Industry Comparison

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Mortgage Finance
The Mortgage Finance industry provides an essential public good by enabling consumers to purchase homes and contributing to the overall home ownership rate. Entities in the industry lend capital to individual and commercial customers using property as collateral. The primary products are residential and commercial mortgages, while other services offered include mortgage servicing, title insurance, closing and settlement services, and valuation. In addition, mortgage finance entities own, manage and finance real estate-related investments such as mortgage pass-through certificates and collateralised mortgage obligations. Recent trends in the regulatory environment indicate a significant shift towards consumer protection, disclosure and accountability. Regulatory changes made in response to the global 2008 financial crisis demonstrate the potential for further alignment between the interests of society and those of long-term investors.
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Apparel, Accessories & Footwear
The Apparel, Accessories & Footwear industry includes entities involved in the design, manufacturing, wholesaling and retailing of various products, including adult and children’s clothing, handbags, jewellery, watches and footwear. Products are manufactured primarily by vendors in emerging markets, thereby allowing entities in the industry to focus on design, wholesaling, marketing, supply chain management and retail activities.
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Relevant Issues for both Industries (5 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
- Air Quality
- Energy Management
- Water & Wastewater Management
- Waste & Hazardous Materials Management
- Ecological Impacts
Social Capital
- Human Rights & Community Relations
- Customer Privacy
- Data Security
- Access & Affordability
- Product Quality & Safety
  The category addresses issues involving unintended characteristics of products sold or services provided that may create health or safety risks to end-users. It addresses a company’s ability to offer manufactured products and/or services that meet customer expectations with respect to their health and safety characteristics. It includes, but is not limited to, issues involving liability, management of recalls and market withdrawals, product testing, and chemicals/content/ingredient management in products.
- Customer Welfare
- Selling Practices & Product Labeling
  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
Business Model and Innovation
- Product Design & Lifecycle Management
- 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
  The category addresses the company’s ability to manage risks and opportunities associated with direct exposure of its owned or controlled assets and operations to actual or potential physical impacts of climate change. It captures environmental and social issues that may arise from operational disruptions due to physical impacts of climate change. It further captures socio-economic issues resulting from companies failing to incorporate climate change consideration in products and services sold, such as insurance policies and mortgages. The category relates to the company’s ability to adapt to increased frequency and severity of extreme weather, shifting climate, sea level risk, and other expected physical impacts of climate change. Management may involve enhancing resiliency of physical assets and/or surrounding infrastructure as well as incorporation of climate change-related considerations into key business activities (e.g., mortgage and insurance underwriting, planning and development of real estate projects).
Leadership and Governance
- Business Ethics
- 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.

Mortgage Finance Remove
Access Standard
- Product Quality & Safety
  The category addresses issues involving unintended characteristics of products sold or services provided that may create health or safety risks to end-users. It addresses a company’s ability to offer manufactured products and/or services that meet customer expectations with respect to their health and safety characteristics. It includes, but is not limited to, issues involving liability, management of recalls and market withdrawals, product testing, and chemicals/content/ingredient management in products.
  
  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.
  - Lending Practices
    The approach mortgage finance entities take when incentivising employees and how they communicate with customers is important for more than one reason. First, the incentive structures and compensation policies of loan originators may unintentionally encourage them to promote lending products and services unsuitable for their clients. Second, a lack of transparency provided to customers with respect to primary and add-on products may impair an entity’s reputation and invite regulatory scrutiny and costly litigation. Finally, as a consequence, the resulting client portfolios may contain a high concentration of risky products sold. Also, laws and regulations restricting predatory lending may prohibit mortgage originators from receiving compensation tied to loan value and may require additional disclosures be provided to borrowers. Entities that develop transparent information, give fair advice to customers and clearly disclose their lending practices may assist shareholders in determining which entities better protect shareholder value.
  - Discriminatory Lending
    The Mortgage Finance industry aggregates data to determine loan terms and conditions including important provisions such as loan size, interest rate, up-front points or other fees. However, the complex process may result in intentional or unintentional discriminatory lending practices by the mortgage originator. Discriminatory lending may result in fines or settlements for violations of regulations, increased reputational risk, and negative financial performance because of loan mispricing. Disclosing internal processes to ensure non-discriminatory lending, disclosing the amount of mortgage lending categorised by minority status along with relevant financial characteristics, and disclosing the amount of monetary losses resulting from legal proceedings associated with violations of applicable laws and regulations may help investors assess entity performance. Entities in the Mortgage Finance industry may reduce the risk of discriminatory lending, including unintended discriminatory lending, by implementing strong processes, enforcing internal controls, and proactively monitoring their loan portfolio, among other techniques.
- 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
- Physical Impacts of Climate Change
  The category addresses the company’s ability to manage risks and opportunities associated with direct exposure of its owned or controlled assets and operations to actual or potential physical impacts of climate change. It captures environmental and social issues that may arise from operational disruptions due to physical impacts of climate change. It further captures socio-economic issues resulting from companies failing to incorporate climate change consideration in products and services sold, such as insurance policies and mortgages. The category relates to the company’s ability to adapt to increased frequency and severity of extreme weather, shifting climate, sea level risk, and other expected physical impacts of climate change. Management may involve enhancing resiliency of physical assets and/or surrounding infrastructure as well as incorporation of climate change-related considerations into key business activities (e.g., mortgage and insurance underwriting, planning and development of real estate projects).
  - Environmental Risk to Mortgaged Properties
    An increase in the frequency of extreme weather events associated with climate change may have an adverse impact on the Mortgage Finance industry. Specifically, hurricanes, floods and other climate change-related events have the potential to result in missed payments and loan defaults, while also decreasing the value of underlying assets. Entities which incorporate climate-related risks into lending analysis may be better positioned to create value over the long-term.
Apparel, Accessories & Footwear Remove
Access Standard
- Product Quality & Safety
  The category addresses issues involving unintended characteristics of products sold or services provided that may create health or safety risks to end-users. It addresses a company’s ability to offer manufactured products and/or services that meet customer expectations with respect to their health and safety characteristics. It includes, but is not limited to, issues involving liability, management of recalls and market withdrawals, product testing, and chemicals/content/ingredient management in products.
  - Management of Chemicals in Products
    Chemical safety regulations demonstrate regulatory and stakeholder concern surrounding the use of harmful or potentially harmful substances in consumer products, including apparel, accessories and footwear. Finished apparel and footwear products have been found to contain traces of chemicals that have been banned or regulated. Depending on the chemical, the amount present in a product and the type of exposure, specific substances can be carcinogenic and can disrupt hormone activity in humans and other organisms. Failure to manage this issue may generate increased regulatory oversight and affect an entity’s social licence to operate. The presence of harmful chemicals in products can result in recalls, litigation and reputational damage. Entities in this industry can examine the design, manufacturing and end-of-life phases to manage the creation, use and disposal of products containing chemicals of concern, develop safe alternatives and eliminate banned chemicals. Given the industry’s reliance on outsourced manufacturing, this involves proactive partnerships with suppliers. In managing this issue, entities must balance the hazards posed by some chemicals against the quality of a product and its costs of production.
- 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
- 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 Impacts in the Supply Chain
    The Apparel, Accessories & Footwear industry’s global supply chain contributes significantly to adverse environmental externalities through water consumption and various forms of pollution. Water pollution results from the discharge of chemicals during water-intensive dyeing and tanning processes. Air pollution stems from the industry’s energy use and some manufacturing processes. These impacts have the potential to damage an entity’s reputation and to affect cost structures over time. The scale of this issue has been intensified historically by the industry relying on manufacturing partners in emerging markets with limited environmental regulations and oversight. However, enhanced stakeholder and consumer scrutiny, coupled with increasingly stringent regulation in some regions, has encouraged entities throughout the industry to work with suppliers to reduce their environmental impact. Apparel, Accessories & Footwear entities that leverage their market power to influence suppliers to improve operational efficiencies and resource consumption and limit pollution can mitigate the costs associated with increased resource scarcity and regulation. Further, those that engage with suppliers through monitoring, auditing and strict standards may better preserve shareholder value over the long term.
  - Labour Conditions in the Supply Chain
    The treatment of workers and the protection of worker rights in the Apparel, Accessories & Footwear industry’s supply chain is of growing concern among consumers, regulators and leading entities. Critical aspects of this issue include employee health and safety, fair pay, child labour and forced labour. Although many entities strive to improve supply chain labour conditions, the industry’s reliance on a multitiered system of suppliers, subcontractors, labour recruitment firms and part-time workers makes these issues difficult to manage. Because entities in the industry typically contract with suppliers in countries with the lowest direct costs, the industry’s products often are manufactured in countries with limited regulations or enforcement protecting workers. This dynamic can increase an entity’s exposure to reputational risks. Effects on short- and long-term costs and sales can arise from increasing regulation and enforcement in response to high-profile safety or labour incidents, production disruptions because of strikes and other labour-related work stoppages, or through a shift in demand away from entities associated with such incidents. Entities with strong supply chain standards, monitoring and engagement with suppliers to address labour concerns may better preserve shareholder value over the long term.
- 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.
  - Raw Materials Sourcing
    The Apparel, Accessories & Footwear industry relies on many raw materials including cotton, leather, wool, rubber, and precious minerals and metals, as inputs for finished products. Sustainability impacts related to climate change, land use, resource scarcity and conflict in regions where the industry’s supply chain operates affect the industry’s ability to reliably source materials. The ability of entities to manage potential material shortages, supply disruptions, price volatility and reputational risks can be more difficult when supply chains lack transparency. Failure to effectively manage this issue can delay shipments and depress earnings, reduce margins, constrain revenue growth or increase costs of capital. The types of risk associated with sourcing different materials can require different solutions, including engaging with suppliers, enhancing transparency by using certification standards, using innovative alternative materials, or introducing circular economy practices. Entities that are proactive may reduce their exposure to price volatility and potential supply disruptions, while improving their brand reputation and developing new market opportunities.
- Physical Impacts of Climate Change
  The category addresses the company’s ability to manage risks and opportunities associated with direct exposure of its owned or controlled assets and operations to actual or potential physical impacts of climate change. It captures environmental and social issues that may arise from operational disruptions due to physical impacts of climate change. It further captures socio-economic issues resulting from companies failing to incorporate climate change consideration in products and services sold, such as insurance policies and mortgages. The category relates to the company’s ability to adapt to increased frequency and severity of extreme weather, shifting climate, sea level risk, and other expected physical impacts of climate change. Management may involve enhancing resiliency of physical assets and/or surrounding infrastructure as well as incorporation of climate change-related considerations into key business activities (e.g., mortgage and insurance underwriting, planning and development of real estate projects).
  
  None

General Issue Category

Remove Mortgage Finance Access Standard

Remove Apparel, Accessories & Footwear Access Standard

Product Quality & Safety

Management of Chemicals in Products
Chemical safety regulations demonstrate regulatory and stakeholder concern surrounding the use of harmful or potentially harmful substances in consumer products, including apparel, accessories and footwear. Finished apparel and footwear products have been found to contain traces of chemicals that have been banned or regulated. Depending on the chemical, the amount present in a product and the type of exposure, specific substances can be carcinogenic and can disrupt hormone activity in humans and other organisms. Failure to manage this issue may generate increased regulatory oversight and affect an entity’s social licence to operate. The presence of harmful chemicals in products can result in recalls, litigation and reputational damage. Entities in this industry can examine the design, manufacturing and end-of-life phases to manage the creation, use and disposal of products containing chemicals of concern, develop safe alternatives and eliminate banned chemicals. Given the industry’s reliance on outsourced manufacturing, this involves proactive partnerships with suppliers. In managing this issue, entities must balance the hazards posed by some chemicals against the quality of a product and its costs of production.

Selling Practices & Product Labeling

Lending Practices
The approach mortgage finance entities take when incentivising employees and how they communicate with customers is important for more than one reason. First, the incentive structures and compensation policies of loan originators may unintentionally encourage them to promote lending products and services unsuitable for their clients. Second, a lack of transparency provided to customers with respect to primary and add-on products may impair an entity’s reputation and invite regulatory scrutiny and costly litigation. Finally, as a consequence, the resulting client portfolios may contain a high concentration of risky products sold. Also, laws and regulations restricting predatory lending may prohibit mortgage originators from receiving compensation tied to loan value and may require additional disclosures be provided to borrowers. Entities that develop transparent information, give fair advice to customers and clearly disclose their lending practices may assist shareholders in determining which entities better protect shareholder value.
Discriminatory Lending
The Mortgage Finance industry aggregates data to determine loan terms and conditions including important provisions such as loan size, interest rate, up-front points or other fees. However, the complex process may result in intentional or unintentional discriminatory lending practices by the mortgage originator. Discriminatory lending may result in fines or settlements for violations of regulations, increased reputational risk, and negative financial performance because of loan mispricing. Disclosing internal processes to ensure non-discriminatory lending, disclosing the amount of mortgage lending categorised by minority status along with relevant financial characteristics, and disclosing the amount of monetary losses resulting from legal proceedings associated with violations of applicable laws and regulations may help investors assess entity performance. Entities in the Mortgage Finance industry may reduce the risk of discriminatory lending, including unintended discriminatory lending, by implementing strong processes, enforcing internal controls, and proactively monitoring their loan portfolio, among other techniques.

Supply Chain Management

Environmental Impacts in the Supply Chain
The Apparel, Accessories & Footwear industry’s global supply chain contributes significantly to adverse environmental externalities through water consumption and various forms of pollution. Water pollution results from the discharge of chemicals during water-intensive dyeing and tanning processes. Air pollution stems from the industry’s energy use and some manufacturing processes. These impacts have the potential to damage an entity’s reputation and to affect cost structures over time. The scale of this issue has been intensified historically by the industry relying on manufacturing partners in emerging markets with limited environmental regulations and oversight. However, enhanced stakeholder and consumer scrutiny, coupled with increasingly stringent regulation in some regions, has encouraged entities throughout the industry to work with suppliers to reduce their environmental impact. Apparel, Accessories & Footwear entities that leverage their market power to influence suppliers to improve operational efficiencies and resource consumption and limit pollution can mitigate the costs associated with increased resource scarcity and regulation. Further, those that engage with suppliers through monitoring, auditing and strict standards may better preserve shareholder value over the long term.
Labour Conditions in the Supply Chain
The treatment of workers and the protection of worker rights in the Apparel, Accessories & Footwear industry’s supply chain is of growing concern among consumers, regulators and leading entities. Critical aspects of this issue include employee health and safety, fair pay, child labour and forced labour. Although many entities strive to improve supply chain labour conditions, the industry’s reliance on a multitiered system of suppliers, subcontractors, labour recruitment firms and part-time workers makes these issues difficult to manage. Because entities in the industry typically contract with suppliers in countries with the lowest direct costs, the industry’s products often are manufactured in countries with limited regulations or enforcement protecting workers. This dynamic can increase an entity’s exposure to reputational risks. Effects on short- and long-term costs and sales can arise from increasing regulation and enforcement in response to high-profile safety or labour incidents, production disruptions because of strikes and other labour-related work stoppages, or through a shift in demand away from entities associated with such incidents. Entities with strong supply chain standards, monitoring and engagement with suppliers to address labour concerns may better preserve shareholder value over the long term.

Materials Sourcing & Efficiency

Raw Materials Sourcing
The Apparel, Accessories & Footwear industry relies on many raw materials including cotton, leather, wool, rubber, and precious minerals and metals, as inputs for finished products. Sustainability impacts related to climate change, land use, resource scarcity and conflict in regions where the industry’s supply chain operates affect the industry’s ability to reliably source materials. The ability of entities to manage potential material shortages, supply disruptions, price volatility and reputational risks can be more difficult when supply chains lack transparency. Failure to effectively manage this issue can delay shipments and depress earnings, reduce margins, constrain revenue growth or increase costs of capital. The types of risk associated with sourcing different materials can require different solutions, including engaging with suppliers, enhancing transparency by using certification standards, using innovative alternative materials, or introducing circular economy practices. Entities that are proactive may reduce their exposure to price volatility and potential supply disruptions, while improving their brand reputation and developing new market opportunities.

Physical Impacts of Climate Change

Environmental Risk to Mortgaged Properties
An increase in the frequency of extreme weather events associated with climate change may have an adverse impact on the Mortgage Finance industry. Specifically, hurricanes, floods and other climate change-related events have the potential to result in missed payments and loan defaults, while also decreasing the value of underlying assets. Entities which incorporate climate-related risks into lending analysis may be better positioned to create value over the long-term.

Relevant Issues for both Industries (5 of 26)

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