Multi-Criteria Decision Analysis Framework for Integrating ESG Metrics into Supply Chain Optimization

Abstract This research work proposes a structure of connecting Environment, Social, and Governance (ESG) metrics to supply chain decision-making using multi-criteria decision analysis (MCDA). The paper caters for the emerging need to develop sustainable supply chain management strategies without necessarily compromising the operations. The theoretical framework finds agreement on linking explicit numerical ESG values with conventional performance measures. It offers a systematic framework to organizations to optimally align overall sustainability initiatives or goals with corporate strategies or targets. Empirical validation of the framework in the manufacturing sector further shows the practicality of applying the framework in the enhancement of sustainable performance outcomes of strategic decisions made. Keywords: Environment, Social, and Governance (ESG), multi-criteria decision analysis (MCDA), supply chain optimization, risk management.