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The EcoVadis Global CSR Risk & Performance Index 2017 illustrates the CSR performance of over 20,400 companies evaluated by EcoVadis, based on their scorecards across the calendar years 2015 and 2016. The results are overall positive, with most portfolios edging closer to being considered low CSR risk. Yet, certain portfolios continue to hold medium to high CSR risks, for example large size companies (equal to, or more than, 1000 employees) in the wholesale industry division, transport industry division, and primary materials industry division. Their CSR performance lagged the world average across both calendar years.
The 2016 world average of both size groups (large & S-M) are about 44 points (out of 100), S-M companies are improving faster than large size companies (14.9% v.s 12.3%). It suggests that recent initiatives focused on CSR issues (e.g modern slavery, conflict minerals, environmental pollution) in the value chain are paying off, and we can expect greater dividends in the future as long as initiatives continue their efforts. But some questions which purchasers will have to ask themselves:
•How does a value-chain partner measure up against its industry peers? Is it a laggard, part of the herd, or a leader?
•What region-specific CSR risks and opportunities are present?
•Human rights spotlight: What is making large organizations to take action?