Design of ''green grade'' rating system for the environmental performance assessment of a firm

Abstract

In this paper, a new concept called "green grade" was introduced to assess the environmental performance of a firm. Seven links of the green value chain of a firm, including green management, green suppliers, green design, green process, green marketing, green consumption and green recycle, were thoroughly analysed and researched, resulting in the development of a new model to assess environmental performance of a firm quantitatively. The proposed model, known as green grade rating system, employed the Analytic Hierarchy Process, and was demonstrated as a practical, feasible and effective quantitative method to assess the environmental performance of a company. The proposed green grade rating system can be of great significance to small- or medium-sized enterprises (SMEs) since these produce the majority of output values in the industry of any country and are the main pollution sources due to their dated technology and limited capital.

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