Overview
Introduced: 2007
Effective from: Ongoing
Region(s): Global
About
EcoVadis provides sustainability ratings and performance improvement tools for global supply chains. Their methodology evaluates companies’ CSR management systems based on policies, actions, and results across 21 sustainability criteria. These criteria cover environmental, social, ethical, and sustainable procurement practices, aligning with international standards like the UN Global Compact, ISO 26000, and the Global Reporting Initiative (GRI).
EcoVadis aims to support companies in mitigating risk, protecting their brand reputation, and fostering transparency in their supply chain through an easy-to-use, dynamic scorecard system.
Criteria for compliance
Entities covered
- Companies of all sizes and sectors, with specific evaluations customized by sector, geographic region, and company size.
- Assessments include a review of policies, endorsements, actions taken (e.g., training or certifications), and reporting of results across sustainability criteria such as labor practices, human rights, and environmental management
Key management indicators
- Policies: Evaluates company’s policies and governance, including objectives, targets, and external CSR endorsements.
- Actions: Reviews the tangible actions implemented, such as certifications, audits, or training programs.
- Results: Measures the quality of reporting and coverage of sustainability actions across the company, backed by evidence and 360° stakeholder feedback.
Compliance timelines
- Companies are expected to continuously monitor and improve their sustainability performance.
- The dynamic scorecards are updated regularly, reflecting the latest improvements or challenges.
Disclosure requirements
EcoVadis ratings are based on supporting documents provided by companies, external data sources, and stakeholder feedback. Companies are assessed on their ability to maintain compliance with CSR standards, reduce environmental impacts, and address ethical concerns. Scorecards highlight strengths and areas for improvement, offering companies a path toward continuous development.
Third-party auditing
The rating process is evidence-based, requiring formal documentation such as CSR reports, policies, certifications, and third-party audit results. EcoVadis integrates external data from organizations like CDP and Dow Jones Risk Compliance Database to ensure a comprehensive and unbiased assessment.
Penalties for non-compliance
There are no direct penalties from EcoVadis, but poor performance or lack of improvement can lead to a lower score, affecting a company’s reputation, business opportunities, and relationships with customers and partners. Continuous improvement is encouraged, and companies are provided with corrective action plans to address areas of concern.
