The benefits of implementing sustainable procurement are manifold: Reduce the risk of supply chain disruption, protect brands and company reputation, lower costs through collaborative actions (e.g., reduction of energy consumption), facilitate access to capital, and increase valuation (e.g., integration of ESG factors in investment decisions) and provide market advantage when consumers demand a green and responsible supply chain.
The EcoVadis solution addresses these issues by providing web-based collaboration tools for businesses, which allow procurement executives to get access to easy-to-use, dynamic scorecards and monitor the sustainability performance of their trading partners as well as their continuous improvement actions.
- What are the key foundations of the EcoVadis Methodology?
- Are EcoVadis assessments customized to companies?
- How does EcoVadis maintain assessment integrity and quality?
- How do I view the full methodology document?
What are the key foundations of the EcoVadis Methodology?
The EcoVadis rating methodology aims to measure the quality of a company’s sustainability management system through 3 management pillars: Policies, Actions, and Results.
These three management pillars are separated into seven management indicators: Policies (POLI), Endorsements (ENDO), Measures (MESU), Certifications (CERT), Coverage – Deployment of Actions (COVE), Reporting (REPO) and 360° Watch Findings (360).
Are EcoVadis assessments customized to companies?
To fully understand a company’s real impacts, the assessment framework is customized for each company according to its activity, size, and location of its operations. These are defined upfront during company registration on the EcoVadis ratings platform and will shape the questionnaire received.
Furthermore, EcoVadis has defined 21 sustainability criteria based on international Sustainable Development standards. Among these 21 criteria, EcoVadis selects the relevant ones for your company. This is based on your activity's specific challenges and your geographical location (do you have activities in risk countries?).
To see which criteria are activated for your evaluation and what is their level of importance, connect to your Industry Risk Profile on your EcoVadis platform.
EcoVadis employs strict and well-developed scoring guidelines applied to each assessment by expert analysts. The score allows companies to benchmark against their industry peer, but it also helps situate the company’s overall sustainability performance in absolute terms.
In addition to scoring, strengths and improvement areas are highlighted for each theme on the EcoVadis Scorecard. Strengths reflect valuable sustainability practices demonstrated by
rated companies, while improvement areas, indicate areas for corrective action implementation. Each improvement area has a suggested priority level for a potential corrective action plan.
How does EcoVadis maintain assessment integrity and quality?
Maintaining the highest level of quality involves a robust quality management plan to support our business processes, ensuring the security of rated company documents, and continuously improving internal processes and methodology development. There are seven key elements to the EcoVadis quality management system:
Traceability & Confidentiality
The IT system not only allows rigorous process traceability but also keeps all the answers and documents provided by the supplier strictly confidential. No information is shared without a previous agreement from the supplier.
Formalization and maintenance of organizational processes, procedures, work instructions and methods are crucial for supporting the Quality Policy, collecting feedback and monitoring the overall Quality Assurance.
Quality Check Forms
Quality Check Forms are issued at each stage of the assessment process and are used to identify quality issues, define training and decide on internal corrective actions.
Continuous Improvement Process
The Methodology Committee meets quarterly to regularly review and update the assessment methodology to reflect best practices and the latest sustainability standards.
Continuous training is provided to analysts to ensure they remain up-to-date on methodology requirements and evolving sustainability standards.
EcoVadis has a formal company inquiry process, enabling rated companies to submit inquiries about their scorecards. All inquiries are responded to in writing by the Analyst Team.
An external committee, including international sustainability and sustainable procurement experts, regularly reviews the assessment process and scoring methodology.
How do I view the full methodology document?
For an in-depth breakdown of the EcoVadis methodology, please check our EcoVadis Ratings Methodology Overview and Principles.