Understand the key aspects of Royal Decree 214/2025 on carbon footprint -

Download guide
Glossary

V

Last updated: 2026 08 03

Value Chain

Value chain, a concept coined by Michael Porter in 1985, describes all the activities a company carries out to develop a product or service, from its conception through to its arrival with the end consumer and even beyond.

These activities fall into two broad categories:

  • Primary activities: directly related to the physical creation of the product, its sale, distribution and after-sales support.
    • Inbound logistics: receiving, storing and managing raw materials.
    • Operations: transforming raw materials into the final product.
    • Outbound logistics: distributing the finished product to customers.
    • Marketing and sales: activities to promote and sell the product.
    • After-sales service: technical support, repairs and returns management.
  • Support activities: not directly related to production, but essential for primary activities to run efficiently.
    • Firm infrastructure: administration, planning, finance, etc.
    • Human resource management: recruitment, training and staff development.
    • Technology development: research and development of new technologies and processes.
    • Procurement: sourcing raw materials, supplies and other resources.

In sustainability, value chain analysis makes it possible to distinguish upstream stages (towards suppliers) from downstream stages (towards the customer), which is key to managing environmental impacts.

Value chain and the carbon footprint

The relationship between the value chain and the carbon footprint is intrinsic. Every link, from sourcing raw materials to transport, manufacturing, use and end-of-life, generates greenhouse gas (GHG) emissions, expressed in CO2 equivalent.

Emission scopes

Understanding a company's environmental impact requires analysing its carbon footprint across the entire value chain. The Greenhouse Gas Protocol (GHG Protocol), the international standard for emissions accounting, classifies them into three scopes:

  • Scope 1 (direct emissions): from sources owned or controlled by the company, such as burning fossil fuels at its own facilities.
  • Scope 2 (indirect energy emissions): associated with electricity, heat or steam the company purchases from third parties.
  • Scope 3 (other indirect emissions): covers the rest of the value chain's emissions (suppliers, transport and distribution, customer use of the product and end-of-life management). In many companies, this is by far the most significant scope.

Benefits of analysing the carbon footprint across the value chain

Identifying and quantifying emissions at each stage offers multiple benefits:

  • Spotting reduction opportunities: locating the critical points where the largest emissions occur and prioritising the most effective actions.
  • Improving efficiency and cutting costs: reducing emissions usually goes hand in hand with process optimisation.
  • Strengthening brand and reputation: demonstrating a real, measured commitment avoids greenwashing and builds trust.
  • Accessing new business opportunities: demand for sustainable products and services keeps growing.
  • Complying with regulation: disclosure and due diligence requirements on sustainability are increasing, and involve working on the sustainable supply chain and its traceability.

At Manglai we help companies measure the carbon footprint of their entire value chain, including Scope 3, and prepare their sustainability information. Discover how Manglai can help you.

Companies that trust us

CIRSA
VivaGym
Avizor Logo
isEazy
Verdifresh
Altcam
Sertrans Logo
Clear Channel
Hijolusa
Porsche
moyca
Zumez
Ilunion
Global Factor

Related terms

See all terms

Science-Based Targets (SBT)

Science-based targets (SBT) are emission reduction goals aligned with climate science and the Paris Agreement, validated by the SBTi initiative.

Emission Factors

An emission factor is the coefficient that converts an activity figure (kWh, litres, km) into greenhouse gases emitted, expressed in CO2 equivalent. We explain their types and official sources.

Carbon Footprint Verification and Certification

Carbon footprint verification is the independent review that confirms an emissions inventory is correct and reliable. We explain its stages, levels of assurance and applicable standards.

Discover everything you can achieve with Manglai

The environmental management platform that helps companies comply with regulations

Manglai Og Image

Guiding businesses towards net-zero emissions through AI-driven solutions.

Subscribe to our newsletter

Product & Pricing

What is Manglai

Features

SQAS

GLEC

GHG Protocol

ISO-14046

ISO-14064

Miteco certification

CSRD

CSDDD

Digital Product Passport

EINF

Prices

Customers

Partners

© 2026 Manglai. All rights reserved