Just like a chef needs the right ingredients to create a Michelin-starred dish, your company needs the right policies to achieve EcoVadis excellence. In this post we’ll explore the six essential policies that will take your sustainability management systems from wanting to delivering.

Any company that wants to build sustainability management systems that EcoVadis rates highly will need to consider their management systems on three levels.

Setting Policies.

Implementing Actions.

Reporting Performance.

You need to work on all three to boost your sustainability rating, but I want to focus on policies in this post.

Comprehensive policies set commitments, objectives and targets on material sustainability issues. They signpost which procedures standardise key sustainability processes. They describe the embedded controls to ensure policies and procedures are followed and how oversight is conducted through audits, risk assessments and more.

Some key policies can demonstrate your commitment to sustainability and ethical business practices and form the backbone of a strong EcoVadis submission.

Which essential policies should every company have to get a good EcoVadis score?

Code of Ethics

The Code of Ethics concentrates on the values and principles of your company. It is broad in scope, addresses ethical concerns, and guides employees in making ethical decisions in all aspects of work while providing an avenue to report misconduct. A code of ethics covers integrity, respect, confidentiality and conflicts of interest. Its impact is about building a positive culture. Enforcing a code of ethics is challenging. While ethical behaviour is preferable, unethical behaviour does not always constitute breaking the law, making it more difficult to take specific action against employees. The code of ethics is generally a public document.

Code of Conduct

Your Code of Conduct is a fundamental tool to promote and manage sustainability within your company. The code of conduct sets out requirements relating to the behaviour and interactions of company directors, employees, and other internal stakeholders to work according to ethical standards and behaviours. The code of conduct’s scope is narrower. It focuses on compliance with specific legislation and rules and addresses specific actions and regulatory risks. It addresses things like harassment, discrimination, data privacy, and the use of company resources. It also communicates consequences for violations and procedures for reporting. The code of conduct is usually an internal document targeted at an internal audience. Companies sometimes include it as part of the Employee Handbook.

Does the code of ethics sound too similar to the code of conduct? Imagine a football game (the original version, not the North American one which a friend once remarked ought to be called Handegg).

Anyway, imagine a football game. A code of conduct is like the rules of the game: the touchlines, offside, free kicks, penalties, and all other protocols that players must adhere to. A code of ethics concerns the sportsmanship expected of players, such as respect for opponents, integrity, and honour in playing well. A rulebook does not dictate these things but they are essential for the spirit of the game. Makes sense? Let’s continue with the next policy.

Environmental Policy

It won’t surprise you that an Environmental Policy is important for your EcoVadis submission because it is integral to any company worth its salt trying to tackle sustainability.

Your environmental policy articulates your company’s commitment to environmental stewardship. It shows your company’s intention to reduce environmental impact, mitigate risk, and improve performance. It addresses energy efficiency, waste reduction, using sustainable input materials, and running more sustainable processes. The Environmental Policy provides structure to a concrete action plan. It drives continuous improvement by setting quantifiable targets and objectives you can work towards over time. Other essential elements of Environmental Policies are assigning responsibilities, setting measurable targets, and outlining strategies for achieving environmental goals.

Labour & Human Rights Policy

Let’s assume you want to ensure your company’s practices are consistent with global best practices. That means your Labour & Human Rights policy needs to align with internationally recognised standards and principles like the International Labour Organisation (ILO) conventions and the UN Guiding Principles on Business and Human Rights. A Labour & Human Rights policy affirms your company’s commitment to respecting workers' rights. It ensures fair labour practices throughout your operations and your supply chain. Your policy should address non-discrimination, freedom of association, reasonable working hours and fair wages. Your policy should also demonstrate your company’s dedication to upholding fundamental human rights and ethical business practices. You do that by explicitly prohibiting the use of child labour, forced labour, and human trafficking in your operations and your supply chain.

Sustainable Procurement Policy

It will be very difficult for any sizeable company to claim sustainability-related street cred without building a sustainable procurement pillar into their overall program. You are only as good as the weakest link in your supply chain. And yet, in my experience the Sustainable Procurement pillar is generally the last pillar to be constructed as part of an overall company program.

A Sustainable Procurement policy lays down clear expectations for suppliers, such as compliance with laws and other expectations for environmental, social and ethical practices. The sustainable procurement policy addresses supply chain risks such as conflict minerals. It integrates sustainability criteria into procurement practices, including supplier selection, contract terms and performance monitoring processes. Many suppliers will need help, and your policy and approach should accommodate this. You are responsible for promoting engagement with suppliers to raise awareness and provide guidance, training and other means to support their efforts to improve performance.

Anti-Corruption Policy

An Anti-Corruption Policy is more important for some sectors than others. Where the Code of Ethics is a moral compass covering a broader set of ethical principles, the Anti-Corruption Policy focuses explicitly on preventing corrupt practices such as bribery, kickbacks, and fraud.

A good Anti-Corruption Policy identifies and combats bribery risks, establishes specific rules of professional conduct and ensures transparency and compliance with relevant laws.

It should clearly state your company’s zero-tolerance stance on bribery, fraud, and other forms of corruption. It should also provide detailed guidelines about how your employees can (and can’t) interact with government officials, give and receive gifts, and avoid conflicts of interest. The policy should also outline procedures for due diligence, employee training, and reporting of (potential) incidents and violations.

A comprehensive Anti-Corruption Policy helps you mitigate risks, protects your reputation and ensures compliance.

That’s it for the six policies you should have in place if you want to achieve high ratings. In the case of EcoVadis, what is important is that you cover all the criteria that EcoVadis activates for your industry. To get maximum points on the policies indicator, all activated criteria must be addressed in your policies.