In Short

• Sustainability ratings rose 167% globally over five years.
• Asia-Pacific showed the most improvement.
• Regular assessments lead to better performance.

A new report by EcoVadis shows that companies across the globe are rolling up their sleeves to improve their environmental, social, and ethical practices, especially within their supply chains.

The Global Supply Chain Sustainability Risk & Performance Index studied data from 89,000 companies, nearly 50,000 of which were rated in 2024 alone. Over the past five years, the number of sustainability assessments has risen by 167%, indicating that businesses are taking ESG (Environmental, Social, Governance) more seriously and are recognising its return on investment (ROI).

Read More: The Benefits of EcoVadis Certification for Sustainable Businesses

The Asia-Pacific (APAC) region stood out in 2024 for making the most progress, improving their scores across all four EcoVadis sustainability themes: Environment, Labour & Human Rights, Ethics, and Sustainable Procurement.

APAC companies even exceeded North America in environmental performance and are quickly improving their sustainable procurement efforts, which help build business resilience and financial returns. However, APAC still lags behind Europe and North America in Ethics and Labour & Human Rights, although their rapid improvement is beginning to shift the global sustainability landscape.

The report also highlights a global pivot towards action, not just assessment. Many companies are now industriously working to improve their sustainability scores over time. A strong sign of this change is that 27% of companies rated multiple times are now top performers, compared to just 13% in 2020. This shows that consistent and long-term efforts in sustainability are paying off, even though public debates on the topic remain divided or politically charged.

There has been a global surge in sustainability ratings, with China overtaking the U.S. in the number of company assessments, making it the second most active country after France. The Africa & Middle East region saw the fastest growth in ratings (42%), followed by Europe (33%), implying an increasing global demand for supply chain transparency.

However, not all findings are positive. Companies being rated for the first time are often found to have weak sustainability management. Over one-third of these companies scored below 45, placing them in the high to medium risk category.

This problem is more severe outside of Europe, with 45% of first-time companies in the U.S. and 62% in China falling into the risk range. In contrast, only 12% in the UK fell into this category, indicating stronger initial performance in Europe.

The report also found that regular assessments drive improvement. Of the companies that have been rated more than once, a large majority — 86% — scored above the risk threshold, meaning that frequent reviews help reduce risk and promote better sustainability practices.

Sustainable procurement, or how companies choose and manage suppliers, saw the most improvement in 2024. Still, it remains the weakest area overall. About 60% of all companies, and a striking 75% of first-timers, continue to fall into the higher-risk category for procurement. This suggests that many firms still struggle to manage their supply chains responsibly.

Also Read: What Is ESG Performance And How To Measure It?

In 2024, the average EcoVadis score rose to 53.4, placing the typical company in the “Good” range of sustainability performance. The findings align with EcoVadis' other report, the Business Sustainability Outlook, which states that 87% of U.S. executives maintained or increased sustainability investments in 2025.

Sylvain Guyoton, the Chief Rating Officer at EcoVadis, said: "In a noisy political environment, supply chain performance tells a clearer story. The Index takes that sentiment one step further, offering evidence that supply chain partners are following through.

"Companies that stay committed to business sustainability efforts are reaping the benefits – risk reduction, resilience, supply chain performance, cost savings and growth – and setting the pace for the rest of the market.”

Ends/

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Source: Business Wire