ESG Rating FAQs: The Process, Rating Levels, and Reasons Why They Matter
EcoVadis, the leading global supply chain environmental, ethical, and social performance ratings platform, recently awarded Clincierge a Bronze rating. This score places Clincierge in the top 50% of all companies evaluated by EcoVadis.
Clincierge Earns Bronze Sustainability Rating from EcoVadis
Clincierge was recognized for the following in this inaugural business review:
- Commitment to employee diversity and professional development initiatives
- Corporate governance protocols
- Dedication to reducing carbon emissions
Clincierge’s Chief Compliance Officer Joy Arnold recently commented on the designation, saying:
What is ESG?
Environmental, social, and governance (ESG) criteria are used to measure the levels of impact a company has on the world around it.
When compiling an ESG rating, EcoVadis begins with seven management principles:
- Coverage – Deployment of Actions
- 360° Watch Findings (360)
EcoVadis then reviews 21 corporate social responsibility (CSR) criteria across four themes:
- Environment: how a company’s daily business impacts the environment
- Ethics: does the company act in an ethical manner
- Labor and human rights: are hiring, employment, and workplace practices compliant
- Sustainable procurement: includes project set-up, governance structure, assessment and review strategies, action plans, and implementation
Once the above facets are thoroughly reviewed, a company’s ESG rating is determined, and a rating level is awarded. Most companies choose to have their ESG updated on an annual basis to ensure compliance with and continued support of ESG initiatives.
Why is ESG Important?
ESG is critical to the current and future successes of a company. In essence, it helps to assess the sustainability of a business. Today, many companies worldwide request, and sometimes require, ESG scores from their vendors to ensure successful partnerships moving forward.
Who is EcoVadis?
EcoVadis claims to be the world’s largest and most trusted ESG rating provider, evaluating over 75,000 companies globally to date. The company, founded in Paris in 2007, focuses on holding businesses accountable for their environmental impact. Their primary focus is limiting greenhouse gas emissions, with additional emphasis on increasing awareness surrounding corporate effects on the environment.
Their mission statement reads:
“EcoVadis aims to reduce our carbon footprint by creating a sustainability benchmark which rates buyers and suppliers based on their environmental impact.”
Clincierge's Commitment to ESG
Clincierge is very pleased to have received the Bronze rating from EcoVadis. We are committed to periodic ESG reviews moving forward and are aligned with the mission of ESG compliance.
Please view our recent press release for more information on our Bronze ESG rating.