Amsterdam, Hong Kong, Oakland (CA) – August 14, 2025: Cascale and Worldly have released the “Navigating Forest, Land, and Agriculture (FLAG) Emissions” report to offer a standardized method for estimating FLAG emissions for the apparel and footwear industry. The report uses data from Cascale’s Higg Index tools, exclusively available on Worldly, as well as guidance for companies to assess the relevance of FLAG emissions to their organizations.

FLAG emissions, which include land use change (LUC), land management emissions, and biogenic removals, represented 22 percent of all global emissions in 2019. However, because of ongoing data and methodological challenges, these emissions have often been partially excluded from corporate greenhouse gas (GHG) inventories. With regulatory momentum shifting, the Science-Based Targets initiative (SBTi) now requires companies with more than 20 percent of emissions from FLAG sources to set separate reduction targets. In parallel, finalized GHG Protocol guidance on FLAG emissions is expected by Q4 2025.

While tools like Cascale’s Higg Materials Sustainability Index (Higg MSI) already include many FLAG-related impacts, they currently do not include land use change data — an essential input for full FLAG reporting standards. In addition, land management emissions are often aggregated together with non-FLAG GHG emissions in the Higg MSI, while they must be separated to calculate a FLAG baseline.

Recognizing this gap and need for industry guidance, Cascale and Worldly conducted exploratory research to identify and evaluate key calculation methodologies and considerations specific to the sector. The outcome is a foundational framework designed to help companies take initial steps in FLAG emission estimations using consistent, sector-relevant methods.

“Accurately measuring and reporting FLAG emissions remains a significant challenge for many organizations,” said Joël Mertens, Director of Higg Product Tools at Cascale. “Data quality, availability, and alignment with evolving standards continue to be major hurdles. This framework offers a critical starting point for companies, enabling more consistent and harmonized reporting across the industry.”

“This report provides a robust methodology that enables Higg MSI users to calculate a credible FLAG emissions baseline,” said Paula Bernstein, Associate Director of Sustainability Science at Worldly. “Establishing this baseline is key to meeting emerging climate disclosure requirements. As FLAG data and standards evolve, we’ll continue collaborating with Cascale and the industry to refine methodologies and shape best practices that drive supply-chain decarbonization.”

The FLAG Emissions report can be accessed through Cascale’s website. Further discussion and member input on the guidance will take place during Cascale’s Annual Meeting and Worldly’s Customer Forum, both planned for September 2025.