EcoVadis report reveals major sustainability gaps across global supply chains

GLOBAL – EcoVadis latest report has revealed that four out of five companies assessed through its sustainability ratings platform lack a documented process for identifying or managing sustainability risks within their supply chains.

According to the report, this exposes persistent gaps in responsible sourcing despite increasing corporate investment in environmental, social and governance (ESG) initiatives.

The findings are contained in the tenth edition of the EcoVadis Sustainability Ratings Index, which analyzed nearly 200,000 sustainability scorecards from more than 100,000 companies worldwide between 2021 and 2025.

The report further reveals that supply chain transparency remains one of the biggest challenges facing businesses. About 73% of rated companies do not report upstream Scope 3 greenhouse gas emissions, while 77% fail to track downstream emissions.

Furthermore, fewer than 1% provide detailed sustainability data to their buyer organizations, limiting visibility into environmental and social performance across value chains.

Human rights oversight also remains limited. Only 2% of assessed companies have established external grievance mechanisms that enable workers deeper within supply chains to report potential human rights violations.

Despite these shortcomings, the report indicates that companies are making measurable progress in improving sustainability within their own operations.

Average environmental performance scores increased by 9.6 points over the four-year period, while the proportion of companies achieving EcoVadis’ Advanced+ sustainability rating more than doubled, rising from 17% in 2021 to 38% in 2025.

The report also found that 46% of rated suppliers now purchase or generate renewable energy. However, climate ambition remains relatively low, with 78% of companies yet to establish science-based carbon reduction targets aligned with international climate goals.

EcoVadis also identified growing challenges associated with the adoption of artificial intelligence in sustainable procurement.

While 68% of corporate buyers have integrated AI into procurement programs, the effectiveness of these systems is constrained by insufficient supplier data.

Around 30% of suppliers provide no carbon emissions data, while a further 26% submit only aggregated estimates, limiting the ability of AI tools to generate reliable sustainability insights.

“Better software does not close that gap,” said Sylvain Guyoton, Chief Rating Officer at EcoVadis.

“The measurement problem lives in the supply base itself, and closing it requires sustained engagement over time: structured assessment, scored performance and documented follow-through.”

The report also highlights the value of continuous sustainability assessment. Companies that have undergone multiple EcoVadis evaluations outperform first-time participants by an average of 12 points, suggesting that regular monitoring, supplier engagement and performance benchmarking contribute to meaningful improvements over time.

The findings underscore increasing pressure on manufacturers, packaging companies and consumer goods producers to strengthen supply chain transparency as regulators, investors and customers demand verifiable sustainability data.

As global reporting requirements continue to expand, businesses are expected to place greater emphasis on traceability, emissions disclosure and responsible sourcing throughout their value chains.

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