Introduction

More and more companies hear the phrase from their business partners: “Please take part in the EcoVadis rating.” For many suppliers, this sounds mysterious and stressful, so it is worth explaining what it means and how to prepare for it.

EcoVadis is a system for assessing companies in the area of ESG, that is environment, social issues and corporate governance. Customers use EcoVadis to quickly see how a supplier approaches topics such as environmental impact, workers' rights and business ethics, and how mature the organisation is in the ESG context. The goal is to build cooperation that ensures transparency across the value chain.

In this article, we explain in simple terms what EcoVadis is, how the assessment works, what the medals mean and how to prepare your company for the process. Used properly, the EcoVadis rating can become an element that genuinely strengthens your position in key customer relationships.

How EcoVadis emerged

The largest European companies listed on stock exchanges are now required to report how they impact the environment and people, including within their supply chains. In practice, this means they need to better understand and assess their suppliers.

For years this was done in many different ways. Customers sent their own questionnaires, often long, repetitive and inconsistent. Suppliers lost time answering dozens of similar questions in different formats. There was also a lack of an institution that could verify these answers and confirm their reliability.

EcoVadis was created as a paid platform for assessing companies' sustainability performance. With the right subscription, one rating can be shared with many customers. The company completes a single questionnaire, submits its documentation, and the system, with support from sustainability specialists who review the documents, prepares a scorecard. This is the company’s performance card. The customer immediately sees how a given supplier compares with others and in which areas there is still room for improvement. In many business relationships, sometimes already at the tender stage, the EcoVadis rating is one of the criteria for selecting a supplier.

What is EcoVadis in practice?

EcoVadis is a global platform that:

• assesses companies on a scale from 0 to 100 points,
  
• covers four themes: environment, human and labour rights, ethics and sustainable procurement.
  

After the assessment, the company receives a scorecard. This is a report that shows:

• the overall score,
  
• scores in each of the four themes,
  
• a list of strengths,
  
• a list of improvement areas.
  
  

The key point is that the customer does not have to read hundreds of pages of documentation. It is enough to look at the score, medal and a few key indicators and recommendations.

How the EcoVadis assessment works step by step

EcoVadis is based on three main elements: policies, actions and results.

1. Policies

EcoVadis checks whether the company has documented rules and commitments, for example:

• an environmental policy,
  
• an anti-corruption policy,
  
• a code of ethics,
  
• health and safety (OHS) rules,
  
• a human rights policy,
  
• certifications related to sustainability, etc.
  

2. Actions

Documents alone are not enough. What matters is whether the company actually acts in line with what it declares. Examples include:

• training for employees,
  
• a whistleblowing system,
  
• a supplier assessment and verification process,
  
• environmental programmes and projects, e.g. in the area of circular economy or decarbonisation,
  
• activities related to occupational health and safety.
  

3. Results

EcoVadis also looks at quantitative data and indicators, such as:

• energy consumption,
  
• emission levels,
  
• waste volumes,
  
• number of workplace accidents,
  
• workforce structure.
  

The company completes a questionnaire and attaches documents. EcoVadis analysts verify whether the answers correspond with the supporting evidence. The system also uses the 360° Watch feature. This is a mechanism that scans external sources, such as media, NGO reports, databases and sanctions lists. It looks for information on major violations, scandals or recognitions linked to the company.

EcoVadis medals: what do they mean?

Based on the score, a company can receive a medal. This makes it easier to quickly assess a supplier.

The possible recognitions are at four levels:

• Platinum,
  
• Gold,
  
• Silver,
  
• Bronze.
  
  

Receiving a medal means that the company is in a specific top percentile of rated companies during a given period. The higher the medal, the higher the percentile rank compared with the entire pool of rated companies. In addition, to receive a medal, a company cannot have a very weak score in one theme, as minimum scores are also required at the thematic level.

The lack of a medal does not automatically mean that the company is performing poorly. It may, for example, indicate:

• an early stage in the ESG journey,
  
• a lack of documentation for existing practices,
  
• a score below the medal thresholds.
  

At the same time, it is a signal that there is still a lot to do or to organise.

Why customers require EcoVadis

Large organisations use EcoVadis mainly for three reasons.

1. Risk management
   The rating helps identify suppliers that may pose ESG-related risks.
   
2. Meeting reporting requirements
   The largest enterprises are required to report the impact of their entire supply chain and to demonstrate due diligence in ESG. EcoVadis makes it easier for them to collect the necessary data from suppliers.
   
3. Supplier comparison
   Suppliers from different countries and industries are assessed using a consistent methodology. This supports:
   
   1. comparing suppliers,
   2. assessing new suppliers in qualification processes,
   3. periodic reviews and renewal of cooperation.
      
      

In practice, EcoVadis becomes a filter. Without a rating or with a very low score, it may be more difficult to enter a supplier panel, win a tender or maintain key supplier status, especially with the most demanding customers.

How to prepare your company for EcoVadis

1. Organise what you already have

To start with, it is worth conducting a simple review of:

• internal regulations and policies (OHS, environment, ethics, HR, procurement, anti-corruption, human rights),
  
• certificates (e.g. ISO 9001, ISO 14001, ISO 45001),
  
• quantitative data (energy, emissions, waste, accident rates, employee turnover),
  
• procedures (e.g. how you verify your suppliers, how irregularities are reported).
  

It often turns out that the company already does quite a lot, but this is not structured in one place or translated into the language that customers expect.

2. Build a team, do not do it alone

EcoVadis covers many areas at once. Typically, you will need people from:

• ESG or sustainability,
  
• HR,
  
• OHS,
  
• the procurement department,
• compliance or the legal department,
• and sometimes production.
  

One person should coordinate the work, but should not try to do everything alone. It is a cross-functional project.

3. Organise documents and policies

At this stage, you will often need to:

• create missing policies,
  
• update existing documents so that they match current practice.
  

What you state in the EcoVadis questionnaire must be consistent with your documentation. Analysts really do read it and check for alignment.

4. Organise ESG data

EcoVadis is not a one-off exercise. The score is valid for 12 months and then the process typically returns in the form of a reassessment. It is worth building a permanent way of collecting data.

You can use tools such as our Quantifier platform to structure indicators and documents for ratings and reporting, and to manage projects related to ESG, regulations and standards. Our platform also supports ESG reporting aligned with the European Sustainability Reporting Standards (ESRS), which serve as a basis for confirming statements made in the EcoVadis questionnaire.

Practical use of the EcoVadis result

The EcoVadis rating does not have to be just a “box-ticking requirement”. You can use it to your advantage, as the score and medal can be:

• attached to offers,
  
• showcased in presentations and client meetings,
  
• placed on your website and in marketing materials,
  
• used in employer branding communication.
  

It sends a clear signal that the company takes ESG seriously and has undergone an independent assessment.

The future of EcoVadis and ESG ratings

The importance of EcoVadis and similar ESG ratings will grow in line with regulations, reporting requirements and expectations of large customers, as well as stakeholder pressure to demonstrate ESG maturity and climate resilience. Companies are increasingly required to report not only their own actions, but also the impact of their entire supply chain on the environment and people. Naturally, this increases the significance of ratings that structure this information in a standardised way.

EcoVadis is expanding its tools, especially in areas related to emissions and climate. Additional modules focused on decarbonisation and supply chain emissions management are appearing more and more often. As a result, companies that treat EcoVadis seriously and embed it in their ESG strategy gain an advantage over those that only aim to meet minimum requirements.

Summary: how Quantifier can help

At Quantifier, we support companies throughout this process. We help:

• prepare for the first EcoVadis assessment or refresh an existing rating,
  
• organise and supplement policies, procedures and documents required in the questionnaire,
  
• build a transparent system for collecting and updating ESG data,
  
• assign responsibilities and tasks within individual departments,
  
• translate recommendations from the scorecard into a concrete action plan for the coming years, which then becomes the basis for developing an ESG strategy that can also be presented in the EcoVadis assessment form.
  
  

FAQ: short answers to the most common questions

1. Is EcoVadis the same as ISO?
No. ISO is a certificate issued after an audit against a specific standard by a certification body. EcoVadis is an ESG rating. The company receives a score on a points scale, a scorecard and possibly a medal, but it is not a certificate in the sense of ISO standards.

2. How often does the EcoVadis assessment need to be renewed?
The EcoVadis scorecard is valid for 12 months from the date of publication. To maintain an up-to-date score and medal, the company will typically undergo a new assessment roughly once a year. The exact frequency is also influenced by the requirements of specific customers, who usually expect a current, not outdated rating. On top of that, each year the assessment includes more factors and it becomes more difficult to achieve the same score as before, since progress is being evaluated.

3. Do small companies also need EcoVadis?
Often yes, if they work with large corporations or want to enter their supplier panels. The scope of questions is tailored to the size of the company, industry and country, but a certain minimum of information and documentation is required from everyone.

4. What if the score is low or there is no medal?
This is a sign that you need to analyse what is missing to reach a higher score. It is important to:

• analyse the scorecard and recommendations,
  
• prepare an improvement plan for the coming months and years,
  
• present this plan to key customers.
  

Many companies accept suppliers with lower scores if they see genuine improvement efforts and concrete actions.

5. Can you “boost” the score without real actions?
In short: it is not worth it. EcoVadis verifies documents, checks the consistency between what the company declares and what it does, and reviews external information. An overly perfect picture without substance can lead to problems in subsequent assessments, loss of credibility and tension in client relationships. It is much better to improve real practices step by step and document what the company actually does.