukas, 2020. "The Efforts towards and Challenges of Greece’s Post-Lignite Era: The Case of Megalopolis," Sustainability, MDPI, vol. 12(24), pages 1-21, December.
    3. Charisios Achillas & Dionysis Bochtis, 2021. "Supply Chain Management for Bioenergy and Bioresources: Bridging the Gap between Theory and Practice," Energies, MDPI, vol. 14(19), pages 1-4, September.
    4. Manuel Sousa & Maria Fatima Almeida & Rodrigo Calili, 2021. "Multiple Criteria Decision Making for the Achievement of the UN Sustainable Development Goals: A Systematic Literature Review and a Research Agenda," Sustainability, MDPI, vol. 13(8), pages 1-37, April.
    5. Anna Marciniuk-Kluska & Mariusz Kluska, 2025. "An Attempt to Assess the Implementation of the Circular Economy in the EU-27 as an Important Element of Sustainable Development," Sustainability, MDPI, vol. 17(11), pages 1-23, May.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Christos Vlachokostas & Charisios Achillas & Ioannis Agnantiaris & Alexandra V. Michailidou & Christos Pallas & Eleni Feleki & Nicolas Moussiopoulos, 2020. "Decision Support System to Implement Units of Alternative Biowaste Treatment for Producing Bioenergy and Boosting Local Bioeconomy," Energies, MDPI, vol. 13(9), pages 1-14, May.
    2. Michailidou, Alexandra V. & Vlachokostas, Christos & Moussiopoulos, Νicolas, 2016. "Interactions between climate change and the tourism sector: Multiple-criteria decision analysis to assess mitigation and adaptation options in tourism areas," Tourism Management, Elsevier, vol. 55(C), pages 1-12.
    3. Owain Simpson & Mark Elliott & Catherine Muller & Tim Jones & Phillippa Hentsch & Daniel Rooney & Nicole Cowell & William J. Bloss & Suzanne E. Bartington, 2022. "Evaluating Actions to Improve Air Quality at University Hospitals Birmingham NHS Foundation Trust," Sustainability, MDPI, vol. 14(18), pages 1-42, September.
    4. Mohamed Abubakr & Adel T. Abbas & Italo Tomaz & Mahmoud S. Soliman & Monis Luqman & Hussien Hegab, 2020. "Sustainable and Smart Manufacturing: An Integrated Approach," Sustainability, MDPI, vol. 12(6), pages 1-19, March.
    5. Lerche, Nils & Wilkens, Ines & Schmehl, Meike & Eigner-Thiel, Swantje & Geldermann, Jutta, 2019. "Using methods of Multi-Criteria Decision Making to provide decision support concerning local bioenergy projects," Socio-Economic Planning Sciences, Elsevier, vol. 68(C).
    6. Chiuhsiang Joe Lin & Tariku Tamiru Belis & Dino Caesaron & Bernard C. Jiang & Tsai Chi Kuo, 2020. "Development of Sustainability Indicators for Employee-Activity Based Production Process Using Fuzzy Delphi Method," Sustainability, MDPI, vol. 12(16), pages 1-31, August.
    7. Gao, Ruxing & Nam, Hyo On & Ko, Won Il & Jang, Hong, 2018. "Integrated system evaluation of nuclear fuel cycle options in China combined with an analytical MCDM framework," Energy Policy, Elsevier, vol. 114(C), pages 221-233.
    8. Idiano D'Adamo & Massimo Gastaldi & Ilhan Ozturk, 2023. "The sustainable development of mobility in the green transition: Renewable energy, local industrial chain, and battery recycling," Sustainable Development, John Wiley & Sons, Ltd., vol. 31(2), pages 840-852, April.
    9. Chandra Prakash Garg & Vishal Kashav & Xuemuge Wang, 2023. "Evaluating sustainability factors of green ports in China under fuzzy environment," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 25(8), pages 7795-7821, August.
    10. Mohamed Ali Elleuch & Marwa Mallek & Ahmed Frikha & Wafik Hachicha & Awad M. Aljuaid & Murad Andejany, 2021. "Solving a Multiple User Energy Source Selection Problem Using a Fuzzy Multi-Criteria Group Decision-Making Approach," Energies, MDPI, vol. 14(14), pages 1-16, July.
    11. Klein, Sharon J.W. & Coffey, Stephanie, 2016. "Building a sustainable energy future, one community at a time," Renewable and Sustainable Energy Reviews, Elsevier, vol. 60(C), pages 867-880.
    12. Javier García López & Raffaele Sisto & Javier Benayas & Álvaro de Juanes & Julio Lumbreras & Carlos Mataix, 2021. "Assessment of the Results and Methodology of the Sustainable Development Index for Spanish Cities," Sustainability, MDPI, vol. 13(11), pages 1-29, June.
    13. Laima Gerlitz & Christopher Meyer, 2021. "Small and Medium-Sized Ports in the TEN-T Network and Nexus of Europe’s Twin Transition: The Way towards Sustainable and Digital Port Service Ecosystems," Sustainability, MDPI, vol. 13(8), pages 1-24, April.
    14. Marco Rogna, 2019. "A First-Phase Screening Device for Site Selection of Large-Scale Solar Plants with an Application to Italy," BEMPS - Bozen Economics & Management Paper Series BEMPS57, Faculty of Economics and Management at the Free University of Bozen.
    15. Yingyi Huang & Yuliya Mamatok & Chun Jin, 2021. "Decision-making instruments for container seaport sustainable development: management platform and system dynamics model," Environment Systems and Decisions, Springer, vol. 41(2), pages 212-226, June.
    16. A. G. Olabi & Khaled Obaideen & Mohammad Ali Abdelkareem & Maryam Nooman AlMallahi & Nabila Shehata & Abdul Hai Alami & Ayman Mdallal & Asma Ali Murah Hassan & Enas Taha Sayed, 2023. "Wind Energy Contribution to the Sustainable Development Goals: Case Study on London Array," Sustainability, MDPI, vol. 15(5), pages 1-22, March.
    17. Schliephack, Johanna & Dickinson, Janet E., 2017. "Tourists’ representations of coastal managed realignment as a climate change adaptation strategy," Tourism Management, Elsevier, vol. 59(C), pages 182-192.
    18. Vytautas Paulauskas & Viktoras Senčila & Donatas Paulauskas & Martynas Simutis, 2023. "Impact of Port Shallowness (Clearance under the Ship’s Keel) on Shipping Safety, Energy Consumption and Sustainability of Green Ports," Sustainability, MDPI, vol. 15(22), pages 1-20, November.
    19. Shih-Hao Wang & Meng-Tsung Lee & Pierre-Alexandre Château & Yang-Chi Chang, 2016. "Performance Indicator Framework for Evaluation of Sustainable Tourism in the Taiwan Coastal Zone," Sustainability, MDPI, vol. 8(7), pages 1-13, July.
    20. Svatava Janoušková & Tomáš Hák & Bedřich Moldan, 2018. "Global SDGs Assessments: Helping or Confusing Indicators?," Sustainability, MDPI, vol. 10(5), pages 1-14, May.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:12:y:2020:i:17:p:6805-:d:402341. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.