Evaluation of the socioeconomic and environmental sustainability of banking institutions in Brazil using the Analytic Hierarchy Process with ratings approach

Igor Laguna Vieira,Luis Alberto Duncan Rangel,Luiz Carlos De Martini Junior,Elmo Rodrigues Da Silva

doi:10.1590/1806-9649-2021v28e5407

Igor Laguna Vieira, Luis Alberto Duncan Rangel + Show 2 more

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https://doi.org/10.1590/1806-9649-2021v28e5407

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Abstract

Abstract: Large banking institutions play an important role in sustainable development, especially owing to their size and capillarity. Therefore, the objective of this study is to compare sustainability indicators (economic, environmental, and social) published in the reports of some of these institutions that operate in the Brazilian market. The four banks selected for this study were the ones that published their sustainability reports in the 2017 Global Reporting Initiative standard, and that comprised the portfolio of the Corporate Sustainability Index, promoted by “Brasil, Bolsa e Balcão,” in 2018. These banks were Banco do Brasil, Bradesco, Itaú, and Santander. The analytic hierarchy process (AHP) with the use of ratings was used to carry out the research. After elaborating on the hierarchical structure of the problem, specialists, who were researchers in the field of sustainability, were required to weigh the degree of relevance of each of the indicators analyzed in this study. A ranking of the selected banks was then obtained in relation to their sustainability performances, which was based on the weights given to each indicator and the data available in the sustainability reports of each institution investigated. The banks were ranked in the following order: Itaú, Santander, Bradesco, and Banco do Brasil. The results of this study showed that there is room for evolution in relation to sustainability, mainly in the social department, in the banking sector. The AHP method with the use of ratings proved to be efficient, especially because it allowed for the weighing of the evaluation criteria and sub-criteria; this proved the usefulness of the method in comparing companies with regard to their sustainability performance.

Highlights

The concept of sustainable development emerged in the midst of environmental discussions, especially during the 1970s and 1980s
The aim of this study was to compare the socioeconomic and environmental sustainability of four banks that operate in the Brazilian market by analyzing the indicators described in their Global Reporting Initiative (GRI) reports for 2017
The sustainability performance assessment was carried out based on the indicators proposed by the GRI (“GRI Standards” version)

Summary

Introduction

The concept of sustainable development emerged in the midst of environmental discussions, especially during the 1970s and 1980s. The most widespread definition of the term is that derived from the report entitled “Our Common Future,” known as the “Brundtland Report,” which was prepared in 1987; in this report, sustainable development is defined as the form of development that meets the need of the current generation without compromising those of future generations (WCED, 1987) Another important concept, coined by Elkington (1997), is the so-called triple bottom line (people, planet, profit). Through the so-called 2030 Agenda for Sustainable Development, the United Nations (UN) renewed this call for attention to sustainability issues (Borgert et al, 2018) This Agenda is a universal action plan with three dimensions (social, economic, and environmental) and 17 Sustainable Development Goals (SDGs), which are expected to be achieved by 2030. Some of these goals are issues such as achieving gender equality, ensuring the sustainable management of water and energy, and promoting sustained and inclusive economic growth (UN, 2015)

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