Boost your EcoVadis Score
The importance of corporate ESG ratings continues to accelerate globally. Investors, financial institutions, and big brands use them to identify which Environmental, Social, and Governance topics are “material” to an organization’s short-, medium-, and long-term financial performance.
Course Overview
What you'll learn
Upon completion of this training, students will be able to:
- Understand and explain EcoVadis’ organization, history, and relevance.
- Access and understand their own organization’s EcoVadis scores, theme weightings, peer comparisons, disclosure weightings, and industry risk levels.
- Understand and explain the 5 stages of performance that successful ESG and sustainability initiatives develop through.
- Begin drafting a road map of quick wins, short-, medium-, and long-term activities that (if completed) would boost your organization’s EcoVadis score most quickly.
Who This Course Is For
- Professionals working within organizations that use or have been asked by a large customer to use, the EcoVadis platform.
- Professionals tasked with improving their organization’s EcoVadis score and rating: Bronze, Silver, Gold, or Platinum.
About this course
The importance of corporate ESG ratings continues to accelerate globally. Investors, financial institutions, and big brands use them to identify which Environmental, Social, and Governance topics are “material” to an organization’s short-, medium-, and long-term financial performance.
- Sustainable investing grew from less than $1 trillion in 1995 to $16.6 trillion by 2020, in the United States alone.
- According to a 2020 survey of 2,800 CFA Institute members, the top 5 drivers of ESG investment are: investment risk management (64%), client or investor demand (59%), fiduciary responsibility (43%), reputational benefits (41%), and financial returns (35%).
- McKinsey reported in 2022 that of 2,000 academic studies, 70% find a positive relationship between ESG scores and equity returns, profitability, and valuation multiples. They said there is evidence that better ESG scores access roughly 10% lower cost of capital.
Financial analysts now include ESG risk assessment and performance in their valuations. Their source of their data is most often reputable ESG rating agencies with operational history and public data. The most common examples are DJSI (Dow Jones Sustainability Index), ISS (Institutional Shareholder Services), MSCI (Morgan Stanley Capital International), Sustainalytics, and EcoVadis.
EcoVadis was founded in 2007. An ESG rating agency with private scores, it has become the popular platform for larger public brands to get visibility on ESG performance within their supply chain. Participation on their platform is growing faster than all other rating agencies with over 100,000 reporting organizations, most of them being small- or medium-sized and privately-held.