Received:
2026-03-18 | Accepted:
2026-07-07 | Published:
2026-09-30
Title
Reflecting the value chain in integrated reporting: a tool for sustainability assessment
Abstract
At the current stage of economic development, business management and stakeholders—primarily providers of financial capital—require comprehensive information about the value created by enterprises. Such value can be effectively represented through integrated reporting, a model grounded in integrated thinking that depicts the entire value chain, from creation to preservation and erosion. The study aims to identify information related to the representation of the entire value chain process—creation, preservation, and erosion of value. It examines how enterprises utiliseutilise various types of capital (financial, manufactured, human, intellectual, natural, social, and reputational) and interact with the environment; how financial and non-financial information, including environmental, social, and governance (ESG) factors, is integrated; and how the interconnection between strategy, governance, operations, and future outlook contributes to the creation of sustainable value. The research methodology is grounded in the International Integrated Reporting Council (IIRC) Framework, the European Union's Corporate Sustainability Reporting Directive (CSRD), the European Sustainability Reporting Standards (ESRS), materials from leading international auditing and consulting firms, and scholarly literature. General scientific methods of inquiry were applied, including analysis, synthesis, generalisation, abstraction, and a systems-based approach. The study analyses the conceptual foundations of integrated reporting, including the value-creation model as defined by the <IR> Framework, its objectives, and core elements. It further examines the essence of the value chain as defined by the ESRS, highlighting the processes of value creation, preservation, and erosion; the role of value chain workers; the concepts of material impacts, risks, and opportunities; and the disclosure requirements related to value chains.
Keywords
integrated reporting, Upstream value chain, Downstream value chain, Double materiality, European Sustainability Reporting Standards (ESRS), sustainability disclosure
JEL classifications
Q56
, Q58
URI
http://jssidoi.org/jesi/article/6674
DOI
Pages
117-131
This is an open access issue and all published articles are licensed under a
Creative Commons Attribution 4.0 International License
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Levan SABAURI is PhD in Economics (Dr) is Professor at the Faculty of Economics and Business, Ivane Javakhishvili Tbilisi State University, Georgia (PhD in Economics). His research focuses on financial accounting, auditing in the private and public sector, and sustainability and financial analysis. /jesi/article/6674
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