How does EcoVadis rate companies from industries with high environmental impacts?

The role of EcoVadis is to aggregate and analyze the sustainability information provided by rated companies (e.g., business partners, suppliers, portfolio companies, etc.) and communicate it to end users such as buyers and investors via sustainability rating. It gives companies actionable insights into their environmental, social and ethical risks.

The EcoVadis sustainability rating covers different industries, locations and company sizes which helps to contribute to business sustainability on a global scale. Our rating methodology was developed based on a "best-in-class" approach. This means we verify if the company reaches the best possible level for their business activity. For each industry category, we look at how the company integrates sustainability in every stage of their operations and their management systems. 

EcoVadis chose this approach rather than an “exclusion” approach as a way to drive impact at scale and to engage all business stakeholders towards a sustainable transition. Focusing only on industries and companies with positive impact would lead us to exclude and disengage a significant portion of our economy. Some EcoVadis customers, including from procurement functions, are often limited by their product specifications and do not always have a lot of leeway to exclude specific materials from their sourcing (it is not always possible to find sustainable alternatives compatible with product specifications). Our customers are therefore interested in comparing the sustainability performance of companies within a given industry category, including industries with high environmental impacts. As a result, companies from resource-intensive industries can still achieve a high score if they have an advanced management system on environmental, labor & human rights, ethics and sustainable procurement issues and have implemented means to minimize their negative impact. 

EcoVadis also awards medals based on the overall score of the rated company. EcoVadis Medal requirements have become more stringent to protect our reputation as a socially responsible actor. Starting January 2022, medals are restricted for companies operating in certain industries: manufacture of tobacco products, mining of coal and lignite, manufacture of weapons and ammunition, manufacture of air and spacecraft and related machinery. Check all eligibility criteria for EcoVadis Medals.

For more information, check EcoVadis Ratings Methodology Overview and Principles.