Corporate Sustainability: a Technical Rehearsal for the Construction of a Composite Index

This study outlines a framework for constructing composite indexes to assess corporate sustainability, linking theoretical concepts to measurable variables. Key considerations include defining a theoretical framework, selecting variables, normalizing indicators, and aggregating the selected indicators. During the aggregation phase, the hierarchy is taken into account and discussed applying Ultrametric Composite Indicator models. This is a promising solution for enhancing the dimensionality reduction, including a phase of hierarchy testing, and it also aim to obtain an interpretable sustainability assessment.