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Non-Alcoholic Beverages
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.
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Professional & Commercial Services
The industry includes entities that rely on the unique skills and knowledge of their employees to serve a range of clients. Services are often provided on an assignment basis, where an individual or team is responsible for the delivery of services to clients. Offerings include, but are not limited to, management and administration consulting services, such as staffing and executive search services; legal, accounting, and tax preparation services; and financial and non-financial information services. Non-financial information service providers may specialise in an array of topics such as energy, healthcare, real estate, technology, and science. Financial information service entities include credit and rating agencies as well as data and portfolio analytics providers. Customers of professional and commercial service providers include private and public for-profit institutions and non-profit organisations.
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Relevant Issues for both Industries (11 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
- 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
- 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
- Ecological Impacts
Social Capital
- Human Rights & Community Relations
- Customer Privacy
- Data Security
  The category addresses management of risks related to collection, retention, and use of sensitive, confidential, and/or proprietary customer or user data. It includes social issues that may arise from incidents such as data breaches in which personally identifiable information (PII) and other user or customer data may be exposed. It addresses a company’s strategy, policies, and practices related to IT infrastructure, staff training, record keeping, cooperation with law enforcement, and other mechanisms used to ensure security of customer or user data.
- Access & Affordability
- Product Quality & Safety
- 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
  The category addresses social issues that may arise from a failure to manage the transparency, accuracy, and comprehensibility of marketing statements, advertising, and labeling of products and services. It includes, but is not limited to, advertising standards and regulations, ethical and responsible marketing practices, misleading or deceptive labeling, as well as discriminatory or predatory selling and lending practices. This may include deceptive or aggressive selling practices in which incentive structures for employees could encourage the sale of products or services that are not in the best interest of customers or clients.
Human Capital
- Labour Practices
- Employee Health & Safety
- Employee Engagement, Diversity & Inclusion
  The category addresses a company’s ability to ensure that its culture and hiring and promotion practices embrace the building of a diverse and inclusive workforce that reflects the makeup of local talent pools and its customer base. It addresses the issues of discriminatory practices on the bases of race, gender, ethnicity, religion, sexual orientation, and other factors.
Business Model and 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
  The category addresses management of environmental, social, and governance (ESG) risks within a company’s supply chain. It addresses issues associated with environmental and social externalities created by suppliers through their operational activities. Such issues include, but are not limited to, environmental responsibility, human rights, labour practices, and ethics and corruption. Management may involve screening, selection, monitoring, and engagement with suppliers on their environmental and social impacts. The category does not address the impacts of external factors – such as climate change and other environmental and social factors – on suppliers’ operations and/or on the availability and pricing of key resources, which is covered in a separate category.
- Materials Sourcing & Efficiency
  The category addresses issues related to the resilience of materials supply chains to impacts of climate change and other external environmental and social factors. It captures the impacts of such external factors on operational activity of suppliers, which can further affect availability and pricing of key resources. It addresses a company’s ability to manage these risks through product design, manufacturing, and end-of-life management, such as by using of recycled and renewable materials, reducing the use of key materials (dematerialization), maximizing resource efficiency in manufacturing, and making R&D investments in substitute materials. Additionally, companies can manage these issues by screening, selection, monitoring, and engagement with suppliers to ensure their resilience to external risks. It does not address issues associated with environmental and social externalities created by operational activity of individual suppliers, which is covered in a separate category.
- Physical Impacts of Climate Change
Leadership and Governance
- 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
- Management of the Legal & Regulatory Environment
- Critical Incident Risk Management
- Systemic Risk Management

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.

Non-Alcoholic Beverages Remove
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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).
  - 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
  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
    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
  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
    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.
- Data Security
  The category addresses management of risks related to collection, retention, and use of sensitive, confidential, and/or proprietary customer or user data. It includes social issues that may arise from incidents such as data breaches in which personally identifiable information (PII) and other user or customer data may be exposed. It addresses a company’s strategy, policies, and practices related to IT infrastructure, staff training, record keeping, cooperation with law enforcement, and other mechanisms used to ensure security of customer or user data.
  
  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.
  - 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
  The category addresses social issues that may arise from a failure to manage the transparency, accuracy, and comprehensibility of marketing statements, advertising, and labeling of products and services. It includes, but is not limited to, advertising standards and regulations, ethical and responsible marketing practices, misleading or deceptive labeling, as well as discriminatory or predatory selling and lending practices. This may include deceptive or aggressive selling practices in which incentive structures for employees could encourage the sale of products or services that are not in the best interest of customers or clients.
  - 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.
- Employee Engagement, Diversity & Inclusion
  The category addresses a company’s ability to ensure that its culture and hiring and promotion practices embrace the building of a diverse and inclusive workforce that reflects the makeup of local talent pools and its customer base. It addresses the issues of discriminatory practices on the bases of race, gender, ethnicity, religion, sexual orientation, and other factors.
  
  None
- 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.
  - 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
  The category addresses management of environmental, social, and governance (ESG) risks within a company’s supply chain. It addresses issues associated with environmental and social externalities created by suppliers through their operational activities. Such issues include, but are not limited to, environmental responsibility, human rights, labour practices, and ethics and corruption. Management may involve screening, selection, monitoring, and engagement with suppliers on their environmental and social impacts. The category does not address the impacts of external factors – such as climate change and other environmental and social factors – on suppliers’ operations and/or on the availability and pricing of key resources, which is covered in a separate category.
  - 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
  The category addresses issues related to the resilience of materials supply chains to impacts of climate change and other external environmental and social factors. It captures the impacts of such external factors on operational activity of suppliers, which can further affect availability and pricing of key resources. It addresses a company’s ability to manage these risks through product design, manufacturing, and end-of-life management, such as by using of recycled and renewable materials, reducing the use of key materials (dematerialization), maximizing resource efficiency in manufacturing, and making R&D investments in substitute materials. Additionally, companies can manage these issues by screening, selection, monitoring, and engagement with suppliers to ensure their resilience to external risks. It does not address issues associated with environmental and social externalities created by operational activity of individual suppliers, which is covered in a separate category.
  - 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.
- 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.
  
  None
Professional & Commercial Services Remove
Access Standard
- 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.
  
  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.
  
  None
- Data Security
  The category addresses management of risks related to collection, retention, and use of sensitive, confidential, and/or proprietary customer or user data. It includes social issues that may arise from incidents such as data breaches in which personally identifiable information (PII) and other user or customer data may be exposed. It addresses a company’s strategy, policies, and practices related to IT infrastructure, staff training, record keeping, cooperation with law enforcement, and other mechanisms used to ensure security of customer or user data.
  - Data Security
    Entities in every segment of the industry are entrusted with customer data. Employment and temporary staffing agencies as well as data providers and consulting entities store, process and transmit increasing amounts of sensitive personal data about employees, clients and candidates. In addition, the clients of financial and non-financial services providers may handle sensitive information and share this information with professional and commercial services entities. The exposure of sensitive customer information through cybersecurity breaches, other malicious activities or employee negligence may result in significant risks such as identity fraud and theft. Data breaches may compromise client perception of the effectiveness of a service provider’s security measures, which may result in reputational damage and affect an entity’s ability to attract and retain clients adversely.
- 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
- Selling Practices & Product Labeling
  The category addresses social issues that may arise from a failure to manage the transparency, accuracy, and comprehensibility of marketing statements, advertising, and labeling of products and services. It includes, but is not limited to, advertising standards and regulations, ethical and responsible marketing practices, misleading or deceptive labeling, as well as discriminatory or predatory selling and lending practices. This may include deceptive or aggressive selling practices in which incentive structures for employees could encourage the sale of products or services that are not in the best interest of customers or clients.
  
  None
- Employee Engagement, Diversity & Inclusion
  The category addresses a company’s ability to ensure that its culture and hiring and promotion practices embrace the building of a diverse and inclusive workforce that reflects the makeup of local talent pools and its customer base. It addresses the issues of discriminatory practices on the bases of race, gender, ethnicity, religion, sexual orientation, and other factors.
  - Workforce Diversity & Engagement
    Developing a broad base of valued, respected and supported employees throughout an organisation is essential for the long-term growth prospects of professional and commercial services entities. Human capital is the primary source of revenue generation, contributing knowledge, talent, advice and various technical skills. Although financial and non-financial service providers may hire a diverse workforce among lower-level employees, they may lack diversity among senior management. Enhancing workforce diversity, particularly among management positions, may help entities attract and develop the best talent. Significant employee engagement, fair treatment and equitable levels of pay and advancement opportunities for all workers are all likely to contribute to increased productivity and performance through all levels of the entity.
- 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.
  
  None
- Supply Chain Management
  The category addresses management of environmental, social, and governance (ESG) risks within a company’s supply chain. It addresses issues associated with environmental and social externalities created by suppliers through their operational activities. Such issues include, but are not limited to, environmental responsibility, human rights, labour practices, and ethics and corruption. Management may involve screening, selection, monitoring, and engagement with suppliers on their environmental and social impacts. The category does not address the impacts of external factors – such as climate change and other environmental and social factors – on suppliers’ operations and/or on the availability and pricing of key resources, which is covered in a separate category.
  
  None
- Materials Sourcing & Efficiency
  The category addresses issues related to the resilience of materials supply chains to impacts of climate change and other external environmental and social factors. It captures the impacts of such external factors on operational activity of suppliers, which can further affect availability and pricing of key resources. It addresses a company’s ability to manage these risks through product design, manufacturing, and end-of-life management, such as by using of recycled and renewable materials, reducing the use of key materials (dematerialization), maximizing resource efficiency in manufacturing, and making R&D investments in substitute materials. Additionally, companies can manage these issues by screening, selection, monitoring, and engagement with suppliers to ensure their resilience to external risks. It does not address issues associated with environmental and social externalities created by operational activity of individual suppliers, which is covered in a separate category.
  
  None
- 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.
  - Professional Integrity
    The business model of professional and commercial services entities is dependent on client trust and loyalty. To ensure long-term and mutually beneficial relationships, entities must provide services that meet the highest professional standards of the industry. Professional integrity is an important industry governance issue because the collective actions of professionals inside a single organisation may make the detection and prevention of conflicts of interest, bias or negligence more challenging. Training employees adequately, providing advice and distributing data free from bias and error, and taking other measures to ensure professional integrity, are important both for strengthening an entity’s licence to operate as well as for attracting and retaining clients.

General Issue Category

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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.

Data Security

Data Security
Entities in every segment of the industry are entrusted with customer data. Employment and temporary staffing agencies as well as data providers and consulting entities store, process and transmit increasing amounts of sensitive personal data about employees, clients and candidates. In addition, the clients of financial and non-financial services providers may handle sensitive information and share this information with professional and commercial services entities. The exposure of sensitive customer information through cybersecurity breaches, other malicious activities or employee negligence may result in significant risks such as identity fraud and theft. Data breaches may compromise client perception of the effectiveness of a service provider’s security measures, which may result in reputational damage and affect an entity’s ability to attract and retain clients adversely.

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.

Employee Engagement, Diversity & Inclusion

Workforce Diversity & Engagement
Developing a broad base of valued, respected and supported employees throughout an organisation is essential for the long-term growth prospects of professional and commercial services entities. Human capital is the primary source of revenue generation, contributing knowledge, talent, advice and various technical skills. Although financial and non-financial service providers may hire a diverse workforce among lower-level employees, they may lack diversity among senior management. Enhancing workforce diversity, particularly among management positions, may help entities attract and develop the best talent. Significant employee engagement, fair treatment and equitable levels of pay and advancement opportunities for all workers are all likely to contribute to increased productivity and performance through all levels of the entity.

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.

Business Ethics

Professional Integrity
The business model of professional and commercial services entities is dependent on client trust and loyalty. To ensure long-term and mutually beneficial relationships, entities must provide services that meet the highest professional standards of the industry. Professional integrity is an important industry governance issue because the collective actions of professionals inside a single organisation may make the detection and prevention of conflicts of interest, bias or negligence more challenging. Training employees adequately, providing advice and distributing data free from bias and error, and taking other measures to ensure professional integrity, are important both for strengthening an entity’s licence to operate as well as for attracting and retaining clients.

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