EcoVadis is a globally recognized assessment platform that evaluates and rates the sustainability performance of businesses across various industries. Founded in 2007, EcoVadis focuses on four key categories: environmental impact, labour and human rights, ethics, and sustainable procurement practices. 

The platform provides companies with a score ranging from zero to 100 based on a comprehensive assessment that includes self-reported data and external verification by sustainability experts. With over 130,000 companies rated in more than 180 countries, EcoVadis serves as a critical tool for organisations seeking to manage ESG risks, comply with regulations, and enhance their corporate sustainability strategies. 

Its assessments help businesses benchmark their sustainability performance against industry peers and drive improvements throughout their supply chains, ultimately promoting responsible and ethical business practices

The EcoVadis rating matters for several reasons, primarily due to its role in enhancing transparency and accountability in sustainability practices. As businesses increasingly face pressure from consumers and partners for responsible operations, an EcoVadis rating serves as a credible benchmark for evaluating a company's environmental, social, and governance (ESG) performance across four key areas: Environment, Labour & Human Rights, Ethics, and Sustainable Procurement.

A strong rating can positively influence purchasing decisions, as 91% of companies consider sustainability criteria when selecting suppliers. Furthermore, EcoVadis provides a structured framework for organisations to identify strengths and areas for improvement, facilitating continuous enhancement of sustainability initiatives. By sharing their ratings, companies can foster trust with stakeholders and differentiate themselves in the marketplace, ultimately driving competitive advantage and aligning with global sustainability goals.

- Capture KPIs and targets: Ensure you capture KPIs and sustainability targets related to all the 4 themes - environment, labour & human rights, ethics and responsible procurement in your sustainability report.

- Sustainability report’s alignment with UN SDGs: Ensure you clearly align your sustainability report and the key KPIs you track with UN SDGs.

- Setting an SBTi target: Publicly committing to SBTi or Science-based Target Initiative is a great way to align your decarbonisation strategy to most reliable standards and build confidence with the Ecovadis team and other stakeholders.

- Manage documents well: Prioritise and organise documents effectively, focusing on areas needing improvement. Ensure all the documents have your company’s logo and the relevant stakeholder’s signature on it.

- Engage your suppliers: Running a formal supply chain sustainability program with your suppliers is a great way to score will on the Responsible Procurement theme. Ensure that you conduct supplier training on Supplier CoC, Responsible Procurement policy etc. to bring alignment.

EcoVadis stands out among other ESG rating systems due to its unique focus on supply chain sustainability and its comprehensive assessment methodology. Unlike many ESG rating providers that primarily target institutional investors, EcoVadis is designed to help organisations evaluate the sustainability performance of their suppliers, making it particularly relevant for companies managing extensive supply chains. 

EcoVadis assesses companies based on a tailored questionnaire that covers four key areas: Environment, Labor & Human Rights, Ethics, and Sustainable Procurement, utilising international standards such as the UN Global Compact and ISO 26000 for its evaluation criteria.

Additionally, EcoVadis emphasises documentation analysis and verification by a diverse team of sustainability experts, enhancing the credibility of its assessments. In contrast, other ESG rating agencies may rely more heavily on publicly available information and less on direct supplier engagement, which can lead to inconsistencies in ratings.