The scoring scale includes five sustainability performance levels:
- Outstanding (score 85-100);
- Advanced (score 65-84);
- Good (score 45-64);
- Partial (score 25-44);
- Insufficient (score 0-24).
Each of the levels can be associated with an opportunity or a risk for both assessed trading partner and requesting company.
For instance, a score of >85 points (Outstanding) indicates a very high level of sustainability maturity including:
- a structured and proactive sustainability approach;
- policies and tangible actions on all topics;
- advanced sustainability reporting on actions and KPIs;
- innovative practices and external recognition.
The advanced sustainability maturity of your trading partner bares rich opportunities for collaboration on product/service innovation, market differentiation and value creation beneficial to all parties.
On the other hand, a score of <25 points (Insufficient) reveals potential risks for business partners. A poor score can reveal e.g.:
- a lack of sustainability engagements and absence of measurable actions;
- evidence of cases of misconduct (e.g. pollution, corruption).
The impact on business partners can be severe including failure to comply with regulations, negative brand reputation, supply disruption, etc.
This video gives step-by-step instructions to reading a scorecard from your supplier or trading partner.