Industry Comparison

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Current language: English (2023)

You are viewing information about the following Industries:

  • Solar Technology & Project Developers Solar Technology & Project Developers industry entities manufacture solar energy equipment, including solar photovoltaic (PV) modules, polysilicon feedstock, solar thermal electricity-generation systems, solar inverters and other related components. Entities also may develop, build and manage solar energy projects and offer financing or maintenance services to customers. The industry uses two primary technologies: PV and concentrated solar power (CSP). Within solar PV, two main technologies exist: crystalline silicon-based solar and thin-film solar, which includes panels made using copper indium gallium selenide and cadmium telluride. The primary markets for solar panels are residential, non-residential (commercial and industrial) and utility-scale projects. Entities in the industry operate globally.
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  • Hotels & Lodging Hotels and lodging industry entities provide overnight accommodation, including hotels, motels and inns. This competitive industry is comprised primarily of large hotel chains in which customers base purchase decisions on a wide range of factors including quality and consistency of services, availability of locations, price, and loyalty programme offers. Entities often are structured in one or more of the following ways: direct revenue from hotel services, including room rental and food and beverage sales; management and franchise services with fee revenue from property management; and vacation residential ownership with revenue from sales of residential units.
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Relevant Issues for both Industries (8 of 26)

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

Disclosure Topics

What is the relationship between General Issue Category and Disclosure Topics? The General Issue Category is an industry-agnostic version of the Disclosure Topics that appear in each SASB Standard. Disclosure topics represent the industry-specific impacts of General Issue Categories. The industry-specific Disclosure Topics ensure each SASB Standard is tailored to the industry, while the General Issue Categories enable comparability across industries. For example, Health & Nutrition is a disclosure topic in the Non-Alcoholic Beverages industry, representing an industry-specific measure of the general issue of Customer Welfare. The issue of Customer Welfare, however, manifests as the Counterfeit Drugs disclosure topic in the Biotechnology & Pharmaceuticals industry.
  • Solar Technology & Project Developers Remove
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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 in Manufacturing Solar panel manufacturing typically uses electrical energy purchased from the grid. Energy can account for a considerable share of the total cost of production. Considering rising energy costs and regulatory uncertainty surrounding the future of fossil-based energy, entities that diversify their energy sources may manage the associated risks and maintain a reliable energy supply more effectively. Entities that minimise energy use through effective energy management may reduce costs and gain a competitive advantage through operational efficiency and competitive pricing of products. Competitively priced products are particularly important given the intense price competition within the solar technology industry.
    • 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 Solar photovoltaic panel manufacturing can be water-intensive, and ultra-pure water is a critical input in some processes. The manufacturing process also may generate wastewater, which must be treated before disposal or reuse, and therefore may result in incremental operating costs and capital expenditures. Furthermore, depending on the location, solar equipment manufacturing facilities may face water scarcity and related cost increases or operational disruptions. Water resource use may generate tension with local water users and associated risks, potentially disrupting manufacturing operations and adversely affecting brand value. To mitigate water supply and treatment risks, entities may adopt various strategies such as recycling process water, improving production techniques to lower water intensity, and improving water treatment systems.
    • Waste & Hazardous Materials Management The category addresses environmental issues associated with hazardous and non-hazardous waste generated by companies. It addresses a company’s management of solid wastes in manufacturing, agriculture, and other industrial processes. It covers treatment, handling, storage, disposal, and regulatory compliance. The category does not cover emissions to air or wastewater nor does it cover waste from end-of-life of products, which are addressed in separate categories.
      • Hazardous Waste Management Solar panel manufacturing may use hazardous substances that can cause adverse health and environmental impacts if not properly managed. Common thin-film technologies use materials including cadmium, gallium arsenide and copper indium gallium (di)selenide, which require careful handling during manufacturing and disposal. The handling and disposal of hazardous wastes produced during manufacturing may result in increased operating costs, capital expenditures, and in some instances regulatory costs. As such, effective management of hazardous materials, including through reduction, reuse, recycling, and safe storage and disposal, may reduce operating costs and mitigate potential regulatory penalties or reputational damage.
    • 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.
      • Ecological Impacts of Project Development Many large, publicly listed solar technology entities conduct project development, including the evaluation and acquisition of land rights, site permitting, and engagement with stakeholders. Successful development may be contingent on securing environmental permitting approval and permission from local governments and communities. Siting of medium or large solar installations in ecologically sensitive areas, including endangered species habitats, may render environmental permitting more difficult and costly. Project development also may be affected by local land-use laws and community opposition to projects because of their land footprint or concerns over local water resource impacts. These factors may slow or disrupt the development process, possibly resulting in higher costs, lost revenues or project delays. Entities with robust strategies for environmental impact assessment and mitigation may reduce the risk of project delays, increasing the likelihood of timely project completion.
    • Labour Practices The category addresses the company’s ability to uphold commonly accepted labour standards in the workplace, including compliance with labour laws and internationally accepted norms and standards. This includes, but is not limited to, ensuring basic human rights related to child labour, forced or bonded labour, exploitative labour, fair wages and overtime pay, and other basic workers’ rights. It also includes minimum wage policies and provision of benefits, which may influence how a workforce is attracted, retained, and motivated. The category further addresses a company’s relationship with organized labour and freedom of association.
      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.
      • Management of Energy Infrastructure Integration & Related Regulations Entities in the industry have faced challenges in establishing solar energy as a cost-competitive means of energy production and GHG reduction, and they have encountered difficulty in capturing a greater market share of global energy generation. To promote greater adoption of solar, the industry may benefit by preventing systemic disruptions to the existing energy infrastructure and essential energy services. Entities are innovating to overcome the technical challenges of increasing solar integration with the grid. They also are engaging regulatory agencies and policymakers to reduce regulatory barriers to solar energy adoption, many of which are emerging because of concerns regarding increasing overall grid electricity costs and grid disruptions. Solar entities are investing in innovative technologies to reduce hardware and installation costs, and they are pursuing business-model innovation to reduce the cost of capital and facilitate the purchase of solar energy systems. Solar technology entities may improve their competitiveness through deploying one or more of these strategies successfully to ensure their ability to scale over the long term.
      • Product End-of-life Management Solar panels may contain hazardous substances as well as reusable materials of high economic value. Given the rapid expansion of solar energy globally, increasing volumes of solar panels are expected to reach the end of their useful life in the medium term. In some regions, manufacturers may be required by law to take financial responsibility for their products at the end-of-life stage, including collection and recycling. Product take-back, recycling and disposal may result in higher upfront investments or capital expenditures for entities. However, as more modules reach the end of their useful life and this issue receives more legislative attention, entities may differentiate themselves through offering product take-back and recycling services. This may increase revenues as well as result in lower long-term costs by reusing recovered materials in manufacturing processes.
    • 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 Solar technology entities typically source numerous materials including polysilicon, metals, glass and electrical components. Entities additionally use specific materials critical to solar panel and module manufacturing. Limited global resources of these critical materials, as well as their concentration in countries that may have relatively limited governance and regulatory structures or may be subject to geopolitical tensions, expose entities to the risk of supply chain disruptions and input-price increases or volatility. Entities may mitigate associated risks by ensuring supply chain transparency, sourcing materials from reliable suppliers or regions that have minimal environmental or social risks and supporting research into alternative inputs.
    • 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
  • Hotels & Lodging Remove
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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 Hotel buildings require a significant amount of energy to operate, which is a substantial portion of hotel operating expenses. The industry purchases the majority of its electricity commercially. This purchased electricity indirectly results in greenhouse gas (GHG) emissions, which is a significant contributor to climate change. Entities in the industry are implementing energy management best practices to reduce operating expenses and environmental impacts and to improve their brand value with guests, who increasingly are concerned about environmental sustainability.
    • 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 Hotel buildings require a relatively large amount of water resources to operate. Although water is not the industry’s greatest operating cost, reduced water availability or significant price increases could affect financial results. This effect may be particularly acute in water-stressed regions because of supply constraints. Entities in the industry are implementing water management best practices to reduce operating expenses and environmental impacts and to improve their brand value with guests, who increasingly are concerned about environmental sustainability.
    • Waste & Hazardous Materials Management The category addresses environmental issues associated with hazardous and non-hazardous waste generated by companies. It addresses a company’s management of solid wastes in manufacturing, agriculture, and other industrial processes. It covers treatment, handling, storage, disposal, and regulatory compliance. The category does not cover emissions to air or wastewater nor does it cover waste from end-of-life of products, which are addressed in separate categories.
      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.
      • Ecological Impacts Healthy ecosystems are linked with the economic and financial performance of local communities and businesses. The influx of tourists and the resulting waste generated by hotels may present risks to sensitive ecosystems such as coral reefs and nature preserves. Poor environmental protection practices may preclude hotels from obtaining new construction licences in these sensitive areas and could, in the long term, diminish natural attractions for tourists that generate revenue for communities and hotels. In contrast, environmental protection may make travel destinations more attractive and increase demand.
    • Labour Practices The category addresses the company’s ability to uphold commonly accepted labour standards in the workplace, including compliance with labour laws and internationally accepted norms and standards. This includes, but is not limited to, ensuring basic human rights related to child labour, forced or bonded labour, exploitative labour, fair wages and overtime pay, and other basic workers’ rights. It also includes minimum wage policies and provision of benefits, which may influence how a workforce is attracted, retained, and motivated. The category further addresses a company’s relationship with organized labour and freedom of association.
      • Labour Practices The Hotels & Lodging industry is reliant upon labour to operate large facilities. A service-oriented workforce that provides guests with a pleasant stay is an important value driver for hotel entities. This, combined with labour force dynamics, may create low job satisfaction that can result in high turnover and potential lawsuits and contribute to increased expenses for hotel operators. Hotels that foster anti-discriminatory practices and ensure fair wages may improve worker satisfaction and reduce turnover.
    • Product Design & Lifecycle Management The category addresses incorporation of environmental, social, and governance (ESG) considerations in characteristics of products and services provided or sold by the company. It includes, but is not limited to, managing the lifecycle impacts of products and services, such as those related to packaging, distribution, use-phase resource intensity, and other environmental and social externalities that may occur during their use-phase or at the end of life. The category captures a company’s ability to address customer and societal demand for more sustainable products and services as well as to meet evolving environmental and social regulation. It does not address direct environmental or social impacts of the company’s operations nor does it address health and safety risks to consumers from product use, which are covered in other categories.
      None
    • 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).
      • Climate Change Adaptation Hotels operating in climate change-exposed areas may be impacted by physical climate risks including inclement weather and flooding. Inclement weather may damage property and disrupt operations, thereby reducing asset values and revenues. In addition, hotels may face higher insurance premiums for buildings located in coastal regions or may be unable to insure their properties. Hotel operators will likely need to adapt to shifting climate trends such as rising sea levels, hurricanes, and flooding in order to maintain their climate-exposed revenue-generating properties.

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