The State of Anti-Corruption in the Supply Chains Highlights of - - PowerPoint PPT Presentation

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The State of Anti-Corruption in the Supply Chains Highlights of - - PowerPoint PPT Presentation

Webinar Series The State of Anti-Corruption in the Supply Chains Highlights of the EcoVadis Study on 20,000 Companies Document Classification: EcoVadisConfidential Speakers Riley Scherer Melina Goncalves Bettina Grabmayr Senior Manager,


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Document Classification: EcoVadisConfidential

The State of Anti-Corruption in the Supply Chains

Highlights of the EcoVadis Study on 20,000 Companies

Webinar Series

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Document Classification: EcoVadisPublic

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Bettina Grabmayr Senior CSR analyst Melina Goncalves Senior CSR analyst

Speakers

Riley Scherer Senior Manager, Business Development, Sponsorship Fulfillment, & Expo Sustainable Brands EcoVadis EcoVadis

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Agenda

1 2 3 4

Introduction The State of Anti-Corruption in the Supply Chain Q&A Conclusion

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About EcoVadis

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Document Classification: EcoVadisConfidential

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EcoVadis: the Global CSR Ratings Network

300+ MNCs / Brands 50,000+ Suppliers 12,000 buyers

  • ~1.5Tn$ spend

70% SMEs

  • 190 categories
  • 150+ countries
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Document Classification: EcoVadisPublic

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A Robust Methodology: 21 CSR Criteria Covered

ENVIRONMENT LABOR & HUMAN RIGHTS ETHICS 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 StakeholderHuman

Rights

  • Corruption
  • AnticompetitivePractices
  • ResponsibleInformation

Management

  • Supplier Environmental

Practices

  • Supplier SocialPractices

Policies - Actions - Results

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Document Classification: EcoVadisPublic

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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.

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Document Classification: EcoVadisPublic

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New EcoVadis Study available

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Highlights of the EcoVadis Study on 20,000 Companies

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Document 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 companysizes

  • 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
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Document Classification: EcoVadisConfidential

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The EcoVadis approach is a management system assessment

25% 35% 40%

POLICIES ACTIONS RESULTS

1. Policies

Anti-corruption policy, Code ofConduct

2. Endorsements

External endorsement of CSRinitiatives

3. Measures

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

4. Certifications

Certifications and labels (e.g. ISO37001)

5. Coverage

Level of deployment/dissemination of measures and actions

6. Reporting

Reporting on key performance indicators (KPIs)

7. 360° News

Positive developments, condemnations, controversies

+ +

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Document Classification: EcoVadisPublic

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Assessment: EcoVadis Rating Model

Third-Party Professionals

Site audits, workers voice,proprietary databases

Company Management System

Policies,Actions, Results

Stakeholders

NGOs, trade unions, judicial authorities, gov’t sanction lists, international

  • rganizations, socialmedia

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

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Document Classification: EcoVadisConfidential

Scoring Scale

PARTIAL ADVANCED MODERATE

Innovation Opportunity Engaged Medium Risk

84

  • 65

64

  • 45

44

  • 25

24

INSUFFICIENT -

00

High Risk

100

OUTSTANDING -

85

42.2 /100 Average Score of Ethics Theme:

Partial approach on corruption issues Significant room for improvement on management of corruption issues for companies Average score conceals disparities

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Document 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)

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Document Classification: EcoVadisConfidential

Results by Region

Worst performing region: China(32.6/100) Best performing region: North America (45.7/100)

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Document Classification: EcoVadisConfidential

Best Practices Adoption

Most common best practice : Whistleblower procedure Least common best practice : Corruption risk assessment 3rd party due diligence

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Document Classification: EcoVadisConfidential

Correlation between average EcoVadis country scores and CPI country scores

Singapore Japan

CPI country scores and EcoVadis country scores not always correlated (e.g. Japan or Singapore) Companies that operate in a low risk environment at home might not be well prepared when operating abroad CPI country scores are not the only indicators to consider when assessing the risk level of companies of a specific country.

CPI Country Score Average EcoVadis Ethics Score by Country

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Document Classification: EcoVadisPublic

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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/

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Document Classification: EcoVadisConfidential

Questions?

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Document Classification: EcoVadisPublic

THANK YOU

Contact: sales@ecovadis.com Ready to learn more about how EcoVadis can help you to create value and manage risk? Book 30 minutes to explore it together.