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Figure 2: Own adaptation based on Porter‘s Value Chain

Source: Alexander Herzner, 2021

Furthermore, when analyzing the impact of the value chain on the SDGs, the context surrounding
the company needs to be considered, as well. If the company’s operations or other segments of
its value chain are located close to areas that lag behind in terms of sustainable development,

the company can have a high impact there. If a company employs, for instance, a large share of
its workforce in regions with low wages and poor enforcement of labor rights, it possibly has
significant impact on SDG 8 “decent work and economic growth”.

The impact assessment should not be a company-internal analysis but should also involve
external stakeholders to get to know their opinions about the company’s current or potential
impacts on sustainable development. When choosing the stakeholders to engage with, the
company should focus on those impaired by its business activities. The remaining ones can then
be prioritized based on the influence they exert on the company and vice versa. Marginalized and
vulnerable groups, such as women, children, and migrant workers, and stakeholders unable to
articulate their positions, e.g., future generations or the natural environment, must not be

neglected either.
In practice, the mapping of the SDGs against the value chain to identify impact areas can be done
with the help of several tools and methodologies. Life Cycle Assessment (LCA) methodologies

and environmentally extended input-output (EEIO) models are some of the most frequently used
tools.

Selecting indicators for performance and collect data

Once the areas with high impact on the SDGs have been identified, the next step is to determine
indicators that quantify the influence of the company’s business activities on the SDGs. Thus, the
company’s performance in advancing sustainable development can be measured and progress
can be tracked over time. Such indicators can be well-established ones, already defined by the

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