Why ESG Accreditation Matters in Modern MRO Supply Chain Management?

The days when a company could overlook its environmental footprint or ignore ethical procurement are long gone. Modern business thrives on transparency, accountability, and sustainability. That’s where ESG (Environmental, Social, and Governance) steps in. And when it comes to MRO (Maintenance, Repair, and Operations) supply chain management, ESG isn’t just a buzzword, it’s a game changer.

Why? Because outsourcing your MRO supply chain to an integrated supply provider doesn’t just bring benefits such as greater inventory optimization and more efficient and effective processes. It can also lead to improved environmental, social, and corporate governance (ESG) performance as an MRO integrator that is working hard on its own ESG commitments makes for a valuable partner on the journey to reducing your carbon footprint and promoting ethical procurement policies and procedures.

Crucially, integrators can leverage their central position in the MRO supply chain to drive ESG improvements among suppliers. One way to do this is by mandating that key suppliers are evaluated by a respected third-party program such as EcoVadis. What is EcoVadis? EcoVadis is a globally recognized assessment platform that rates organizations’ ESG performance. Participating in businesses receive a score based on 21 indicators across four categories: environment, labor and human rights, ethics, and sustainable procurement. Here representatives from EcoVadis, an integrator and a supplier, explore the value of accreditation as a benchmark.

• MRO integrators enhance ESG performance by embedding sustainability and ethical practices into procurement best practices
• Third-party ESG accreditation platforms like EcoVadis streamline risk analysis and promote transparency across the supply chain
• Suppliers benefit from accreditation through simplified due diligence, improved credibility, and broader customer trust

ESG refers to the three core factors used to measure the sustainability and ethical impact of an organization. Environmental criteria assess how a company reduces its carbon footprint. Social criteria evaluate its relationships with employees, suppliers, and communities. Governance refers to leadership, audits, internal controls, and shareholder rights. ESG forms the foundation for responsible business conduct.

Companies strong in ESG demonstrate responsible leadership, mitigate reputational and operational risks, and are better positioned for growth. The ESG framework helps organizations benchmark their ethical standing while improving accountability. It also supports decision-making for procurement teams, investors, and partners.

MRO (Maintenance, Repair, and Operations) supports the smooth functioning of manufacturing plants, warehouses, and operational facilities. It involves acquiring, managing, and distributing equipment and materials required for routine upkeep and emergency repairs. MRO is essential for minimizing downtime, ensuring safety compliance, and extending the lifecycle of machinery. By streamlining MRO, companies improve productivity, control costs, and reduce waste. As operations scale, the complexity of MRO increases, making it crucial to adopt standardized procurement practices.

MRO also offers opportunities to implement sustainability goals, such as reducing packaging waste and improving energy efficiency. Centralized MRO management contributes to supply chain resilience and performance. ESG alignment in MRO practices adds value through ethical sourcing and supplier collaboration. Thus, MRO is both a tactical and strategic component of business operations.

MRO procurement often involves thousands of products sourced from diverse suppliers, presenting multiple ESG-related risks and opportunities. Procurement decisions influence the environmental impact through product lifecycle considerations like emissions, materials, and disposal. Socially, it’s vital to ensure fair labor practices across the supply base. Governance includes transparency in contracts and ethical supplier relationships.

ESG-focused MRO procurement enables businesses to meet stakeholder expectations and comply with evolving regulations. It also enhances brand reputation, investor confidence, and customer loyalty. Integrating ESG into procurement can identify high-risk vendors early and promote best practices. This proactive approach reduces liability and supports sustainable innovation. ESG metrics allow procurement teams to align vendor selection with company values and long-term goals. Ultimately, MRO procurement becomes a lever for broader ESG progress.

EcoVadis is a global sustainability rating platform that assesses organizations based on a robust, evidence-backed methodology. The evaluation spans four key areas: Environment, Labor and Human Rights, Ethics, and Sustainable Procurement. Companies receive a scorecard with scores and detailed feedback to guide improvement. The platform customizes assessments based on industry, company size, and geographic location, ensuring relevance. Documentation must support all claims, enhancing audit reliability.

Businesses use EcoVadis to assess supply chain risk, benchmark ESG performance, and foster continuous improvement. For suppliers, a high EcoVadis score boosts credibility and opens up new market opportunities. Buyers benefit from centralized risk analysis and time savings. Overall, EcoVadis enhances transparency, accountability, and collaboration across the value chain.

What do businesses gain from asking suppliers to undergo third-party verification? In the case of EcoVadis, one of the main benefits is access to a supply chain management tool that provides both in-depth and efficient risk screening and analysis of suppliers all in one place. “EcoVadis reduces the need to obtain these details directly from suppliers, allowing us to review the information without requesting all the specifics,” says Erica Zabriskie, Global Responsible Procurement Director at RS Integrated Supply.

Loucks compares the EcoVadis certification process to an International Organization for Standardization (ISO) assessment, familiar to many businesses. “EcoVadis is a very thorough auditor of your ESG programs,” he says. “It’s like having an ISO audit.”

This rigor is an important part of why EcoVadis verification is so highly valued and widely trusted. Assessments are, for instance, fully evidence based. “You cannot simply include a declarative answer,” explains Imran Ahmed, an EcoVadis senior account executive. “It must be supplemented with evidence, and we provide guidance on what we are looking for. We can’t, for example, accept a policy as evidence or accept material that is very old or not relevant.”

Assessments are also tailored to ensure relevance. “We make sure that the questionnaire is adapted towards the supplier that’s answering the questions and their area of work,” says Ahmed. “We look at the industry, the location, and company size to ensure we configure the questionnaire accordingly.”

“It helps us understand everything that’s going on and having all that information at our fingertips is very helpful. The significant reduction in time spent collecting and analyzing data has been one of the most impactful returns on investment.”

– Erica Zabriskie, Global Responsible Procurement Director, RS Integrated Supply

The process of validation offers benefits for suppliers too – even though it can be onerous, particularly for smaller enterprises. “We recognize that signing up to these kinds of initiatives is a big undertaking,” says Zabriskie. “That said, more and more companies are enquiring about ESG. Organizations of all sizes are getting questioned about these topics and aligning with a third party can help suppliers address those questions.”

“Accreditation can reduce the burden on suppliers,” she adds. “It is a form of due diligence, providing evidence of your commitment and the action you are taking – and having the right certification can remove the need to answer every question again and again.”

Accreditation can reduce the burden on suppliers. It is a form of due diligence, providing evidence of your commitment and the action you are taking – and having the right certification can remove the need to answer every question again and again.”

– Erica Zabriskie, Global Responsible Procurement Director, RS Integrated Supply

Bryan Loucks, strategic account manager at fluid power distributor Applied Industrial Technologies, agrees that going through a single process that generates results they can share with all customers has benefits. “Grading us as a supplier based on our ESG performance started with RS Integrated Supply but now it’s something that other customers ask about,” he says. “When they do, we can point them to our EcoVadis score.”

“Grading us as a supplier based on our ESG performance started with RS Integrated Supply but now it’s something that other customers ask about. When they do, we can point them to our EcoVadis score.”

– Bryan Loucks, Strategic Account Manager, Applied Industrial Technologies

“Customers think it’s great because we’re able to go beyond our own metrics and show where we stand from a third-party perspective,” he continues. “It’s one thing to be able to say that you as a company are doing X, Y, and Z to improve but it’s another to have an external organization like EcoVadis say here’s where you stand.”

“Customers think it’s great because we’re able to go beyond our own metrics and show where we stand from a third-party perspective. It’s one thing to be able to say that you as a company are doing X, Y, and Z to improve but it’s another to have an external organization like EcoVadis say here’s where you stand.”

– Bryan Loucks, Strategic Account Manager, Applied Industrial Technologies

Both the organization requesting certification and the supplier have access to the scorecard that EcoVadis creates after an assessment. This includes the overall rating as well as areas for improvement, listed in terms of high, medium, and low priority.

These areas for improvement are a fundamental part of the EcoVadis process, says Ahmed: “We’re not just saying this is their score or even just this is what needs to improve. We are committed to supporting the rated company on a journey of continuous improvement.

“We have an EcoVadis Academy,” he adds. “This is our e-learning tool, and we provide direct links within improvement areas to corresponding courses. For example, if the rated company has not been able to provide metrics on their greenhouse gas emissions, we will direct them to a course that shows how to calculate these emissions and the importance of emissions data.”

For the 2.8 million companies screened by EcoVadis, working on the areas for improvement is proving effective, with an average increase of more than eight points by the time reassessment comes around. “Ultimately we see our solution as a model for impact,” says Ahmed. “Requesting organizations will use our solution to improve their sustainable procurement and engage trading partners on sustainability. The rated companies there will then leverage the insights that we give them and use the platform’s tools to improve their sustainability management and adopt best practices. They will have greater positive impact on society and the planet. Together we will drive impact at scale.”

ESG accreditation is becoming a critical differentiator in modern MRO supply chain management. It not only reinforces a company’s commitment to sustainability and ethical practices but also enhances transparency and trust across the supply base.

Third-party platforms like EcoVadis provide a rigorous, evidence-based framework that helps both integrators and suppliers benchmark and improve their ESG performance.

As more organizations prioritize responsible sourcing, ESG accreditation will continue to play a pivotal role in driving long-term value and resilience in the supply chain.