Sustainability Ratings Key to Monitoring Supply Chain Resilience Leading Up to the COVID-19 Crisis
EcoVadis, the world's most trusted provider of business sustainability ratings, released today the fourth annual edition of its Business Sustainability Risk & Performance Index. The report includes insights from global supply chain ratings with analysis on the sustainability scores of more than 40,000 companies as assessed by EcoVadis from 2015 through 2019.
This year's Index also includes a special deep dive topic on carbon emissions reporting as well as two sub-reports - one examining the health crisis risk and preparedness of supply chains before COVID-19 (based on data from January 2019 to April 2020) and another on the Manufacturers of Chemicals and Chemical Products Industry (based on data from 2015 to 2019).
Select highlights from the analyses include:
EcoVadis scores organizations on 21 sustainability criteria across four themes: Environment, Labor Practices and Human Rights, Ethics and Sustainable Procurement. Scores range on a scale from zero to 100, where below 25 represents high risk, 25-44 represents medium risk, above 45 represents good performance, and above 64 is considered advanced. In this year's Index, 57% of companies achieved scores of 45 or higher. This reflects a seven percent jump from the previous three years in which this figure hovered around 49% to 51%, indicating that supply chains may have reached a pivot point and are poised to go 'beyond compliance' to performance and resilience. Data also showed that, in three out of the four themes, small and medium-sized companies continue to outperform their large counterparts.
"Now is the time to accelerate sustainability programs. Although there remains plenty of room for improvement, this pivot point suggests an accelerating trend of supply chain readiness to escape the 'compliance' trap and embrace a performance-management approach to sustainability," added Thaler.
EcoVadis' Index examines performance of both small and medium-sized businesses (organizations with 26-999 employees) and large businesses (organizations with 1,000 or more employees) across five geographic regions and nine industry sectors: light, heavy, and advanced manufacturing, food and beverage, construction, wholesale, transport, information and communication technology (ICT), and finance, legal and consulting.
Visit the EcoVadis Index Online or EcoVadis Index Infographic to view highlights on specific sectors, geographic areas and themes or explore the Sustainability Index and Impact resource center to download all studies and insights in the 2020 EcoVadis Business Sustainability Risk & Performance Index series.
EcoVadis is the world's most trusted provider of business sustainability ratings, intelligence and collaborative performance improvement tools for global supply chains. Backed by a powerful technology platform and a global team of domain experts, EcoVadis' easy-to-use and actionable sustainability scorecards provide detailed insight into environmental, social and ethical risks across 200 purchasing categories and 160 countries. Industry leaders such as Johnson & Johnson, Verizon (News - Alert), L'Oréal, Subway, Nestlé, Salesforce, Michelin and BASF are among the more than 65,000 businesses on the EcoVadis network, all working with a single methodology to evaluate, collaborate and improve sustainability performance in order to protect their brands, foster transparency and innovation, and accelerate growth. Learn more on ecovadis.com, Twitter or LinkedIn.
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