A new report by EcoVadis has found that businesses around the world are stepping up their ESG efforts, with the number of sustainability ratings conducted globally growing 167% over the past five years.
The ninth edition of the Global Supply Chain Sustainability Risk & Performance Index, which analysed 89,000 companies, found that the Asia Pacific region has made the strongest gains, with firms increasing their average score by three points across all four sustainability themes (Environment, Labor & Human Rights, Ethics and Sustainable Procurement).
Asia Pacific businesses have also ‘pulled ahead’ of North America when it comes to environmental performance, and are closing the gap when it comes to sustainable procurement. However, the region still trails both North America and Europe in areas such as labour, human rights, and ethical practices.
From assessment to action
As EcoVadis noted, its data indicates a broad movement from assessment to action, with more than a quarter (27%) of companies with multiple ratings now classified as ‘top performers’, more than double the number from 2020.
‘This shows that long-term efforts to improve business sustainability efforts are starting to deliver real progress,’ EcoVadis said.
Other findings from the report include that China has overtaken the United States in total ratings activity, following a 37% increase in 2024, while France remains the top country for sustainability rankings. Africa and the Middle East posted the highest regional growth at 42%, followed by Europe at 33%.
First-time assessments continue to uncover significant blind spots, it added, with many companies – particularly in the US and China – scoring in the high- to medium-risk range. The average EcoVadis score rose to 53.4 in 2024.
‘Stay committed’
“In a noisy political environment, supply chain performance tells a clearer story,” commented Sylvain Guyoton, chief rating officer at EcoVadis. “The Index takes that sentiment one step further, offering evidence that supply chain partners are following through.
“Companies that stay committed to business sustainability efforts are reaping the benefits – risk reduction, resilience, supply chain performance, cost savings and growth – and setting the pace for the rest of the market.” Read more here.
