Rating ESG key performance indicators in the airline industry

Alan Francisco Caraveo Gomez Llanos, Annas Vijaya () and Hendro Wicaksono
Additional contact information
Alan Francisco Caraveo Gomez Llanos: Constructor University
Annas Vijaya: Constructor University
Hendro Wicaksono: Constructor University

Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, 2024, vol. 26, issue 11, No 21, 27629-27653

Abstract: Abstract The environmental, social, and governance (ESG) integration finds itself in a transition with rapid developments worldwide, given that the pandemic incentivized companies and investors to focus on other social and governance measures such as ESG ratings. However, the divergence of ratings from the ESG and a lack of transparency lead the companies to report voluntary indicators without standardization. This study aimed to identify the ESG criteria and the most suitable set of key performance indicators (KPIs) in the airline industry after the impact of COVID-19. Furthermore, the second objective was to determine the appropriate weights and ranking of the identified criteria. The multi-criteria decision-making analytical hierarchical process was applied for this purpose. Additionally, the use of intuitionistic variables delivers a comprehensive model for rating the airlines according to their ESG performance. The most relevant criteria found in the study were critical risk management, greenhouse gas emissions, and systemic risk management. Regarding the KPIs, the top-3 weights were the number of flight accidents, jet fuel consumed and sustainable aviation used, and the number of digital transformation initiatives.

Keywords: ESG; CSR; Sustainability; Performance; KPI; COVID-19 (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://link.springer.com/10.1007/s10668-023-03775-z Abstract (text/html)
Access to the full text of the articles in this series is restricted.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:endesu:v:26:y:2024:i:11:d:10.1007_s10668-023-03775-z

Ordering information: This journal article can be ordered from
http://www.springer.com/economics/journal/10668

DOI: 10.1007/s10668-023-03775-z

Access Statistics for this article

Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development is currently edited by Luc Hens

More articles in Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().