Industry Comparison

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You are viewing information about the following Industries:

Automobiles
Automobiles industry entities manufacture passenger vehicles, light trucks and motorcycles. Industry players design, build and sell vehicles that use a range of traditional and alternative fuels and powertrains. They sell these vehicles to dealers for consumer retail sales as well as sell directly to fleet customers, including car rental and leasing entities, commercial fleets and governments. Because of the industry’s global nature, nearly all entities have manufacturing facilities, assembly plants and service locations in several countries around the world. The Automobiles industry is concentrated, with a few large manufacturers and a diversified supply chain. Given the industry’s reliance on natural resources and sensitivity to the business cycle, revenue is typically cyclical.
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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.

Environment
- GHG Emissions
- Air Quality
- 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.
- 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.
- Waste & Hazardous Materials Management
- 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.
Social Capital
- Human Rights & Community Relations
- Customer Privacy
- Data Security
- Access & Affordability
- Product Quality & Safety
  The category addresses issues involving unintended characteristics of products sold or services provided that may create health or safety risks to end-users. It addresses a company’s ability to offer manufactured products and/or services that meet customer expectations with respect to their health and safety characteristics. It includes, but is not limited to, issues involving liability, management of recalls and market withdrawals, product testing, and chemicals/content/ingredient management in products.
- Customer Welfare
- Selling Practices & Product Labeling
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
Business Model and Innovation
- 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.
- Business Model Resilience
- Supply Chain Management
- 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.
- 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).
Leadership and Governance
- Business Ethics
- Competitive Behaviour
- Management of the Legal & Regulatory Environment
- Critical Incident Risk Management
- 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.

Automobiles 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
- 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
- Product Quality & Safety
  The category addresses issues involving unintended characteristics of products sold or services provided that may create health or safety risks to end-users. It addresses a company’s ability to offer manufactured products and/or services that meet customer expectations with respect to their health and safety characteristics. It includes, but is not limited to, issues involving liability, management of recalls and market withdrawals, product testing, and chemicals/content/ingredient management in products.
  - Product Safety
    Driving is a risky activity, since factors such as distracted driving, drunk driving, speeding and dangerous weather conditions may result in accidents that expose drivers, passengers and bystanders to injuries and deaths. Defective vehicles may also cause accidents, and failure to detect defects before vehicles are sold may result in significant financial repercussions for auto manufacturers. In many countries, defective vehicles that do not meet safety requirements must be recalled and repaired or replaced at the manufacturer’s cost. Recalls may damage brand value, which may reduce revenues and growth potential and increase an entity’s risk profile and cost of capital. Entities that ensure vehicle safety and respond quickly when they identify defects may reduce the risks of regulatory action or customer lawsuits that may adversely affect their margins. Through effective management of vehicle safety, entities may improve brand value and sales over the long term.
- 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 bargaining agreements cover many workers in the Automobiles industry guiding fair wage discussions, safe working conditions and freedom of association, which are among basic workers’ rights. Because of the global nature of the industry, auto entities may also operate in countries where workers’ rights are inadequately protected. Effective communication by management regarding issues such as pay and working conditions may prevent conflicts between workers and management that may result in strikes, which slow or suspend manufacturing, reduce revenues and increase operational risk. Auto manufacturers that manage workers’ rights effectively may improve the long-term financial sustainability of their operations by enhancing worker productivity.
- 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.
  - Fuel Economy & Use-phase Emissions
    Motor vehicle fossil fuel combustion accounts for a significant share of the greenhouse gas (GHG) emissions contributing to global climate change. Engine exhaust also generates local air pollutants such as nitrogen oxides (NO?), volatile organic compounds (VOCs) and particulate matter (PM), which can threaten human health and the environment. In this context, vehicle emissions increasingly concern consumers and regulators around the world. Although use-phase emissions are downstream from auto manufacturers, regulations often focus on auto manufacturers to reduce these emissions, such as through fuel economy standards. More stringent emissions standards and changing consumer demands are driving electric vehicle and hybrid market expansion, as well as for high fuel-efficiency conventional vehicles. Moreover, manufacturers are designing innovative vehicles made with lighter-weight materials to improve fuel efficiency. Entities that meet current fuel-efficiency and emissions standards and continue to innovate to meet or exceed future regulatory standards in various markets may strengthen their competitive position and expand their market share, while mitigating the risk of reduced demand for conventional vehicles.
- 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 Automobiles industry commonly rely on rare earth metals and other critical materials as important inputs. Many of these inputs have few substitutes and often are sourced from 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. These materials play a crucial role in clean energy technologies, such as electric and hybrid vehicles. As regulators strive to reduce greenhouse gas emissions and consumer demand grows for more fuel-efficient vehicles, the share of hybrids and zero emission vehicles (ZEVs) produced by the Automobiles industry may continue to increase in the future. Entities that limit the use of critical materials, secure their sourcing and develop alternatives may mitigate supply disruptions and volatile input prices, which could adversely affect their margins, risk profile and cost of capital.
  - Materials Efficiency & Recycling
    Auto manufacturing involves the use of significant amounts of materials (including steel, iron, aluminium and plastics) and can generate substantial amounts of waste (including scrap metal, paint sludge and shipping materials). As the rate of vehicle ownership expands globally and millions of vehicles reach the end of their useful lives each year, automobile lifecycle environmental impacts are increasing. Automobile entities may focus on innovation in design as well as process and technological improvements to mitigate these impacts and achieve financial benefits. Entities that improve materials efficiency in their production processes, including reducing waste and reusing or recycling waste and scrapped vehicles, may reduce vehicle lifecycle environmental impacts. Through such innovation, entities may achieve cost savings by reducing input costs and mitigating potential regulatory fines or penalties. They may also mitigate production input price fluctuations from periodic or long-term resource scarcity.
- 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
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
    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.
- 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.
- Product Quality & Safety
  The category addresses issues involving unintended characteristics of products sold or services provided that may create health or safety risks to end-users. It addresses a company’s ability to offer manufactured products and/or services that meet customer expectations with respect to their health and safety characteristics. It includes, but is not limited to, issues involving liability, management of recalls and market withdrawals, product testing, and chemicals/content/ingredient management in products.
  
  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
    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.

General Issue Category

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Energy Management

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

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.

Ecological Impacts

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.

Product Quality & Safety

Product Safety
Driving is a risky activity, since factors such as distracted driving, drunk driving, speeding and dangerous weather conditions may result in accidents that expose drivers, passengers and bystanders to injuries and deaths. Defective vehicles may also cause accidents, and failure to detect defects before vehicles are sold may result in significant financial repercussions for auto manufacturers. In many countries, defective vehicles that do not meet safety requirements must be recalled and repaired or replaced at the manufacturer’s cost. Recalls may damage brand value, which may reduce revenues and growth potential and increase an entity’s risk profile and cost of capital. Entities that ensure vehicle safety and respond quickly when they identify defects may reduce the risks of regulatory action or customer lawsuits that may adversely affect their margins. Through effective management of vehicle safety, entities may improve brand value and sales over the long term.

Labour Practices

Labour Practices
Collective bargaining agreements cover many workers in the Automobiles industry guiding fair wage discussions, safe working conditions and freedom of association, which are among basic workers’ rights. Because of the global nature of the industry, auto entities may also operate in countries where workers’ rights are inadequately protected. Effective communication by management regarding issues such as pay and working conditions may prevent conflicts between workers and management that may result in strikes, which slow or suspend manufacturing, reduce revenues and increase operational risk. Auto manufacturers that manage workers’ rights effectively may improve the long-term financial sustainability of their operations by enhancing worker productivity.

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

Fuel Economy & Use-phase Emissions
Motor vehicle fossil fuel combustion accounts for a significant share of the greenhouse gas (GHG) emissions contributing to global climate change. Engine exhaust also generates local air pollutants such as nitrogen oxides (NO?), volatile organic compounds (VOCs) and particulate matter (PM), which can threaten human health and the environment. In this context, vehicle emissions increasingly concern consumers and regulators around the world. Although use-phase emissions are downstream from auto manufacturers, regulations often focus on auto manufacturers to reduce these emissions, such as through fuel economy standards. More stringent emissions standards and changing consumer demands are driving electric vehicle and hybrid market expansion, as well as for high fuel-efficiency conventional vehicles. Moreover, manufacturers are designing innovative vehicles made with lighter-weight materials to improve fuel efficiency. Entities that meet current fuel-efficiency and emissions standards and continue to innovate to meet or exceed future regulatory standards in various markets may strengthen their competitive position and expand their market share, while mitigating the risk of reduced demand for conventional vehicles.

Materials Sourcing & Efficiency

Materials Sourcing
Entities in the Automobiles industry commonly rely on rare earth metals and other critical materials as important inputs. Many of these inputs have few substitutes and often are sourced from 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. These materials play a crucial role in clean energy technologies, such as electric and hybrid vehicles. As regulators strive to reduce greenhouse gas emissions and consumer demand grows for more fuel-efficient vehicles, the share of hybrids and zero emission vehicles (ZEVs) produced by the Automobiles industry may continue to increase in the future. Entities that limit the use of critical materials, secure their sourcing and develop alternatives may mitigate supply disruptions and volatile input prices, which could adversely affect their margins, risk profile and cost of capital.
Materials Efficiency & Recycling
Auto manufacturing involves the use of significant amounts of materials (including steel, iron, aluminium and plastics) and can generate substantial amounts of waste (including scrap metal, paint sludge and shipping materials). As the rate of vehicle ownership expands globally and millions of vehicles reach the end of their useful lives each year, automobile lifecycle environmental impacts are increasing. Automobile entities may focus on innovation in design as well as process and technological improvements to mitigate these impacts and achieve financial benefits. Entities that improve materials efficiency in their production processes, including reducing waste and reusing or recycling waste and scrapped vehicles, may reduce vehicle lifecycle environmental impacts. Through such innovation, entities may achieve cost savings by reducing input costs and mitigating potential regulatory fines or penalties. They may also mitigate production input price fluctuations from periodic or long-term resource scarcity.

Physical Impacts of Climate Change

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.

Relevant Issues for both Industries (8 of 26)

Select up to 4 industries