EcoVadis: Decoding the Latest Sustainability Rating System

EcoVadis & its Sustainability Rating System

What is EcoVadis?

EcoVadis is a global provider of business sustainability ratings, specialising in independent evaluations of companies’ performance across key Environmental, Social, and Governance (ESG) criteria, evaluating over 130,000 companies across various industries. The EcoVadis rating system assesses corporate sustainability based on 21 criteria categorised into four key themes:

• Environmental Impact
• Labour and Human Rights
• Ethics
• Sustainable Procurement

Who Can Benefit from EcoVadis?

EcoVadis, founded in 2007 and headquartered in Paris, has become a trusted partner for businesses seeking to measure, manage, and improve sustainability throughout their value chains. It is beneficial for the

• Companies are looking to assess and monitor the sustainability performance of their suppliers for responsible sourcing.
• Businesses aiming to benchmark, improve, and credibly communicate their sustainability practices.
• Organisations seeking independent, evidence-based evaluations to strengthen their Environmental, Social, and Governance (ESG) profiles.

What’s the Purpose of EcoVadis Rating?

The main goal of EcoVadis ratings is to provide reliable, transparent assessments of a company’s sustainability practices across Environment, Labour & Human Rights, Ethics, and Sustainable Procurement. These ratings enable organisations to:

• Identify and manage ESG risks
• Drive continuous improvement in sustainability
• Facilitate responsible supplier selection
• Enhance stakeholder trust and communication

Why is the EcoVadis Rating Important?

In today’s business landscape, sustainability is a key factor for investors, customers, and partners. The EcoVadis rating offers an independent benchmark of a company’s ESG performance, reflecting its sustainability maturity and commitment to continuous improvement. A strong rating enhances credibility, unlocks new business opportunities, and signals alignment with global best practices.

It also helps attract clients, investors, and strategic partners who increasingly prioritise sustainability in their decision-making. Many procurement teams now use such ratings to assess risk and supplier reliability.

Why Your Sustainability Rating Is Important?

Sustainability ratings (whether from EcoVadis or others) offer transparency, guide performance benchmarking, and support long-term value creation. They are vital tools in procurement and risk management, as more organisations require suppliers to meet defined ESG standards. A credible rating not only builds trust but also opens doors to markets, funding, and partnerships by demonstrating responsible business practices.

Why Top Enterprises Are Using EcoVadis in Their Procurement Strategies?

assess supplier ESG performance reliably and at scale. The assessment follows four core steps (registration, questionnaire completion, document submission, and scorecard delivery) typically completed within 6–8 weeks.

To ensure a thorough evaluation, companies must submit specific documentation, including:

• Policies: Code of Conduct, Environmental Policy, Diversity & Inclusion Policy
• Certifications: ISO 14001, ISO 45001, SA8000, etc.
• Reports: CSR, ESG, or Sustainability Reports

Cross-functional collaboration is essential—Procurement, HR, EHS, Legal, and Compliance teams often work together to compile and validate submissions. Importantly, the EcoVadis assessment is not a one-time activity; it’s part of an ongoing process that encourages continuous improvement and regular reassessment.

How to Embed EcoVadis Ratings Across Functions & Teams?

To maximise impact, companies should embed EcoVadis insights into day-to-day operations:

• Engage departments like Procurement, HR, EHS, and Legal in assessments and action plans.
• Use scorecard results for internal training, supplier development, and sustainability goal-setting.
• Set KPIs aligned with EcoVadis themes (Environment, Labour & Human Rights, Ethics, Sustainable Procurement).

Integrate findings into ESG reporting, risk management, and performance dashboards.

How to Obtain an EcoVadis Certification?

Achieving an EcoVadis rating involves a straightforward four-step process:

1. Register Online: Start by creating a company profile, including details about your business activities and contact information. This profile helps customise a specific questionnaire for your company.
2. Complete the Questionnaire: Answer the tailored questionnaire and upload relevant documents (such as certifications). The process is secure, confidential, and supported by a multilingual team.
3. Expert Analysis: EcoVadis analysts evaluate your responses and documents to create a Scorecard. This assessment is based on a thorough review of your sustainability management system.‍
4. Receive Your Rating: Access your Scorecard results online. Use these results to collaborate with customers, enhance your performance, and showcase your achievements.

Understanding the EcoVadis Methodology

The EcoVadis rating methodology evaluates the quality of a company’s sustainability management system across three key pillars:

• Policies (25%): Assesses the presence of formal sustainability policies, mission/vision statements, and external endorsements (e.g., CSR commitments).
• Actions (40%): Covers implemented measures, certifications (e.g., ISO 14001, SA8000), and the scale of deployment across operations.
• Results (35%): Evaluates reporting practices and stakeholder feedback using tools like the 360° Watch, which captures both positive and critical external viewpoints.

These pillars provide a structured and balanced approach to understanding and improving sustainability performance.

EcoVadis Assessment Model: How It Works?

EcoVadis assessments are customized based on company size, industry, and location, ensuring relevance and fairness. The platform uses a dynamic, AI-supported system to tailor the questionnaire and scoring benchmarks, considering sector-specific risks and best practices. This ensures that companies are evaluated relative to their operational context and sustainability impact.

What are the Principles Behind the EcoVadis Methodology?

EcoVadis is built on key principles to ensure credibility and comparability:

• Evidence-based: Only documented policies, actions, and results are considered.
• Industry-relevant: Methodology is tailored to over 200 industry categories.
• International standards: Based on leading frameworks like GRI, UNGC, ISO 26000, and ILO conventions.
• Continuous improvement: Encourages companies to evolve their sustainability practices over time.‍
• Transparency & trust: Scoring criteria are publicly available and support stakeholder confidence.

EcoVadis Scoring & Medal Levels Explained

EcoVadis awards medals based on your overall score, reflecting your performance compared to other companies evaluated in the past year. The updated medal thresholds, effective January 1, 2024, are as follows:

• Bronze: 56 Points
• Silver: 64 Points
• Gold: 72 Points
• Platinum: 80 Points

Note that a company must score at least 30 points in each of the four themes to be eligible for a medal.

EcoVadis Badges:

EcoVadis also awards badges to the companies apart from the medals, with the following criteria:

• Committed: A minimum score of 45
• Fast Mover: A score between 34-44 with a minimum 6-point improvement compared to the previous assessment in 18 months

Note that the companies earning an EcoVadis medal are not eligible for an EcoVadis badge. A company that is in the top 35% based on its percentile rank may be eligible for a Committed badge instead of a medal if it doesn’t meet all other criteria required for medals.

360 ^o Watch for Medals:

This is a score between 0 and 100 for each theme, based upon some standards, which the EcoVadis analysts use to assign the level of impact for findings with negative consequences.

• A company is ineligible for a medal if the 360° Watch indicator score = 0 for at least one theme or 25 for at least two themes.
• A company may still be eligible for a medal despite the indicator scores if it does not have a single negative (minor, major, or severe) case within 3 years for Environment, Labour & Human Rights, and Sustainable Procurement themes or 5 years for the Ethics theme.
• A Large company may still be eligible for a medal despite the above rule, provided it has no more than 50 minor findings and no more than 1 major finding valid on the scorecard.

360° Watch for Badges:

• A company is ineligible for a badge if it has at least one severe* finding within the past 5 years for Environment, Labour & Human Rights, Sustainable Procurement themes or 7 years for the Ethics theme.
• Only if the case is categorised as severe, rules on cumulative 360° Watch findings do not apply to badges.

EcoVadis and Supply Chain Sustainability

EcoVadis plays a significant role in improving supply chain sustainability. For buyers, it provides a means to evaluate suppliers' sustainability performance accurately and timely manner, helping identify more sustainable options or encourage improvements among current suppliers. Suppliers benefit by benchmarking their performance against competitors and gaining insights to enhance their sustainability efforts, thereby strengthening their market position.

Importance of EcoVadis in Supply Chain Sustainability:

According to multiple studies, a sustainable supply chain benefits the financial and brand image of a company. Also, a sustainable supply chain can reduce the supply chain costs by 9%-16% (reported by the World Economic Forum).

Strategies to Enhance Your EcoVadis Score

To improve your EcoVadis rating, consider the following strategies:

• Capture KPIs and Targets: Document key performance indicators (KPIs) and sustainability targets related to all four themes. Ensure they are included in your sustainability report.
• Align with UN SDGs: Align your sustainability report and tracked KPIs with the United Nations Sustainable Development Goals (SDGs)
• Set SBTi Targets: Commit to Science-Based Targets Initiative (SBTi) targets to align your decarbonization efforts with reliable standards.
• Organise Documentation: Prioritise and organise your documents effectively. Ensure they are well-structured, include your company’s logo, and are signed by relevant stakeholders.
• Engage Suppliers: Implement a formal supply chain sustainability program, and provide training on supplier codes of conduct and responsible procurement policies.
• Track and Improve Each Theme with Action Plans: With proper actionable plans, enhance your performance in Environment, Labour & Human Rights, Ethics, and Sustainable Procurement.
• Collect Evidence: Gather supporting documents such as updated policies, certifications, and ESG/CSR reports regularly.
• Conduct Mock Assessments or Audits: Before the formal submission, simulate the EcoVadis process internally to identify the flaws.‍
• Learn from Feedback: Review your previous scorecard to address weaknesses and inform future improvements.

The Future of Sustainability Ratings

Sustainability ratings are evolving rapidly in the new world of technologies and regulations.

• AI-Driven Assessments: Automation and AI are enabling faster, more accurate evaluations using real-time ESG data.
• Integrated Supply Chain Scoring: Ratings will increasingly assess the full value chain, not just individual companies.
• Regulatory Influence: Frameworks like the BRSR, CSRD, and emerging SEC ESG rules are pushing companies toward standardised, auditable disclosures.‍
• Cross-Industry Benchmarking: There's a growing demand for transparency and comparability across sectors to enable fair performance evaluation and informed decision-making.

Final Thoughts

Navigating the updated EcoVadis rating system is crucial for businesses dedicated to sustainability. By understanding the new criteria and proactively enhancing your sustainability practices, you can improve your rating, build investor confidence, and boost customer trust.

For expert guidance on optimising your EcoVadis score and implementing effective sustainability practices, consider leveraging industry-specific modules and services. By adopting these strategies and focusing on key areas like ESG reporting, carbon management, and sustainability benchmarks, you can elevate your company's sustainability profile and achieve a higher EcoVadis rating.