Press Releases / Cascale’s Higg FEM Reveals Opportunities for Low-Carbon Transition in Vietnam

Cascale’s Higg FEM Reveals Opportunities for Low-Carbon Transition in Vietnam

Decarbonization
Higg FEM
Higg Index Tools

Vietnam is emerging as a critical player in the global shift to low-carbon manufacturing—and new insights from Cascale’s Higg FEM show why.

Vietnamese landscape; lush green rice fields

April 17, 2025

Industry Decarbonization Roadmap (IDR) could help deliver on sustainability goals as consumer goods manufacturing continues to drive GDP growth, projected at 6.5% in 2025.

Amsterdam, Hong Kong, Oakland (CA) – April 17, 2025: Issued today, the “Vietnam Country Report: Macroeconomic, Socioeconomic, and Industry Analysis” report, developed by Cascale with support from the Apparel Impact Institute (Aii), highlights the evolving macroeconomic landscape, sustainability challenges facing apparel and footwear manufacturing, and the rapid expansion of the consumer goods market in Vietnam. A strong economic outlook coupled with bold sustainability initiatives reveals a country poised to play a crucial role in global decarbonization efforts, even as tariffs threaten to put 5.5% of Vietnam’s GDP at risk and raise prices for American consumers (New York Times, April 6). Tariffs and other key topics impacting Vietnam will be on the agenda at the Cascale Forum: Ho Chi Minh City on May 14-15, as Cascale members and non-members alike – including manufacturers, leading brands, service providers, and supply chain partners – come together for an immersive event to address urgent sustainability challenges and opportunities. The report includes critical analysis of data from Cascale’s Higg Facility Environment Module (FEM) tool, exclusively available on Worldly. It is the first in a series of actionable reports filtering Higg FEM insights through a regional lens.

In 2023, over 1,200 verified Higg FEM submissions showed coal exacerbates carbon emissions in the region: 12% of apparel and footwear facilities use coal for energy, while 94% rely on electricity purchased from Vietnam’s coal-dependent grid. Although renewable energy accounts for less than 2% of the sector’s energy use, the analysis underscores opportunities for transformation to a low-carbon economy, including through the Industry Decarbonization Roadmap (IDR) developed by Cascale and Aii.

The report shows Vietnam can couple growth with sustainable manufacturing. Vietnam’s economy is expected to grow by 6.5% in 2025, outpacing regional peers. The manufacturing sector continues to be a key driver, contributing 23.88% to GDP in 2023. Additionally, Foreign Direct Investment (FDI) remains robust, reaching US$31.4 billion in the first 11 months of 2024, signaling investor confidence in Vietnam’s economic resilience. Employing around three million workers and generating an estimated US$71 billion in export revenues for 2024, the apparel and footwear sector is a vital component of Vietnam’s economy but faces significant sustainability challenges, including high energy consumption and carbon emissions. With commitments in place for a 65-70% increase in renewable energy by 2045 – reducing greenhouse gas emissions by a projected 70-80% – Vietnam is committed to supply chain decarbonization, in line with the IDR.

The report brings Cascale and Aii’s IDR into focus as a potential solution. By uniting manufacturers, brands, retailers, and stakeholders around shared goals, the IDR emphasizes collective accountability and pre-competitive collaboration to accelerate systemic change across the supply chain. With a science-based target of reducing supply chain emissions by 45% by 2030, the IDR drives measurable progress through various interventions, solutions, and programs. The IDR ensures resources are targeted, so low-carbon sourcing and other benefits can be realized. This means prioritizing action in the 10% of facilities across the textile and apparel supply chain – including some in Vietnam – that account for over 80% of global manufacturing emissions. By aligning with these initiatives, facilities in Vietnam can play a pivotal role in the global transition to a low-carbon economy

“This isn’t merely about compliance—it’s about long-term competitiveness,” said Colin Browne, Cascale CEO. “Brands increasingly prefer suppliers who meet robust sustainability standards. Manufacturers investing in sustainability today will secure long-term brand partnerships tomorrow.”

Publications / Vietnam Country Report: Macroeconomic, Socioeconomic, and Industry Analysis

Vietnam Country Report: Macroeconomic, Socioeconomic, and Industry Analysis

Decarbonization

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April 17, 2025

News Updates / Cascale Explores How MCAP Can Accelerate Climate Action for Manufacturers at Komar Events

Cascale Explores How MCAP Can Accelerate Climate Action for Manufacturers at Komar Events

MCAP
Decarbonization
Manufacturing

March 31, 2025

Joyce Tsoi, senior director of the Decarbonization Program at Cascale, recently presented at the virtual Komar Supply Chain Sustainability Forums in Vietnam and Cambodia.

The event brought together Komar Brands’ Tier 1 and 2 suppliers and featured presentations from industry experts on supplier best practices and brainstorming sessions on environmental and product sustainability initiatives.

Tsoi kicked off her presentation by giving an overview of Cascale’s origins and its vision to convene stakeholders across the industry on a pre-competitive basis to develop a common approach to measuring sustainability. After an overview of Cascale’s growth in membership and evolution, Tsoi highlighted Cascale’s strategic pillars — Combat Climate Change and Support Decent Work for All — as critical to the organization’s renewed focus.

Decarbonization remains a critical focus for the industry. In Vietnam and Cambodia alone, we’ve seen only 27 companies committed to set science-based targets (SBTs), and out of those, 12 companies have validated targets from the apparel, footwear, and textile sector. From Higg FEM data insight, we need to continue to strive for significant actions in South East Asia. Without significant actions and progress, the economic, environmental, and social impacts will continue to escalate.

Tsoi shared Cascale’s efforts to combat climate change and accelerate industry-wide decarbonization through the new Industry Decarbonization Roadmap (IDR), developed in partnership with Apparel Impact Institute (Aii) and with the support of RESET Carbon. She noted how science-based targets (SBTs) and science-aligned targets (SATs) provided a focused first step for companies embarking on their decarbonization journey, complementing the broader IDR roadmap. IDR is a bold, industry-wide initiative to tackle supply chain emissions at scale, aiming to decarbonize global manufacturing from tier 1 finished production assembly, tier 2 material production to tier 3 raw material processing facilities.

Central to IDR, Tsoi highlighted the Manufacturer Climate Action Program (MCAP) framework and how Cascale works with manufacturers to commit and set SATs for validation, evaluate their climate risks, develop a decarbonization plan, and communicate progress with stakeholders. She detailed the program’s benefits, including peer-to-peer learning, best practice sharing in the industry, as well as technical advisory support, training, and guidance. She shared how capacity-building programs – such as MCAP – enable knowledge and skills to be scaled to support manufacturers step-by-step in their target-setting process to support developing their decarbonization plan.

In tandem, Tsoi emphasized the importance of leveraging tools such as the Higg Facility Environmental Module (FEM) in establishing a firm environmental foundation for effective action. With this accurate energy and carbon baseline measurement, companies can determine their focus on tangible energy and carbon reduction opportunities, develop an action plan to take necessary actions, and achieve meaningful progress. Delving deeper into the Higg FEM, Tsoi shared key insights on its adoption in facilities in Vietnam and Cambodia, which showed a significant growth, with more facilities recognizing the Higg FEM as a core tool for measuring environmental performance.

Lastly, she noted the critical value of responsible purchasing practices in moving the industry forward, highlighting Cascale’s recent purchase of key assets of Better Buying Institute (BBI) as a testament of its commitment to advance responsible purchasing practices across the consumer goods industry.

Tsoi concluded her presentation by inviting attendees to register for the Cascale Forum, which will take place May 14-15 in Ho Chi Minh City, Vietnam. The two-day event will bring together manufacturers, suppliers, brands, retailers, and key industry stakeholders to drive actionable solutions for decarbonization, environmental performance, responsible purchasing practices, and audit fatigue.

Press Releases / Cascale Expands MCAP to Advance Impact on Decarbonization

Cascale Expands MCAP to Advance Impact on Decarbonization

MCAP
Decarbonization
Manufacturing

Manufacturer Climate Action Program (MCAP) helps manufacturers to set credible climate targets aligned with science

March 25, 2025

Manufacturer Climate Action Program (MCAP) helps manufacturers to set credible climate targets aligned with science

Amsterdam, Hong Kong, Oakland (CA) – March 25, 2025: Cascale’s Manufacturer Climate Action Program (MCAP), a vital initiative that supports manufacturers globally to begin their decarbonization journey to set Scope 1 and 2 emission reduction targets emissions, will broaden its reach to welcome new participants in 2025. MCAP is expanding this year with two new cohorts, offering more manufacturers – both Cascale members and non-members – the opportunity to advance their multi-year decarbonization efforts.

Launched in 2024, the 18-month program offers a focused first step for manufacturers looking to build their decarbonization journey. MCAP complements the Industry Decarbonization Roadmap (IDR), developed by Cascale and Apparel Impact Institute (Aii) as a comprehensive approach to drive measurable progress on decarbonization. Under Cascale’s “Combat Climate Change” pillar, these programs aim to reduce greenhouse gas (GHG) emissions from the global consumer goods industry by 45 percent by 2030.

MCAP’s first two cohorts included 58 manufacturers and seven nominating brands, working together to develop and set Science-Aligned Targets (SATs)—clear, credible goals aligned with global climate science. All 18 participants from MCAP’s first cohort have successfully submitted their targets for validation, representing a significant milestone for the program. Once validated, these targets will be publicly showcased on the MCAP disclosure dashboard, aligning with transparency practices of leading frameworks like Science Based Targets initiative (SBTi) and the Carbon Disclosure Project (CDP).

“Sustainability is at the heart of ITL Group’s operations,” said Jimmy Christopher, SVP Group Sustainability and Innovation, ITL Group. “Through MCAP, we received invaluable guidance and a clear roadmap, allowing us to confidently validate our climate targets. The collaborative approach made the process smooth and effective. We’re proud to support MCAP’s vital work in driving meaningful climate action across the fashion value chain.”

Through MCAP, manufacturers are trained to develop their GHG inventory, identify high emission facilities in their operations, set SATs, and connect with like-minded organizations. MCAP participants benefit from expert-led training in climate risk assessment, providing an opportunity for manufacturers to identify risks based on Intergovernmental Panel on Climate Change (IPCC) scenarios.

“Supported by PwC, we conducted the physical climate risk training to share common climate risks and mitigation strategies,” said Joyce Tsoi, Sr. Director, Decarbonization Program at Cascale. “Recognized as best practice by leading global frameworks such as the Corporate Sustainability Reporting Directive (CSRD), the CDP, and the Task Force on Climate-related Financial Disclosures (TCFD), many jurisdictions are requiring organizations to disclose their climate-related risks. We’re pleased that more than half of participating manufacturers are undergoing a climate risk assessment after the training sessions.”

With a commitment to credibility, MCAP collaborates with third-party validators and aligns with the SBTi framework, incorporating the latest IPCC science. MCAP is open to all manufacturers looking to start their decarbonization journey or wish to accelerate the adoption of science-aligned GHG reduction targets within their Scope 1 and 2 emissions. Interested parties can learn more about the program in the next MCAP information session, or enroll directly. For more information, visit Cascale’s website.

Blogs / Taking the Next Steps: Progress on the Industry Decarbonization Roadmap

Taking the Next Steps: Progress on the Industry Decarbonization Roadmap

Decarbonization

Jeremy Lardeau shares how the Industry Decarbonization Roadmap (IDR) outlines key strategies to reduce supply chain emissions and drive collaborative action across the industry.

Two people in high vis vests and hard hats walk in a solar panel field

Jeremy Lardeau

December 18, 2024

If there’s one thing I’ve learned from working within this industry, it’s that bold plans need equally bold follow-through, and most of all – humility.

That’s what we’re working toward with Cascale and Aii’s Industry Decarbonization Roadmap (IDR). Launched at our Annual Meeting in Munich this past September, the IDR is our collective blueprint for tackling supply chain emissions at scale. (Missed the announcement? Catch up here.)

The IDR represents an ambitious vision to decarbonize global manufacturing, but as our name suggests, collective action at scale is our ambition — and we know we don’t have all the answers. Success will depend on alignment, input, and active participation from every part of the supply chain.

Building Together: What’s Working, What Needs Focus

Over the past few months, we’ve been hard at work building momentum and taking stock of our progress. A recent workshop in Hong Kong brought together teams from Cascale, Aii, and RESET Carbon to dig into our workstreams, accountability mechanisms, and, most importantly, to ask: are we working on the right things?

Here’s where we’re focusing our energy:

Low-Carbon Sourcing Commitments: We’ve heard loud and clear from manufacturers that the lack of a business case is the single biggest barrier to decarbonization. Our goal is to develop a carbon intensity benchmark and align brands around sourcing more volume from low-carbon facilities.
Manufacturer Engagement: For the some1,800 facilities driving 80 percent of manufacturing emissions, we’re building on proven engagement processes to help manufacturers adopt practical decarbonization strategies.
Data Integration: We’re leveraging the Higg Index to streamline data collection and reporting, ensuring these processes are both seamless and impactful.
Fundraising: Securing funding pathways to support the heavy lifting required for large-scale decarbonization.

At the core of these efforts are interventions designed to drive measurable progress — but we need your feedback and participation to ensure they’re on the mark. Whether it’s energy efficiency, renewable energy access, or thermal decarbonization, your input will help us refine these approaches and focus on what truly matters.

A Call for Collaboration

In early 2025, we will formally launch the IDR — a bold, industry-wide initiative to transform supply chain emissions. As we prepare for key milestones like the Cascale Forum: Ho Chi Minh, Vietnam, and the Cascale Annual Meeting in Hong Kong, we’re calling on brands, manufacturers, and stakeholders to join us in shaping this effort.

This is your opportunity to weigh in: Are we addressing the right challenges? Are the tools and interventions we’re building the ones you need to make meaningful progress? Let’s align now, so we can move forward with clarity and purpose.

Looking Ahead

2025 will be a critical year for the IDR. Vietnam will serve as a checkpoint to share progress, gather feedback, and refine our approach. By the time we reach Hong Kong, we aim to showcase concrete examples of what’s working and what’s next.

This work isn’t easy — but it’s worth it. Decarbonization isn’t just a goal; it’s a necessity. Together, we can build a pathway that works not just for the industry, but for the planet and its people. It’s time to move that needle!

So, let’s keep pushing, keep collaborating, and make 2025 a year to remember. The IDR is your roadmap as much as it is ours. We’re counting on your voice to make it stronger and to build a movement we can all be proud of.

News Updates / Cascale Explores MCAP and the Role of Collective Action in Driving Change

Cascale Explores MCAP and the Role of Collective Action in Driving Change

MCAP
Decarbonization

Photo of a man wearing a high vis vest and a hard hat adjusting a solar panel

December 12, 2024

Joyce Tsoi, senior director of the Decarbonization Program at Cascale, recently presented at the Bureau Veritas 3rd Sustainability and Supply Chain Quality Transformation Summit hosted by Rakesh Vazirani, director of decarbonization supply chain sustainability at Bureau Veritas.

The virtual event brought together brands and retailers committed to reducing carbon emissions, with many also including Scope 3 (upstream supply chain) targets.

A Cascale member, Bureau Veritas is a global leader in Testing, Inspection, and Certification (TIC) services. It helps its clients improve their performances by offering services and innovative solutions to ensure that their assets, products, infrastructure, and processes meet standards and regulations in terms of quality, health and safety, environmental protection, and social responsibility.

Tsoi kicked off her presentation by noting Cascale’s unique position as a global non-profit alliance to drive collective action to reduce climate impacts across the industry. She shared common challenges faced by factories and countries when developing science-based targets, noting the complex and fragmented nature of the supply chain and highlighting the relevance of mapping out upstream and downstream suppliers.

After emphasizing the importance of engaging with stakeholders across the value chain, Tsoi recommended it’s doable to set science-aligned targets (SATs) by identifying data owners and existing tools and platforms such as Higg FEM to gather facility-specific data from tier 1 to 3 that produce major emissions. She shared that while most manufacturers might not have a complete data set of the whole value chain from the start of the target-setting process, this is fine. It’s acceptable to use secondary data or life cycle inventory data to estimate emissions in the absence of complete data using the Higg Materials Sustainability Index (MSI). Very often, companies can gather more accurate data and insights over time and adjust their targets accordingly.

Tsoi highlighted that the Scope 1 direct emissions and Scope 2 indirect emissions were good levels for collecting concrete data and shared feedback from Cascale members, many of whom found the data collection and consolidation process is easier if their facilities and their upstream suppliers had already reported through the Higg Facility Environmental Module (FEM). Tsoi noted the difficulty manufacturers faced in emission accounting is the lack of in-house knowledge and expertise. She emphasized the need to develop capacity-building programs for manufacturers, like Cascale’s Manufacturer Climate Action Program (MCAP), to ensure the knowledge and skills can be scaled to support them step-by-step from target-setting process to eventually developing their decarbonization plan

Following an overview of Cascale and the Higg Index, Tsoi shared more information on MCAP, an initiative that provides a stepwise, intermediate, and pragmatic approach to accelerating target setting for manufacturers. She also shared insight on the origins and evolution of the program, highlighting Cascale’s collaboration with Nike to build and continuously improve, with the goal of evolving the program to become an industry standard.

Tsoi highlighted MCAP’s framework and how Cascale works with manufacturers to commit and set SATs for validation, evaluate their climate risks, develop a decarbonization plan, and communicate progress with stakeholders. She shared details of benefits, including peer-to-peer learning and best practice sharing in the industry, as well as technical advisory support, training, and guidance. She also detailed Cascale’s work with industry partners such as Apparel Impact Institute (aii) on financing opportunities.

For brands, Tsoi highlighted how MCAP provides a structured approach for them to engage and support manufacturers in setting SATs and getting started on climate action. She shared how this common approach to engaging with strategic suppliers to set targets reduced duplication of programs and allowed for cost-sharing between brands and manufacturers.

Asserting the importance of buy-in from top management and decision-makers, Tsoi shared the need for sufficient resources to support manufacturers in setting SATs and embarking on their decarbonization journeys, emphasizing the importance of having a clear target to track progress and move forward.

Finally, Tsoi recommended that small and medium enterprises (SMEs) follow a streamlined target-setting route with the Science Based Targets Initiative (SBTi), which facilitates a focus on measuring,setting and validating targets for their scope 1 and 2 emissions. She concluded her presentation by urging companies to take action and invited them to register their interest in learning more about MCAP and get the support they need to get started.

News Updates / Cascale, Worldly Host Climate Event, Mark Decarbonization Steps

Cascale, Worldly Host Climate Event, Mark Decarbonization Steps

Leadership
Decarbonization
Higg Index Tools
NY Climate Week

Aligned organizations Cascale and Worldly held a first-ever joint event during New York Climate Week. Cascale (formerly the Sustainable Apparel Coalition) is the global nonprofit alliance for the consumer goods industry; Worldly is the exclusive platform for Cascale’s Higg Index and the most comprehensive sustainability data and insights platform.

September 27, 2024

At the co-hosted “Chatting Climate & Consumer Goods” event held in New York City’s Garment District, speakers and attendees delivered deep supply chain decarbonization insights, building on presentations at the Cascale Annual Meeting and Worldly Customer Forum in Munich earlier this month. Attendees included Cascale members PVH, Patagonia, Lululemon, The Children’s Place, as well as guests including LVMH, among others. Hosts and speakers offered expertise on decarbonization, identifying improvements in supplier engagement, and setting science-based targets.

Colin Browne, CEO, Cascale; Scott Raskin, CEO, Worldly; and Tamar Hoek, Cascale Board Chair and senior policy director sustainable fashion, Solidaridad began the event with a call to action. “You only get so far with voluntary actions,” Browne said, outlining how sustainability regulation will change our workforce and become an imperative, while Raskin invited the audience to challenge the discussions adding, “Let’s not have the same conversations.” “If we really want to have a good future for future generations, then we have to save planet earth,” Hoek said, conveying hope but acknowledging the “long road ahead.”

In the first session, Lewis Perkins, president and CEO, Apparel Impact Institute, joined the stage alongside Browne for a conversation on “Scaling Decarbonization.” The executives discussed the collaborative work between Aii and Cascale and how the organizations are aligning on critical solutions and financing strategies. “Going forward, carbon is going to be an important metric.” Browne said of optimized sourcing strategies. “We need to do less to do more.”

Perkins outlined four components of the “Industry Decarbonization Roadmap,” or IDR, as well as Aii’s $250 million-dollar Fashion Climate Fund and interlinked Climate Solutions Portfolio. IDR is a roadmap for companies operating in regions where greenhouse gas emissions are highest to map, identify, and act. He then shared four key components to the IDR, which include a standardized technical methodology, development of a facility carbon benchmark, funding and financing, and engagement and commitment. “I’m not here to push debt on any suppliers,” he said, stressing that the “holy grail” for brands and retailers should be long-term partnership agreements. Perkins mentioned The Future Supplier Initiative, which aims to reduce the financial burden for suppliers by working in unity with fashion brands to lower costs.

Next, in a special pre-recorded session, “Manufacturer Message: Live from Jakarta,” Sunil Shewakramani, CEO Busana Apparel Group, and Andrew Martin, executive vice president of Cascale, discussed the synergy between brands and suppliers and the moral imperative to do right by people and planet. Shewakramani said doing good is a “competitive advantage” in terms of how the 49-year-old business looks at green investments. Busana Apparel Group ranks among the largest garment manufacturers and exporters globally, with 24 global facilities and a number of Leed Certifications from the Green Building Council. Martin emphasized Cascale’s intent to elevate manufacturers’ voices, to which Shewakramani added: “The whole thing needs to change from ‘I’ to ‘we.’”

After a networking break, Cascale’s director of Higg Transparency, Chris Marshall, joined the stage to moderate the panel “Climate Engagement and Action in Tier 2.” Speakers included Jimmy Summers, vice president – EHS/sustainability at Elevate Textiles, Inc.; Xiaofei Li, senior manager, material sustainability and transparency at Eileen Fisher; and Stefanie Kato, Worldly associate director of accounts.

“The thing that does motivate us is business — across the board,” said Summers. “One of the promises was that [the Higg Index] would reduce the number of audits — and promise delivered. We went from 12 audits at a facility to maybe three.” Kato spoke of the ways Worldly is match-making brands with suppliers in the same network, so data points are aligned, and. stressed the need for quicker frequency in data. Finally, Li shared how Eileen Fisher is approaching the Tier 2 decarbonization journey. “We worked very hard to have our suppliers adopt Higg FEM. To incentivize that we incorporated Higg FEM in our Tier 1 scorecard and Tier 2 mill scorecard,” she said, confirming the importance of supporting suppliers with expertise and financing.

In a final session, “Transparency In Action,” Worldly’s Scott Raskin and Natalie Grillon, CEO of Open Supply Hub, explored the potential for data harmonization in facilities. The organizations are in close collaboration offering an API integration for the data.

As moderator, Raskin explored several critical themes during the discussion. He began by asking Grillon to outline the latest developments at Open Supply Hub (OSH), seeking insight into its current priorities and areas of exciting progress. This set the stage for a deeper exploration of industry trends, particularly the movement toward data harmonization within the consumer goods sector, highlighting the growing importance of integrated and standardized data. He also delved into how the adoption of OSH by multi-stakeholder initiatives (MSIs) improves collaboration across supply chains, reflecting his interest in how these partnerships can strengthen supply chain relationships and shared goals. He reinforced that transparency in data is Worldly’s mission.

Grillon gave a recap of her career trajectory working in international development with farmers in countries from Uganda to Mali before founding Open Supply Hub in 2019. Since its launch, Open Supply Hub has expanded its mandate into broader consumer goods and now has nearly 500,000 users today across the value chain, with a target of five million by 2026. Through the platform, users can access information on facility names and locations, as well as organizations affiliated with a specific facility, which promotes shared solutions. “The idea behind these initiatives is shared progress,” Grillon said.

Blogs / Reflections on the Founding of Cascale: A Vision That Endures

Reflections on the Founding of Cascale: A Vision That Endures

Decarbonization
Annual Meeting
Higg Index Tools

Cascale’s co-founder reflects on the organization’s origins and roadmap for future success from the Annual Meeting in Munich.

Rick Ridgeway

September 20, 2024

In 2010, a conversation between Patagonia and Walmart sparked an idea that would reshape the sustainability landscape for the apparel and footwear industry.

At the time, I was at Patagonia, working on environmental initiatives, when Walmart approached us for feedback on a supplier scorecard they were developing. It was a basic concept, but it got me thinking—what if we could build a coalition of apparel and footwear companies to develop a robust, industry-wide standard for measuring sustainability? It was a long shot, but we accepted the challenge and we code-named the effort “David and Goliath,” borrowing inspiration from the timeless fight between unmatched strengths. Walmart surprised us—they wanted to be David, and Patagonia would be Goliath.

From the beginning, we knew the initiative needed to go beyond just brands and manufacturers. We aimed to create a multi-stakeholder alliance that included NGOs, governments, academia, and other key players. This inclusive approach was critical to ensuring that the solutions we developed were robust, credible, and widely accepted.

A Mission Rooted in Collaboration and Pragmatism

The founding principles of Cascale were straightforward but ambitious: Build on existing work to move quickly and don’t let perfection stand in the way of progress. With these values in mind, we reached out to CEOs of various companies, NGOs, and universities to establish a universally-accepted approach for measuring sustainability in the apparel sector. This effort quickly gained traction, and the group, originally named the Sustainable Apparel Coalition, grew rapidly.

Our early vision was simple yet ambitious: Create business value by reducing environmental impact and increasing social justice across the value chain. The strategy was also simple yet ambitious: manage impact by measurement that was deep, wide and standardized. To help understand how strategy could lead to vision, we brought in a team of complex systems analysts from the Massachusetts Institute of Technology (MIT) to map out a measurement tool–an index–that, put in the hands of key decision-makers, could incentivize them to make better decisions.

The MIT team gave us a Theory of Change and we built a 1.0 version of the tool. But we needed a name for the tool that could transcend apparel. At the same time, we learned that a group of physicists had discovered a subatomic particle that was going to unify the universe, and they were going to call it the Higgs Boson. I smiled and said, “If the Higgs Boson particle is going to unify the universe, then the Higg Index was going to save it.

Sharing Our Vision in Munich

At Cascale’s recent Annual Meeting in Munich, I had the opportunity to reflect on these early days and share why our founding mission remains as critical today as it was over a decade ago. The challenges we set out to address then—fragmented efforts and outdated practices—are still prevalent. Today, the urgency is even greater. Emissions are on track to be 2.5 times higher than needed by 2030 if we don’t act decisively. Cascale was created to provide a unified solution to these industry-wide challenges, and the need for a coordinated, collective effort is now more important than ever. From its simple spreadsheet origins, the Higg Index has evolved into a critical suite of tools relied on by over 40,000 users to decrease environmental impact and increase social justice unlike any other industry.

The Path Forward: Accountability, Transparency, and Collective Action

One of the key points I shared in Munich was the importance of accountability and transparency—areas where Cascale has made progress but where there is still much work to do. Cascale’s strength lies in its ability to unite diverse perspectives and drive collective action. The Higg Index continues to provide essential data and insights that empower decision-makers across the value chain to make better, more informed choices, but we have to hold the industry to account for its performance..

Looking ahead, Cascale is uniquely positioned to lead the industry towards a more sustainable future – especially in the critical area of decarbonization. By focusing on key areas like eliminating coal, increasing renewable energy use, and improving energy efficiency, and by working closely with partners like the Apparel Impact Institute and RESET Carbon, Cascale is building an Industry Decarbonization Roadmap that supports suppliers in making meaningful reductions.

Why Cascale’s Original Vision Still Matters

Reflecting on our journey, it’s clear that Cascale’s founding principles are just as relevant today. The idea that brought us together remains the guiding force behind every initiative. The potential is enormous, and with the right tools, partnerships, and a commitment to continuous improvement, Cascale stands ready to guide the industry forward.

The Higg Index may not literally save the universe, but it represents our best attempt at saving our one and only home planet.

Case Studies / Gap Inc. Leads the Charge in Sustainability Through Supplier Engagement in MCAP

Gap Inc. Leads the Charge in Sustainability Through Supplier Engagement in MCAP

Brands & Retailers
MCAP
Decarbonization
Collective Action

By embracing initiatives like MCAP, Gap Inc. helps its suppliers set science-aligned targets to significantly reduce GHG emissions and drive meaningful environmental change across the industry.

August 27, 2024

Gap, Inc., a global fashion retailer and Cascale member since 2013, consistently demonstrates its commitment to sustainability.

Gap Inc. has pledged to reduce its environmental footprint through innovative initiatives and collaborative efforts, such as Cascale’s Manufacturer Climate Action Program (MCAP), which accelerates the adoption of science-aligned targets (SATs) and fosters a culture of collaborative sustainability within the consumer goods industry.

Gap Inc.’s 2023 ESG Report highlights significant progress toward its sustainability goals, demonstrating the company’s commitment to reducing its environmental impact. The report outlines two major emissions-related targets:

Scope 1 and 2 GHG Emissions: Gap Inc. aims to reduce these emissions by 90 percent from a 2017 baseline by 2030. Impressively, the company has already achieved a 77 percent reduction between 2017 and 2022, showcasing substantial progress toward this ambitious goal.
Scope 3 GHG Emissions: Gap Inc. is working to reduce emissions from purchased goods and services by 30 percent from a 2017 baseline by 2030. The company is on track, having achieved a 16 percent reduction from 2017 to 2022.

Additionally, Gap Inc. set a goal for 80 percent of its sourcing to be allocated to green-rated factories by 2025. This goal was surpassed in 2023, with 87 percent of business spending allocated to green-rated factories.

These milestones reflect Gap Inc.’s dedication to sustainability and its proactive approach to environmental stewardship across its operations and supply chain.

Supplier Engagement and Collaboration

Central to Gap Inc.’s sustainability strategy is active engagement with suppliers. Recognizing that meaningful change requires collaborative efforts, Gap Inc. coordinated with three key suppliers — Hansae Co Ltd, Makalot Industrial Co Ltd, and Yakjin Trading Corp — to engage in MCAP. After participating in MCAP, the three suppliers completed setting their SATs, and their targets were validated by either TÜV Rheinland, BV, or SGS. The validated targets have been reviewed and approved by Cascale, and their MCAP status will be publicly disclosed on the MCAP Disclosure Dashboard.

MCAP is a pivotal initiative within Cascale’s Decarbonization Program, uniting manufacturers worldwide to combat climate change in the consumer goods industry. MCAP drives sustainable change through science-aligned targets (SATs), aiming for a 45 percent reduction in greenhouse gas emissions by 2030. This effort is aligned with the goal of limiting global temperature increases to 1.5°C above pre-industrial levels.

Impact of MCAP and Higg Index Tools

Gap Inc.’s engagement with its suppliers, MCAP, and the Higg Index tools underscores its commitment to sustainability and climate action. By working closely with suppliers like Hansae, Markalot, and Yakjin, Gap Inc. has achieved significant environmental improvements. These efforts highlight the spirit of collaboration and dedication within the consumer goods industry, showcasing the impactful results of strategic supplier engagement to combat climate change.

Supplier Sustainability Program

Gap Inc.’s Supplier Sustainability program focuses on social and environmental issues. It uses remediation practices and a compliance rating system to incentivize suppliers to implement proper labor, health, safety, and environmental standards. This approach aims to protect and support workers, improve air and water quality, increase energy efficiency, and minimize violations across the supply chain.

Initially, Gap Inc.’s Supplier Sustainability team focused on Tier 1 of the supply chain but is now expanding efforts to Tier 2 and 3 suppliers. They use industry tools like the Social & Labor Convergence Program (SLCP) Converged Assessment Framework and the Higg Index Facility Environmental Module (FEM) to assess and collaborate with suppliers to develop capacity-building and efficiency programs.

Leading by Example

Gap, Inc. continues to lead by example, demonstrating that meaningful change is possible when industry leaders and their partners work together toward common goals. By engaging with MCAP and its strategic suppliers and using the Higg Index tools, Gap Inc. has made significant strides in reducing its environmental footprint and fostering a sustainable supply chain. This proactive approach sets a benchmark for others in the industry, contributing to a more sustainable future for all.

Learn more about Cascale's MCAP Read Gap Inc.'s 2023 ESG Report Not yet a member? Explore membership

News Updates / Cascale Offers Insights at ITMAconnect Innovator Xchange

Cascale Offers Insights at ITMAconnect Innovator Xchange

Partnership and Collaboration
Decarbonization

Joyce Tsoi, senior director of the Decarbonization Program at Cascale, joined a panel on “Sustainability and Finance in the World of Textiles” at the ITMAconnect Innovator Xchange Virtual Edition last month.

May 09, 2024

Joyce Tsoi, senior director of the Decarbonization Program at Cascale, joined a panel on “Sustainability and Finance in the World of Textiles” at the ITMAconnect Innovator Xchange Virtual Edition last month.

Moderated by Jeroen Vits, managing director of ITMA Services, Brussels, the panel also included Ryan Gaines, chief financial officer of Apparel Impact Institute, a Cascale partner, and Michael Rattinger, senior climate change specialist at Asian Development Bank.

Designed to offer perspective and insights on the intersection between sustainability and finance in the global textile supply chain, the panelists discussed sustainability requirements set by global brands and retailers and their impact on the global textile supply chain. Participants also shed light on financial instruments for the textile industry to realize its sustainable transformation demanded by many stakeholders.

Tsoi shared that ITMA is well positioned to weigh in on the transformations in the supply chain, a subject on which Cascale and collaborators are increasingly focused. She detailed how Aii and Cascale formed a strategic partnership in 2023 in order to expand impact and scale the collective knowledge base. Then stakeholders can align on funding, decision-making, and ultimately, accelerate action. For Aii, this chiefly involves Fashion Climate Fund and Climate Solutions Portfolio, which is meant to accelerate action and drive emissions reduction. Cascale’s focus is the Decarbonization Program and corresponding science-aligned targets (SATs) adoption, part of Cascale’s growing program base that is guided by the organization’s “Evolution for Impact” strategy.

With more than 300 members worldwide – including brands and retailers, manufacturers, and affiliate members – Tsoi shared that Cascale effectively represents half of the apparel, textiles, and footwear industry, in terms of revenue. She recommended brands and retailers utilize the Higg Index suite of tools and nominate their suppliers to participate in programs to improve energy efficiency and/or adopt solar rooftops at the facility level. Tsoi advised that brands communicate their climate goals and targets clearly with their suppliers and build deeper engagement on decarbonization intervention projects. These included coal phase out, optimizing energy efficiencies in production, and transitioning to low-carbon or renewable energy fuels or technologies. Overall, she said, the sector needs to realize significant decarbonization efforts in order to keep the global temperature rise within the 1.5-degree Celsius limit by 2030.

Finally, Tsoi shared a promising outlook for textile recycling, which can help to conserve resources in textile production and improve efficiencies. She called for the continued investment in developing these advanced technologies and infrastructure to boost the collection, sorting, and processing of textile waste, as well as research and development of using innovative materials.