GID Value Chain Impact Data

Why measure Value Chain Impact? 

In an increasingly globalized world, most organizations have several tiers of suppliers located in multiple regions and spanning across many industries. Such global interconnectedness makes companies struggle to fully map and understand the value chains of their operations and products. Moreover, suppliers in sourcing countries rarely offer transparency or report on their respective value chains, adding another level of complexity to the mix.

Our solution: Built on our Global Impact Database, GID value chain impact data provides estimates of these blind spots, performing a hotspot analysis of global value chains to determine the most material social and environmental indirect impacts of companies. Subsequently, we provide our consolidated sectoral expertise to do deep dives into one or more impact, offering an in-depth understanding of the most relevant threats and risks in your value chain.

USPs:

  • Natural (e.g. air pollution), social (e.g. underpayment), and human (e.g. creation of human capital) impacts are covered
  • Resulting impacts are expressed in monetary values, making them easy to understand and compare​ with financial metrics
  • Measure the indirect impacts of global companies, countries, or sectors​
  • Upstream and downstream value chain impact is included, giving a more complete picture of companies footprint​ through their suppliers and clients
  • Our unique attribution method determines value chain responsibility based on value added, avoiding double counting for indirect impacts
  • Possibility to quickly derive data-driven insights on social and environmental impact of value chains​

How to use Value Chain Impact Data?

  • Hotspot analyses to get an overview of indirect impacts across sourcing countries and sectors
  • Social and environmental impact deep dives integrating company primary data, e.g. sourced products and sourcing countries
  • Human rights due diligence
  • Thematic deep dives (e.g., biodiversity impact)
  • Improve value chain inclusivity and transparency
  • Develop a strategy to mitigate risks and prioritise resources
  • Lobby for legislation supporting the transition towards more sustainable value chains

Case study 

Supermarkets are increasingly committed to close living income and living wage gaps in their value chains. However, as the value chains of supermarkets’ products comprise numerous businesses located in many sectors and geographies, making concrete steps towards human rights compliance can be extremely challenging and resource-intensive.

We have developed a modular and scalable approach to enable supermarkets to develop a grounded and actionable living income and living wage strategy – in line with the OECD guidelines and the UN guiding principles for business and human rights – that can complement supermarkets’ existing activities and strategic elements.

Our Global Impact Database, contains validated data for the calculation of living wage and living income, offering the opportunity to make data-driven estimates of the material gaps within supermarkets’ global value chains. In addition, by combining our GID with supermarkets’ primary data, we can modulate and scale-up this approach.

The results of our value chain impact assessment will enable supermarkets to understand the underpayment and underearning problem, to identify the potential drivers for change, and to integrate and promote responsible practices within their value chains.

Contact us to get more information about the GID

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