What is EcoVadis?

EcoVadis stands as a global leader in sustainability ratings, evaluating over 130,000 companies across various industries. The EcoVadis rating system assesses corporate sustainability based on 21 criteria categorized into four key themes:

• Environmental Impact
• Labour and Human Rights
• Ethics
• Sustainable Procurement

With a robust methodology, EcoVadis provides a comprehensive picture of a company's sustainability practices and overall impact.

Why is the EcoVadis Rating Important?

In today’s business environment, sustainability is a crucial consideration for investors, customers, and partners. The EcoVadis rating serves as a vital benchmark, offering insights into a company's commitment to sustainable practices. A strong rating can enhance your company’s reputation, unlock new business opportunities, and attract investment by demonstrating your dedication to sustainability.

How to Obtain an EcoVadis Certification?

Achieving an EcoVadis rating involves a straightforward four-step process:

1. Register Online: Start by creating a company profile, including details about your business activities and contact information. This profile helps customize a specific questionnaire for your company.
2. Complete the Questionnaire: Answer the tailored questionnaire and upload relevant documents (such as certifications). The process is secure, confidential, and supported by a multilingual team.
3. Expert Analysis: EcoVadis analysts evaluate your responses and documents to create a Scorecard. This assessment is based on a thorough review of your sustainability management system.
4. Receive Your Rating: Access your Scorecard results online. Use these results to collaborate with customers, enhance your performance, and showcase your achievements.

Understanding the EcoVadis Methodology

The EcoVadis rating methodology focuses on evaluating the quality of a company's sustainability management across three primary pillars:

• Policies (25%): This includes the presence of formal sustainability policies, endorsements, and overall management commitment.
• Actions (40%): Measures, certifications, and the scope of your sustainability actions fall under this category.
• Results (35%): Reporting practices and results from the 360° Watch system are assessed here.

These pillars provide a structured approach to understanding and improving sustainability performance.

EcoVadis Medals: The New Rating System

EcoVadis awards medals based on your overall score, reflecting your performance compared to other companies evaluated in the past year. The updated medal thresholds, effective January 1, 2024, are as follows:

• Bronze: 56 Points
• Silver: 64 Points
• Gold: 72 Points
• Platinum: 80 Points

Note that a company must score at least 30 points in each of the four themes to be eligible for a medal.

EcoVadis and Supply Chain Sustainability

EcoVadis plays a significant role in improving supply chain sustainability. For buyers, it provides a means to evaluate suppliers' sustainability performance accurately and timely, helping identify more sustainable options or encourage improvements among current suppliers. Suppliers benefit by benchmarking their performance against competitors and gaining insights to enhance their sustainability efforts, thereby strengthening their market position.

Strategies to Enhance Your EcoVadis Score

To improve your EcoVadis rating, consider the following strategies:

• Capture KPIs and Targets: Document key performance indicators (KPIs) and sustainability targets related to all four themes. Ensure they are included in your sustainability report.
• Align with UN SDGs: Align your sustainability report and tracked KPIs with the United Nations Sustainable Development Goals (SDGs).
• Set SBTi Targets: Commit to Science-Based Targets Initiative (SBTi) targets to align your decarbonization efforts with reliable standards.
• Organize Documentation: Prioritize and organize your documents effectively. Ensure they are well-structured, include your company’s logo, and are signed by relevant stakeholders.
• Engage Suppliers: Implement a formal supply chain sustainability program and provide training on supplier codes of conduct and responsible procurement policies.

Final Thoughts

Navigating the updated EcoVadis rating system is crucial for businesses dedicated to sustainability. By understanding the new criteria and proactively enhancing your sustainability practices, you can improve your rating, build investor confidence, and boost customer trust.

For expert guidance on optimizing your EcoVadis score and implementing effective sustainability practices, consider leveraging industry-specific modules and services. By adopting these strategies and focusing on key areas like ESG reporting, carbon management, and sustainability benchmarks, you can elevate your company's sustainability profile and achieve a higher EcoVadis rating.