Algorithm for the formation of a system of multi-criteria metrics for evaluating the activity of energy companies taking into account ESG criteria

Abstract

The article emphasizes the challenges facing Ukraine's energy sector, in particular, the energy crisis caused by Russian strikes on critical infrastructure facilities and their wear and tear. To overcome them, Ukraine needs significant investments in the energy sector to restore, modernize and expand this infrastructure, developing new energy sources and implementing energy-efficient measures. By disclosing ESG criteria and aligning their activities with the Sustainable Development Goals in their reports, companies can demonstrate their commitment to sustainability initiatives, the achievement of global goals and responsible business conduct, thereby increasing their own investment attractiveness and attracting more investment for the energy sector. The work also emphasizes the importance of energy efficiency and green energy for increasing Ukraine’s energy independence and reducing dependence on imports, which can be achieved with the help of the proposals of the UN General Assembly and the Marshall Plan for post-war recovery of Ukraine. The peculiarities, advantages and disadvantages of the methodologies of scientists are considered, in particular: Analytic Hierarchy Process (AHP), Data Envelopment Analysis (DEA), Technique for Order Preference by Similarity to Ideal Solution (TOPSIS) and Preference Ranking Organization Method for Enrichment Evaluations (PROMETHEE). Transparency and commitment to sustainable development at the corporate level is covered by various ratings. The methodologies of Energy Transparency Index 2021 (II international edition), DJSI, MSCI ESG Ratings, FTSE4Good Index and Corporate Knights’ index 100 most sustainable corporations were analyzed. The article highlights the differences in approaches and sets of criteria used by different rating agencies, as well as the advantages and disadvantages of each approach. A multi-criteria metric system is proposed for evaluating the activity of energy companies in Ukraine taking into account ESG criteria and the stages of development of such a system are outlined, namely the selection of research objects, criteria for analysis, data collection, scoring of companies, comparison of indices, consideration of quality factors, analysis, verification and generalization of research results.