ECOVADIS

EcoVadis is a global leader in sustainability ratings, specifically designed for businesses to assess their performance in critical areas regarding environmental, social, and governance (ESG) criteria.

EcoVadis’ methodology precisely evaluates a company’s policies, actions, and measurable outcomes to provide an in-depth analysis of its ESG performance. Thanks to EcoVadis sustainability ratings, companies can now access an independent and transparent evaluation of their approach to managing sustainability-related risks and opportunities.

This rating process is structured around four key themes:

• Environment and carbon management;
• Labour & human rights;
• Ethics and anti-corruption;
• Sustainable procurement.

Following these four themes, businesses can understand their ‘general’ rating and rating in each category. This simplifies the identification of improvement areas and optimises corporate sustainability strategies in the long run.

How does the EcoVadis rating work?

The EcoVadis rating process begins with a detailed evaluation of a company’s ESG performance.

How? Companies submit data through a questionnaire covering a wide range of ESG criteria. This information is then cross-referenced with publicly available reports and third-party sources to ensure accuracy and completeness, resulting in a reliable assessment of a company’s sustainability practices.

The scoring methodology used by EcoVadis ranges from 0 to 100 and can be split into four distinct levels:

• Scores between 0-25: Insufficient (red). It indicates that there is a significant need for improvement;
• Scores between 26-50: Moderate (orange). They reflect an average performance with room for growth;
• Scores between 51-75: Good (yellow). They asses solid sustainability practices;
• Scores between 76-100: Advanced (green). These scores represent the best-in-class performance.

Accordingly, EcoVadis scores are calculated by assessing a company’s performance across various ESG criteria.

The final score is then determined by evaluating the company’s policies, implementation, and measurable results.

The EcoVadis assessment is a valuable opportunity for businesses to gain a clear, structured view of their sustainability performance. Here are a few key steps to keep in mind to approach the process with confidence and clarity :

• Step 1: Submit your ESG data. The process begins with a detailed questionnaire provided by EcoVadis, requiring businesses to submit comprehensive information about their ESG practices, including policies, initiatives, and performance data;
• Step 2: Have your data reviewed. Once submitted, EcoVadis analysts review the data for accuracy. It means that they cross-check the company’s responses with external sources, such as publicly available reports and third-party data, to verify that the information is reliable;
• Step 3: Undergo the ESG assessment. The reviewed data is then assessed against EcoVadis’ established ESG criteria, companies being evaluated on their environmental impact, social responsibility, and governance practices;
• Step 4: Receive your final rating. After completing the assessment, a final rating from 0 to 100 is generated. Companies are placed into one of four categories, from Insufficient to Advanced, depending on their score;
• Step 5: Get detailed feedback. Companies usually receive a detailed feedback report with their final rating, which allows them to learn more about their strengths and to identify specific areas where they can improve their sustainability practices;
• Step 6: Focus on continuous improvement. EcoVadis encourages companies to use the feedback to optimise their ESG strategies and even resubmit for reassessment to boost their future score.

EcoVadis Medals and Badges recognize eligible companies that have completed the EcoVadis assessment process and demonstrated a relatively strong management system that addresses sustainability criteria.

An EcoVadis medal or badge is an acknowledgement of achievement relative to other assessed companies across the EcoVadis database.