In an era increasingly focused on sustainability and corporate social responsibility, EcoVadis provides a global evaluation system that enables companies to measure and enhance their environmental and social performance. Today, we will delve into what EcoVadis is and how it helps businesses showcase their sustainability efforts in the global market.

What is EcoVadis?

EcoVadis is a global provider of sustainability ratings, intelligence, and tools. It offers an online rating platform that allows companies to assess the sustainability performance of various stages in their supply chain and improve accordingly. The customized questionnaire from EcoVadis covers four major themes and 21 sustainability criteria:

• Environment: Evaluates the company's performance in greenhouse gas emissions, energy use, water management, etc.
• Labor and Human Rights: Focuses on labor policies, working conditions, health and safety, etc.
• Ethics: Involves issues such as anti-corruption, fair competition, and supply chain transparency.
• Sustainable Procurement: Assesses sustainable practices in the procurement process, including supplier selection and management.

EcoVadis uses a scorecard system, providing a score between 0 and 100 based on the company's performance in these four areas. This score not only helps companies understand their strengths and weaknesses but also allows customers and partners to quickly identify the most sustainable suppliers.

The assessment considers the company's policies, processes, actions, and outcomes. Evaluation metrics cover multiple areas, such as energy and carbon footprint, water resource management, waste handling, employee rights and benefits, respect for human rights, anti-corruption, etc.

How Does the EcoVadis Rating Process Work?

To undergo an EcoVadis assessment, companies need to follow a simple four-step process:

1. EcoVadis Registration: Start the process through the registration page. Companies need to share information about their size, name, industry, and location. EcoVadis then creates a customized questionnaire and determines the assessment pricing.
2. EcoVadis Questionnaire: Once the registration is accepted and processed, the company will be notified to start filling out the customized questionnaire. After completing the questionnaire, supporting documents must be provided. Finally, choose a subscription plan and provide payment information. The company will need to share data across 21 sustainability indicators, divided into four key themes:
   • Environment: Evaluates the company's environmental impact, including energy consumption, emissions, and waste management.
   • Labor and Human Rights: Reviews labor and human rights practices, including health and safety, working conditions, and diversity.
   • Ethics: Focuses on business ethics, such as corruption, bribery, and anti-competitive behavior.
   • Sustainable Procurement: Assesses the sustainability of the company's procurement of goods and services.
3. EcoVadis Expert Analysis: EcoVadis sustainability experts spend 6-8 weeks reviewing the questionnaire answers and supporting evidence, using methods based on international standards like the Global Reporting Initiative (GRI), ISO26000, and the United Nations Global Compact.
4. EcoVadis Results: When the scorecard on the EcoVadis platform is available, the company will be notified. If they were invited by a client to complete the assessment, they will also be notified and receive a copy of the scorecard. The scorecard is valid for twelve months, after which the company needs to be reassessed.

Why Is the EcoVadis Rating Important?

EcoVadis ratings play a crucial role in supply chain sustainability management. They allow buyers to evaluate the sustainability risks of suppliers by sending customized questionnaires, thereby improving procurement practices. This assessment helps companies reduce carbon emissions, human rights issues, and waste in the global supply chain. Studies show that sustainable supply chains can significantly lower costs and enhance brand image. EcoVadis's extensive experience can help buyers and suppliers effectively improve and benchmark their ESG performance, gaining a competitive edge in the market.

EcoVadis 2024 Medal and Badge Evaluation Latest Standards

Companies can expect to receive their EcoVadis scores 6-8 weeks after submitting the questionnaire. The EcoVadis score (0-100) reflects the quality of the company's CSR management system at the time of assessment. EcoVadis regularly reviews the qualification standards for medals and badges.

Medal Evaluation:

The percentage ranking is calculated based on all industries and all companies, not just those within the organization's industry. The trend is that medals are becoming harder to obtain each year, indicating that companies are placing greater emphasis on ESG management and improvement.

Please Note:

• Medal eligibility is based on the release date of the questionnaire, not the submission date. The release date determines the year of the medal eligibility rules and the date when the medal is awarded.
• For any questionnaires submitted on or after October 15, 2024, the scorecard may be published in 2025. The medal or badge will indicate the month and year of the scorecard publication.

Badge Evaluation:

Aside from ranking requirements, companies must also meet restrictions related to 360° negative observations. Specifically, if a company ranks in the top 35% by percentage but has at least one theme scored =0 or at least two themes scored =25 in the 360° observation indicators, failing to meet the 360° observation standards, the company may qualify for a Commitment Badge rather than a medal.

Differences Between EcoVadis and CDP

CDP and EcoVadis are common rating tools used by companies to assess their sustainability performance and request sustainability information from suppliers.

For more information about CDP, please visit: https://mp.weixin.qq.com/s/aqwJjs-7wZi7lv7LxH8lKw

They differ in several key aspects, including:

Therefore, companies can choose the appropriate rating platform based on their focus on climate metrics, stakeholder engagement needs, company size and scope, specific client requirements, and resource allocation capabilities. EcoVadis has partnered with CDP to jointly accelerate large-scale decarbonization. Currently, the proportion of carbon-related questions in the questionnaire has increased. Additionally, EcoVadis's Sustainability Intelligence Suite includes the Carbon Action Module (CAM), aimed at helping companies build climate action capabilities, particularly for large-scale Scope 3 decarbonization.

How to Improve Your EcoVadis Sustainability Rating?

If a company receives an EcoVadis medal below its target or does not receive a medal (score below 50%), EcoVadis gives 12 months to take measures to improve the rating. Companies can typically follow these five simple steps to improve their score:

1. Conduct a Gap Analysis

Review the existing EcoVadis scorecard and corrective action plans in the four main themes: Environment, Labor and Human Rights, Ethics, and Sustainable Procurement. If the company has not yet received an EcoVadis rating, perform a materiality assessment to identify key ESG issues critical to the company's development.

2. Create an Action Plan

Based on the results of the gap analysis or materiality assessment, develop a comprehensive action plan. Prioritize actions that have the most significant impact on the company's score, assign tasks to specific teams or individuals, and set achievable deadlines.

3. Compile Supporting Documents

EcoVadis places great importance on proper documentation. Collect all relevant supporting documents for the company's sustainability and social responsibility initiatives, including policies, evidence of initiatives, and compliance records. The document limit is 55.

4. Monitor and Measure Progress

Regularly evaluate company performance through analysis and internal audits, and continuously optimize based on EcoVadis results.

In today's increasingly competitive global environment, EcoVadis provides a platform for companies to showcase their social responsibility and environmental performance. Participating in EcoVadis assessments helps companies clearly identify their strengths and weaknesses in environmental, social, and governance dimensions, enabling them to adopt effective optimization strategies and promote long-term healthy growth. Carbonstop, as an EcoVadis-approved training partner, is dedicated to helping companies improve their sustainability performance and achieve long-term sustainable development goals on the EcoVadis platform.