EcoVadis, one of the leading providers of business sustainability ratings, has published a new report on sustainability performance comparisons between organizations who have committed to the UN Global Compact principles vs. those that have not. Analysing performances of the UNGC’s Ten Principles across key themes of Environment, Labour and Human Rights, Business Ethics and Sustainable Procurement, EcoVadis finds that committed companies perform better across their supply chains while Sustainable Procurement and environment themes have the greatest gaps between UN Global Compact participants and nonparticipants
“We assess nearly 20,000 companies a year on their sustainability performance and this report specifically explores the link between the adoption of the Ten Principles of the UN Global Compact and advanced sustainability performance,” said Sylvain Guyoton, SVP of Research at EcoVadis. “We found encouraging evidence that companies who adopted the UN Global Compact Principles are stepping up to the challenge — mitigating CSR risks within their operations and moving the needle to a more sustainable future.”
The report’s major takeaways:
Companies committed to the UN Global Compact principles have on average better sustainability performance: The findings demonstrate a clear correlation between advanced CSR performance and UN Global Compact participation. That said, participation in the UN Global Compact does not lead to advanced CSR performance in and of itself;
- Among UN Global Compact participants, small and medium-sized companies demonstrate better performance compared to large ones. This may be due to the fact that small- and medium-sized companies can act faster when addressing CSR issues.
- Companies perform significantly better in labour & human rights and environmental themes, compared with the ethics and sustainable procurement themes.
- Sustainable Procurement and environment themes have the greatest gaps between UN Global Compact participants and nonparticipants. This gap may be linked to the need for explicit executive level commitment to make investment in environmental and sustainable procurement programs. Such commitment is a clear and deliberate part in UN Global Compact participation, and thus explains the higher performance of UN Global Compact participants.
Read the full report → here
Read the announcement by EcoVadis → here