Time Is Money: Transforming the EcoVadis Process for Modern Businesses

Year after year, businesses grapple with the intricate EcoVadis rating process — whether to meet customer demands or achieve strategic goals. The process is complex, time-intensive, and riddled with obstacles, including:

• Undefined responsibilities leading to inefficiencies
• Delays caused by lengthy approval cycles
• Non-transparent requirements for supporting evidence

Manual data preparation further compounds the issue, introducing errors and slowing progress.

This blog sheds light on the hidden costs of the EcoVadis questionnaire and offers actionable strategies to optimize the process and achieve better results.

The Hidden Costs of the EcoVadis Questionnaire

In today's business world, sustainability is no longer a nice-to-have, but a decisive competitive factor. EcoVadis has established itself as the leading standard for sustainability assessments — but behind the questionnaire lies a resource-intensive process that presents companies with enormous challenges every year.

The figures speak for themselves: Between 200 and 500 hours are invested by companies in the EcoVadis assessment process every year — with no guarantee of good results. This time expenditure is the result of a complex, multi-stage process:

1. Preparation of evidence (20-50 hours)

Companies are often faced with the challenge of identifying and correctly compiling the required evidence. Documents such as sustainability reports, work guidelines or supplier declarations are typically available in different formats or are outdated. There is also a lack of clear standards as to what is accepted and what is not. This leads to documents having to be revised or supplemented several times.

2. Collection of internal data (100-250 hours)

This step is particularly time-consuming, as information has to be obtained from departments such as purchasing, human resources or logistics. A typical problem is the lack of transparency about who has what information. This leads to lengthy queries and can be further delayed by parallel processes in the departments. In addition, the data is sometimes provided in different formats, which causes additional effort when merging.

3. Approval processes (30-75 hours)

When reviewing and approving the collected data, coordination difficulties can arise. Various stakeholders, such as department heads or external companies, need to be involved. Unclear responsibilities or overlapping responsibilities lead to delays. This process is often further slowed down by missing deadlines or a lack of prioritization.

4. Adjustments and optimization (30-75 hours)

Even after the data has been collected and released, it needs to be adjusted to meet the specific evaluation requirements of EcoVadis. Typical stumbling blocks here are incomplete or non-valid data, which must be subsequently supplemented, as well as misunderstandings about the exact evaluation requirements, which causes additional coordination requirements.

5. Preparation for submission (20-50 hours)

The final documents must be converted into a suitable format and uploaded to the EcoVadis portal in a structured manner. This can pose challenges, especially if information from different sources, such as Excel files, needs to be consolidated. It is necessary to convert this data into a document format that is suitable for EcoVadis and to ensure that the technical specifications, such as file sizes and formatting, are adhered to.

Why Is the Process So Complex?

The EcoVadis process is not just about gathering information but also about managing intricate workflows. Businesses often face:

• Tool Overload: Juggling multiple tools (e.g., SAP, Excel, Outlook) creates inefficiencies
• Coordination Delays: Cross-departmental communication relies on countless meetings, emails, and calls
• Manual Errors: Errors arise during manual KPI calculations and data updates
• Data Misalignment: Internal documentation often needs substantial adjustments to meet EcoVadis standards

Streamlining the EcoVadis Process

So, must the EcoVadis process be so demanding? The short answer: No.

A clear structure and the use of ESG software can make all the difference. One example is the AI-supported software Sunhat, which was specially developed to make the process of responding to ESG ratings such as EcoVadis or even CDP more efficient and at the same time increase the quality of the results.

How does ESG software support the EcoVadis process?

• Integrated process landscape instead of tool diversity:
  ESG software consolidates all the necessary functions on a single platform. Instead of switching between different Excel files and tools, all relevant information flows seamlessly together. This eliminates data silos and increases efficiency.
• Automated workflows instead of manual steps:
  Routine tasks such as obtaining information from different departments or checking for completeness and consistency can be automated using ESG software. This frees up valuable resources for strategic tasks.
• Past responses and data instead of annual reinvention:
  ESG software uses past responses to provide companies with a basis for the new EcoVadis questionnaire.
• Real-time collaboration instead of email ping-pong:
  Collaboration is revolutionized by integrated collaboration features. All participants work in a shared environment, track the status of tasks in real time, and can comment and approve directly — without time-consuming emails.
• Optimization of data quality:
  With functions such as gap analyses and access to templates and best practices, ESG software supports companies in sustainably improving their data quality. Structured workflows ensure traceable processes and minimize sources of error.

Sunhat goes beyond the general functions of ESG software by offering customized advice from experts. In addition to the standardized workflows and templates, companies benefit from an integrated quality check by experienced sustainability experts. This combination of automation and expert insight makes Sunhat a particularly powerful solution for the EcoVadis process.

Companies that answer the EcoVadis questionnaire with Sunhat can achieve an average of 8 to 11 additional points.

"We currently spend around 40 to 50% of our time on customer requests like EcoVadis. With Sunhat, we can improve efficiency by 25 to 30%, unlocking tremendous potential for my team."

Brian Nash
Vice President, Corporate Sustainability
Ingredion

Measurable Success: What does ESG Software Mean for Your Company?

Implementing ESG software like Sunhat leads to significant improvements that have a direct impact on your business:

• Time savings of up to 60%: What used to take 200-500 hours can be done in a fraction of the time with Sunhat.
• Higher rating results: With consistent data quality and more complete submissions, companies can achieve a better EcoVadis medal.
• Stress reduction for the team: The otherwise dreaded EcoVadis process becomes predictable and manageable.
• Knowledge retention despite staff changes: Knowledge, all documents and data remain in the software, not in the heads of individual employees.

Arrange a demo now and find out how Sunhat can help your sustainability team achieve greater efficiency and better rating results.