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Biofuels
Biofuels industry entities produce biofuels and process raw materials for production. Using organic feedstocks, entities manufacture biofuels that are used primarily in transportation. Entities typically source feedstocks, which include food, oil crops and animal products, from agricultural product distributors. Ethanol and biodiesel are the most widely produced biofuels, while other types include biogas, biohydrogen and synthetic biofuels, produced from a variety of organic feedstocks. Biofuels entities’ customers are chiefly fuel-blending and fuel-supply entities, including major integrated oil entities. Government regulations related to the use of renewable fuel are a significant demand driver in the industry.
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Fuel Cells & Industrial Batteries
Fuel Cells & Industrial Batteries industry entities manufacture fuel cells for energy production and energy storage equipment such as batteries. Manufacturers in this industry mainly sell products to entities for varied energy-generation and energy-storage applications and intensities, from commercial business applications to large-scale energy projects for utilities. Entities in the industry typically have global operations and sell products to a global marketplace.
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Relevant Issues for both Industries (9 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
  The category addresses management of air quality impacts resulting from stationary (e.g., factories, power plants) and mobile sources (e.g., trucks, delivery vehicles, planes) as well as industrial emissions. Relevant airborne pollutants include, but are not limited to, oxides of nitrogen (NOx), oxides of sulfur (SOx), volatile organic compounds (VOCs), heavy metals, particulate matter, and chlorofluorocarbons. The category does not include GHG emissions, which are addressed in a separate category.
- 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
- Access & Affordability
- Product Quality & Safety
- Customer Welfare
- Selling Practices & Product Labeling
Human Capital
- Labour Practices
- Employee Health & Safety
  The category addresses a company’s ability to create and maintain a safe and healthy workplace environment that is free of injuries, fatalities, and illness (both chronic and acute). It is traditionally accomplished through implementing safety management plans, developing training requirements for employees and contractors, and conducting regular audits of their own practices as well as those of their subcontractors. The category further captures how companies ensure physical and mental health of workforce through technology, training, corporate culture, regulatory compliance, monitoring and testing, and personal protective equipment.
- Employee Engagement, Diversity & Inclusion
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
- Competitive Behaviour
- Management of the Legal & Regulatory Environment
  The category addresses a company’s approach to engaging with regulators in cases where conflicting corporate and public interests may have the potential for long-term adverse direct or indirect environmental and social impacts. The category addresses a company’s level of reliance upon regulatory policy or monetary incentives (such as subsidies and taxes), actions to influence industry policy (such as through lobbying), overall reliance on a favorable regulatory environment for business competitiveness, and ability to comply with relevant regulations. It may relate to the alignment of management and investor views of regulatory engagement and compliance at large.
- Critical Incident Risk Management
  The category addresses the company’s use of management systems and scenario planning to identify, understand, and prevent or minimize the occurrence of low-probability, high-impact accidents and emergencies with significant potential environmental and social externalities. It relates to the culture of safety at a company, its relevant safety management systems and technological controls, the potential human, environmental, and social implications of such events occurring, and the long-term effects to an organization, its workers, and society should these events occur.
- Systemic Risk Management

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.

Biofuels Remove
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- Air Quality
  The category addresses management of air quality impacts resulting from stationary (e.g., factories, power plants) and mobile sources (e.g., trucks, delivery vehicles, planes) as well as industrial emissions. Relevant airborne pollutants include, but are not limited to, oxides of nitrogen (NOx), oxides of sulfur (SOx), volatile organic compounds (VOCs), heavy metals, particulate matter, and chlorofluorocarbons. The category does not include GHG emissions, which are addressed in a separate category.
  - Air Quality
    Biofuel refineries generate air emissions that may include air pollutants and volatile organic compounds. Grain-handling equipment, boilers, wastewater treatment, and cooling, drying, distillation and fermentation units generate emissions. In most regions, such emissions typically are subject to jurisdictional regulations that limit emissions below specific thresholds. As a result, air emissions often are subject to emissions permits and abatement that may result in incremental operating and compliance costs or capital expenditures. Entities also may face regulatory penalties, as well as permit restrictions or delays from jurisdictional legal or regulatory authorities for non-compliance.
- Energy Management
  The category addresses environmental impacts associated with energy consumption. It addresses the company’s management of energy in manufacturing and/or for provision of products and services derived from utility providers (grid energy) not owned or controlled by the company. More specifically, it includes management of energy efficiency and intensity, energy mix, as well as grid reliance. Upstream (e.g., suppliers) and downstream (e.g., product use) energy use is not included in the scope.
  
  None
- Water & Wastewater Management
  The category addresses a company’s water use, water consumption, wastewater generation, and other impacts of operations on water resources, which may be influenced by regional differences in the availability and quality of and competition for water resources. More specifically, it addresses management strategies including, but not limited to, water efficiency, intensity, and recycling. Lastly, the category also addresses management of wastewater treatment and discharge, including groundwater and aquifer pollution.
  - Water Management in Manufacturing
    Biofuel refining is water-intensive. Biorefineries require water for feedstock processing, fermentation, distillation and cooling. Although water use at biorefineries is modest relative to the quantities consumed during feedstock crop production, it is concentrated, and thus may affect local water resources. Facilities also may generate wastewater containing salts, organic compounds, dissolved solids, phosphorus and other substances, requiring wastewater treatment. Biofuel refineries also may face reduced water availability, related cost increases or operational disruptions. Water extraction from particular areas for refining, as well as contamination of water supplies because of refining operations, also could create regulatory risk and tensions with local communities. Water efficiency in operations and the proper treatment of effluents are therefore important for biofuels entities.
- Employee Health & Safety
  The category addresses a company’s ability to create and maintain a safe and healthy workplace environment that is free of injuries, fatalities, and illness (both chronic and acute). It is traditionally accomplished through implementing safety management plans, developing training requirements for employees and contractors, and conducting regular audits of their own practices as well as those of their subcontractors. The category further captures how companies ensure physical and mental health of workforce through technology, training, corporate culture, regulatory compliance, monitoring and testing, and personal protective equipment.
  
  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.
  - Lifecycle Emissions Balance
    The rapid growth in global biofuels production has been encouraged by government energy policies that seek to reduce net GHG emissions from transportation fuels and dependence on fossil fuels. Most major renewable-fuel policies worldwide require that biofuels achieve lifecycle GHG emissions reductions relative to a fossil-fuel baseline to qualify for renewable fuel-mandate thresholds. The biofuel lifecycle emission calculation may include indirect and direct emissions from feedstock crop production and land use, fuel refining, fuel and feedstock transport, and vehicle exhaust emissions. Biofuel producers may influence net emissions directly during the refining process through energy management (fuel use), process innovations and by using feedstocks with lower emissions profiles. Fuel products that achieve a reduction in net emissions may qualify as advanced biofuels, which could increase future demand. Biofuel entities that cost-effectively reduce product net carbon emissions may gain a competitive product advantage, spur revenue growth and increase market share.
- 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.
  - Sourcing & Environmental Impacts of Feedstock Production
    The Biofuels industry uses a variety of plant-based feedstocks for production. Most entities purchase feedstocks from agricultural producers and distributors. A growing proportion of the world’s arable land now is occupied by biofuel crops. Unsustainable cultivation practices can have negative environmental externalities, including deforestation and biodiversity loss, soil degradation, and water pollution. These factors may affect feedstock crop yields adversely over the short- and long-term. This, in turn, may influence the price and availability of feedstocks for biofuels producers. Consequently, vetting the sustainability of supply chains, such as through certifications or engagement with suppliers, is an important consideration for biofuels producers.
- 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
- Management of the Legal & Regulatory Environment
  The category addresses a company’s approach to engaging with regulators in cases where conflicting corporate and public interests may have the potential for long-term adverse direct or indirect environmental and social impacts. The category addresses a company’s level of reliance upon regulatory policy or monetary incentives (such as subsidies and taxes), actions to influence industry policy (such as through lobbying), overall reliance on a favorable regulatory environment for business competitiveness, and ability to comply with relevant regulations. It may relate to the alignment of management and investor views of regulatory engagement and compliance at large.
  - Management of the Legal & Regulatory Environment
    The Biofuels industry is dependent on government policies and regulations that create market demand and incentivise supply with tax breaks and other support for feedstock production. The Biofuels industry supports some regulations and policies related to renewable fuel policy, production tax credits and feedstock production. While regulatory support can result in positive short-term gains by supporting the biofuels market, the potential long-term adverse environmental impacts from feedstock and biofuels production may result in a reversal of beneficial policies, leading to a more uncertain regulatory environment. Consequently, biofuels entities may benefit from developing clear strategies for engaging regulators that are aligned with long-term sustainable business outcomes and that account for environmental externalities.
- Critical Incident Risk Management
  The category addresses the company’s use of management systems and scenario planning to identify, understand, and prevent or minimize the occurrence of low-probability, high-impact accidents and emergencies with significant potential environmental and social externalities. It relates to the culture of safety at a company, its relevant safety management systems and technological controls, the potential human, environmental, and social implications of such events occurring, and the long-term effects to an organization, its workers, and society should these events occur.
  - Operational Safety, Emergency Preparedness & Response
    Biofuel production presents operational safety hazards because of the presence of flammable and explosive substances, high temperatures, and pressurised equipment. Process safety incidents can damage facilities, injure workers, and affect the local environment and communities. Although the frequency of accidents in the industry is relatively low, when they do take place, the outcomes may be severe, with significant effects on financial performance. Damaged facilities may be inoperable for extended periods, resulting in lost revenues and large capital expenditures for repairs. Entities perceived to be at a greater risk of process safety incidents may have a higher cost of capital, while workforce injuries could result in regulatory penalties and litigation. Conversely, entities with a strong safety culture and operational safety oversight may detect and respond more effectively to such incidents, mitigating potential financial risks and improving operational efficiency.
Fuel Cells & Industrial Batteries Remove
Access Standard
- Air Quality
  The category addresses management of air quality impacts resulting from stationary (e.g., factories, power plants) and mobile sources (e.g., trucks, delivery vehicles, planes) as well as industrial emissions. Relevant airborne pollutants include, but are not limited to, oxides of nitrogen (NOx), oxides of sulfur (SOx), volatile organic compounds (VOCs), heavy metals, particulate matter, and chlorofluorocarbons. The category does not include GHG emissions, which are addressed in a separate category.
  
  None
- Energy Management
  The category addresses environmental impacts associated with energy consumption. It addresses the company’s management of energy in manufacturing and/or for provision of products and services derived from utility providers (grid energy) not owned or controlled by the company. More specifically, it includes management of energy efficiency and intensity, energy mix, as well as grid reliance. Upstream (e.g., suppliers) and downstream (e.g., product use) energy use is not included in the scope.
  - Energy Management
    Manufacturing in the Fuel Cells & Industrial Batteries industry requires energy to power machines and cooling, ventilation, lighting and product-testing systems. Purchased electricity is a major share of the energy sources used in the industry and accounts for a notable proportion of the total cost of materials and value added. Various sustainability factors are increasing the cost of conventional electricity while making alternative sources cost-competitive. Energy efficiency efforts may have a significant positive impact on operational efficiency and profitability, especially because many entities operate on relatively low or negative margins. By improving manufacturing process efficiency and exploring alternative energy sources, fuel cell and industrial battery entities may reduce both their indirect environmental impacts and their operating expenses.
- 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
- Employee Health & Safety
  The category addresses a company’s ability to create and maintain a safe and healthy workplace environment that is free of injuries, fatalities, and illness (both chronic and acute). It is traditionally accomplished through implementing safety management plans, developing training requirements for employees and contractors, and conducting regular audits of their own practices as well as those of their subcontractors. The category further captures how companies ensure physical and mental health of workforce through technology, training, corporate culture, regulatory compliance, monitoring and testing, and personal protective equipment.
  - Workforce Health & Safety
    Fuel cell and industrial battery manufacturing workers may be exposed to hazardous substances or workplace accidents that can have chronic or acute health impacts. Entities may face litigation because of injuries or chronic health impacts from working in fuel cell and battery manufacturing or recycling facilities. Entities that develop and implement strong safety processes and internal controls, including through providing health and safety training, protective gear, improved ventilation, and regular health monitoring, can improve workforce health and safety performance and mitigate regulatory and litigation risks.
- 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.
  - Product Efficiency
    Both customer demand and regulatory requirements are driving innovation in energy-efficient products with lower environmental impacts and lower total cost of ownership. Therefore, research and development in the Fuel Cells & Industrial Batteries industry that drive energy and thermal efficiency and enhance storage capacities may lower barriers to adoption. Advances in battery technology to increase storage capabilities and improve charging efficiencies, while reducing costs for customers, are critical for the integration of renewable energy technologies into the grid. Pressured by stricter environmental regulations, high energy costs and customer preferences, fuel cell and industrial battery manufacturers that improve efficiency in the use phase may increase revenue and market share.
  - Product End-of-life Management
    As the rate of adoption of fuel cells and industrial batteries increases and more products reach their end of life, designing products to facilitate end-of-life management and maximise materials efficiency may become increasingly important. Fuel cells and batteries may contain hazardous substances, which must be properly discarded because they can pose human health or environmental risks. The emergence of several laws regarding the end-of-life phase of batteries recently has increased the importance of the issue, creating potential added costs of managing risks, as well as opportunities, through regulatory incentives. Effective design for disassembly and reuse or recycling will be an important element for increasing recovery rates to reduce the lifecycle impacts of fuel cells and batteries. Furthermore, given the input-price volatility and resource constraints of some raw materials, fuel cell and industrial battery entities that develop take-back and recycling systems and reuse recovered materials in manufacturing may increase their long-term operational efficiency and improve their risk profile.
- 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.
  - Materials Sourcing
    Manufacturing some types of industrial batteries and fuel cells requires an available supply of materials such as lithium, cobalt, nickel and platinum. Access to these materials is critical for the continuous development and scaling of clean energy technologies like fuel cells and industrial batteries. Limited global resources of these critical materials, as well as their concentration in countries that may have relatively limited governance and regulatory structures or are subject to geopolitical tensions, expose entities to the risk of supply-chain disruptions and input-price increases or volatility. At the same time, competition from other industries that use the same critical materials or employ fuel cell and battery technologies may exacerbate supply risks. Fuel cell and industrial battery entities with strong supply-chain standards and the ability to adapt to increasing resource scarcity may protect shareholder value better. Entities that reduce the use of critical materials and secure supply of the materials they do use may mitigate potential financial effects because of supply disruptions, volatile input prices, and reputational and regulatory risks.
- Management of the Legal & Regulatory Environment
  The category addresses a company’s approach to engaging with regulators in cases where conflicting corporate and public interests may have the potential for long-term adverse direct or indirect environmental and social impacts. The category addresses a company’s level of reliance upon regulatory policy or monetary incentives (such as subsidies and taxes), actions to influence industry policy (such as through lobbying), overall reliance on a favorable regulatory environment for business competitiveness, and ability to comply with relevant regulations. It may relate to the alignment of management and investor views of regulatory engagement and compliance at large.
  
  None
- Critical Incident Risk Management
  The category addresses the company’s use of management systems and scenario planning to identify, understand, and prevent or minimize the occurrence of low-probability, high-impact accidents and emergencies with significant potential environmental and social externalities. It relates to the culture of safety at a company, its relevant safety management systems and technological controls, the potential human, environmental, and social implications of such events occurring, and the long-term effects to an organization, its workers, and society should these events occur.
  
  None

General Issue Category

Remove Biofuels Access Standard

Remove Fuel Cells & Industrial Batteries Access Standard

Air Quality

Air Quality
Biofuel refineries generate air emissions that may include air pollutants and volatile organic compounds. Grain-handling equipment, boilers, wastewater treatment, and cooling, drying, distillation and fermentation units generate emissions. In most regions, such emissions typically are subject to jurisdictional regulations that limit emissions below specific thresholds. As a result, air emissions often are subject to emissions permits and abatement that may result in incremental operating and compliance costs or capital expenditures. Entities also may face regulatory penalties, as well as permit restrictions or delays from jurisdictional legal or regulatory authorities for non-compliance.

Energy Management

Energy Management
Manufacturing in the Fuel Cells & Industrial Batteries industry requires energy to power machines and cooling, ventilation, lighting and product-testing systems. Purchased electricity is a major share of the energy sources used in the industry and accounts for a notable proportion of the total cost of materials and value added. Various sustainability factors are increasing the cost of conventional electricity while making alternative sources cost-competitive. Energy efficiency efforts may have a significant positive impact on operational efficiency and profitability, especially because many entities operate on relatively low or negative margins. By improving manufacturing process efficiency and exploring alternative energy sources, fuel cell and industrial battery entities may reduce both their indirect environmental impacts and their operating expenses.

Water & Wastewater Management

Water Management in Manufacturing
Biofuel refining is water-intensive. Biorefineries require water for feedstock processing, fermentation, distillation and cooling. Although water use at biorefineries is modest relative to the quantities consumed during feedstock crop production, it is concentrated, and thus may affect local water resources. Facilities also may generate wastewater containing salts, organic compounds, dissolved solids, phosphorus and other substances, requiring wastewater treatment. Biofuel refineries also may face reduced water availability, related cost increases or operational disruptions. Water extraction from particular areas for refining, as well as contamination of water supplies because of refining operations, also could create regulatory risk and tensions with local communities. Water efficiency in operations and the proper treatment of effluents are therefore important for biofuels entities.

Employee Health & Safety

Workforce Health & Safety
Fuel cell and industrial battery manufacturing workers may be exposed to hazardous substances or workplace accidents that can have chronic or acute health impacts. Entities may face litigation because of injuries or chronic health impacts from working in fuel cell and battery manufacturing or recycling facilities. Entities that develop and implement strong safety processes and internal controls, including through providing health and safety training, protective gear, improved ventilation, and regular health monitoring, can improve workforce health and safety performance and mitigate regulatory and litigation risks.

Product Design & Lifecycle Management

Lifecycle Emissions Balance
The rapid growth in global biofuels production has been encouraged by government energy policies that seek to reduce net GHG emissions from transportation fuels and dependence on fossil fuels. Most major renewable-fuel policies worldwide require that biofuels achieve lifecycle GHG emissions reductions relative to a fossil-fuel baseline to qualify for renewable fuel-mandate thresholds. The biofuel lifecycle emission calculation may include indirect and direct emissions from feedstock crop production and land use, fuel refining, fuel and feedstock transport, and vehicle exhaust emissions. Biofuel producers may influence net emissions directly during the refining process through energy management (fuel use), process innovations and by using feedstocks with lower emissions profiles. Fuel products that achieve a reduction in net emissions may qualify as advanced biofuels, which could increase future demand. Biofuel entities that cost-effectively reduce product net carbon emissions may gain a competitive product advantage, spur revenue growth and increase market share.

Product Efficiency
Both customer demand and regulatory requirements are driving innovation in energy-efficient products with lower environmental impacts and lower total cost of ownership. Therefore, research and development in the Fuel Cells & Industrial Batteries industry that drive energy and thermal efficiency and enhance storage capacities may lower barriers to adoption. Advances in battery technology to increase storage capabilities and improve charging efficiencies, while reducing costs for customers, are critical for the integration of renewable energy technologies into the grid. Pressured by stricter environmental regulations, high energy costs and customer preferences, fuel cell and industrial battery manufacturers that improve efficiency in the use phase may increase revenue and market share.
Product End-of-life Management
As the rate of adoption of fuel cells and industrial batteries increases and more products reach their end of life, designing products to facilitate end-of-life management and maximise materials efficiency may become increasingly important. Fuel cells and batteries may contain hazardous substances, which must be properly discarded because they can pose human health or environmental risks. The emergence of several laws regarding the end-of-life phase of batteries recently has increased the importance of the issue, creating potential added costs of managing risks, as well as opportunities, through regulatory incentives. Effective design for disassembly and reuse or recycling will be an important element for increasing recovery rates to reduce the lifecycle impacts of fuel cells and batteries. Furthermore, given the input-price volatility and resource constraints of some raw materials, fuel cell and industrial battery entities that develop take-back and recycling systems and reuse recovered materials in manufacturing may increase their long-term operational efficiency and improve their risk profile.

Supply Chain Management

Sourcing & Environmental Impacts of Feedstock Production
The Biofuels industry uses a variety of plant-based feedstocks for production. Most entities purchase feedstocks from agricultural producers and distributors. A growing proportion of the world’s arable land now is occupied by biofuel crops. Unsustainable cultivation practices can have negative environmental externalities, including deforestation and biodiversity loss, soil degradation, and water pollution. These factors may affect feedstock crop yields adversely over the short- and long-term. This, in turn, may influence the price and availability of feedstocks for biofuels producers. Consequently, vetting the sustainability of supply chains, such as through certifications or engagement with suppliers, is an important consideration for biofuels producers.

Materials Sourcing & Efficiency

Materials Sourcing
Manufacturing some types of industrial batteries and fuel cells requires an available supply of materials such as lithium, cobalt, nickel and platinum. Access to these materials is critical for the continuous development and scaling of clean energy technologies like fuel cells and industrial batteries. Limited global resources of these critical materials, as well as their concentration in countries that may have relatively limited governance and regulatory structures or are subject to geopolitical tensions, expose entities to the risk of supply-chain disruptions and input-price increases or volatility. At the same time, competition from other industries that use the same critical materials or employ fuel cell and battery technologies may exacerbate supply risks. Fuel cell and industrial battery entities with strong supply-chain standards and the ability to adapt to increasing resource scarcity may protect shareholder value better. Entities that reduce the use of critical materials and secure supply of the materials they do use may mitigate potential financial effects because of supply disruptions, volatile input prices, and reputational and regulatory risks.

Management of the Legal & Regulatory Environment

Management of the Legal & Regulatory Environment
The Biofuels industry is dependent on government policies and regulations that create market demand and incentivise supply with tax breaks and other support for feedstock production. The Biofuels industry supports some regulations and policies related to renewable fuel policy, production tax credits and feedstock production. While regulatory support can result in positive short-term gains by supporting the biofuels market, the potential long-term adverse environmental impacts from feedstock and biofuels production may result in a reversal of beneficial policies, leading to a more uncertain regulatory environment. Consequently, biofuels entities may benefit from developing clear strategies for engaging regulators that are aligned with long-term sustainable business outcomes and that account for environmental externalities.

Critical Incident Risk Management

Operational Safety, Emergency Preparedness & Response
Biofuel production presents operational safety hazards because of the presence of flammable and explosive substances, high temperatures, and pressurised equipment. Process safety incidents can damage facilities, injure workers, and affect the local environment and communities. Although the frequency of accidents in the industry is relatively low, when they do take place, the outcomes may be severe, with significant effects on financial performance. Damaged facilities may be inoperable for extended periods, resulting in lost revenues and large capital expenditures for repairs. Entities perceived to be at a greater risk of process safety incidents may have a higher cost of capital, while workforce injuries could result in regulatory penalties and litigation. Conversely, entities with a strong safety culture and operational safety oversight may detect and respond more effectively to such incidents, mitigating potential financial risks and improving operational efficiency.

Relevant Issues for both Industries (9 of 26)

Select up to 4 industries