EcoVadis: 78% of companies lack science-based climate targets
Seventy-eight percent of rated companies still lack science-based carbon reduction targets, while 80% of Tier ...
EcoVadis: 78% of companies lack science-based climate targets
Seventy-eight percent of rated companies still lack science-based carbon reduction targets, while 80% of Tier 1 suppliers have no documented process for managing sustainability risks across their own supply chains, according to the latest EcoVadis Sustainability Ratings Index.
Progress stalls beyond Tier 1:
The report, based on nearly 200,000 sustainability scorecards covering more than 100,000 companies assessed between 2021 and 2025, shows that while suppliers are improving sustainability performance within their own operations, progress is failing to cascade deeper into global supply chains.
EcoVadis found that 73% of companies do not report upstream Scope 3 emissions, while 77% lack downstream emissions tracking. Fewer than 1% provide buyers with decision-grade sustainability data, and only 2% have an external grievance mechanism that workers deeper in the supply chain can use to report human rights violations.
Climate gains, but ambition falls short:
Despite the gaps, companies continue to strengthen sustainability efforts within their own operations. Nearly 46% of rated suppliers now purchase or generate renewable energy, while 38% provide climate-related training for employees.
Environmental performance recorded the strongest improvement among the four sustainability themes evaluated, with average scores rising 9.6 points over the past four years. The share of companies achieving Advanced+ status more than doubled, increasing from 17% in 2021 to 38% in 2025.
Labor and Human Rights remained the highest-performing category, with an average score of 59.5. Around 80% of companies have formal diversity, equity and inclusion policies, while 78% have employee health and safety policies in place.
Procurement practices lag:
The report found supplier oversight continues to rely heavily on documentation rather than verification. Around 42% of companies still depend on unverified supplier questionnaires, while 46% require suppliers to sign sustainability codes of conduct. Only 20% conduct on-site supplier audits, a figure that has changed little over the past four years.
AI exposes data gaps:
EcoVadis said the rapid adoption of AI in sustainable procurement is highlighting weaknesses in supplier data quality.
According to the companion EcoVadis Barometer 2026, 68% of corporate buyers have deployed AI tools in their sustainable procurement programs, with 62% using them to validate carbon data. However, 30% of suppliers provide no carbon emissions data, while another 26% submit only aggregated estimates, limiting the effectiveness of AI-driven sustainability analysis.
Continuous engagement delivers results:
The report found companies that undergo repeated EcoVadis assessments consistently outperform first-time participants. Organizations with multiple ratings achieved an average score of 63.2, compared with 51.5 for companies assessed for the first time.
EcoVadis said the findings underscore the need for continuous supplier engagement, structured assessments and performance tracking to strengthen sustainability practices and improve transparency throughout global supply chains.
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