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Impact-Assessing Initiatives

EcoVadis Hopes to Gauge Millions of Companies on an ESG Scale

— July 27, 2022 — Eco
'EcoVadis' is a new performance-analyzing startup that has announced a new environmental, societal and governance (ESG) initiative. The company assesses and ranks the ESG score of companies based on their impacts to the environment and to society as a whole. According to EcoVadis, this is a very difficult process as the company uses an in-depth methodology that judges more than 28 points of data to determine the true impact of a company.

Currently, EcoVadis has scored approximately 90,000 companies on its database. However, EcoVadis' co-CEO, Pierre-Francois Thaler, stated that in the supply chains for the top Fortune2000 companies there are more than two million active companies. In the coming years, EcoVadis hopes to determine the ESG scale of each of these two million companies to increase reputation, transparency, and to push the many supply chains toward positive change.

Image Credit: Shutterstock
Trend Themes
1. Supply Chain ESG Assessment - Startup companies will be able to assess the ESG score of supply chains to identify gaps and opportunities for positive change.
2. Impact-based Rankings - Businesses will be judged on more than 28 points of data to determine their true impact on the environment and society in order to increase reputation and transparency.
3. Environmental and Social Responsibility - Companies will be held to a higher standard as environmental, societal and governance (ESG) metrics and initiatives are becoming increasingly important in business evaluations.
Industry Implications
1. Supply Chain Management - Supply chain management professionals can utilize ESG assessments to promote transparency and positive change within their industry.
2. Data Analytics - The development of new methodologies for measuring impact will lead to opportunities in data analysis for companies that prioritize environmental and social responsibility.
3. Corporate Social Responsibility Consulting - The increased importance of ESG metrics and initiatives will require more consulting services to help businesses understand and improve their social and environmental impact.
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