Making sustainability rankings using compromise programming. An application to European paper industry

Abstract

This paper characterizes the sustainability of the European paper industry. To undertake this task the sustainability of each country is defined by using fourteen indicators of a diverse nature (economic, environmental and social). These indicators are aggregated into a composite or synthetic index with the help of a compromise programming model. In order to associate different weights with each indicator, a survey among international experts has been carried out. In this way, a ranking of seventeen European countries analysed in terms of the sustainability of the European paper industry has been established, where Finland is the most sustainable paper industry in Europe except when the most balanced solution is chosen. Also, the results are robust when different preferential weights are attached. Finally, this methodology can be applied at a more disaggregated level and other indicators can be introduced.