The concept of double materiality brings environmental impacts into the focus of standard-setting in accounting. Different reasons for adopting this concept might lead to widely varying interpretations, yet the fitness of the financial system to facilitate a net-zero economy depends on how it is conceived.
"To understand supply chain management, one must first begin with a discussion of a supply chain; a generic one is shown. The supply chain shown in the figure starts with firms extracting raw materials from the earth -- such as iron, oil, wood, and food items -- and then selling these to raw material suppliers such as lumber companies, steell mills, and raw food distributors. These firms, acting on purchase orders and specifications they have received from componenent manufacturers, turn the raw materials into materials that are usable by these customers (materials such as sheet steel, aluminum, copper, lumber, and inspected foodstuffs.) The component manufacturers, responding to orders and specifications from their customers (the final product manufacturers) make and sell intermediate components (electric wire, fabrics, plumbing items, nuts and bolts, molded plastic components, component parts and assemblies, and processed foods). The final product manufacturers (companies such as Boeing, General Motors, and Coca-Cola) assemble the finished products and sell them to wholesalers or distributors, who then resell these products to retailers as their product orders are received. Retailers in turn sell these products to us, the end-product consumers."
Life Cycle Assessment (LCA) https://www.eea.europa.eu/help/glossary/eea-glossary/life-cycle-assessment
Life-cycle assessment (LCA) is a process of evaluating the effects that a product has on the environment over the entire period of its life thereby increasing resource-use efficiency and decreasing liabilities. It can be used to study the environmental impact of either a product or the function the product is designed to perform. LCA is commonly referred to as a "cradle-to-grave" analysis. LCA's key elements are: (1) identify and quantify the environmental loads involved; e.g. the energy and raw materials consumed, the emissions and wastes generated; (2) evaluate the potential environmental impacts of these loads; and (3) assess the options available for reducing these environmental impacts.
What is Traceability?
What is traceability? Historically traceability is synonymous with provenance and the (geographic) protection of luxury food goods against fakery. Roquefort cheese for instance has had product regulation and claim definition as early as 1411 (or so Wikipedia tells me).You could even think about the medieval catholic problem of assessing the authenticity of relics as a traceability problem. Modern definitions stress the function of a traceability system as the collection of all data associated with a specific product needed to document its movements from source to consumption along a supply chain. If modern supply chain management creates efficiencies by treating the material aspects of products as abstraction, traceability systems deanonymize products to reveal their unique histories.