#220 EcoVadis – Platform Your Passport To Winning Sustainable Contracts

We’re past the point of simply saying you’re committed to sustainability, it’s time for tangible and verified action.

This is what many are calling for in response to the recent rise in Greenwashing and subsequent erosion of trust from consumers and other stakeholders regarding any green claims.

As a result, a number of voluntary disclosure schemes have been created to help benchmark and verify organisation’s claims, should they choose to participate. One example being the focus of today’s episode: EcoVadis.

In this episode Mel Blackmore continues with our voluntary disclosure’s series, discussing the ESG rating scheme EcoVadis, what is required to earn a Platinum rating and provides some tips on how to get that Platinum rating.

You’ll learn

·      What is EcoVadis?

·      What are the requirements to achieve a Platinum rating?

·      Top tips for earning an Platinum rating for EcoVadis

·      What are the advantages of earning a Platinum rating?

·      What are the disadvantages of getting involved with EcoVadis?

 

Resources

·      EcoVadis

·      Carbonology

·      Contribute to Mel’s carbon verification commitment research by taking her Survey

 

In this episode, we talk about:

[02:05] Episode Summary – Mel discusses the voluntary disclosure scheme: EcoVadis, including what’s involved with taking part, how to achieve a Platinum rating and the pros and cons of being benchmarked.   

[03:00] Why is there a need for EcoVadis? An increased number of investors and financial institutions, in addition to clients are demanding more than just financial reports. They want to know what a company's environmental footprint is, and at this point, it's time to move on beyond simply making pledges.

This extends to other elements of governance as EcoVadis doubles as a crucial ESG rating scheme.

[04:30] What is EcoVadis? EcoVadis is a globally recognised provider of business sustainability ratings. They assess companies' environmental, social, and ethical performance across 21 indicators and four main themes: Environment, Labor & Human Rights, Ethics, and Sustainable Procurement.

EcoVadis aims to help organisations manage their supply chain sustainability risks and opportunities. If you're a supplier, you've likely received a request from a customer to complete an EcoVadis assessment.

The assessment process involves completing a detailed questionnaire, submitting supporting documentation, and then EcoVadis analysts review your submission and assign a scorecard. This scorecard provides a detailed breakdown of your performance across the four themes and assigns an overall score and a medal status: Bronze, Silver, Gold, or Platinum.

It’s this medal status that’s crucial, especially those coveted Gold and Platinum badges, which signal to your customers that you are a top-tier performer in sustainability.

[05:40] We want to hear from you: Mel is currently running some research around CDP and the key drivers behind carbon emission verification, and would appreciate your feedback if you have a few minutes to spare.

The results are completely anonymous, and it should only take 5 – 10 minutes. You can take the survey here.

Thank you in advance to any contributors!

[06:05] What is required to achieve an Platinum Rating? – While EcoVadis assesses across four themes, the 'Environment' theme often carries significant weight, and within that, greenhouse gas (GHG) emissions management is paramount for the higher ratings.

To earn an EcoVadis Platinum rating, you'll generally need to achieve an overall score between 78-100 out of 100. Key areas that you need to excel in include:-

1) Comprehensive Environmental Management System: This includes policies, actions, and reporting on a wide range of environmental issues. For Platinum, EcoVadis expects to see highly structured and systematic approaches to environmental management.

2) Robust GHG Emissions Management: For this you need to:

·      Measure your GHG Emissions: Accurately calculate your Scope 1, Scope 2, and significant Scope 3 emissions. EcoVadis places increasing emphasis on Scope 3, as it often represents the largest portion of a company's footprint.

·      Set Ambitious Targets: Have clear, quantitative targets for GHG emission reduction. Aligning these with a science-based target (SBTi) is highly advantageous and often a de facto requirement for Platinum.

·      Implement Reduction Initiatives: Demonstrate concrete actions you are taking to reduce emissions, such as investing in renewable energy, improving energy efficiency, optimizing logistics, or engaging your supply chain.

3) Independent Verification of GHG Emissions Data: This is a non-negotiable for Platinum and often for Gold. EcoVadis awards significant points for having your Scope 1 and Scope 2 GHG emissions (and increasingly, relevant Scope 3 categories) independently verified by a third-party accredited body. This provides assurance that your reported data is accurate and reliable. As a CDP accredited verification body, we routinely help companies through this process, and it makes a profound difference in their EcoVadis and overall ESG scores.

4) Strong Policies and Actions Across All Themes: While we're focusing on environment, remember Platinum requires excellence across all four EcoVadis themes:

·      Labor & Human Rights

·      Ethics

·      Sustainable Procurement

Implementing Standards such as ISO 37001 (Anti-Bribery and Corruption), ISO 27001 (Information Security), ISO 20400 (Sustainable Procurement) can help put some of these in place.

5) Effective Reporting and Transparency: You need to clearly articulate your policies, actions, and performance data within the EcoVadis questionnaire. This includes providing high-quality, relevant supporting documentation. To get the best result, don't just tick boxes; provide evidence!

6) Continuous Improvement: EcoVadis looks for evidence of ongoing improvement. It's not a one-off assessment; it's about demonstrating a commitment to continually raising your standards.

[14:20] How to get an EcoVadis Platinum Rating with verified data? – Here’s a few tips:

·      Start Early and Plan Strategically: Don't wait until the last minute. The EcoVadis assessment requires significant time and effort. Plan your data collection, policy development, and verification process well in advance.

·      Understand the EcoVadis Methodology: Download the EcoVadis methodology and scoring criteria. These double as guidance documents that explain what they're looking for in each section. Tailor your responses and documentation accordingly.

·      Invest in carbon accounting software: Accurate and consistent data is paramount. Implement systems (whether software or well-organized spreadsheets) to track your energy consumption, waste, water use, and especially your GHG emissions.

·      Prioritize GHG Emissions Verification: Engage a reputable, accredited third-party verification body (like Carbonology 😉) to audit your Scope 1 and Scope 2 GHG emissions. Ensure the verification covers the reporting period relevant to your EcoVadis assessment. This provides the external assurance EcoVadis demands.

·      Address All Four Themes: While environmental performance is crucial, don't neglect Labor & Human Rights, Ethics, and Sustainable Procurement. A weak score in one area can pull down your overall rating.

·      Leverage External Expertise: If you're new to EcoVadis or aiming for a significant jump in your score, consider consulting with experts. They can help you identify gaps, optimize your strategy, and ensure your documentation meets EcoVadis's requirements. Blackmores consultants are able to provide support if you’re seeking an EcoVadis rating.

·      Continuous Improvement: Use the EcoVadis scorecard feedback to identify areas for improvement. Implement corrective actions and integrate them into your ongoing sustainability strategy. This commitment to continuous improvement is a strong indicator of a Platinum-level company.

[16:40] The pros and cons of EcoVadis: Many of these share similarities with the Carbon Disclosure Project, which we covered in a previous episode. To summarise:

Pros:

·      Enhanced Reputation and Brand Value

·      Risk Management and Resilience

·      Cost Savings and Operational Efficiency

·      Competitive Advantage

·      Innovation and Strategic Planning

·      Benchmarking and Peer Learning

Cons:

·      Resource Intensive

·      Potential for Negative Public Scrutiny

If you’d like any assistance with carbon verification, get in touch with Carbonology, they’d be happy to help!

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