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Pharma IT Insights
The New Gold Standard: How EcoVadis Ratings Are Transforming Pharma Procurement Decisions
By Naomi Jade Kellogg
March 6, 2025
Pharma IT Insights
The New Gold Standard: How EcoVadis Ratings Are Transforming Pharma Procurement Decisions
By Naomi Jade Kellogg
March 6, 2025
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Sustainability and corporate social responsibility (CSR) are no longer just buzzwords in the life sciences industry—they are essential criteria in procurement decisions.
Large pharmaceutical, biotech, and medical device companies face increasing regulatory, investor, and consumer pressure to ensure their supply chains align with environmental, social, and governance (ESG) principles. One of the most adopted tools for evaluating supplier sustainability in the life sciences is EcoVadis.
In this Insight, we explore how EcoVadis ratings are reshaping procurement in the life sciences and what suppliers need to do to stay competitive.
What Is EcoVadis?
EcoVadis is a globally recognized sustainability rating platform that assesses companies based on their ESG performance. It evaluates businesses across four key areas:
- Environment – Carbon footprint, energy use, waste management, and environmental policies
- Labor & Human Rights – Employee well-being, diversity & inclusion, ethical labor practices
- Ethics – Business integrity, anti-corruption policies, IT security, responsible sourcing
- Sustainable Procurement – Supply chain responsibility and risk management
Each company receives an EcoVadis score (0-100), with higher scores signaling stronger sustainability practices. This objective, standardized assessment is based on international frameworks like Global Reporting Initiative, UN Global Compact, and ISO 26000 ensuring credibility and alignment with global standards.
Why Pharma Companies Are Prioritizing EcoVadis Rating
1. Regulatory Pressures and ESG Commitments
Life science companies operate in a heavily regulated environment. With increasing regulatory pressure in the EU from regulations such as the Corporate Sustainability Reporting Directive (CSRD), these companies must ensure their suppliers comply with ESG standards.
By leveraging EcoVadis ratings, procurement teams can streamline compliance efforts and reduce the risk of engaging with suppliers that do not meet sustainability requirements. A high EcoVadis rating reassures companies that a supplier is aligned with regulatory expectations.
2. Risk Mitigation and Supply Chain Transparency
Global supply chains are complex. Failing to mitigate ESG risks—such as unethical labor practices or environmental violations—can severely damage a company’s reputation and operations. EcoVadis ratings provide transparency by identifying potential risks in the supply chain, allowing pharma companies to mitigate issues before they escalate.
Strong EcoVadis Ratings are a Competitive Advantage for Suppliers
With more life science companies using EcoVadis ratings for supplier assessments, a high score can set suppliers apart from competitors. A strong rating increases trust and enhances a supplier’s credibility in the market.
Many procurement teams now have minimum EcoVadis rating thresholds that suppliers must meet to be considered for contracts. Companies that invest in sustainability efforts—such as reducing carbon emissions, improving labor practices, or adopting responsible sourcing policies—can use their EcoVadis rating as a differentiator to win more business
How Suppliers Can Improve Their EcoVadis Rating
As EcoVadis ratings continue to shape procurement decisions in the life sciences industry, suppliers must prioritize sustainability efforts to remain competitive. A strong EcoVadis rating is no longer just a “nice-to-have”—it’s becoming a business necessity for securing and maintaining contracts with major pharma, bitotech, and medical device companies.
Since EcoVadis ratings directly impact procurement decisions, suppliers should take a proactive approach to obtain and improve their scores. Here are a few key tips:
1. Strengthen ESG Policies and Documentation
One of the most common reasons for a low EcoVadis rating is the lack of formal sustainability policies and supporting documentation. Suppliers should:
- Develop clear ESG policies and make them publicly available
- Implement internal sustainability programs and track progress
- Ensure that internal policies align with international sustainability standards
- Consider external certification schemes like ISO14001, ISO27001, etc.
2. Improve Environmental Performance
Pharma companies prioritize suppliers that actively work to reduce their carbon footprint and environmental impact. Suppliers can improve their environmental EcoVadis scores by:
- Measuring and reducing greenhouse gas (GHG) emissions
- Implementing waste reduction and recycling programs
- Using renewable energy sources in operations
3. Demonstrate Ethical Business Practices
A strong ethics program is crucial for a positive EcoVadis rating. Suppliers should:
- Establish and enforce anti-corruption and bribery policies
- Provide employee training on business integrity and compliance
- Conduct regular internal audits to ensure ethical operations
4. Enhance Labor & Human Rights Standards
Suppliers must align with global labor standards such as those outlined by the International Labour Organization (ILO) to obtain high social scores in the EcoVadis assessment. This includes:
- Ensuring fair wages and safe working conditions
- Promoting diversity, equity, and inclusion (DEI) initiatives
- Conducting social audits to assess labor rights complianc
5. Engage in Sustainable Procurement
Since Sustainable Procurement is an EcoVadis thematic area, suppliers should also ensure that their supply chain partners follow responsible practices. Key actions include:
- Conducting ESG due diligence on subcontractors and raw material suppliers
- Implementing sustainable sourcing policies
- Encouraging suppliers to obtain their own EcoVadis ratings
💡 Is your company ready to tackle the EcoVadis challenge?
Pharma IT holds a gold EcoVadis medal. Our certified EcoVadis Practitioners are ready to help you start your journey. We can support you with document preparation, submission, strategy, gap analysis, improvement planning, training, and reporting—helping turn your sustainability efforts into a competitive edge.
Invest in obtaining and nurturing a sustainability rating today, to secure your place in the life science’s supply chain of the future. Contact us to discuss how we can help you reach your goals.
About the author
Naomi Kellogg is Pharma IT’s Director of Sustainability, Communications & Culture. She leads the company’s ESG & CSR strategy, driving sustainability initiatives and securing a Gold EcoVadis Medal for the company. She oversees ESG reporting, stakeholder engagement, and internal sustainability programs. In addition, she manages internal communications and company culture, ensuring alignment with Pharma IT’s values. With expertise in branding, communications, and corporate social responsibility, she strengthens Pharma IT’s commitment to sustainability while leading a team and fostering a purpose-driven workplace.
