riskmethods / Munich, September 27, 2014 – By teaming up with EcoVadis, provider of the first shared platform for monitoring suppliers as regards standards related to sustainability and corporate social responsibility (CSR), riskmethods, the technological market leader for risk assessment of global supply chains, has entered a comprehensive collaboration. The EcoVadis rating for CSR and sustainability can now automatically be included in the risk scorecard of riskmethods’ “Supply Risk Network”, thereby allowing work, social and environmental standards to be scrutinized. The EcoVadis rating assesses the performance of suppliers taking into account 21 CSR and sustainability criteria. The EcoVadis methodology observes international GRI/G4 (GRI Sustainability Reporting Guidelines) and ISO 26000 Guidelines.
Besides quality, delivery capability and price, image is a key factor for organizations that operate and procure on a global basis when it comes to how they are perceived and their success. The reputation of a company can quickly be jeopardized if a manufacturer does not pay sufficient attention to the conditions under which contract manufacturers and suppliers in foreign countries produce goods. This requires comprehensive scrutiny of social, working, environmental and production conditions at suppliers along the entire supply chain.
For this reason riskmethods is expanding its range of services and working together with EcoVadis, the leading provider of the first internet platform for analyzing sustainability and CSR standards at suppliers. riskmethods’ risk scorecard for compliance and image can from now on be automatically supplemented with the ratings and data provided by EcoVadis.
“Knowledge about the sustainable production process is a basic competitive advantage in respect of competitors who have not yet recognized the meaning of a sustainable supply chain and production. Questions such as ‘from where’, ‘where’, ‘how’, ‘at what salary’, ‘under what conditions’ and, above all, ‘from whom’ goods originate and how they are manufactured there influences the purchasing behavior of customers,“ says Pierre-François Thaler, Co-founder and President of EcoVadis.
Access to sustainability ratings from EcoVadis means that riskmethods’ customers receive additional information on suppliers‘ delivery capability according to 21 CSR criteria that are divided into four dimensions: environment, working conditions and social responsibility, fair business practices, and sustainable procurement.
In addition, the methodology implemented by EcoVadis for CSR evaluation complies with international GRI/G4 and ISO 26000 Guidelines. “Especially organizations that produce and procure in developing and emerging countries are faced with the enormous challenge of ensuring a sustainable supply chain,” says Pierre-François Thaler. “Those who scrutinize their suppliers using the methodology from EcoVadis fulfill international requirements for CSR and sustainability, such as those of UN Global Compact or the Global Reporting Initiative.”
The ratings from EcoVadis are automatically integrated into the four dimensions in the risk scorecard of riskmethods’ “Supply Risk Network”. Where required, riskmethods provides its customers with an in-depth report on their suppliers that contains additional details on the 21 sustainability criteria, industrial benchmarks or even action plans.
“We’re very pleased to have gained EcoVadis as a partner. The rating from EcoVadis will contribute significantly to making the approach used by suppliers in terms of the environment and social responsibility even more transparent,” says Heiko Schwarz, Managing Director of riskmethods. “At the end of the day, many end customers don’t only focus on the price at the cash point when procuring a product, but are also concerned at what price the product was placed on the market.” This includes all third-party suppliers of a supply chain. Poor working conditions at a supplier that are not compliant with CSR requirements can consequently impact severely on an organization in the form of a bad reputation. “Substantial loss is incurred, which significantly influences corporate development,” says Schwarz.
EcoVadis operates the 1st collaborative platform, allowing companies to assess the environmental and social performance of their global suppliers. EcoVadis combines technology and expertise to deliver simple and reliable „supplier sustainability scorecards“, covering 150 purchasing categories, 21 CSR indicators and 120 countries. EcoVadis ratings are compatible with GRI/G4 and ISO 26 000 Guidelines. EcoVadis helps businesses reduce risks and drive performance and innovation in their supply chain. More than 100 global, multinational companies have selected the EcoVadis solution, including Fortune 500 companies such as Axa, Alcatel-Lucent, Coca Cola Enterprises, Heineken, Orange, Johnson & Johnson, Lafarge, Renault-Nissan, Schneider Electric and Verizon.
riskmethods provides companies with a comprehensive supply chain risk management solution for proactive monitoring and assessment of risks in the supply chain. An early warning system for potential risk ensures that proactive steps can be taken to avoid supply interruption, enforce compliance and protect the corporate image. The SaaS solution „Social Supply Risk Network“, which was developed in Germany, combines state-of-the-art technology with cutting-edge provision of risk intelligence, to establish a leading standard in supply chain risk management.