EcoVadis CSR Scoring Principles

You might also like

Download as pdf or txt
Download as pdf or txt
You are on page 1of 37

EcoVadis Ratings

Scoring Principles

Document Classification | EcoVadis Public EcoVadis 2023 V1.4


Table of Contents
Methodology Principles..........................................................................................3

Assessment Methodology.....................................................................................4

Scoring Principles........................................................................................................6

Scoring and Weight of Management Indicators......................................8

Policies

• Policies Management Indicator..........................................................10

• Endorsement Management Indicator............................................13

Actions

• Measures Management Indicator......................................................16

• Certification Management Indicator...............................................19

• Coverage Management Indicator....................................................22

Results

• Reporting Management Indicator....................................................24

• 360° Watch Management Indicator...............................................28

Strengths and Improvement Areas................................................................30

Company Scoring Example.................................................................................31

Assessment Process Examples.........................................................................33

Support Materials and Useful Resources...................................................36


Methodology Principles
The EcoVadis rating methodology measures the quality of a company’s sustainability management
system through its policies, actions and results. The EcoVadis sustainability rating methodology
is based on the following seven foundational principles.

Evidence Based Technology is a Must Excellence Through Continuous


The burden of proof is on the company being Improvement
A rating system can only become reliable
rated. It must provide supporting documents, and robust if it is supported by technology. A professional rating methodology is one
such as commitments, certificates and Technology facilitates industrialization, which that is open to quality controls, continuous
KPI reporting, that showcase the maturity enables fast learning, growth and scalability. improvement and stakeholder feedback.
of its sustainability management system. EcoVadis has implemented a company-wide
The company’s declarations are only creditedif quality management system supported by
evidence is provided. Assessment by International a client advisory board and a scientific committee.
Sustainability Experts
The supporting documents are analyzed by
Industry, Location and Size Matter
a team of sustainability experts from around
The sustainability management system the globe who keep track of the latest best
is assessed based on material industry issues, practices in sustainability.
presence in risk countries and the size
and geographical span of the company.
Traceability and Transparency
Diversification of Sources Every document used in the rating process
is stored securely and can be traced. Rated
The rating is based not only on supporting companies have access to detailed results
documents provided by the company but also on each scoring decision.
on information published by non-governmental
organizations (NGOs), trade unions, international
organizations, local authorities and other third-
party organizations (e.g., auditors, CDP, external
compliance database).

Table of Contents 3 37
Assessment 21 Sustainability Criteria
Methodology
Sustainability Criteria Covered Environment Labor & Human Ethics
by the EcoVadis Assessment Rights
Operations • Corruption
EcoVadis Ratings evaluate corporate performance • Energy Consumption & GHGs Human Resources • Anticompetitive Practices
on up to 21 sustainability criteria across four themes: • Water • Responsible Information
• Employee Health & Safety
Environment, Labor & Human Rights, Ethics and Management
• Biodiversity • Working Conditions
Sustainable Procurement. The criteria covered
in each assessment are based on their relevance • Air Pollution • Social Dialogue
to a company’s industry, size and operational • Materials, Chemicals & Waste • Career Management
locations. These factors are defined during & Training Sustainable
a company’s registration on the EcoVadis platform Procurement
and shape the questionnaire it receives. Products
• Product Use Human Rights
• Supplier Environmental
• Product End-of-Life • Child Labor, Forced Labor Practices
• Customer Health & Safety & Human Trafficking
• Supplier Social Practices
• Environmental Services & • Diversity, Equity & Inclusion
Advocacy • External Stakeholder Human
Rights

Table of Contents 4 37
EcoVadis Sustainability REPORTING POLICIES
Management Indicators Reporting information includes the Policies, objectives, targets,
governance
quality, transparency and level of key
performance indicators (KPIs). These
EcoVadis considers an effective sustainability indicators should pertain to the scope ENDORSEMENTS
management system to be one that consists of the assessed company, cover all Endorsement of external sustainability
of three key elements: Policies, Actions and operational sites, be recent (i.e., within the initiatives and principles
last two years) and be readily available (e.g., UN Global Compact)
Results. Each of these elements carries a particular
to stakeholders (e.g., KPIs on total
weight when evaluating a company’s performance energy consumption in KWh within
on a given assessment theme. These core the last two calendar years)
management layers are further divided into seven
management indicators: Policies, Endorsements, 360º WATCH FINDINGS
Measures, Certifications, Coverage, Reporting Stakeholder viewpoints Policies
and 360° Watch Findings. (e.g., administrative and judicial
authorities, trade unions, NGOs) MEASURES
Actions implemented (e.g., procedures,
training, equipment)
Sustainability
Management CERTIFICATIONS
System Certifications, labels, third-party audits

ts

Act
ul
COVERAGE

i
s

o
e
Level of deployment of certificates

n
R
s
or actions throughout the company

Table of Contents 5 37
Scoring Principles
Scoring is based on the evidence companies provide in their questionnaires and supporting
information collected from stakeholders (e.g., 360° Watch Findings) and third parties
(e.g., auditors).
Each of the seven management indicators (Policies, Measures, etc.) is assigned a score
between 0 and 100 in increments of 25. The score is based on multiple factors, including the
percentage of relevant sustainability criteria addressed and the relative importance of each.

0 25 50 75 100
Insufficient Partial Good Advanced Outstanding

Table of Contents 6 37
Overall scoring on each theme – Environment,
Labor & Human Rights, Ethics and Sustainable
Procurement – * is calculated by aggregating
the weighted scores on the seven management
indicators.
The overall score* is a weighted average of the four
theme scores. Size and country risk factors are also
integrated at this stage.

* The overall score is rounded to the nearest whole number, while


the theme scores are rounded to the nearest ten.

Table of Contents 7 37
Scoring and POLICIES
Policies, objectives, targets, governance
0 Insufficient
Partial
Good

Weight of
80% Advanced
Policies 100 Outstanding
(25%)

Management
0 Insufficient
Endorsement of external sustainability Partial
ENDORSEMENTS
initiatives and principles, e.g. UN Global Good
20% Advanced

Indicators
Compact
100 Outstanding

0 Insufficient
Partial
MEASURES Actions put in place to support objectives Good
Scoring on each theme is based on a company’s 65% and targets Advanced
performance on seven management indicators 100 Outstanding
across three management layers: Policies, Actions 0 Insufficient
and Results. The overall score is the weighted
Actions CERTIFICATIONS
Partial
average of the four theme scores. Additionally, Certifications, labels, third-party audit Good
the scoring formula takes into account size and
(40%) 35% Advanced
100 Outstanding
country risk factors, which EcoVadis reviews
and revises regularly to reflect the wide range 0 Not Applicable
of sustainability risks faced by the diverse COVERAGE Level of deployment of certificates or actions
Low Coverage
Medium Coverage
companies in our network. multiplying factor throughout the company High Coverage
100 Very High Coverage

0 Insufficient
Partial
REPORTING Quality of reporting readily available Good
40% to stakeholders Advanced
Outstanding
Results 100

(35%) 0 Severe
360° WATCH Standpoints of stakeholders representatives, Major
FINDINGS e.g. administrative & judicial authorities, Minor
60% trade unions, NGOs Neutral / Under Watch
100 Positive

Table of Contents 8 37
Size Factor: Country Risk Factor:

Why? Why?

The questionnaire a company receives at the We recognize that companies are exposed
start of the assessment process is tailored to different levels of risks depending on the
to its size (i.e., extra-small, small, medium or environmental, social and ethical contexts of Key facts:
large). Likewise, the scoring formula includes the countries in which they operate. These
• Low Risk countries have low risks in all
a size factor that impacts the starting score country-related risks are one of the important
of the 4 areas.
of companies of different sizes. factors in customizing the scoring.
• Medium Risk countries typically have
How? How?
high risk in at least one of the 4 areas.
The EcoVadis assessment methodology Country Risk is defined based on the risk
• High Risk countries generally have high
takes into consideration the operational level in 4 areas: Environment, Health & Social, risks in all 4 areas.
scale of companies of various sizes. For Human Rights and Governance. Risk levels are
example, the requirements for an effective allocated based on the combination of indices • Ratings with operation only in Low Risk
sustainability management system tend to such as Human Development Index, Global countries are classified as Low Risk.
be more demanding for larger companies. Slavery Index, Control of Corruption Index
• Ratings with operation in Medium
This is due to factors such as a higher etc. The risk level of countries is classified
Risk or High Risk countries, but with
number of employees, multiple operational into three levels: Low Risk, Medium Risk, and Headquarter in Low Risk or Medium
sites within and across countries, a larger High Risk. Ratings with higher risk have lower Risk countries are classified as Medium
supplier base and the higher level of starting scores, as EcoVadis methodology Risk.
resources and effort needed to manage expects a higher level of management
and mitigate the associated risks. As a result, for companies operating in higher risk • Ratings with Headquarter in a High Risk
our methodology is more stringent for large environments. country are classified as High Risk.
companies because of their greater potential
sustainability risks and impacts.

Table of Contents 9 37
Policies
Policies Management Indicator

Definition Scoring Principles Evidence

A policy is a set of objectives addressing specific Policies scoring is based on: Supporting documentation with evidence
sustainability issues. Policies, which are voluntary of company objectives integrated into formal
Specificity of objectives, ranging from general company documents available to internal
and go beyond legal requirements, demonstrate
statements to time-bound and quantifiable or external stakeholders (e.g., company
a company’s commitment to mitigating risks,
targets. commitment to reducing energy consumption
reducing negative impacts and enhancing
performance. Number of relevant sustainability issues communicated in the environmental policy
addressed (information on criteria activation section of the sustainability report).
can be found in Industry Risk Profiles – Examples of qualitative objectives
Examples of policies:
accessible via questionnaire or published vs. quantitative targets.
General principles, statements and qualitative scorecard).
objectives to improve sustainability “Our company is committed to reducing
Additional factors that increase the robustness its environmental impact by using recycled
Absolute or relative quantitative targets with of a formalized policy include: materials to minimize its virgin materials
a defined timeframe. consumption.” – Qualitative objective
• Governance and allocation of responsibilities
are clearly defined; “We are committed to using 75% of recycled
• Policies are regularly reviewed and updated; materials in our production process by 2030.”
– Quantitative target
• The scope of the policy is specified (e.g., what
business units and functions are covered).
Group policies from the parent company
are taken into account.

Table of Contents 10 37
Scoring Matrix for the Environment, Labor & Human Rights and Sustainable Procurement Themes

0 25 50 75 100
Insufficient Partial Good Advanced Outstanding

Qualitative objectives Qualitative objectives for


No formalized policy Qualitative objectives Qualitative objectives
and quantitative targets all key sustainability issues

Less than 67% of key More than 67% of key More than 67% of key Quantitative targets for at least
-
sustainability issues covered sustainability issues covered sustainability issues covered 50% of key sustainability issues

1 of the following: 2 of the following:

Governance and allocation Governance and allocation


- - -
of responsibilities of responsibilities

- - - Review mechanism Review mechanism

- - - Specific scope Specific scope

Table of Contents 11 37
Scoring Matrix for the Ethics Theme

0 25 50 75 100
Insufficient Partial Good Advanced Outstanding

No formalized policy Qualitative objectives Qualitative objectives Qualitative objectives Qualitative objectives

Less than 50% of key At least 50% of key All key sustainability issues All key sustainability issues
-
sustainability issues covered sustainability issues covered covered covered

Policies on 2 of these issues: Policies on 3 of these issues: Policies on 3 of these issues:

- - bribery bribery bribery


- - conflict of interest conflict of interest conflict of interest
- - money laundering money laundering money laundering
- - fraud fraud fraud

At least 2 of the following: At least 4 of the following: At least 6 of the following:

- - Detailed ethical guidelines with examples

- - Formal review mechanism


- - Governance and allocation of responsibilities (such as Ethics Committee or Ethics Officer)
- - Scope of policy is specified
- - Quantitative targets for key sustainability issues
- - Ethics Policy Acknowledgment is signed by all employees
- - Disciplinary measures for policy violations

Table of Contents 12 37
Policies
Endorsements Management Indicator

Definition Scoring Principles Evidence

Endorsements are a company’s public adherence Endorsement scoring is based on: Endorsement declarations are verified by analysts,
or commitment to meeting sustainability objectives typically through a given endorsement’s online
or principles defined by a recognized third-party If a company’s endorsement declaration can be membership database.
organization or active participation in formal verified (i.e., through the website of the issuing
initiatives. Endorsements must be publicly verifiable organization), it is reflected in its Endorsement
or officially documented. score. The following aspects of an endorsement
are taken into consideration:
• The sustainability issues or criteria
it addresses;
• Sector or cross-sectoral scope;
• Requirements for signatories, participants or
members.
If a company has endorsed multiple initiatives,
the highest-scoring endorsement is considered
and bonus points are given for other
endorsements.
Group endorsements from the parent company
are also taken into account.

Table of Contents 13 37
Here are some examples from EcoVadis’ live sustainability standards database, which is updated continuously by a central review team

Scores

Initiative Verification Sector


Labour & Sustainable
Environment Ethics
Human Rights Procurement

United Nations Global https://www.unglobalcompact.org/what-is-gc/


Cross-sectoral 75 75 50 50
Compact participants/

International Council on http://www.icmm.com/members/member- Mining


100 100 75 -
Mining and Metals (ICMM) companies and metals

Responsible Care Global


https://www.icca-chem.org/responsible-care Chemicals 75 50 - -
Charter

UN Principles for
Responsible Investment https://www.unpri.org/directory Financial 75 - - 25
(UN PRI)

Charte de la Diversité
https://www.charte-diversite.com/signataires Cross-sectoral - 50 - -
(French Diversity Charter)

Sustainable Apparel Apparel,


Coalition (SAC) Brands & http://apparelcoalition.org/members footwear, - - - 75
Retailers Member home textiles

Table of Contents 14 37
Examples of invalid endorsements

International Labour Organization (ILO)

Why?
ILO Conventions are signed on to and ratified
by governments rather than companies.

Universal Declaration of Human Rights (UDHR)

Why?
A declaration can be made with no formal
adherence mechanism for companies

Table of Contents 15 37
Actions
Measures Management Indicator

Definition Evidence

A measure is a concrete action implemented Supporting documentation with a detailed


by a rated company to support its sustainability description of actions the company has
policies, commitments and targets and address implemented to address certain sustainability
relevant sustainability criteria. criteria.
Examples:
Scoring Principles
Overview of grievance mechanism
Measures scoring is based on: or whistleblowing procedure in the company
code of conduct that provides information on
Number of relevant sustainability issues reporting channels and/or accessibility and
addressed (information on criteria activation assurances regarding confidentiality and non-
can be found in Industry Risk Profiles retaliation.
– accessible via the questionnaire or published
scorecard); Environmental emergency response procedure
document outlining actions to be taken
Concrete evidence of implementation from in the event of an accident.
supporting documentation;
Match the scope of the assessment (group,
entity or site);
Actions implemented at the parent company
are also taken into account.

Note: To achieve a score of 100, evidence of actions


implemented must be present in all activated criteria.

Table of Contents 16 37
Scoring Matrix for the Environment, Labor & Human Rights Scoring Matrix for Ethics Theme
and Sustainable Procurement Themes

Percentage of key sustainability issues addressed Sustainability issues addressed

Information Corruption All relevant


< 33% 33 to 65% ≥66% security prevention issues

No measures 0 0 0 No measures 0 0 0

1 measure 25 25 50 1 measure 25 25 50

2 to 3 measures 25 50 75 2 to 3 measures 25 50 75*

4+ measures 50 75 100 4+ measures 50 75* 100**

Example: when Information Security and Corruption are the two material sustainability issues for the assessment
* Risk assessment is documented for at least one of the following: information security or corruption prevention.
**Risk assessment is documented for both information security and corruption prevention.

Table of Contents 17 37
Scoring Matrix for the Sustainable Procurement Theme

List of accepted measures


No measures 0 The measures are presented in the order 6. Suppliers are audited on-site to evaluate their
we recommend you implement them. sustainability practices.
1 measure 25 1. Suppliers have signed a Sustainability Code 7. Suppliers are engaged in capacity building
of Conduct. initiatives for sustainability, such as corrective
2 to 3 measures 50 actions and training.
2. Environmental, labor and human rights clauses
are integrated into supplier contracts. 8. Well-performing suppliers have access to
4 to 5 measures 75 unique incentives, such as supplier awards,
3. A sustainability risk analysis is conducted before
preferred supplier programs or RFPs.
assessing or auditing suppliers.
6+ measures 100 9. Sustainability objectives are integrated into
4. Suppliers are assessed on their environmental
performance reviews of employees in the
and social practices through a questionnaire.
procurement department of your company.
5. Employees in the procurement department
10. Tangible innovative practices such as 2nd
of your company have received training on
tier audits and worker voice surveys are
sustainability issues within the supply chain.
implemented.

Table of Contents 18 37
Actions
Certifications Management Indicator

Definition Evidence

Certifications confirm a rated company’s Complete certificates must be provided


compliance with international sustainability by the rated company. Certificates that
standards. They can come in the form of canbe found in the public domain but are not
sustainability management system certifications, uploaded as supporting documents will not
sustainability management system labels be considered.
or ecolabels certifying products or services.

Scoring Principles

Certification scoring is based on:


Certificate issued by an independent
and accredited external certification body;
Certificate issue and expiry dates are within
the validity period;
Activity and sites covered in line with the rated
entity (group, entity or site);
Addresses sustainability issues or criteria.

Table of Contents 19 37
Here are some examples from EcoVadis’ live sustainability standards database, which is updated continuously by a central review team

Scores
Certification Verification Type
Labour & Sustainable
Environment Ethics
Human Rights Procurement

Management
ISO 14001 Valid certificate 100 - - -
system

Management
ISO 45001 Valid certificate - 50 - -
system

Management
ISO 27001 Valid certificate - - 50 -
system

Social Accountability Valid certificate + http://www. Management


- 75 - 25
8000 (SA8000) saasaccreditation.org/certfacilitieslist.htm system

Forest Stewardship Council Valid certificate


Ecolabel - - - 50
(FSC) Chain of Custody + http://info.fsc.org

EU Ecolabel Valid certificate Ecolabel 50 - - 25

Marine Stewardship Council Valid certificate


Ecolabel - - - 25
(MSC) Chain of Custody + http://cert.msc.org/supplierdirectory

VCA or SCC (SHE Management


Valid certificate - 50 - -
Checklist for Contractors) system

Management
RC14001 Valid certificate 100 50 - -
system

Table of Contents 20 37
Compensation Scheme on the Certification
indicator for the Ethics and Sustainable
Procurement themes.

Why?
The certification scores for the Ethics and
Sustainable Procurement themes receive a
compensation bonus in some specific cases to
account for a lack of existing certification schemes
and market maturity on the topics covered. This
bonus is given to companies that can demonstrate
they have policies and measures in place that
enhance their readiness for emerging standards
and schemes.

How?
The compensation bonus depends on the scores
received on the Policies and Measures indicators.
However, the bonuses awarded through this
compensation rule are limited to encourage rated
companies to follow a formal certification process.

Table of Contents 21 37
Actions
Coverage Management Indicator

Definition Evidence

Coverage refers to the extent to which actions Supporting documentation with information on
have been implemented throughout a company’s the deployment of sustainability measures and
workforce and across its operational sites. This certifications across the organization’s sites and
indicator is only applicable to large companies workforce must be provided for the past two
(1,000+ employees), as the deployment of their calendar years.
sustainability management systems may differ
Examples:
throughout their operations.
Percentage of ISO 14001 or EMAS-certified
operational sites;
Scoring Principles
Percentage of employees covered by social
The Coverage score, which has a minimum benefits;
threshold of 25, serves as a multiplying factor
in the calculation of the Actions score. Percentage of employees who received
training on business ethics within the year.
Coverage scoring is based on:
The implementation level of sustainability
actions (for example, the percentage of
the total workforce across all locations who
received career training);
The percentage of operational sites certified
throughout a company’s locations (for
example, the percentage of sites that are ISO
45001 certified);
Reporting data within the past two calendar
years.

Table of Contents 22 37
Examples from EcoVadis live sustainability standards database, updated continually by a central review team

0 25 50 75 100
Not Applicable Low coverage Medium coverage High coverage Very high coverage

MINIMUM REQUIREMENTS

- Information available showing Information available Information available Information available showing
low coverage of theme-specific showing average coverage of showing high coverage of very high coverage of
sustainability actions operations with theme-specific operations with theme-specific operations with theme-specific
No information on coverage sustainability actions sustainability actions sustainability actions (the vast
available majority of sites, employees
and suppliers covered)

EXAMPLE: COVERAGE OF ENVIRONMENTAL ACTIONS

- 1-25% of production sites 26-50% of production sites 51-75% of production sites 76-100% of production sites
are ISO 14001 certified are ISO 14001 certified are ISO 14001 certified are ISO 14001 certified

Table of Contents 23 37
Results
Reporting Management Indicator

Definition Scoring Principles Evidence

Reporting is based on quantitative KPIs that Number of activated sustainability issues Reporting evidence is often found in annual
measure a rated company’s implementation of addressed (information on criteria activation can reports and sustainability reports but may also
sustainability practices. An effective KPI report be found in Industry Risk Profiles – accessible via be disclosed in stand-alone internal reporting
needs to be up-to-date (within the last two calendar questionnaire or published scorecard) documents.
years) but also needs to consider reporting quality
and transparency. Formality: clearly states the reporting year
and unit (such as kWh or liters) Note:

Transparency: publicly available to stakeholders 1. Only reporting related to the rated entity is taken into
account and can contribute to a maximum score.
Reliability: verification of non-financial data
by an accredited auditor 2. Reporting data must cover the majority of operations
(entity turnover/employee number greater than 80% of
Timeliness: within the last two calendar years the assessment scope).

Comparability of reporting: multiple


consecutive year reporting that enables
companies to benchmark their performance
over time against industry and regional peers
Compliance: with a sustainability reporting
standard such as GRI or SASB

Table of Contents 24 37
Scoring Matrix for the Environment and Labor & Human Rights Themes

0 25 50 75 100
Insufficient Partial Good Advanced Outstanding

1 of the following:

Materiality analysis Materiality analysis


No reporting documentation - -
conducted conducted

Reporting covers at least Reporting covers at least


Reporting is older than Reporting covers at least Reporting covers at least 3 consecutive years, and 3 consecutive years, and
2 calendar years 2 consecutive months 12 months minimum the latest reporting period the latest reporting period
is not older than 2 years is not older than 2 years

Less than 67% of key More than 67% of key More than 67% of key More than 85% of key
-
sustainability issues covered sustainability issues covered sustainability issues covered sustainability issues covered

- - - Publicly available Publicly available

1 of the following:

Complies with reporting Complies with reporting


- - -
standards standards

Verified by an accredited Verified by an accredited


- - -
auditor auditor

Table of Contents 25 37
Scoring Matrix for the Ethics Theme

0 25 50 75 100
Insufficient Partial Good Advanced Outstanding

1 of the following:

Materiality analysis Materiality analysis


No reporting documentation - -
conducted conducted

Reporting covers at least Reporting covers at least


Reporting is older than Reporting covers at least Reporting covers at least 3 consecutive years, and 3 consecutive years, and
2 calendar years 2 consecutive months 12 months minimum the latest reporting period the latest reporting period
is not older than 2 years is not older than 2 years

- Includes 1 KPI for ethics Includes 2 KPIs for ethics Reports on 3 KPIs for ethics Reports on 3 KPIs for ethics

- - - Publicly available Publicly available

1 of the following:

Complies with reporting Complies with reporting


- - -
standards standards

Verified by an accredited Verified by an accredited


- - -
auditor auditor

Table of Contents 26 37
Scoring Matrix for the Sustainable Procurement Theme

0 25 50 75 100
Insufficient Partial Good Advanced Outstanding

1 of the following:

Materiality analysis Materiality analysis


No reporting documentation - -
conducted conducted

Reporting covers at least Reporting covers at least


Reporting is older than Reporting covers at least Reporting covers at least 3 consecutive years, and 3 consecutive years, and
2 calendar years 2 consecutive months 12 months minimum the latest reporting period the latest reporting period
is not older than 2 years is not older than 2 years

Includes 1 KPI for sustainable Includes 2 KPI for sustainable Reports on 3 KPIs for Reports on 3 KPIs for
-
procurement procurement sustainable procurement sustainable procurement

- - - Publicly available Publicly available

1 of the following:

Complies with reporting Complies with reporting


- - -
standards standards

Verified by an accredited Verified by an accredited


- - -
auditor auditor

Table of Contents 27 37
Results
360° Watch Management Indicator

Definition Scoring Principles Evidence

The 360° Watch feature, and its corresponding The 360°Watch score is set at 75/100 by default All 360° Watch Findings are gathered through
management indicator in our methodology, enable and may be increased or decreased based on the EcoVadis’ in-house scanning tool and verified by
us to collect and classify external inputs and following factors: our analysts. The following are considered evidence:
integrate them into the rating process. Our analysts
Nature of the case (positive or negative); Official statements or published documents
carefully review the results of a scan of more than
from government bodies;
100,000 external sources to identify the most Timing and validity of the case;
relevant news, both negative and positive, related Court rulings or legal settlements;
to a given company over the past five to ten years Severity of negative cases: severity is
(the validity period varies based on a number of determined based on a range of factors such Factual statements made by the press or
factors). 360° Watch Findings, the output of this as repeated occurrences, percentage of organizations, such as independent NGOs,
process, reflect the effectiveness of a company’s workforce involved, financial sanctions, etc. that meet scientific standards and demonstrate
sustainability management system. financial neutrality.

Note: If no cases with negative impacts are identified,


the score is eligible to be raised above the default of 75.

Please refer to the 360° Watch Guide


for more information.

Table of Contents 28 37
0 25 50 75 75 100
Case(s) with severe Cases(s) with major Case(s) with minor Under watch case(s) Neutral case(s) Cases with positive
negative impact negative impact negative impact impact

Repeated major Major violations Minor incidents with Minor accident with No significant Multiple recognized
violations of of internationally legal or financial negligible impact or controversies or sustainability
internationally recognized standards sanctions short-term effects incidents management practices
recognized standards with sanctions or fines or awards
with sanctions or fines

EXAMPLES

Repeated major pollution Major H&S violations with Minor fine for Ongoing investigation None Top 5 ranking in
with massive fines monetary sanctions discrimination case which might result sector index and
in a fine external recognition of
performance

Note: This is a simplified matrix – there are differences across themes.

Table of Contents 29 37
Strengths and Improvement Areas
In addition to scoring, every EcoVadis Scorecard highlights a set of strengths and improvement areas for
each theme. These are further categorized according to the three management layers: Policies, Actions
and Results. Strengths reflect the valuable sustainability practices that a company has implemented while
improvement areas present opportunities to take corrective action.

ROOM FOR IMPROVEMENT VALUABLE PRACTICES

0 25 50 75 100
Insufficient Partial Good Advanced Outstanding

IMPROVEMENT AREAS STRENGTHS

Please note the theme and overall scores are not based on the number of strengths and improvement
areas. Strengths and improvement areas provide complementary qualitative information. Rated companies
can continually improve their strengths (from good to advanced to outstanding) as having no improvement
area does not imply that the maximum score has been reached.

Table of Contents 30 37
More information on specific strengths and improvement areas can be found
by clicking on the “i” information icon on the scorecard.

Table of Contents 31 37
Company Scoring Example
Environment Labor & Human Rights

Policies 50 Policies Policies 50 Policies


Endorsement of Sustainability Initiatives 0 Weight 25% Weight: 25% 0 Endorsement of Sustainability Initiatives
Measures/Action 50 75 Measures/Action
Actions Actions
Certifications/Labels/Audits 100
Weight: 40% 60/100 50/100 Weight: 40%
50 Certifications/Labels/Audits
Implementation Coverage 50 25 Implementation Coverage
Weight: 28% Weight: 36%
Reporting/KPIs 50 Results Results 25 Reporting/KPIs
360º Controversies/Awards 75 Weight: 35% Weight: 35% 75 360º Controversies/Awards

Overall score
Ethics 52 /100
Sustainable Procurement

Policies 50 Policies Policies 25 Policies


Endorsement of Sustainability Initiatives 0 Weight 25% Weight: 25% 0 Endorsement of Sustainability Initiatives
Measures/Action 25 25 Measures/Action
Actions Actions
Certifications/Labels/Audits 50
Weight: 40% 50/100 40/100 Weight: 40%
50 Certifications/Labels/Audits
Implementation Coverage 50 25 Implementation Coverage
Weight: 18% Weight: 18%
Reporting/KPIs 0 Results Results 25 Reporting/KPIs
360º Controversies/Awards 75 Weight: 35% Weight: 35% 75 360º Controversies/Awards

Each of the seven management indicators (Policies, Measures, etc.) is assigned a score between
0 25 50 75 100
Insufficient Partial Good Advanced Outstanding 0 and 100 in increments of 25. The score is based on multiple factors, including the percentage
of relevant sustainability criteria addressed and the relative importance of each.

Table of Contents 32 37
Assessment Process Examples
Activity: ISIC 62 – computer programming, consultancy and related activities
Size: Medium (100-499 employees)
Geography: Office activities in France and India

Policy example

Questionnaire Evidence provided Document analysis Scoring Strengths & improvement areas

Does your company have Energy Conservation and Energy policy is outlined in Theme: Strengths:
a formalized environmental Climate Change Policy a formal company document. Environment POLICY Environmental policy on energy
policy? consumption and GHGs
Energy policy includes Score: 25
Answer: a company-wide commitment Quantitative objectives set on
Yes, on energy to energy conservation and Reason: energy consumption and GHGs
consumption and GHG emissions reduction Based on company
greenhouse gases (GHGs) of 10% by 2026. activity, two Improvement areas:
environmental criteria Basic environmental policies
No other evidence on were activated for this that lack detail on specific issues
environmental policies was supplier. Evidence is
provided. provided for half of Inconclusive documentation
the criteria. on waste policies

Table of Contents 33 37
Measures Example

Questionnaire Evidence provided Document analysis Scoring Strengths & improvement areas

What actions are in place Code of Ethcs Evidence of a training program Theme: Strengths:
to prevent corruption and and Whisteblower on anti-corruption found. Ethics MEASURE Awareness training performed
bribery? Procedure to prevent corruption and bribery
Code of Ethics outlines the Score: 50
Answer: whistleblower procedure in Whistleblowing procedure for
Awareness training place to enable reporting Reason: stakeholders to report corruption
performed to prevent of corruption and bribery Based on company and bribery
corruption and incidents (clear reporting activity, two ethics
whistleblower procedure channel, non-retaliation and criteria were activated Improvement areas:
in place for stakeholders confidentiality guaranteed). (corruption and Inconclusive documentation on audits
to report corruption and responsible information of control procedures to prevent
bribery management). corruption
There is evidence
of two measures. Inconclusive documentation
on corruption risk assessments

Inconclusive documentation regarding


an anti-corruption due diligence
program for third parties

Inconclusive documentation on
approval procedure for sensitive
transactions (e.g., gifts, entertainment)

Table of Contents 34 37
Reporting Example

Questionnaire Evidence provided Document analysis Scoring Strengths & improvement areas

On which topics does your Sustainability Report The sustainability report Theme: Strengths:
company publish a report? does not follow any reporting Labor & Human Rights Standard reporting on labor and human
standard. REPORTING rights issues
Answer:
Employee health and safety Reporting on KPIs: Score: 50
Lost time injury frequency
Career Management rate of the latest reporting Reason:
& Training year, average hours of training Formal report is
per employee in the latest provided, is recent
Diversity, Equity & Inclusion reporting year, percentage enough (latest repo-
of women in top executive rting year performance),
positions (excluding boards and there are KPIs for
of directors) in the latest most activated criteria.
reporting year No evidence was
found for multiple-year
reporting or materiality
analysis conducted.
The KPIs do not follow
a reporting standard
and have no external
assurance.

Table of Contents 35 37
Support Materials and Useful Resources
Contact the Help Center to log an inquiry EcoVadis Document Guide
or browse commonly asked questions: Supporting our network of customers with guided eLearning courses to develop their sustainable
getsupport.ecovadis.com management practices and improve environmental and social outcomes.

Go to document

EcoVadis Methodology – Overview and Principles


This document provides an overview of the reference model, seven founding principles and the
ratings process.

Go to document

EcoVadis 360° Watch: A Key Component of the Assessment Methodology


This document looks into the 360° Watch feature that serves to collect, classify, and selectively
The EcoVadis Academy apply stakeholder inputs from over 100,000 sources into the EcoVadis rating process.
Supporting our network of customers with guided eLearning Go to document
courses to develop their sustainable management practices
and improve environmental and social outcomes.

How do I access the EcoVadis Academy?


How To Meet the Document Limit and Avoid Submitting Combined Documents
In this supplement to the EcoVadis Document Guide, you will find more tips on selecting
supporting documents for your first assessment or reassessment, and learn how to prioritize
supporting documentation on our platform to meet the limit of 55 new documents per assessment
without combining multiple documents into one file.

Go to document

Table of Contents 36 37
About EcoVadis: From Risk Mitigation to Performance and Impact

EcoVadis provides sustainability ratings and intelligence used in more than 1,000 global finance and commerce value chains,
offering detailed insights into environmental, social and ethical risks across more than 200 industry categories and 175 countries.
The EcoVadis Intelligence Suite covers:

Risk Mapping Sustainability Ratings Engagement Service, Support


and Monitoring and Improvement Tools and Community
EcoVadisIQ Plus maps your
entire supplier landscape for EcoVadis Ratings engage Detailed scorecards provide Enterprise offerings
inherent risk and identifies companies in benchmarking feedback and guidance for include program
additional due diligence and monitoring to mitigate improvements. The Carbon management support —
needs. risk and improve their Action Module engages change management,
sustainability performance. deeper on measuring, journey mapping, global
A robust methodology reporting and reducing deployment, supplier/
covering 21 criteria GHG emissions. The rated company onboarding,
and a 360° Watch that scans Corrective Action Plan dashboarding and reporting
external inputs (e.g., trade enables collaboration with etc. — and training options
unions, NGOs, watchlists, customers/requesters for requesting (buyers,
news, etc.) yield reliable to prioritize improvements. portfolio managers, etc.)
ratings on a 0-to-100 scale The EcoVadis Academy and rated companies.
that are easy to integrate provides self-guided
into your procurement or e-learning courses to help
business decisions. you and your suppliers
build knowledge.

Copyright: No part of this document may be reproduced, modified or distributed in any form or manner without prior written permission of EcoVadis.
No warranty: This document is intended for informational purposes only, and EcoVadis does not warrant the accuracy, reliability or completeness of the information, content, text, and graphics herein, and is subject to change without notice.
Limitation of liability: In no event shall EcoVadis or its subsidiary companies be liable for any direct, indirect, special, incidental or consequential damages arising out of the use of any opinion or information expressly or implicitly contained in
this publication.

Copyright © 2023 EcoVadis SAS (Paris, France). All Rights Reserved.

You might also like