What's changed in SAQ 5.0?

SAQ 5.0 introduces a more flexible and modular assessment structure, designed to ensure the questionnaire remains relevant and proportionate for suppliers of all sizes, sectors, and operating models. Question sets are now tailored based on site headcount and primary industry sector, with a clear distinction between mandatory and optional questions.

Background

The Sustainability Assessment Questionnaire (SAQ 5.0) has been enhanced to better support modern, global supply chains. The updated structure focuses more closely on the specific characteristics of each supplier, helping to reduce unnecessary complexity-particularly for non-production and service-based organisations-while maintaining robust sustainability coverage.

Under SAQ 5.0:

• Mandatory questions contribute directly to the overall SAQ 5.0 rating.
• Optional questions provide additional insight but do not impact the rating.

This approach ensures suppliers are assessed fairly and consistently, while buyers continue to receive meaningful and comparable sustainability data across their supply chains.

To support users, NQC provides briefing sessions and supporting materials that explain the SAQ 5.0 structure, scoring approach, and how industry sector (NACE®) and site headcount influence question routing and scoring-particularly when updating an existing SAQ.

Steps

To access SAQ 5.0 webinar recordings:

Select the relevant language below to register for and view the SAQ 5.0 briefing webinar:

• English
• Deutsch
• Français
• Italiano
• Português
• Español
• 日本語
• 中文

The webinar explains the SAQ 5.0 structure, scoring approach, and practical completion guidance.

To access SAQ 5.0 briefing slides and supporting materials:

Select the relevant language below to download the SAQ 5.0 briefing slides:

• English
• Deutsch
• Français
• Italiano
• Português
• Español
• 日本語
• 中文

The slides explain how NACE® industry codes and site headcount influence question routing within SAQ 5.0, and how updates to your responses may impact your overall SAQ 5.0 rating.

What is SAQ 5.0?

The SAQ 5.0 is the Sustainability Assessment Questionnaire, created by Drive Sustainability - a Group of Automotive OEMs, and available exclusively on the NQC platform. The SAQ is designed as a location based assessment that assesses the sustainability performance of an organisation's defined site/location.

The SAQ is based on the fundamental principles of social, environmental and governance responsibility that are consistent with applicable laws and international standards, which include the UN Guiding Principles on Business and Human Rights, ILO Conventions, OECD Guidelines for Multinational Enterprises, the Rio Declaration on Environment and Development, as well as the Paris Agreement.

Background

The SAQ was created to remove duplication and improve efficiency for suppliers when responding to standard questions relating to sustainability activities.

The SAQ assesses the policies and practices of suppliers in areas of human rights and environmental sustainability, health and safety, business ethics and compliance, responsible sourcing of raw materials and responsible supplier management.

Steps

What does the SAQ measure?

The SAQ is designed to assess and verify a supplier's compliance with CSR and sustainability expectations. It evaluates the policies, processes, functions, tools, and internal controls that an organisation has in place to manage its operations, meet objectives, and support continuous improvement.

How is the pricing policy/fee structure defined when a supplier is requested to pay for an SAQ?

NQC's pricing is based on the services provided. All fees are determined using transparent, non-discriminatory criteria and do not influence assessment ratings.

Background

1. Overview of Business and Payment Models
NQC operates a hybrid commercial structure comprising both Buyer-Pays and Supplier-Pays models to ensure broad market access, proportional cost allocation, and the integrity of ESG assessments across value chains:
Buyer-Pays Model: Purchasing organisations pay for access to the NQC platform, aggregated supply chain ESG dashboards and analytics, reporting tools, and supplier risk and performance monitoring capabilities.
Supplier-Pays Model: Assessed entities (suppliers) contribute a standardised assessment fee that covers the administrative, technological, and analytical validation costs required to review, verify, and maintain their individual ESG profile, evidence and rating.

Both models operate under strict governance protocols to maintain total analytical independence, ensuring that payment terms do not compromise the objectivity or credibility of the resulting ESG ratings.

2. Criteria and Elements Used for Establishing Fees
All fees charged by NQC are determined through objective, transparent, and non-discriminatory criteria. Fees reflect the underlying cost of service provision, technology infrastructure, and analytical rigor rather than commercial leverage.

A. Elements Considered for Buyer Fees
Buyer fees are established according to the scale of deployment and operational resources required:
Scope of Assessment Programme: The volume of invited or assessed suppliers across the buyer's supply base.
Functional Platform Access: The specific platform modules in use including the use and scale of application programming interfaces (APIs) required.
User Seat Licensing: The number of active user accounts required across the client's organisation.
Support and Client Management: The level of operational support, dedicated client management, buyer and supplier onboarding assistance, and technical integration services agreed upon.

B. Elements Considered for Supplier / Rated Entity Fees
To maintain transparency, equal treatment, and a level playing field across the supply base, NQC applies a uniform, flat-fee model to all participating suppliers, regardless of enterprise size, turnover, sector, or the specific question pathways triggered within the assessment.

Rather than charging per submission or gating re-evaluations behind additional fees, the supplier fee is structured as an all-inclusive, 12-month annual assessment fee. This model is deliberately designed to foster continuous sustainability performance improvement by removing financial barriers to re-assessment.

The fee is calibrated against the following objective operational elements:
Continuous Improvement & Unlimited Re-Assessments (12-Month Access): Suppliers are permitted to revise, update, and resubmit their assessment data, evidence, and corrective action plans as often as necessary throughout their active 12-month validity period at no additional cost. The fee reflects the ongoing analytical and platform capacity required to support continuous progress tracking and iterative scoring enhancements.
Standardised Independent Evidence Verification: Every submission undergoes rigorous verification protocols to ensure data integrity. The fee covers the baseline operational cost of verifying supporting documentation (such as formal policies, certifications, GHG calculations, and third-party audit reports), and maintaining data consistency across all participants.
One-to-Many Efficiency & Data Sharing: A single verified assessment can be shared with an unlimited number of requesting buyer organisations within the network at no extra charge. This eliminates duplicative assessment fees, reduces reporting fatigue, and delivers administrative cost savings to the supplier.
Continuous Gap Analysis & Remediation Tools: The fee encompasses access to performance gap analysis and educational benchmark resources that help suppliers pinpoint deficiencies and align their practices with peers and wider ESG standards.
Platform Hosting, Security & Ongoing Support: The operational costs associated with secure data hosting, regulatory data privacy compliance, cybersecurity safeguards, and dedicated, multilingual supplier helpdesk support provided throughout the active subscription cycle.

3. Principles of Fairness, Proportionality, and Non-Discrimination
NQC adheres to the following binding principles across all billing activities:
Strict Independence from Rating Outcomes: Fees charged to suppliers or buyers are entirely decoupled from the ESG rating, score, or validation result. An assessed entity receives the exact same rigorous evaluation irrespective of fee structure, and no payment can alter or guarantee an assessment score.
Cost-Reflective and Proportionate: Pricing is calibrated to cover the reasonable operational costs of technology development and maintenance, customer service and support, continuous methodology enhancement, and expert data verification.
Prohibition of Anti-Competitive Tying: ESG rating and assessment services are sold independently. Clients and suppliers are never required to purchase consulting, sustainability advisory, remediation support, or secondary software services as a condition of receiving an ESG rating.
Equal Treatment (Non-Discrimination): Comparable clients and suppliers within the same categorisation tier are subject to identical fee schedules under equivalent contractual terms.

4. Pricing Transparency and Modifications
Standard fee tiers and service schedules are communicated directly to clients and suppliers prior to contracting or survey submission. Pricing structures are subject to regular internal review to ensure they remain aligned with cost developments, technological efficiencies, and regulatory guidelines. Any modifications to fee schedules are published and notified in advance, applying prospectively to subsequent assessment cycles.

For inquiries regarding commercial terms or to request a copy of our current standard fee schedules, please contact sales@nqc.com.

What documentary evidence is required when completing the SAQ 5.0?

Documentary evidence is requested from suppliers as part of the SAQ completion process to support and verify the responses provided by suppliers. The evidence required will adjust based on the answers provided by a supplier and the route taken through the SAQ.

Background

When completing an SAQ, a supplier will be asked to submit documentary evidence to support their responses within their SAQ submission. The documentary evidence may include the following types of documents/examples:

• CSR reports
• Policy documents
• Company/employee handbooks
• Training materials
• International or national certifications
• Examples of types of energy used e.g. renewable/green etc.
• GHG reduction target and plans
• CDP report (where available)
• Processes relating to restrictive substances (where used)
• Purchasing terms and conditions
• Supplier Code of Conduct
• Supplier training materials
• Supplier audit materials
• Conflict Minerals Reporting Template (where relevant)
• Extended Minerals Reporting Template (where relevant)

A supplier will only be required to upload relevant documentary evidence based on the routing they take through the SAQ. Not all routes will require all the documentary evidence listed in this FAQ.

How does the platform decide which SAQ 5.0 questions are mandatory?

Mandatory questions are automatically determined based on the number of employees at the location in question and the industry sector(s) you select for your organisation when filling out the SAQ 5.0 (your answers to questions 0b and 0e).

Background

The SAQ 5.0 is an adaptive assessment that prioritises questions based on a supplier's size and sector. By selecting the correct number of employees at the location in question and your industry sector, using the standard NACE® classifications, the platform identifies the core sustainability topics considered most relevant for your organisation, making those questions mandatory. This determines the route you will take through the SAQ 5.0.

Selecting any of the following NACE Codes will affect the mandatory questions required for SAQ completion (in combination with the number of employees (either above or below 250) at the location/site for which you are answering the SAQ:

• NACE 33 - Repair and installation of industrial machinery and equipment.
• NACE 39 - Remediation activities and other waste management services
• NACE 43 - Specialized construction activities
• NACE 45 - Wholesale and retail trade of motor vehicles and motorcycles; repair of motor vehicles and motorcycles
• NACE 46 - Wholesale trade, except of motor vehicles and motorcycles
• NACE 47 - Retail trade, except of motor vehicles and motorcycles
• NACE 49 - Land transport; transport via pipelines
• NACE 50 - Water transport
• NACE 51 - Air transport
• NACE 52 - Warehousing and support activities for transportation
• NACE 53 - Postal and courier activities
• NACE 55 - Accommodation
• NACE 56 - Food and beverage service activities
• NACE 58 - Publishing activities
• NACE 59 - Motion picture, video and television programme production, sound recording and music publishing activities
• NACE 60 - Programming and broadcasting activities
• NACE 61 - Telecommunications
• NACE 62 - Computer programming, consultancy and related activities
• NACE 63 - Information service activities
• NACE 64 - Financial service activities, except insurance and pension funding
• NACE 65 - Insurance, reinsurance and pension funding, except compulsory social security.
• NACE 66 - Activities auxiliary to financial services and insurance activities.
• NACE 68 - Real estate activities
• NACE 69 - Legal and accounting activities
• NACE 70 - Activities of head offices; management consultancy activities
• NACE 71 - Architectural and engineering activities; technical testing and analysis
• NACE 72 - Scientific research and development
• NACE 73 - Advertising and market research
• NACE 74 - Other professional, scientific and technical activities
• NACE 75 - Veterinary activities
• NACE 77 - Rental and leasing activities
• NACE 78 - Employment activities
• NACE 79 - Travel agency, tour operator, reservation service and related activities
• NACE 80 - Security and investigation activities
• NACE 81 - Services to buildings and landscape activities
• NACE 82 - Office administrative, office support and other business support activities
• NACE 84 - Public administration and defence; compulsory social security
• NACE 85 - Education
• NACE 86 - Human health activities
• NACE 87 - Residential care activities
• NACE 88 - Social work activities without accommodation.
• NACE 90 - Creative, arts and entertainment activities
• NACE 91 - Libraries, archives, museums and other cultural activities
• NACE 92 - Gambling and betting activities
• NACE 93 - Sports activities and amusement and recreation activities
• NACE 94 - Activities of membership organisations
• NACE 95 - Repair of computers and personal and household goods
• NACE 96 - Other personal service activities
• NACE 97 - Activities of households as employers of domestic personnel
• NACE 98 - Undifferentiated goods-producing activities of private households for own use.
• NACE 99 - Undifferentiated service-producing activities of private households for own use.

Steps

The following questions determine the mandatory questions issued and the route taken through the SAQ 5.0:

1. Within the Profile Details section of the SAQ 5.0 questionnaire, questions 0b and 0e will influence which subsequent questions are considered mandatory or optional for you.
2. Question 0b refers to the number of employees at the location in question.
3. Question 0e refers to your primary industry category based on NACE®, which is a global classification system of products and services.
4. Carefully select the correct responses for these questions. Your response to these questions will determine which questions are mandatory for your completion.

How is the SAQ 5.0 scored and rated?

SAQ 5.0 results show two main indicators: a 'SAQ Rating' (Rating A-F) based on mandatory questions for your industry (based on the NACE Code selected) and location headcount size, and a 'Sustainability Score' percentage reflecting performance across all mandatory answered questions.

Background

The SAQ 5.0 Rating reflects how well you meet the essential sustainability requirements for your specific industry sector.

SAQ Rating:

A: 100% (Green)
B: 80% - 99% (Green)
C: 60% - 79% (Amber)
D: 40% - 59% (Amber)
E: 20% - 39% (Red)
F: Below 20% (Red)

Sustainability Score: This percentage shows your overall performance, including mandatory questions you answered, similar to previous SAQ versions.

The questions that contribute to the SAQ 5.0 Rating will differ depending on the route you have taken through the SAQ 5.0 (which is based on the NACE Code you selected and the number of employees). Specific details of how your SAQ Rating has been calculated are shared within the platform.

The SAQ Rating is calculated using ONLY the information and documentary evidence submitted by the supplier. No external third-party data or intelligence is used to support the calculation of the Rating.

When an SAQ is submitted, our team of compliance analysts review the SAQ responses alongside the documentary evidence submitted by the supplier to confirm the self-attestation. Where there are gaps in evidence, the supplier is informed of this through the platform.

Steps

To view your scoring results in detail:

1. Sign in to your NQC account.
2. Find the completed questionnaire that you want to view the rating for on your Dashboard (use filters and search if needed).
3. Select the questionnaire tile to go to the questionnaire overview page.
4. On the 'Overview' screen, you will see your SAQ 5.0 Rating as well as a breakdown chart showing your rating for each sustainability section within the SAQ 5.0 questionnaire.
5. If a customer has set a minimum requirement that your current SAQ 5.0 response does not yet meet, this will appear as an 'Outstanding minimum requirement' on this page.
6. To update your SAQ 5.0 questionnaire response-either to improve your rating or to meet your customer's minimum requirement-select the 'Update' button on the questionnaire tile.

To understand how your SAQ 5.0 Rating has been calculated:
You can access the 'How the SAQ 5.0 Rating has been calculated' details from the 'Overview' screen. You will find this below the SAQ 5.0 Rating breakdown section, which contains the breakdown chart.

Does the SAQ 5.0 Rating include analysis of any third party information or data sources in addition to the responses I submitted?

No. The SAQ Rating is based wholly on your questionnaire responses and the documentary evidence you uploaded. We do not incorporate any additional intelligence or third party content to calculate the SAQ Rating.

Background

The SAQ Rating and how it is calculated is open and transparent. The Rating uses only the responses and documentary evidence provided by a supplier to calculate the SAQ Rating. The possible marks per answer option and the associated weighting of questions is also publicly available for suppliers to review. For further details see question "How is the SAQ 5.0 scored and rated?".

Steps

To view your scoring results in detail:

1. Sign in to your NQC account.
2. Find the completed questionnaire that you want to view the rating for on your Dashboard (use filters and search if needed).
3. Select the questionnaire tile to go to the questionnaire overview page.
4. On the 'Overview' screen, you will see your SAQ 5.0 Rating as well as a breakdown chart showing your rating for each sustainability section within the SAQ 5.0 questionnaire.
5. If a customer has set a minimum requirement that your current SAQ 5.0 response does not yet meet, this will appear as an 'Outstanding minimum requirement' on this page.
6. To update your SAQ 5.0 questionnaire response, either to improve your rating or to meet your customer's minimum requirement, select the 'Update' button on the questionnaire tile.

To understand how your SAQ 5.0 Rating has been calculated:

1. Sign in to your NQC account.
2. Select your questionnaire tile to go to the questionnaire overview page.
3. Scroll down past the SAQ 5.0 Rating breakdown chart.
4. Locate the 'How the SAQ 5.0 Rating has been calculated' section to review the details of how your rating was calculated.

What are the standard NACE® classifications and how can I learn more about them?

The 'statistical classification of economic activities' in the European Community, abbreviated as NACE, is the classification of economic activities in the European Union (EU). The term NACE is derived from the French title: Nomenclature statistique des activités économiques dans la Communauté européenne. Various NACE versions have been developed since 1970.

Background

The NACE code structure was created and is owned by the European Union (EU). Specifically, it was established by the EU Member States and the European Commission. The development, maintenance, and ownership of the system are managed by Eurostat, which is the statistical office of the European Union.

The SAQ 5.0 uses NACE Rev.2 within Question 0e.

A full listing of NACE Rev.2 codes and the background to NACE can be found here - NACE Rev.2 codes and background information.

NQC Rev. 2 includes the following numbering structure (NACE Code):

• A first level consisting of headings identified by an alphabetical code (sections);
• A second level consisting of headings identified by a two-digit numerical code (divisions);
• A third level consisting of headings identified by a three-digit numerical code (groups); and
• A fourth level consisting of headings identified by a four-digit numerical code (classes).

Question 0e within the SAQ 5.0 uses the third and fourth level NACE Code, i.e. at the group and class level. This is shown within the question, e.g. 27.00 - Manufacture of electrical equipment is the Group and within this a range of NACE Codes from 27.11 to 27.90 (the class level).

What is our commitment to independence & integrity in the issuing of an SAQ Rating?

At NQC, we recognise that the integrity, objectivity, and independence of our ESG ratings are critical to maintaining the trust of rated organisations, we have established a robust governance framework designed to identify, prevent, manage, and disclose potential and actual conflicts of interest.

Background

1. Independence of ESG Rating Activities
Our ESG ratings are driven solely by objective methodologies using the data provided by the submitting organisation. We do not offer other commercial activities, such as consulting, advisory, or audit services to ensure that our rating outcomes are never influenced by commercial relationships or the provision of ancillary services to rated organisations.

2. Identification and Management of Conflicts
NQC maintains comprehensive internal policies to proactively identify potential conflicts of interest at the organisational, departmental, and individual levels. Should a potential conflict arise, it is immediately escalated to our independent Compliance function. Where a conflict cannot be adequately mitigated, we will either decline to provide the ESG rating or, where appropriate, clearly and fully disclose the nature of the conflict to relevant stakeholders.

3. Analyst Independence and Remuneration
We ensure that the analysts and personnel involed in the ESG rating process are free from undue influence.
Remuneration: The compensation of our rating analysts and management is strictly decoupled from the revenue generated by the specific entities they rate and is not tied to the outcome of any ESG rating.
Personal Interests: Analysts are prohibited from participating in the rating process for any entity in which they have a financial interest, a recent employment history, or a close personal relationship.

4. Governance and Oversight
Our compliance framework is overseen by our Head of Sustainability and Trade Compliance , who operates independently from our commercial and analytical teams. This function is responsible for the continuous monitoring of our business practices, conducting regular internal audits, and supporting mandatory annual training for all employees on our Conflicts of Interest Policy.

When will SAQ 5.0 be updated and what is the update methodology?

Overview and Governance
The Sustainability Assessment Questionnaire (SAQ) is the standard for assessing sustainability performance in the automotive supply chain. The SAQ question set is exclusively owned and governed by Drive Sustainability. To ensure the assessment remains highly relevant and aligned with evolving global standards, the SAQ undergoes a comprehensive review and update cycle every two years. Accelerated updates or interim amendments are triggered on an ad-hoc basis when significant new legal or regulatory frameworks come into force.

Background

Phase 1: Horizon Scanning and Needs Assessment
The update process begins with a strategic review of the global ESG (Environmental, Social, and Governance) landscape. This includes:
Regulatory Tracking: Monitoring emerging global supply chain due diligence laws to ensure the SAQ addresses the latest compliance mandates.
Industry Alignment: Reviewing alignment with cross-industry standards (e.g., GRI, UN Global Compact, ILO conventions) and emerging automotive-specific sustainability goals.

Phase 2: Multi-Stakeholder Consultation & Feedback
To ensure the SAQ remains both ambitious and practically executable, Drive Sustainability facilitates a rigorous, multi-tiered consultation process:
OEM Working Groups: Drive Sustainability collaborates directly with its OEM membership to align the SAQ with the strategic sourcing, risk management, and sustainability targets of major vehicle manufacturers.
Tier 1 Supplier Engagement: Through the Drive+ membership programme, Tier 1 suppliers are actively engaged to provide feedback on the practicality, clarity, and administrative impact of proposed questions.
Data-Driven Insights (NQC): As the technological partner and platform host, NQC aggregates anonymised data, user analytics, and direct feedback from the global community of buyers and suppliers. This analysis highlights friction points, frequently misunderstood questions, and areas where user experience can be improved.

Phase 3: Legal Review & Content Finalisation
Once the initial draft of the updated question set is compiled from stakeholder inputs, it undergoes strict legal and compliance vetting.
External Counsel Review: Specialised legal counsel is engaged to validate that the terminology and data requirements strictly align with the latest global regulatory requirements.
Consensus Building: Drive Sustainability consolidates all legal, practical, and strategic inputs to finalise the revised question set, ensuring a balanced approach between required due diligence and supplier feasibility.

Phase 4: Platform Implementation
With the question set finalised, NQC takes ownership of the technical implementation and system configuration:
System Configuration: NQC embeds the new question architecture into the assessment platform, managing dependencies, conditional logic, and language translations.
Scoring & Calibration: NQC defines and updates the underlying scoring algorithm to reflect new weightings and priority areas with input from Drive Sustainability.
Validation Protocols: NQC develops and programmes the updated validation guidelines (both automated and manual verification checks) to ensure submitted evidence meets the required standards.
Corrective Action Plans/Recommendations: NQC scripts updated dynamic recommendations and corrective actions that trigger automatically when a supplier fails to meet a specific standard, driving continuous improvement.

Phase 5: Testing, Release, and Change Management
Before global rollout, the updated SAQ undergoes User Acceptance Testing (UAT) with key stakeholders within Drive Sustainability and NQC's wider user base. Upon release, Drive Sustainability and NQC execute a joint change-management strategy, providing updated guidance documents, supplier training materials, and support resources to ensure a seamless transition for all platform users.

The last update to SAQ 5.0 occurred in March 2025 when the modularity/routing paths aligned to NACE Code and Employee headcount were introduced. Further details on this update can be found within "What's changed in SAQ 5.0?

The next planned update to SAQ 6.0 is currently within Phase 3 of this methodology and wider communication with the NQC platform user community will be shared when available.