Climate & Environment

Value Chain

Meaning statusEstablishedSource recordDirect document linkedWhy these are different

definitionValue chain vs chain of activitiesdefinitionCorporate Sustainability Reporting Directive (CSRD) · CSRD — ESRS 1 §22

Definition

The value chain is the full range of activities required to bring a product or service from conception through production and delivery to consumers and end-of-life — extending Porter's firm-level concept to the whole chain of actors upstream (suppliers, raw materials) and downstream (distributors, users, disposal). In sustainability it is the accounting and accountability unit: GHG Protocol scope 3 covers the value chain, due diligence laws cover the chain of activities, and footprint methods trace impacts along it.

References

Cross-cuttingdefinition

full upstream AND downstream (ESRS 1 §63, IFRS S1, CSRD, CSDS).

Value chain vs chain of activities · verified 2026-08-22

EUdefinition

full range of upstream/downstream activities, resources and relationships (ESRS 1 §22)

Corporate Sustainability Reporting Directive (CSRD)CSRD — ESRS 1 §22 · verified 2026-08-22Official text

www.hbs.eduBulk import source

Source imported for editorial provenance.

ghgprotocol.orgBulk import source

This reference provides supporting context for how “Value Chain” is defined and used.

Overview

How it is used

The concept structures Scope 3 accounting, supply chain due diligence, value chain analysis in development (GVC literature), and life cycle thinking.

Why it matters

Nothing sustainable can be achieved inside one firm's fence; the value chain is the real unit of the problem and the solution.