Industry Comparison

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Current language: English (2023)

You are viewing information about the following Industries:

  • Hardware Hardware industry entities design and sell technology hardware products, including computers, consumer electronics, communications equipment, storage devices, components and peripherals. Many entities in the industry rely heavily upon the Electronic Manufacturing Services & Original Design Manufacturing (EMS & ODM) industry for manufacturing services. The industry is expected to continue to grow as technology use rapidly increases, especially among emerging market consumers.
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  • 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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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.

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.
  • Hardware 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.
      None
    • Water & Wastewater Management The category addresses a company’s water use, water consumption, wastewater generation, and other impacts of operations on water resources, which may be influenced by regional differences in the availability and quality of and competition for water resources. More specifically, it addresses management strategies including, but not limited to, water efficiency, intensity, and recycling. Lastly, the category also addresses management of wastewater treatment and discharge, including groundwater and aquifer pollution.
      None
    • 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.
      None
    • Data Security The category addresses management of risks related to collection, retention, and use of sensitive, confidential, and/or proprietary customer or user data. It includes social issues that may arise from incidents such as data breaches in which personally identifiable information (PII) and other user or customer data may be exposed. It addresses a company’s strategy, policies, and practices related to IT infrastructure, staff training, record keeping, cooperation with law enforcement, and other mechanisms used to ensure security of customer or user data.
      • Product Security The hardware products and related software offered by entities in the Hardware industry may have vulnerabilities that expose consumers to data security threats. Therefore, hardware manufacturers must help ensure user data security. Such vulnerabilities may occur at any stage of a product lifecycle, including product design, the manufacturing supply chain, product distribution and the product’s use-phase. Entities in the industry unable to identify vulnerabilities may risk exposing consumer data to security threats and potentially eroding the trust of their customer base. Cybersecurity threats create both risks and opportunities for the Hardware industry, as effective product security may be a source of competitive advantage for entities, potentially increasing their sales and market share. Additionally, user concerns about data security and related government actions may also serve as revenue-generating opportunities for securing government contracts and providing security products.
    • Employee Engagement, Diversity & Inclusion The category addresses a company’s ability to ensure that its culture and hiring and promotion practices embrace the building of a diverse and inclusive workforce that reflects the makeup of local talent pools and its customer base. It addresses the issues of discriminatory practices on the bases of race, gender, ethnicity, religion, sexual orientation, and other factors.
      • Employee Diversity & Inclusion Greater workforce diversity is important for innovation since it helps entities understand the needs of a diverse and global customer base, which results in the ability to design desirable products and communicate with customers effectively. Entities unable to attract and retain diverse talent may risk losing market share to competitors that successfully employ a staff capable of recognising the needs of diverse populations and capturing demand from segments of the population that have been traditionally overlooked. Furthermore, entities perceived as being more representative of a diverse, global customer base may increase brand loyalty which also may be a source of competitive advantage. Entities successful in recruiting and retaining a diverse and inclusive workforce also may achieve lower employee turnover rates, resulting in cost savings.
    • 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 Lifecycle Management Entities in the Hardware industry face increasing challenges associated with environmental and social externalities attributed to product manufacturing, transport, use and disposal. Rapid obsolescence of hardware products may worsen these externalities. Entities are designing more products with the entire lifecycle in mind. Specific considerations include energy efficiency of products, hazardous material inputs, and designing for and facilitating safe end-of-life disposal and recycling. Entities that prioritise designing and manufacturing products with improved environmental and social impacts may avoid costs associated with externalities, and they may be more likely to grow consumer demand and market share, while eliminating potentially harmful materials. Furthermore, entities that minimise environmental and social externalities of products may be less exposed to increasing regulation and costs, such as those related to extended producer responsibility.
    • 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.
      • Supply Chain Management Entities in the Hardware industry commonly have relatively narrow profit margins and remain competitive by relying on complex, global supply chains and outsourced production to electronics manufacturing services (EMS) entities. Because entities in the industry typically contract with suppliers in countries with lower direct costs, entities often manufacture products in countries that have limited labour regulations or enforcement protecting workers. Entities in the industry may have limited direct control over social and environmental standards in production, making management of this issue difficult. This dynamic may increase an entity’s exposure to reputational risks and impacts on short- and long-term costs and sales. Such effects may arise from increasing regulation and enforcement in response to high-profile safety or labour incidents, or through a shift in demand away from entities associated with such incidents. Entities that actively manage the impacts generated by the supply chain using supplier standards, monitoring and engagement may better protect 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.
      • Materials Sourcing Entities in the Hardware industry rely on numerous critical materials as important inputs for finished products. Many of these inputs have few or no available substitutes and often are sourced from only a few countries, many of which may be subject to geopolitical uncertainty. Other sustainability impacts related to climate change, land use, resource scarcity and conflict in regions where the industry’s supply chain operates are also increasingly shaping the industry’s ability to source materials. Additionally, increased competition for these materials because of growing global demand from other sectors may result in price increases and supply risks. The ability of entities to manage potential material shortages, supply disruptions, price volatility and reputational risks is made more difficult by the practice of commonly sourcing materials from supply chains that may lack transparency. Failure to effectively manage sourcing may constrain access to necessary materials, reduce margins, impair revenue growth or increase costs of capital.
  • Solar Technology & Project Developers Remove
    Access Standard
    • 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.
    • Data Security The category addresses management of risks related to collection, retention, and use of sensitive, confidential, and/or proprietary customer or user data. It includes social issues that may arise from incidents such as data breaches in which personally identifiable information (PII) and other user or customer data may be exposed. It addresses a company’s strategy, policies, and practices related to IT infrastructure, staff training, record keeping, cooperation with law enforcement, and other mechanisms used to ensure security of customer or user data.
      None
    • Employee Engagement, Diversity & Inclusion The category addresses a company’s ability to ensure that its culture and hiring and promotion practices embrace the building of a diverse and inclusive workforce that reflects the makeup of local talent pools and its customer base. It addresses the issues of discriminatory practices on the bases of race, gender, ethnicity, religion, sexual orientation, and other factors.
      None
    • Product Design & Lifecycle Management The category addresses incorporation of environmental, social, and governance (ESG) considerations in characteristics of products and services provided or sold by the company. It includes, but is not limited to, managing the lifecycle impacts of products and services, such as those related to packaging, distribution, use-phase resource intensity, and other environmental and social externalities that may occur during their use-phase or at the end of life. The category captures a company’s ability to address customer and societal demand for more sustainable products and services as well as to meet evolving environmental and social regulation. It does not address direct environmental or social impacts of the company’s operations nor does it address health and safety risks to consumers from product use, which are covered in other categories.
      • 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.
    • 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 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.

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