EcoVadis vs CSRD

The pressure on companies to meet CSR challenges is increasing, both in terms of regulatory expectations and stakeholder demands. 

With the arrival of the European CSRD directive, which imposes a strict framework for extra-financial reporting, and the proliferation of voluntary assessments such as EcoVadis, organizations have to juggle all these demands.

How can you respond effectively to these two approaches without multiplying your efforts? This article explores the links between CSRD and EcoVadis, showing how to harmonize your actions and optimize your CSR strategy. It covers the following points:

1. Understanding CSRD and EcoVadis: aims and requirements
2. Identify common ground: dual materiality, documentation, and PDCA
3. Steps to align your work
4. Our practical advice on how not to duplicate your efforts

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What is the European CSRD directive?

The CSRD (Corporate Sustainability Reporting Directive) is a European directive that replaces and extends the NFRD (Non-Financial Reporting Directive). Its aim is to improve the transparency and quality of information on corporate sustainability.

It applies to over 50,000 companies, compared with 11,700 previously, and requires much more detailed reporting on environmental, social and governance issues.

This directive introduces a reporting method with common standards (ESRS), requires a double materiality analysis (impact, risks and opportunities for the company) and makes external auditing compulsory. And, for greater transparency and consistency across Europe, reports must be provided in a standardized digital format.

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What is the EcoVadis assessment?

The EcoVadis assessment is a platform that evaluates companies' sustainable performance on the following pillars: environmental, social, ethical and sustainable purchasing.

It enables companies to prove their commitment to CSR, build trust through transparent assessments, and benchmark themselves against others using common standards. 

EcoVadis is often used to meet the expectations of customers and partners.

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Ecovadis, CSRD, different purposes

These two frameworks have very different aims, even though they both deal with sustainability.

• EcoVadis is a voluntary CSR assessment tool. It helps companies identify risks in their supply chain and demonstrate their commitment to sustainability to their customers. With over 130,000 companies assessed, it is a real competitive lever in B2B relations, thanks to a private methodology based on documented evidence.
• The CSRD, on the other hand, is a mandatory European directive that requires around 50,000 companies to provide detailed reports on their sustainability. It follows a public methodology and requires external assurance by an accredited auditor. Unlike EcoVadis, its main aim is to ensure regulatory compliance rather than to serve as a differentiation tool.

To sum up, EcoVadis helps companies to stand out in B2B, while the European Directive is a mandatory framework that sets transparency and communication rules for companies in Europe.

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Ecovadis, CSRD, many similarities

Although they have different purposes, both tools help companies to integrate sustainability into their strategy, by encouraging them to better assess, structure, document and communicate their CSR practices.

What we find in these two frames : 

• Double materiality, 
• PDCA, 
• The proof system with documentation.

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Dual materiality

The principle of double materiality consists of evaluating two different aspects:

• The company's impact on the environment and society ("inside-out" materiality), impact materiality.
• Sustainability risks that may affect the company financially ("outside-in" materiality), financial materiality.

The dual materiality concept helps companies to identify and prioritize their key issues. Although the CSRD (with its 12 ESRS) and EcoVadis' Key Sustainability Issues (KSI) are not identical, they cover very similar topics.

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ESRS: these are European standards defining precise criteria for sustainability reporting. They cover themes such as the environment, human rights, governance and anti-corruption, to ensure transparency and comparability across Europe.

EcoVadis KSI: these are evaluation criteria measuring CSR performance on similar themes: environment, social, ethics and responsible purchasing.

To define your sustainability challenges, you can use the ESRS themes or EcoVadis' 21 KSIs, as they overlap. 

These two frameworks provide a solid basis for identifying material issues and defining your priorities.

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PDCA

PDCA is a method used to enable companies to set up a process and develop it with a view to continuous improvement. It is used in CSRD, EcoVadis and other standards such as ISO.

Here's how PDCA breaks down: 

• Plan, the definition of quantified and dated commitments and objectives to be achieved.
• Do, all the actions taken to achieve the objectives set.
• Check, setting up a reporting system to measure your results and determine whether your objectives are being met.
• Act, updating your strategy on the basis of the results obtained.

Documentation

In both cases, documentation plays a key role in proving that the CSR management system is sound. 

In EcoVadis, documentation is used to justify a company's CSR practices for assessment purposes, whereas in the European directive, documentation is a legal requirement to prove compliance with European standards.

Some expectations are similar; here is what will commonly be asked:

• Structured CSR policies: companies must present their environmental, social, ethical and responsible purchasing policies.
• Concrete actions: evidence of initiatives implemented, e.g. training programs, action plans to reduce environmental impact, supply chain audits.
• Precise, traceable quantitative data and indicators: measurements of greenhouse gas emissions, energy consumption, workplace accidents, or other sustainability-related KPIs.
• Third-party reports or audits: Companies can provide audits (e.g. ISO 14001, SMETA) to support their evidence, and in the CSRD, reports must be verified by an accredited auditor to ensure regulatory compliance.
• Follow-up documentation: Companies need to demonstrate that they are regularly monitoring their objectives and adjusting their strategies if necessary (PDCA logic in both cases).

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5 key steps to align EcoVadis work with the CSRD

Although they have different objectives, these frameworks complement each other perfectly. By leveraging the data and analysis in your CSRD report, you can not only meet regulatory requirements, but also enhance the quality of your EcoVadis assessment. This integrated approach enables you to be more effective in enhancing the value of your sustainability practices.

Here are our 5 practical tips for using your CSRD report to improve your EcoVadis performance:

Identify common issues

Compare theCSRD with the EcoVadis Key Sustainability Issues (KSIs ). Find overlapping themes, such as environment, human rights or governance, to avoid working on the same issues twice. For CSRD, you can refer to themes, sub-themes or sub-sub-themes.

Harmonizing indicators

Adapt your indicators to meet both CSRD and EcoVadis reporting requirements. For example, EcoVadis requires you to track your scope 1, 2 and 3 emissions, and so does the CSRD.

Define or update objectives 

On the basis of the issues identified and the latest data available, set quantitative and time-dependent targets (25% reduction in emissions by 2030, improved working conditions, etc.) that meet the expectations of both frameworks.

Review your policies 

Check the CSRD's expectations regarding the drafting of policies (they are notified in the Disclosure Requirements (DR) and Data Points (DP) expected) and formalize the structure of the document so that it can be used during the EcoVadis assessment.

Adapt your action plans and traceability

Define or adjust your action plans to meet the requirements of both systems. Use formalized documents to prove your approach. Many EcoVadis measurement documents can be used to respond to CSRD RFIs or RFPs on similar topics.

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Our tips for responding to EcoVadis with the CSRD report

Your CSRD report is a goldmine for justifying and enhancing your practices in EcoVadis. By exploiting this data and analysis, you can improve the consistency of your approach and increase your chances of obtaining a good score.

• Capitalize on the detailed information contained in the European directive, and reuse this information to answer EcoVadis questions, particularly those relating to your objectives, impact measurements and action plans.
• Justify with solid evidence, use CSRD data and documents to substantiate answers in EcoVadis. For example, environmental indicators (CO₂ emissions, waste management) can support your statements.
• Highlight your materiality matrix: EcoVadis values the existence of a materiality matrix as part of its assessment. The double materiality analysis required by the CSRD can directly meet this requirement and improve your score.
• Rely on external CSRD assurance, a key factor in the EcoVadis score is external validation (audits, certifications). Verification of your CSRD report by an independent third-party organization (ITO) is a major asset that can meet this requirement.
• By aligning the two approaches, you'll avoid duplicating efforts and boost the credibility and quality of your EcoVadis responses.

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Conclusion 

With the entry into force of the CSRD and the rise of assessments such as EcoVadis, companies now have to juggle regulatory requirements and stakeholder expectations. 

Although their objectives are different - CSRD aims for legal compliance and transparency, while EcoVadis values CSR performance for competitiveness - these two frameworks share common ground. 

Aligning your efforts between these two approaches can not only simplify your work, but also strengthen your overall sustainability strategy. Here are 5 key steps to leverage your EcoVadis actions and effectively meet CSRD obligations.