Digital Traceability: A Framework for More Sustainable and Resilient Value Chains

The report argues that digital traceability is a strategic imperative for companies to transition from linear to circular value chains. It provides a framework for scaling traceability from initial pilots to industry-wide transformation, emphasizing the need for cross-functional operating models, ecosystem collaboration, and integrated data and technology architectures. The document highlights that while many companies are in the early stages of strategy definition, leaders are using traceability to meet regulatory requirements, improve efficiency, and develop new business models.

• Digital traceability allows companies to transition from linear supply chains to circular value chains by enabling the reuse, remanufacturing, and recycling of products and materials, which reduces waste and costs.
• Companies face increasing pressure for transparency from consumers, investors, and regulators. For instance, 67% of consumers want to know the origin of their food, and 69% of customers under 40 would pay more for sustainably sourced electronics.
• Regulatory requirements are driving the need for traceability, such as the European Due Diligence Act requiring human rights due diligence and Canadian carbon tax programs requiring full scope emissions accounting.
• A survey of over 150 senior supply chain leaders indicates that 68% view traceability as "very or extremely important," yet only 15% have progressed to investing in and scaling traceability technology.
• The primary goal for traceability initiatives among executives is regulatory compliance (20%), followed by reliability (18%) and customer engagement (15%).
• Successful traceability requires a shift in internal operating models; responsibility should be a broad business-wide objective rather than being siloed within sustainability or technology departments.
• Collaboration is critical but often ineffective; less than 40% of executives describe their value chain collaborations as highly effective, despite 64% stating collaboration is essential to access traceability information.
• The most significant technology challenges for traceability include ensuring interoperability with existing systems (56%), identifying the right technology type (46%), and finding the right solution provider (44%).

APA

World Economic Forum (2021). Digital Traceability: A Framework for More Sustainable and Resilient Value Chains. https://www3.weforum.org/docs/WEF_Digital_Traceability_2021.pdf

Chicago

World Economic Forum. Digital Traceability: A Framework for More Sustainable and Resilient Value Chains. 2021. https://www3.weforum.org/docs/WEF_Digital_Traceability_2021.pdf.

Wikipedia

{{cite report |author=World Economic Forum |title=Digital Traceability: A Framework for More Sustainable and Resilient Value Chains |date=September 2021 |url=https://www3.weforum.org/docs/WEF_Digital_Traceability_2021.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{worldeconomicforum2021digital, author = {{World Economic Forum}}, title = {{Digital Traceability: A Framework for More Sustainable and Resilient Value Chains}}, institution = {World Economic Forum}, year = {2021}, month = sep, url = {https://www3.weforum.org/docs/WEF_Digital_Traceability_2021.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }