EcoVadis vs. CSRD

The pressure around CSR issues is increasing for companies, whether in terms of regulatory expectations or stakeholder requirements.

With the arrival of the European CSRD directive, which imposes a strict framework for extra-financial reporting, and the multiplication of voluntary evaluations such as EcoVadis, organizations must juggle all these requests.

How can we respond effectively to these two approaches without multiplying efforts? This article invites you to explore the links between CSRD and EcoVadis, by showing how to harmonize your actions and optimize your CSR strategy. You will find the following points:

1. Understanding CSRD and EcoVadis: the purposes and requirements
2. Identify common points: dual materiality, documentation, and the PDCA
3. The steps to align your work
4. Our practical advice to avoid duplicating your efforts

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What is the European CSRD directive?

The CSRD (Corporate Sustainability Reporting Directive) is a European directive that replaces and extends the NFRD (Non-Financial Reporting Directive). Its aim is to improve the transparency and quality of information on corporate sustainability.

It applies to more than 50,000 businesses, compared to 11,700 previously, and requires a much more detailed report on environmental, social and governance issues.

This directive introduces a reporting method with common standards (ESRS), requires an analysis of double materiality (impact of the company, risks and opportunities for it) and makes external audit mandatory. And, the reports must be provided in a standardized digital format, for greater transparency and consistency at European level.

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What is an EcoVadis assessment?

The EcoVadis assessment is a platform that assesses the sustainable performance of companies on the following pillars: environmental, social, ethical and sustainable purchasing.

It allows companies to prove their CSR commitment, to strengthen trust through transparent evaluations, and to compare themselves with others thanks to common standards.

EcoVadis is often used to meet the expectations of customers and partners.

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Ecovadis, CSRD, different purposes

These two frameworks have very different purposes, even though they both deal with sustainability.

• EcoVadis is a voluntary CSR assessment tool. It helps businesses identify risks in their supply chain and to demonstrate their commitment to sustainability to their customers. With over 130,000 businesses evaluated, it is a real Lever of competitiveness in B2B relationships, using a private methodology based on documented evidence.
• The CSRD, on the other hand, is A European directive obligatory Which imposes on approximately 50,000 businesses to provide detailed reports on their sustainability. It follows a public methodology and requires external assurance by an accredited auditor. Unlike EcoVadis, its main purpose is to Ensuring regulatory compliance rather than being used as a differentiating tool.

In short, EcoVadis helps businesses stand out in B2B, while the European Directive is a mandatory framework that sets the rules of transparency and communication for businesses in Europe.

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Ecovadis, CSRD, lots of similarities

Even if their purposes differ, they are two tools that help companies integrate sustainability into their strategy, encouraging them to better assess, structure, document and communicate their CSR practices.

What we find in these two frames:

• The double materiality,
• The PDCA,
• The proof system with documentation.

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Double materiality

The principle of double materiality consists in evaluating two different aspects:

• The impact of the company on the environment and society (“inside-out” materiality), impact materiality.
• Sustainability-related risks that may affect the company financially (“outside-in” materiality), financial materiality.

The concept of double materiality helps businesses identify and prioritize their key issues. Although the CSRD (with the 12 ESRS) and the EcoVadis Key Sustainability Issues (KSI) are not the same, they cover very similar topics.

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SERS: These are European standards defining specific criteria for sustainability reporting. They cover topics such as the environment, human rights, governance, and the fight against corruption, to ensure transparency and comparability in Europe.

EcoVadis KSIs: these are evaluation criteria measuring CSR performance on similar themes: environment, social, ethical and responsible purchasing.

To define your sustainability challenges, you can use the ESRS themes or the 21 EcoVadis KSI, as they overlap.

These two frameworks provide you with a solid basis for identifying material topics and setting priorities.

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The PDCA

PDCA is a method used to allow companies to set up an approach and develop it in a desire for continuous improvement. It is used in CSRD, in EcoVadis but also other standards such as some ISO standards.

Here's how PDCA breaks down:

• Map, the definition of quantified and dated commitments and objectives to be achieved.
• Do, all the actions put in place to achieve the objectives set.
• Check, the implementation of reporting to measure your results and define whether your objectives are being achieved.
• Act, updating your strategy based on the results obtained.

The documentation

In both of these frameworks, documentation plays a key role in proving that the CSR management system is solid.

In EcoVadis, documentation is used to justify the company's CSR practices for its evaluation, while for the European directive, documentation is a legal requirement to prove compliance with European standards.

Some expectations are similar, here is what will be commonly asked:

• Structured CSR policies: businesses must present their environmental, social, ethical and responsible purchasing policies.
• Concrete actions: evidence of initiatives implemented, e.g. training programs, action plans to reduce environmental impact, supply chain audits.
• Quantitative data and accurate indicators and trackable: measurements on greenhouse gas emissions, energy consumption, accidents at work, or other KPIs related to sustainability.
• Third-party reports or audits: Businesses can provide audits (for example, ISO 14001, SMETA) to support their evidence and in the CSRD, reports should be verified by an accredited auditor to ensure regulatory compliance.
• Follow-up documentation: Businesses must demonstrate that they regularly follow their goals and that they adjust their strategies if necessary (PDCA logic in both cases).

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The 5 main steps to align its EcoVadis work with the CSRD

Although they have different goals, these frameworks complement each other perfectly. By exploiting the data and analyses in your CSRD report, you can not only meet regulatory requirements, but also strengthen the quality of your EcoVadis assessment. This integrated approach allows you to be more effective in order to better value your sustainability practices.

Here it is Our 5 practical tips for using your CSRD report to improve your EcoVadis performance :

Identify common challenges

Compare thedouble materiality analysis (CSRD) with Key Sustainability Issues (KSiS) from EcoVadis. Find themes that intersect, such as the environment, human rights, or governance, to avoid working on the same topics twice. For CSRD, you can refer to themes, sub-themes, or sub-sub-themes.

Harmonize indicators

Adapt your indicators so that they meet both CSRD requirements and EcoVadis reporting. For example, EcoVadis asks you to follow your scope 1, 2 and 3 emissions, as does the CSRD.

Set or update goals

Based on the challenges identified and the latest available data, set goals quantitative and dated (reduction of 25% emissions by 2030, improvement of working conditions, etc.) that meet the expectations of both frameworks.

Revise your policies

Verify the expectations of the CSRD on the drafting of policies (they are notified in the expected Disclosure Requirements (DR) and Data Points (DP)) and formalize the structure of the document so that it can be used during the EcoVadis evaluation.

Adapt your action plans and traceability

Define or adjust your action plans to meet the requirements of both systems. Use formalized documents to prove your steps. Many EcoVadis measurement documents can be used to respond to CSRD DRs or RFPs on similar topics.

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Our advice to better respond to EcoVadis thanks to the CSRD report

Your CSRD report is a gold mine to justify and value your practices in EcoVadis. By exploiting these data and analyses, you improve the consistency of your approaches and increase your chances of getting a good score.

• Capitalize on the detailed information of the European directive, reuse this information to answer EcoVadis questions, including those related to your goals, impact measures, and action plans.
• Justify with solid evidence, use CSRD data and documents to justify responses in EcoVadis. For example, environmental indicators (CO₂ emissions, waste management) can support your claims.
• Highlight your materiality matrix, EcoVadis values the existence of a materiality matrix as part of its evaluation. The double materiality analysis required by the CSRD can directly meet this requirement and improve your score.
• Rely on external insurance from CSRD, a key factor in the EcoVadis score is external validation (audits, certifications). The verification of your CSRD report by an independent third party organization (OTI) is a major asset that can meet this requirement.
• Gain consistency and efficiency, by aligning the two approaches, you avoid multiplying efforts while strengthening the credibility and quality of your answers in EcoVadis.

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Conclusion

With the entry into force of the CSRD and the rise of evaluations like EcoVadis, companies now have to juggle regulatory requirements and the expectations of their stakeholders.

Although their goals are different — CSRD aims for legal compliance and transparency, while EcoVadis values CSR performance for competitiveness — these two frameworks share common points.

Aligning your efforts between these two approaches can not only simplify your work, but also strengthen your overall sustainability strategy. Here are 5 key steps to take advantage of your EcoVadis shares and respond effectively to CSRD obligations.