In today’s global economy, companies are no longer judged only by the quality of their products, but by the integrity, transparency, and sustainability of their entire value chain. From raw materials to end users, businesses are now expected to understand what happens at every step - even when sub-suppliers remain unknown.
Most companies maintain direct relationships only with their 1st-tier suppliers, which means visibility beyond that is limited. But even without knowing every actor in the chain, companies must still understand what materials or items are coming through and how they flow across multiple tiers.
With rising environmental, social, and governance (ESG) expectations, value chain visibility has become essential not only for operational improvement but also for compliance, credibility, and long-term competitiveness.
This growing importance is reinforced by new and emerging EU regulations that now legally require companies to have this level of insight.
Even when only direct suppliers are known, understanding what is supplied, from where, and under what conditions is now a business necessity. Value chain control helps organisations:
Uncover risks such as unethical labor practices or environmental issues deep in the supply chain. With Orixe, you can cascade audits to sub-suppliers and track their average ESG scores through your direct suppliers.
Buyers, investors, and regulators increasingly demand credible documentation of a company’s sustainability performance. A mapped value chain creates the transparency needed to build trust.
Knowing your direct suppliers - and the materials they source - improves your ability to anticipate shortages, quality issues, geopolitical risks, or regulatory changes.
With basic visibility, companies can make informed decisions, reduce negative impacts, and invest in improvements that create long-term value.
Mapping your value chain encourages closer collaboration with direct suppliers, helping both sides improve on sustainability expectations.
The European Union has introduced several laws and reporting standards that require businesses - especially those exporting to the EU - to understand, manage, and report on their value chains.
Here are the key regulations:
The CSDDD legally requires companies to conduct human rights and environmental due diligence across their value chain.
This includes risks linked to:
Companies must identify, prevent, mitigate, and report risks that arise anywhere in their value chain.
The CSRD requires companies to report on both:
This requires gathering insights from direct suppliers and understanding the broader chain of impacts - even if some participants are unknown.
The ESRS requires disclosures related to:
Companies may not know all sub-suppliers, but they must still assess risks related to the products, materials, and services used in their value chain.
For emissions reporting, companies need to understand:
Mapping your value chain gives you the structure needed to meet EU requirements while working within the info you already have. It helps companies:
Even if sub-supplier details are not available, companies can still map what items are supplied, where they come from, and how they move through the value chain which is already a major step toward compliance.
Orixe will launch a dedicated Value Chain Form to make mapping your entire value chain faster, easier, and end-to-end. This new feature will allow companies to seamlessly document suppliers, customers, and all key inputs and outputs, as well as track risks, opportunities, impacts, and any other relevant information - all in one place.
This helps companies:
With rising expectations from regulators, buyers, and consumers, value chain control is no longer optional. Even with limited visibility beyond direct suppliers, mapping your value chain demonstrates responsibility and readiness. Using Orixe, you can gain a clear view of your sustainability risks, identify opportunities, and meet compliance obligations - keeping your business competitive and trusted.