Document Classification: EcoVadisConfidential

The State ofAnti-Corruption in the Supply Chains

Highlights of the EcoVadis Study on 20,000 Companies

Webinar Series

Document Classification: EcoVadisPublic2

Bettina Grabmayr Senior CSR analyst

Melina Goncalves Senior CSR analyst

Speakers

Riley Scherer Senior Manager, Business

Development, Sponsorship Fulfillment, & Expo

Sustainable Brands EcoVadisEcoVadis

Agenda

1

2

3

4

Introduction

The State of Anti-Corruption in the Supply Chain

Q&A

Conclusion

About EcoVadis

Document Classification: EcoVadisConfidential5

EcoVadis: the Global CSR Ratings Network

300+ MNCs / Brands 50,000+ Suppliers

12,000 buyers ● ~1.5Tn$ spend 70% SMEs ● 190 categories ● 150+ countries

Document Classification: EcoVadisPublic6

A Robust Methodology: 21 CSR Criteria Covered

ENVIRONMENTLABOR &

HUMAN RIGHTSETHICS

SUSTAINABLE

PROCUREMENT

• Energy Consumption & GHGs• Water• Biodiversity• Local & Accidental Pollution• Materials, Chemicals, & Waste• Product Use• Product End-of-Life• Customer Health & Safety• Environmental Services &

Advocacy

• Employee Health & Safety• Working Conditions• Social Dialogue• Career Management

& Training• Child Labor, Forced Labor &

Human Trafficking• Diversity, Discrimination &

Harassment• External Stakeholder Human

Rights

• Corruption• Anticompetitive Practices• Responsible Information

Management

• Supplier Environmental Practices

• Supplier Social Practices

Policies - Actions - Results

Document Classification: EcoVadisPublic7

Report on management of corruption issues

> Corruption is a global issue

• Multiple scandals in Brazil, Argentina, Italy, China etc. in 2018

• All industries impacted

• Corruption cases have political impacts

> Multiple questions raised

• Do anti-corruption regulations have positive impacts?

• Are corporate anti-corruption programs improving?

• Are there differences related to regions, industry or company sizes?

> EcoVadis data sheds new light on corporate anti-corruption efforts

• About 20,000 assessments of companies’ anti-corruption management systems conducted per year

• Complements other indices, such as Transparency International’s Corruption Perception Index (perception of corruption level in public

sector) with data on private sector.

Document Classification: EcoVadisPublic8

New EcoVadis Study available

Highlights of the EcoVadis Study on 20,000 Companies

11Document Classification: EcoVadisConfidential

Study data : 20,000 company assessments over 2 years

Analysis of 20,000 EcoVadis assessments conducted between January 2017 and June 2018

138 countries broken down in 5 regions

- North America- Latin America & Caribbean- Europe- China- AMEA (excl. China)

2 company sizes

- SMEs (25-999 employees)- Large (1000+ employees)

12 industries

- Construction- Power generation & transmission- Finance & Insurance- ICT- Legal & consulting- Heavy Manufacturing- Light Manufacturing- Extraction & Mining- Pharmaceutical, Chemicals & Healthcare- Real estate- Transport & Storage- Wholesale & Retail

Document Classification: EcoVadisConfidential12

The EcoVadis approach is a management system assessment

25% 35%40%

POLICIES ACTIONS RESULTS

1. PoliciesAnti-corruption policy, Code of Conduct

2. EndorsementsExternal endorsement of CSR initiatives

3. MeasuresMeasures and actions implemented(e.g. whistleblower procedure, trainings, risk assessments)

4. CertificationsCertifications and labels (e.g. ISO 37001)

5. CoverageLevel of deployment/dissemination of

measures and actions

6. ReportingReporting on key performance

indicators (KPIs)

7. 360° NewsPositive developments,

condemnations, controversies

+ +

Document Classification: EcoVadisPublic13

Assessment: EcoVadis Rating Model

Third-Party ProfessionalsSite audits,

workers voice, proprietary databases

Company Management SystemPolicies, Actions, Results

StakeholdersNGOs, trade unions, judicial authorities, gov’t sanction lists, international organizations, social media

Validation

CSR experts are involved

throughout the assessment

process in order to ensure that

results are relevant and

accurate

Scorecard

Ratings, benchmarks, strengths

& improvement areas and

resources

14Document Classification: EcoVadisConfidential

Scoring Scale

PARTIAL

ADVANCED

MODERATE

Innovation

Opportunity

Engaged

Medium Risk

84-

65

64-

45

44-

25

24INSUFFICIENT -

00

High Risk

100

OUTSTANDING -85

42.2/100

Average Score of Ethics Theme:

Partial approach on corruption issues

Significant room for improvement onmanagement of corruption issues forcompanies

Average score conceals disparities

15Document Classification: EcoVadisConfidential

Results by Industry

Best performing industries :

Power generation & transmission(50.2/100)

Finance & Insurance (49.9/100)

Real estate (47.7/100)

Worst performing industries :

Wholesale & Retail (39/100)

Transport & Storage (40.5/100)

Light Manufacturing (41.2/100)

16Document Classification: EcoVadisConfidential

Results by Region

Worst performing region:

China (32.6/100)

Best performing region:

North America (45.7/100)

17Document Classification: EcoVadisConfidential

Best Practices Adoption

Most common best practice :

Whistleblower procedure

Least common best practice :

Corruption risk assessment

3rd party due diligence

19Document Classification: EcoVadisConfidential

Correlation between average EcoVadis country scores and CPI country scores

Singapore

Japan

CPI country scores and EcoVadiscountry scores not always correlated(e.g. Japan or Singapore)

Companies that operate in a low riskenvironment at home might not bewell prepared when operating abroad

CPI country scores are not the onlyindicators to consider when assessingthe risk level of companies of aspecific country.

CP

I Co

un

try

Sco

re

Average EcoVadis Ethics Score by Country

Document Classification: EcoVadisPublic20

Sustain 2019 - March 11-12, Paris

> 40+ speakers (in 2018)• Senior execs from leading companies (GSK, Air

France, LVMH, Ferrero, Toyota, Solvay…)• Experts & NGOs (UNGC, GRI, WWF, ILO, BSR…)

> 18 sessions• Keynotes, panel discussions, lightning talks and

interactive workshops> Discount code

• Webinar attendees get a special discount code to attend SustaIn. Email us at Marketing@ecovadis.com

Ignite Change!

ecovadis.com/ecovadis-sustain-2019/

Document Classification: EcoVadisConfidential

Questions?

Document Classification: EcoVadisPublic

THANK YOU

Contact:

sales@ecovadis.com

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