Measuring the corporate sustainability performance of firms in the renewable energy sector

This thesis aims to evaluate the corporate sustainability performance of firms operating in the renewable energy sector through an objective and systematic approach. In this context, the sustainability performance of AYDEM Renewable Energy Inc., a company listed on Borsa Istanbul, was analyzed for the period between 2019 and 2023. The study addressed corporate sustainability in three dimensions: economic, environmental, and social. Numerous indicators related to these dimensions were used in the assessment. Methodologically, two Multi-Criteria Decision-Making (MCDM) methods were integrated: Entropy and MARCOS (Measurement of Alternatives and Ranking according to Compromise Solution). First, the Entropy method was applied to determine the objective weights of the evaluation criteria. These weights were then used in the MARCOS method to rank the sustainability performance of each year. The analysis revealed that the sustainability performance of AYDEM varied over the years, with 2022 being the year with the highest overall performance. This result indicates that improvements in environmental indicators and economic stability played a significant role. In contrast, 2020 was identified as the lowest-performing year due to the adverse effects of the COVID-19 pandemic across all dimensions. This study demonstrated that the integrated use of Entropy and MARCOS methods can serve as an effective decision-support tool in sustainability assessments. Furthermore, the applicability of this methodological framework to other firms in the energy sector enhances its generalizability and practical relevance.