Downstream Value Chain Research Articles

Category-specific benchmarking of Scope 3 emissions for corporate clusters

Although the majority of corporate emissions is assigned to the upstream and downstream value chain (Scope 3) rather than to direct emissions (Scope 1) and emissions from energy purchases (Scope 2), Scope 3 data are often insufficient, and their collection is complex due to many reference variables. Therefore, Scope 3 reporting by more than 4000 companies worldwide in 2022 is examined using data from the CDP (formerly Carbon Disclosure Project). All fifteen categories of this Scope as defined by the Greenhouse Gas Protocol are considered. To enhance the benchmarking results, corporate clusters based on size and industry are built after analyzing which factors significantly influence Scope 3.Based on the results, a benchmarking for the emissions per yearly turnover is carried out and examined on five case studies. As the manufacturing industry comprises various subindustries ranging from plastics to automotive, the cluster consisting big enterprises is further subdivided. Based on two case studies, it is possible to demonstrate that emission hotspots may be situated in diverse categories although companies belong to the same cluster. Companies can use the results for an initial estimation of category-specific Scope 3 emissions, e.g., regarding their sustainability reporting. The novelty of this work is a category-specific benchmarking of Scope 3 emissions considering corporate clusters based on companies worldwide and considering industry and size.

An Analytical Study on Managerial Competencies and Business Performance of Farmer Producer Organizations (FPOs): A Value Chain Perspective from India

Farmer producer organizations (FPOs) act as an effective institutional mechanism in addressing the constraints of small holders in India. But only a very few FPOs are prospering in their life stages, demanding a need for competent managerial team to understand the business dynamics and improve the organization performance. Hence, the present study attempted to understand the relation between business competencies and financial performance of FPOs operating in the state of Andhra Pradesh, India mediated through business approach. A proportionate representative sample of 4 FPOs and 11 FPOs registered under cooperatives act and companies act, respectively, were selected randomly. Primary data from 50 % of managerial team of FPOs ( n = 94) and secondary data from audited financial reports from 2019–2020 to 2021–2022 were obtained. The major findings of the study showed that business competencies and financial performance of market-centric approached FPOs are significantly higher over production-centric FPOs. A strong and significant correlation existed between competencies and performances. Variables namely education, business exposure, leadership role in community-based organizations and digital media exposure showed moderate correlation with various competency spheres. Due to relatively higher level of these factors in the respondents of market-centric approached FPOs over their counterparts, they possessed comparatively higher business competencies and as such identified business opportunities on the upstream value chain (market-centric) and accordingly showed better financial performance over the FPOs that identified opportunities on the downstream value chain (production-centric). Thus, a strong relationship existed between business approach, business competencies and financial performance.

Corporate Sustainability Reporting and Blockchain

The recently enacted Corporate Sustainability Reporting Directive is a cornerstone of the European Union’s policy to achieve a sustainable economy, environment, and society. Under this Directive, companies are required to disclose a substantial amount of information on the impact of climate change and global warming, including sustainability matters relating to the company’s activity and information on the impact of the company activity on the environment and people. Nevertheless, the practical implementation of these sustainability-related disclosure obligations will encounter significant obstacles, most notably the wide scope of reporting. In particular, the reporting company bears the burden of disclosing material information on impacts, risks and opportunities connected to not only its own operations but also the operations of its direct and indirect business relationships in the upstream and downstream value chain. Such disclosure is expected to involve information produced by different, often distant sources, making information gathering efforts very difficult and endangering the quality of the information disclosed. In this reporting process, the company is even expected to engage with its stakeholders across its value chain. This article offers insights into these challenges and sheds light on the role that Blockchain technology may play in improving data quality and management in businesses that operate global, multilayer supply chains. corporate sustainability reporting, materiality, information disclosure, supply chain management, Blockchain

Economic Evolution of The Nigerian Telecommunication Industry: Emne’s and Downstream Value Chain Transmission

Recent developments in the Nigerian telecommunication industry have significantly been attracting multinational investors from emerging markets into the country, especially from African and Asian countries. This has led to massive influx of investors into the country’s Global System for Mobile (GSM)communications market since 2001. This paper investigates the value chain effect of these developments on the telecommunications sector of the Nigerian economy. There is focus on the industry itself, subsidiary industries as well as the downstream value chain creation arising from the influx of emerging markets multinational enterprises (EMNEs) into the sector. Using basic statistical techniques, the study finds that the entrance of the multinational investors into the industry following the market liberalization policy of 1999 has not only created a vibrant telecommunications market but also enhanced the value chain on the Nigerian economy at large. The findings of this study provide further insight into the value chain creation debate as it concerns the telecommunications industry not just in Nigeria but in countries of similar economic stature and structure. Additionally, the findings are important to the regulators and policy makers in developed and developing economies alike, for evidence-based policies.

Will reshoring manufacturing of advanced electric vehicle battery support renewable energy transition and climate targets?

Recent global logistics and geopolitical challenges draw attention to the potential raw material shortages for electric vehicle (EV) batteries. Here, we analyze the long-term energy and sustainability prospects to ensure a secure and resilient midstream and downstream value chain for the U.S. EV battery market amid uncertain market expansion and evolving battery technologies. With current battery technologies, reshoring and ally-shoring the midstream and downstream EV battery manufacturing will reduce the carbon footprint by 15% and energy use by 5 to 7%. While next-generation cobalt-free battery technologies will achieve up to 27% carbon emission reduction, transitioning to 54% less carbon-intensive blade lithium iron phosphate may diminish the mitigation benefits of supply chain restructuring. Our findings underscore the importance of adopting nickel from secondary sources and nickel-rich ores. However, the advantages of restructuring the U.S. EV battery supply chain depend on projected battery technology advancements.

The development of digital commerce in the fashion industry: The typology of emerging designers in London

Digital technologies increasingly transform traditional business models, value chains and associated networks of emerging fashion designers in London. D-commerce becomes an additional dynamic capability contributing to their competitive advantage. An analysis of this phenomenon was conducted exploring data assembled from several online sources. The findings reveal that fashion designers use amalgamations of online and physical channels to develop a downstream value chain domestically and internationally. Although social media plays an increasing role in the marketing of designer products this does not necessarily translates into higher visibility of designers on the Internet, increased accumulation of value or their overall chances of survival and growth. Large retailers who excel at channel diversity remain the important part of the highly institutionalised and hierarchical fashion industry ecosystem. A typology of designers was developed based on the characteristics of their visibility on the Internet, their involvement in d-commerce and other retailing practices.

Analysis of Downstream Dairy Value Chain in Ziway-Hawassa Milk Shed Areas of Ethiopia

The increasing demand for raw milk cannot be met with the current inefficient production and marketing systems; designing a sustainable dairy value chain has the potential to increase the availability and affordability of milk for poor consumers and reduce poverty. Therefore, this study aimed to characterize the downstream dairy value chain and evaluate the relationship among the chain actors and their share of profit margin in Ziway-Hawassa milk shed areas of Ethiopia. The downstream chain has several links and is operated by a number of actors. In this study, the upstream part of the chain includes the input supply and production of raw milk at the farm level, and the rest parts of the chain are considered. Producers, collectors, and consumers channel was reported as the dominant milk route in the Ziway-Hawassa milk shed. The results showed that the downstream chain was controlled and monopolized by a few large-scale collectors and processors. Milk collectors took the highest gross margin in fresh milk, but the value share was higher for producers. In general, milk collectors and processors sourced milk directly from producers. Unlike the gross margin, the value share for collectors on fresh milk was less than the share of producers which implies that chain sustainability is under question. Therefore, fair value addition and share must be maintained across each actor of the chain.

Modeling the impact of green supply chain practices on environmental performance: the mediating role of ecocentricity

PurposeThis study aims to examine the relationship between green supply chain management (Green SCM) practices and environmental performance, and develop an integrated model to explain the mediating role of ecocentricity on the relationship between Green SCM practices and environmental performance in the context of the Ghanaian downstream petroleum industry.Design/methodology/approachTo address the objectives of the study, a survey had been conducted among companies in the Ghanaian downstream value chain. The paper used the structural equation modeling approach and smart partial least squares (Smart-PLS) analytical tool.FindingsThe study revealed that Green SCM practices had a significant and positive relationship with supply chain ecocentricity and environmental performance. The study further revealed that supply chain ecocentricity significantly mediated the relationship between Green SCM practices and environmental performance.Practical implicationsThe study has developed a new integrated model to enhance oil and gas marketing and distribution company's adaptation and implementation of Green SCM practices.Originality/valueThe study had successfully applied the natural resource-based view and the stakeholder theory in the context of Ghana's downstream petroleum industry. Specifically, these theories had been integrated to form a new model to explain the relationship between Green SCM practices, supply chain ecocentricity and environmental performance in the context of Ghana's downstream petroleum industry. The newly developed integrated model has wider predictability as compared to the individual theories.

Analysis on the Development of China’s Modern Silk Industry

As the old idiom “men’s farming and women’s weaving” lays out an original picture of a traditional Chinese family organization, the silk weaving industry in China has experienced a long history and formed a well-rounded, stabilized technical system. Since the modern times, with the introduction and application of new looms, raw materials and advanced techniques, Chinese silk industry has gradually completed modernization. This article, based on historical materials and comparative analysis, aims to explore the co-evolution of science, technology and social structure by analyzing the technological and social changes in the modern silk industry. It has been found that essentially stakeholders in either the upstream or downstream value chain of the industry will all influence how such business is shaped, and at the same time, be affected by the result of product and process innovation. This might result in the business prospect where small family based farmers tend to be reluctant to the technological changes in order to protect their own business interests locally.

Current trends in addressing environmental and social risks in mining and mineral supply chains by regulatory and voluntary approaches

Mining activities have always raised environmental and social concerns due to their impact on natural resources and people. During the last decade, the stakeholder base expected to respond to these sustainability concerns has broadened from directly involved parties to a range of indirect stakeholders along the downstream mineral value chain. These stakeholders variably engage in reporting, supplier risk assessments, exercising supply chain due diligence, third party assurance, and corporate social responsibility measures. This trend reflects a combination of societal, investor, and regulatory pressure as well as industry self-regulation along the supply chain. The present article examines this development from the complementary perspectives of international regulations and voluntary industry and multi-stakeholder initiatives affecting the industrial and the artisanal mining sector as well as the associated mineral supply chains. To this end, we provide an introductory analysis on the global uptake, implementation challenges, and lessons learnt with regard to both regulatory developments and voluntary initiatives. Key challenges identified include a misalignment between local reforms and international efforts, heterogeneous downstream market requirements, and evasive strategies as well as gaps to report on and achieve positive local sustainability impacts, partly brought about by emphasising corporate risk management over local community priorities. Meaningful stakeholder dialogue and increased local ownership are key factors to overcome some of these challenges.

Factors Influencing Value Addition to Cashew Products Processed in the South-East Zone, Nigeria: A Multinomial Logistic Regression Approach

Nigeria is a leading cashew producer, but this has not been reflected in the development of the downstream cashew value chain industry. The launch of the “Agriculture Promotion Policy (2016 – 2020)” document was designed to encourage value addition to export crops such as cashew as ways of creating jobs and wealth to value chain actors. However, it is still unclear why cashew processors are unable to exploit this opportunity to improve value addition to cashew. This makes it imperative that factors influencing value addition to cashew products in the South-East zone, Nigeria be analysed. A cross-sectional survey design involving a structured questionnaire was used to obtain data from 353 randomly selected respondents from the South-East zone, Nigeria. The findings from the multinomial logistic regression showed that income, access to market, product characteristics, and cost of cashew processing technology significantly influence value addition to cashew products in two models, whereas government policy on cashew processing and market facilities were significant in the second model. The relative risk ratios for age, educational level, income, processing experience, access to market, distance to market, government policy on cashew processing and market facilities were > 1, suggesting the likelihood of processor's preferring to add value to cashew kernel, and both cashew products as against cashew nut for any unit increase in these variables. This study provided vital insights about how the relative significance of these factors will aid policy analysts and decision-makers to determine which of the factors to focus on while developing specific policies for the cashew value chain industry.

Factors influencing value addition to cashew products processed in the South-East Zone, Nigeria: A multinomial logistic regression approach

Nigeria is a leading cashew producer, but this has not been reflected in the development of the downstream cashew value chain industry. The launch of the “Agriculture Promotion Policy (2016 – 2020)” document was designed to encourage value addition to export crops such as cashew as ways of creating jobs and wealth to value chain actors. However, it is still unclear why cashew processors are unable to exploit this opportunity to improve value addition to cashew. This makes it imperative that factors influencing value addition to cashew products in the South-East zone, Nigeria be analyzed. A cross-sectional survey design involving a structured questionnaire was used to obtain data from 353 randomly selected respondents from the South-East zone, Nigeria. The study found that income, access to market, product characteristics, and cost of cashew processing technology significantly influence value addition to cashew products in the two models, whereas government policy on cashew processing and market facilities were significant in the second model. The relative risk ratios for age, educational level, income, processing experience, access to market, distance to market, government policy on cashew processing and market facilities were > 1, suggesting the likelihood of processor’s preferring to add value to cashew kernel, and both cashew products as against cashew nut for any unit increase in these variables. This study provided vital insights about how the relative significance of these factors will aid policy analysts and decision-makers to determine which of the factors to focus on while developing specific policies for the cashew value chain industry.

Creating value for whom? Digitization and governance practices of nontraditional export firms in Africa

AbstractThe nontraditional export (NTE) sector promises to be the antidote to Africa's economic woes in the face of dwindling traditional exports. Adopting the Porter's Value Chain Framework and a case study design, we explore how alcoholic beverage companies in the African NTE sector could create value in their upstream, midstream, and downstream value chain activities through effective governance and digitization. In exploring these intricacies of governance and digitization within African global value chains (GVCs), we draw on two major case studies, Diageo South Africa and Kasapreko Ghana Limited. Our study shows that the NTE sector can contribute to both economic and social upgrading activities, contribute to industrialization and create international competitiveness for African firms. Second, GVC governance and digitization, even though still at its infant stages in Africa, has the potential in propelling economic value through the NTE sector.

Sustainability-Oriented Innovations in Food Waste Management Technology

Food is essential to our survival, yet the Food and Agriculture Organization of the United Nations (FAO) estimates that about 820 million people were undernourished in 2018. In this context, food waste generation is a particularly salient issue. Wasting food means missing opportunities to feed the growing world population and consuming scarce resources, such as land, water and energy used in the production, processing, distribution and consumption of food. Firms in HORECA (hospitality, restaurant and catering) represent a considerable share of total food waste and, more importantly, are characterized by an overall low sense of awareness about the sustainability-oriented innovation opportunities and challenges of minimizing food waste. This article draws on an in-depth case study to explore the use of technological advancements in downstream value chain. This case study draws on a tech startup providing services for HORECA companies to address a new way for companies to solve the food waste challenge. Adopting technological innovations to quantify and minimize wastage via collaborations with third-party companies can be a strategic and cost-effective way to supplement a company’s open innovation activities.

Carbon footprint in the downstream dairy value chain in Ziway-Hawassa milk shed, Ethiopia

The carbon footprint for the downstream dairy value chain, milk collection and dairy processing plants was estimated through the contribution of emissions per unit of collected and processed milk, whereas that for the upstream dairy value chain, input supply and production was not considered. A survey was conducted among 28 milk collectors and four employees of processing plants. Two clusters were established: small- and large-scale milk collectors. The means of carbon dioxide equivalent per kilogramme (CO2-eq/kg) milk were compared between clusters by using independent sample t-test.The average utilisation efficiency of milk cooling refrigerators for small- and large-scale collectors was 48.5 and 9.3%, respectively. Milk collectors released carbon footprint from their collection, cooling and distribution practices. The mean kg CO2-eq/kg milk was 0.023 for large-scale collectors and 0.106 for small-scale collectors (p < 0.05). Milk processors contributed on average 0.37 kg CO2-eq/kg milk from fuel (diesel and petrol) and 0.055 from electricity. Almi fresh milk and milk products processing centre emitted the highest carbon footprint (0.212 kg CO2-eq/kg milk), mainly because of fuel use. Generally, in Ziway-Hawassa milk shed small-scale collectors released higher CO2-eq/kg milk than large-scale collectors.

A Firm’s Concentration of Vertical Value Chain Partner Exchanges and Effects on Innovation Returns

A firm’s investment in internal and extramural R&D activities is critical for its ability to innovate. However, ability to generate returns from its innovation investments might not be similar across firms. In this regard, a firm’s upstream and downstream value chain partners can influence its innovation preparedness by enriching it with knowledge about new components, technologies and market changes. But, these interactions may cause vulnerabilities to a firm such as knowledge spillovers and opportunistic behaviours, thereby constraining its ability to innovate and gain returns from innovation. We empirically address this issue in our study, and show how that there are detrimental effects when a firm has concentration of value chain partners and that they are contingent upon certain firm strategies and technological environment of the firm. We highlight that a firm’s cooperation with its value chain partners may weaken the unfavourable effects their high concentration. We postulate a similar effect when the speed of technological change is faster in a firm’s industry. We use secondary survey data for 770 French firms, and our findings provide broad support for our predicted relationships.

Intersection of Diet, Health, and Environment: Land Grant Universities' Role in Creating Platforms for Sustainable Food Systems

Food and agriculture professionals strive to feed the growing population diets that maintain human health and minimize environmental impacts. Recently, global organizations such as the World Health Organization and the Food and Agricultural Organization have set goals related to the sustainable production of nutritious foods. In this vein, the EAT-Lancet Commission on Food, Planet, and Health has set dietary recommendations for human and planetary health. These recommendations, based on a wide body of evidence, suggest that plant-based diets are essential for the persistence of the population and the environment. This article briefly reviews the influence of diets on health and environmental outcomes in the context of the EAT-Lancet recommendations. Then the brief discusses the role of land grant universities in developing nutrition sensitive, environmentally resilient food systems. Then the article discusses local food system initiatives in Minnesota and offers insight into how the University of Minnesota may play a role in developing nutrition sensitive value chains by coordinating and supporting local food efforts. Ultimately, this brief suggests that land grant universities can help local communities equitably collaborate with upstream and downstream value chain actors to develop nutrition sensitive, environmentally resilient value chains.

The regional facet of a global innovation system: Exploring the spatiality of resource formation in the value chain for onshore wind energy

Onshore wind energy can be conceptualized as a “Global Innovation System” in which resources drive technological development and diffusion: Knowledge, markets, investment and legitimacy. This paper investigates the regional embeddedness of resource formation along the industry’s value chain, and explores how these processes are coupled to each other and to the national and global scale.Empirically, the contribution focusses on a well-developed region within the GIS and highlights different spatial patterns of resource formation: Turbine manufacturing is characterized by spatially sticky knowledge and price-driven global valuation. The diffusion of the technology by downstream value chain and service-based firms reveals different processes: Knowledge for turbine management and system integration is similarly footloose and sticky. The regional level is vital for market formation (siting decisions) and technological legitimation (community acceptance). These valuation processes rest on distinct and diverse kinds of knowledge, and are interlinked, customized and facilitated by regional actor networks.

What Strategies And Policies Can Save Nigeria in the Energy Transition?

The world is fast changing and so is the energy mix. A clarion call by scientists worldwide calls for immediate action to prevent the impact of climate change or face the consequences in the coming few years. Scientists and environmental activists are lobbying against the use of fossil-based fuel and mounting pressure on financial institutions and government to stop the financing of fossil fuel projects all over the world. The strategy is to dry-up investment from fossil fuel energy, then more investment will flow towards the greener alternatives in the next two decades to support the development of new technologies and other earth-friendly energy sources. Also, by clamouring for change, the cleaner technologies and alternative (greener) energy will create a substantial fall in the demand of fossil fuel, particularly crude oil. However, this move poses existential threat to third-world countries like Nigeria which is largely dependent on sales royalties and tax revenues from crude oil and natural gas reserves respectively. The future trends warn of a looming dooms day approaching when the remaining oil may not be able to attract foreign money for its development. Nigeria must therefore hasten in the effort to recover its reserves timeously and make the most of what it has before the green era. Since joining Organization of Petroleum Exporting Countries (OPEC) in 1971, Nigeria has established is membership status by steadily growing its reserves to now over 41 billion barrels of crude oil that is yet untapped mainly attributed to the Niger Delta basin. This means that Nigeria’s crude oil export is controlled by OPEC but this restriction does not apply to the export of Nigerian petroleum products. Hence, with investment into refineries and downstream value chain, Nigeria can afford to increase its production to maximize its resources and grow enormous wealth. Most of the other Nigerian petroleum basins in Nigeria are still under-explored and as such not accounted for in the nation’s wealth of resources. It is believed the nation can also benefit from significant amount of oil discoveries that are either invisible to conventional technologies or bypassed by natural recovery mechanisms. These presents an opportunity to uplift the nation’s reserves without risky investment in deep water exploration. Nigeria should aim to ramp up its production rapidly in the next couple of years to harness its available resources while there is still time to do so. To take advantage of Nigeria’s vast oil resources, the government must explore strategic policies that will enhance its exploration and development interests through the expansion of value chain and promote alternative energy. It must also exploit the remaining reserves quickly. Therefore, Nigeria must take advantage of its crude oil resources by exploring various fiscal incentives and take key regulatory steps to ensure that production is maximized to drain the technically recoverable reserves as quickly as possible. The wind fall from this can then be ploughed into the economy to develop value chain and also promote transition to greener energy alternative. To achieve this, a radical policy change is necessary such as incentivizing oil production and encouraging oil companies to change their direction. This paper presents some thought-provoking ideas of how this can be achieved in the near term.

Arcs of carbon awareness in the value chain and their antecedents

AbstractThis study examines the patterns and antecedents of firms' value chain greenhouse gas emissions (VCGGE) awareness. Drawing on a sample of 1,322 firms from multiple countries and industries, we use cluster analysis to first evaluate how well firms' VCGGE awareness patterns match traditional value chain integration patterns, identified by prior literature. We then examine how well internal indicators of greenhouse gas emissions (GGE) management predict advanced VCGGE awareness. Our study indicates that VCGGE patterns partially match traditional value chain integration patterns and that firms' VCGGE awareness is much higher for their upstream than downstream activities. Moreover, our findings show that the internal adoption of GGE management is a significant predictor of advanced awareness of VCGGE. Overall, we find that most firms have limited awareness about the magnitude of their VCGGE, suggesting that many opportunities to reduce these emissions, especially in the downstream value chain, remain unexplored.