The EcoVadis carbon rating is focused on assessing the rated company’s carbon management system. Centered around the Plan Do Check Act (PDCA) Cycle, a management system is evaluated according to the following management stages:
- Commitment: To assess a company’s commitment, we look into reduction targets for companies of all sizes and, for companies with over 1,000 employees only, into action plans for a low-carbon transformation as well as into governance structures to facilitate carbon action;
- Action: To assess a company’s action, we consider actions regarding scope 1 and 2 emissions for companies of all sizes and, for companies with over 1,000 employees only, into actions regarding scope 3 emissions.
- Reporting: To assess a company’s reporting, we assess reporting on scope 1 and 2 emissions, performance reviews towards target achievement, monitoring systems for data collection and tracking, and monitoring coverage across the organization, for companies of all sizes. For companies with over 1,000 employees, we additionally assess reporting on scope 3 emissions, as well as supply chain monitoring.
The three management stages, each scored individually according to the components reflected in the rated company’s carbon management system, comprise a final score. The carbon score is a weighted average across management stages, based on the following weights:
- Commitment: 25%
- Action: 25%
- Reporting: 50%
The scoring methodology is aligned with the industry-leading standard of the GHG Protocol, and reflects the importance of both reporting and monitoring, which are part of the reporting stage in EcoVadis’ carbon methodology. To receive credit for any commitment, action, or reporting, relevant questionnaire declarations must be substantiated through supporting evidence.