Relevant Issues (2 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.
- GHG Emissions
- Air Quality
- Energy Management
- Water & Wastewater Management
- Waste & Hazardous Materials Management
- Ecological Impacts
- Human Rights & Community Relations
- Customer Privacy
- Data Security
- Access & Affordability
Product Quality & SafetyThe 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
- Labor Practices
- Employee Health & Safety
- Employee Engagement, Diversity & Inclusion
Business Model and Innovation
- Product Design & Lifecycle Management
- Business Model Resilience
Supply Chain ManagementThe 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, labor 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.
- Materials Sourcing & Efficiency
- Physical Impacts of Climate Change
Leadership and Governance
- Business Ethics
- Competitive Behavior
- Management of the Legal & Regulatory Environment
- Critical Incident Risk Management
- Systemic Risk Management
Disclosure Topics (Industry specific) for: Toys & Sporting Goods
Chemical & Safety Hazards of Products
Consumers and regulators expect the Toys & Sporting Goods industry to ensure that its products are safe and do not cause harm. The presence of certain chemicals in products—which can be introduced by design or as a result of poor oversight over supply chains—can have chronic impacts on child development and health. Faulty or poorly designed products can also create choking, fire, or other hazards, which can result in injury or death. The Toys & Sporting Goods industry is subject to regulation over the safety of its products. The toys segment in particular is highly regulated to protect children, and evolving science on the safety of certain chemicals will likely lead to additional restrictions. Failure to create products that are safe for consumers may provoke new regulatory oversight and affect an entity’s social license to operate. Furthermore, improper product safety testing or evaluation can lead to costly recalls, litigation, or reputational damage that can affect sales. Toys and sporting goods entities that work at both the design and manufacturing phases to manage the use of certain chemicals while eliminating others can better mitigate risks associated with chemical safety.
Labour Conditions in the Supply Chain
The treatment of workers and labour conditions in the industry’s manufacturing supply chain are of growing concern for consumers, regulators, and entities. Labour issues include worker health and safety standards, compensation, amount of working hours, and risks related to discrimination and forced labour. The industry is exposed to these issues because of its reliance on third-party manufacturing in emerging markets, where labour standards, labour protection, and regulation enforcement can be weak, and violations are common. Entities also contract with numerous suppliers, adding complexity and challenges with respect to transparency. A failure to manage labour conditions can result in supply disruptions, reputational damage, and increased regulation and enforcement in response to high-profile safety or labour incidents, strikes and work stoppages, and shifts in consumer demand. Toys and sporting goods entities are increasingly engaging with suppliers through audits, partnerships, and increased oversight, allowing them to preempt and react more quickly to labour issues. Entities that effectively manage this issue can protect brand value and reduce their cost of capital.