EcoVadis 360°

A Key Component of the

Assessment Methodology

Document Classification | EcoVadis Public EcoVadis 2024 v2.3 EN

Table of contents
Introduction������������������������������������������������������������������������������������������������������������������� 3

Overview of the Two-Step 360° Watch Process������������������������������������������� 4

Step 1��������������������������������������������������������������������������������������������������������������������������������� 5

Collection of 360° Watch News Items�������������������������������������������������������������������� 5

Step 2.1������������������������������������������������������������������������������������������������������������������������������ 8

Impact Assessment: Integration of 360° Watch Findings Into

the Methodology������������������������������������������������������������������������������������������������������� 8

Step 2.2����������������������������������������������������������������������������������������������������������������������������� 9

Impact Assessment: How the 360° Watch Indicator is Scored���������������������������� 9

Impact Assessment for Each 360° Watch News items.�������������������������������������� 10

Scope Rules, Time Frame and Additional Factors������������������������������������������14

Cumulative Rules In Case of Multiple 360° Watch Findings������������������������������16

Other Uses of the 360° Indicator������������������������������������������������������������������������18

Table of contents
Introduction
A key distinguishing element
of the EcoVadis sustainability monitoring
platform is the integration of a wide
range of external inputs to supplement
company-provided documentation.
This combined approach is crucial given
that emerging laws and regulations, like
ho
This scan also includes information from Stake lders
a third-party risk and compliance data
provider.
360° Watch Findings, the output of this
process, impact a company’s EcoVadis
Rating and are displayed on its scorecard. CSR
The feature provides essential Management

ystem
Germany’s Supply Chain Act and the EU’s
upcoming Corporate Sustainability Due sustainability intelligence for both Indicators

Thir
Prof
the rated company and all of the trading

en ny
Diligence Directive, require companies

tS
partners it shares scorecards with on

d-P ona

em pa
to know more about the sustainability

ess
the EcoVadis network.

om
issues in their operations and supply ty

ar
i
C
chains than ever before. With many ls g
n a
companies still struggling to anticipate, Ma
Live News Monitoring: EcoVadis
uncover and manage these risks, tools like
our 360° Watch feature are here to help. has partnerships with external data
providers to exclusively monitor
The 360° Watch feature, live news stories. These stories
and its corresponding management
indicator in our methodology, enable are then reviewed and verified
us to collect and classify external inputs by internal reviewers. Live News
and integrate them into the rating process. does not impact the current rating
Our analysts carefully review the results of a company. However, when
of a scan of more than 100,000 external Third-Party Company
a company is reassessed, archived Stakeholders
sources to identify the most relevant Professionals Management System
news, both negative and positive, related
Live News results are used
to a given company over the past five to complement 360° Watch Findings. NGOs, trade unions,
Site audits, labels,
to ten years (the validity period varies judicial authorities, Policies, actions,
certificates, proprietary
based on a number of factors). government sanction lists, results & reporting.
databases
International organizations.

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Overview of the Two-Step
360° Watch Process
Step 1
Collection of 360° Watch
News Items
360° Watch news items are discovered
by our news scanning and data analysis
tool. We then analyze and select items
based on their relevance to EcoVadis’ 21
sustainability criteria and publish them,
without modification, on our platform.
Every company assessed by EcoVadis
goes through the 360° Watch process.
Our internal research team verifies the
relevance of all news items, whether
positive, negative or neutral. As long as
they are relevant to at least one of the
assessment criteria, items selected as
360° Watch Findings will be displayed
on a company’s scorecard.
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Step 2
Impact Assessment: Analysis
and Scorecard Impact
In the second step, sustainability analysts Relevancy of
assess what 360° Watch Findings indicate Sustainability News
about the quality and effectiveness of
a company’s sustainability management
system. If it is determined that a finding
will impact scoring, a user will see a red
downward arrow, an associated severity
level and a point of improvement on the
platform interface. Positive news, such
as awards or top rankings, can increase
scoring on the relevant theme. This is
indicated by a green upward arrow on the News Impact
scorecard. Assessment
4 19
Step 1
Collection of 360° Watch News Items

Source Qualification
The EcoVadis 360° Watch process begins with the selection
and verification of news items gathered from credible and reliable
sources. These sources include:
Official statements or publications from government bodies;
Information from regulatory databases;
Extracts of court rulings or legal settlements;
Articles from the mainstream media;
Factual statements by organizations considered as subject matter
experts (e.g., international NGOs, independent think tanks).
To be considered credible and valid for 360° Watch, sources
are filtered and sorted according to the following quality criteria:
legitimacy, representativeness, technical expertise, transparent
governance and funding structure.

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Data Sources
The following examples are illustrative of the more than 100,000 sources included in the 360° Watch scan:

• China CSR Map (China) • European Court of Human Rights Major trade unions in the following countries/

TRADE UNIONS
regions: Algeria, Argentina Australia, Belgium,
SPECIALIZED

• Novethic (France) • EU Ecolabel

ORGANIZATIONS
Canada, Ecuador, Europe, France, Germany,

INTERNATIONAL
India, lreland, Italy, Japan, Latin America,
PRESS

• Corpwatch (International) • United Nations Global Compact

Mexico, North Arnerica, Peru, Portugal,
• One World Network (International) • Interational Labour Organization Scotland, Spain, Switzerland, United Kingdom,
• Illegal Logging (UK) USA
• United Nations Environment Programme
• Lawyers & Settlements (USA) • World Bank
• Extractive Industries Transparency
Initiative • AccountAbility (International)

• China Labor Watch (China) • Instituto Ethos de Empresas

Responsabilidade Social (Brazil)
• Human Rights In China (China)

SUSTAINABILITY
• European Economic • Business for Social Responsibility

NETWORKS
• Greenpeace (International) (International)
and Social Committee (EU)

ADMINISTRATION
• WWF (International) • CSR Europe (International)
NGOs

• European Environment Agency (EU)

• Movimento Difes a del Cittadino (Italy) • World Business Council for Sustainable
• Conseil de la Concurrence (France)
• Friends of the Earth Middle East Development (International)
• Competition Commission (UK)
(Middle East) • Business Social Compliance Initiative
• Environmental Protection Agency (USA) (Interational)
• Milieudefensie (Netherlands)
• Food and Drug Administration (USA) • Business In The Community (UK)
• Silicon Valley Toxics Coalition (USA)

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Public and External Databases
EcoVadis has partnered with a third-party risk
and compliance information provider to cover
additional risks related to economic sanctions,
watchlists from governments or international
organizations, politically exposed persons and
other regulatory compliance issues. In some cases,
compliance data covers topics not directly related to
the four EcoVadis assessment themes. Nonetheless,
these cases illustrate a level of risk exposure that
may be of interest to scorecard readers. Watchlists
cover entities potentially exposed to high-risk
activities or subject to trade restrictions, exclusion
lists, government warnings and enforcement
actions (e.g., World Bank List of Debarred Firms
or BIS Denied Persons List). Sanctions cover global
and national sanctions lists (e.g., OFAC Sanctions
Programs).
EcoVadis also has data partnerships with platforms
such as China-based Insblue and uses public
databases such as the Business & Human Rights
Resource Centre and various open government
databases.

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Step 2.1 POLICIES
Policies, objectives, targets, governance
0 Insufficient
Partial
Good
80% Advanced
Policies Outstanding
Impact Assessment:
100
(25%) 0 Insufficient
Integration of 360° ENDORSEMENTS
Endorsement of external sustainability Partial
initiatives and principles, e.g. UN Global Good
Watch Findings Into the 20%
Compact Advanced

Methodology 100 Outstanding

0 Insufficient
Partial
MEASURES Actions put in place to support objectives
The 360° Watch Findings indicator is one of seven Good
65% and targets Advanced
management indicators that EcoVadis uses to
100 Outstanding
evaluate a company’s sustainability performance.
The other six indicators are Policies, Endorsements, 0 Insufficient
Measures, Certifications, Coverage and Reporting. Actions CERTIFICATIONS
Partial

Theme scores are determined based on the (40%) Certifications, labels, third-party audits Good
35% Advanced
contribution and relative weight of each of these 100 Outstanding
indicators.
0 Not Applicable
As for the other management indicators, 360° COVERAGE Level of deployment of certificates or actions
Low Coverage
Medium Coverage
Watch Findings are assigned a score between multiplying factor throughout the company High Coverage
0 and 100 based upon a set of standard scoring 100 Very High Coverage
guidelines (further explained in Step 2.2).
0 Insufficient
The weight and impact of this indicator on
Partial
the scoring for a given theme are as follows: REPORTING Quality of reporting readily available Good
40% to stakeholders Advanced
Outstanding
Results 100

(35%) 0 Severe
For details on the other indicators 360° WATCH Standpoints of stakeholders representatives, Major
and their relative weights, please refer FINDINGS e.g. administrative & judicial authorities, Minor
to the Scoring Principles Document. 60% trade unions, NGOs Neutral / Under Watch
100 Positive

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Step 2.2
Impact Assessment: How the
360° Watch Indicator is Scored
Companies begin their assessment with a default
score of 75 (out of 100) on the 360° Watch Findings
management indicator, as the absence of negative
news suggests that a company’s management
system is effective in preventing sustainability risks.
Depending on their severity, negative findings may
reduce a company’s score on the assessment
theme they relate to (i.e., Environment,
Labor & Human Rights, Ethics or Sustainable
Procurement). A score of 100 can be achieved on
the 360° Watch indicator for a given theme if there
are three positive findings and no adverse material
events. The 360° News Severity feature, released
in late 2022, states whether each negative news
item has a minor, major or severe impact on theme
scoring.
Here are some examples of news items as they
would be displayed on the EcoVadis platform:

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Impact Assessment for Each 360° Watch News Item

Environment: Example Findings

SEVERE MAJOR MINOR UNDER WATCH NEUTRAL POSITIVE

• The US EPA • Milk producer fined • Subsidiary fined • Minor product recall • Company promises • Paper mill performs an
announces a $25 $500,000 over €1,000 for violations after suspicion of improvements after energy optimization
million cleanup pollutant discharge of the Law on malfunction of residents complain approach that is ahead
settlement at a Prevention and company’s products. about noise from plant of its industry peers
company’s plant in Control of Air Pollution Fewer than 100
• Car manufacturer
Indiana products had to be
receives energy-
called back with no
saving technology
harm to customers.
award from Germany’s
Environment Minister

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Labor & Human Rights: Example Findings

SEVERE MAJOR MINOR UNDER WATCH NEUTRAL POSITIVE

• Company placed • 15 employees injured • $5,000 Penalty from • News on overtime • Sacked Employees • Employer named
in a severe violator or negatively affected OSHA for five serious lacking in clarity to file lawsuit against among the world’s
enforcement program by harmful substances violations and/or detail their employer top women-friendly
by the US OSHA companies
• IndustriALL Global • Strike at Indian • Union wants 5% wage
• Company facing Union condemns subsidiary crosses 10 increase • Tech company
intense backlash after company for union days introduces a gender
the death of 40 mine busting pay parity policy in
workers deaths India

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Ethics: Example Findings

SEVERE MAJOR MINOR UNDER WATCH NEUTRAL POSITIVE

• Bank will pay $1.8 • Massachusetts • Antitrust authority • An NGO report • Glass bottle • The company
billion for money company pays $1 fines Italian subsidiary alleging involvement manufacturer was listed in
laundering million to settle US €50,000 for in illicit activities launches internal Ranking Digital
False Claims Act case misleading advertising probe for possible Rights’ Corporate
• Company settles six
bribery Accountability Index
antitrust cases for $110 • UK authorities fine
million telecommunications
company $4 million
over stolen customer
data

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Sustainable Procurement: Example Findings

SEVERE MAJOR MINOR UNDER WATCH NEUTRAL POSITIVE

• Five dead, dozens • Food manufacturer • Animal rights group • Information on • Company tightens • A manufacturer of
injured when luxury suspends sugar calls out restaurant controversies being employment rules for communication
hotel being built in supplier over land chain over alleged investigated by third suppliers in China equipment wins an
Laos collapses grabbing in Cambodia cruelty in its supply parties, but with no award for its ethical
chain findings yet mineral sourcing
• Amnesty International • Greenpeace urges
finds that a company’s cosmetic company to • Major car paint
electric car batteries correct harmful palm suppliers join initiative
are using cobalt mined oil practices against child labor in
with child labor mica mines

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Scope Rules, Time Frame and Additional Factors
Scope Rules
Each 360° Watch Finding is evaluated taking
into account whether the news applies to the
company being assessed or its subsidiary or
parent/sister company. Findings directly related
to the company being assessed or one of its
subsidiaries have full impact on scoring. Findings
about sister or parent companies may impact
scoring depending on the severity of the news,
geographical proximity and similarity of business
activities.
Time Frame
360° Watch Findings only impact scoring
if they occurred within a certain time frame.
This is determined by looking at the date of
the underlying facts, such as when a non-
compliance, illegal act or accident took place.
Each assessment theme has a specific validity
period, as follows:
Environment: 5 years;
Labor & Human Rights: 5 years;
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Ethics: 7 years for corruption, 10 years for
anti-competitive practices and 5 years for
responsible information management cases;
Sustainable Procurement: 5 years.
Important!
The case date refers to the date
of the underlying facts (e.g., when
the violations actually occurred) not
the publication date of the news item.
Ethics cases such as corruption,
bribery and anti-competitive
practices have a longer time frame
due to the fact that the investigations
leading to an enforcement decision
typically take more time than for
other violations.
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Additional Factors
When assessing the materiality of individual
news items, we consider mitigating factors in the
following cases:
Joint ventures or minority-owned assets or
operations without significant management
control;
Ethics cases with facts within the last two
years of the validity period (see more detail
on the time frame below) will have
a decreasing impact over time.
In addition to receiving a fine/penalty for
ethics-related non-compliances, a company
is assigned an independent corporate
monitor by the authorities. This may increase
the impact of the news by one severity level
(e.g., Major becomes Severe).
When a company is found to be a repeat
offender or has obstructed an investigation,
the impact of the initial news may be
increased (e.g., Major becomes Severe).

We also consider aggravating factors in certain

cases. Here are a few illustrative examples:

If there is news available on several short-

term (e.g., lasting one day or less) strikes
occurring over a short time frame (e.g., over
12 months), the impact (severity level) of the
news may be increased (e.g., Minor to Major).
This is because repetitive strikes often
indicate systemic issues within a company,
such as ineffective dialogue between
management employees and/or their
representatives.

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Cumulative Rules In Case of Multiple 360° Watch Findings

If multiple 360° Watch Findings are collected for a theme, a set of rules is applied to
determine how these cumulative findings impact the 360° Watch Finding Indicator
score. The table below summarizes to what extent Environment, Labor & Human
Rights, Ethics, and Sustainable Procurement 360°scores are impacted by multiple
findings:

360° Watch
Finding Indicator 0 25 50 75 100
Score

• At least • At least • At least • No cases • At least 3 positive cases

1 severe case 1 major case 1 minor case for large companies or
• Or case(s)
2 cases for extra small,
Number and • Or at least • Or at least with neutral
small or medium-sized
severity of cases 5 major cases 5 minor cases impact
companies
or 25 minor
• Or under
cases • And no negative cases*
watch case(s)

* Positive cases cannot compensate for negative findings.

Note: As per our cumulative 360° Watch findings rules, 5 minor cases = 1 major case,
and 5 major cases = 1 severe case. Any combination of minor or major cases leading
to 25 minor or 5 major cases within one theme would result in a 360° Watch indicator
score = 0.

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Comment Period on 360° Watch
Findings

When our analyst team identifies 360°

Watch Findings that may severely impact the
assessment score, the company being rated
is given an opportunity to comment on them.
This “comment period” occurs before the
scorecard is published and enables the rated
company to provide additional information,
context and specific details to communicate
its point of view on the relevance or impact
of certain facts. This engages companies in
the assessment process and gives them some
recourse before third-party stakeholder news
is published in their EcoVadis scorecard.

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Other Uses of the 360° Indicator
EcoVadis Medals and Badges
EcoVadis Medals (Platinum, Gold, Silver, Bronze)
and Badges (Committed, Fast Mover) recognize
eligible companies that have completed the
EcoVadis assessment process and demonstrated
a relatively strong management system that
addresses sustainability criteria, as outlined in the
EcoVadis methodology. In addition to the percentile
and score requirements, companies are also subject
to the following 360° Watch conditions:
Medals
A company is ineligible for a medal if the 360°
Watch indicator score = 0 for any theme or 25
for any two themes*. For more information on
the indicator scores, refer to p. 8 and p. 16.
Badges
A company is ineligible for a badge if it has any
severe finding(s) within the past 5 years for
Environment, Labor & Human Rights, Sustainable
Procurement themes or 7 years for the Ethics
theme.
Note: The score is eligible to be raised above
the default of 75 only if no negative cases are
identified.
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Scorecard Revision Process: Adverse
Events After Publication
The Live News feature uses many of the same
inputs as the 360° Watch Process to provide real-
time monitoring of news and stakeholders’ opinions
between assessments. These results are displayed
on the EcoVadis platform alongside a company’s
scorecard. Critical adverse events identified by
the Live News feature between assessments are
thoroughly reviewed by the Research Management
Committee and may lead to scorecard revisions.
This process includes a due diligence mechanism
to inform both the impacted company and its
trading partners of any scorecard revisions.
Conclusion
The 360° Watch feature is an essential part
of EcoVadis’ Sustainability Rating methodology.
It brings vital third-party inputs from a wide variety
of sources to bolster the robustness and reliability
of EcoVadis Ratings. The sources, criteria and
process are reviewed regularly as part of our
methodology governance.
*Large companies remain eligible for a medal if they only have 50 or fewer
minor findings and/or only 1 major finding on the scorecard.
*A company is ineligible for a medal based on the 360°indicator score
rules, unless it does not have a single negative finding within 3 years for
Environment, Labor & Human Rights, Sustainable Procurement themes
or 5 years for the Ethics theme.
18 19
 About EcoVadis: From Risk Mitigation to Performance and Impact

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