EcoVadis – everything you need to know
Sustainability. There is no hiding from it now. Whatever your business type or size, you’re sure to have grappled with it, regardless of your interpretation of the word. A sustainability rating is a systematic review of a company’s management of economic, environmental, and social performance. And there is no denying it’s a real balancing act. We’ve explored the EcoVadis rating system, outlining how it assesses sustainability performance and what the report means for businesses.
With increasing sustainability regulations, consumer awareness and climate disasters, understanding a company’s true performance will help attract investors who are looking to secure long-term investments, and futureproof any business. Measuring the gap between values stated and true objectives provides insight into performance, forming a crucial part of any business strategy and enabling continuous development. But, there is no point in marking your own homework right? This is where sustainability rating agencies come in.
What is EcoVadis?
A quick internet search with ‘sustainability ratings’ or ‘ESG scorecards’ will provide you with a plethora of different options, suited to different needs. The one most commonly used by our clients is EcoVadis. The sustainability ratings agency helps thousands of businesses worldwide to undergo assessments with scorecards provided to track and measure performance across 4 key themes:
- Environment
- Labour & human rights
- Ethics
- Sustainable procurement.
EcoVadis also questions business climate strategies, asking for in-depth information about commitment, actions, and reporting. This provides a separate Carbon Scorecard for companies, with the same strength and improvement area insights.
The assessment
The process is relatively straightforward. After registration, companies are required to undertake an assessment that is tailored specifically to them. The assessment is very comprehensive requiring detailed answers and supporting evidence or certifications. EcoVadis then analyses the questionnaire answers and creates a scorecard in each of the areas from their points system. Their methodology is built on international sustainability standards, such as the UN Global Compact, The GRI, and ISO standards. The scores provided are only valid for 12 months. After this date, the scores will remain, but companies are not able to share the results unless they reassess, driving continuous improvement.
The assessment report
Once you’ve undergone the assessment, EcoVadis provides you with a score out of 100, as well as identifying the strengths and areas for improvement in each theme. These assessment reports are incredibly useful for painting a clear picture of a company’s sustainability performance. It also provides benchmarks against other companies in the industry and can help simplify procurement processes and remove audit fatigue. Many companies rely on their EcoVadis assessment report to respond to customer questionnaires, as it is detailed, robust and well-recognised. Once results are published, companies can then share their report with other companies in their supply chain network. EcoVadis also provides award medals (bronze, silver, gold and platinum) to companies when they reach certain scores, meaning companies can easily set themselves apart depending on their score successes.
We’re so proud that two of our clients currently hold EcoVadis rating medals. Jaggaer has an impressive Bronze rating for 2022 – a 12-point improvement from their previous year pushing them into the top 15% of similar firms in terms of their sustainability performance. Another long-standing client have maintained their Platinum medal for the 4th year in a row. This impressive assessment scores put them in the top 1% of companies assessed by EcoVadis.
Regardless of which rating agency you choose, they play a valuable role in helping businesses navigate the sustainability landscape. They drive transparency, continuous improvement, and third-party credibility. Make sure you choose a rating provider that has a robust methodology and aligns with global initiatives. Whether you are just starting to think about sustainability, or you’re looking to improve your scores – we can help set you up for sustainability rating success.
