Strategic Acquisition Strengthens EcoVadis’ Global Supply Chain Solutions
EcoVadis, a top-tier platform for sustainability intelligence, has revealed its acquisition of Ulula, a renowned provider of human rights technology and analytics. This strategic move will bolster EcoVadis’ ability to improve working conditions and drive positive change across global supply chains. Ulula’s expertise in on-the-ground worker engagement will significantly enhance the depth and reliability of EcoVadis’ solutions, promoting fair and responsible employment practices worldwide.
Addressing Evolving Risks and Compliance Demands
Recent International Labour Organization (ILO) data reveals that 63% of the 28 million individuals in forced labor globally are within private sector supply chains. The increasing emphasis on human rights and anti-slavery due diligence is reflected in recent regulations such as the Corporate Sustainability Due Diligence Directive (CSDDD) and the Reporting Directive (CSRD). These regulations mandate rigorous and transparent disclosure on sustainability performance, impacting both EU and non-EU companies with significant turnover in Europe. By 2029, companies will be required to establish grievance mechanisms within their supply chains, with non-compliance resulting in potential fines of up to 5% of global turnover.
The EU Forced Labor Regulation and the US Tariff Act of 1930 Section 307 have already enforced stricter due diligence requirements for products made with forced labor. Local jurisdictions, including Germany’s LkSG, the California Transparency Act, and the Modern Slavery Acts in the UK and Canada, continue to introduce new laws and requirements for grievance mechanisms. Through this acquisition, EcoVadis aims to bridge information gaps left by traditional mechanisms, providing real-time, on-the-ground feedback from workers and communities regarding labor and human rights conditions.
Enhancing EcoVadis Insights with Ulula’s Expertise
Pierre-François Thaler, co-founder and co-CEO of EcoVadis, shared his excitement about the acquisition, stating, “Integrating Ulula enhances EcoVadis’ capability to expand our due diligence efforts in labor and human rights risk management.” By combining Ulula’s on-the-ground, verifiable data with our comprehensive ratings expertise, we enhance our capability to meet regulatory demands and provide valuable insights for companies globally.”
Founded in 2015, Ulula—meaning “reveal” in Chichewa, a Southern African dialect—has engaged with communities and workers in sectors such as agriculture, mining, and energy across 70 countries, from the Niger River Delta to the highlands of Peru. The Ulula platform’s automated workforce surveys, grievance management systems, and analytics dashboards will greatly enhance the EcoVadis platform, providing actionable insights and supporting effective remediation efforts.
Innovative Solutions for Enhanced Visibility and Accountability
The integration of Ulula’s platform will address three key areas to improve workforce visibility and practices:
- Recurring Surveys and Expanded Sampling: Ensuring comprehensive and regular feedback from the workforce.
- Anonymous Third-Party System: Protecting user confidentiality and encouraging honest reporting.
- Accessible and Tailored Technology: Providing a user-friendly interface accessible from any device, with language and cultural adjustments.
Antoine Heuty, founder and CEO of Ulula, stated: “Our shared ambition with EcoVadis is to confront and accelerate progress on human rights and working conditions across global supply chains. Combining Ulula’s direct data collection with EcoVadis’ global platform will drive unprecedented positive impact.”
The combined efforts of EcoVadis and Ulula will deliver a consolidated product offering in preparation for forthcoming regulatory changes, enhancing global supply chain transparency and accountability.
