Ecovadis Business Sustainability Rating similar to STeP and BSCI
Ecovadis Business Sustainability Rating
Different company activities have received an Ecovadis Business Sustainability Rating. EcoVadis ranks companies for environmental responsibility, ethical treatment of workers and other practices. It is similar to STeP certification and the BSCI auditing methodology, also applied at the Sioen group. EcoVadis allows companies to assess the environmental, social and governance performances of their global suppliers.
What is Ecovadis
EcoVadis is a private company, a French technology firm that ranks companies for environmental responsibility, ethical treatment of workers and other practices. They provide this Corporate Social Responsibility (CSR) ratings service and aim to make CSR performance measurable, increase transparency and stimulate continuous improvement in the field of CSR.
Practically, EcoVadis operates an evidence-based online platform, providing supplier sustainability ratings and allowing companies to assess the ESG (Environmental, Social and Governance) performance of their global suppliers. It considers a range of CSR issues, which are grouped into four themes: ‘Environment’, ‘Labour & Human Rights’, ‘Ethics’, and ‘Sustainable Procurement’.
There’s a valid increased peer pressure on companies to become more vigilant about rooting out child labour and other violations and about installing sustainable production processes and producing sustainable products.
We’re very happy that international organisations such as the United Nations and ISO (International Standards Organisation) are drawing up standards and goals that are internationally accepted.
Private initiatives such as EcoVadis, Amfori and Oeko-Tex, to name a few are an add-on to these standards (even though the requirements/ criteria are very similar). Big brands are asking their suppliers to join such a private initiative of the like of EcoVadis and those suppliers in turn are asking their suppliers and so on.
Users, mostly procurement teams at major corporations, pay a monthly fee for access to EcoVadis supplier rankings based on 21 criteria. The data range from toxic mineral use to forced labour and environmental violations.
EcoVadis has defined 21 CSR criteria, based on international sustainable development standards. Among these 21 criteria, EcoVadis selects the ones that are relevant for the company that consults the listing. This is based on the companies’ specific challenges, as well as on the geographical location and company size. The central objective of the rating is to measure the quality of a company’s CSR management system through its policies, actions, and results. Providing supporting documentation is a key part of the assessment.
The EcoVadis sustainability recognition levels are based on the percentile ranking of the EcoVadis score of the company, and a minimum theme score. The medal criteria are reviewed annually.
The criteria for scorecards published in 2020 are as follows:
- Platinum - top 1% (overall score between 73 and 100)
- Gold - top 5% (overall score between 66 and 72)
- Silver - top 25% (overall score between 54 and 65)
- Bronze - top 50% (overall score between 45 and 53)
The Sioen industries Group is a conglomerate of companies. There’s not 1 score but multiple scores for our company’s different types of activities. This might lead to confusion for customers that want to buy e.g. professional protective clothing from Sioen and see the silver rating of our Chemicals division.