Evaluating Environmental, Social, and Governance Criteria and Green Finance Investment Strategies Using Fuzzy AHP and Fuzzy WASPAS

Xiaokai Meng () and Ghulam Muhammad Shaikh ()
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Xiaokai Meng: School of Economics and Management, Beijing Jiaotong University, Beijing 100044, China
Ghulam Muhammad Shaikh: Department of Computer Science, Bahria University, Karachi 75260, Pakistan

Sustainability, 2023, vol. 15, issue 8, 1-19

Abstract: The evaluation and prioritization of environmental, social, and governance (ESG) factors are critical for green finance investment strategies. However, ESG criteria are complex and varied concepts that call for a systematic and reliable ranking system to handle ambiguity and uncertainty in decision-makers’ preferences and assessments. The objective of this study was to examine and prioritize environmental, social, and governance (ESG) factors and investment strategies for the development of green finance. Although ESG criteria have gained importance recently, some research gaps still need to be filled. For this purpose, evaluating ESG criteria and integrating them with green finance investment strategies is imperative. This study employed the fuzzy analytical hierarchy process (AHP) method to assess and rank ESG criteria and sub-criteria and the fuzzy weighted aggregated sum product assessment (WASPAS) method to assess and prioritize the key investment strategies for the development of green finance. According to the fuzzy AHP findings, governance and social factors are secondary to environmental considerations in the creation of green finance. Green bonds, ESG integration, and renewable energy funds are essential to green finance methods, according to the fuzzy WASPAS data. This research provides information on creating sustainable and ethical investment strategies for green finance and successfully including ESG factors in investment decision-making processes.

Keywords: green finance; ESG criteria; investment strategy; sustainable development; fuzzy AHP; fuzzy WASPAS (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7)

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