What is ESG analytics?

ESG analytics is the analysis and visualization of environmental, social, and governance data to measure performance, track progress against targets, benchmark against peers, and identify disclosure gaps. It converts raw ESG data into insight that supports decision-making and strategy.

How is ESG analytics different from ESG reporting?

ESG reporting is about disclosing performance to stakeholders in a structured report; ESG analytics is about interpreting the underlying data to understand trends, risks, and opportunities. Analytics informs strategy and target-setting, while reporting communicates results. EcoActive provides both.

What can ESG analytics show?

ESG analytics can show performance against targets and KPIs, trends over time, peer and industry benchmarks, risk factors, and gaps in disclosure. Dashboards aggregate data from multiple frameworks so teams can view and interpret it in one place.

Does ESG analytics support peer benchmarking?

Yes. Benchmarking ESG performance against peers and industry references helps companies gauge the effectiveness of their initiatives and identify areas for improvement. EcoActive includes peer benchmarking in its analytics.

How does EcoActive's ESG analytics work?

EcoActive collects and organizes ESG data from multiple sources, tracks KPIs, visualizes performance through real-time dashboards, benchmarks against peers, and aligns outputs with frameworks such as CDP, and TCFD, enabling data-driven decisions and continuous improvement.

Who uses ESG analytics?

Sustainability, finance, and risk teams use ESG analytics to monitor performance, prepare for disclosure, engage stakeholders, and inform strategy, particularly as ESG data becomes central to investment and regulatory decisions.

What is double materiality?

Double materiality assesses ESG issues from two directions: financial materiality (how sustainability issues affect the company's financial position and performance) and impact materiality (how the company affects the environment and society). A topic is material if it is significant from either perspective.

What is the difference between double materiality and single materiality?

Single materiality — used by ISSB standards (IFRS S1/S2) — asks only whether sustainability issues affect the company financially. Double materiality adds a second dimension: how the company affects the world. Under CSRD, both must be assessed.

Is double materiality mandatory?

Yes, under the EU's Corporate Sustainability Reporting Directive (CSRD), companies in scope must conduct a double materiality assessment following the European Sustainability Reporting Standards (ESRS). Other frameworks, such as ISSB, currently focus primarily on financial materiality.

What is financial materiality vs impact materiality?

Financial materiality is about sustainability matters that affect enterprise value and financial performance. Impact materiality is about the company's actual or potential effects on the environment and society. Double materiality requires reporting on a topic if it is material under either lens.

Is a topic in scope if it is only financially material, not impact material?

Yes. Under ESRS, a topic triggers disclosure obligations if it is material from either or both perspectives. Financial materiality alone is sufficient.

What are the main challenges of a double materiality assessment?

The main challenges are the expanded reporting scope and the difficulty of gathering and communicating a broad spectrum of data on the company's impacts on people, the environment, and society. Software that structures stakeholder input, scoring, and ESRS topic mapping reduces this burden.

How long does a double materiality assessment typically take?

For first-time adopters working manually, 3 to 6 months is typical — depending on value chain complexity and stakeholder engagement scope. EcoActive's structured workflow significantly reduces this timeline.

Does the DMA need board sign-off?

ESRS 1 requires governance over the DMA process. In practice, material topics should be reviewed and endorsed by senior governance — typically the audit committee or sustainability committee — before the sustainability statement is approved.

Does the DMA have to be repeated every year?

Yes, with proportionality. Companies must reassess each reporting period, but ESRS 1 allows a lighter-touch update if circumstances have not materially changed. Thresholds and methodology documentation must still be maintained.

What is the value chain scope for a CSRD DMA?

ESRS 1 requires assessment across the full value chain — upstream (suppliers, raw materials, contracted workers), own operations, and downstream (distributors, retailers, end-users, product end-of-life). Proportionality applies to depth of assessment across tiers.

What happens if our DMA is challenged during assurance?

Limited assurance under CSRD covers the process and documentation of the DMA, not just its conclusions. Gaps in stakeholder evidence or undocumented thresholds can result in a qualified opinion. EcoActive's audit and review capabilities are designed to address this — with full documentation exports structured for assurance.

How does EcoActive support double materiality assessments?

EcoActive maps financial and impact materiality across all ESRS topics, structures stakeholder engagement and scoring, and integrates the results directly into CSRD-aligned reporting, making the assessment repeatable and audit-ready.

Value Chain Management

Value Chain Management for Connected ESG Reporting

Value Chain Management helps organizations identify, organize, and manage sustainability-related information across their upstream and
downstream value chain.
EcoActive connects value chain activities with impacts, risks, opportunities, ESG data, Scope 3 emissions, supporting evidence, and disclosure
requirements — helping reporting teams understand where sustainability matters arise and how they affect reporting.

What is Value Chain Management in Sustainability Reporting?

Value Chain Management in sustainability reporting is the process of understanding and managing the ESG information associated with the activities and business relationships that sit before and after a company’s own operations.

A company’s sustainability impacts and risks do not necessarily stop at its organizational boundary.

They may originate with suppliers, logistics providers, contractors, distributors, customers, product use, or other business relationships.

UPSTREAM VALUE CHAIN

Suppliers and Business Partner

The upstream value chain covers the activities and relationships that contribute to the company’s products or services before they reach its own operations.

This can include:

Raw-material suppliers
Product and component suppliers
Purchased goods and services
Contractors
Transportation and logistics providers
Other upstream business partners

DOWNSTREAM VALUE CHAIN

Distribution, Customers and End-User

The downstream value chain covers activities and relationships that take place after the company’s own operations.

This can include:

Distributors
Retailers
Transportation
Customers
Product use
End-users
Product end-of-life

ESRS 2 | VALUE CHAIN
What Do the ESRS Require?

Value chain information forms an important part of reporting under the European Sustainability Reporting Standards (ESRS).
Revised ESRS 2 includes SBM-1 — Strategy, Business Model and Value Chain and requires organizations to describe relevant elements of their upstream and downstream value chain. It also connects the value chain with the process for identifying and assessing material impacts, risks, and opportunities.

Describe the Value Chain

Build an understanding of the significant activities, actors, and business relationships across the upstream and downstream value chain.

Identify Where IROs Arise

Determine whether material IROs arise within own operations, upstream, downstream, or across multiple parts of the value chain.

Include the Value Chain in Materiality

Material sustainability matters may arise across the value chain. Connect this context with the identification and assessment of IROs.

Identify the Information Required

Determine which metrics, qualitative information, policies, actions, and evidence are required from internal and external sources.

Manage Estimates and Assumptions

Maintain visibility into the methodology and basis used when value chain data relies on estimates, proxies, or assumptions.

Maintain Traceability

Value chain information should remain connected with its source, methodology, supporting evidence, review, and final disclosure.

What Are You Managing Across the Value Chain?

Different sustainability matters can arise at different stages of the value chain.

Value Chain Area	Examples	Reporting Connection
Suppliers	Raw materials · Purchased goods · Contractors	Environmental impacts · Workforce matters · Scope 3
Logistics	Inbound and outbound transportation	Emissions · Energy · Climate impacts
Distribution	Warehousing · Retail · Distributors	Emissions · Resource use · Product movement
Customers and end-users	Product use · Customer impacts	Social impacts · Scope 3 · Product-related matters
End-of-life	Disposal · Recycling · Recovery	Waste · Circular economy · Scope 3

The relevant scope depends on the organization’s business model and where its material sustainability-related matters arise

HOW IT WORKS

Value Chain Management: Step by Step

A useful value chain process goes beyond building a list of suppliers.

It establishes the relationship between business activities, sustainability matters, data, evidence, and disclosure.

1. Map the Value Chain

Define the significant upstream and downstream activities relevant to the organization.Capture important: a) Business relationships b) Activities c) Products d) Services e) Locations f) Geographies g) Reporting EntitiesThe objective is to create enough structure to understand where material sustainability matters may arise.

2. Connect the Value Chain to Materiality

Map value chain activities to the company's material sustainability topics and IROs.EcoActive's Double Materiality Assessment helps organizations connect value chain context with impact and financial materiality.

3. Define Data Requirements

Identify what information is needed from different parts of the value chain.This may include: a) GHG activity data b) Supplier sustainability information c) Workforce information d) Environmental metrics e) PoliciesCertifications f) Supporting documentation g) Qualitative disclosures

4. Collect and Organize Information

Bring relevant information into a structured reporting process with defined data owners and reporting periods.Instead of treating every supplier or value chain request as a separate exercise, maintain the information in the context of the disclosure requirements it supports.

5. Validate and Review

Review information for: a) Completeness b) Consistency c) Supporting evidence d) Methodology e) Reporting period f) Estimates and assumptions

6. Connect Value Chain Data to Disclosure

Use approved value chain information across materiality, metrics, GHG emissions, targets, actions, and disclosures.This creates a connected reporting path:Value Chain → Sustainability Matter → Data → IRO → Evidence → Disclosure

How EcoActive Manages Value Chain Information

Value chain information is often spread across supplier systems, operational teams, emails, questionnaires, spreadsheets, and sustainability reporting files. EcoActive brings the information required for sustainability disclosure into one governed environment.

Structured Value Chain Mapping

Build and maintain a structured view of relevant upstream and downstream activities, entities, relationships, and reporting boundaries.

IRO Connectivity

Connect value chain activities with material impacts, risks, and opportunities identified through the materiality process.

Data Collection and Traceability

Organize quantitative and qualitative sustainability information across value chain activities and reporting periods while maintaining the supporting evidence and source information behind reported data.

Scope 3 Connectivity

Connect relevant value chain data with EcoActive’s GHG Calculator for Scope 3 emissions reporting across applicable upstream and downstream categories.

Connected ESG Disclosure

Carry relevant value chain information into ESG Disclosure rather than rebuilding the same information during report preparation.

Reporting Area	Value Chain Connection
Double Materiality	Identifies where material impacts, risks, and opportunities arise across the value chain.
GHG Emissions	Provides upstream and downstream information required for relevant Scope 3 emissions.
Transition Plan	Connects value chain activities, dependencies, and emissions with transition-related actions and targets.
ESG Analytics	Enables analysis of value chain data across entities, activities, reporting periods, and ESG metrics.
ESG Targets	Extends relevant actions and targets across upstream and downstream activities.
Disclosure	Connects value chain information, supporting evidence, and metrics with applicable reporting requirements.

Why EcoActive for Value Chain Management?

01 Built Around Disclosure Requirements

EcoActive manages value chain information in the context of sustainability reporting — connecting activities, IROs, data, evidence, and disclosures rather than treating the value chain as a standalone supplier database.

02 Connected Across the Reporting Lifecycle

Value chain information connects naturally with Double Materiality, GHG Emissions, ESG Targets, and ESG Analytics.

03 Traceable From Source to Disclosure

Maintain the relationship between value chain activities, reported data, assumptions, evidence, reviews, and final disclosures.

EcoActive’s Audit and Review capabilities keep assurance and review connected to the reporting process.

Frequently Asked Questions

What is Value Chain Management in ESG reporting?

Value Chain Management in ESG reporting is the process of identifying and managing sustainability-related information across an organization’s upstream and downstream activities and business relationships.

What is a value chain under ESRS?

The value chain includes relevant activities, resources, and relationships connected with the company’s business model. It can include upstream suppliers and service providers as well as downstream distributors, customers, end-users, and other business relationships.

Does ESRS require value chain information?

Yes. ESRS 2 includes requirements relating to the upstream and downstream value chain, including its role in the company’s business model and the identification of material impacts, risks, and opportunities.

What is the difference between supply chain and value chain management?

Supply chain management generally focuses on sourcing, production, logistics, and delivery. Value chain management for sustainability reporting has a broader focus and considers where sustainability impacts, risks, opportunities, emissions, and other reporting information arise across upstream and downstream activities.

How does Value Chain Management connect with double materiality?

Value chain mapping helps organizations identify where sustainability-related impacts, risks, and opportunities arise across their upstream and downstream activities. This information can then feed into the company’s Double Materiality Assessment.

How is Value Chain Management connected to Scope 3 emissions?

Scope 3 emissions arise from upstream and downstream activities outside a company’s direct operational emissions. The GHG Protocol Corporate Value Chain Standard organizes these emissions into 15 categories.

Does EcoActive replace supply chain software?

No. EcoActive is an AI-native Financial and ESG Disclosure Management platform. Value Chain Management within EcoActive is focused on managing sustainability-related value chain information and connecting it with reporting, rather than managing procurement, logistics, or operational supply-chain execution.

How does EcoActive improve value chain reporting traceability?

EcoActive keeps value chain information connected with its source, supporting evidence, methodology, review, and final disclosure so reporting teams can maintain a clearer audit trail.

Ready to Connect Your Value Chain With ESG Reporting?

See how EcoActive brings value chain activities, IROs, data, emissions, evidence, and
disclosures into one governed reporting process.