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You are viewing information about the following Industries:

Airlines
Airlines industry entities provide air transportation globally to passengers for both leisure and business purposes. This includes commercial full-service, low-cost and regional airlines. Full-service carriers typically use a hub-and-spoke model to design their routes within countries and internationally. Low-cost carriers usually offer a smaller number of routes as well as no-frills service to their customers. Regional carriers typically operate under contract to full-service carriers, expanding the network of the larger carriers. Many airline entities also have a cargo segment in their operations to generate additional revenue. Entities in the industry commonly form partnerships or join alliances to increase network size. Operating as an alliance allows airlines to offer customers access to international or otherwise underserved itineraries on more than one airline under one ticket. At the same time, airlines share some overhead costs and increase their competitive position in the global market without having to operate outside their home country.
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Advertising & Marketing
The Advertising and Marketing industry is comprised of entities that create advertising campaigns for use in media, display, or direct mail advertising and related services including market research. Advertising and marketing entities are engaged primarily by businesses selling consumer products, entertainment, financial services, technology products, and telecommunication services. Larger advertising entities are structured as holding entities, owning multiple agencies across the globe that provide a wide range of services such as custom publishing, brand consultancy, mobile and online marketing, and public relations. For any advertising campaign, the same entity may be engaged in all aspects, from graphic arts and content creation to data analytics, marketing research, and media planning and buying, or the entity may be in charge only of certain aspects.
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Relevant Issues for both Industries (7 of 26)

Why are some issues greyed out?

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

Environment
- GHG Emissions
  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).
- Air Quality
- Energy Management
- Water & Wastewater Management
- Waste & Hazardous Materials Management
- Ecological Impacts
Social Capital
- Human Rights & Community Relations
- Customer Privacy
  The category addresses management of risks related to the use of personally identifiable information (PII) and other customer or user data for secondary purposes including but not limited to marketing through affiliates and non-affiliates. The scope of the category includes social issues that may arise from a company’s approach to collecting data, obtaining consent (e.g., opt-in policies), managing user and customer expectations regarding how their data is used, and managing evolving regulation. It excludes social issues arising from cybersecurity risks, which are covered in a separate category.
- Data Security
- Access & Affordability
- Product Quality & Safety
- Customer Welfare
- Selling Practices & Product Labeling
  The category addresses social issues that may arise from a failure to manage the transparency, accuracy, and comprehensibility of marketing statements, advertising, and labeling of products and services. It includes, but is not limited to, advertising standards and regulations, ethical and responsible marketing practices, misleading or deceptive labeling, as well as discriminatory or predatory selling and lending practices. This may include deceptive or aggressive selling practices in which incentive structures for employees could encourage the sale of products or services that are not in the best interest of customers or clients.
Human Capital
- 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.
- Employee Health & Safety
- 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.
Business Model and Innovation
- Product Design & Lifecycle Management
- Business Model Resilience
- Supply Chain Management
- Materials Sourcing & Efficiency
- Physical Impacts of Climate Change
Leadership and Governance
- Business Ethics
- Competitive Behaviour
  The category covers social issues associated with existence of monopolies, which may include, but are not limited to, excessive prices, poor quality of service, and inefficiencies. It addresses a company’s management of legal and social expectation around monopolistic and anti-competitive practices, including issues related to bargaining power, collusion, price fixing or manipulation, and protection of patents and intellectual property (IP).
- Management of the Legal & Regulatory Environment
- Critical Incident Risk Management
  The category addresses the company’s use of management systems and scenario planning to identify, understand, and prevent or minimize the occurrence of low-probability, high-impact accidents and emergencies with significant potential environmental and social externalities. It relates to the culture of safety at a company, its relevant safety management systems and technological controls, the potential human, environmental, and social implications of such events occurring, and the long-term effects to an organization, its workers, and society should these events occur.
- Systemic Risk Management

Disclosure Topics

What is the relationship between General Issue Category and Disclosure Topics?

The General Issue Category is an industry-agnostic version of the Disclosure Topics that appear in each SASB Standard. Disclosure topics represent the industry-specific impacts of General Issue Categories. The industry-specific Disclosure Topics ensure each SASB Standard is tailored to the industry, while the General Issue Categories enable comparability across industries. For example, Health & Nutrition is a disclosure topic in the Non-Alcoholic Beverages industry, representing an industry-specific measure of the general issue of Customer Welfare. The issue of Customer Welfare, however, manifests as the Counterfeit Drugs disclosure topic in the Biotechnology & Pharmaceuticals industry.

Airlines 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
    As a result of a heavy reliance on hydrocarbon fuels, the Airlines industry generates significant emissions, more than 99% of which are in the form of carbon dioxide (CO2). Therefore, the industry is subject to compliance costs and risks associated with climate change mitigation policies. The main sources of greenhouse gas (GHG) emissions for airlines entities are aircraft fuel use and emissions, ground equipment and facility electricity. Aircraft fuel consumption is the largest contributor to total emissions from the industry, and fuel management is a critical part of reducing emissions. Management of fuel-related environmental impacts includes increasing fuel efficiency through fleet upgrades, retrofits, and flight speed and route design optimisation, as well as using alternative and sustainable fuels. These initiatives require capital expenditures, but in the long term, they may reduce fuel costs and decrease exposure to GHG emissions programmes and regulatory risk.
- Customer Privacy
  The category addresses management of risks related to the use of personally identifiable information (PII) and other customer or user data for secondary purposes including but not limited to marketing through affiliates and non-affiliates. The scope of the category includes social issues that may arise from a company’s approach to collecting data, obtaining consent (e.g., opt-in policies), managing user and customer expectations regarding how their data is used, and managing evolving regulation. It excludes social issues arising from cybersecurity risks, which are covered in a separate category.
  
  None
- Selling Practices & Product Labeling
  The category addresses social issues that may arise from a failure to manage the transparency, accuracy, and comprehensibility of marketing statements, advertising, and labeling of products and services. It includes, but is not limited to, advertising standards and regulations, ethical and responsible marketing practices, misleading or deceptive labeling, as well as discriminatory or predatory selling and lending practices. This may include deceptive or aggressive selling practices in which incentive structures for employees could encourage the sale of products or services that are not in the best interest of customers or clients.
  
  None
- 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
    Collective agreements cover many workers in the Airlines industry and guide fair wage discussions, safe working conditions and freedom of association, which are among basic worker rights. The organising of essential personnel and increased wages or benefits may result in higher labour costs. At the same time, labour practices may affect long-term business profitability. Effective management of, and communication associated with, issues such as worker pay and working conditions may prevent conflicts with workers that could result in extended periods of strikes, which may slow or suspend operations and damage an entity’s reputation, potentially reducing revenue and market share.
- 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
- Competitive Behaviour
  The category covers social issues associated with existence of monopolies, which may include, but are not limited to, excessive prices, poor quality of service, and inefficiencies. It addresses a company’s management of legal and social expectation around monopolistic and anti-competitive practices, including issues related to bargaining power, collusion, price fixing or manipulation, and protection of patents and intellectual property (IP).
  - Competitive Behaviour
    The Airlines industry is characterised by competitive margins because of high fixed capital and labour costs and competition with government-subsidised carriers in some markets. Airlines often seek cost savings using economies of scale with alliances or consolidation, which may result in market concentration. The industry also has high barriers to entry because of limited landing rights and increasing airport congestion. Together, these characteristics may encourage entities to engage in anti-competitive practices that increase consumer prices. As a result, antitrust authorities have scrutinised some airline industry practices such as airport slot management, predatory pricing, and alliances and mergers. Legal fees, reputational risk, delayed merger or acquisition transaction costs, and limits to growth through acquisition or merger may create material risks for investors.
- 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
    Air travel accidents may result in significant consequences. Passenger safety is paramount in the Airlines industry. Although air travel is one of the safest transport modes, airlines are held to very high safety standards, and consumers expect accident-free operations. Furthermore, since products transported by air tend to be high-value or perishable goods, delivering them safely and in a timely manner is a priority for any carrier. Airline accidents may result in significant environmental and social externalities and require entities to pay for remediation and victim compensation. Safety incidents or violations of safety regulations may affect an entity’s reputation, increasing its risk and cost of capital, resulting in reduced consumer demand and revenues. Even if they occur rarely, larger accidents may result in significant, long-term effects on brand value and revenue growth. Providing adequate employee safety training and ensuring the health and well-being of crew members is critical to ensuring safety. Timely and competent aircraft maintenance may minimise the chances of technical failure and regulatory penalties for non-compliance.
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Access Standard
- 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).
  
  None
- Customer Privacy
  The category addresses management of risks related to the use of personally identifiable information (PII) and other customer or user data for secondary purposes including but not limited to marketing through affiliates and non-affiliates. The scope of the category includes social issues that may arise from a company’s approach to collecting data, obtaining consent (e.g., opt-in policies), managing user and customer expectations regarding how their data is used, and managing evolving regulation. It excludes social issues arising from cybersecurity risks, which are covered in a separate category.
  - Data Privacy
    Because of the prevalence of social media, location-based mobile applications and e-commerce, customers’ digital footprints offer a more complete picture of their habits than might otherwise be available to advertisers. Advertisers can collect or purchase highly detailed information about buyers, and advertising strategies can be precisely targeted to potential buyers. As part of an industry that uses large quantities of data about private citizens, advertising and marketing entities must balance the potential benefits of targeted advertising with protecting customer data and privacy.
- Selling Practices & Product Labeling
  The category addresses social issues that may arise from a failure to manage the transparency, accuracy, and comprehensibility of marketing statements, advertising, and labeling of products and services. It includes, but is not limited to, advertising standards and regulations, ethical and responsible marketing practices, misleading or deceptive labeling, as well as discriminatory or predatory selling and lending practices. This may include deceptive or aggressive selling practices in which incentive structures for employees could encourage the sale of products or services that are not in the best interest of customers or clients.
  - Advertising Integrity
    Entities have a legal responsibility to ensure their products and services advertising is truthful and not deceptive. Although much of the regulatory compliance burden regarding advertising content and placement lies with the client, advertising agencies play a vital role in the creation of advertising content and are responsible for advising clients regarding applicable regulations. Consumer protection laws provide guidance and restrictions on advertising to children and on advertising regulated products, such as alcohol and tobacco. Regulators may investigate advertising agency involvement in deceptive advertising and penalise the agency. Advertising and marketing entities exposed to these regulations and concerns have responded by participating in self-regulatory programmes that manage these areas.
- 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
- 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.
  - Workforce Diversity & Inclusion
    In the Advertising & Marketing industry, an entity gains competitive advantages from producing creative, innovative ideas. Entities in this industry compete for talented workers to create successful advertising campaigns. Larger entities have clients around the world and must employ a diverse workforce to reach diverse audiences effectively. Connecting with a target market relies, to a significant extent, on employing a workforce that reflects the communities in that market. A diverse workforce is a critical factor in improving service outcomes and enhancing an advertising entity’s financial performance.
- Competitive Behaviour
  The category covers social issues associated with existence of monopolies, which may include, but are not limited to, excessive prices, poor quality of service, and inefficiencies. It addresses a company’s management of legal and social expectation around monopolistic and anti-competitive practices, including issues related to bargaining power, collusion, price fixing or manipulation, and protection of patents and intellectual property (IP).
  
  None
- Critical Incident Risk Management
  The category addresses the company’s use of management systems and scenario planning to identify, understand, and prevent or minimize the occurrence of low-probability, high-impact accidents and emergencies with significant potential environmental and social externalities. It relates to the culture of safety at a company, its relevant safety management systems and technological controls, the potential human, environmental, and social implications of such events occurring, and the long-term effects to an organization, its workers, and society should these events occur.
  
  None

General Issue Category

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GHG Emissions

Greenhouse Gas Emissions
As a result of a heavy reliance on hydrocarbon fuels, the Airlines industry generates significant emissions, more than 99% of which are in the form of carbon dioxide (CO2). Therefore, the industry is subject to compliance costs and risks associated with climate change mitigation policies. The main sources of greenhouse gas (GHG) emissions for airlines entities are aircraft fuel use and emissions, ground equipment and facility electricity. Aircraft fuel consumption is the largest contributor to total emissions from the industry, and fuel management is a critical part of reducing emissions. Management of fuel-related environmental impacts includes increasing fuel efficiency through fleet upgrades, retrofits, and flight speed and route design optimisation, as well as using alternative and sustainable fuels. These initiatives require capital expenditures, but in the long term, they may reduce fuel costs and decrease exposure to GHG emissions programmes and regulatory risk.

Customer Privacy

Data Privacy
Because of the prevalence of social media, location-based mobile applications and e-commerce, customers’ digital footprints offer a more complete picture of their habits than might otherwise be available to advertisers. Advertisers can collect or purchase highly detailed information about buyers, and advertising strategies can be precisely targeted to potential buyers. As part of an industry that uses large quantities of data about private citizens, advertising and marketing entities must balance the potential benefits of targeted advertising with protecting customer data and privacy.

Selling Practices & Product Labeling

Advertising Integrity
Entities have a legal responsibility to ensure their products and services advertising is truthful and not deceptive. Although much of the regulatory compliance burden regarding advertising content and placement lies with the client, advertising agencies play a vital role in the creation of advertising content and are responsible for advising clients regarding applicable regulations. Consumer protection laws provide guidance and restrictions on advertising to children and on advertising regulated products, such as alcohol and tobacco. Regulators may investigate advertising agency involvement in deceptive advertising and penalise the agency. Advertising and marketing entities exposed to these regulations and concerns have responded by participating in self-regulatory programmes that manage these areas.

Labour Practices

Labour Practices
Collective agreements cover many workers in the Airlines industry and guide fair wage discussions, safe working conditions and freedom of association, which are among basic worker rights. The organising of essential personnel and increased wages or benefits may result in higher labour costs. At the same time, labour practices may affect long-term business profitability. Effective management of, and communication associated with, issues such as worker pay and working conditions may prevent conflicts with workers that could result in extended periods of strikes, which may slow or suspend operations and damage an entity’s reputation, potentially reducing revenue and market share.

Employee Engagement, Diversity & Inclusion

Workforce Diversity & Inclusion
In the Advertising & Marketing industry, an entity gains competitive advantages from producing creative, innovative ideas. Entities in this industry compete for talented workers to create successful advertising campaigns. Larger entities have clients around the world and must employ a diverse workforce to reach diverse audiences effectively. Connecting with a target market relies, to a significant extent, on employing a workforce that reflects the communities in that market. A diverse workforce is a critical factor in improving service outcomes and enhancing an advertising entity’s financial performance.

Competitive Behaviour

Competitive Behaviour
The Airlines industry is characterised by competitive margins because of high fixed capital and labour costs and competition with government-subsidised carriers in some markets. Airlines often seek cost savings using economies of scale with alliances or consolidation, which may result in market concentration. The industry also has high barriers to entry because of limited landing rights and increasing airport congestion. Together, these characteristics may encourage entities to engage in anti-competitive practices that increase consumer prices. As a result, antitrust authorities have scrutinised some airline industry practices such as airport slot management, predatory pricing, and alliances and mergers. Legal fees, reputational risk, delayed merger or acquisition transaction costs, and limits to growth through acquisition or merger may create material risks for investors.

Critical Incident Risk Management

Accident & Safety Management
Air travel accidents may result in significant consequences. Passenger safety is paramount in the Airlines industry. Although air travel is one of the safest transport modes, airlines are held to very high safety standards, and consumers expect accident-free operations. Furthermore, since products transported by air tend to be high-value or perishable goods, delivering them safely and in a timely manner is a priority for any carrier. Airline accidents may result in significant environmental and social externalities and require entities to pay for remediation and victim compensation. Safety incidents or violations of safety regulations may affect an entity’s reputation, increasing its risk and cost of capital, resulting in reduced consumer demand and revenues. Even if they occur rarely, larger accidents may result in significant, long-term effects on brand value and revenue growth. Providing adequate employee safety training and ensuring the health and well-being of crew members is critical to ensuring safety. Timely and competent aircraft maintenance may minimise the chances of technical failure and regulatory penalties for non-compliance.

Relevant Issues for both Industries (7 of 26)

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