IFRS Foundation

Toys & Sporting Goods

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Current language: English
The Toys & Sporting Goods industry comprises two distinct segments that produce leisure products: entities that manufacture toys and games, and entities that manufacture sporting and athletic goods, such as bicycles, golf clubs, fitness equipment, and other similar products. Entities in this industry primarily sell their products to consumers through retail stores. The level of manufacturing integration varies among and within segments of the industry; manufacturing is based primarily in Asia, with China accounting for a majority of production.

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.

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.
General Issue Category
(Industry agnostic)

Disclosure Topics (Industry specific) for: Toys & Sporting Goods

Product Quality & Safety
  • 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.
Supply Chain Management
  • 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.

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Current Industry: Toys & Sporting Goods

Consumer Goods
Extractives & Minerals Processing
Food & Beverage
Health Care
Renewable Resources & Alternative Energy
Resource Transformation
Technology & Communications

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