Assessing the Sustainability Performance of Indian Manufacturing SMEs with an Interval Valued Fuzzy Framework

Small and medium enterprises (SMEs) play a key role in the economic growth of any country, but measuring their sustainability performance is a complex process because of the uncertain nature of sustainability indicators, the huge waste generated by SMEs, and dependence of SMEs on poorly recorded information. Pressure from various stakeholders and the benefits of measuring the sustainability performance of SMEs encourage them to measure and report the sustainability performance. Sustainability indicators are identified using the Triple Bottom Line (TBL) framework with a comprehensive look at environmental, economic, and social factors that affect an organization's sustainability. Identified indicators are statistically validated by performing the Mann-Whitney test associating the importance and applicability of these indicators. The interval-valued fuzzy inference system (IVFIS) has been employed successfully to manage the multi-dimensional attributes of sustainability indicators. A case study of an Indian SME illustrates how well the model works to assess sustainability performance and identify what makes it successful. It will guide the SMEs in assessing the environmental impact of their current practices and recommend ways in which they can change their processes to reduce waste in the future. The research will help policymakers, regulators, and SMEs to take smart practical steps in assessing and reducing the impact of current practices on environment and achieve sustainability goals like SDG 12 (Responsible Consumption and Production) and SDG 13 (Climate Action) across their operations and positively contribute to overall sustainability goals. This assessment of environmental impact and reduction in a waste generation by Indian SMEs will substantially improve the products and processes performance, subsequently leading to better ecological sustainability.