Article ID: | iaor20062779 |
Country: | Canada |
Volume: | 3 |
Issue: | 2 |
Start Page Number: | 95 |
End Page Number: | 105 |
Publication Date: | Jun 2004 |
Journal: | Journal of Environmental Informatics |
Authors: | Yeomans Julian Scott |
Keywords: | geography & environment, financial |
The basic intent in financial performance evaluation is to appraise current business operations internally and to benchmark them against similar business operations externally in order to identify best-in-class practices. In this paper, a new positive environmental/financial screening approach that can simultaneously include a wide combination of regulatory, technological, operational and event dimensions is created for the analyzing, rating, ranking, benchmarking, and selecting of companies from an industry sector. A method is provided that advances the use of Data Envelopment Analysis (DEA) for rating and ranking diverse groups of companies using a combination of both financial and environmental performance measures. This novel approach proceeds by first stratifying the sector into comparably efficient groups of companies through the construction of a series of efficient DEA frontiers, and then by ranking each company within these groups relative to DEA-based contextual attractiveness measures calculated from the different partitions. The method is illustrated through an application to a group of companies from the Metals and Mining Industry sector.