EcoVadis Acquires Ulula for Human Rights Data Transparency
EcoVadis has announced its acquisition of Ulula, a specialist in labour and human rights data collection.
This move aims to address the growing demand for robust human rights due diligence amidst an evolving regulatory landscape.
EcoVadis, a leading sustainability intelligence platform serving more than 130,000 businesses across 220 industries, is at the forefront of providing sustainability ratings, risk management tools and carbon tracking solutions.
The addition of Ulula, a certified B-Corporation with a proven track record in human rights data collection, is poised to significantly enhance EcoVadis' capabilities in this critical area.
Pierre-François Thaler, Co-CEO of EcoVadis, says: "With the acquisition of Ulula, EcoVadis will be well positioned to integrate and scale up supply chain labour and human rights risk due diligence, meeting customer demands for on-the-ground, verifiable data.
“This complements our in-depth ratings expertise and bolsters our offering to help companies around the world comply with new regulations."
Changes in ESG regulations
The acquisition is well timed: statistics from the International Labour Organisation show that 63% of the 28 million people trapped in forced labour globally are in the private sector, with a significant portion within business supply chains.
This sobering reality has prompted governments worldwide to introduce stringent regulations around human rights due diligence.
Recent legislative developments include the Corporate Sustainability Due Diligence Directive (CSDDD), the Corporate Sustainability Reporting Directive (CSRD), various modern slavery acts and the EU Forced Labour Regulation.
These laws mandate companies to implement comprehensive grievance mechanisms and provide verifiable details about sustainability practices throughout their supply chains.
Non-compliance can result in severe penalties, including fines of up to 5% of global turnover under the CSDDD.
How Ulula increases EcoVadis’ offerings
Ulula's platform, which focuses on collecting direct, recurring feedback from workers and communities about labour and human rights conditions, will play a crucial role in EcoVadis' services.
The platform's standout features include recurring surveys, expanded workforce sampling at scale, and an anonymous third-party system ensuring user confidentiality.
These capabilities will enable EcoVadis to provide more accurate and comprehensive insights into supply chain practices.
Antoine Heuty, Founder of Ulula, says: "Ulula and EcoVadis share an ambition to confront and accelerate progress on the devastating scope of threats to human rights.
“Joining forces will enable us to combine Ulula's direct labour and human rights data collection and reliable insights with EcoVadis' global reach and expertise."
The combined solution aims to help businesses not only identify human rights risks within their supply chains but also offer actionable insights and access to remediation.
This comprehensive approach will be particularly valuable as companies navigate the complexities of upcoming regulatory frameworks..
Pierre-François says: "This complements our in-depth ratings expertise and bolsters our offering to help companies around the world comply with new regulations, ultimately contributing to a more sustainable and equitable global economy."
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