EcoVadis Sustainability Index: Impact on Procurement

EcoVadis' Global Supply Chain Sustainability Risk & Performance Index 2025 provides a thorough evaluation of sustainability in procurement across global supply chains.

Drawing on 159,000 ratings from 2020 to 2024, this comprehensive dataset reviews nearly 89,000 companies across 250 sectors and 150 countries.

It highlights the need for procurement leaders to be resilient amidst geopolitical challenges, trade tensions and evolving regulatory landscapes.

Sylvain Guyoton, Chief Rating Officer at EcoVadis, says: "This year’s edition comes at a pivotal moment for global business. Geopolitical conflicts, trade tensions and rising political polarisation – from ESG rollbacks in the US to regulatory flashpoints over CSRD and CSDDD in Europe – have created a level of disruption few saw coming."

In such uncertain times, companies reconsidering their commitments to sustainability are facing critical decisions.

Commitment to sustainable procurement

The EcoVadis report focuses on four central themes within sustainable supply chains: Environment, Labour & Human Rights, Ethics and Sustainable Procurement. Its analysis contrasts initial ratings with ongoing performance to identify both progress and enduring challenges across supply chains.

The EcoVadis scoring, ranging from 0 to 100, classifies supplier performance into bands from Insufficient to Outstanding.

In 2024, the mean EcoVadis score of 53.4 places many organisations within the "Good" category, demonstrating a commitment to fundamental sustainability practices, notably in companies that engage in repeated evaluations.

Sylvain adds: "In our network and beyond, we’re seeing companies respond to growing volatility by doubling down on sustainability programmes and investments. They’re gaining deeper transparency into sustainability risks and impacts throughout their supply chains, forging stronger relationships with trading partners and laying the groundwork for long-term resilience and ROI."

Recognising key trends in 2024

The report delineates five primary trends shaping sustainability in procurement for 2024:

1. Sustainability Ratings Surge: There is a global uptick in sustainability ratings, with China surpassing the US to become the second-most active nation after France. Particularly, regions like Africa and the Middle East are emerging with 42% growth, driven by increasing demands for transparency and ESG disclosure in supply chains.
2. Initial Rating Risks Persist: More than a third of companies receiving their first rating in 2024 scored below 45, indicating medium to high risks, especially outside Europe. Comparative figures from China and the US starkly contrast with those from the UK.
3. Leaders Through Engagement: Organisations involved in multiple EcoVadis evaluations demonstrate remarkable improvements, with 86% transitioning beyond the initial rating category and 27% attaining an Advanced rating. Continuous engagement enriches supply chain practices significantly.
4. Asia-Pacific’s Strategic Advances: Across all sustainability themes, the Asia-Pacific region shows notable improvements, surpassing North America in Environment and closing the gap in Sustainable Procurement. The region's performance in Ethics and Labour & Human Rights still lags behind Europe and North America, highlighting opportunities for further advancement.
5. Sustainable Procurement Improves Yet Lags: Although there's progress noted in Sustainable Procurement, it remains the area needing attention with 75% of newly rated companies falling under high to medium risk categories.

Regional insights

Regionally, Europe maintains leadership in sustainability maturity, scoring an average of 57.8, with a notable portion of firms achieving an Advanced status in Environmental and Labour & Human Rights.

Despite these strengths, Sustainable Procurement requires additional focus, as only 14% of companies attain the Advanced level. Across the Atlantic, North America registers a 50.2 average, with improvements needed despite a minor advance in Sustainable Procurement.

Asia-Pacific marks substantial growth in 2024, gaining three points to average at 47.3, though some firms remain in risk-prone categories. In contrast, Latin America has experienced a decline in average scores, driven by challenges faced predominantly by SMEs.

Despite this, improvements have been recorded in Chile, contributing a 5.2 point increase. Meanwhile, Africa & the Middle East sees the fastest growth in ratings activity at 42%, though it continues to underperform relative to global standards.

The EcoVadis 2025 Index highlights both challenges and successes within global procurement frameworks.

As regulatory expectations rise, procurement leaders are seizing opportunities to foster sustainability engagement, better equipping their enterprises for regulatory demands and sustainability benchmarks now and in the future. Companies investing in structured, analytical programmes are better positioned for long-term supply chain success.