Understanding the EcoVadis Scorecard

Awareness of sustainable and responsible corporate governance is constantly growing. Companies increasingly see it as their duty not only to be economically successful, but also to act in an ecologically and socially responsible manner. In this context, EcoVadis has established itself as a leading platform that supports companies worldwide in measuring and improving their sustainability performance.

What exactly is EcoVadis, and how does a company receive a scorecard, including a medal? 

EcoVadis offers a comprehensive assessment model that provides companies with a detailed analysis of their sustainability practices. This assessment is based on 21 criteria covering four key topics: environment, labor practices & human rights, ethics and sustainable procurement. Companies receive a scorecard after being assessed by EcoVadis. This report not only provides an overall assessment, but also detailed insights into strengths and areas for improvement within the topics mentioned.

First and foremost, this serves as a tool for self-assessment and continuous improvement in the area of sustainability. In addition, many companies also use the EcoVadis medal to communicate their sustainability performance to customers, business partners and investors. It is a credible tool for creating transparency and strengthening trust in the company's sustainability efforts.

Why is the EcoVadis rating important?

The EcoVadis assessment helps companies to evaluate and improve their sustainability performance. It offers numerous advantages, such as:

• Improved credibility: customers and partners value companies with transparent sustainability standards.‍
• Competitive advantages: Higher scores or a better medal can lead to new business opportunities.‍
• Risk minimization: Identification and mitigation of potential risks.

Structure and methodology of the EcoVadis Scorecard

The scorecard is based on an assessment in four main categories:

1. Environment: e.g. energy consumption, CO₂ emissions, waste management.
2. Labor and human rights: e.g. working conditions, diversity, human rights.
3. Ethics: e.g. business ethics, anti-corruption.
4. Sustainable procurement: e.g. selection and evaluation of suppliers.

Each category is scored on a weighted scale to achieve an overall score between 0 and 100.

You can find more information on the EcoVadis medal system in our blog article: EcoVadis Medals.

The assessment process begins with a detailed data collection. Companies complete the EcoVadis questionnaire and submit supporting documents. A team of experts analyzes this data and then creates the EcoVadis assessment including scorecard.

The significance of the evaluation results

The scorecard provides valuable insights. Companies can compare their results with industry standards and take targeted measures to improve. A high score or a good EcoVadis medal strengthens the trust of customers and partners, while a low score should serve as an incentive for improvement.

What happens after receiving the evaluation?

Companies should carefully analyze their assessment results and develop action plans based on them. This includes:

• Identifying weaknesses: Which categories have the lowest scores?
• Prioritization of measures: Which improvements will have the greatest impact on the score?
• Implementing an action plan: Concrete steps to optimize policies, processes, and practices.

Communicating the results is also crucial. Companies can share the EcoVadis Medal with partners, customers, and investors to demonstrate transparency and build trust.

It is important to have a good understanding of the EcoVadis assessment methodology. You can read full details in our blog article: EcoVadis rating: Assessment methodology.

How can companies improve their EcoVadis Medal?

A good score requires commitment and continuous improvement. Here are some tips to increase your EcoVadis score:

• Laying the foundations: establishing clear guidelines, such as a comprehensive sustainability strategy, procurement guidelines or environmental guidelines
• Industry focus: concentrate on the key sustainability issues in the industry 
• Environment: focus on CO₂ accounting (Scope 1 to 3), set and monitor reduction targets
• Certifications and initiatives: e.g. ISO 50001 and UN Global Compact
• Employee training: Raising awareness of sustainable practices
• Reviewing the supply chain: working with sustainable suppliers
• Anchoring ethical guidelines: Implementation of strict compliance programs
• Monitoring and reporting: regular data collection and publication of a sustainability report, including a materiality analysis 

Examples of successful companies show that small, consistent changes can make a big difference.

For example, we were able to help our customer TRICOR go from a silver medal to a gold medal. 

“Companies should adapt their guidelines to the formal criteria of EcoVadis. Otherwise there is a risk that even the best environmental policy will not achieve the full score. In concrete terms, this means specifying quantitative and qualitative targets, assigning responsibilities, defining the review mechanism and scope of assessment.”

Julia Köster, Customer Success Manager & Sustainability Expert

Conclusion

The EcoVadis assessment including scorecard is an indispensable tool for any company that wants to evaluate and improve its sustainability performance. Not only does it provide valuable insights, it also strengthens the trust of partners, customers, and investors.

Are you ready to take the next step towards sustainability? Start early with the EcoVadis assessment!

By using ESG software such as Sunhat, this project can be started efficiently as a team — or on your own. Sunhat offers a flexible EcoVadis module that can be customized to the specific needs of your company. This ensures that all data and documents required for the EcoVadis assessment can be managed efficiently at all times and integrated directly into the questionnaire. Our team of experts continuously stays up to date with the latest EcoVadis developments so that you are always well-prepared.

If you are interested in using our EcoVadis module for your next EcoVadis rating, book a demo today!