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Flagship blog - eng

How EcoVadis Methodology Updates Affect Your ESG Reporting and Medals

News & Insights
EcoVadis continuously develops and updates its assessment methodology to reflect evolving ESG trends, regulatory expectations, and market best practices. These updates gradually strengthen requirements across all ESG themes, including Sustainable Procurement.

At Flagship, we closely follow these changes to help our clients navigate the evolving EcoVadis landscape. One recent update is particularly positive for small and medium-sized enterprises (SMEs) seeking to strengthen their sustainability reporting and improve their EcoVadis scores. EcoVadis has added the Voluntary Sustainability Reporting Standard for Non-Listed Micro, Small and Medium Enterprises (VSME) to its list of approved reporting initiatives, enabling companies to achieve up to 100 points for reporting indicators when fully aligned.

VSME Integration into the EcoVadis Methodology

With the integration of VSME, EcoVadis introduced two clearly defined reporting strengths to better reflect the depth and completeness of SME reporting:

  • Reporting in accordance with the VSME Basic Module
  • Maximum score: 75/100
  • Covers Environment, Labor & Human Rights, and Ethics. Sustainable Procurement is not included.
  • Reporting in accordance with the VSME Basic and Comprehensive Module
  • Maximum score: 100/100
  • Covers all EcoVadis themes, including Sustainable Procurement.

Formal recognition requires compliance with VSME requirements and a clear indication of whether the Basic or Comprehensive module is used. This differentiation enables a more accurate and fair assessment of non-listed SMEs by reflecting different levels of reporting maturity.

Why This Change Matters

The introduction of VSME-specific strengths improves transparency and ensures that EcoVadis scoring more accurately reflects the scope and quality of sustainability information disclosed by SMEs.

For SMEs, this creates a proportionate and credible pathway to improve EcoVadis reporting scores while aligning with EU sustainability reporting guidance for small and medium-sized enterprises. At the same time, it supports growing ESG data requests from large companies, which may rely on VSME-aligned disclosures when collecting sustainability information from their SME suppliers. Financial institutions are also increasingly expected to request sustainability data structured in line with the VSME framework.

A Reminder on EcoVadis Medals

Many companies aim to improve their EcoVadis score in order to achieve or retain a medal. However, EcoVadis assessments are dynamic. Methodology updates, shifting benchmarks, and overall improvements across the assessed company population mean that medal thresholds can change from year to year. Companies that do not continue strengthening their sustainability practices may lose points or medal eligibility.

Current medal thresholds (January 2026):

  • Platinum: Top 1% (≥99th percentile)
  • Gold: Top 5% (≥95th percentile)
  • Silver: Top 15% (≥85th percentile)
  • Bronze: Top 35% (≥65th percentile)

Percentile ranks are calculated at the time of scorecard publication and compare a company’s performance with all companies assessed globally in the previous 12 months, across all industries.

Medal Eligibility: Industry Exclusions

In addition to score and percentile thresholds, EcoVadis applies industry- and activity-based exclusions. Companies involved in certain activities may be ineligible for medals or badges, regardless of their overall score.

This currently includes companies significantly involved in:

  • Weapons, including controversial weapons and ammunition
  • Tobacco, including the manufacture and processing of tobacco products
  • Fossil fuels, such as coal mining and companies with significant involvement in coal or unconventional oil and gas activities

These eligibility criteria are subject to periodic review by EcoVadis.

What This Means for Companies

The inclusion of VSME in the EcoVadis methodology offers SMEs a practical opportunity to improve reporting scores using a tailored and recognised standard, while reinforcing the need for continuous improvement to remain competitive within EcoVadis benchmarking.

At Flagship, we support companies throughout the entire EcoVadis journey, from first-time assessments to recertifications, with a strong focus on practical impact. As an Accredited EcoVadis Consulting Partner, we help organizations understand evolving methodology requirements, structure their sustainability data (including VSME-aligned reporting), and translate documentation into measurable score improvements. In 2025 alone, we supported companies across the CEE region in achieving significant score increases and medals across a wide range of sectors.

Our approach combines gap analysis, targeted documentation support, and clear score-improvement strategies tailored to each company’s size, maturity, and business context. As EcoVadis expectations continue to rise, driven not only by methodology updates but also by growing supply chain and financial institution demands, we help companies stay competitive, credible, and prepared for what comes next.

👉 Learn more about our EcoVadis support