EcoVadis, a leader in sustainable supply chains, has agreed a US$200m investment from private equity firm CVC Growth Partners II to enable it to scale globally and engrain sustainability, fair labour practices and ethics into enterprise supply chains and business commerce.
More than 450 enterprises – representing over $2.5trn in business spending – rely on EcoVadis’ supplier ratings and engagement platform to evaluate and improve environmental and social performance across their global supply chains. EcoVadis’ evidence-based assessment methodology, delivered via a sophisticated SaaS platform and backed by a dedicated team of CSR analysts, is claimed to be the most trusted and adopted approach in the industry. Today, EcoVadis’ network of assessed companies tops 60,000 across 155 countries.
EcoVadis said the investment will help accelerate the adoption of sustainability ratings throughout the globalised economy
“The combination of global sustainability initiatives, evolving compliance regulations and corporate purpose commitments are putting a new and urgent spotlight on the supply chain – and creating an immense and growing market for our solutions,” says Frédéric Trinel, co-founder and co-CEO of EcoVadis. “CVC’s global network and reach will play a critical role in helping us scale and change the way businesses operate.”
Pierre-Francois Thaler, co-CEO and co-founder of EcoVadis, adds: “Momentum towards a more environmentally and societally focused economy has been building for years. Today’s executives recognise the power of sustainability to protect their brands, increase valuation, inform investment strategies and positively impact the world. The supply chain is the single greatest lever for creating real change and making an impact. But when left unmanaged, it becomes a breeding ground for hidden risk – including forced labor, environmental waste, corruption, security issues and more. This investment from CVC Growth Partners is a testament to the critical role that ESG and sustainability factors play in today’s market.”
The transaction is expected to close in Q1 2020 following regulatory approvals.