How the Higg BRM Supports CSRD Reporting Obligations
Now Available: Download our white paper on Higg BRM Alignment with CSRD. See how the tool supports companies in meeting their regulatory reporting obligations.
Discover how Sappi harnesses data and innovation to pave the way toward a sustainable future and set new industry benchmarks.
— Tom Radovich, Managing Director, Cloquet Mill, Sappi North America.
In a significant achievement, Sappi’s Cloquet Mill in Cloquet, Minnesota, is one of the first dissolving pulp facilities to complete an external environmental management verification process.
The mill achieved an overall score of 91.5 percent in 2022 in the Higg Facility Environmental Model (Higg FEM) audit, earning a verified score of 100 percent in the categories of energy, water, and wastewater management. According to Andrew Krelyne Andrew, general manager, sustainability for Verve, Cloquet Mill has been adopting and verifying the Higg FEM for five years. Dissolving pulp manufactured at the Cloquet Mill meets EU Ecolabel requirements for textile and non-woven wood-based fibers, and Verve from the Cloquet operation continues to remain a fiber of choice for their customers.
The Cloquet Mill, one of the newest modern pulp mills in North America, is ISO 14001-certified and has recently undergone significant process improvements from award-winning projects1 targeting water-use reduction, energy savings, and improving pollution control through equipment upgrades to the boilers. Today, over 80 percent of the mill’s total energy use is from renewable resources, and over 90 percent of the power used is generated on-site from renewable fuels.
Leveraging the power of data and insights from the Higg FEM, Sappi not only tracks and reports annual energy use and carbon emissions but also identifies and prioritizes areas for performance improvement. Cloquet achieves these excellent results through the use of live, online monitoring of various process parameters and focuses on areas that allow for continuous improvement coupled with capital investments.
Cascale manufacturer member Sappi is a leading global provider of everyday materials crafted from wood-based fiber from renewable resources, with raw materials including dissolving pulp, wood pulp, and biomaterials. Aligned with their Thrive strategy, Sappi has set and achieved ambitious sustainability initiatives that include greenhouse gas reduction, specific energy reduction, and landfilled waste reduction. Sappi’s Cloquet Mill prioritizes the protection of the environment through pollution prevention and manufacturing efficiency.
Headquartered in Johannesburg, South Africa, Sappi employs over 12,000 individuals in manufacturing facilities in nine countries on three continents. Sappi is a diversified, innovative, and trusted leader focused on sustainable processes and products, building a more circular economy using every part of the tree.
1 Sappi’s Cloquet Mill won the American Forest & Paper Association’s 2023 Leadership in Sustainability Award for Water Management for its “Cloquet Mill Effluent TSS Reduction” project, which was designed to find a new chemical treatment program to reduce the total suspended solids (TSS) and biological oxygen demand (BOD) substances in the mill’s effluent, thereby reducing the load being sent to the Western Lake Superior Sanitary District in Minnesota. The project achieved an immediate and consistent reduction in TSS of 11,500 lbs. per day, a reduction in BOD of 1,800 lbs. per day, and a reduction in mercury to the sanitary district from 37.9 ppt to 6.3 ppt.
With reporting compliance around the corner, Cascale published a white paper showcasing how the Higg Brand and Retail Module (Higg BRM) is answering the call.
In the face of today’s challenging and ever-changing legislative landscape, brands and retailers require reliable tools to support them in meeting compliance requirements. In short, The Corporate Sustainability Reporting Directive (CSRD) mandates the development of detailed reporting standards, known as the European Sustainability Reporting Standards (ESRS). In 2025, companies subject to reporting will be required to comply with CSRD by reporting 2024 data. The CSRD amends and strengthens the existing Non-Financial Reporting Directive (NFRD). Compared to NFRD the CSRD reporting process will be more complex, comprehensive, and stringent.
The Cascale team has been readying for regulation with its Higg Index toolset.
Although not designed to be a comprehensive compliance sweep, the Higg Brand and Retail Module answers many of the ESRS reporting requirements while providing companies detailed mapping against ESRS topical standards. Each topical standard includes disclosure requirements that organizations must follow to report on their sustainability impacts, risks, opportunities, and performance related to the specific topic.
Regarding Cascale’s recently published Higg BRM x CSRD white paper, Maravillas Rodriguez Zarco, senior director, Higg Index strategy and operations at Cascale said, “We are dedicated to ensuring the latest version of Higg BRM is fit for purpose in supporting our members in their compliance journeys, especially as the white paper has shown for the European Union’s Corporate Sustainability Reporting Directive (CSRD). As it exists today, we know the tool is a valuable asset for users that have to report following ESRS. The Higg BRM will continue to play a pivotal role in the regulatory compliance process. With the Higg BRM, consumer goods companies can not only meet relevant regulatory requirements but elevate their sustainability performance.”
In their compliance journey, companies will need to undertake a double materiality assessment, per EU law.
The double materiality assessment means a company has to conduct an impact materiality assessment and a financial materiality assessment, showcasing clear consideration to people and the planet.
The Higg BRM specifically supports users with its impact materiality assessment The ESRS also acknowledges the importance of “entity-specific disclosures.” Uniquely, the Higg BRM presents an opportunity to assist users in disclosing industry-specific material topics with the necessary depth and granularity. These are nuanced topics that the agnostic ESRS may not cover adequately.
In the future, the Higg BRM team will further enhance tool alignment with the CSRD and other relevant regulations. By identifying and bridging gaps, the Higg BRM will further support stakeholders in achieving a more structured and transparent approach to sustainability reporting.
In an era where sustainability reporting is more critical than ever, Cascale’s Higg BRM is leading the charge to help brands meet new EU standards.
In an era where sustainability reporting is more critical than ever, Cascale’s Higg BRM is leading the charge to help brands meet new EU standards
Amsterdam, Hong Kong, Oakland (CA) — August 14, 2024: Cascale, formerly the Sustainable Apparel Coalition, has published a white paper that details how the organization’s Higg Brand & Retail Module (BRM) can help companies meet their regulatory reporting obligations under European Union (EU) law. The paper, titled “How the Higg BRM Supports CSRD Reporting Obligations,” speaks specifically to how the tool is continually evolving to support companies in meeting their regulatory reporting requirements under the EU’s Corporate Sustainability Reporting Directive (CSRD).
In the face of today’s challenging and ever-changing legislative landscape, brands and retailers require reliable tools to support them in meeting compliance requirements. The Higg BRM is the leading framework specific to the textile, apparel, and footwear industry designed for brands and retailers to evaluate, assess, and improve Environmental, Social, and Governance (ESG) performance. The tool assesses 11 critical impact areas along global value chains to foster a holistic approach to sustainability, and is exclusively available on Worldly, the most comprehensive sustainability data and insights platform.
“Through continuous evolution and updates, the Higg BRM empowers organizations to not only meet relevant regulatory requirements, but to forge ahead with impactful, data-driven sustainability strategies,” said Maravillas Rodriguez Zarco, senior director, Higg Index strategy & operations at Cascale. “The Higg BRM plays a pivotal role for companies who are navigating this complex regulatory landscape.”
The Higg BRM has evolved to assist brands and retailers in fulfilling reporting obligations, while also supporting companies in the development of consistent corporate sustainability strategies to streamline efforts and reduce redundancy across sustainability initiatives. Beginning in 2024, Cascale conducted a thorough analysis of the European Sustainability Reporting Standards (ESRS), which provides specific guidance on how companies should report on sustainability. Cascale mapped how the standards align with the Higg BRM, offering a clear pathway for organizations aiming to comply with ESRS. As detailed in the white paper, there is a 65 percent content overlap between the ESRS and the Higg BRM.
While the Higg BRM aligns broadly with ESRS on sustainability topics, it also delves deeper into issues that are specific to the textile, apparel, and footwear sector. This focus on sector-specific material issues ensures Higg BRM users can expect a comprehensive tool that not only meets general reporting requirements but also emphasizes the nuances and priorities unique to the industry.
Cascale is currently hosting an ongoing webinar series titled “Navigating Legislation & the Higg Index,” which highlights how the Higg Index tools serve as a valuable resource and can offer specific guidance on reporting requirements. The most recent webinar, co-hosted by Cascale and Worldly, provided an in-depth discussion on how the Higg BRM intersects with key pieces of legislation at the EU level, such as the CSRD.
Cascale is committed to continuously evolving, updating, and refining the Higg Index to meet the needs of its members, Higg Index users, and the industry. In collaboration with Worldly, the Higg BRM will be further refined to enhance alignment with the CSRD and other relevant regulations. By identifying and bridging gaps, the Higg BRM continues to support stakeholders in achieving a more structured and transparent approach to sustainability reporting.
About CSRD
The CSRD represents a significant leap forward in the corporate reporting landscape within the European Union. It is a directive that requires transposition into the national law of all 27 EU Member States, establishing its requirements as legally binding for companies within its scope. The goal of the CSRD is to enhance the scope and quality of sustainability reporting across the EU, ensuring that sustainability disclosures are more consistent, comparable, and reliable for stakeholders to make informed decisions.
To achieve this, the CSRD mandates the development of the European Sustainability Reporting Standards (ESRS). Designed by the European Financial Reporting Advisory Group (EFRAG), the ESRS provides specific guidance on how companies should report on sustainability. These standards require companies to provide detailed disclosures encompassing qualitative and quantitative information across a range of sustainability topics, such as climate change, environmental protection, social rights, and employee matters.
About Cascale
Cascale is the global nonprofit alliance empowering collaboration to drive equitable and restorative business practices in the consumer goods industry. Formerly known as the Sustainable Apparel Coalition, Cascale owns and develops the Higg Index, which is exclusively available on Worldly, the most comprehensive sustainability data and insights platform. Cascale unites over 300 retailers, brands, manufacturers, governments, academics, and NGO/nonprofit affiliates around the globe through one singular vision: To catalyze impact at scale and give back more than we take to the planet and its people.
In this paper, we articulate exactly how the Higg Brand and Retail Module (Higg BRM) can assist brands and retailers (undertakings) in fulfilling their reporting requirements under the European Union’s (EU) Corporate Sustainability Reporting Directive (CSRD), while also helping to develop consistent corporate sustainability strategies and avoid duplication across sustainability initiatives.
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The Sustainable Fashion Forum 2024 took place April 17 to 19 in Austin, Texas, convening a number of sustainable fashion professionals.
Topics spanned everything from labor rights to regulatory changes. The event began with workshops on policy and circularity, including an immersive upcycling activity featuring Cascale members Everlane and Eastman, as well as two full days of programming. Networking opportunities were plentiful, hosted at venues throughout the city.
Cascale’s editorial director Kaley Roshitsh and Melissa Ortuño de León, senior manager, Higg Product Tools, both participated in the event and moderated conversations.
In one conversation, “Achieving Profitability as a Small Brand,” Jan Lo, co-founder and chief executive officer at Lo&Sons spoke of the trade-offs of owning a small business. He detailed the aims of his growing business which includes strategic decision-making across his value chain, be it recycled materials or flat-packing products.
The co-founder also treated the audience to samples of Lo&Sons’ “Catalina Deluxe” tote made of recycled polyester, with utility uniquely inspired by his former New York City DJ career.
Lo is also on the board of Yale University’s Center for Business and the Environment, offering support to entrepreneurs. His advice to early-career professionals is to be willing to pursue the “not-so-glamorous job title,” often found in supply chain or operations roles.
In another panel conversation titled “Who’s at the Table: Embracing Global Voices in Fashion’s Circular Future,” experts Charles Oyamo, co-founder and CEO, Rethread Africa; Yayra Agbofah, founder at The Revival and consultancy AfroDistrict; and Sandra Gonza, senior sustainability strategist, Quantis International; traced the arc of circularity.
The panelists discussed the urgency to fundamentally transform the existing fashion system and embrace circularity while calling for major funding inroads to support their work. A former clothing market trader in Ghana’s Kantamanto Market, Agbofah shared how his community-led initiative The Revival is turning consumer textile waste exported into West Africa – into art. Meanwhile, Oyamo spoke of the reality of scaling his agrowaste fiber. Throughout the conversation, Gonza offered her strategic perspective including how she is working with brands to develop transformational sustainability programs.
In another panel conversation, Sanchita Saxena, senior advisor of supply chain at Article One, and Sheela Ahluwalia, director of policy and advocacy at Transparentem, spoke of the audit-dodging practices that persist in the apparel and textile industry.
“Many suppliers are saying, ‘I don’t think it’s ever possible there’s a true partnerships… We have to think of beyond just doing the minimum,” said Saxena, calling for the reframing of “rightsholders over stakeholders.”
In a separate policy presentation, Michelle Gabriel, graduate program director of sustainable fashion at Glasgow Caledonian College New York City said being a consumer is a “disempowered identity,” arguing for a citizen-first approach. She championed regulatory changes adding, “Businesses today face a competitive disadvantage for engaging in sustainability.”
In March, Cascale and Worldly held a webinar, “Navigating Legislation & the Higg Index: Higg Product Tools with PEF and more.” In this blog, we share the recording, highlight key takeaways, and address submitted questions during the session.
Key Takeaways
“The PEF methodology is likely to play an important role in the future EU product and consumer law legislation. The Higg Product Tools methodology is well-positioned for alignment with Product Environmental Footprint (PEF)/PEF Category Rules (PEFCR), and the Higg Product Tools can support members in navigating evolving legislations and provide guidance in their compliance journeys.” –Elisabeth von Reitzenstein, senior director of policy and public affairs
“France has been, and probably will be for the foreseeable future, a frontrunner on sustainability legislation….The French label is based on a type of PEF. It has very strong alignment with the European Product Environmental Footprint principles. One difference on durability is that the French Methodology also includes ‘emotional durability’ to a more committed extent than the European one. This proves again that a common method on PEF is important…Another new French initiative is a draft bill targeting fast fashion and sometimes ultra-fast fashion… Also on the European level, France is fighting its corner on these issues. At a Council of the EU meeting on March 25, it called, alongside Sweden and Denmark, for an EU-wide export ban of hazardous textile waste to developing countries.” – Elisabeth von Reitzenstein, senior director of policy and public affairs
“Through our partnership with Cascale, Worldly is paying close attention to this regulatory landscape and what our customers need in order to prepare and report on their sustainability performance and progress. My team meets at minimum weekly with Cascale to get deep into the weeds on PEF, how it’s evolving, and what it means for our tools and the solutions we’re delivering. The Cascale team also helps us understand the challenges the industry is facing firsthand and ways to address it in the tools. Data is going to play a critical role in many, if not all, of these reporting requirements.” – Paula Bernstein, senior data manager, Worldly
“The concept of accessibility is really key for the Product Tools because we want a variety of users with different levels of LCA knowledge, as well as data availability to produce consistent environmental product footprint results.” – Quinten Geleijnse, manager, Higg Product Tools and lifecycle assessments
“Like the rest of the Higg Index Tools, we don’t want the sole purpose of the tools to be compliance – the tools should be going beyond regulation. We’re not just trying to have a PEF-compliant calculator. That is not ambitious enough to get the industry on track to where it needs to be. [The Higg Index] needs to be aligned with PEF, at minimum for compliance, but we do need to go beyond that.” – Joel Mertens, director, Higg Product Tools
“There are a lot of commonalities between Higg Index Product Tools, PEF, and France’s Ademe methodology but we do expect that even with the same product information, it is very likely you will have different results depending on which methodology you’re calculating to or which region you’re calculating to…One of the important things is while there are differences in the results, the impact categories, the data needs, there is a way to bring this all together, and that is the hub concept.” – Mertens
“One of the key aspects here is the difference between a footprint calculation and a footprint study, or LCA study. Our tools are calculating an environmental footprint of a product. An LCA study is distinct from the footprint calculation. There are additional requirements that have to be done to take you to that full study level, including a report and verification.” – Mertens
“PEF is an implementation of ISO-1440 and 44 standards. There are study requirements associated with that that I think get lost in the narrative. As to other tools in this space, the one thing I will say right now is there is not a final PEFCR for apparel and footwear. There are a lot of claims and misunderstandings as to what you can say in terms of compliance to PEF and PEFCR, and there’s no such thing at this point.” – Mertens
Questions Answered
On the webinar, speakers discussed relevant EU legislation and initiatives, including:
These regulations relate in different ways to the Product Environmental Footprint (PEF) method and product footprinting in general. CSRD requires a thorough assessment of an organization’s impacts, risks, and opportunities, and specifically mentions PEF as a way to assess these. In addition, the calculation of scope 3 emissions is required under ESRS E1, for which LCAs and/or PEF studies are useful. ESPR will likely require environmental impacts to be communicated to external stakeholders through the Digital Product Passport, for which PEF and LCA studies can be used. The European Commission proposal for the SGCD sees a more diminished role for PEF in its current form than initially foreseen. Although PEF might not become a mandatory requirement itself under SGCD, the more simplified procedure now pursued may include a presumption of conformity for environmental claims that are based on recognized methods, such as PEF. The French labeling law is based on calculations obtained from a central database run by Ecobalyse and the Agency for Ecological Transition (ADEME). This method is inspired by PEF but has some noticeable differences.
The PEF category rules (PEFCR) contain specific rules for product categories that complement the PEF methodology. The rules direct focus to the parameters relevant to that specific product group, further standardizing the methodology. The Technical Secretariats (TS) of the EU develop these PEFCRs, and Cascale coordinates the TS developing the PEFCR for Apparel & Footwear, which includes determining the product-specific methodology and primary data requirements. The TS does not determine what secondary datasets are to be used and has to stay in line with the general PEF methodology. The PEFCR is expected to be finalized in Q1 of 2025 and is currently in its consultation phase.
The Higg Product Tools aim to guide product eco-design decisions by providing reliable, high-quality data. Given the legislative developments and the changing data requirements that they cause, the Product Tools should evolve accordingly. Our objective is to develop the Product Tools as a hub that allows different users (with different levels of data availability and LCA knowledge) to compute different types of results for different purposes. This means users can continue to identify impact hotspots and calculate scope 3 emissions, while we expand the tools’ functionalities to allow for PEF calculations. It is important to note that PEF compliance entails more than calculations only as PEF requires an extensive study report that has to be verified by a third party.
Some steps towards PEF-aligned calculations have already been taken by Cascale and Worldly. The current Product Module methodology was developed in alignment with the 2021 version of the PEFCR. This means the Product Tools are already well set up to expand towards PEF-aligned calculations. The team has mapped the key remaining differences between the current Product Tools methodology and emerging regulatory frameworks. This exercise informs Cascale’s product information Member Expert Team (MET) that currently helps define the product-relevant information fields the Product Tools need to contain to align with the data requirements of various frameworks, including PEF, ADEME, and the DPP. As indicated by the workstream flow chart below, Cascale will begin integrating the ADEME and PEF calculation methodologies with the Product Tools when they are finalized. In the meantime, work with the Product Information and Product Impact MET and continue to develop the tools’ hub functionality.
Cascale is working with Wordly to create a harmonized set of information fields for the Product Tools, containing all required information from the different legislative frameworks and distinguishing between mandatory, recommended, and optional data points. This allows users to compute different types of results based on a single set of information and enables the provision of at least some results when limited data is available. Cascale will also expand its current list of five impact categories to the 16 impact categories specified in the PEF methodology. To enable different result types to be computed, different calculation methodologies will have to be integrated into the Product Tools, some of which rely on different datasets than those currently used in the tools. Cascale is working together with Wordly to allow for parallel impact calculations and add these new (EF) datasets to the tools.
Please note that the visual is taken from the webinar slide deck and the timeline reflects the March 27, 2024 webinar date. Depending on when you are viewing this blog post, the visual may be out of date.
Cascale and Worldly are working together to expand the Product Tools to enable users to select the energy mix used to manufacture their products. This will ensure the country or facility-specific energy mix is considered in the calculations, providing more precise impact calculations. A next step will be to connect the Higg Product Tools with the Higg Facility Environmental Module (FEM) to enable the sharing of facility data to be used for product impact calculations.
While many of our members can and are already using the product tools for homeware and home textiles, PEF currently is explicit for “Apparel and Footwear.” The sectors the EU Commission has identified for PEF are the following:
However, the Product Tools may still be used to assess adjacent products such as home textiles. Even our current Product Module tool has an option for an “other” product category, which is being used by some members to assess these types of products.
If you have any remaining questions, we invite you to email us at marcomm@cascale.org.
In the world of physics, few names carry as much weight as Peter Higgs.
Yet, it’s in the realm of sustainability where his legacy finds a surprising homage. Higgs, who died Tuesday at age 94 in Edinburgh, Scotland, received the Nobel prize for physics in 2013 for his work on the boson particle.
The Higgs boson particle would forever shape humanity’s understanding of atoms – and at Cascale, it served as inspiration for the Higg Index tools. Today, these tools are used by 24,000 businesses worldwide, empowering collaboration to drive equitable and restorative business practices in the consumer goods industry.
At Cascale’s recent rebrand celebratory event in London, co-founder Rick Ridgeway shared the story of how Higgs’ breakthrough announcement impacted the organization’s earliest days. “They had just discovered a subatomic particle [that] was going to unify the universe, Ridgeway said. “They were going to announce it about the same time we wanted to release our tool…I said, ‘If the Higgs boson atomic particle is going to unify the universe, the Higg assessment tool is going to save it.’”
Much of Higgs’ lifetime of work took place at Edinburgh University, and, in 2012, the institution set up the Higgs Centre for Theoretical Physics in his honor – the same year his theory was accepted and proven by scientists at The Large Hadron Collider at Cern in Switzerland. Decades of collaboration also went into the discovery: Higgs shared the Nobel prize with Belgian theoretical physicist François Englert, whose work directly contributed to the particle’s discovery.
Higgs’ legacy continues to inspire, as use of the Higg Index tools expands across the consumer goods industry, accelerating adoption of science-aligned targets through the Decarbonization, Manufacturer Climate Action Programs (MCAP), and other impact programs. This example is just one of the many synergies between industry and science in pursuit of a better planet.
Webinar series will help prepare Cascale members and users of the Higg Index tools for compliance with current and emerging legislation impacting the global consumer goods industry.
Cascale, the global nonprofit alliance formerly known as the Sustainable Apparel Coalition, is set to launch a crucial webinar series in 2024.
Designed to navigate the complex regulatory landscape, this series will guide over 24,000 Higg Index users through compliance with current and upcoming EU and national legislation. This effort underscores Cascale’s commitment to equipping the consumer goods industry with the tools necessary for sustainability performance improvement amidst evolving regulations.
“The recently adopted Corporate Sustainability Due Diligence Directive by the Council of the EU underscores the importance of companies understanding the impact of new pieces of legislation and how tools like the Higg Index can support their compliance journey and due diligence process,” said Elisabeth von Reitzenstein, senior director, public affairs at Cascale. “We are proud of the work that goes into updating the Higg Index suite of tools to align with relevant existing and upcoming legislation that will help shift the consumer goods industry to one that gives back more than it takes to people and the planet.”
The “Navigating Legislation & the Higg Index” webinar series kicks off on March 27 with an inaugural webinar on how the Higg Product Tools intersect with key legislation such as Product Environmental Footprint (PEF), Ecodesign for Sustainable Products Regulation (ESPR), and Substantiating Green Claims Directive (SGCD). This webinar is open to all and attendees will receive summary materials; please click here to register.
Future sessions will explore how the Higg BRM tool complements legislation such as the European Union’s Corporate Sustainability Reporting Directive (CSRD), which entered into force in January 2023, as well as how the Higg Facility Tools align with relevant legislation like CSRD and the Corporate Sustainability Due Diligence Directive (CS3D), a European directive that is expected to be finalized in the upcoming weeks and will require due diligence for companies to prevent adverse social and environmental impacts across their value chains. The discussions will continue at Cascale events throughout the year; please click here to receive more information.
Cascale serves as a catalyst for standardized sustainability performance measurement across the consumer goods industry. Recognizing the evolving regulatory landscape, the organization initiated comprehensive analyses to map the Higg Index suite of tools with relevant existing and upcoming EU and national legislation. These analyses form the basis of the “Navigating Legislation & the Higg Index” webinar series and accompanying resources and, by identifying existing and future gaps, help inform the continuous evolution of the tools alongside regulatory changes to facilitate proactive alignment. In November 2023, Cascale published a summary report outlining the key insights gleaned from these analyses. By advocating for the tools’ continued relevance, Cascale empowers its members to navigate complex regulatory requirements with confidence.
In tandem with the webinar series, Cascale will provide its members with updates and resources to help them navigate the regulatory landscape, emphasizing how the Higg Index aligns with their legislative obligations and due diligence requirements. Click here to learn more about becoming a member.
CASCALE AND THE HIGG INDEX
Cascale’s Higg Index suite of tools is comprised of five modules: the Higg Facility Environmental Module (FEM), Higg Facility Social & Labor Module (FSLM), Higg Brand & Retail Module (BRM), Higg Materials Sustainability Index (MSI), and Higg Product Module (PM). These tools are designed to enhance standardized sustainability practices and performance for the consumer goods industry; in many cases, the tools can also support compliance and legislative requirements.
CASCALE AND PEF/PEFCR/CSRD
Cascale actively advocates and collaborates with policymakers, which includes facilitating the Product Environmental Footprint (PEF) Technical Secretariat for Textiles and Footwear and providing technical expertise for drafting the sector-specific methodology for the textile sector (i.e. the PEFCR). Cascale’s Higg BRM team will provide technical expertise to EFRAG, a coalition funded by the European Commission, to draft the Corporate Sustainability Reporting Directive (CSRD) sector-specific data points for the textile sector.
ABOUT CASCALE
Cascale is the global nonprofit alliance catalyzing collective action toward equitable and restorative business practices in the consumer goods industry. Spanning 300 retailers, brands, manufacturers, governments, academics, industry associations, and nonprofits across 37 countries, we are united by a singular vision to give back more than we take for people and the planet. Cascale’s membership includes apparel, footwear, home furnishings, sporting and outdoor goods, and bags and luggage companies.
Formerly known as the Sustainable Apparel Coalition, Cascale owns and develops the Higg Index. Initially formed to create standardized sustainability metrics, Cascale has sharpened its focus to driving pre-competitive collective action for a unified industry transformation. As an independent entity, Cascale brings together brands, retailers, manufacturers, NGOs, academics, and industry associations to combat climate change, ensure decent work, and contribute to a nature-positive future.
With 2030 on the horizon and regulation in flux, brands and retailers are looking for a streamlined means for measuring progress.
In an interview with Cascale, Maravillas Rodriguez Zarco, senior director Higg Index Strategy & Operations, explored the recent Higg Brand and Retailer Module (BRM) update, including how it could advance data-driven decision-making and compliance in fashion.
Zarco shared that, for starters, Higg BRM’s ESG assessment is designed specifically for fashion’s hotspots so any brand or retailer can isolate and deploy resources more effectively. Amid ongoing regulation, the Higg BRM will support users in their compliance journey, specifically with the European Union’s Corporate Sustainability Reporting Directive (CSRD). The Higg BRM, as with other tools, was the subject of a November 2023 policy alignment report from Cascale and consulting firm BCW. The analysis showed Higg BRM is “well aligned” with the requirements of the EU CSRD.
“Our strength lies in understanding the dynamics occurring throughout the value chain, knowing where to put the effort and what the immediate challenges of the industry are to become more sustainable,” said Zarco.
Higg BRM provides granular data in a digestible way that allows for data-driven decision-making. Zarco said it’s a testament of the way the assessment was built and how the scoring was developed. Benchmarking (a members-only feature) and verification equally supports this intention. Ultimately, the tool allows fashion brands and retailers to assess and support their partners along their compliance journey.
“We think of Higg BRM not only as a robust ESG assessment tool, but also an ally for members and non-members alike. It allows fashion brand and retailers to assess their ESG performance in a standardized way. It can be shared with their business partners across the value chain, so that they can make informed decisions.”
And policy is not ever an afterthought. Zarco said a technical paper is coming soon, outlining the specifics of brand and retailer compliance. Until then, she said the latest Higg BRM update is a useful way to drive data-driven decision-making for brands.
“We’re actively evolving the tool to address potential gaps between the Higg BRM and the CSRD,” said Zarco. “Through this tool, brands and retailers are able to build consistent corporate sustainability strategies to deliver more effectively on ESG goals and industry needs, reduce reporting burden, and avoid duplication across sustainability initiatives.”
Specifically, the updates include improved data consistency and accuracy, while providing deeper performance metrics and insights. Another standout feature of the update, Zarco mentioned, is upgraded benchmarking for members. All past versions of Higg BRM are compatible with upcoming versions including this latest update. Further, the tool maintains alignment with key industry frameworks including Textile Exchange’s Material Benchmark, which addresses more sustainable or preferred fiber types, and the Zero Discharge Hazardous Chemical (ZDHC) “Brands to Zero” program which focuses on net-zero improvements.
Cascale also updated its Higg BRM Verification upon member feedback for improved consistency and data accuracy. Exactly 11 brands participated in the Higg BRM verification pilot and their insights informed the latest updated Higg BRM Verification. This version is available to all users but remains optional for Cascale members.
“Though a minor update, the latest Higg BRM is designed for major impact,” she reiterated.