Why the Scorecard Matters
As any company dependent on a supply chain grows, so does the need to understand what’s happening at the sourcing level of product development. Sourcing is the heartbeat of our growing company, and without a steady finger on the pulse, important information can slip by with potentially extreme consequences. While the consistent, close contact we’ve had with many on-the-ground sourcing partners has given us comparatively good visibility into our essential oil supply chains, we recognize there’s always room for improvement.
Our goal is to evaluate every oil supply chain at least twice by the year 2030 to ensure that our ethical standards are being met across all our supply chains. The first evaluation takes a baseline measurement, showing us where a supplier may need improvement. After working through the weak links of a supplier’s evaluation score, the supply chain will be evaluated again.
If the score still isn’t high enough to earn a Cō-Impact Sourcing® (CIS) status, we’ll determine whether we continue to work with the supplier to bring the score up.
Our scorecard levels — silver, gold, and diamond — are designed to help our supply chain partners meet Cō-Impact Sourcing standards and acknowledge those who go above and beyond.
The silver level recognizes supply chains that are meeting Cō-Impact Sourcing expectations. The gold and diamond levels recognize partners who have invested significant additional resources, time, and effort finetuning their supply chains to calibers of excellence. Examples of how partners have built their supply chains to standards of excellence include measuring and reducing greenhouse gases, using renewable energy sources, conducting socioeconomic surveys, and more. dōTERRA is proud to partner with supply chains that meet the CIS silver level and above.
Invested in Helping
The Cō-Impact Sourcing evaluation program is unique because dōTERRA isn’t interested in just assigning a label to our supply chain partners. We’re actively invested in helping them improve their supply chains when it comes to ethics and sustainability.
In 2023, dōTERRA awarded $107,000 to improve 26 essential oil supply chains as part of the Cō-Impact Sourcing Challenge Fund—a collaborative, dōTERRA-owned program designed to help partners improve their supply chain evaluation scores. With the fund, dōTERRA supports sourcing partners who want to identify areas of improvement and develop a detailed plan for success. dōTERRA even funds up to 75% of the cost needed to implement success plans. We believe in investing in partners who share our ethos and priorities to source the best and help the most. After all, when everyone in the supply chain succeeds, we all win.
How the Scorecard Works
We developed the Cō-Impact Sourcing evaluation scorecard to measure the impact of our sourcing practices across international supply chains. The dōTERRA Sourcing team and professional consultants analyzed existing certification programs—such as Organic to measure sustainability or Fair Trade to measure fair labor conditions—and added any needed indicators to address unique processes not covered by existing certifications.
Process, People, and Planet.
The scorecard includes dozens of indicators to measure each supply chain against a consistent standard of ethical and sustainable Cō-Impact Sourcing practices, categorized in three areas: process, people, and planet.
There are also two types of indicators on the scorecard: mandatory and scored. Suppliers must reach 100% compliance across all mandatory indicators and at least 50% compliance across all scored indicators to be eligible for an official Cō-Impact Sourcing status. If suppliers reach 80% mandatory compliance during their baseline assessment, they’re awarded a provisional Cō-Impact Sourcing status until reevaluation.
Supply Chain Evaluation at a Glance...
Achieving a Cō-Impact Sourcing status means the supply chain is either meeting or exceeding industry standards of ethical and sustainable sourcing practices.
dōTERRA supply partners must reach 100% compliance across all mandatory scorecard indicators to be eligible for an official Cō-Impact Sourcing (CIS) status.
The partner has achieved 100% mandatory compliance and 50% to 70% compliance of all applicable scored indicators.
The partner has achieved 100% mandatory compliance and 71% to 90% compliance of all applicable scored indicators.
The partner has achieved 100% mandatory compliance and at least 91% compliance of all applicable scored indicators.
Here are Some Examples of Cō-Impact Sourcing Scorecard Indicators
Do you keep accurate records of hours worked and payments given for all employees and temporary workers in your supply chain?
What percentage of your supply chain growers and harvesters document all agricultural inputs used to produce your biomass?
Do men and women receive the same wages for the same work in your supply chain?
Have you completed a large-scale social impact project in your sourcing area?
Do the harvesting processes of your supply chain follow the IUCN sustainability requirements?
What percent of energy used by your entire supply chain comes from renewable sources?
Supply Chain Evaluation
Evaluate all our essential oil supply chains twice (baseline and follow-up)
Achieve the following ratings by the second evaluation: 95% Silver, 55% Gold, and 35% Diamond
99 Supply chains evaluated to date (approximately 43%) with 35 of those evaluations completed in 2023.
29 supply chains awarded CIS silver and above statuses to date with 8 of those statuses awarded in 2023.
Official status: 3 Silver, 6 Gold, and 3 Diamond
Provisional status: 39 Silver, 20 Gold, and 3 Diamond