Developing sustainability index for Malaysian palm oil industry with fuzzy analytic network process

Sue Lin Ngan, Michael Angelo B. Promentille, Puan Yatim, Hon Loong Lam, Ah Choy Er

Research output: Contribution to journalArticle

Abstract

As one of the world’s major exporters of crude palm oil, Malaysian palm oil industry plays a crucial role in the country’s economic development. The utilization of palm oil biomass residues into high value-added products also has grown tremendously in recent years and has significantly contributed to the country’s GDP. Despite obvious benefits to the country’s economy and welfare of its population, the oil palm industry also contributes to environmental degradation, both at the input and output sides of its activities. Therefore, it is imperative that the implementation of sustainable supply chain and green logistics practices should be considered within the industry. With increasing pressure from various stakeholders to act and report on sustainability best practices, a number of sustainability assessment tools have emerged and some of which are adopted by industry players to demonstrate their commitment to sustainable development. Sustainability indicators and composite index are increasingly recognized as a powerful tool for policy making and corporate communication in providing information on sustainability performance in areas such as environment, economy and society. The uncertain parameters are particularly noticeable in the palm oil industry since the demand and supply are very volatile, and there are many uncertain variables associated with the industry’s supply chain. The fuzzy analytical network process (FANP), a multi-criteria decision-making analysis tools that has been applied to problems in various industries is adopted in this work. A complex of relationships between economic, environmental and social performance indicators related to the oil palm industry is constructed as a network model. Pairwise judgements are then elicited from experts to derive priority weightages for every component in the sustainability model. Varying with traditional ANP, using fuzzy numbers for pairwise comparisons ratios allows the confidence level of the judgements to be quantified explicitly. Converged priority vector that captures the correlation and importance of named indicators is then converted to form the sustainability index. The sustainability index will provide a framework for best practices assessment for the oil palm industry and is likely to raise the performance and delivery of sustainability. Such a comprehensive index will also stimulate positive change within the industry, through both internal performance and external perception and image branding.

Original languageEnglish
Pages (from-to)229-234
Number of pages6
JournalChemical Engineering Transactions
Volume70
DOIs
Publication statusPublished - 1 Jan 2018

Fingerprint

Palm oil
Sustainable development
Industry
Supply chains
palm oil
Economics
Atrial Natriuretic Factor
Weathering
Logistics
Biomass
Decision making
Communication
Composite materials

ASJC Scopus subject areas

  • Chemical Engineering(all)

Cite this

Developing sustainability index for Malaysian palm oil industry with fuzzy analytic network process. / Ngan, Sue Lin; Promentille, Michael Angelo B.; Yatim, Puan; Lam, Hon Loong; Er, Ah Choy.

In: Chemical Engineering Transactions, Vol. 70, 01.01.2018, p. 229-234.

Research output: Contribution to journalArticle

@article{a468bdf4e39a409d9381f052f02733bd,
title = "Developing sustainability index for Malaysian palm oil industry with fuzzy analytic network process",
abstract = "As one of the world’s major exporters of crude palm oil, Malaysian palm oil industry plays a crucial role in the country’s economic development. The utilization of palm oil biomass residues into high value-added products also has grown tremendously in recent years and has significantly contributed to the country’s GDP. Despite obvious benefits to the country’s economy and welfare of its population, the oil palm industry also contributes to environmental degradation, both at the input and output sides of its activities. Therefore, it is imperative that the implementation of sustainable supply chain and green logistics practices should be considered within the industry. With increasing pressure from various stakeholders to act and report on sustainability best practices, a number of sustainability assessment tools have emerged and some of which are adopted by industry players to demonstrate their commitment to sustainable development. Sustainability indicators and composite index are increasingly recognized as a powerful tool for policy making and corporate communication in providing information on sustainability performance in areas such as environment, economy and society. The uncertain parameters are particularly noticeable in the palm oil industry since the demand and supply are very volatile, and there are many uncertain variables associated with the industry’s supply chain. The fuzzy analytical network process (FANP), a multi-criteria decision-making analysis tools that has been applied to problems in various industries is adopted in this work. A complex of relationships between economic, environmental and social performance indicators related to the oil palm industry is constructed as a network model. Pairwise judgements are then elicited from experts to derive priority weightages for every component in the sustainability model. Varying with traditional ANP, using fuzzy numbers for pairwise comparisons ratios allows the confidence level of the judgements to be quantified explicitly. Converged priority vector that captures the correlation and importance of named indicators is then converted to form the sustainability index. The sustainability index will provide a framework for best practices assessment for the oil palm industry and is likely to raise the performance and delivery of sustainability. Such a comprehensive index will also stimulate positive change within the industry, through both internal performance and external perception and image branding.",
author = "Ngan, {Sue Lin} and Promentille, {Michael Angelo B.} and Puan Yatim and Lam, {Hon Loong} and Er, {Ah Choy}",
year = "2018",
month = "1",
day = "1",
doi = "10.3303/CET1870039",
language = "English",
volume = "70",
pages = "229--234",
journal = "Chemical Engineering Transactions",
issn = "1974-9791",
publisher = "AIDIC-Italian Association of Chemical Engineering",

}

TY - JOUR

T1 - Developing sustainability index for Malaysian palm oil industry with fuzzy analytic network process

AU - Ngan, Sue Lin

AU - Promentille, Michael Angelo B.

AU - Yatim, Puan

AU - Lam, Hon Loong

AU - Er, Ah Choy

PY - 2018/1/1

Y1 - 2018/1/1

N2 - As one of the world’s major exporters of crude palm oil, Malaysian palm oil industry plays a crucial role in the country’s economic development. The utilization of palm oil biomass residues into high value-added products also has grown tremendously in recent years and has significantly contributed to the country’s GDP. Despite obvious benefits to the country’s economy and welfare of its population, the oil palm industry also contributes to environmental degradation, both at the input and output sides of its activities. Therefore, it is imperative that the implementation of sustainable supply chain and green logistics practices should be considered within the industry. With increasing pressure from various stakeholders to act and report on sustainability best practices, a number of sustainability assessment tools have emerged and some of which are adopted by industry players to demonstrate their commitment to sustainable development. Sustainability indicators and composite index are increasingly recognized as a powerful tool for policy making and corporate communication in providing information on sustainability performance in areas such as environment, economy and society. The uncertain parameters are particularly noticeable in the palm oil industry since the demand and supply are very volatile, and there are many uncertain variables associated with the industry’s supply chain. The fuzzy analytical network process (FANP), a multi-criteria decision-making analysis tools that has been applied to problems in various industries is adopted in this work. A complex of relationships between economic, environmental and social performance indicators related to the oil palm industry is constructed as a network model. Pairwise judgements are then elicited from experts to derive priority weightages for every component in the sustainability model. Varying with traditional ANP, using fuzzy numbers for pairwise comparisons ratios allows the confidence level of the judgements to be quantified explicitly. Converged priority vector that captures the correlation and importance of named indicators is then converted to form the sustainability index. The sustainability index will provide a framework for best practices assessment for the oil palm industry and is likely to raise the performance and delivery of sustainability. Such a comprehensive index will also stimulate positive change within the industry, through both internal performance and external perception and image branding.

AB - As one of the world’s major exporters of crude palm oil, Malaysian palm oil industry plays a crucial role in the country’s economic development. The utilization of palm oil biomass residues into high value-added products also has grown tremendously in recent years and has significantly contributed to the country’s GDP. Despite obvious benefits to the country’s economy and welfare of its population, the oil palm industry also contributes to environmental degradation, both at the input and output sides of its activities. Therefore, it is imperative that the implementation of sustainable supply chain and green logistics practices should be considered within the industry. With increasing pressure from various stakeholders to act and report on sustainability best practices, a number of sustainability assessment tools have emerged and some of which are adopted by industry players to demonstrate their commitment to sustainable development. Sustainability indicators and composite index are increasingly recognized as a powerful tool for policy making and corporate communication in providing information on sustainability performance in areas such as environment, economy and society. The uncertain parameters are particularly noticeable in the palm oil industry since the demand and supply are very volatile, and there are many uncertain variables associated with the industry’s supply chain. The fuzzy analytical network process (FANP), a multi-criteria decision-making analysis tools that has been applied to problems in various industries is adopted in this work. A complex of relationships between economic, environmental and social performance indicators related to the oil palm industry is constructed as a network model. Pairwise judgements are then elicited from experts to derive priority weightages for every component in the sustainability model. Varying with traditional ANP, using fuzzy numbers for pairwise comparisons ratios allows the confidence level of the judgements to be quantified explicitly. Converged priority vector that captures the correlation and importance of named indicators is then converted to form the sustainability index. The sustainability index will provide a framework for best practices assessment for the oil palm industry and is likely to raise the performance and delivery of sustainability. Such a comprehensive index will also stimulate positive change within the industry, through both internal performance and external perception and image branding.

UR - http://www.scopus.com/inward/record.url?scp=85051334962&partnerID=8YFLogxK

UR - http://www.scopus.com/inward/citedby.url?scp=85051334962&partnerID=8YFLogxK

U2 - 10.3303/CET1870039

DO - 10.3303/CET1870039

M3 - Article

AN - SCOPUS:85051334962

VL - 70

SP - 229

EP - 234

JO - Chemical Engineering Transactions

JF - Chemical Engineering Transactions

SN - 1974-9791

ER -