A new decision-making approach for the green finance investment strategies with interval-valued Pythagorean fuzzy sets

Özet

Based on criteria derived from environmental, social, and governance (ESG) sub-criteria, this study presents a decision support system to aid in selecting the optimal green finance investment plan. For interval-valued Pythagorean fuzzy sets, a scoring function, distance measure, similarity measure, and entropy measure are introduced as a set of new mathematical tools for decision-making under uncertainty. The Interval-Valued Pythagorean Fuzzy Sets framework is employed to evaluate seven popular sustainable investment strategies: Impact Investing, Environmental, Social, and Governance (ESG) Integration, Green Bonds, Sustainable Agriculture Funds, Shareholder Engagement, Renewable Energy Funds, and Thematic Investing. This work primarily utilizes a score function and distance metric for interval-valued Pythagorean fuzzy numbers to address specific comparative challenges. We used an entropy measure based on an interval-valued Pythagorean fuzzy set to calculate the objective weights. We then used the weighted distance-based approximation approach. The best option may be close to the negative-ideal solution (AIP-worst plan) and far from the positive-ideal solution (PIS-best plan), according to the weighted distance-based approximation technique.