This master thesis investigates the application of the Multi Criteria Decision Making Method – Entropy to develop a “ESG-Framework”, which enables a comparison between Green Building Certificates within the real estate sector. The increasing significance of sustainable investments following the principle of ESG (Environmental, Social and Governance) led to the introduction of sustainability ratings to the building sector. Rating Systems like LEED or DGNB, represent alongside other others the most common certificates. However, it is necessary to enable objective and reliable comparisons since the thematic focus of rating systems can vary. The primary objective of this research is to establish a framework that standardizes the evaluation process, enabling stakeholders to make informed decisions based on a comprehensive analysis of ESG factors within different green building rating systems. The study begins by assessing the origin and evolution of the term “ESG”. The impact and rele- vancy of ESG factors within the real estate sector is being discussed subsequently. A following review of the green building certifications introduces the most relevant certifications on the market. The following workflow involves a data collection at the beginning, followed by a standardization process, where indicators from different certifications are categorized under the idea of a uniform ESG framework. Different options on how to organise these indicators and the level of detail of the categorization are being discussed. After creating uniform input on basis of relevant rating systems this process is followed by the application of the MCDM method Entropy. The study gives inside on Multi Criteria Decision Making in general and gives an overview on different types of methods. A literature review shows examples of cases in which entropy has already been used and looks at the potential benefits of entropy. Entropy is later used to calculate the relative importance of each indicator of the rating systems. After implementing the calculation, the research highlights a sensitivity analysis regarding the Entropy Weighting Methods’ (EWM) results. These results indicate significant variations in the weightings of different indicators, reflecting the diverse focus areas of each certification system. It is questioned how reliable these results are, considering typical properties of Entropy and uncertainty within the data. As a result, the study also proposes adjustments to the standard EWM approach to address identified weaknesses, such as the presence of zero values and the disproportionate influence of criteria with high variance. These adjustments are aimed at improving the accuracy and reliability of the weighting process. Furthermore, the thesis explores the potential of integrating EWM with subjective decision-making tools like the Analytic Hierarchy Process (AHP). This hybrid approach leverages the objectivity of EWM and the subjective judgment of AHP, resulting in a more balanced and comprehensive analysis. Conclusion drawn from this research shows that the Entropy weighting method serves not com- pletely the given task due to its properties. However, it is a valuable tool to assess data and ana- lyse the behaviour of data sets. Insights drawn from EWM can be helpful and used for further assessment.     «

This master thesis investigates the application of the Multi Criteria Decision Making Method – Entropy to develop a “ESG-Framework”, which enables a comparison between Green Building Certificates within the real estate sector. The increasing significance of sustainable investments following the principle of ESG (Environmental, Social and Governance) led to the introduction of sustainability ratings to the building sector. Rating Systems like LEED or DGNB, represent alongside other others the mos...     »