Sustainability is a key performance metric for modern businesses. This applies to their own footprint and their supply chain. Therefore, EcoVadis provides enterprise-class solutions. These are designed to help organisations. Specifically, they help them understand and monitor supply chain sustainability.
Here’s what you need to know.
What is EcoVadis?
Firstly, EcoVadis is provided as a cloud-based SaaS platform. It is featured on TechRadar by Devoteam. Essentially, it is a massive database. This database contains holistic sustainability ratings of companies. Moreover, the system has ratings for 90,000 companies. These span 175 countries and 200 industries.
Each listed company receives a scorecard. This scorecard has performance ratings. Factors include environmental, labour & human rights, ethics, and sustainable procurement. Furthermore, each factor has a value of zero to one hundred. Bronze, silver, platinum and gold medals are awarded to the highest performers.
Purchasing managers typically use the database. They use it to assess the sustainability performance of potential providers and partners. In this way, EcoVadis provides a simple way to perform due diligence. It ensures that purchases align with the corporate CSR strategy.
How popular is EcoVadis?
According to 2022 figures, more than 750 multinational companies use the EcoVadis system. They use it to manage risks, reduce costs, and drive innovation and new revenue. Over 47,000 procurement and sustainability professionals rely on the system. They use it to assess and monitor the CSR performance of their suppliers and business partners.
Additionally, EcoVadis lists dozens of certified partners. These partners provide technology integration and training services to customers across the world.
How does EcoVadis work?
The EcoVadis scorecard serves two purposes. Firstly, it provides a benchmark for organisations. This allows them to measure their sustainability performance against competitors. Secondly, the scorecard allows organisations to pinpoint potential trading partners. These partners share their sustainability goals.
Any business can register with EcoVadis. They submit a questionnaire and documentary proof. The EcoVadis platform reviews each submission. An analyst then manually reassesses the evidence and responses. After a review period, the business receives a sustainability rating. This rating adheres to internationally recognised standards.
The questionnaire has up to 200 questions. Smaller companies answer fewer questions. It is customised to industry, organisation size, and country. Furthermore, it is updated annually to reflect changes in local laws.
What are the top 5 benefits of EcoVadis?
Ultimately, EcoVadis helps businesses achieve their sustainability targets. It provides actionable insights into current performance. The top five benefits include industry standard ratings, actionable benchmarks, trackable progress, public benchmarking, and sustainable supply chain building.
1. Accurate, reliable sustainability ratings
The EcoVadis scorecard uses international standards. These generate a sustainability rating. Any company completing the questionnaire can be assured of an accurate rating. Importantly, all data is manually verified by analysts. This prevents manipulation of the system.
2. Actionable benchmarks
The EcoVadis scorecard provides ratings (0-100) across four themes. The scorecard identifies current strengths and areas for improvement. It offers actionable insights for increasing scores and sustainability.
The EcoVadis rating provides a basis for the PDCA (plan, do, check, act) process. Continuous improvement programmes require quantitative metrics. These are necessary to understand, plan, and execute enhancements.
3. Trackable progress
Organisations can take steps to improve sustainability. They can use recommendations from their scorecard. By resubmitting the questionnaire, they can measure the effects of their improvement programmes. Quantitative metrics provide important proof for CSR KPIs.
4. Public benchmarking
Businesses can publicly demonstrate their commitment to sustainability. This is particularly useful for companies awarded medals for high ratings. They can showcase their achievements to potential partners and customers.
The EcoVadis scorecard allows any organisation to understand their sustainability position. It helps potential clients identify who they want to do business with. As ESG becomes increasingly important for investment decisions, many investors are demanding EcoVadis scores.
5. Sustainable supply chain building
EcoVadis makes it easy for organisations to identify suppliers. These suppliers share their ESG values. By partnering with high-scoring providers, organisations can improve their supply chain sustainability. This helps reduce the carbon footprint of their operations. Businesses can simplify their purchasing processes due to the standardised scorecards.
Why would an organisation use EcoVadis?
EcoVadis provides sustainability insights that cross business units and functions. This allows teams to set common goals and work together. Improving sustainability can be a massive undertaking. However, with EcoVadis, teams can stay focused on tasks and measure progress. This proves to stakeholders that they are serious about their ESG obligations.
Currently, the average EcoVadis score is 47/100. This indicates that most organisations have work to do to become truly sustainable. For this reason, EcoVadis has partnered with Nexio Projects. They provide officially-approved assistance to their client base.
EcoVadis has been adopted by thousands of organisations across the world. This is thanks to its functionality, flexibility and ease of use. Following up on this success, they have released CyberVadis. This platform provides standardised cybersecurity benchmarking and reporting.
Sustainability is a key performance metric for modern businesses, both in terms of their own footprint and the rest of the supply chain. EcoVadis provides enterprise-class solutions designed to help organisations better understand and monitor supply chain sustainability.
This is what you need to know.
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