Why Suppliers Are Being Asked for ESG Assessments

If you’re a Malaysian manufacturer supplying export markets, chances are your customers have already mentioned EcoVadis and SMETA audit requirements.

Global buyers—from automakers to food brands—now want proof that their suppliers follow good environmental, social, and governance (ESG) practices. Regulations such as the EU Corporate Sustainability Reporting Directive (CSRD), the Corporate Sustainability Due Diligence Directive (CSDDD), and the EU Deforestation Regulation (EUDR) are pushing companies to check every link in their supply chain.

In simple terms, your buyer is responsible for your actions. That’s why they ask for independent ESG assessments—to make sure their suppliers treat workers fairly, manage waste responsibly, and prevent corruption or human-rights risks. For you, passing an EcoVadis and SMETA audit is often the difference between staying on a vendor list or losing a contract.

What Are Supply-Chain ESG Assessments?

A supply-chain ESG assessment is an external review of how a company manages key sustainability issues such as:

• Environmental performance (energy use, emissions, waste)

• Labor and human rights (wages, working hours, health & safety)

• Ethics and anti-bribery systems

• Responsible sourcing from other suppliers

These assessments help buyers measure risk and give suppliers a recognized score or audit result that can be shared with multiple customers. Two of the most common tools used worldwide are EcoVadis and SMETA audit systems.

Understanding EcoVadis and SMETA Audit Systems

What Is EcoVadis?

EcoVadis is a global sustainability rating platform used by over 130,000 companies.
It reviews your policies, actions, and results across four themes:
Environment, Labor & Human Rights, Ethics, and Sustainable Procurement.

You answer an online questionnaire, upload evidence, and receive a score from 0–100.
Companies that perform well receive a medal: Bronze, Silver, Gold, or Platinum.
EcoVadis ratings are recognized by large buyers such as General Motors, Nestlé, L’Oréal, and BASF.

What Is SMETA?

SMETA stands for Sedex Members Ethical Trade Audit. It is an on-site audit—conducted at your factory—developed by Sedex, the global supply-chain data-sharing platform.
A SMETA audit checks compliance with the Ethical Trading Initiative (ETI) Base Code, covering:

• Working conditions and wages

• Health and safety

• Environment and business ethics (4-pillar audits)

Many brands like Unilever, IKEA, and Tesco require their suppliers to pass a SMETA audit every year or two.

EcoVadis and SMETA Audit: What’s the Difference?

In short: EcoVadis is about systems and evidence; SMETA is about conditions and compliance. Many large companies use both—the EcoVadis and SMETA audit combination gives them a full view of supplier performance.

Who Uses Which System (by Industry)

Why EcoVadis and SMETA Audit Matter for Your Business

1. RFQ Eligibility: Without a valid EcoVadis or SMETA audit, many buyers won’t even invite you to tender.

2. Contract Retention: Keeping an existing export customer now depends on ESG performance—compliance protects revenue.

3. Faster Onboarding: Buyers with multiple suppliers use EcoVadis and Sedex to speed qualification.

4. Preferred Supplier Status: Higher scores (EcoVadis Silver or SMETA “no major findings”) can move you up a buyer’s priority list.

5. Efficiency: One assessment shared with many buyers saves time and reduces audit fatigue.

Common Challenges in Passing EcoVadis and SMETA Audit

Typical pain points Malaysian companies face:

• Missing formal policies (CSR, anti-bribery, environment, health & safety)

• Incomplete HR or legal documents (contracts, payroll, overtime records)

• No data tracking (energy, water, waste, or accidents)

• Lack of ethics controls (whistleblowing, conflict-of-interest policy)

• No supplier screening system

How SuSciCo Helps You Succeed in EcoVadis and SMETA Audit

At SuSciCo, we help Malaysian manufacturers turn ESG compliance into business advantage.

Our approach: “One core system—multiple frameworks.” That means you prepare once, and your documents work for both EcoVadis and SMETA audit, as well as ISO 14001/45001 or Malaysia’s SIRIM 55 ESG certification.

We provide:

• ✅ Rapid ESG gap assessment aligned to your buyer’s system

• ✅ Policy and evidence packs (English/Bahasa Malaysia) ready to upload

• ✅ KPI starter toolkit for energy, safety, and waste data

• ✅ Corrective Action Plan (CAP) tracking integrated with ISO routines

• ✅ Buyer-specific playbooks (Unilever SMETA, TfS EcoVadis, RBA electronics)

Whether you’re aiming for a first-time EcoVadis Bronze medal or to pass your SMETA audit cleanly, SuSciCo’s consultants make the process faster, clearer, and fully adapted to Malaysian regulations.

Final Takeaway

Independent ESG assessments are no longer optional—they’re a business passport.
By mastering EcoVadis and SMETA audit requirements, Malaysian suppliers can stay qualified, keep key customers, and grow into new international markets.
SuSciCo is here to make that journey easier, helping you move from compliance stress to competitive advantage.

From Survival to Strategy

Navigating the ESG jungle isn’t just about survival. Yes, today you may feel like you’re juggling audits, platforms, and disclosure requests just to keep buyers and investors satisfied. But with the right approach, these same systems can become a growth strategy.

A stronger ESG rating doesn’t only reduce compliance headaches—it builds trust with international buyers, opens doors to new markets, and signals credibility to investors. What feels like box-ticking today can become a competitive advantage tomorrow.

At SuSciCo, our mission is simple: to help Malaysian SMEs and PLCs turn ESG requirements from a burden into an opportunity. With the right evidence, preparation, and alignment, you don’t just survive the ESG jungle—you thrive in it.

Contact SuSciCo to map your ESG survival path today.

SuSciCo helps in implementing Sustainability Practices

At SuSciCo, we help companies implement a Customer-Centric Sustainability approach by integrating ESG principles into their strategies. Our services include GHG management, sustainability reporting (GRI, IFRS, Bursa Malaysia), supply chain optimization, and ISO 14001 EMS development. We offer PCF and LCA assessments, sustainable procurement strategies, and waste management solutions to align products and operations with customer expectations. Through tailored ESG training and stakeholder engagement, we empower businesses to reduce environmental impacts, foster innovation, and build trust for sustainable growth.