What is sustainability risk? How does EcoVadis Vitals help me identify it?

Sustainability risk refers to an event's probability of negatively impacting the environment, employees, communities, and society. 

Every company is naturally exposed to such a risk. Sustainability risk may vary depending on the company’s industry and location. For example, manufacturing, mining, and agricultural sectors are more likely to impact the soil negatively than office services. However, some risks apply to all companies. This includes child and forced labor, payment of at least minimum wage, or equal treatment of employees.

What can my company do to reduce sustainability risk?

Your company can reduce sustainability risk by taking active steps to prevent adverse events. For example, training employees on discrimination and harassment may prevent unequal treatment of employees. Similarly, building infrastructure to recycle water may prevent excessive water pollution. 

Another way to reduce risk is to set up control mechanisms through management systems. These management systems are composed of policies, measures, and reporting. Examples include environmental policy, code of ethics, or labor and human rights certificates such as ISO 45001.

How does EcoVadis Vitals identify sustainability risk?

The EcoVadis Vitals questionnaire contains basic questions on sustainability topics of Environment, Labor and Human Rights, and Ethics. It also checks the fundamental steps you may have taken to prevent negative events. Based on your answers, we will provide you with the company-specific sustainability risk you are exposed to.