Value chain encompass the interactions, resources and relationships related to a company’s business model and the external environment in which it operates. As part of the 2024 update, information on key upstream and downstream value chain links was added to the ENCORE knowledge base. The value chain links are provided for two tiers upstream and two tiers downstream from the direct operations.
Data on value chain links is based on the Environmentally-Extended Multi-Regional Input-Output database (EE-MRIO) developed by ETH Zürich (see Cabernard & Pfister, 2021). The EE-MRIO database is based on EXIOBASE (version 3.6). The links within the input-output database reflect modelled trade flows between different sub-sectors. What is shown as an important link in terms of the trade flows may differ from what would be considered to be an important link based on the commodity or product life cycle. The links also reflect global data - regional variances between value chain links are not captured.
While the direct operations economic activities are captured in the ENCORE knowledge base using ISIC Level 3 or 4, upstream and downstream links are shown using ISIC Level 2. To make the database more manageable, the ENCORE knowledge base shows only key value chain links, not all value chain links. Only the top five links are included for each tier (i.e., for one direct economic activity, up to five N-1 links and up to 25 N-2 links are shown). These top five links were selected based on their value added as provided in the EE-MRIO.
More information about the value chains can be found in the Explanatory Note and FAQ, which are part of the supplementary documents available for download with the updated ENCORE knowledge base.
| Value chain stage | Tier | Description |
|---|---|---|
| Upstream | N-2 | Second upstream tier. Supplies to N-1. |
| N-1 | First upstream tier. Supplies to N. | |
| Direct | N | Direct operations economic activity. |
| Downstream | N+1 | First downstream tier. Consumes output from N. |
| N+2 | Second downstream tier. Consumes output from N+1. |
Example: Key value chain links mapped using MRIO data for the economic activity “Manufacture of dairy products”
Upstream
| Direct operations | Upstream tier 1 | Upstream tier 2 |
|---|---|---|
| Manufacture of dairy products | Land transport and transport via pipelines | Land transport and transport via pipelines |
| Manufacture of coke and refined petroleum products | ||
| Travel agency, tour operator, reservation service and related activities | ||
| Warehousing and support activities for transportation | ||
| Manufacture of food products | Land transport and transport via pipelines | |
| Manufacture of food products | ||
| Raising of cattle and buffaloes | ||
| Wholesale trade, except of motor vehicles and motorcycles | ||
| Raising of cattle and buffaloes | Activities auxiliary to financial service and insurance activities | |
| Growing of cereals (except rice), leguminous crops and oil seeds | ||
| Manufacture of food products | ||
| Post-harvest crop activities | ||
| Repair of computers and personal and household goods | ||
| Retail trade, except of motor vehicles and motorcycles | ||
| Seed processing for propagation | ||
| Wholesale trade, except of motor vehicles and motorcycles | ||
| Wholesale trade, except of motor vehicles and motorcycles | Accommodation | |
| Food and beverage service activities | ||
| Land transport and transport via pipelines | ||
| Travel agency, tour operator, reservation service and related activities | ||
| Warehousing and support activities for transportation | ||
| Wholesale trade, except of motor vehicles and motorcycles |
Downstream
| Direct operations | Downstream tier 1 | Downstream tier 2 |
|---|---|---|
| Manufacture of dairy products | Education | Education |
| Public administration and defence; compulsory social security | ||
| Manufacture of basic pharmaceutical products and pharmaceutical preparations | Human health activities | |
| Manufacture of basic pharmaceutical products and pharmaceutical preparations | ||
| Manufacture of chemicals and chemical products | ||
| Manufacture of rubber and plastics products | ||
| Residential care activities | ||
| Social work activities without accommodation | ||
| Veterinary activities | ||
| Manufacture of chemicals and chemical products | Human health activities | |
| Manufacture of basic pharmaceutical products and pharmaceutical preparations | ||
| Manufacture of chemicals and chemical products | ||
| Manufacture of rubber and plastics products | ||
| Residential care activities | ||
| Social work activities without accommodation | ||
| Veterinary activities | ||
| Manufacture of food products | Accommodation | |
| Food and beverage service activities | ||
| Manufacture of food products | ||
| Raising of cattle and buffaloes | Manufacture of food products |