Industry Comparison

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Current language: English (2023)

You are viewing information about the following Industries:

  • 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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  • Home Builders Home Builders industry entities build new homes and develop residential communities. Development efforts generally include land acquisition, site preparation, home construction and home sales. The majority of the industry focuses on the development and sale of single-family homes, which are typically part of entity-designed residential communities. A smaller segment develops town homes, condominiums, multi-family housing and mixed-use development. Many entities in the industry offer financing services to individual homebuyers. The industry is fragmented, since many developers of all sizes exist, which vary in entity structure and geographical focus. Listed entities tend to be significantly larger and more integrated than the numerous privately held home builders.
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Relevant Issues for both Industries (6 of 26)

Why are some issues greyed out? The SASB Standards vary by industry based on the different sustainability-related risks and opportunities within an industry. The issues in grey were not identified during the standard-setting process as the most likely to be useful to investors, so they are not included in the Standard. Over time, as the ISSB continues to receive market feedback, some issues may be added or removed from the Standard. Each company determines which sustainability-related risks and opportunities are relevant to its business. The Standard is designed for the typical company in an industry, but individual companies may choose to report on different sustainability-related risks and opportunities based on their unique business model.

Disclosure Topics

What is the relationship between General Issue Category and Disclosure Topics? The General Issue Category is an industry-agnostic version of the Disclosure Topics that appear in each SASB Standard. Disclosure topics represent the industry-specific impacts of General Issue Categories. The industry-specific Disclosure Topics ensure each SASB Standard is tailored to the industry, while the General Issue Categories enable comparability across industries. For example, Health & Nutrition is a disclosure topic in the Non-Alcoholic Beverages industry, representing an industry-specific measure of the general issue of Customer Welfare. The issue of Customer Welfare, however, manifests as the Counterfeit Drugs disclosure topic in the Biotechnology & Pharmaceuticals industry.
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    • Energy Management The category addresses environmental impacts associated with energy consumption. It addresses the company’s management of energy in manufacturing and/or for provision of products and services derived from utility providers (grid energy) not owned or controlled by the company. More specifically, it includes management of energy efficiency and intensity, energy mix, as well as grid reliance. Upstream (e.g., suppliers) and downstream (e.g., product use) energy use is not included in the scope.
      • 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.
    • Ecological Impacts The category addresses management of the company’s impacts on ecosystems and biodiversity through activities including, but not limited to, land use for exploration, natural resource extraction, and cultivation, as well as project development, construction, and siting. The impacts include, but are not limited to, biodiversity loss, habitat destruction, and deforestation at all stages – planning, land acquisition, permitting, development, operations, and site remediation. The category does not cover impacts of climate change on ecosystems and biodiversity.
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    • 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.
    • Business Model Resilience The category addresses an industry’s capacity to manage risks and opportunities associated with incorporating social, environmental, and political transitions into long-term business model planning. This includes responsiveness to the transition to a low-carbon and climate-constrained economy, as well as growth and creation of new markets among unserved and underserved socio-economic populations. The category highlights industries in which evolving environmental and social realities may challenge companies to fundamentally adapt or may put their business models at risk.
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    • 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.
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    • Energy Management The category addresses environmental impacts associated with energy consumption. It addresses the company’s management of energy in manufacturing and/or for provision of products and services derived from utility providers (grid energy) not owned or controlled by the company. More specifically, it includes management of energy efficiency and intensity, energy mix, as well as grid reliance. Upstream (e.g., suppliers) and downstream (e.g., product use) energy use is not included in the scope.
      None
    • Ecological Impacts The category addresses management of the company’s impacts on ecosystems and biodiversity through activities including, but not limited to, land use for exploration, natural resource extraction, and cultivation, as well as project development, construction, and siting. The impacts include, but are not limited to, biodiversity loss, habitat destruction, and deforestation at all stages – planning, land acquisition, permitting, development, operations, and site remediation. The category does not cover impacts of climate change on ecosystems and biodiversity.
      • Land Use & Ecological Impacts Home builders face risks associated with the ecological impacts of development activities. Developments often take place on previously undeveloped land, and entities must manage the ecosystem disruption of construction activities as well as the regulations and permitting processes that accompany ‘greenfield’ land development. Regardless of the siting decisions entities make, industry development activities generally carry risks related to land and water contamination, mismanagement of waste, and excessive strain on water resources during the construction and use phases. Violation of environmental regulations can result in costly fines and delays that decrease financial returns while potentially harming brand value. Entities with repeated violations or a history of negative ecological impacts may find seeking permits and approvals from local communities for new developments difficult, thereby decreasing future revenue and market share. Entities that concentrate development efforts in water-stressed regions may witness challenges to permitting approvals and increased land or home value depreciation because of water shortage concerns. Environmental quality control procedures, ‘smart growth’ strategies (including a focus on redevelopment sites) and conservation strategies may help ensure compliance with environmental laws, and therefore mitigate financial risks, while improving future growth opportunities.
    • 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 Home construction requires a significant amount of manual labour from entity employees and subcontractors. Site excavation and home construction activities are physically demanding, exposing workers to risks from falls and heavy machinery and resulting in relatively high injury and fatality rates. Worker injuries and fatalities have internal and external costs that may significantly affect operations and an entity’s social licence to operate. Effects include fines, penalties, workers’ compensation costs, regulatory compliance costs from more stringent oversight, higher insurance premiums, and project delays and downtime. To avoid such costs, entities should foster a culture of safety with proactive safety management plans, employee and contractor training, and regular audits.
    • 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.
      • Design for Resource Efficiency Residential buildings, when occupied, consume significant amounts of energy and water. Entities in the Home Builders industry can improve home resource efficiency through sustainable design practices and choice of materials. Energy-saving products and techniques such as designing homes for efficient heating and cooling may reduce energy dependence, whether it comes from the electric grid or onsite fuel combustion. Intended to improve home resource efficiency, these measures may decrease home ownership costs through lower utility bills. Water-saving features such as low-flow faucets alleviate stress in water-scarce communities, while likely also reducing homeowner costs. Homebuyer awareness of energy and water efficiency creates an opportunity for entities to increase target market demand, thereby increasing revenue or margins. Effectively applying resource efficiency design principles in a cost-effective manner may be a competitive advantage, especially when entities are successful in systematically educating customers on the long-term benefits of these homes.
      • Community Impacts of New Developments Community and urban planning provide home builders with the opportunity to thoughtfully design new residential developments in ways that benefits customers as well as the surrounding community. New home development can bring economic growth and workforce opportunities while moderating cost-of-living increases, and it can provide communities with safe and vibrant neighbourhoods. Entities may strive to improve communities’ environmental and social impacts by providing access to public transportation or not overburdening existing transportation or utilities infrastructure, providing access to green spaces, developing mixed-use spaces, and creating more walkable communities. These strategies may increase the overall demand for and selling prices of homes as well as reduce the risks related to permitting and community or stakeholder opposition related to current or future developments. When entities use development strategies that inadequately integrate their new communities into the pre-existing surrounding communities, they may risk insufficient sales prices, excessive costs related to infrastructure needs and assessments, permitting delays or reduced community support for future developments.
    • Business Model Resilience The category addresses an industry’s capacity to manage risks and opportunities associated with incorporating social, environmental, and political transitions into long-term business model planning. This includes responsiveness to the transition to a low-carbon and climate-constrained economy, as well as growth and creation of new markets among unserved and underserved socio-economic populations. The category highlights industries in which evolving environmental and social realities may challenge companies to fundamentally adapt or may put their business models at risk.
      • Climate Change Adaptation The impacts of climate change, including extreme weather events and changing climate patterns, may affect the markets entities select to develop homes and residential communities. Entities with business models that incorporate ongoing assessments of climate change risks, and adapt to such risks, are likely to grow entity value more effectively over the long term, partially through reductions in risk. More specifically, strategies focused on home development activities in floodplains and coastal regions exposed to extreme weather events, such as flooding, have increased the need to adapt to climate change, especially considering long-term challenges like flood insurance rates, the financial stability of government-subsidised flood insurance programs, permitting approvals and financing stipulations. Rising climate risks may translate into reduced long-term demand, land value depreciation and concerns over understated long-term costs of home ownership. Additionally, entities that build developments in water-stressed regions risk losing land value and may have problems getting permitting approvals. The active assessment of climate change risks and a holistic view of long-term homebuyer demand may enable entities to successfully adapt to such risks.
    • 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.
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