Article
How does EcoVadis take climate risks into consideration?
In brief
Expert insight — François Dequenne: ENV7003 is a new question added to questionnaires in Q1 2026 for size S companies and up. It directly reflects the extreme weather events that derive from climate warming. It asks for two kinds of evidence: a physical climate risk assessment and a watershed-related risk assessment. No impact on the score — but what comes out of it is displayed on your scorecard.
How do you assess physical climate risks?
Examples of documents to attach:
- Dedicated physical climate risk section in the TCFD report
- Physical climate risk assessment report
- Insurance risk audit
- Detailed presentation material of the assessment results
Your document must demonstrate that the company has carried out an assessment identifying potential operational disruptions and financial impacts linked to physical climate hazards. The assessment analyses how changing climate patterns could disrupt the company's assets and activities:
- Acute physical risks: event-driven hazards — intensifying hurricanes, floods, wildfires, heatwaves.
- Chronic physical risks: longer-term shifts in climate patterns — persistently higher temperatures, sea-level rise, prolonged drought episodes.
How do you assess watershed-related risks?
Examples of documents to attach:
- Watershed risk assessment report
- Water stress monitoring report
- Export from a water risk assessment tool
- Double materiality matrix highlighting the financial materiality section
Your document must demonstrate that the company has assessed potential operational disruptions and financial impacts linked to local water stress: the vulnerability of operating sites to severe water scarcity, groundwater depletion, or poor water quality before treatment.
The tools usually used: WRI's "Aqueduct" water risk atlas and WWF's "Water Risk Filter".
Key takeaways
- ENV7003 has appeared in questionnaires since Q1 2026 for companies of size S and up — anticipate it at reassessment.
- No impact on the score, but the strengths and improvement areas identified appear on the scorecard.
- Two pieces of evidence expected: a physical climate risk assessment (acute and chronic) and a local water risk assessment.
- The free Aqueduct (WRI) and Water Risk Filter (WWF) tools are enough to produce a first documented assessment.