CDP and EcoVadis both rely on self-reported data. While both CDP and EcoVadis encourage third-party verification by awarding additional points for verified data, it is not mandatory. This means data accuracy is mostly based on good faith unless verified by an external auditor. However, some upcoming regulations will require assurance, which may force voluntary disclosure frameworks to add third-party auditing.
Meeting the Demands of Climate & Sustainability Reporting
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Mid-market U.S. companies are increasingly called upon to report and manage their sustainability practices as market pressures intensify. Large multinationals are increasingly attempting to measure and reduce their energy and other emissions and meet the rise of environmental regulations. Understanding and responding to climate and sustainability reporting requests is now critical to maintaining and growing key business relationships.
Presented at 2024 New York Climate Week this is a lively, virtual discussion of which tools and knowledge companies need to thrive in the evolving sustainability reporting landscape. We explored the recent surge in climate-related data requests between business partners, primarily driven by platforms like EcoVadis and CDP, and how they are reshaping supply chain dynamics.
What’s Covered
- Escalating ESG Demand: Uncover why there’s been a sharp increase in supply chain climate and emissions data requests, the types of data that are most commonly requested, and the industries most affected.
- EcoVadis & CDP Deep Dive: Gain a comprehensive understanding of EcoVadis and CDP—two of the most influential platforms in supply chain climate reporting. Learn about their role in the global market, why they are trusted by leading corporations, and how to effectively navigate their reporting requirements.
- Best Practices for Climate Compliance: Discover actionable strategies to meet reporting demands, reduce compliance risks, and position your company as a preferred partner in the supply chain. We’ll cover practical tips for using EcoVadis and CDP to streamline your reporting process and enhance your sustainability profile.
- Uncover Regulatory Insights: Stay ahead of emerging regulations and understand their implications for your business. Learn how to proactively adjust your reporting practices to meet new standards and avoid potential penalties.
What You’ll Learn
- Harden Your Supply Chain Relationships: Ensuring your company meets the climate data reporting requirements is crucial for maintaining and expanding partnerships with major multinationals.
- Boost Your Market Competitiveness: Companies that lead in sustainability reporting are increasingly seen as more reliable, innovative, and resilient. Gain a competitive edge by mastering the reporting frameworks that matter most.
- Prepare for the Future: With environmental regulations continuing to evolve, being prepared and informed is more important than ever. This webinar will provide you with the foresight and tools to stay ahead in the sustainability journey.
This webinar is ideal for mid-market U.S. companies and their business leaders who are looking to initiate or advance their sustainability efforts, particularly those facing increased pressure from supply chain partners to report on ESG and climate-related data.
Meet the Panelists
Don’t miss out on this opportunity to learn from experts in the field and ensure your company is prepared to meet the rising demands of supply chain climate reporting.
Webinar FAQs
In the EcoVadis assessment, points can be awarded for having certain policies, even if they haven’t been fully implemented yet. This has led to criticisms about the potential for greenwashing. However, EcoVadis is actively improving its processes to address this issue. EcoVadis now requires companies to demonstrate how they implement their policies and requires policy documents to be in place for a minimum period of three years before submission, preventing companies from creating policies solely to improve their scores right before an assessment.
Despite these improvements, companies seeking to differentiate themselves must focus not only on creating policies but also on showing measurable outcomes of those policies.
If your clients or partners aren’t yet requiring ESG reporting today, it’s a great opportunity to be proactive. If your company has achieved a rating (e.g., Bronze, Silver, or Gold) on EcoVadis or (A, B, C, etc.) on CDP, you can share this rating with your clients. Mentioning this certification or sharing yearly sustainability goals and progress will show sustainability leadership and could help in negotiations or influence deals.
You could also align your initiatives with your customers’ interests—such as reducing emissions, which can help them meet their Scope 3 requirements. Offering to collaborate with clients on sustainability projects is another way to get your efforts in front of them.
To ensure audit readiness for CSRD, focus on these key actions:
Double Materiality Assessment: Conduct a double materiality assessment to determine which environmental, social, and governance (ESG) factors are relevant to your operations and stakeholders. Document every step of this process to establish an audit trail, as the assessment will dictate what you must disclose.
Gap Analysis: Cross-reference your current data against the European Sustainability Reporting Standards (ESRS) indicators to identify what’s missing. Understanding where you lack data will help you start collecting the necessary information well in advance.
Dry Run: Plan to conduct a “dry run” of CSRD disclosure a year before the official filing. This mock report will help you identify areas of improvement and refine processes for accurate data collection and reporting, ensuring that you’re fully prepared when the audit comes.
Stakeholder Engagement: Ensure all relevant stakeholders—particularly finance and sustainability teams—are on board and aligned to create a cohesive strategy for compliance and have good data governance systems in place.
Improving your EcoVadis score requires focusing on high-impact areas. Review the prioritized list of improvement areas given by EcoVadis from the previous year’s score. The scoring methodology rewards tangible improvement in key categories, so prioritize those highlighted as “high impact” on your assessment feedback. Ensure that any new policies introduced are not only documented but also backed by evidence of implementation—such as employee training, policy application results, or certifications. If not already done, calculate your greenhouse gas emissions across Scope 1, 2, and 3. Many companies see significant score improvements by having a verified GHG footprint in place. Consider seeking external assurance for certain data points. This adds credibility and can increase your score in categories related to data reliability.
If you need to comply with CSRD, the following six steps will guide you:
1. Make sure you clearly understand which criteria under CSRD apply to your business and when you have to start complying with them. This may depend on the revenue generated in the European market, the number of employees, or the size of your European operations for US companies.
2. Conduct a double materiality assessment to determine which sustainability issues are relevant both from an internal financial perspective and from a societal impact perspective to know what you have to report.
3. Identify and gather material data that aligns with the European Sustainability Reporting Standards (ESRS). Ensure that your current systems can handle, track, and store these data requirements effectively.
4. Establish a working group that includes sustainability, finance, and legal teams. This group will help align goals and prepare the documentation and processes needed for compliance.
5. Since CSRD requires third-party verification, ensure that the necessary audit processes are integrated into your preparation to meet future audit requirements from the get-go.
6. As mentioned before, running a mock disclosure ahead of the compliance deadline helps identify and address gaps early, ensuring smoother compliance and fewer surprises during the audit.
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