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It's not -- sawdust is not recommended for horses, and not used all that often. What's mostly used for horses is *shavings*, which are different. (Even then, there are dustier and less-dusty shavings, and the dustier stuff can indeed cause problems).
The exception, I'd say, is that there is some kind of sawdust/shaving type product, evidently the byproduct of SOME sort of wood machining process but I dunno what, that produces sort of little teeny sleet-like balls that you might possibly call sawdust except there is next to no dust associated with it. That works ok with horses IME.
Pat