EcoVadis in 2024: What you need to know

EcoVadis is one of the main platforms for the 360° evaluation of sustainability management system organizations, based on renowned frameworks and standards such as ISO 26000 or the International Labour Organization.

Used by more than 65,000 organizations around the world, its CSR assessment system allows the largest companies such as L'Oréal, Amazon or Schneider Electric to assess their suppliers and partners on sustainability criteria. It also makes it possible to compare their CSR performances and to select the best ones on an objective basis.

In this article, we will introduce you to:

• The EcoVadis methodology
• The EcoVadis Rating Process
• EcoVadis evolutions in 2024

EcoVadis methodology

The EcoVadis assessment can be carried out on each entity or on an entire group.

The methodology assesses an organization's CSR practices based on four main pillars - environmental, social and human rights, ethics, and responsible procurement (the supply chain) - which are in turn divided into 21 sub-themes: key sustainability issues.

Not all 21 key sustainability issues are relevant for all organizations. They will be activated - or not - depending on:

• the size of the company,
• the company's industry,
• the country or countries where it operates.

For each key sustainability issue, EcoVadis assesses whether you have implemented a solid management system, of which the three main elements examined are:

• Policies: the CSR commitments you have made and the quantitative goals you have set, for example,
• Actions: the impact of CSR actions and initiatives implemented to achieve the objectives set.
• Results: monitoring the results and the impact of your CSR actions and initiatives.

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EcoVadis assessment process in 2024

We share with you the 5 steps to submit the EcoVadis questionnaire:

• Step 1: Enrollment, create your profile on the EcoVadis website and fill in your organization details.
• Step 2: Complete your questionnaire customized. Each question you answer should be justified.
• Step 3: Once your questionnaire has been submitted, EcoVadis analysts will carefully review your answers as well as the evidence provided (6 to 8 weeks).
• Step 4: Once the analysis is complete, you will receive your EcoVadis scorecard, detailing your strengths and weaknesses on each of the pillars.
• Step 5: Then, EcoVadis awards medals or badges based on your performance. They are a guarantee of your CSR performance and can be used to communicate with external stakeholders.

EcoVadis evolutions in 2024

EcoVadis has introduced significant changes in 3 areas, effective since January 1, 2024:

• Scoring & medals,
• 360° watch,
• Technical improvements.

For more details, you can consult the annual EcoVadis Sustain conferences.

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EcoVadis 2024 notes and medals

EcoVadis is committed to continuously reviewing its scoring and medal methodology in order to:

• maintaining regulatory alignment as well as consistency with changes in the role of CSR and sustainability in business,
• maintain its high standards and protect its methodology against increasing cases of greenwashing.

This has resulted in profound changes in the way medals are awarded - here is a summary. This provides a closer overview of the reality of the company's impact on the environment, social, ethical and responsible purchasing.

Medals are now awarded based solely on percentile thresholds.

There are no longer static thresholds associated with each medal level. A company's percentile is calculated at the time the scorecard is published and compares its performance to that of all EcoVadis customers in their database rated over the previous 12 months.

Minimum thresholds on 1 January 2024

• EcoVadis Platinum - 1% of top-rated companies (similar to 2023, without the static threshold of 78/100)
• EcoVadis Gold - 1% of the best rated companies (as in 2023, without the static threshold at 70/100)
• EcoVadis Silver - 15% of the best rated companies compared to 25% in 2023
• EcoVadis Bronze - top-rated companies (35%) against the top-rated 50% in 2023

Implications:

• If you had a score of 60/100 and a silver medal in 2023 and you are not improving, you will probably be demoted to bronze in 2024.
• If you had a score of 53/100 and a bronze medal in 2023 and you are not improving, you will probably be demoted to no medals or to a “Committed” badge in 2024.

Introduction of badges

EcoVadis announced the introduction of 2 new badges in its program:

• The Committed badge recognizes companies that have demonstrated their commitment to sustainable development with a score of 45 or higher.
• The badge Fast Mover Badge rewards companies with a score between 34 and 44 and that have shown a remarkable improvement of more than 6 points compared to their previous score in the last 18 months.

360 Watch

EcoVadis 360 Watch uses advanced artificial intelligence to analyze official statements, court decisions, and factual statements from recognized media or organizations adhering to scientific standards in order to identify positive and negative news related to an organization's sustainability activities.

Since January 2024, and in order to ensure that the conclusions of the 360° Watch are adapted to the size of customers and the complexity of operations, Large Companies are no longer ineligible based on minor conclusions.

Technical improvements

At the end of 2023 and the beginning of 2024, EcoVadis introduced numerous technical improvements in order to improve the user experience of the companies evaluated.

These enhancements include:

• Downloading the questionnaire as an Excel spreadsheet to work on it offline
• The possibility of automatically extending the questionnaire deadline on their own
• Visibility on the validity of 360 Watch results
• Improving the design of medals to allow their authentication
• Alignment with other frameworks and standards, in particular regulatory frameworks

What are the opportunities for companies taking the EcoVadis questionnaire?

Organizations that submit to EcoVadis benefit from a number of advantages. These benefits are as follows:

• A complete diagnosis : EcoVadis is a comprehensive diagnostic tool that allows you to identify your strengths and areas for improvement.
• Comparison/benchmarking : EcoVadis allows you to compare your CSR performance to that of your peers.
• Attractiveness : More than ever, the most successful organizations stand out from their competitors.
• Structure : The EcoVadis methodology is a framework that provides solid foundations and ideas/ suggestions to structure your CSR approach or strategy.

EcoVadis 2024 — Key Takeaways