Joël Mertens, director Higg Product Tools Sustainable Apparel Coalition, joined a recent GreenBiz webcast sponsored by Environmental Defense Fund to discuss “How Circularity Can Help Advance Your Net Zero Strategy.” Hosted by Kori Goldberg, circular economy manager at GreenBiz, additional speakers included Andy Ruben, founder and executive director at Trove, Pete Edmunds, sustainability director at Deloitte, and EDF’s Thorfinn Stainforth, senior policy analyst at Environmental Defense Fund, and Elizabeth Strurcken, managing director.
The conversation was inspired by a new report from EDF and Deloitte, which outlines how companies can gain value and advance net-zero goals by transitioning to circular strategies – including reaching new markets and advancing climate outcomes.
After Sturcken introduced the report as the third in a collaborative series with Deloitte intended to help businesses make tangible progress towards their net-zero goals, Edmunds shared industry-specific circularity strategies for the textiles, packaging and automatic industries. He highlighted Lululemon’s plant-based nylon and the Loop reverse logistics programs, as well as the automotive industry’s shift to mobility as a service and battery reprocessing to meet demand from the growing EV market. Then, Ruben discussed a recent study on which Trove collaborated with Worldly, the exclusive licensee of the SAC’s Higg Index Tools, to determine the carbon savings of resale in comparison to rental and subscription.
Mertens emphasized the importance of pre-competitive collaboration in moving from commitment to action, stressing the success of this model in developing the Higg Index Tools. He shared that elements of circularity are embedded in the Higg Product Tools and provide a solid foundation for brands exploring circularity. However, he cautioned that brands should be careful about communicating circularity to consumers in the absence of impact measurements, as this can be construed as greenwashing.
Finally, Stainforth outlined circular policy developments in the EU, including their global impact, and three ways that companies can move faster and further on circularity.
Learn how one of the world’s leading and most innovative garment and fabrics manufacturers has achieved remarkable results on their journey towards a nature-positive and people-centric future.
– Quentin Thorel, Group Head of Sustainability at CIEL Textile.
CIEL Textile, an industry pioneer in sustainable practices, recently completed a purpose-driven transformation with remarkable results. With a strategic focus on fostering a nature-positive future, and ensuring decent work for all, their 2023 impact is indeed impressive.
In 2019, CIEL Textile implemented the Higg Facility Social and Labor Module (FSLM) and Higg Facility Environmental Module (FEM) tools across all of its 19 facilities, which employ 23,000 talents. Three years later, the impact is clear: CIEL Textile achieved a verified FSLM score of 85 percent and an impressive average FEM score of 88.4 percent – with some locations exceeding 90 percent.
Meticulously tracking and monitoring sustainability metrics using several digital tools such as the Higg Index, the group tripled its investment in dedicated sustainability resources across all 19 facilities. This investment significantly impacted recruitment, working hours, wages, health and safety and more, emphasizing CIEL Textile’s commitment to improving the lives of its employees.
CIEL Textile’s commitment to sustainability goes beyond its own operations: the group actively encourages its brand partners and stakeholders to align and adopt the Higg Facility Tools, avoiding not only audit duplication, but also empowering them, fostering a shared commitment to industry-wide sustainability. The group has already achieved its 2030 target of eliminating coal from its supply chains and is on track for goals related to carbon, water, waste management and circularity – including environmental improvement projects such as conserving and regenerating natural ecosystems and installing rainwater harvesting systems. Looking ahead, CIEL Textile aims for a verified Higg FEM score of 95 percent at all of its factories by 2025, reaffirming its unwavering commitment to driving sustainability and positive change in the apparel industry.
San Francisco, Amsterdam, Hong Kong – November 2, 2023: Today, in partnership with Worldly, the Sustainable Apparel Coalition (SAC) launched the Higg Facility Environmental Module (FEM) 4.0 tool. This update marks an industry milestone in sustainability reporting to meet pressing environmental issues and industry standards, positioning Higg FEM 4.0, part of the Higg Index suite of tools, as the most applicable and leading assessment for environmental performance in the consumer goods industry.
Enabling more accurate reporting
As well as offering improved and more streamlined usability, Higg FEM 4.0 delivers better data quality. Featuring a new anomaly detector designed to flag inconsistencies, Higg FEM 4.0 provides more accurate reporting, ultimately enabling a more accurate environmental assessment of the industry.
Broader coverage of critical environmental issues
The tool also offers a deeper look at key environmental issues such as groundwater and soil contamination to help the industry make improvements at a global scale on critical issues. The new tool aligns with key global standards – including the GHG Protocol, the SBTi, and ZDHC Roadmap to Zero – to drive emissions reductions and reduce duplicative reporting. Additionally, Higg FEM 4.0 includes targeted questions that are more relevant to a facility’s processes, weeding out questions that are irrelevant.
Jeremy Lardeau, VP of the SAC Higg Index says, “Higg FEM 4.0 will bring impactful and necessary changes – from improved data quality to alignment with relevant industry standards, the updated tool offers a wide range of benefits to ultimately reshape how sustainable decisions are made along the supply chain.”
Industry led update
Higg FEM 4.0 was built on member and stakeholder feedback collected over the past two years It reflects the input of over 140 representatives across 12 Member Expert Teams (METs), including 62 representing manufacturers, 57 representing brands/retailers, 10 service providers, and five representing affiliate members. The METs, the FEM Strategic Council, partner organizations, and members all provided insights and feedback. The insights collected helped to shape the FEM framework, scoring methodology, question content, and more to build a tool that meets relevant industry standards and protocol. Additionally, Higg FEM 4.0 was tested by over 400 users who provided feedback within the platform. The SAC is excited for end users and stakeholders to experience the widespread benefits of Higg FEM 4.0, and empower them to identify, prioritize and scale sustainability efforts.
Jimmy Summers, Vice President of Environmental, Health, Safety & Sustainability, at Elevate Textiles: “Elevate Textiles is looking forward to the release of Higg FEM 4.0. Higg FEM is an essential part of transparently sharing our verified sustainability metrics and progress with our customers. We also use Higg FEM as a foundational element of our overall sustainability program to ensure that all of our facilities around the world are meeting our expectations and improving their performance towards our facility-level and corporate goals and targets, including our Science-Based Targets for GHG reductions. We actively participated in the Higg FEM 4.0 pilot and are now prepared to ‘raise the bar’ with this more rigorous and beneficial version.”
Alan Chin, Senior Manager, Supply Chain Sustainability, at VF Corporation: “At VF, the Higg FEM assessment enables the company and our brands to measure key Scope 3 supplier-related impacts. VF teams, along with the SAC staff, engage directly with our vendor partners to assess and improve supplier carbon emissions. We are excited about the enhanced ability of the updated Higg FEM 4.0 to deliver actionable data and insights, enabling VF to support impact reductions across our global supply chain.”
James Schaffer, Worldly’s Chief Strategy Officer: “Higg FEM 4.0 is a game changer. In an industry with rapid change in impact reporting and regulation disclosure requirements, Higg FEM 4.0 directly addresses the current sustainability challenges and future needs businesses are facing. We’re proud to host this leading environmental assessment on the Worldly platform and provide businesses the impact intelligence they need. With new customized user experiences for facilities, Higg FEM 4.0 is an assessment tailored to facilities that gives brands visibility into the nuanced impact of their supply chain partners, so together they can identify hotspots and effectively improve their environmental footprint.”
Kyle Chung, Senior Manager – Sustainability, at Crystal International: “Crystal International’s sustainability efforts are strengthened by industry tools like Higg FEM to enhance environmental performance. Collaborating with our supplier network to leverage Higg FEM data and insights, we can make informed decisions to drive sustainability advancement across our operations and value chain. With the launch of the updated tool, we are better equipped to address the industry’s most pressing issues.”
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About the Higg FEM Tool
The Higg Facility Environmental Module (FEM) tool informs manufacturers, brands, and retailers about the environmental performance of their individual facilities, empowering them to scale sustainability improvements. The Higg FEM provides facilities a clear picture of environmental impacts and helps users identify and prioritize opportunities for performance improvements.
About the Sustainable Apparel Coalition
The Sustainable Apparel Coalition (SAC) is a global, non-profit alliance of over 280 organizations in the apparel, footwear, and textile industry. Initially formed to create standardized sustainability metrics, the SAC has sharpened its focus to driving pre-competitive, collective action across three foundational pillars. As an independent entity, the SAC brings together brands, retailers, manufacturers, NGOs, academics, and industry associations to combat climate change, ensure decent work, and contribute to a nature-positive future. Central to the SAC’s mission is the Higg Index, a suite of comprehensive tools that empower members to measure, evaluate, and improve sustainability performance across the supply chain.
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About Worldly
Worldly is the planet’s most comprehensive impact intelligence platform, trusted by 40,000+ major brands, retailers, and manufacturers in fashion, outdoor, home goods, toys, and more. Worldly uniquely collects high-resolution primary data specific to companies’ value chains, operations, and products, providing insight into true impacts across carbon, water, chemistry, and labor. Featuring the most comprehensive source of ESG data for global manufacturers and the largest library of materials and product impacts, Worldly empowers businesses to scale responsibility into their global operations, faster and more accurately. Hosting, connecting with, and supporting the leading industry solutions and methodologies including ZDHC, Bluesign, and the Higg Index – the most widely-adopted measure of sustainability in the apparel industry – Worldly delivers the insights businesses need to reduce their impact, comply with emerging regulatory and financial disclosure requirements, and meet the expectations of a new generation of customers. www.worldly.io
For media enquiries or to request an interview, please contact: Florence@forster.co.uk or joeldelgesso@forster.co.uk
The German Agency for International Cooperation, the service provider in the field of international cooperation for sustainable development, recently hosted a webinar to highlight key changes between Higg FEM 3.0 and the forthcoming Higg FEM 4.0. Moderated by Rakesh Vazirani, head of sustainability services for business stream products, the webinar included Angela Ng, director of Higg Facility tools, in conversation with Mohammad Abdul Qaium, sustainability manager at OVS S.p.a., and Arunhariharan B S, sustainability analyst at Eastman Exports Global Clothing. The discussion was designed to educate attendees about what additional data manufacturers should start collecting for Higg FEM 4.0 in order to be better positioned to complete the self-assessment and verification, as well as how to best use the tool to drive impact. “The industry overall has certain goals for sustainability,” Vazirani said. “There are goals with regards to reduction of emissions, there are goals with regards to reduction of freshwater, and there are goals with regards to ensuring that biodiversity is not being negatively impacted. And of course the big picture goal is to have a circular textile value chain.”
Although the subject matter was high-level and technical, Ng noted the deep level of collaboration between SAC members that culminated in the update. “We spent the last two to three years working with over hundreds of members, stakeholders and facility users to collect feedback on the tool framework, scoring methodologies and all the questions’ content,” Ng said. “These insights coming from our key Member Expert Teams and Strategic Councils helped us identify gaps in regulations, industry standards and needs and incorporate these into the new version of the Higg FEM 4.0.”
As Ng detailed, this work fits into the SAC’s broader vision of “Evolution for Impact” to drive scalable solutions for industry-wide decarbonization. As Qaium shared, OVS demonstrated this by introducing a Sustainability Linked Bond in 2021 and setting goals to achieve a 21 percent reduction in carbon emissions and ensure that 100 percent of their suppliers use the Higg FEM and Higg FSLM, with 80 percent of their volume verified by 2024.
Ng also explained framing around key changes to Higg FEM 4.0, including an increase in data points: Over 70 unique data points are part of the Higg FEM 4.0 update, including site permits, energy, water, emissions, waste and chemical management. Although industry progress is gradually improving -– the percentage of users meeting Higg FEM foundational requirements was 19 percent in 2022, versus 15 percent in 2021 -– Ng emphasized that the SAC views Higg FEM 4.0 as a game-changer for industry-wide progress. Through a single shared facility assessment tool, Higg FEM 4.0 is designed to reduce facility third-party assessments, fuel better quality data and align industry benchmarking. As Arunhariharan detailed, once the Higg FEM is adapted to the user’s facility, they will be able to set targets and understand barriers to achieving them.
Ng also touched on how the Higg FEM 4.0 aligns with key industry standards -– including the Greenhouse Gas (GHG) Protocol, Science-Based Targets initiative, and Zero Discharge of Hazardous Chemicals Roadmap to Zero -– as well as how the updated tool zeroes in on the most critical environmental impacts like groundwater contamination to ensure that it reflects the key impact areas where businesses need to evaluate and address current challenges.
Additionally, she talked about the improved assessment relevance. Through improved applicability criteria, users will now only see questions relevant to their specific operations, so they can spend less time on assessment questions that are irrelevant to them.
Finally, she discussed how the findings from Higg FEM 4.0 can be applied at scale. Once facility impacts are known, volume can be allocated to low-carbon suppliers -– a tactic that is already being seen among industry players. For example, Ng shared a recent analysis of Higg FEM data by carbon management company Reset Carbon which found the top 1,500 facilities contribute to around 79 percent of total emissions or some 82.8 million tons of carbon dioxide equivalents. In the best case scenario, the industry can see an estimated 10 to 25 percent carbon reduction by shifting sourcing. By tapping insights from Higg FEM 4.0, devoting jobs to the most sustainable suppliers, the hope is that industry players see drastic improvement.
The SAC has scheduled a series of events that focus on the Higg FEM 4.0 update, including a webinar on November 7 and an APAC session on November 8.
SAC executives Jeremy Lardeau, Vice President Higg Index, and Joyce Tsoi, Director, Collective Action Programs, APAC, presented at Fashion Summit (HK), the sustainable fashion event funded by Create Hong Kong and organized by the Clothing Industry Training Authority (CITA), in support of the 2024 theme: “Actions to the Sustainability Journey.” After opening speeches from Richard Cheng, Chairman of Fashion Summit (HK) 2023, Kevin Yeung Yun-hung, GBS, JP Secretary for Culture, Sports and Tourism, HKSAR Government, Hon. Sunny Tan, Member of the HKSAR Legislative Council (Textiles & Garment), and Yang Xiaodong, Vice President of the China Garment Association, Jeremy Lardeau, Vice President Higg Index, offered a keynote presentation on sustainability analytics in the apparel industry.
Lardeau initially shared background information about the SAC, the global multi-stakeholder nonprofit alliance that represents a diverse global membership of over 280 members – about 50% of the apparel and textile industry – in 36 countries. Lardeau explained that over the past two years, the organization has seen the greatest amount of growth, demonstrating the collaborative momentum of the industry coming together to address systemic challenges and co-develop solutions with an approach based in equal partnership.
Lardeau explored how the SAC’s work is anchored by the Higg Index, a suite of tools that measures social and environmental impact through five core tools based in three key categories: two Higg Product Tools and three Higg Facility Tools. “Developed in collaboration with our members, and employed throughout the decade as working tools achieving measurable sustainability goals, the Higg Index stands today as the leading example of end-to-end sustainability measurement index, for any industry,” Lardeau said. “These tools have matured into comprehensive, robust offerings ready to scale and form a template for our industry’s pursuit of impact improvements. Nonetheless, they will continue to evolve, as science improves and our understanding of the industry’s challenges deepen, allowing us to support our members and the industry.”
He then shared examples of how the tools serve the industry:
Finally, Lardeau closed with a challenge: “How do we finance, enable and execute these interventions, in a way that is fair and equitable across the value chain partners?” Building on this idea, Joyce Tsoi, SAC’s Director, Collective Action Programs, APAC, moderated a panel hosted by the Clothing Industry Training Authority that featured Delman Lee, Vice Chair of TAL Apparel Ltd. and SAC Immediate Past Board Chair, Andrew Lo, CEO of Crystal International Group Ltd., and Teresa Yang, Vice Chairman of Esquel Group.
As initial framing, Tsoi shared that companies around the globe are making bold commitments to combat climate change: A recent Science Based Target Initiative (SBTi) report shows the highest number of companies set targets on record in 2022 alone than the entire seven years prior. And although an annual 4.2% emissions reduction is required for a 1.5ºC alignment for science-based targets, it was found that a typical SBTi-approved company has set even more ambitious goals, with a linear rate of 8.8% scope 1+2 reductions per year. In order to achieve these goals, Tsoi shared, companies will need to secure full organizational support for the company’s decarbonization priorities to achieve a just and equitable low carbon transition.
As all three panelists represent companies that have committed to long-term net zero goals by 2050, Tsoi asked questions that allowed them to share the pillars of their climate action programs, how they are incentivizing and empowering staff at all levels to take climate action, and how they are building collaborative ecosystems across organizations, sectors, and value chains to achieve a just and equitable low-carbon transition.
First of three reports published as SAC sets out how the Higg Index suite of tools will continue to evolve
BOSTON, Mass. — September 26, 2023: Today, the Sustainable Apparel Coalition (SAC) has shared in full the first of three reports from the Higg Index Review. This first report fulfills a commitment made last year by the SAC to engage industry experts on a technical review of the Higg Product Tools, based on content and methodology, with the resulting data delivered in an open and transparent way. Available for download here, the report sets out detailed recommendations for how the Product Tools can continue to develop and answer the evolving requirements of users.
Through the continuous evolution of the Higg Index tools, the aim is to provide users with access to the most up-to-date, accurate data against relevant industry standards in order to drive sustainable decision-making across the industry. For this review, KPMG was commissioned to coordinate and recruit a panel of ten experts. The report focuses on the following tools:
“Science isn’t static — and neither are we,” said Jeremy Lardeau, VP of the SAC Higg Index. “The SAC is committed to the continued enhancement of the Higg Index tools, to better support the industry to achieve its sustainability goals. Through ongoing updates, our tools become more and more powerful to drive greater impact across the value chain.”
Reflecting the diverse and complicated nature of product sustainability assessments, the reviewers were not unanimous in their findings. While the report highlights that the Higg MSI and Higg PM tools demonstrate strengths, more important to the SAC is how this critical analysis reveals where additional improvements are necessary.
“The SAC Board of Directors thanks each expert involved in the review for providing their insights and direction to the SAC,” said the SAC’s Board of Directors in a collective statement. “This review highlights the complexity of product sustainability assessments, which cover collecting, measuring, and appropriately utilizing sustainability impact data originating at the early stages of global supply chains for business decisions. Moreover, the often diverging expert viewpoints shared in the report reinforce the need for robust collaboration toward delivering a harmonized approach to value chain sustainability data. We commend the SAC for conducting this expert review and commit to empowering the SAC to integrate appropriate recommendations into the SAC’s strategic plan, while inviting interested stakeholders to join this effort.”
In some cases, the recommendations for action found in the report are already underway, including:
In other cases, recommendations for improvement will be incorporated during the next phase of tool development by the SAC, including, for example, adding signals and warnings on front-end content within the platform, as well as offering more training sessions and educational opportunities to help users correctly and more effectively use the tools.
Finally, taking action on some of the expert recommendations will require a deeper process of stakeholder engagement and research in order to confirm both applicability and feasibility. For example, the SAC is closely monitoring the progress made in ways to assess the full impacts of marine litter and microplastics in LCA data.
Ultimately, the ongoing evolution of the tools means the SAC will continue to assess the experts’ recommendations over the coming months and how best to implement them in the tools’ development roadmap.
“At Eastman Exports, we’ve seamlessly integrated the Higg Materials Sustainability Index (MSI) and the Higg Product Module (PM) into our core sustainability strategy,” said Alagesan Senniappan, Senior Vice President, Quality Assurance/ESG. “The Higg MSI has empowered us with a profound grasp of our materials’ environmental impact, facilitating data-driven decisions and the adoption of sustainable alternatives. The Higg PM has been transformative in evaluating our product life cycles, pinpointing critical areas for reducing our environmental footprint – from raw material sourcing to end-of-life considerations. Our unwavering commitment is to continue this sustainability journey with the invaluable support of these indispensable tools.”
The remaining Higg Index Review reports for the Higg Brand and Retail Module (BRM) and the Higg Facility Environmental Module (FEM) are expected in 2024. The Higg BRM was recently updated in March 2023, and the Higg FEM tool will be updated in November 2023. Based on the timing of these updates, the Higg Product Tools were reviewed first. The remaining Higg Index Review reports will be shared in full by the SAC once they have been finalized by the review panels.
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For more information please contact SAC@forster.co.uk
About the Sustainable Apparel Coalition:
The Sustainable Apparel Coalition (SAC) is an independent and impact-creating organization that aims to lead the industry toward a shared vision of sustainability based upon a joint approach for measuring, evaluating, and improving performance.
As a non-profit organization, it has members from across the apparel, footwear, and textile sector, but exists independently outside any one company so that it can drive progress. The SAC’s collective action efforts bring more than 280 global brands, retailers, manufacturers, NGOs, academics, and industry associations together. They represent about half of the apparel and footwear industry along the whole supply chain – from sustainability pioneers to organizations just getting started.
Before the SAC existed, companies worked in a siloed way, using their own programs and measurements that lacked standardization and an ability to drive collective action. In 2009, Walmart and Patagonia identified this as a serious problem. Joining forces, they brought together peers, competitors, and relevant stakeholders from across the sector to, on a pre-competitive basis, develop a universal approach to measuring sustainability performance and founded the Sustainable Apparel Coalition.
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About the Higg Index:
The Higg Index is an SAC-owned suite of data-driven tools for brands, retailers, and manufacturers to measure sustainability performance in the apparel, footwear, and textile industry. Owned by the SAC, the tools are exclusively licensed to Worldly. For more information, visit worldly.io/. The Higg Index comprises a set of five independent tools that make it possible to measure the environmental and social impacts of how, where, and under what conditions products are made, as well as the companies making them. The tools provide a standard process for assessment that can then be used for benchmarking, allowing users to leverage verified data to track, manage, and improve their performance. The tools also offer those just beginning their efforts a structured place to start which can make the process of data collection and strategy development less overwhelming.
About the tools reviewed in the report:
The Higg MSI is a cradle-to-gate material assessment tool that calculates environmental impacts of materials used in the textile, apparel & footwear industry such as ready-to-be-assembled textiles, trims, and packaging featured in products. The tool aims to enable design and development teams to identify hotspots and make more sustainable choices during the materials selection process. The Higg MSI uses peer-reviewed data submitted from the industry and life cycle assessment databases to calculate environmental impacts. The tool measures environmental impact in five areas: global warming, nutrient pollution in water (eutrophication), water scarcity, abiotic resource depletion of fossil fuels, and chemistry. Higg MSI results are provided individually for each impact category and are displayed into two formats: LCIA units and Higg MSI score. The LCIA units represent the environmental impact for the specific impact category (e.g. kg CO₂e with regards to global warming potential). The Higg MSI score, in turn, is based on a linear normalization set upon the weighted average impact of the most used materials within the industry.
The Higg PM assesses the cradle-to-grave environmental impacts of products made by the textile, apparel & footwear industry. This assessment includes the impacts of the specific materials used in a product, the impacts from finished goods’ manufacturing processes, as well as the impacts of logistics (transportation and distribution), use phase, and end of life. The Higg PM integrates Higg MSI outputs to provide a full life cycle assessment. The Higg PM shares the same five impact categories as the Higg MSI. Higg PM results are provided individually for each impact category and are displayed in terms of LCIA units. The Higg PM aims to help companies understand the environmental performance of their products’ portfolio and enable progress on circularity goals.
We are grateful to KPMG for their work in developing this report, which captures the invaluable insights and recommendations derived from the expert review of the Higg MSI and Higg PM tools.
The SAC was founded on the idea of evolution. Through ongoing updates, our tools become more and more powerful at helping our members transform their businesses. Today, we continue to demonstrate that core concept with the publication of the first report from our Higg Index Review process, which is downloadable here. The report addresses the Higg Product Tools – the Higg Materials Sustainability Index (MSI) and the Higg Product Module (PM) – and plays an important role in helping us reassess and evolve our product life cycle tools in order to best serve the industry.
But change doesn’t happen in a vacuum: We had to listen and learn from you, our community. To do so, we engaged KPMG, which coordinated the creation of a panel of experts that represent a cross-section of the industry; KPMG led the process of generating the report, ensuring that it remained unbiased and independent. All who participated brought insightful perspectives that triggered powerful conversations about how we — the SAC, and the apparel and textile industry — can evolve the tools to drive greater impact. We were again reminded that our tools, while tailored to this industry, must respond to the global call to reduce social and environmental impacts as a whole and align with global industry standards.
With a broad range of representation from the expert panel, we welcomed the strengths that were acknowledged, including the tools’ alignment with ISO LCA phases to quantify and assess the environmental impacts of materials and products. But more importantly, the review process surfaced clear feedback and recommendations to improve these tools. We are taking these recommendations to heart and we have started evaluating how best to address each recommendation.
In some cases, the work is already underway.
We are re-working the Higg MSI data structure and leveraging the forthcoming Higg Facility Environmental Module (FEM) update, which will launch in September, to connect them and allow factory-specific data to inform Higg MSI data sets, and which will lead to improved geographical coverage and specificity within the Higg Product Tools. We’re also actively working to improve data quality within our background datasets (secondary data), specifically in cotton fiber and textile wet processing data. Through this effort, we’re working with supply chain stakeholders to determine the type of data that is available, outline data gaps, identify intrinsic differences due to geography, and build consistent LCA models that can show improvements over time. This is a process that we’ll continue to replicate with other materials and processing stages in the future.
The expert panel also recommended that our tools must align with EU Product Environmental Footprint (PEF) – an evolving LCA methodology, that aims to create a harmonized common framework for calculating and communicating impact — and we fully agree. We’ve long incorporated alignment to the Apparel & Footwear PEFCR into our strategy goals and methodologies. For example: Our requirement on including renewable energy is aligned with PEF, as is our methodology to calculate the water impacts.
In other cases, we believe we can implement changes in the next phase of regular tool updates.
For example, we will develop the recommended signals and warnings, as well as offering more education and training, to help users correctly and more effectively use the tools.
Finally, some recommendations will require a deeper process of stakeholder engagement and research to explore feasibility and practical application.
For example, the SAC is closely monitoring the progress made in ways to assess the full impacts of marine litter and microplastics in LCA data. Ultimately, the ongoing evolution of the tools means the SAC will continue to assess the recommendations over the coming months and how best to implement them in the tools’ development roadmap.
In 2024, we will be conducting independent reviews for the Higg Brand and Retail Module (BRM) and Higg Facility Environmental Module (FEM) tools. Due to the timing of these updates, the Higg Product Tools were reviewed first. The remaining Higg Index Review reports will be shared in full by the SAC once they have been finalized by the review panels.
Science isn’t static — and neither are we. We are committed to continued enhancement in order to arm the industry with the most robust, data-driven tools so that we can all stand behind decisions that are as socially responsible as they are environmentally sound. Finally, we are grateful for those who contributed their time and effort to the process of generating this report, as well as for the continued engagement of – and critical feedback from – our trusted members and partners.
Lee Green, the SAC’s Senior Director of Marketing & Communications, recently presented on intersection between emerging policies and packaging at the “Unlocking the Power of Packaging: From Supply Chain Efficiency to Improved Sustainability” dinner hosted by Billerud, a paper and packaging materials company based in Sweden. The presentation also included remarks from the company’s Business Relationship Manager, Adam Sarama, and Global Commercial Director, Robert Testa, as well as a case study in packaging optimization presented by Maja Midebo, Senior Packaging Designer, and Johan Matsson, Manager of the EMEA & US Account Management Team, followed by interactive roundtable discussions.
Green began his presentation with the caveat that, when it comes to packaging and policy, the SAC’s Higg tools should not be seen as compliance checklists. The tools, which measure and score a company’s sustainability performance, should instead be seen as analytical frameworks, designed to provide actionable insights for continuous improvement on sustainable practices across the supply chain — including packaging. “Imagine you’re a sailor navigating treacherous waters without a compass — that’s what sustainability efforts are like without the Higg Index,” Green said. “The Higg tools provide a high-resolution map of your environmental and social impacts, helping to guide the journey toward sustainability. They’re more than tools; they’re your sustainability North Star.”
With that idea in mind, Green shared that the Higg Product Module (PM) does request information on packaging — its materials, reusability, and overall lifecycle — which can aid in determining a product’s overall environmental footprint. SAC Member brands like ALDO used the Higg PM to help commit to reducing the environmental impact of packaging through the use of post-consumer recycled materials in mailers, redesigning shoeboxes with handles to eliminate the need for additional bags, and utilizing 100% recycled materials for e-commerce shipping bags; similarly, Nike used analysis from the PM in developing its One Box packaging concept, which ships shoes in a shoebox, eliminating the need for an additional outer box and reducing packaging waste by 50%, bringing the company closer to its target of cutting waste by 10% per unit by 2025. However, Green emphasized that the tool generates analysis, rather than a compliance checklist. “While it can indicate whether your packaging strategy aligns with your sustainability goals, the Higg PM does not provide a roadmap to phase out, for example, single-use plastics,” he said. “Those initiatives need to be separately formulated, often requiring in-depth lifecycle assessments and material flow analyses.”
Green noted that the SAC’s view on regulations is that more stringent regulations can incentivize collective action. “While regulations can be seen as challenges,” he said, “We see them as opportunities — a catalyst for change. They demand that industry leaders embrace sustainable innovation, which leads to collective action, which is critical to the SAC’s mission of transforming the global consumer goods industry into one that gives more than it takes — to the planet and its people.”
As Green shared, the evolution of this idea is that out of collective action comes an ethos of shared responsibility and innovation. When it comes to packaging, Green said, “Regulations might set the rules, but they also open up a realm of possibilities for sustainable advancements in material science, design, and circular economy models related to packaging. This is where your expertise and willingness to collaborate can create industry-transforming solutions.”
Green shared how the SAC’s collective action mandate focuses on impact, not just compliance, helping members to understand regulations and their business impacts. And he described how the Higg Index tools and frameworks go beyond minimum requirements, helping members contribute positively to societal and environmental changes and providing a space where companies can collaborate and pool resources.
Finally, he closed by describing how the SAC is in a state of evolution, moving from isolated tools to holistic programs that address sustainability at scale, built on pillars like combating climate change, ensuring decent work, and creating a nature-positive future — which are all extremely relevant to packaging, given its flow in product lifecycle and waste management. “Data isn’t just a tool; it’s a compass,” Green said. “It directs us towards actionable goals and validates our journey, allowing us to participate constructively in policy dialogues and to fine-tune our practices to meet and exceed regulatory guidelines — making systemic change not just possible but inevitable.”
The SAC is excited to launch the Higg FEM 4.0 in November, providing a transformative shift in sustainability reporting for manufacturing facilities, brands and retailers. This dynamic tool has the potential to significantly change how and why decisions are made within the industry, and we want to make sure you have everything you need ahead of November’s launch. In partnership with Worldly, the SAC is excited to share a dedicated Higg FEM 4.0 webpage to bring you all the latest resources, key dates and updated information —all in one place.
Higg FEM 4.0: Major Updates
Updating Higg FEM 4.0 was a highly collaborative effort among SAC members. Over the past two years, we’ve worked with over 100 members to collect feedback on tool framework, scoring methodology and content. Insights from key Member Engagement Teams and the Strategic Council helped us to identify gaps in regulations, industry standards and needs, and incorporate member insights in order to significantly evolve the tool.
We view Higg FEM 4.0 as a gamechanger — here’s why:
How to Prepare for Higg FEM 4.0
To help users prepare for Higg FEM 4.0, we’re thrilled to introduce a consolidated webpage where manufacturers, brands and supply chain partners can access important resources and critical information. In partnership with Worldly, we’ve developed a Higg FEM 4.0 webpage as a one-stop resource for all Higg FEM 4.0 announcements and training materials.
Visit https://go.worldly.io/learn-about-higg-fem-4.0 to learn more about the Higg FEM 4.0 update and explore need-to-know information ahead of the launch in November.
Key webpage features include:
With in-depth training and content tailored to best prepare you ahead of time, the SAC and Worldly are prepared to help you navigate all changes, big and small. We’re excited to launch a tool that will better shape how decisions are made within each facility, and also drive the industry forward as a whole. Together, we’re not just meeting sustainability standards; we’re setting them.
WHO WE ARE:
The Sustainable Apparel Coalition (SAC) is an industry-wide nonprofit alliance whose collective action efforts lead the consumer goods industry toward a more equitable and restorative future. The SAC owns and develops the Higg Index, a suite of tools that provides a standardized framework for organizations to assess sustainability impact throughout the product life cycle. Over the past decade, the SAC has focused on building and evolving the methodologies of the Higg Index using the latest scientific research, in collaboration with SAC members, consultants, stakeholders, industry experts, and ecosystem partners, such as Worldly. To learn more about the Higg Index, visit https://cascale.org/the-higg-index/.
Worldly is the planet’s most comprehensive impact intelligence platform, trusted by 40,000+ major brands, retailers, and manufacturers in fashion, outdoor, home goods, toys, and more. Worldly uniquely collects high-resolution primary data specific to companies’ value chains, operations, and products, providing insight into true impacts across carbon, water, chemistry, and labor. Featuring the most comprehensive source of ESG data for global manufacturers and the largest library of materials and product impacts, Worldly empowers businesses to scale responsibility into their global operations, faster and more accurately. Hosting, connecting with, and supporting the leading industry solutions and methodologies including ZDHC, Bluesign, and the Higg Index – the most widely-adopted measure of sustainability in the apparel industry – Worldly delivers the insights businesses need to reduce their impact, comply with emerging regulatory and financial disclosure requirements, and meet the expectations of a new generation of customers. www.worldly.io
