Value Chain Mapping

A value chain map provides an overview of the inputs, outputs and activities an organisation carries out to generate cash flows, which, in turn, affects its ability to create value for itself, its providers of capital, and others.  

The value chain map starts with raw materials and finishes with consumption and end-of-life, considering relationships and resources along the way regardless of whether or not they are directly owned or controlled by the organization. 

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Why Value Chain Mapping Matters

Value chain mapping is a foundational activity in ESG strategy and reporting. Effective value chain mapping enables organisations to:

  • Considers sustainability matters beyond your direct operations and control, for a more comprehensive materiality assessment required by globally leading reporting frameworks including IFRS and GRI.
  • Helps determine where you haveoversight of your material matters and where there are blind spots
  • Supports more effective ESGmanagement strategies by connecting the dots between teams, suppliers, and systems, and helping you prioritise those that matter most.

What Value Chain Mapping Includes 

 

    • Identifying the key activities that occur upstream and downstream as the entity delivers its products and services

    • Identifying the resources and relationships the entity depends on, and impacts, to support risk and opportunity identification and assessment

    • Considering Tier 1 supplier relationships, as well as Tiers 2 and 3 if known

    • Visual map development for communication and reporting

    • Recommendations for where to focus for materiality assessment

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