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Figure 3. Sustainable Value Chain Model
from Value chain approaches to determining Best Available Techniques (BAT) for industrial installations
by OECD
2. EXPANDING VIEW OF BAT DETERMINATION THROUGH A VALUE CHAIN PERSPECTIVE 17
Value chains
Value chains describe the full range of value-adding activities required to bring a product or service through the different phases of its production, including procurement of raw materials and other inputs, assembly, physical transformation, acquisition of required services such as transport or cooling, and ultimately response to consumer demand (Kaplinsky and Morris, 2002[5]). As such, value chains include all vertically linked, interdependent processes that generate value (or something useful) for the consumer, as well as horizontal linkages to similar processes that provide goods and services serving the same customer. The model depicted in Figure 3 (below) illustrates a sustainable value chain as the "full life-cycle of a product or process, including material sourcing, production, consumption and disposal/recycling processes.” Value chains focus on value creation – typically via innovation in products or processes, as well as marketing – and also on the allocation of the incremental value (Webber and Labaste, 2010[6]). It is called a value chain because value is being added to the product or service as it is being transformed (Montalbano, Nenci and Salvatici, 2015[10]). As shown in Figure 3 and , at each transfer point in the chain there is an opportunity to add value, with examples for textile sector described in Table 1. Manufacturing is only one of many value-added links, and each link represents a range of activities that may feed into many other value chains. Manufacturers, for example, create value by acquiring processed materials and using them to produce something useful. Where the unsustainable model is often a straight line ending in disposal, the sustainable value chain focuses on closing and optimizing material loops.
Figure 3. Sustainable Value Chain Model
Source: Adapted from (WBCSD, 2011[7])
BEST AVAILABLE TECHNIQUES (BAT) FOR PREVENTING AND CONTROLLING INDUSTRIAL POLLUTION © OECD 2022
