Non-Alcoholic Beverages

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Current language: English
The Non-Alcoholic Beverages industry produces a broad range of beverage products, including various carbonated soft drinks, syrup concentrates, juices, energy and sport drinks, teas, coffee and water products. The industry is dominated by large, international entities. Entities conduct syrup manufacturing, marketing, bottling operations and distribution, with larger entities typically being more vertically integrated into operations that bottle, sell and distribute the finished products.

Relevant Issues (8 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.

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.
General Issue Category
(Industry agnostic)

Disclosure Topics (Industry specific) for: Non-Alcoholic Beverages

GHG Emissions
  • Fleet Fuel Management

    Non-alcoholic beverages entities generate direct Scope 1 greenhouse gas (GHG) emissions from large vehicle fleets used for distribution and from manufacturing facilities. Specifically, refrigeration used in manufacturing facilities and in transport vehicles contributes a significant proportion of overall industry emissions. Efficiencies gained in fuel use can reduce costs, mitigate exposure to fossil fuel price volatility and limit emissions from production, storage and transportation of products. Long-term operational savings and regulatory risk mitigation may outweigh short-term capital expenditures in fuel efficient fleets and more energy-efficient technologies.
Energy Management
  • Energy Management

    Entities in the Non-Alcoholic Beverages industry use significant energy to operate manufacturing facilities, distribution centres and warehouses. Entities in the industry generally buy electricity from the grid. Energy generation contributes to environmental impacts, including climate change and pollution, which have the potential to indirectly, yet materially, affect the operations of non-alcoholic beverages entities. Entities can reduce energy consumption and associated greenhouse gas (GHG) emissions from their operations by implementing more efficient technologies and processes. Decisions regarding alternative fuels use, renewable energy and on-site generation of electricity, versus purchasing from the grid, can be important in influencing both the costs and reliability of the energy supply.
Water & Wastewater Management
  • Water Management

    Water management relates to an entity’s direct water use, operations in water-stressed regions, and wastewater management. Entities in the Non-Alcoholic Beverages industry use a large amount of water in their operations, because water is an essential input to finished products. Given non-alcoholic beverage entities’ heavy reliance on large volumes of clean water, and increasing global water scarcity, entities may be exposed to supply disruptions that could significantly affect operations and add to costs. Entities operating in water-stressed regions that fail to address local water concerns may face further risk of losing their social licence to operate. Additionally, proper wastewater treatment is an important element of managing water issues in operations, because bottling plants release large quantities of effluents. Improving water management through increased efficiency, recycling and proper disposal, particularly in regions with baseline water stress, may result in reduced operating costs, decreased risks and higher intangible asset value.
Customer Welfare
  • Health & Nutrition

    Nutritional and health concerns such as obesity, ingredient safety, nutritional content and adverse health impacts resulting from the consumption of non-alcoholic beverages are important factors in how entities compete with one another. Studies show that consuming high-calorie sugar-sweetened beverages can have adverse health consequences including higher levels of cholesterol, increased risk of heart disease and obesity. These findings may alter consumer perceptions of the industry’s products, leading to long-term shifts in purchasing decisions. Furthermore, efforts to reduce obesity, such as regulations or taxes on sugar-sweetened beverages, can influence industry profitability and demand for products. The potential for adverse health effects from other commonly used ingredients—such as artificial sweeteners—may pose additional health concerns, and entities may face related litigation or regulation. Consumer demand for improved nutritional value in emerging market segments creates new opportunities. Entities that adapt to changing consumer preferences and an evolving regulatory environment by offering healthier alternatives may capture additional market share and reduce exposure to regulatory and legal risks.
Selling Practices & Product Labeling
  • Product Labelling & Marketing

    Communication with consumers through product labelling and marketing is an important facet of the Non-Alcoholic Beverages industry. The accuracy and depth of information presented on product labels is important to consumers and regulators. Labelling regulations require specific and detailed product information to ensure food safety and inform consumers of the nutritional content of products. To inform purchasing decisions, consumers may seek additional information about product ingredients, such as the presence of genetically modified organism (GMO) content or other ingredients considered healthy or nutritious. The marketing practices of entities are another area of public concern, especially those targeting children or presenting potentially false or misleading nutritional information. Product labelling and marketing issues can affect competition among entities, since entities may be subject to litigation or criticism resulting from making misleading statements or failing to adapt to consumer demand for increased labelling transparency. These factors can have consequences for entities’ brand value and revenue growth. Regulations on accurate and truthful product labelling and marketing present an additional risk of penalties or litigation for entities making exaggerated or untrustworthy claims.
Product Design & Lifecycle Management
  • Packaging Lifecycle Management

    Packaging materials represent a significant cost to entities in the Non-Alcoholic Beverages industry. Although many non-alcoholic beverage entities do not manufacture their own bottles and packaging, they face reputational risks associated with the negative externalities that their products’ containers are associated with over their lifecycle. Entities are also directly affected by legislation regarding end-of-life management of beverage containers. Entities can work with packaging manufacturers on packaging design to reduce costs, improve brand reputation and reduce the environmental impact of packaging. Efforts to reduce the amount of material used in packaging can reduce transportation costs, exposure to supply and price volatility and the amount of virgin material extracted for manufacturing. In the end-of-life phase, take-back and recycling programmes and partnerships may meet regulations, help achieve cost savings and reduce environmental impacts. Entities that effectively manage this issue can improve profitability and reduce the cost of capital.
Supply Chain Management
  • Environmental & Social Impacts of Ingredient Supply Chain

    Entities in the Non-Alcoholic Beverages industry manage global supply chains to source a wide range of ingredient inputs. How entities screen, monitor and engage with suppliers on environmental and social topics affects the ability of entities to secure supplies and manage price fluctuations. Supply chain interruption can reduce revenue and negatively affect market share if entities are unable to find alternatives for important suppliers or must source ingredients at higher cost. Supply chain management issues related to labour practices, environmental responsibility, ethics or corruption also may result in regulatory fines or increased long-term operational costs for entities. The consumer-facing nature of the industry increases the reputational risks associated with supplier actions. Managing an entity’s exposure to environmental and social risks may result in improved supply chain resiliency and enhanced reputation, which provide value to shareholders. Entities can engage with important suppliers to manage environmental and social risks to improve supply chain resiliency, mitigate reputational risks, and potentially increase consumer demand or capture new market opportunities.
Materials Sourcing & Efficiency
  • Ingredient Sourcing

    Entities in the Non-Alcoholic Beverages industry source a wide range of ingredients from suppliers worldwide. The industry’s ability to source ingredients fluctuates with supply availability, which may be affected by climate change, water scarcity, land management and other resource scarcity considerations. This exposure may result in price volatility which may affect entity profitability. Ultimately, climate change, water scarcity and land-use restrictions present risks to an entity’s long-term ability to source essential materials and ingredients. Entities that source ingredients which are more productive and less resource intensive, or work closely with suppliers to increase their adaptability to climate change and other resource scarcity risks, may reduce price volatility or supply disruptions.

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