Driving SME Sustainability, EFRAG’s Recognition of Higg FEM

In this blog, Maravillas Rodriguez Zarco, senior director, Higg Index Strategy & Operations; and Adrián Branco, senior manager, Higg Index Brand & Retail; discuss Cascale’s secondment with EFRAG, the importance of the organization, and the Higg FEM’s acknowledgment in a recent report.

Higg FEM enables sustainability for SMEs, manufacturers, brands, retailers. Recent acknowledgement in the EFRAG SME report.
Black and white headshot of Adrian Branco
Adrián Branco
Black and white headshot of Maravillas Rodriguez Zarco
Maravillas Rodriguez Zarco
October 23, 2025

When the European Financial Reporting Advisory Group (EFRAG) released its “Mapping of Digital Platforms and Initiatives for SME Sustainability Reporting,” it shed light on a fast-growing ecosystem of solutions designed to help small and medium-sized enterprises (SMEs) meet EU sustainability requirements.

Out of 223 platforms and initiatives surveyed, about 20 were shortlisted for deeper review — and among them was our very own Higg Facility Environmental Module (Higg FEM), owned and developed by Cascale and exclusively available on the Worldly platform. This milestone signaled the progress made and what’s to come.

Why EFRAG Matters for SME Sustainability

EFRAG is recognized as the European voice in corporate reporting, helping shape global progress and imparting new standards of excellence. Through garnering feedback from stakeholders in an evidence-based format, EFRAG adds clarity to what could be an otherwise challenging landscape for SMEs especially in this trade environment. They face undue burdens and resource constraints, which necessitate greater reporting alignment.

Let me underscore Higg FEM’s inclusion does not represent an endorsement by EFRAG, but it does validate years of collective work by Cascale and our members to create credible, practical, and scalable solutions. It also highlights the role of industry-developed tools in easing the compliance burden SMEs face as they navigate new EU standards. In fact, private entities develop 82 percent of these platforms, showing the real market push by industry. As evidenced by the report, a significant number of these platforms are already operational and in partial or full alignment. This is good news, but there is more work to be done.

How Higg Index, Higg FEM Is Evolving 

Today, the Higg Index is one of the most credible tools in the industry. This widely accepted standard helps members actualize their sustainability ambitions and gain increased access to markets that value verified performance.

Higg FEM is one of the most widely used environmental assessment tools in the apparel and footwear sector. Every year, over 20,000 companies worldwide use Higg FEM to measure their performance on key environmental indicators, from water use and energy efficiency to waste management and chemical practices. This scale of adoption means that when the Higg FEM is recognized by institutions like EFRAG, it reflects the credibility of the methodology and the collective efforts of an industry moving toward more transparent and aligned sustainability reporting.

There are many strides to acknowledge here. Higg FEM is accessible and available in nine languages, including Bengali, Simplified Chinese, English, Italian, Japanese, Portuguese, Spanish, Turkish, and Vietnamese. Our tool offers additional capabilities such as the GHG Calculator, WRI Aqueduct Tool, and WWF Water Risk Filter embedded.

And tools aside, we are showing up in tangible ways to help shape effective sustainability disclosure regulations. In 2024, we announced our expert support for EFRAG’s work on the European Sustainability Reporting Standards (ESRS). At that time, Adrián lent his knowledge and technical expertise to support the development of textile-specific European Sustainability Reporting Standards (ESRS) for the Textiles, Accessories, Footwear, and Jewelry (MTA) sector. This secondment further showcased Cascale’s trusted voice in the policy process, helping drive effective sustainability disclosures and aligned industry standards at scale. Following the abrupt end of sectorial work with the Omnibus Directive, our support continues. Though now our involvement has naturally shifted to address the organization’s evolving needs. We remain committed to contributing meaningful value through ongoing collaboration in other areas.

Looking Ahead 

SMEs – creatives like fashion and furniture designers – are at the heart of our industry. Yet they often face the steepest barriers in meeting reporting requirements, not the least of which is resource and staff constraints. This milestone is also a reminder of the responsibility we carry. At Cascale, we have to use our scale to their advantage. The Higg FEM continuously evolves based on member and stakeholder feedback to help facilities worldwide not only measure and improve their environmental performance but reduce reporting redundancy and mitigate risk. We continue to work closely with members, industry stakeholders, and policymakers to advocate for and help companies report credibly and reduce their impact.

Together, with our global members and key stakeholders, Cascale will continue driving work that aims to make sustainability reporting accessible, actionable, and impactful for all.

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