EcoVadis
Definition
EcoVadis is a business sustainability ratings platform that assesses companies across four themes: environment, labour and human rights, ethics, and sustainable procurement. Using a combination of documentation review, industry benchmarking, and third-party data, EcoVadis provides a scorecard from 0 to 100 with medal levels. Over 130,000 companies across 175 countries have been rated.
Why It Matters
EcoVadis ratings are widely used in supply chain management, with many large corporations requiring suppliers to achieve minimum EcoVadis scores. The platform provides a standardised way to assess and compare supplier sustainability performance.
Related Terms
Ethical Supply Chain
An ethical supply chain is one in which all participants – from raw material suppliers to final distributors – operate in compliance with environmental, social, and governance standards. This includes fair labour practices, safe working conditions, environmental responsibility, and anti-corruption measures. Managing ethical supply chains requires ongoing due diligence, auditing, and supplier engagement.
ESG Rating
An ESG rating is an assessment of a company's exposure to and management of environmental, social, and governance risks and opportunities. Provided by agencies such as MSCI, Sustainalytics, and S&P Global, ESG ratings aggregate data from corporate disclosures, news sources, and stakeholder reports. Ratings are used by investors to screen, compare, and evaluate companies on sustainability performance.
B Corp Certification
B Corp Certification is awarded by the non-profit B Lab to companies that meet rigorous standards of social and environmental performance, accountability, and transparency. The certification process involves a comprehensive assessment (the B Impact Assessment) covering governance, workers, community, environment, and customers. B Corps are legally required to consider the impact of their decisions on all stakeholders.
CDP (formerly Carbon Disclosure Project)
CDP is a global non-profit that runs the world's leading environmental disclosure system for companies, cities, states, and regions. Through annual questionnaires, CDP collects and scores data on climate change, water security, and forests. Over 23,000 companies disclose through CDP, making it the most comprehensive source of self-reported corporate environmental data.