Latest update on December 4, 2024
In a Nutshell
- EcoVadis operates on a subscription model, providing yearly assessments to companies from different industries
- The scoring and medals system is designed to acknowledge a company's sustainability achievements relative to the other rated companies in the EcoVadis database
- With the use of ESG software, the reassessment process of the EcoVadis rating can become more efficient and can lead to a better result thanks to a gap analysis
EcoVadis has evolved into a relevant player in the landscape of sustainability assessments in today’s corporate world. An EcoVadis rating can significantly influence your supplier relationship with corporate customers, who increasingly demand evidence of their suppliers’ sustainability performance.
Your corporate customers may request the results of your EcoVadis rating to
- qualify you as a new supplier as part of the tendering process (RFP/RFQ),
- measure business risks related to their value chain, or
- evaluate performance during an annual review.
Crucial for optimizing your sustainability performance is a thorough understanding of the EcoVadis rating and certification process. This is based on the latest methodological changes that EcoVadis has implemented from 2024/2025.
In this guide, we'll unravel the details of the EcoVadis rating and certification process and present a possible application of ESG software for the EcoVadis reassessment.
Understanding the EcoVadis Rating Model
EcoVadis operates on a subscription model, providing yearly assessments to companies from different industries. Once an EcoVadis assessment becomes available in your account, you can initiate the rating or rerating process for your company.
The allocation of the assessments is straightforward: each subscription year corresponds to one assessment, meaning a three-year subscription entitles you to three assessments. Each EcoVadis assessment remains valid for a twelve-month period, aligning with the duration of your active subscription.
To answer the EcoVadis questionnaire, you are required to upload a substantial amount of information and documents, including reports, codes of conduct, internal procedures, and certificates. Once the questionnaire is started, you need to submit the responses within a maximum of three weeks.
Companies assessed by EcoVadis receive a scorecard that assesses their sustainability performance and consolidates it into a score. Based on the obtained score, you may be awarded an EcoVadis medal (bronze, silver, gold, or platinum medal) and receive a respective certificate.
Medals and badges from EcoVadis acknowledge companies that have successfully undergone the EcoVadis assessment process, demonstrating a management system that effectively addresses the sustainability criteria as requested by EcoVadis.
Key Criteria Evaluated During the EcoVadis Assessment
The rating methodology assesses the quality of a company's sustainability management system across three fundamental pillars: Policies, Actions, and Results.
Policies:
This pillar explores the robustness and effectiveness of a company's sustainability policies. It assesses how well-defined and communicated these policies are, setting the foundation for responsible business practices.
Actions:
The Actions' pillar evaluates the concrete steps taken by a company to implement its sustainability policies. It considers the effectiveness of the strategies employed, and the tangible efforts made to align business operations with sustainable practices.
Results:
This pillar gauges the actual impact and outcomes of a company's sustainability initiatives. It assesses the tangible results achieved, emphasizing the real-world contribution to environmental, social, and ethical objectives.
These three management pillars further unfold into seven management indicators, each providing a nuanced perspective on a company's sustainability efforts:
- Policies: Considers the guidelines, goals, objectives, and governance of a company
- Endorsements: Focuses on the recognition of external sustainability initiatives (e.g. UN Global Compact)
- Measures: Measures the effectiveness of specific sustainability actions, emphasizing the importance of well-defined metrics and benchmarks in driving meaningful change
- Certifications: Examines the certifications obtained by a company, providing an additional layer of validation for its adherence to sustainability standards
- Coverage – Deployment of Actions: Assesses the extent and depth of a company's sustainability actions, considering the coverage and impact across its operations
- Reporting: Evaluates the transparency and quality of a company's sustainability reporting, emphasizing the importance of clear and comprehensive communication
- 360° Watch Findings: Offers insights on the stakeholders’ perspective on potential risks and opportunities related to a company's sustainability practices
The elements were created on the basis of the PDCA (plan-do-check-act) method. This is a 4-step management method that is used worldwide to keep an eye on the control and improvement of processes (based on a scientific method developed by Francis Bacon, Novum Organum 1620).
Sustainability Topics Impacting the EcoVadis Rating
EcoVadis evaluates companies based on a comprehensive set of criteria:
- Environment: Assessment of a company's ecological footprint and sustainability initiatives
- Labor and Human Rights: Evaluation of labor practices, human rights, and community engagement
- Ethics: Scrutiny of business ethics, transparency, and integrity
- Sustainable Procurement: Assessment of the company's efforts and practices related to sustainable procurement processes
Each topic area is assessed on the basis of the pillars (guidelines, actions, results). The score value for each area is calculated from the individual results of the pillars.
In the following, you can find the details for each topic:
1. Environment
One of the primary focal points of the EcoVadis assessment revolves around a company's environmental practices. This entails an examination of the ecological footprint left by the organization and an in-depth analysis of the sustainability initiatives in place. Companies are scrutinized for their commitment to minimizing environmental impact of their products or services and fostering sustainability across their operations.
Sub-topic: Operations
- Energy Consumptions and Greenhouse Gas (GHG) Emissions
- Water
- Biodiversity
- Local and Accidental Pollution
- Materials, Chemicals, and Waste
Sub-topic: Products
- Product Use
- Product End-of-Life
- Customer Health and Safety
- Environmental Services and Advocacy
2. Labor and Human Rights
Social responsibility with regard to labor and human rights forms another critical category of the EcoVadis assessment, encompassing an extensive evaluation of a company's labor practices, adherence to human rights, and the depth of engagement with local communities.
Sub-topic: Human Resources
- Employee Health and Safety
- Working Conditions
- Social Dialogue
- Career Management and Training
Sub-topic: Human Rights
- Child Labor, Forced Labor and Human Trafficking
- Diversity, Discrimination, and Harassment
- External Stakeholder Human Rights
3. Ethics
EcoVadis delves into the ethical underpinnings of a company's business conduct, scrutinizing aspects such as transparency, integrity, and adherence to ethical business practices.
- Corruption
- Anticompetitive Practices
- Responsible Information Management
4. Sustainable Procurement
This crucial pillar assesses the company's dedication and efficacy in integrating sustainability considerations into its procurement processes. EcoVadis evaluates how well a company ensures that its supply chain aligns with ethical, social, and environmental standards.
- Supplier Environmental Practices
- Supplier Social Practices
Understanding the factors that influence your EcoVadis rating is pivotal for businesses for obtaining a high score and receiving a EcoVadis medal.
If you would like to find out more about the EcoVadis medals, and in particular understand the changes to the scoring system, read the blog article: EcoVadis medals
Use ESG Software to Successfully Master the EcoVadis Reassessment Process
As you gear up for the annual reassessment, leveraging software can be a game-changer. Let's explore how automation software can support you in optimizing your EcoVadis rating.
ESG Software can help you
- systematically address the insights from your EcoVadis assessment, assign responsibilities, and overview progress of the identified improvement areas
- track sustainability metrics, making it easier to monitor KPIs continuously and take prompt corrective actions
- organize the collection and storage of information required for the EcoVadis reassessment (with features like automated reminders)
- stay ahead of specific requirements and changes outlined by EcoVadis by including document upload restrictions and further guidance templates in alignment with EcoVadis guidelines
As EcoVadis is committed to providing a nuanced and dynamic framework that aligns with the evolving landscape of responsible businesses, it is Important to stay up to date with yearly changes.
By integrating Sunhat’s software solution into your sustainability management, your company can enhance efficiency, accuracy, and collaboration, ensuring that you are well-prepared when the reassessment period begins.
If you’re interested in using our Sunhat EcoVadis module for your next reassessment, request a demo.