Relevant Issues (2 of 26)
The SASB Standards vary by industry based on the different sustainability risks and opportunities within an industry. The issues in grey were not identified during the standard-setting process as the most likely to impact enterprise value, so they are not included in the Standard. Over time, as the SASB Standards Board continues to receive market feedback, some issues may be added or removed from the Standard. Each company makes their own determination about whether or not a sustainability issue may impact its ability to create enterprise value. The Standard is designed for the typical company in an industry, but individual companies may choose to report on different sustainability issues based on their unique business model. Why are some issues greyed out?
- GHG Emissions
- Air Quality
- Energy Management
- Water & Wastewater Management
- Waste & Hazardous Materials Management
- Ecological Impacts
- Human Rights & Community Relations
- Customer Privacy
- Data Security
- Access & Affordability
- Product Quality & Safety The category addresses issues involving unintended characteristics of products sold or services provided that may create health or safety risks to end-users. It addresses a company’s ability to offer manufactured products and/or services that meet customer expectations with respect to their health and safety characteristics. It includes, but is not limited to, issues involving liability, management of recalls and market withdrawals, product testing, and chemicals/content/ingredient management in products.
- Customer Welfare
- Selling Practices & Product Labeling
- Labor Practices
- Employee Health & Safety
- Employee Engagement, Diversity & Inclusion
Business Model & Innovation
- Product Design & Lifecycle Management The category addresses incorporation of environmental, social, and governance (ESG) considerations in characteristics of products and services provided or sold by the company. It includes, but is not limited to, managing the lifecycle impacts of products and services, such as those related to packaging, distribution, use-phase resource intensity, and other environmental and social externalities that may occur during their use-phase or at the end of life. The category captures a company’s ability to address customer and societal demand for more sustainable products and services as well as to meet evolving environmental and social regulation. It does not address direct environmental or social impacts of the company’s operations nor does it address health and safety risks to consumers from product use, which are covered in other categories.
- Business Model Resilience
- Supply Chain Management
- Materials Sourcing & Efficiency
- Physical Impacts of Climate Change
Leadership & Governance
- Business Ethics
- Competitive Behavior
- Management of the Legal & Regulatory Environment
- Critical Incident Risk Management
- Systemic Risk Management
The General Issue Category is an industry-agnostic version of the Disclosure Topics that appear in each SASB Standard. Disclosure topics represent the industry-specific impacts of General Issue Categories. The industry-specific Disclosure Topics ensure each SASB Standard is tailored to the industry, while the General Issue Categories enable comparability across industries. For example, Health & Nutrition is a disclosure topic in the Non-Alcoholic Beverages industry, representing an industry-specific measure of the general issue of Customer Welfare. The issue of Customer Welfare, however, manifests as the Counterfeit Drugs disclosure topic in the Biotechnology & Pharmaceuticals industry. What is the relationship between General Issue Category and Disclosure Topics?
Disclosure Topics (Industry specific) for:
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Product Quality & Safety
Product safety is of utmost importance to appliance and tool manufacturers. When an appliance malfunctions, it can result in fires or other hazards that damage property and cause injury or even death. The potential for product malfunction and its sometimes-serious consequences exposes firms to risks related to litigation and negative consumer sentiment, which can affect brand value, revenue growth, and/or market share. Failure to report known product safety hazards to relevant authorities can result in civil penalties. Companies that dedicate appropriate resources to quality control and testing can minimize the possibility of a product malfunction or recall, and can capture additional market share and limit their exposure to regulatory and litigation risks.
Product Design & Lifecycle Management
Product Lifecycle Environmental Impacts
Companies in the Appliance Manufacturing industry are constantly seeking to differentiate their products from those of their competitors. One key differentiating factor is the environmental impact of products over their lifecycle, which is often associated with the cost of using appliances. This issue involves a company’s ability to design products with the entire lifecycle in mind, from creation and use to disposal. In particular, this covers energy and water efficiency in appliances, which account for a significant proportion of a home’s energy and water use, as well as designing for and facilitating safe end-of-life disposal and recycling. Companies that prioritize designing and manufacturing products with improved environmental impacts are more likely to grow consumer demand and market share. Furthermore, companies that are able to minimize the environmental impacts of products are more likely to be better positioned to increased regulation related to areas such as extended producer responsibility.
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