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Sustainability in Brazilian companies within ISE B3: an analysis based on multicriteria decision-making technique

Yasmin Shawani Fernandes, Paulo Marcelo Ferrarese Pegino, Eduardo Augusto do Rosário Contani, Reginaldo Fidelis

Benchmarking: An International Journal

ISSN: 1463-5771

Article publication date: 5 December 2024

26

Abstract

Purpose

This study proposes a method for analyzing the sustainability of companies according to the Corporate Sustainability Index (ISE B3) while considering environmental, social and governance (ESG) dimensions.

Design/methodology/approach

As a quantitative and descriptive work, our study is based on analyses of responses to ISE B3 questionnaires. We consider 12 scenarios involving the allocation of different weights to important ESG dimensions and use the TOPSIS multicriteria decision-making method to evaluate companies in Brazil.

Findings

The results provide empirical evidence on the importance of balanced approach among the ESG dimensions and reflect the need for regulations and incentives to promote balanced ESG practices. We also identify companies with consistently good sustainability practices, such as Natura, those that deliver poor performance, such as Iochpe-Maxion S.A. and Azul S.A.

Research limitations/implications

We contribute to the literature by integrating a multicriteria methodology into the assessment of corporate sustainability, demonstrating the effectiveness of TOPSIS in different scenarios. We emphasize the importance of balancing the ESG dimensions, and in doing so provide novel perspectives in research.

Practical implications

Our findings offer a practical framework for managers to evaluate and refine their ESG strategies by using benchmarks from industry leaders. Policymakers can use them to formulate regulations and incentives that promote balanced ESG practices.

Originality/value

Our work clarifies the application of TOPSIS to several ESG-based scenarios and presents a comprehensive strategy for evaluating corporate sustainability. Our model can be reproduced and customized in diverse settings and contributes to the literature on corporate sustainability.

Keywords

Citation

Fernandes, Y.S., Ferrarese Pegino, P.M., Contani, E.A.d.R. and Fidelis, R. (2024), "Sustainability in Brazilian companies within ISE B3: an analysis based on multicriteria decision-making technique", Benchmarking: An International Journal, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/BIJ-10-2023-0743

Publisher

:

Emerald Publishing Limited

Copyright © 2024, Emerald Publishing Limited

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