EcoVadis Supply Chain Sustainability Auditing Is Demonstrating Its Investment Value
EcoVadis, a provider of sustainability supply chain data, has announced its receipt of a $200 million investment from CVC Growth Partners. The funding is intended to further scale EcoVadis operations globally and expand its auditing of suppliers’ sustainability efforts, labour practices and business ethics. The EcoVadis investment is one example of the market’s growing attention to sustainability and ESG (environmental, social and governance) metrics. Growing beyond firms’ statements on engineering more sustainable products, conducting their activities in socially responsible ways and establishing leadership objectives, the increasing use of key performance indicators (KPIs) and metrics-based analyses demonstrates firms’ growing attention to sustainability auditing across industries.
In our most recent global survey of 403 EHS decision-makers, 37% of respondents said that, during 2020, they will use software to support their sustainability programmes across all operations or at multiple facilities (see Verdantix Global Corporate Survey 2019: EHS Budgets, Priorities & Tech Preferences). These values compare with our 2018 survey of 411 EHS decision-makers, in which 63% of respondents said that they would use SMS tools across all operations or at multiple facilities during the coming year (see Verdantix Global EHS Leaders Survey 2018: Budgets, Priorities & Tech Preferences). Although these values note that only a subset of firms are prioritizing sustainability performance measurement, Verdantix conversations and interviews with EHS decision-makers show that the focus is to more deeply clarify a firm’s specific impacts using precise data.
The EcoVadis announcement and what it means for assessing supply chain sustainability align with these findings. Many firms, especially those in extractive industries, power utilities and consumer products, are responding to stakeholders’ emerging questions about their operations management, suppliers’ performance and impact reporting for factors such as water effluents, air emissions, solid and hazardous wastes, and greenhouse gas (GHG) emissions. As the market calls for more detailed tracking of actual practices across a firm’s ESG areas of influence, interest in tools such as the EcoVadis offerings will continue to grow.