EcoVadis is a fresh take on what most think of as corporate social responsibility (CSR) a concept that EcoVadis has broadened to what it calls sustainable supply management – an approach that stands on 3 recognizable legs:
- Risk management – brand protection, compliance, as well as reducing supply base risk exposure and improved remediation
- Total cost of ownership reduction – through more effective sourcing, reduced over-specification and lowered compliance costs
- Revenue enhancement – product differentiation, new markets
The company takes a more holistic approach than most and covers a broad range; from assessments, with a stringent certification process (where suppliers can attain different levels of conformance, not just pass/fail), combined with professional services and consultative business insights. The results are also provided as benchmarks to clients to help them assess where they stand. Regarding the suppliers, they are scored in a highly granular fashion, making this more of a continuous improvement journey rather than a quick paperwork one-and-done, which suits the nature of a sustainable operation.
The company has more than 20,000 certified suppliers in its database, spanning close to 100 countries in a total of 150 categories. On the client side, the solution touches suppliers across 120 organizations with a combined total of $1 trillion in annual spend.
Spend Matters finds EcoVadis interesting because of its strong certification process, its robust data model, the many-to-many scalability where buyers gain broader insights and benchmarks and suppliers derive significant savings in staying compliant as well as gain business upside via exposure to EcoVadis' clients.
Clients use the company to stay on top of their supply base and their performance in several areas:
- Environmental – carbon emissions
- Labor practices
- Corruption & bribery
- Product end-of-life