EcoVadis, a French technology firm that ranks companies for environmental responsibility, ethical treatment of workers and other practices, has received more than $30 million in venture funding, as the business of vetting corporate supply chains continues to grow rapidly.
Companies spend billions of dollars annually to ensure their suppliers aren’t using slave labor, polluting natural resources or engaging in political corruption. They often turn to third parties to investigate far-flung contractors and confirm to investors and consumers that they are behaving ethically.
EcoVadis, founded nine years ago by a pair of French entrepreneurs, is one of several companies aiming to make information about supply chains easier and cheaper to track. The firm provides details on miners, parts makers, garment factories and other companies world-wide that corporations can view before signing them on as suppliers. About 150 firms, including Johnson & Johnson, Nestlé SA and Verizon Communications Inc., use EcoVadis to track more than 30,000 suppliers.
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