Abstract
Along with economic development and social progress, environmental issues are increasingly becoming the subject of public concern. Through green credit, banks intentionally direct money into resource-conserving technology development and environmental protection industries, thus, encouraging enterprises to focus on green products. Therefore, establishing a reasonable green credit evaluation mechanism for banks is an important issue. Based on this, this study combines grey relational analysis (GRA), the Decision-Making Trial and Evaluation Laboratory technique (DEMATEL), analytic network process (ANP) and the Technique for Order of Preference by Similarity to Ideal Solution (TOPSIS) to develop a hybrid multi-criteria decision-making (MCDM) model for quantifying data and, thereby, to establish a green credit rating mechanism. In order to verify the model, this study combines credit risk and economic, environmental and social performance evaluation criteria as green credit evaluation criteria. There are 55 high-tech listed companies in Taiwan in 2014 taken as the evaluation objects and conducted for a performance ranking. The empirical results can serve as a reference for financial authorities promoting green finance policies and for investors making investment decisions.
Highlights
In recent years, the concept of green sustainable development has been widely considered as an important issue in the world, and the economic orientation has gradually been replaced by the green
A globalized grey relational analysis (GRA)-Decision-Making Trial and Evaluation Laboratory technique (DEMATEL) with analytic network process (ANP) was adopted to determine the relative weight of each evaluation indicator
A globalized GRA-DEMATEL-ANP with the TOPSIS method was applied for the evaluation and ranking of the 55 high-tech industry-listed companies in Taiwan
Summary
The concept of green sustainable development has been widely considered as an important issue in the world, and the economic orientation has gradually been replaced by the green. Financial institutions use green credit as a way to drive economic transformation, are able to effectively resist environmental and social risks and can help transform into a green economy. With the increasing global consensus on the development of green finance, Taiwan’s green finance started relatively late compared to other countries. The government emphasizes the development of green finance, it has no specific results. For Taiwan, establishing a suitable green credit decision-making model is an urgent task. The main purpose of this study is to establish a set of credit criteria for green credit and to conduct green credit evaluations and ranking with the proposed modified hybrid multi-criteria decision-making (MCDM) model. The results can be provided to the banking industry as a reference for corporate green credit assessment
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