In the current global marketplace, sustainability is not just a trend but a necessity. As companies worldwide strive to align their operations with sustainable practices, EcoVadis stands out as a beacon guiding them towards a greener future. Founded in 2007, EcoVadis has become the world’s largest and most trusted provider of business sustainability ratings.

What is EcoVadis?

EcoVadis is a global cloud-based platform offering holistic sustainability ratings for businesses. It examines various non-financial management systems, including environmental impacts, labour & human rights, ethics, and sustainable procurement. The assessments conducted by the company generate straightforward scorecards that offer ratings from zero to one hundred, as well as medal rankings (bronze, silver, gold) when applicable. These scorecards deliver a transparent insight into a company’s performance in sustainability while also indicating its strong points and potential areas of enhancement.

The Journey of EcoVadis

Since its inception in Paris, EcoVadis has experienced substantial growth in terms of its reach and team. By 2022, it had rated over 100,000 companies, marking a significant milestone in its journey. The growth of their team has been equally impressive, reaching 1,000 employees by 2021. EcoVadis’ journey has also seen the introduction of new features and services, such as the Carbon Action Module, EcoVadis Academy, and the IQ solution, which will have screened 500,000 companies by 2022.

Mission, Vision, and Purpose of EcoVadis

EcoVadis functions with a distinct mission, vision, and objective that direct its undertakings. It aims to steer all businesses towards ecological sustainability. The envisaged future is a universal marketplace in which sustainability intelligence sways every business choice, aiming to improve economies, enhance people’s lives, and benefit the environment. EcoVadis is committed to delivering trusted and globally acknowledged sustainability ratings and insights, empowering all companies to mitigate risk, stimulate progress, and expedite their beneficial impact on our world and society.

Step-by-step process of EcoVadis Ratings

The EcoVadis rating is an assessment process conducted by EcoVadis, a company specializing in assessing environmental, social, and governance (ESG) risks within supply chains. It uses a unique rating methodology that evaluates how well a company integrates sustainability principles into their business and management system. This assessment process takes place in four stages:

Registration on the EcoVadis website:

The first step in the process is for the client to register on the EcoVadis website. This involves creating a company profile specifying the business activity and contact information.

Questionnaire:

After registration, a tailored questionnaire is sent to the client. This questionnaire is built according to the company sector, size, and country. It can be conducted in eight languages, and the submitted documents can be in various languages.

Expert analysis:

Once the questionnaire is filled out, EcoVadis ESG experts will assess the answers and the supporting documentation. This stage involves a 360° Watch Finding, which combines artificial intelligence and human analysis to augment company-provided information with external resources such as media reports and NGO findings. This process takes approximately 6 to 8 weeks.

Results:

The final step is the results. Once the experts have analyzed the answers, the results are published on the platform, and the company is notified via email.

This process helps to provide an in-depth understanding of a company’s ESG performance, and procurement executives can then use the rating to assess the sustainability credentials of their suppliers.

Benefits of EcoVadis Ratings

EcoVadis’ services offer significant benefits for both rated companies and those that request assessments from their trading partners. The EcoVadis platform helps rated companies understand their sustainability performance, compare it against industry benchmarks, and share it with multiple trading partners. It allows them to take action on improvement areas and embark on a continuous improvement journey with annual reassessments.

For companies requesting assessments from their trading partners, EcoVadis provides a tool to monitor their partners’ sustainability performance and manage associated risks. It also promotes transparency in sustainability practices and provides practical insights into key sustainability issues applicable to different industries.

Financial Milestones

Over the years, EcoVadis has gained substantial financial backing, evident in the 500M€ funding it received from General Atlantic and Astorg in 2022. However, while such milestones are crucial, EcoVadis remains primarily committed to fostering sustainability in the global business landscape.

Conclusion

EcoVadis is undoubtedly at the forefront of promoting sustainable business practices, providing companies with a clear roadmap to improve their sustainability performance. As we move towards a future where sustainability becomes an integral part of every business decision, the role of EcoVadis becomes even more critical. With its robust platform, detailed ratings, and commitment to sustainability, EcoVadis is poised to continue leading the way in business sustainability ratings.