Industry Comparison
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Current language: English (2023)
You are viewing information about the following Industries:
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Oil & Gas – Services
Oil and gas services entities drill under contract, manufacture equipment, or provide support services. Drilling and drilling-support entities drill for oil and natural gas on-shore and off-shore on a contract basis for oil and natural gas exploration and production (E&P) entities. For on-shore exploration and production, entities in the oilfield services segment manufacture equipment used in the extraction, storage and transportation of oil and natural gas. For off-shore, entities in this segment may manufacture jack-up rigs, semisubmersible rigs, drill ships and a range of other exploration equipment. They also provide support services such as seismic surveying, equipment rental, well cementing and well monitoring. These services commonly are provided on a contractual basis, and the customer purchases or leases the materials and equipment from the service provider. Service entities also may provide personnel or subject matter expertise as part of their scope of service. The contractual relationship between oil and gas services entities and their customers plays a significant role in determining the material impacts of their sustainability performance. Besides the rates charged, entities compete based on their operational and safety performance, technology and process offerings, project management performance, and reputation. -
Casinos & Gaming
Publicly held casinos and gaming entities operate gambling facilities or platforms, including brick-and-mortar casinos, riverboat casinos, online gambling websites and racetracks. The industry is characterised by intense regulatory oversight, which is the main barrier to entry for new operators. Industry regulation varies significantly worldwide.
Relevant Issues for both Industries (10 of 26)
Why are some issues greyed out?
The SASB Standards vary by industry based on the different sustainability-related risks and opportunities within an industry. The issues in grey were not identified during the standard-setting process as the most likely to be useful to investors, so they are not included in the Standard. Over time, as the ISSB continues to receive market feedback, some issues may be added or removed from the Standard. Each company determines which sustainability-related risks and opportunities are relevant to its business. The Standard is designed for the typical company in an industry, but individual companies may choose to report on different sustainability-related risks and opportunities based on their unique business model.-
Environment
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GHG Emissions
The category addresses direct (Scope 1) greenhouse gas (GHG) emissions that a company generates through its operations. This includes GHG emissions from stationary (e.g., factories, power plants) and mobile sources (e.g., trucks, delivery vehicles, planes), whether a result of combustion of fuel or non-combusted direct releases during activities such as natural resource extraction, power generation, land use, or biogenic processes. The category further includes management of regulatory risks, environmental compliance, and reputational risks and opportunities, as they related to direct GHG emissions. The seven GHGs covered under the Kyoto Protocol are included within the category—carbon dioxide (CO2), methane (CH4), nitrous oxide (N2O), hydrofluorocarbons (HFCs), perfluorocarbons (PFCs), sulfur hexafluoride (SF6), and nitrogen trifluoride (NF3). - Air Quality
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Energy Management
The category addresses environmental impacts associated with energy consumption. It addresses the company’s management of energy in manufacturing and/or for provision of products and services derived from utility providers (grid energy) not owned or controlled by the company. More specifically, it includes management of energy efficiency and intensity, energy mix, as well as grid reliance. Upstream (e.g., suppliers) and downstream (e.g., product use) energy use is not included in the scope. -
Water & Wastewater Management
The category addresses a company’s water use, water consumption, wastewater generation, and other impacts of operations on water resources, which may be influenced by regional differences in the availability and quality of and competition for water resources. More specifically, it addresses management strategies including, but not limited to, water efficiency, intensity, and recycling. Lastly, the category also addresses management of wastewater treatment and discharge, including groundwater and aquifer pollution. -
Waste & Hazardous Materials Management
The category addresses environmental issues associated with hazardous and non-hazardous waste generated by companies. It addresses a company’s management of solid wastes in manufacturing, agriculture, and other industrial processes. It covers treatment, handling, storage, disposal, and regulatory compliance. The category does not cover emissions to air or wastewater nor does it cover waste from end-of-life of products, which are addressed in separate categories. -
Ecological Impacts
The category addresses management of the company’s impacts on ecosystems and biodiversity through activities including, but not limited to, land use for exploration, natural resource extraction, and cultivation, as well as project development, construction, and siting. The impacts include, but are not limited to, biodiversity loss, habitat destruction, and deforestation at all stages – planning, land acquisition, permitting, development, operations, and site remediation. The category does not cover impacts of climate change on ecosystems and biodiversity.
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Social Capital
- Human Rights & Community Relations
- Customer Privacy
- Data Security
- Access & Affordability
- Product Quality & Safety
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Customer Welfare
The category addresses customer welfare concerns over issues including, but not limited to, health and nutrition of foods and beverages, antibiotic use in animal production, and management of controlled substances. The category addresses the company’s ability to provide consumers with manufactured products and services that are aligned with societal expectations. It does not include issues directly related to quality and safety malfunctions of manufactured products and services, but instead addresses qualities inherent to the design and delivery of products and services where customer welfare may be in question. The scope of the category also captures companies’ ability to prevent counterfeit products. - Selling Practices & Product Labeling
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Human Capital
- Labour Practices
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Employee Health & Safety
The category addresses a company’s ability to create and maintain a safe and healthy workplace environment that is free of injuries, fatalities, and illness (both chronic and acute). It is traditionally accomplished through implementing safety management plans, developing training requirements for employees and contractors, and conducting regular audits of their own practices as well as those of their subcontractors. The category further captures how companies ensure physical and mental health of workforce through technology, training, corporate culture, regulatory compliance, monitoring and testing, and personal protective equipment. - Employee Engagement, Diversity & Inclusion
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Business Model and Innovation
- Product Design & Lifecycle Management
- Business Model Resilience
- Supply Chain Management
- Materials Sourcing & Efficiency
- Physical Impacts of Climate Change
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Leadership and Governance
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Business Ethics
The category addresses the company’s approach to managing risks and opportunities surrounding ethical conduct of business, including fraud, corruption, bribery and facilitation payments, fiduciary responsibilities, and other behaviour that may have an ethical component. This includes sensitivity to business norms and standards as they shift over time, jurisdiction, and culture. It addresses the company’s ability to provide services that satisfy the highest professional and ethical standards of the industry, which means to avoid conflicts of interest, misrepresentation, bias, and negligence through training employees adequately and implementing policies and procedures to ensure employees provide services free from bias and error. - Competitive Behaviour
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Management of the Legal & Regulatory Environment
The category addresses a company’s approach to engaging with regulators in cases where conflicting corporate and public interests may have the potential for long-term adverse direct or indirect environmental and social impacts. The category addresses a company’s level of reliance upon regulatory policy or monetary incentives (such as subsidies and taxes), actions to influence industry policy (such as through lobbying), overall reliance on a favorable regulatory environment for business competitiveness, and ability to comply with relevant regulations. It may relate to the alignment of management and investor views of regulatory engagement and compliance at large. -
Critical Incident Risk Management
The category addresses the company’s use of management systems and scenario planning to identify, understand, and prevent or minimize the occurrence of low-probability, high-impact accidents and emergencies with significant potential environmental and social externalities. It relates to the culture of safety at a company, its relevant safety management systems and technological controls, the potential human, environmental, and social implications of such events occurring, and the long-term effects to an organization, its workers, and society should these events occur. - Systemic Risk Management
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Disclosure Topics
What is the relationship between General Issue Category and Disclosure Topics?
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.-
Access Standard
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GHG Emissions
The category addresses direct (Scope 1) greenhouse gas (GHG) emissions that a company generates through its operations. This includes GHG emissions from stationary (e.g., factories, power plants) and mobile sources (e.g., trucks, delivery vehicles, planes), whether a result of combustion of fuel or non-combusted direct releases during activities such as natural resource extraction, power generation, land use, or biogenic processes. The category further includes management of regulatory risks, environmental compliance, and reputational risks and opportunities, as they related to direct GHG emissions. The seven GHGs covered under the Kyoto Protocol are included within the category—carbon dioxide (CO2), methane (CH4), nitrous oxide (N2O), hydrofluorocarbons (HFCs), perfluorocarbons (PFCs), sulfur hexafluoride (SF6), and nitrogen trifluoride (NF3).-
Emissions Reduction Services & Fuels Management
Although direct greenhouse gas (GHG) emissions and associated regulatory risks are relatively low for Oil & Gas - Services providers relative to other industries, emissions from the operations of their customers—the Exploration & Production (E&P) entities—can be significant. Emissions include GHGs that can contribute to climate change as well as other air pollutants that can have significant localised human health and environmental impacts. Increasing regulation and high costs of fuels associated with these emissions present substantial risk to E&P entities. Entities are seeking ways to lower their emissions, including converting pumps and engines to run on natural gas and electricity instead of diesel fuel. Oil & Gas - Services entities compete for contracts partly based on providing innovative, efficient technologies that can help E&P entities reduce operating costs and improve process efficiencies. Services entities can gain a competitive advantage, grow revenue and secure market share by providing customers with services and equipment to reduce GHG, fugitive and flared emissions and fuel consumption.
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Energy Management
The category addresses environmental impacts associated with energy consumption. It addresses the company’s management of energy in manufacturing and/or for provision of products and services derived from utility providers (grid energy) not owned or controlled by the company. More specifically, it includes management of energy efficiency and intensity, energy mix, as well as grid reliance. Upstream (e.g., suppliers) and downstream (e.g., product use) energy use is not included in the scope.None -
Water & Wastewater Management
The category addresses a company’s water use, water consumption, wastewater generation, and other impacts of operations on water resources, which may be influenced by regional differences in the availability and quality of and competition for water resources. More specifically, it addresses management strategies including, but not limited to, water efficiency, intensity, and recycling. Lastly, the category also addresses management of wastewater treatment and discharge, including groundwater and aquifer pollution.-
Water Management Services
Oil and gas development often requires large quantities of water, exposing producers to the risks of water scarcity, water use regulations and related cost increases, particularly in water-stressed regions. Producers also must manage wastewater disposal risks and costs. As such, service entities that develop superior technologies and processes, such as closed-loop water recycling systems to reduce customers’ water consumption and disposal costs, may gain market share and increase revenue, because drilling and wastewater management can be a significant competitive factor for their customers.
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Waste & Hazardous Materials Management
The category addresses environmental issues associated with hazardous and non-hazardous waste generated by companies. It addresses a company’s management of solid wastes in manufacturing, agriculture, and other industrial processes. It covers treatment, handling, storage, disposal, and regulatory compliance. The category does not cover emissions to air or wastewater nor does it cover waste from end-of-life of products, which are addressed in separate categories.-
Chemicals Management
Oil & Gas – Services entities produce oilfield chemicals as well as drilling and hydraulic fracturing fluids based on demand from Exploration & Production (E&P) entities. Although leaks from a properly drilled and completed well are rare, contamination of local water resources can result from contact with hydraulic fracturing fluids and produced water. Contamination may arise from issues related to poor well integrity. Public concerns about some chemicals used in hydraulic fracturing fluids have, in some regions, resulted in fracturing bans, legislative proposals and other regulations to mandate disclosure of chemicals used. The precise chemical composition of hydraulic fracturing fluids is often proprietary, and entities compete to create the most effective formulas. Because of public and regulatory attention to the potential hazards of drilling fluids, entities that effectively manage well development and asset integrity issues, the production and use of non-hazardous fracking fluids, and the per well reduction of drilling fluid volumes, may increase their market share, grow revenues and reduce the regulatory risk affecting their products.
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Ecological Impacts
The category addresses management of the company’s impacts on ecosystems and biodiversity through activities including, but not limited to, land use for exploration, natural resource extraction, and cultivation, as well as project development, construction, and siting. The impacts include, but are not limited to, biodiversity loss, habitat destruction, and deforestation at all stages – planning, land acquisition, permitting, development, operations, and site remediation. The category does not cover impacts of climate change on ecosystems and biodiversity.-
Ecological Impact Management
Oil and gas exploration and development activities and associated services and support activities can have significant impacts on biodiversity and ecosystems. Entities operating sites in ecologically sensitive areas or that are resource-intensive operations must effectively manage the disposal of drilling and associated wastes, well decommissioning, land use, and potential fuel spills. Producers face regulatory risks and permitting barriers to protect ecosystems from potential issues related to site development, drilling, underground waste injection, well decommissioning and site remediation. Entities that offer cost-effective, efficient production and decommissioning technologies that mitigate biodiversity impacts by reducing land use, drilling wastes and spills can decrease the associated risks for their customers and gain a competitive advantage.
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Customer Welfare
The category addresses customer welfare concerns over issues including, but not limited to, health and nutrition of foods and beverages, antibiotic use in animal production, and management of controlled substances. The category addresses the company’s ability to provide consumers with manufactured products and services that are aligned with societal expectations. It does not include issues directly related to quality and safety malfunctions of manufactured products and services, but instead addresses qualities inherent to the design and delivery of products and services where customer welfare may be in question. The scope of the category also captures companies’ ability to prevent counterfeit products.None -
Employee Health & Safety
The category addresses a company’s ability to create and maintain a safe and healthy workplace environment that is free of injuries, fatalities, and illness (both chronic and acute). It is traditionally accomplished through implementing safety management plans, developing training requirements for employees and contractors, and conducting regular audits of their own practices as well as those of their subcontractors. The category further captures how companies ensure physical and mental health of workforce through technology, training, corporate culture, regulatory compliance, monitoring and testing, and personal protective equipment.-
Workforce Health & Safety
Workers in the Oil & Gas – Services industry may face significant health and safety risks related to the harsh working environments and handling potentially volatile hydrocarbons and hazardous wastes. In addition to acute impacts resulting from accidents, workers may develop chronic health conditions, such as those caused by silica or dust inhalation, as well as mental health problems. A significant proportion of the workforce at oil and gas drilling sites consists of temporary workers and employees of entities in the Oil & Gas – Services industry. Health impacts on, and the safety performance of, such workers can affect entities directly by adversely affecting worker productivity and increasing costs. Entities compete based on their reputation and ability to perform activities consistently and safely. Customers evaluate accidents, spills, injuries and fatalities as important factors in awarding contracts to entities.
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Business Ethics
The category addresses the company’s approach to managing risks and opportunities surrounding ethical conduct of business, including fraud, corruption, bribery and facilitation payments, fiduciary responsibilities, and other behaviour that may have an ethical component. This includes sensitivity to business norms and standards as they shift over time, jurisdiction, and culture. It addresses the company’s ability to provide services that satisfy the highest professional and ethical standards of the industry, which means to avoid conflicts of interest, misrepresentation, bias, and negligence through training employees adequately and implementing policies and procedures to ensure employees provide services free from bias and error.-
Business Ethics & Payments Transparency
With operations around the world, entities in the Oil & Gas – Services industry interact with many government and local officials, either directly or through agents, to secure contracts with state-owned oil entities and multinational corporations. Bribery, corruption and the transparency of payments to governments may be significant issues, depending on the region and jurisdiction. Anti-corruption, anti-bribery, and payments transparency laws and initiatives create regulatory mechanisms to reduce the risk of misconduct. Violations of these could result in significant one-time costs or higher compliance costs, whereas successful compliance with such regulations could avoid adverse outcomes. Entities are under pressure to ensure their governance structures and practices can monitor and manage the risks associated with corruption, wilful or unintentional participation in illegal or unethical payments, or with gifts to government officials or private individuals.
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Management of the Legal & Regulatory Environment
The category addresses a company’s approach to engaging with regulators in cases where conflicting corporate and public interests may have the potential for long-term adverse direct or indirect environmental and social impacts. The category addresses a company’s level of reliance upon regulatory policy or monetary incentives (such as subsidies and taxes), actions to influence industry policy (such as through lobbying), overall reliance on a favorable regulatory environment for business competitiveness, and ability to comply with relevant regulations. It may relate to the alignment of management and investor views of regulatory engagement and compliance at large.-
Management of the Legal & Regulatory Environment
The Oil & Gas – Services industry is subject to numerous sustainability-related regulations and a rapidly changing regulatory environment. Entities in the industry regularly participate in the regulatory and legislative process on a wide variety of environmental and societal issues, and they may do so directly or through representation by an industry association. Entities may participate in these processes to ensure industry views are represented in the development of regulations affecting the industry, as well as to represent shareholder interests. However, such attempts to influence environmental laws and regulations may have an adverse effect on entities’ reputations with stakeholders and ultimately affect the entity’s social licence to operate. Entities that can balance these tensions may be better positioned to respond to medium-to-long-term regulatory developments.
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Critical Incident Risk Management
The category addresses the company’s use of management systems and scenario planning to identify, understand, and prevent or minimize the occurrence of low-probability, high-impact accidents and emergencies with significant potential environmental and social externalities. It relates to the culture of safety at a company, its relevant safety management systems and technological controls, the potential human, environmental, and social implications of such events occurring, and the long-term effects to an organization, its workers, and society should these events occur.-
Critical Incident Risk Management
Entities in the Oil & Gas – Services industry are subject to significant risks associated with low-probability, high-consequence events associated with oil and gas exploration, development and production activities. Such events may result in multiple fatalities, significant property damage or significant adverse effects on the environment. Entities may be affected indirectly through safety incidents or emergencies affecting their Exploration & Production (E&P) industry clients. Significant incidents can have wide-ranging negative social and environmental consequences, for which both E&P and Services entities may be held liable. Entities compete based on their reputation and ability to perform activities on a consistently safe basis. In addition to effective process safety management practices, many entities prioritise developing a strong culture of safety to reduce the probability of accidents and other health and safety incidents. If accidents and other emergencies do occur, entities with a strong safety culture are often able to detect and respond to such incidents more effectively. A culture that engages and empowers employees and contractors to work with management and entities in the E&P industry to safeguard their own health, safety and well-being, and to prevent accidents, is likely to help entities reduce risks to their financial value.
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Access Standard
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GHG Emissions
The category addresses direct (Scope 1) greenhouse gas (GHG) emissions that a company generates through its operations. This includes GHG emissions from stationary (e.g., factories, power plants) and mobile sources (e.g., trucks, delivery vehicles, planes), whether a result of combustion of fuel or non-combusted direct releases during activities such as natural resource extraction, power generation, land use, or biogenic processes. The category further includes management of regulatory risks, environmental compliance, and reputational risks and opportunities, as they related to direct GHG emissions. The seven GHGs covered under the Kyoto Protocol are included within the category—carbon dioxide (CO2), methane (CH4), nitrous oxide (N2O), hydrofluorocarbons (HFCs), perfluorocarbons (PFCs), sulfur hexafluoride (SF6), and nitrogen trifluoride (NF3).None -
Energy Management
The category addresses environmental impacts associated with energy consumption. It addresses the company’s management of energy in manufacturing and/or for provision of products and services derived from utility providers (grid energy) not owned or controlled by the company. More specifically, it includes management of energy efficiency and intensity, energy mix, as well as grid reliance. Upstream (e.g., suppliers) and downstream (e.g., product use) energy use is not included in the scope.-
Energy Management
With many facilities open 24 hours a day, the Casinos & Gaming industry requires a large amount of energy to operate. Casino facilities often have few windows and therefore rely on their buildings’ mechanical systems for heating, ventilation, air-conditioning (HVAC) and lighting. Fossil fuel-based energy production and consumption contribute to significant environmental impacts, including climate change and pollution, and have the potential to impact casino entities’ results of operations. Entities that rely on electricity consumption for their operations increasingly must manage energy efficiency as well as energy availability, including the risks and opportunities associated with energy sourcing from fossil fuels or from renewable and alternative energy sources.
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Water & Wastewater Management
The category addresses a company’s water use, water consumption, wastewater generation, and other impacts of operations on water resources, which may be influenced by regional differences in the availability and quality of and competition for water resources. More specifically, it addresses management strategies including, but not limited to, water efficiency, intensity, and recycling. Lastly, the category also addresses management of wastewater treatment and discharge, including groundwater and aquifer pollution.None -
Waste & Hazardous Materials Management
The category addresses environmental issues associated with hazardous and non-hazardous waste generated by companies. It addresses a company’s management of solid wastes in manufacturing, agriculture, and other industrial processes. It covers treatment, handling, storage, disposal, and regulatory compliance. The category does not cover emissions to air or wastewater nor does it cover waste from end-of-life of products, which are addressed in separate categories.None -
Ecological Impacts
The category addresses management of the company’s impacts on ecosystems and biodiversity through activities including, but not limited to, land use for exploration, natural resource extraction, and cultivation, as well as project development, construction, and siting. The impacts include, but are not limited to, biodiversity loss, habitat destruction, and deforestation at all stages – planning, land acquisition, permitting, development, operations, and site remediation. The category does not cover impacts of climate change on ecosystems and biodiversity.None -
Customer Welfare
The category addresses customer welfare concerns over issues including, but not limited to, health and nutrition of foods and beverages, antibiotic use in animal production, and management of controlled substances. The category addresses the company’s ability to provide consumers with manufactured products and services that are aligned with societal expectations. It does not include issues directly related to quality and safety malfunctions of manufactured products and services, but instead addresses qualities inherent to the design and delivery of products and services where customer welfare may be in question. The scope of the category also captures companies’ ability to prevent counterfeit products.-
Responsible Gaming
Although the main purpose of gambling is entertainment, the industry faces a negative perception often related to pathological gambling. In addition to pathological gambling, which is a progressive addiction characterised by increasing preoccupation with gambling, customers also may experience problem gambling, a less severe form of pathological gambling. Although casinos do not cause problem gambling, they provide opportunities to gamble and may earn disproportionately greater revenue from pathological and problem gamblers. Responsible gambling entities adopt industry best practices to mitigate negative effects of problem gambling that may result from violations of self-exclusion lists, irresponsible advertising, gambling by minors, or instances in which the entity has otherwise enabled gambling problems. Highly-publicised incidents related to pathological and problem gambling may damage entities’ reputations and result in regulatory curtailment of their licences to operate.
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Employee Health & Safety
The category addresses a company’s ability to create and maintain a safe and healthy workplace environment that is free of injuries, fatalities, and illness (both chronic and acute). It is traditionally accomplished through implementing safety management plans, developing training requirements for employees and contractors, and conducting regular audits of their own practices as well as those of their subcontractors. The category further captures how companies ensure physical and mental health of workforce through technology, training, corporate culture, regulatory compliance, monitoring and testing, and personal protective equipment.-
Smoke-free Casinos
Casino facilities are usually climate-controlled environments with internal air circulation, and they have a relatively high concentration of employees and customers. Although anti-smoking campaigns have helped some regions enact smoking bans for public places, many casinos remain exempt from such bans. Smoke exposes employees and customers to increased risks of heart attacks, cancers, and other illnesses. Studies have shown that casino dealers exposed to second-hand smoke have higher-than-average rates of respiratory illness. Entities that derive a significant portion of their revenue from smoking customers may be negatively affected by smoking bans. Alternatively, by creating smoke-free facilities, casino operators may attract more non-smoking patrons.
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Business Ethics
The category addresses the company’s approach to managing risks and opportunities surrounding ethical conduct of business, including fraud, corruption, bribery and facilitation payments, fiduciary responsibilities, and other behaviour that may have an ethical component. This includes sensitivity to business norms and standards as they shift over time, jurisdiction, and culture. It addresses the company’s ability to provide services that satisfy the highest professional and ethical standards of the industry, which means to avoid conflicts of interest, misrepresentation, bias, and negligence through training employees adequately and implementing policies and procedures to ensure employees provide services free from bias and error.-
Internal Controls on Money Laundering
By the nature of its business, the Casinos & Gaming industry may be attractive to criminals seeking to launder money or disguise the origin of funds. Risk factors include customer anonymity, accessibility to multiple facilities and the large amount of cash transactions in each facility. Therefore, strict and robust internal controls are necessary for entities to prevent violations of reporting and money laundering regulations. Casino operators that fail to detect and prevent money laundering activities may be subjected to criminal investigations. Violations of anti-money laundering laws and regulations could result in criminal prosecution or substantial regulatory penalties.
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Management of the Legal & Regulatory Environment
The category addresses a company’s approach to engaging with regulators in cases where conflicting corporate and public interests may have the potential for long-term adverse direct or indirect environmental and social impacts. The category addresses a company’s level of reliance upon regulatory policy or monetary incentives (such as subsidies and taxes), actions to influence industry policy (such as through lobbying), overall reliance on a favorable regulatory environment for business competitiveness, and ability to comply with relevant regulations. It may relate to the alignment of management and investor views of regulatory engagement and compliance at large.None -
Critical Incident Risk Management
The category addresses the company’s use of management systems and scenario planning to identify, understand, and prevent or minimize the occurrence of low-probability, high-impact accidents and emergencies with significant potential environmental and social externalities. It relates to the culture of safety at a company, its relevant safety management systems and technological controls, the potential human, environmental, and social implications of such events occurring, and the long-term effects to an organization, its workers, and society should these events occur.None
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General Issue Category
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Oil & Gas – Services
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Casinos & Gaming
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GHG Emissions
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Emissions Reduction Services & Fuels Management
Although direct greenhouse gas (GHG) emissions and associated regulatory risks are relatively low for Oil & Gas - Services providers relative to other industries, emissions from the operations of their customers—the Exploration & Production (E&P) entities—can be significant. Emissions include GHGs that can contribute to climate change as well as other air pollutants that can have significant localised human health and environmental impacts. Increasing regulation and high costs of fuels associated with these emissions present substantial risk to E&P entities. Entities are seeking ways to lower their emissions, including converting pumps and engines to run on natural gas and electricity instead of diesel fuel. Oil & Gas - Services entities compete for contracts partly based on providing innovative, efficient technologies that can help E&P entities reduce operating costs and improve process efficiencies. Services entities can gain a competitive advantage, grow revenue and secure market share by providing customers with services and equipment to reduce GHG, fugitive and flared emissions and fuel consumption.
Energy Management
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Energy Management
With many facilities open 24 hours a day, the Casinos & Gaming industry requires a large amount of energy to operate. Casino facilities often have few windows and therefore rely on their buildings’ mechanical systems for heating, ventilation, air-conditioning (HVAC) and lighting. Fossil fuel-based energy production and consumption contribute to significant environmental impacts, including climate change and pollution, and have the potential to impact casino entities’ results of operations. Entities that rely on electricity consumption for their operations increasingly must manage energy efficiency as well as energy availability, including the risks and opportunities associated with energy sourcing from fossil fuels or from renewable and alternative energy sources.
Water & Wastewater Management
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Water Management Services
Oil and gas development often requires large quantities of water, exposing producers to the risks of water scarcity, water use regulations and related cost increases, particularly in water-stressed regions. Producers also must manage wastewater disposal risks and costs. As such, service entities that develop superior technologies and processes, such as closed-loop water recycling systems to reduce customers’ water consumption and disposal costs, may gain market share and increase revenue, because drilling and wastewater management can be a significant competitive factor for their customers.
Waste & Hazardous Materials Management
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Chemicals Management
Oil & Gas – Services entities produce oilfield chemicals as well as drilling and hydraulic fracturing fluids based on demand from Exploration & Production (E&P) entities. Although leaks from a properly drilled and completed well are rare, contamination of local water resources can result from contact with hydraulic fracturing fluids and produced water. Contamination may arise from issues related to poor well integrity. Public concerns about some chemicals used in hydraulic fracturing fluids have, in some regions, resulted in fracturing bans, legislative proposals and other regulations to mandate disclosure of chemicals used. The precise chemical composition of hydraulic fracturing fluids is often proprietary, and entities compete to create the most effective formulas. Because of public and regulatory attention to the potential hazards of drilling fluids, entities that effectively manage well development and asset integrity issues, the production and use of non-hazardous fracking fluids, and the per well reduction of drilling fluid volumes, may increase their market share, grow revenues and reduce the regulatory risk affecting their products.
Ecological Impacts
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Ecological Impact Management
Oil and gas exploration and development activities and associated services and support activities can have significant impacts on biodiversity and ecosystems. Entities operating sites in ecologically sensitive areas or that are resource-intensive operations must effectively manage the disposal of drilling and associated wastes, well decommissioning, land use, and potential fuel spills. Producers face regulatory risks and permitting barriers to protect ecosystems from potential issues related to site development, drilling, underground waste injection, well decommissioning and site remediation. Entities that offer cost-effective, efficient production and decommissioning technologies that mitigate biodiversity impacts by reducing land use, drilling wastes and spills can decrease the associated risks for their customers and gain a competitive advantage.
Customer Welfare
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Responsible Gaming
Although the main purpose of gambling is entertainment, the industry faces a negative perception often related to pathological gambling. In addition to pathological gambling, which is a progressive addiction characterised by increasing preoccupation with gambling, customers also may experience problem gambling, a less severe form of pathological gambling. Although casinos do not cause problem gambling, they provide opportunities to gamble and may earn disproportionately greater revenue from pathological and problem gamblers. Responsible gambling entities adopt industry best practices to mitigate negative effects of problem gambling that may result from violations of self-exclusion lists, irresponsible advertising, gambling by minors, or instances in which the entity has otherwise enabled gambling problems. Highly-publicised incidents related to pathological and problem gambling may damage entities’ reputations and result in regulatory curtailment of their licences to operate.
Employee Health & Safety
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Workforce Health & Safety
Workers in the Oil & Gas – Services industry may face significant health and safety risks related to the harsh working environments and handling potentially volatile hydrocarbons and hazardous wastes. In addition to acute impacts resulting from accidents, workers may develop chronic health conditions, such as those caused by silica or dust inhalation, as well as mental health problems. A significant proportion of the workforce at oil and gas drilling sites consists of temporary workers and employees of entities in the Oil & Gas – Services industry. Health impacts on, and the safety performance of, such workers can affect entities directly by adversely affecting worker productivity and increasing costs. Entities compete based on their reputation and ability to perform activities consistently and safely. Customers evaluate accidents, spills, injuries and fatalities as important factors in awarding contracts to entities.
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Smoke-free Casinos
Casino facilities are usually climate-controlled environments with internal air circulation, and they have a relatively high concentration of employees and customers. Although anti-smoking campaigns have helped some regions enact smoking bans for public places, many casinos remain exempt from such bans. Smoke exposes employees and customers to increased risks of heart attacks, cancers, and other illnesses. Studies have shown that casino dealers exposed to second-hand smoke have higher-than-average rates of respiratory illness. Entities that derive a significant portion of their revenue from smoking customers may be negatively affected by smoking bans. Alternatively, by creating smoke-free facilities, casino operators may attract more non-smoking patrons.
Business Ethics
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Business Ethics & Payments Transparency
With operations around the world, entities in the Oil & Gas – Services industry interact with many government and local officials, either directly or through agents, to secure contracts with state-owned oil entities and multinational corporations. Bribery, corruption and the transparency of payments to governments may be significant issues, depending on the region and jurisdiction. Anti-corruption, anti-bribery, and payments transparency laws and initiatives create regulatory mechanisms to reduce the risk of misconduct. Violations of these could result in significant one-time costs or higher compliance costs, whereas successful compliance with such regulations could avoid adverse outcomes. Entities are under pressure to ensure their governance structures and practices can monitor and manage the risks associated with corruption, wilful or unintentional participation in illegal or unethical payments, or with gifts to government officials or private individuals.
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Internal Controls on Money Laundering
By the nature of its business, the Casinos & Gaming industry may be attractive to criminals seeking to launder money or disguise the origin of funds. Risk factors include customer anonymity, accessibility to multiple facilities and the large amount of cash transactions in each facility. Therefore, strict and robust internal controls are necessary for entities to prevent violations of reporting and money laundering regulations. Casino operators that fail to detect and prevent money laundering activities may be subjected to criminal investigations. Violations of anti-money laundering laws and regulations could result in criminal prosecution or substantial regulatory penalties.
Management of the Legal & Regulatory Environment
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Management of the Legal & Regulatory Environment
The Oil & Gas – Services industry is subject to numerous sustainability-related regulations and a rapidly changing regulatory environment. Entities in the industry regularly participate in the regulatory and legislative process on a wide variety of environmental and societal issues, and they may do so directly or through representation by an industry association. Entities may participate in these processes to ensure industry views are represented in the development of regulations affecting the industry, as well as to represent shareholder interests. However, such attempts to influence environmental laws and regulations may have an adverse effect on entities’ reputations with stakeholders and ultimately affect the entity’s social licence to operate. Entities that can balance these tensions may be better positioned to respond to medium-to-long-term regulatory developments.
Critical Incident Risk Management
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Critical Incident Risk Management
Entities in the Oil & Gas – Services industry are subject to significant risks associated with low-probability, high-consequence events associated with oil and gas exploration, development and production activities. Such events may result in multiple fatalities, significant property damage or significant adverse effects on the environment. Entities may be affected indirectly through safety incidents or emergencies affecting their Exploration & Production (E&P) industry clients. Significant incidents can have wide-ranging negative social and environmental consequences, for which both E&P and Services entities may be held liable. Entities compete based on their reputation and ability to perform activities on a consistently safe basis. In addition to effective process safety management practices, many entities prioritise developing a strong culture of safety to reduce the probability of accidents and other health and safety incidents. If accidents and other emergencies do occur, entities with a strong safety culture are often able to detect and respond to such incidents more effectively. A culture that engages and empowers employees and contractors to work with management and entities in the E&P industry to safeguard their own health, safety and well-being, and to prevent accidents, is likely to help entities reduce risks to their financial value.