Industry Comparison

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Current language: English (2023)

You are viewing information about the following Industries:

  • Air Freight & Logistics Air Freight & Logistics industry entities provide freight services and transportation logistics to both businesses and individuals. The industry consists of three main segments: air freight transportation, post and courier services, and transportation logistics services. Entities in the industry earn revenue from one or more of the segments and range from non-asset-based to asset-heavy. Transportation logistics services include contracting with road, rail, marine and air freight entities to select and hire appropriate transportation. Services also may include customs brokerage, distribution management, vendor consolidation, cargo insurance, purchase order management and customised logistics information. The industry is crucial to global trade, granting it a degree of demand stability.
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  • Coal Operations The Coal Operations industry includes entities that mine coal and those that manufacture coal products. Mining activity covers both underground and surface mining, and thermal and metallurgical coal.
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Relevant Issues for both Industries (11 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.
  • Air Freight & Logistics Remove
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    • GHG Emissions The category addresses direct (Scope 1) greenhouse gas (GHG) emissions that a company generates through its operations. This includes GHG emissions from stationary (e.g., factories, power plants) and mobile sources (e.g., trucks, delivery vehicles, planes), whether a result of combustion of fuel or non-combusted direct releases during activities such as natural resource extraction, power generation, land use, or biogenic processes. The category further includes management of regulatory risks, environmental compliance, and reputational risks and opportunities, as they related to direct GHG emissions. The seven GHGs covered under the Kyoto Protocol are included within the category—carbon dioxide (CO2), methane (CH4), nitrous oxide (N2O), hydrofluorocarbons (HFCs), perfluorocarbons (PFCs), sulfur hexafluoride (SF6), and nitrogen trifluoride (NF3).
      • Greenhouse Gas Emissions Air Freight & Logistics industry entities generate direct greenhouse gas (GHG) emissions that contribute to climate change. Emissions are generated from fuel combustion by both air and road freight operations. Given the altitude of the emissions from jet fuel, air freight makes an especially potent contribution to climate change. Management of GHG emissions is likely to affect air freight and logistics entities’ cost structure over time because emissions are tied directly to fuel use, and thus to operating expenses. Fuel efficiency and alternative fuels usage may reduce fuel costs or limit exposure to volatile fuel pricing, future regulatory costs and other consequences of GHG emissions. While newer aircraft and trucks are generally more fuel efficient, existing fleets may be retrofitted. Capital investments in more fuel-efficient aeroplanes or vehicles and emerging fuel-management technology may reduce fuel expenses and improve profitability. These investments also may help entities capture market share of customers seeking low-carbon shipping solutions.
    • 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 Entities in the Air Freight & Logistics industry generate air pollutants that may threaten human health. The industry’s primary air emissions include sulphur oxides (SOx), nitrogen oxides (NOx) and particulate matter (PM), which negatively affect local air quality. As regulators debate the most efficient mechanisms to reduce local air pollution from the industry, entities may be forced to increase operating costs or make investments to modernise their fleets because of regulatory pressure, customer demand and rising fuel costs. Use of more expensive alternative fuels and mechanisms that filter emissions prior to release into the atmosphere also may affect an entity’s cost structure, requiring upfront costs but decreasing regulatory exposure over the long term.
    • 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.
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    • 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.
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    • 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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    • Human Rights & Community Relations The category addresses management of the relationship between businesses and the communities in which they operate, including, but not limited to, management of direct and indirect impacts on core human rights and the treatment of indigenous peoples. More specifically, such management may cover socio-economic community impacts, community engagement, environmental justice, cultivation of local workforces, impact on local businesses, license to operate, and environmental/social impact assessments. The category does not include environmental impacts such as air pollution or waste which, although they may impact the health and safety of members of local communities, are addressed in separate categories.
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    • 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 Air Freight & Logistic industry’s reliance on independent contractors, mainly for courier driving, has come under increasing legal and regulatory scrutiny. The applicable jurisdictional laws and regulations that protect employees may not cover independent contractors, and entities may face regulatory sanctions for misclassifying employees as independent contractors. Entities also may face legal actions from employee and contractor claims regarding wage payments, benefits and working conditions. Legal actions also may negatively affect an entity’s brand value and ability to hire and retain employees, reducing operational efficiency and increasing turnover costs.
    • 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 The Air Freight & Logistics industry may expose employees to dangerous working conditions, including accidents resulting from mechanical failure or human error. Additionally, moving packages manually is a physical process that requires special training to minimise injury. Although the fatal occupational injury rate for trucking workers is higher than average, worker safety issues in aviation are regulated strictly, which raises the risk of fines or penalties when an incident occurs. Health and safety incidents may result in work stoppages and a range of costs, from medical expenses to workers’ compensation. Such incidents also may reduce productivity, and thus revenues, if employees believe their safety and well-being are being neglected. Finally, entities with poor safety records also may face increased insurance premiums and higher costs of capital, as well as reputational damage that may reduce revenue and market share. An entity may mitigate these effects by providing adequate employee protection and training, ensuring mechanical equipment is functioning safely, and establishing a culture of workplace safety.
    • 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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    • 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 Many entities in the Air Freight & Logistics industry contract with large, complex networks of asset-based third-party providers to provide freight transportation services to their customers. Contracting is common among entities providing freight forwarding, logistics, brokerage and intermodal services. These contractors operate across all modes of transport such as motor carriers, railroads, air freight and ocean carriers. Entities must manage contractor relationships to ensure contractor actions that may result in environmental or social impacts do not result in material adverse effects on their own operations, such as decreased brand value. At the same time, entities that offer low-carbon logistics solutions may capture market share from customers seeking to reduce the carbon footprint of their shipments.
    • 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.
      • Accident & Safety Management All modes of transportation pose safety risks. In some cases, mechanical failure or human error may result in accidents with significant environmental or social consequences, including regulatory action and lawsuits from impacted communities or customers. Although the stringency of regulatory requirements may vary by the region of operation, entities that maintain the highest safety standards throughout their global operations may minimise the risks of safety incidents that affect their reputation and profitability.
  • Coal Operations Remove
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    • GHG Emissions The category addresses direct (Scope 1) greenhouse gas (GHG) emissions that a company generates through its operations. This includes GHG emissions from stationary (e.g., factories, power plants) and mobile sources (e.g., trucks, delivery vehicles, planes), whether a result of combustion of fuel or non-combusted direct releases during activities such as natural resource extraction, power generation, land use, or biogenic processes. The category further includes management of regulatory risks, environmental compliance, and reputational risks and opportunities, as they related to direct GHG emissions. The seven GHGs covered under the Kyoto Protocol are included within the category—carbon dioxide (CO2), methane (CH4), nitrous oxide (N2O), hydrofluorocarbons (HFCs), perfluorocarbons (PFCs), sulfur hexafluoride (SF6), and nitrogen trifluoride (NF3).
      • Greenhouse Gas Emissions Coal operations are energy intensive and generate significant direct greenhouse gas (GHG) emissions, including carbon dioxide from fuel use and methane released from coal beds during mining and post-mining activities. Regulatory efforts to reduce GHG emissions in response to the risks posed by climate change may result in higher operating and capital expenditures based on the magnitude of their direct emissions. Operational efficiencies can be achieved through the cost-effective reduction of GHG emissions. Such efficiencies can mitigate the potential financial impact of increased fuel costs from regulations that limit—or put a price on—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.
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    • 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 Coal operations have an impact on both the quality and quantity of local water resources. Coal operations are water intensive. The use of water in coal washing to remove sulphur, cool drilling equipment and transport coal in slurry pipelines can impact resources. The severity of these risks can vary depending on the region’s water availability and the regulatory environment. Reducing water use and contamination also could create operational efficiencies for entities and lower their operating costs. Wastewater treatment and discharge often is regulated by jurisdictional authorities. Violating limits on selenium, sulphate and dissolved solids could affect coal operations entities through significant penalties, compliance costs, delays in production or higher costs related to mine closure.
    • 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.
      • Waste Management The Coal Operations industry generates large volumes of mineral and non-mineral waste, including process refuse, liquid coal waste, and solid rock and clay waste, which may contain toxic elements such as mercury, arsenic or cadmium. Waste produced during coal mining and processing operations can, depending on its type, be treated, discarded, or stored off- or on-site, in impoundments or disused mine pits. Improper disposal or storage of hazardous materials or mining waste can present significant long-term threats to human health and ecosystems through potential contamination of groundwater or surface water used for drinking or agriculture, posing operational and regulatory challenges for entities. Entities that reduce waste streams, effectively manage risks related to waste containing heavy metals and maintain rigorous hazardous waste disposal practices may reduce regulatory and litigation risks, remediation liabilities and operating costs.
    • 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.
      • Biodiversity Impacts Coal operations can have a range of impacts on biodiversity. Surface mining and mountaintop removal can alter the landscape, removing vegetation and wildlife habitats. A particularly concerning effect of coal operations is acid rock drainage, in which surface and shallow subsurface water encounters coal mining overburden, contaminating the water with heavy metals and rendering it highly acidic, with harmful effects on humans, animals and vegetation. Biodiversity impacts of coal operations can affect the valuation of reserves and create operational risks. Because of increasing interest in the protection of ecosystems, the environmental characteristics of the land where reserves are located may lead to higher extraction costs. Entities might also face regulatory or reputational barriers to accessing reserves in ecologically sensitive areas, such as new protection status afforded to areas where reserves are located. Coal operations entities face regulatory risks related to reclamation after a mine is decommissioned, in accordance with applicable regulatory requirements to restore mined property according to a prior, approved reclamation plan. Material costs may arise from removing or covering refuse piles, fulfilling water treatment obligations and dismantling infrastructure at decommissioning. Furthermore, coal operations are subject to laws protecting endangered species. Entities with an effective environmental management plan for each stage of the project lifecycle may minimise their compliance costs and legal liabilities, face less resistance in developing new mines, avert delays in project completion, and avoid difficulties in obtaining permits, accessing reserves and completing projects.
    • Human Rights & Community Relations The category addresses management of the relationship between businesses and the communities in which they operate, including, but not limited to, management of direct and indirect impacts on core human rights and the treatment of indigenous peoples. More specifically, such management may cover socio-economic community impacts, community engagement, environmental justice, cultivation of local workforces, impact on local businesses, license to operate, and environmental/social impact assessments. The category does not include environmental impacts such as air pollution or waste which, although they may impact the health and safety of members of local communities, are addressed in separate categories.
      • Rights of Indigenous Peoples Entities in the Coal Operations industry can operate and hold assets in areas occupied by indigenous peoples. Entities perceived as contributing to human rights violations or failing to account for indigenous peoples’ rights may be affected by protests, riots or suspension of permits. These entities could face substantial costs related to compensation or settlement payments, and write-downs in the value of their reserves in such areas. In the absence of applicable jurisdictional laws or regulations to address such cases, several international instruments have emerged to provide guidelines for entities. These instruments include obtaining the free, prior and informed consent of indigenous peoples for decisions that affect them. Several countries have implemented specific laws protecting indigenous peoples’ rights, creating increasing regulatory risk for entities that violate those rights.
      • Community Relations Coal operations take place over many years and can have a wide range of adverse effects on communities. Community rights and interests may be affected by the environmental and social impacts of operations, air emissions, waste generation, wastewater discharges and decommissioning activities. Entities often need support from local communities to obtain permits and leases and conduct their activities without disruptions. The expected value of reserves could be affected if the community interferes or lobbies its government to interfere with the rights of a coal entity to extract those reserves. In addition to community concerns about the direct impacts of projects, the presence of coal mining activities may create associated socioeconomic concerns related to education, health and livelihoods. Coal entities that engage in rent-seeking and exploiting a community’s resources without providing proportional socioeconomic benefits in return may be exposed to actions by host governments and communities that restrict their activities or impose additional costs. Entities in the extractives industries can adopt various community engagement strategies in their global operations to manage risks and opportunities associated with community rights and interests, such as integrating community engagement into each phase of the project cycle. Entities that adopt a ‘shared value’ approach may be able to provide significant socioeconomic benefits to communities and allow them to operate profitably.
    • 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 Relations Working conditions related to coal operations are usually physically demanding and hazardous. Labour unions play an important role in representing workers’ interests and managing collective bargaining for better wages and working conditions. This makes the management of labour relations critical, since conflict with workers can result in labour strikes and other disruptions that can delay or stop production, leading to lost revenue and reputational damage. Persistent labour disputes can adversely affect the long-term profitability of the entity.
    • 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 Safety is critical to coal mining operations because of the hazardous working conditions involved. Fatalities and injuries can result from the many hazards associated with the industry, including accidents, cave-ins, explosions and flooding. Because of these hazards, the industry is characterised by higher-than-average mortality and injury rates. Coal miners are also susceptible to long-term health risks such as chronic lung disease as well as mental health problems. Some jurisdictional health and safety laws protect coal mining workers and may provide compensation for work-related chronic illnesses that can impose additional costs on entities or result in regulatory penalties. An entity’s ability to protect employee health and safety, and to create a culture of safety and well-being among employees, may prevent accidents, mitigate costs, reduce operational downtime and enhance workforce productivity.
    • 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.
      • Reserves Valuation & Capital Expenditures Coal entities may be unable to extract a significant proportion of their coal reserves if greenhouse gas (GHG) emissions are controlled to limit global temperature increases. Stewardship of capital resources while considering medium- to long-term trends, particularly related to climate change mitigation actions, is critical to prevent asset impairment and maintain profitability and creditworthiness. Globally, regulations and policies are and may continue to be put into place to limit GHG emissions from coal-fired power plants—the customers of coal entities—thus reducing demand for and the price of coal. Coal demand also is being affected by regulations governing other harmful air emissions that apply to coal-fired power plants. An expansion of GHG-mitigation regulations may increase the magnitude of potential financial impacts in the medium to long term. Along with improved competitiveness of alternative energy technologies, these jurisdictional regulations and policies pose long-term risks for the reserves and capital investments of coal operations entities.
    • 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
    • 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.
      • Tailings Storage Facilities Management Coal waste impoundments or fine coal refuse ponds, also called tailings storage facilities (TSFs), can leak and contaminate water supplies if mismanaged, potentially leading to adverse impacts on the environment and human health. These impacts may carry financial implications such as regulatory penalties, compensation payments, and remediation or compliance obligations. Entities’ ability to reduce the number and size of fine coal refuse ponds and ensure the structural integrity of impoundments can minimise such impacts. A catastrophic failure of such facilities (for example, a dam failure) could still release significant volumes of waste and materials that are harmful to the environment, leading to severe impacts on ecosystems, human livelihood, and local economies and communities. Such catastrophic incidents may result in significant financial losses for entities and may impair their social licence to operate. Robust processes and approaches to tailings facility design, management, operation and closure, as well as appropriate management of associated risks, can help prevent such incidents from occurring. Entities that adopt robust practices to maintain the safety of TSFs may do so through ensuring accountability for tailings management at the highest levels of the entity, conducting frequent internal and external independent technical reviews of TSFs, and ensuring mitigation measures are implemented in a timely manner in case of a safety concern. Additionally, a strong safety culture and well-established emergency preparedness and response plans can mitigate the impacts and financial implications of such events. Entity obligations related to long-term remediation and compensation for damages may result in additional financial effects in case of failure. An entity’s ability to meet such obligations after an incident has occurred is an additional component of emergency preparedness.

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