Multi-Criteria Analysis of Green Bonds: Hybrid Multi-Method Applications

There is an increasing pressure by the community and customers forcing companies to insert environmental concerns in their practices. To help companies initiatives, the green bonds market was created. Our research question is “How to select bonds in a growing billion-dollar market?” This paper prese...

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Bibliographic Details
Published inSustainability Vol. 13; no. 19; p. 10512
Main Authors Lombardi Netto, Antonio, Salomon, Valerio Antonio Pamplona, Ortiz Barrios, Miguel Angel
Format Journal Article
LanguageEnglish
Published Basel MDPI AG 01.10.2021
Subjects
Analytic hierarchy process
Bonding
Decision making
Economic value added
Environmental management
Investments
Literature reviews
Methods
Multiple criterion
Performance indices
Stock exchanges
Supply chain management
Sustainability
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Summary:There is an increasing pressure by the community and customers forcing companies to insert environmental concerns in their practices. To help companies initiatives, the green bonds market was created. Our research question is “How to select bonds in a growing billion-dollar market?” This paper presents a multi-criteria decision analysis (MCDA) model to enable investors identify opportunities based not only in opinions, but grounded on objective facts. Analytic hierarchy process (AHP), complex proportional assessment (COPRAS), full consistency method (FUCOM), step-wise Weights Assessment Ratio Analysis (SWARA), and technique of order preference similarity to the ideal solution (TOPSIS) are MCDA methods applied in this paper. Top-fifteen green bonds ranked by specialized media were assessed with the proposed MCDA model. Criteria included the Environmental Performance Index (EPI) proposed by Yale University, and common financial indicators as assets, risks (β), and dividends. The new ranks from MCDA are compared each other and compared with the rank published by specialized media.
ISSN:2071-1050
2071-1050
DOI:10.3390/su131910512