Supply Chain

Report:
Orgs Committed to UNGC Outperform on Supply Chain Sustainability

A new EcoVadis report finds that the greatest gaps between UN Global Compact participants and nonparticipants are in the Sustainable Procurement and Environment themes.

Published 5 years ago | About a 2 minute read

Image: UN Global Compact

EcoVadis — a leading provider of business sustainability ratings, intelligence and collaborative performance improvement tools for global supply chains — has released a report comparing sustainability performance between organizations that have committed to the UN Global Compact principles to those that have not.

Taking a deep dive into performance across key themes of Environment, Labor and Human Rights, Business Ethics and Sustainable Procurement, EcoVadis found that committed companies perform better across their supply chains.

“We assess nearly 20,000 companies a year on their sustainability performance and this report specifically explores the link between the adoption of the Ten Principles of the UN Global Compact and advanced sustainability performance,” said Sylvain Guyoton, SVP of Research at EcoVadis. “We found encouraging evidence that companies who adopted the UN Global Compact Principles are stepping up to the challenge — mitigating CSR risks within their operations and moving the needle to a more sustainable future.”

The report’s major takeaways:

Companies committed to the UNGC principles have on average better sustainability performance: The findings demonstrate a clear correlation between advanced CSR performance and UNGC participation. That said, participation in the UN Global Compact does not lead to advanced CSR performance in and of itself;
Among Global Compact participants, small and medium-sized companies demonstrate better performance compared to large ones. This may be due to the fact that small- and medium-sized companies can act faster when addressing CSR issues.
Companies perform significantly better in the Labor & Human Rights and Environmental themes, compared with the Ethics and Sustainable Procurement themes.
The greatest gaps between UNGC participants and nonparticipants are in the Sustainable Procurement and Environment themes. This gap may be linked to the need for explicit, executive-level commitment to make investment in environmental and sustainable procurement programs. Such commitment is a clear and deliberate part of UNGC participation, and thus explains the higher performance of participants.

“We must achieve the Sustainable Development Goals — for our own sake and for future generations,” said UNGC CEO and & Executive Director Lise Kingo. “More and more businesses are supporting the Global Goals, and now we must drive for the tipping points that will make sustainability a mainstream reality for small and large businesses everywhere. It is encouraging to see that our Ten Principles on human rights, labor, environment and anti-corruption are helping companies to improve their sustainability performance.”

To learn more about the UN Global Compact and their various signatories, download the full report.