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Value Chain - Include Your Partners

Map and manage ESG impacts across your entire supply chain and distribution network.

What is Value Chain?

Value Chain helps you understand and manage ESG impacts beyond your organization. It's where you:

  • Map entities - Identify suppliers, partners, customers
  • Classify relationships - Categorize by type and impact
  • Share data - Collaborate with partners
  • Assess risks - Evaluate supply chain vulnerabilities
  • Track performance - Monitor partner ESG metrics

Why Value Chain Matters

Modern ESG reporting (especially ESRS and CSRD) requires:

  • Scope 3 emissions - Upstream and downstream impacts
  • Value chain due diligence - Know your suppliers
  • Supply chain transparency - Trace materials and impacts
  • Shared responsibility - Collaborate on improvements

Key Capabilities

🗺️ Entity Mapping

Build your value chain map:

  • Suppliers - Raw materials, components, services
  • Manufacturers - Production partners
  • Distributors - Logistics and transport
  • Customers - B2B customers
  • Tiers - Track Tier 1, 2, 3+ suppliers
  • Geographic mapping - Visualize global footprint

🏷️ Classification System

Organize entities systematically:

  • Entity types - Supplier, manufacturer, distributor, customer
  • Product categories - Link to what they provide
  • Spend categories - Financial materiality
  • Risk categories - High/medium/low risk
  • Materiality topics - Which ESG topics are relevant
  • Custom tags - Organization-specific classifications

📊 Data Sharing & Collection

Collaborate with partners:

  • Data requests - Ask suppliers for ESG data
  • Shared portals - Partners input their data
  • Standardized formats - Templates for consistency
  • Approval workflows - Review before accepting
  • Historical tracking - Year-over-year comparison

🔍 Risk Assessment

Evaluate supply chain risks:

  • Country risk - Geographic vulnerabilities
  • Sector risk - Industry-specific issues
  • Supplier size - SME vs. large corporations
  • Certification status - ISO, B-Corp, etc.
  • Performance data - Based on actual data
  • Risk scoring - Automated risk calculations
  • Heat maps - Visual risk identification

📈 Performance Tracking

Monitor value chain ESG performance:

  • Aggregated emissions - Total Scope 3
  • Supplier scorecards - Individual performance
  • Trends - Improvement over time
  • Benchmarking - Compare suppliers
  • Engagement metrics - Response rates, data quality

🔗 Network Visualization

See the big picture:

  • Interactive maps - Geographic view
  • Network diagrams - Relationship flows
  • Impact flows - Trace materials and emissions
  • Drill-down - Explore specific pathways

How to Use Value Chain

Step 1: Map Your Value Chain

  1. Go to Value ChainEntities
  2. Click "Add Entity"
  3. Enter entity details:
    • Name, country, contact
    • Entity type (supplier, manufacturer, etc.)
    • Products/services provided
    • Tier level
  4. Add classification tags
  5. Upload supporting documents (contracts, certs)
  6. Click "Create Entity"

Step 2: Classify Entities

  1. Select an entity
  2. Go to Classification tab
  3. Assign:
    • Spend category (based on procurement data)
    • Risk level (auto-calculated or manual)
    • Material topics (which ESG topics apply)
    • Priority level (for engagement)
  4. Save classification

Step 3: Request Data

  1. Select entities to engage
  2. Click "Request Data"
  3. Choose data type:
    • GHG emissions
    • Energy and water usage
    • Waste and materials
    • Social indicators
    • Certifications
  4. Set deadline
  5. Customize invitation message
  6. Click "Send Requests"

Step 4: Review Submitted Data

  1. Go to Data RequestsSubmitted
  2. Review each submission
  3. Check for completeness and quality
  4. Request clarifications if needed
  5. Approve or reject
  6. Approved data flows to Core and Performance

Step 5: Assess Risks

  1. Go to Value ChainRisk Assessment
  2. System auto-calculates risk scores based on:
    • Country risk indices
    • Sector risk profiles
    • Data availability
    • Spend level
  3. Review high-risk entities
  4. Assign mitigation actions
  5. Track risk reduction over time

Step 6: Monitor Performance

  1. Go to Value ChainPerformance
  2. View aggregated metrics:
    • Total Scope 3 emissions
    • Supplier engagement rate
    • Data quality scores
  3. Compare suppliers
  4. Identify improvement opportunities

Integration with Other Features

→ Core

Value chain data feeds into Core for reporting.

Example: Supplier emissions data → Included in Scope 3 calculations in Core

← Performance

Performance tracks value chain metrics.

Example: Supplier emissions → Tracked in Performance dashboard

← Materiality

Material topics guide value chain engagement.

Example: Labor rights material → Focus on labor data from suppliers

→ Risk Management

Value chain risks inform overall risk assessment.

Example: High-risk supplier → Creates supply chain risk in Risk Management

← Collaboration

Collaboration enables partner access.

Example: Invite supplier as guest user → They input data directly

Best Practices

Start with Priority Suppliers

  • Focus on highest spend (80/20 rule)
  • Prioritize high-risk categories
  • Start with Tier 1, expand to Tier 2+
  • Build relationships gradually

Make it Easy for Suppliers

  • Use simple data requests
  • Provide templates and examples
  • Offer training and support
  • Recognize good performance

Use Spend Data

  • Link to procurement systems
  • Classify by spend category
  • Prioritize based on financial materiality
  • Track spend-based emissions

Build Trust

  • Explain why you need the data
  • Show how data will be used
  • Respect confidentiality
  • Share aggregated insights

Improve Over Time

  • Start with basic data
  • Increase granularity gradually
  • Provide feedback to suppliers
  • Collaborate on improvements

Value Chain Scope

Upstream (Pre-Organization)

  • Raw material extraction
  • Component manufacturing
  • Transportation to you
  • Services (consulting, IT, etc.)
  • Capital goods

Downstream (Post-Organization)

  • Product transportation
  • Product use
  • End-of-life disposal
  • Customer impacts
  • Sold product emissions

Both Directions

  • Employee commuting
  • Business travel
  • Waste generated
  • Leased assets

Common Questions

How many suppliers should we include?

Start with suppliers representing 80% of your spend or those in high-risk categories. Expand coverage over time.

What if suppliers won't share data?

Start with estimated data using spend-based calculation methods. Build relationships and explain benefits. Some regulatory pressure may help.

How do we calculate Scope 3 emissions?

Use supplier-specific data when available. Otherwise, use spend-based emission factors (e.g., from EPA or DEFRA databases).

How do we ensure data quality?

Use validation rules, require supporting documentation, compare with benchmarks, and build ongoing relationships with suppliers.

Next Steps

Need Help?