Futurestation Services LLP

www.futurestn.com
Contents

Contents ........................................................................................................................................... 1
Executive Summary .......................................................................................................................... 3
About FutureStation Services LLP .................................................................................................... 4
Scope of this Document .................................................................................................................... 5
Target Audience for this Document................................................................................................... 5
References ........................................................................................................................................ 6
Context Setting: Sustainability in Global Supply Chains .................................................................... 7
How Sustainable Supply Chain Creates Business Value ................................................................. 7
Post-Pandemic Emphasis on Supply Chains .................................................................................. 7
Evolving Role of Procurement in Sustainability ............................................................................. 8
Future Considerations ................................................................................................................... 8
The EcoVadis Sustainability Ratings ................................................................................................. 9
Introduction .................................................................................................................................. 9
Benefits of Sustainability Ratings .............................................................................................. 9
Challenges of Implementing Sustainability Practices ................................................................ 9
The EcoVadis Solution............................................................................................................... 9
The EcoVadis Rating Principles ................................................................................................... 10
Sustainability Issues Assessed in EcoVadis Rating ........................................................................ 11
The Assessment Process .............................................................................................................. 11
A. Data Collection.................................................................................................................... 12
B. Document Analysis.............................................................................................................. 12
C. Stakeholder Opinion – 360° Watch Findings ........................................................................ 12
D. Scoring Process .................................................................................................................... 13
E. Scoring Scale ....................................................................................................................... 14
F. Strengths and Improvement Areas .......................................................................................15
G. Publication ...........................................................................................................................15
How Organizations can improve EcoVadis Rating ........................................................................... 16
1. Environment ............................................................................................................................ 16
1A. Core Assessment Topics..................................................................................................... 16
1B. Recommendations ............................................................................................................ 16
1C. Useful Resources ................................................................................................................ 17
2. Labor & Human Rights ............................................................................................................. 17
2A. Core Assessment Topics ..................................................................................................... 17
2B. Recommendations ............................................................................................................. 17
2C. Useful Resources ............................................................................................................... 18

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 3. Ethics....................................................................................................................................... 18
3A. Core Assessment Topics..................................................................................................... 18
3B. Recommendations ............................................................................................................ 18
3C. Useful Resources ............................................................................................................... 19
4. Sustainable Procurement ........................................................................................................ 19
4A. Core Assessment Topics .................................................................................................... 19
4B. Recommendations ............................................................................................................ 19
4C. Useful Resources ............................................................................................................... 20
How FutureStation can help............................................................................................................ 21
Our EcoVadis Rating focused services ......................................................................................... 21
Why FutureStation? .................................................................................................................... 22

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Executive Summary
This document provides a comprehensive guide for corporates seeking to improve their EcoVadis
score, a widely recognized sustainability assessment framework. The EcoVadis assessment
covers four key themes—Environment, Labor & Human Rights, Ethics, and Sustainable
Procurement—each contributing to a company’s overall sustainability performance.

Through detailed analysis and practical recommendations, this guide aims to help organizations
enhance their performance in each theme, aligning with best practices and industry standards.
The recommendations include actionable steps to adopt responsible policies, implement
monitoring systems, engage stakeholders, and leverage data-driven tools for improvement.

1) Environment: To improve the Environmental score, companies should focus on

integrating sustainable practices across their operations, including energy efficiency,
waste reduction, water management, and greenhouse gas (GHG) emission control. Clear
targets, robust monitoring, and transparent reporting are critical. In addition, adopting
certifications like ISO 14001 or CDP reporting can demonstrate commitment to
environmental management.
2) Labor & Human Rights: To excel in Labor & Human Rights, organizations must ensure
compliance with local and international labor standards, uphold employee well-being, and
foster an inclusive workplace. Initiatives such as diversity and inclusion programs, fair
labor practices, and health & safety policies should be implemented and monitored.
Continuous employee engagement and feedback mechanisms are essential to ensuring
these standards are met.
3) Ethics: Improving Ethics scores requires a strong commitment to integrity and
compliance. Corporations should develop comprehensive anti-corruption policies, ensure
compliance with relevant laws and regulations, and provide ongoing ethics training to
employees. Implementing whistleblowing mechanisms and conducting regular audits also
play a key role in reinforcing ethical practices.
4) Sustainable Procurement Sustainable Procurement focuses on responsible sourcing and
supply chain transparency. Corporates should establish clear supplier codes of conduct,
assess suppliers for sustainability risks, and promote ethical sourcing practices. Adopting
sustainable procurement frameworks such as ISO 20400 can further enhance scores,
along with supplier engagement and collaboration on sustainability goals.

Conclusion
Achieving a high EcoVadis score helps strengthens an organisation’s long-term business
resilience. By following the outlined recommendations and continuously improving sustainability
practices, organizations can drive meaningful impact while meeting global sustainability
benchmarks.

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About FutureStation Services LLP
FutureStation is a Professional Services firm specialising in Sustainability Advisory and Assurance
Services. It has been built by highly experienced professionals from large corporate houses and
global consulting firms. We differentiate ourselves from other service providers by ensuring that our
clients are served only by professionals whose CVs are presented in our proposals. With years of
Environmental, Social and Governance experience across several geographies and sectors, we are
equipped to handhold your business to the next level of growth, efficiency and resilience – through
a journey of ESG. Being small and nimble, we catch up with technological developments fast and
help your business adopt the optimal strategies to achieve sustainable and resilient growth.
To read more about how we create value for clients through our services, please read some of our
case studies at: https://futurestn.com/case-studies

Our Services
 Advisory: https://futurestn.com/services/advisory
 Assurance: https://futurestn.com/services/assurance
 Mentoring: https://futurestn.com/services/mentoring

Contact Us
For providing feedback on the contents of this document, please write to us at:
https://futurestn.com/contact

Our Associations

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Scope of this Document
This document provides an in-depth analysis of the EcoVadis Sustainability Ratings, focusing
exclusively on the four key assessment areas: Environment, Labor & Human Rights, Ethics, and
Sustainable Procurement. It outlines the critical components of the EcoVadis evaluation framework
and offers targeted recommendations to help companies improve their scores in these areas. The
analysis is confined to the processes, criteria, and methodologies used by EcoVadis in rating
corporate sustainability performance, specifically within the context of supplier assessments.
Broader topics such as Corporate Environmental, Social, Governance (ESG) strategy, corporate
social responsibility (CSR) strategies, non-EcoVadis sustainability frameworks, or unrelated
certification systems are beyond the scope of this document. The intent is to provide practical
guidance for suppliers looking to enhance their sustainability performance as measured by the
EcoVadis platform.
The images used in the report are extracted from the official EcoVadis Rating Scoring Principles at:
https://resources.ecovadis.com/ecovadis-solution-materials/ecovadis-ratings-methodology-
overview-and-principles-2022-neutral

Target Audience for this Document

This document is designed to serve a broad spectrum of organizations seeking to improve their
EcoVadis supplier ratings, regardless of size, industry, geographic location, or level of sustainability
maturity. The target audience includes:
 Large Enterprises and Multinationals: Corporations with complex supply chains and
diverse operations looking to enhance sustainability performance, strengthen their ESG
reporting, and ensure compliance with evolving global regulations.
 Small and Medium-Sized Enterprises (SMEs): Companies aiming to improve their
sustainability practices and EcoVadis scores to attract business from large corporate clients
and enter more sustainable procurement networks.
 Procurement Teams: Professionals responsible for managing supplier relationships and
driving sustainability initiatives across the value chain.
 Sustainability Officers and ESG Managers: Individuals overseeing corporate sustainability
programs and looking for structured, actionable strategies to improve their company’s
EcoVadis ratings.
 Suppliers in Developing and Emerging Markets: Companies seeking to meet the
increasing sustainability expectations of global buyers while navigating region-specific
challenges.
 Financial Institutions and Investors: Stakeholders who integrate ESG factors into
investment decisions and require suppliers to demonstrate high levels of sustainability
performance.
 Non-Governmental Organizations (NGOs) and Industry Groups: Organizations that focus
on promoting sustainability, ethical business practices, and corporate accountability.
By addressing the needs and challenges faced by businesses of all sizes, sectors, and regions, this
document aims to provide valuable insights and strategies for organizations looking to succeed in
the EcoVadis rating process and enhance their sustainability credentials globally.

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References
1. The EcoVadis Academy: https://support.ecovadis.com/hc/en-us/categories/4408741123602-
EcoVadis-Academy-E-Learning
2. EcoVadis Document Guide: https://resources.ecovadis.com/ecovadis-solution-
materials/ecovadis-document-guide
3. EcoVadis Rating Scoring Principles: https://resources.ecovadis.com/ecovadis-solution-
materials/ecovadis-ratings-methodology-overview-and-principles-2022-neutral
4. EcoVadis 360° Watch: https://resources.ecovadis.com/ecovadis-solution-
materials/ecovadis-360-watch-assessment-methodology
5. Document Submission Guidelines: https://support.ecovadis.com/hc/en-
us/articles/115002646148-Why-is-there-a-limit-to-the-number-of-documents-that-can-be-
provided
6. 2023 Sustainable Procurement Barometer: https://resources.ecovadis.com/news-press/the-
2023-sustainable-procurement-barometer-launches-insights-to-guide-strategy-in-a-
complex-permacrisis-time
7. Business Sustainability Performance Index (8th Edition):
https://resources.ecovadis.com/whitepapers/business-sustainability-performance-index-
8th-edition

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Context Setting: Sustainability in Global Supply Chains
A sustainable supply chain creates business value by transforming sustainability risks into strategic
opportunities. As value chains are often the source of significant environmental and social
impacts—ranging from carbon emissions to human rights violations—improving supply chain
sustainability enhances visibility, reduces risks, and fosters resilience. This approach allows
companies to comply with emerging environmental, social, and governance (ESG) regulations and
to unlock long-term value.

How Sustainable Supply Chain Creates Business Value

1. Risk Reduction & Resilience Building: By gaining better oversight of suppliers'
sustainability practices, companies can proactively address risks such as environmental
damage, supply disruptions, and reputational damage. Post-pandemic, this risk mitigation
has become even more critical as global supply chains have faced unprecedented pressures.
2. Regulatory Compliance: Companies are increasingly subject to stringent ESG reporting and
due diligence regulations, such as the EU's Corporate Sustainability Reporting Directive and
the Carbon Border Adjustment Mechanism. A sustainable supply chain helps companies
meet these legal requirements, avoiding fines and penalties while also meeting stakeholder
expectations.
3. Cost Savings & Efficiency: Sustainable supply chain initiatives often result in reduced
operational risks, enhanced efficiency, and cost savings. Suppliers, for example, can lower
costs by improving resource use, reducing waste, and adopting energy-efficient
technologies, all of which contribute to better bottom-line performance.
4. Stronger Business Relationships: Companies that encourage suppliers to adopt
sustainable practices often build stronger, more collaborative relationships, which can lead
to better long-term partnerships. Incentivizing suppliers to meet sustainability standards
also strengthens these ties and ensures mutual benefits.
5. Access to Capital & Consumer Demand: A sustainable supply chain can enhance a
company's appeal to investors, as it demonstrates sound risk management and forward-
looking practices. It also aligns with the growing consumer demand for ethical and
environmentally friendly products, helping companies secure greater market share.

Post-Pandemic Emphasis on Supply Chains

The COVID-19 pandemic has significantly heightened awareness of supply chain vulnerabilities.
Companies are now increasingly focused on strengthening supply chain transparency and resilience.
More than half of CEOs, according to Accenture and the UN Global Compact, are making visibility
into the social impacts of their supply chains a top priority. Additionally, about one-third of
companies are now incentivizing suppliers to improve ESG outcomes, demonstrating that
sustainability has moved to the forefront of procurement strategies.
However, despite these advances, many companies are still in the early stages of integrating
sustainability into procurement. Challenges like financing sustainability initiatives and the lack of
internal capabilities hinder widespread adoption. Incremental improvements, such as enhanced
compliance measures or risk management frameworks, are often the first steps—but these efforts
may not yield the full range of benefits that come from a more holistic and comprehensive
approach.

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Evolving Role of Procurement in Sustainability
As companies face increased regulatory scrutiny, the procurement function is becoming more
integral to corporate sustainability strategies. Procurement is no longer seen solely as a cost-saving
and compliance mechanism; it is increasingly viewed as a strategic lever for value creation. To
remain competitive in a low-carbon and equitable future, companies must transform their
procurement functions to integrate sustainability as a core principle.
For more information on how sustainable procurement acts as a strategic lever for value creation,
please refer to 2023 Sustainable Procurement Barometer at: https://resources.ecovadis.com/news-
press/the-2023-sustainable-procurement-barometer-launches-insights-to-guide-strategy-in-a-
complex-permacrisis-time

Future Considerations
The responsibility for sustainable supply chains is shared across both companies and their suppliers.
Suppliers need to adopt sustainable practices, but without the right incentives, this progress may be
slow. For companies to succeed in this evolving landscape, procurement teams must lead the
transformation by embedding sustainability into every facet of the supply chain, from supplier
selection to performance management. This shift, though complex, is necessary for companies to
thrive in the future economy. As CEOs recalibrate their value chains, sustainability must be viewed
as the foundation of procurement strategies, rather than an afterthought. This approach will allow
businesses to mitigate risks, comply with regulations, and unlock new opportunities for growth and
value creation.

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The EcoVadis Sustainability Ratings
Introduction
The growing importance of sustainability performance in business decision-making has created a
demand for global, reliable, and actionable sustainability ratings. This trend is driven by the
increasing recognition that environmental, social, and governance (ESG) issues are critical to long-
term business success and competitiveness. Companies are now expected to assess and manage
their sustainability impacts across their entire value chain, making sustainability a strategic priority
for executives in procurement, finance, and investment.

Benefits of Sustainability Ratings

1. Risk Reduction: Sustainability ratings help mitigate risks related to operational disruptions,
supply chain instability, and reputational damage by holding companies accountable for
their ESG performance.
2. Cost Efficiency: Collaborative sustainability efforts, such as energy conservation or waste
reduction, can result in lower operational costs.
3. Access to Capital: Incorporating ESG factors into investment decisions enables companies
to attract capital and improve their valuation.
4. Market Expansion: Sustainability ratings can provide market access to consumers
increasingly seeking eco-friendly and ethically responsible products.

Challenges of Implementing Sustainability Practices

Despite the clear benefits, companies face several challenges when embedding sustainability into
their core operations:
 Proliferation of Standards: There are numerous sustainability standards, making it difficult
to determine which are most relevant and credible.
 Internal Change Management: Integrating sustainability across roles, processes, and
relationships requires significant internal change and alignment.
 Complex Value Chains: Managing sustainability across intricate supply chains and networks
adds complexity, especially when partners lack mutual goals or expertise.
 Limited Resources: Many organizations struggle with a lack of internal sustainability
expertise and resources to drive these initiatives effectively.

The EcoVadis Solution

EcoVadis provides a practical, scalable solution to these challenges with its web-based
sustainability ratings platform. The system offers dynamic scorecards that evaluate the
sustainability performance of trading partners, suppliers, and investment portfolios. This allows
companies to monitor, engage, and collaborate with partners to foster continuous ESG
improvement.
By offering a user-friendly and reliable tool, EcoVadis supports businesses in making informed
decisions that drive sustainable practices, strengthen supply chain resilience, and enhance overall
ESG performance.

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The EcoVadis Rating Principles
The EcoVadis rating methodology is designed to assess the quality of a company's sustainability
management system by evaluating its policies, actions, and results. It provides a robust
framework to ensure transparency, reliability, and continuous improvement. The methodology is
built upon seven foundational principles:

1. Evidence-Based
The company being rated must provide concrete proof of its sustainability practices, including
policies, certifications, and key performance indicator (KPI) reports. Only the company’s claims
backed by verifiable evidence are considered for the assessment.

2. Industry, Location, and Size Matter

EcoVadis tailors its assessment to reflect the unique sustainability challenges based on the
company’s industry, geographic location, and size. Factors like exposure to high-risk countries or
industry-specific risks play a significant role in the evaluation.

3. Diversification of Sources
In addition to the company-provided documents, EcoVadis incorporates information from external
sources such as non-governmental organizations (NGOs), trade unions, international
organizations, and local authorities. This broad range of sources helps ensure a comprehensive
and balanced assessment.

4. Technology is a Must
The EcoVadis rating process leverages technology to ensure data security, confidentiality, and a
quick turnaround in scorecard delivery. The use of digital tools enhances the reliability and
scalability of the assessments.

5. Assessment by International Sustainability Experts

A global team of sustainability experts reviews the supporting documents and ensures alignment
with the latest best practices and trends. Their expertise is essential in interpreting the data and
providing accurate assessments.

6. Traceability and Transparency

All documents used in the rating process are stored securely, ensuring traceability. Rated
companies are given access to detailed insights into how each score was derived, promoting
transparency in the rating process.

7. Excellence Through Continuous Improvement

The EcoVadis methodology is subject to ongoing quality controls and improvements based on
stakeholder feedback. The system is supported by a client advisory board and a scientific
committee, ensuring that it remains up-to-date and responsive to new sustainability challenges.

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Sustainability Issues Assessed in EcoVadis Rating
The assessment considers a range of sustainability issues that are grouped into four themes. The
sustainability issues are based on international sustainability standards such as the Ten Principles
of the UN Global Compact, the International Labour Organization (ILO) conventions, the Global
Reporting Initiative’s (GRI) standards, the ISO 26000 standard, the CERES Roadmap and the UN
Guiding Principles on Business and Human Rights.
Note that the environmental theme covers impacts throughout the entire life cycle of products:
impacts from operations, product use, and end-of life. Sustainability issues in the supply chain are
also integrated into the Reference Model to take into account issues caused not only by direct
suppliers but also Tier 2 and 3 suppliers.

The issues (criteria) covered in each assessment are based on the materiality analysis of the 21
sustainability topics, carried out internally by EcoVadis based on a company’s context, such as
industry, size, and operational locations. These parameters are identified when a company
registers on the EcoVadis ratings platform, and they shape the questionnaire it subsequently
receives. Several criteria can be deactivated to properly reflect the parameters of the sustainability
management system. As a result, smaller companies and office-based companies receive shorter
questionnaires in comparison to other companies.
Customization of the questionnaire is also performed at the criterion level. For example, as the
approach that a consulting company uses to ensure health and safety of its employees will vary
from that taken by a construction company, some parts of the questionnaires that these companies
receive will fundamentally differ. EcoVadis analysts perform a bottom-up analysis of each industry
to inform this process.

The Assessment Process

EcoVadis follows a structured approach to assess the sustainability management systems of
companies, ensuring the use of credible, verified data. The process is highlighted below:

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A. Data Collection
During the questionnaire process, companies are required to submit formal, recent, and reliable
documentation that already exists within their sustainability management systems. This includes:
 Sustainability reports: Formal reports detailing a company's sustainability initiatives,
performance, and outcomes.
 Codes of conduct: Guidelines and ethical standards for employee and business behavior.
 Employee handbooks: Documents outlining company policies, including those related to
sustainability.
 Certificates: Official certifications that demonstrate compliance with sustainability
standards or best practices.
 External sustainability audits: Independent assessments of a company’s sustainability
performance.
 Supplier sustainability charters: Documents outlining sustainability expectations for
suppliers.
 Policies, procedures, and training materials: Internal documentation showing a
company’s efforts to embed sustainability into operations and culture.
EcoVadis also partners with specialized data providers, such as external compliance databases, to
identify potential regulatory, commercial, or reputational risks. The data collected from these
external sources serves as additional input for the assessment.

B. Document Analysis
Once data is collected, the sustainability analysts at EcoVadis conduct a thorough document
analysis. They cross-check the information provided in the questionnaire against the supporting
documentation. The key aspects of this phase include:
 Verification of Questionnaire Responses: Analysts verify the selected answers based on
the available evidence. Each answer option in the questionnaire must be supported by a
relevant document; otherwise, the response may be rejected.
 Methodology Adherence: Responses are only credited if they meet EcoVadis'
methodology requirements, ensuring consistency and fairness in the assessment process.
 Evidence Matching: Evidence from documents is only considered valid if it directly
correlates with a specific answer option in the questionnaire. This ensures that each
declaration is substantiated with concrete proof.

C. Stakeholder Opinion – 360° Watch Findings

The EcoVadis 360° Watch integrates information from external sources, providing a broader view
of a company's sustainability performance.

C1. 360° Watch Findings

EcoVadis incorporates thousands of external data sources, such as:
 NGOs, trade unions, international organizations, local authorities, auditors, and third-
party organizations.

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  Data from external compliance databases helps identify regulatory, reputational, or
commercial risks, including sanctions or ties to politically exposed persons (e.g., risks of
corruption, money laundering).
This analysis is powered by a combination of Artificial Intelligence and analyst verification to
provide a more robust assessment.

C2. Live News Monitoring

EcoVadis employs a Live News Monitoring system that enables a continuous flow of information
from external sources. Key features include:
 Daily updates for requesting companies, allowing them to react swiftly to stakeholder
concerns.
 Findings are available via the EcoVadis platform, and will be integrated into the scorecard
during the next assessment cycle.

C3. External Sustainability Audits

Positive or negative findings from external sustainability audits are considered in the assessment.
EcoVadis may also conduct on-site audits to verify documentation and processes. These audits,
based on standards like SA8000, ensure internal quality assurance.

D. Scoring Process
The scoring process evaluates the sustainability management system based on the quality and
quantity of supporting documents, providing a score between 0 and 100. The scoring is done in
increments of 25 (0,25,50,75,100).

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The scores are calculated based on the company's performance across seven management
indicators (e.g., policies, actions, results) in each sustainability theme (e.g., environmental, social,
ethical). The scoring follows strict guidelines, ensuring consistency through regular training and
internal quality control.
Management Indicators: Companies are scored based on specific indicators, and the score for each
theme is weighted according to the industry, size, and location of the company.

E. Scoring Scale
The scoring scale helps companies understand their performance in absolute terms and how they
compare to their peers. Scores for each theme and overall performance allow companies to
benchmark their sustainability management system.

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F. Strengths and Improvement Areas
After scoring, EcoVadis highlights strengths and improvement areas for each theme in the
company’s Scorecard. These insights provide guidance on areas of excellence and suggest
corrective actions in areas that need improvement. The number of strengths and improvement
areas does not affect the overall score but serves as a tool for continuous improvement.
 Strengths: Recognize valuable sustainability practices already in place.
 Improvement Areas: Suggest areas that need further development, ranked by priority for
potential corrective action.

G. Publication
Once the assessment is complete, the Scorecard is published online for both the requesting
organization and the rated company. Additional validation steps are conducted to ensure the
completeness of the analysis, with the Scorecard available for both internal use and stakeholder
communication.

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How Organizations can improve EcoVadis Rating
EcoVadis provides a comprehensive sustainability rating system based on four key areas:
Environment, Labor & Human Rights, Ethics, and Sustainable Procurement. Improving a corporate
EcoVadis score requires focused efforts on enhancing practices in these areas. This section of the
document outlines recommendations for each section, guiding companies toward achieving better
performance and recognition in their sustainability management systems.

1. Environment
1A. Core Assessment Topics
Operations Product
Energy consumption & GHGs Product use
Water Product end-of-life
Biodiversity Customer health & safety
Local & accidental pollution Environmental services & advocacy
Materials, chemicals & waste

1B. Recommendations
1. Develop and Update Environmental Policies
o Establish clear environmental policies that align with international standards such
as ISO 14001.
o Include commitments to climate change mitigation, resource conservation, waste
management, and biodiversity protection.
o Regularly review and update the policies to reflect changes in regulations and best
practices.
2. Implement Energy and Resource Efficiency Programs
o Conduct energy audits to identify inefficiencies in operations and take action to
reduce energy consumption (e.g., adopting renewable energy sources).
o Implement water-saving measures such as water recycling, rainwater harvesting,
and process optimization.
o Minimize waste by improving waste segregation, recycling, and engaging in circular
economy initiatives.
3. Set and Track Emissions Reduction Targets
o Establish measurable carbon reduction targets that align with global standards,
such as Science-Based Targets (SBTi).
o Regularly measure and report on your Scope 1, 2, and 3 greenhouse gas (GHG)
emissions and implement initiatives to reduce them.
o Adopt low-carbon technologies, optimize logistics for fuel efficiency, and engage
suppliers to reduce their emissions.
4. Obtain Environmental Certifications
o Aim for industry-specific certifications such as ISO 50001 (Energy Management) or
LEED certification for building sustainability.

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 o Partner with external auditors to ensure continuous environmental performance
improvement.
5. Protect Biodiversity and Manage Land Use
o Conduct biodiversity impact assessments for business operations located in
sensitive areas.
o Develop conservation initiatives, and partner with NGOs on biodiversity projects.
o Minimize habitat disruption, adopt sustainable land use practices, and create green
spaces to support biodiversity.

1C. Useful Resources

 Greenhouse Gas Protocol (GHGP): https://ghgprotocol.org/corporate-standard
 ISO 14001, ISO 50001 Certifications: https://www.iso.org/standard/60857.html
 Carbon Disclosure Project (CDP): https://www.cdp.net/en
 Science Based Targets Initiative (SBTi): https://sciencebasedtargets.org/
 UN Sustainable Development Goals (SDGs): https://sdgs.un.org/goals

2. Labor & Human Rights

2A. Core Assessment Topics
Human Resources Human Rights
Employee health & safety Child labor, forced labor & human trafficking
Working conditions Diversity, discrimination & harassment
Social dialogue Customer health & safety
Career management & training

2B. Recommendations
1. Strengthen Labor Policies and Procedures
o Align labor policies with international labor standards such as the International
Labour Organization (ILO) conventions.
o Develop formal policies against forced labor, child labor, and workplace
discrimination.
o Ensure all workers have access to fair wages, reasonable working hours, and the
right to collective bargaining.
2. Ensure Workplace Health & Safety Compliance
o Implement occupational health and safety (OHS) management systems (e.g., ISO
45001) to reduce workplace accidents and ensure safe working conditions.
o Conduct regular OHS audits and training programs to raise employee awareness.
o Provide personal protective equipment (PPE) and ensure safety measures are
regularly reviewed and updated.
3. Promote Diversity and Inclusion
o Develop an inclusive work environment by fostering policies that promote gender
equality, non-discrimination, and diversity in hiring practices.

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 o Create employee resource groups, mentorship programs, and diversity awareness
training.
o Collect and analyze data on workforce diversity to continuously improve.
4. Conduct Human Rights Due Diligence
o Perform regular human rights impact assessments to identify and address risks in
business operations and supply chains.
o Engage with stakeholders and local communities to understand human rights issues
and develop mitigation strategies.
o Join international initiatives such as the UN Global Compact to enhance human
rights practices.
5. Engage and Empower Workers
o Establish grievance mechanisms that allow employees to report labor rights
violations anonymously.
o Promote open dialogue between management and employees to improve work
conditions and foster engagement.

2C. Useful Resources

 ISO 45001 Certification: https://www.iso.org/standard/63787.html
 ILO Conventions: https://www.ilo.org/resource/ilo-conventions
 UN Guiding Principles on Business and Human Rights (UNGPs): https://www.business-
humanrights.org/en/big-issues/governing-business-human-rights/un-guiding-
principles/
 Fair Labor Association (FLA): https://www.fairlabor.org/
 Social Accountability : https://sa-intl.org/programs/sa8000/

3. Ethics
3A. Core Assessment Topics
Corruption
Anticompetitive practices
Responsible information management

3B. Recommendations
1. Strengthen Anti-corruption Policies
o Develop and implement a robust anti-bribery and anti-corruption policy aligned
with international standards such as ISO 37001.
o Ensure the policy covers gifts, hospitality, political donations, and conflicts of
interest.
o Provide regular employee training on anti-corruption measures, and establish
internal reporting mechanisms for ethical violations.
2. Enforce Fair Competition Practices

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 o Promote a fair and transparent business environment by adopting policies that
prevent anti-competitive practices.
o Ensure compliance with local and international competition laws, and avoid price-
fixing, monopolistic behaviours, or collusive bidding.
3. Implement Data Protection and Cybersecurity Standards
o Comply with data protection regulations (e.g., GDPR) by implementing a
comprehensive data privacy policy.
o Conduct cybersecurity risk assessments to identify vulnerabilities and safeguard
personal and business data.
o Train employees on data privacy protocols and practices to reduce risk of data
breaches.
4. Ensure Transparency in Marketing and Product Information
o Adopt ethical marketing practices by providing clear, accurate, and honest
information about products and services.
o Ensure compliance with local advertising standards and regulations to avoid
misleading or deceptive marketing.
o Label products transparently, particularly in industries where environmental or
social claims are made (e.g., food, fashion).
5. Whistleblower Protection and Ethics Hotline
o Establish whistleblower policies and mechanisms that allow employees to report
unethical practices confidentially.
o Conduct investigations transparently and take corrective action where necessary.

3C. Useful Resources

 ISO 37001 Certification: https://www.iso.org/iso-37001-anti-bribery-management.html
 General Data Protection Regulation (GDPR): https://gdpr-info.eu/
 OECD Anti-Bribery Convention:
https://www.oecd.org/content/dam/oecd/en/topics/policy-sub-issues/fighting-foreign-
bribery/Convention%20and%20commentaries%20booklet%202024.pdf
 UN Global Compact’s Ten Principles (Anti-Corruption):
https://unglobalcompact.org/what-is-gc/mission/principles

4. Sustainable Procurement
4A. Core Assessment Topics
Supplier environmental practices
Supplier social practices

4B. Recommendations
1. Develop a Sustainable Procurement Policy
o Create and implement a procurement policy that requires suppliers to meet certain
sustainability criteria (e.g., ISO 20400 Sustainable Procurement guidelines).

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 o Align the policy with corporate sustainability goals and ensure it covers
environmental, labor, ethics, and human rights standards.
2. Conduct Supplier Assessments and Audits
o Use supplier scorecards and conduct regular assessments to evaluate suppliers on
sustainability criteria, such as environmental performance, human rights
compliance, and ethical practices.
o Prioritize high-risk suppliers for third-party audits and use platforms like EcoVadis
to monitor their sustainability practices.
3. Collaborate with Suppliers for Continuous Improvement
o Engage suppliers in collaborative sustainability projects, such as resource efficiency
programs, GHG emissions reduction, and fair labor initiatives.
o Provide training and capacity-building opportunities to suppliers, particularly in
developing regions, to help them meet sustainability standards.
4. Integrate Social and Environmental Criteria into Supplier Contracts
o Include mandatory environmental, social, and ethical clauses in contracts with
suppliers.
o Ensure suppliers understand that non-compliance with sustainability standards may
result in penalties or termination of contracts.
5. Monitor Supply Chain Risks Proactively
o Implement supply chain risk management tools to identify and mitigate risks
related to environmental, human rights, and ethical practices.
o Leverage technologies like blockchain for supply chain traceability and
transparency to verify supplier compliance with sustainable practices.
6. Support Local and Ethical Sourcing
o Encourage sourcing from local suppliers to reduce carbon footprints and support
community development.
o Promote fair trade and ethical sourcing practices, particularly for raw materials and
high-impact industries (e.g., agriculture, mining).

4C. Useful Resources

 ISO 20400 Certification: https://www.iso.org/standard/63026.html
 UN Guiding Principles on Business and Human Rights (UNGPs): https://www.business-
humanrights.org/en/big-issues/governing-business-human-rights/un-guiding-
principles/
 CDP Supply Chain membership: https://www.cdp.net/en/supply-chain

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How FutureStation can help

Our EcoVadis Rating focused services

•Policy Development
1. Improve Internal •Process Improvement
Controls for Sustainability •Data Management
•Governance Mechanism

•Identify critical suppliers

•Plan supplier engagement activities
2. Develop a Supplier •Supplier environmental assessment
Engagement Strategy •Supplier social assessment
•Benchmarking by marking scores arising from
assessment

•EcoVadis Questionnaire response development

•Impact-focused disclosure selection with
corroborating activities/evidences underpining
3. Develop Disclosure such disclosures
•Employee handbook alignment
•Sustainability Report developmet
•Climate Risk assesment Report

•Carbon footprint assessment

•Decarbonization strategy development
•SBTi-compliant target setting
4. ESGAdvisory
•ESG goals/targets on social and governance
segment & review mechanism
•ESG Peer Benchmarking

For more details on our services, please visit: https://futurestn.com/#services.

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Why FutureStation?
While there are many reasons that make us the most respected and trusted ESG service provider,
we would like to highlight some of these
1. Our team: A professional service provider is actually as good as the team that is deployed
for providing the service. We bring on the engagement the most competent team across all
the verticals of ESG. The CVs of our team members speak more about this. A rich mix of
experience from leading industries and Big4 professional services firms. We differentiate
ourselves from other service providers by ensuring that our clients are served only by
professionals whose CVs are presented in our proposals
2. Capacity building: The improvement initiatives on ESG does not have a finishing line. It is a
journey that evolves as one makes positive impacts. That is the reason, we try to train the
clients’ relevant teams to build their internal capacities so that they can proceed with the
journey when we come out of our contractual engagement. Our engagement method
includes significant time involvement in training. We try to involve the clients’ teams in the
engagement as much as possible
3. Global Network: We bring in the knowledge, competence and experience of our global
associates as and when necessary.
4. Credentials : We have successfully supported clients across industry verticals in their
process of achieving improved EcoVadis scores

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Creating Value through ESG
Futurestation Services LLP
www.futurestn.com

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