CEO Colin Browne reflects on his first seven months at Cascale and what needs to happen next!
As we close the book on 2024, I want to start by celebrating the progress we’ve made together.
This year, Cascale underwent a transformational rebrand that better reflects who we are and what we stand for: collective action at scale. Our Annual Meeting in Munich set a new benchmark for engagement, aligning members around the critical challenges of our time.
We’ve made strides in policy work, collaborating with partners to amplify the industry’s voice on regulations that matter. We’ve enhanced tools like the Higg Index, ensuring they’re fit for purpose and aligned with the evolving needs of our members. We’ve also begun working more strategically with key partners, and we’ve seen incredible commitment from across our community to tackle the twin crises of climate change and social inequality.
There’s so much to be proud of.
But this isn’t one of those end-of-year posts where I pat us on the back and say, “job well done.” Because, let’s be honest: it’s not enough. Not by a long shot.
Earlier this week, I spoke with a colleague in the industry who mentioned that it often takes a year for outsiders to feel comfortable within the nonprofit sector. But if “getting comfortable” means accepting the current state of affairs, then I refuse to do so. In the words of American activist and author Angela Davis, “I am no longer accepting the things I cannot change. I am changing the things I cannot accept.”
The question for me—and for all of us whose work ties back to the consumer goods value chain—is this: What can we no longer accept?
First, the endless cycle of audits. I recently met with a manufacturer whose supply chain endured 723 audits in a single year. This staggering number represents wasted time, money, and resources—resources that could be invested in improving working conditions or reducing environmental impacts.
We’ve talked for years about harmonizing audits, yet duplicative proprietary demands persist. It’s time for brands to step up and commit to meaningful, long-term partnerships with their facilities. Responsible purchasing practices can no longer be optional.
My commitment: In 2025, Cascale will double down on harmonizing frameworks and fostering equitable business practices that enable decent work. And, we hope to have some big news on the horizon.
Second, the patchwork of science-based targets (SBTs). Instead of supporting their supply chains in setting meaningful decarbonization goals, too many brands are pushing this responsibility onto manufacturers, creating conflicting and burdensome requirements.
My commitment: Cascale will leverage its convening power to drive systemic action through the Industry Decarbonization Roadmap (IDR), catalyzing progress on energy transitions, foundational environmental performance, and supply chain decarbonization.
Third, the lack of shared responsibility for critical investments. Brands and manufacturers must work together to fund the solutions we need to build a resilient, sustainable supply chain. Collaboration is a two-way street, and we need you to engage and collaborate with intent.
My commitment: Cascale will continue to lead pre-competitive collaboration, creating the conditions for impactful partnerships that drive measurable progress.
Angela Davis’s words resonate deeply: accepting the status quo is not an option. Regulation is inevitable, but so are the worsening impacts of climate change and inequality. Our industry must lead, not react.
I’m increasingly hearing that some companies are walking back their climate action plans, choosing to focus solely on compliance. They claim they can’t afford to do both. Not only is this staggeringly irresponsible, but it’s also shortsighted. Legislation will soon demand we demonstrate measurable progress—not just promises. And let’s not forget: consumers are watching. They will call out companies that fail to act, and the reputational cost of inaction will far outweigh any short-term savings.
At Cascale, we’re ready to roll up our sleeves and get to work. But this isn’t something we can do alone. Collaboration isn’t just a buzzword—it’s the only way forward. This isn’t about maintaining the status quo. It’s about reimagining what’s possible and aligning our efforts to create the impact our planet and people so desperately need.
So, as you take time to recharge over the holidays, reflect on the progress we’ve made, but also on the work that lies ahead. Come January, let’s dive deeper, push harder, and go further—together.
Thank you for your unwavering commitment and passion. Let’s make 2025 a year of bold action and tangible impact.
On November 6, 2024, we co-hosted a webinar with SLCP and Worldly, exploring the Higg Facility Social & Labor Module (Higg FSLM) and SLCP CAF in supporting social compliance.
Cascale and 13 cotton programs came together to redefine cotton’s sustainability practices theory of change, developing an LCA methodology and pilot framework.
Cascale just gave its Higg MSI cotton methodology a major update, with the help of an expert team.
Why? Cotton is getting a lot of attention – and rightly so. It is a global industry with areas varying vastly in growing conditions and susceptibility to climate change-induced risks like droughts or heavy rains. Countries from Argentina, Pakistan, Brazil, Turkey, Spain, China, India, Bangladesh, Australia, the U.S., to Tanzania produce cotton. It is the second most-used fiber at 24.4 million tonnes in 2023, representing 20 percent of global fiber production, per Textile Exchange’s Materials Market Report for 2024. In line with growing sustainability ambitions, 29 percent of all cotton produced is under a certification program today.
Though nascent, the apparel industry’s ability to trace cotton through the supply chain is expanding, as are its data ambitions. Cascale’s membership is growing too, with expertise and relationships in the cotton industry a necessary resource for improvements to cotton data, for one.
To answer the call, Cascale convened the “Higg MSI Methodology Cotton Expert Team” to help collaboratively address cotton data gaps. Some 13 cotton programs and industry stakeholders participated, among them: Better Cotton, CottonConnect, Cotton Council International, Cotton Incorporated, Cotton Research and Development Corporation, National Cotton Council of America, Organic Cotton Accelerator, Textile Exchange, U.S. Cotton Trust Protocol, and WWF.
The Higg MSI Methodology Cotton Expert Team started off meeting monthly. Their combined goal was to make cotton data more representative, addressing many of the nuances. The solutions became clear. They needed to provide more primary data for the Higg MSI to better capture data and indicators within the tier 4 agricultural space.
Members agreed. “Measuring the environmental impact of sustainable cotton production in a meaningful and consistent way is important to enable textile manufacturers, and ultimately consumers, make sustainable choices. That’s why as part of Cascale’s MSI Methodology Cotton Expert Team, CottonConnect contributed to the development of a Higg MSI cotton-specific LCA methodology to enable a standardized, industry-wide method,” said Prakash Philip, global director, strategy and impact at CottonConnect, in a statement.
Over the course of three years, the group worked together to build a blueprint for cotton data. This included defining LCA Data Source requirements (or the template for data collection efforts), defining modeling approaches (including primary and secondary datasets, as well as any assumptions), and data use best practices (to inform design, sourcing and sustainability decisions, and track field practice improvements over time), as well as addressing data gaps or considerations outside LCA data to complement the Higg MSI LCA data.
For many of the cotton programs, the work was a natural progression. One Cascale member Organic Cotton Accelerator already had been conducting annual data collection efforts with over 100 farm-level indicators.
Their challenge was, however, in capturing the unique characteristics and sustainability benefits of organic cotton, especially as it exists for smallholder farms making up the majority of OCA’s network in India, Pakistan, and Turkey. “OCA played a supporting role in ensuring that the methodology accurately represented the organic cotton farming and system in which we, particularly for smallholder farmers,” described Ruud Schute, program director, Organic Cotton Accelerator, to Cascale. “We provided robust primary data from our farmer network, contributing specific insights into the use of organic fertilizers and crop protection products, which differ significantly from conventional farming methods. In addition, we highlighted the importance of differentiating between mechanized and non-mechanized farming, a key distinction given that most OCA farmers rely on non-mechanized processes. OCA was involved in brainstorming on the allocation method, ensuring that the methodology accurately reflects the realities of smallholder organic cotton production.”
He said the methodology work was a “deeply collaborative effort” both internally and externally. “Within the Cascale working group, there was an active exchange of ideas between all participating cotton programs. This group met regularly to discuss data requirements and refine the methodology. The shared insights and collective expertise from various stakeholders made the process dynamic and ensured that the methodology would be robust and applicable across diverse cotton farming systems,” he said. “We continue to be impressed by the organization , insight, and perseverance of the Cascale team.”
Better Cotton, which represents over 20 percent of the cotton fiber market, also collaborated in the methodology. “There was a great demand for this type of data, yet a lot of uncertainty and variability on how modeling was done,” told Better Cotton’s, head of MEL, Miguel Gomez-Escolar Viejo. “Having that consensus between the main cotton programs was really important to ensure that the tools were inclusive of the differences between farmers across the globe.”
The organization helped steer input for the communications and claims section, alongside joint discussions around data collection, modeling, and data use.
Both Schute and Gomez-Escolar Viejo described the untold long-term benefits of the methodology in measuring greenhouse gas emissions for cotton farms. Gomez-Escolar Viejo reiterated, “There are many benefits to aligning on a methodology. First of all, we can continue discussions around learnings and future developments without every organization going in different directions. Secondly, currently, a lot of time and resources are put into LCAs with many variations on modeling and assumptions on their own. By having a common approach, there are many potential savings that can be reinvested in improving the program rather than repeating LCA calculations. For Better Cotton, we aim to frequently publish updates on these calculations and also to keep adding more countries.”
As part of the Higg Index’s Product Tools, the Higg MSI looks to impart better materials decision-making for sustainability practitioners. The Higg MSI will leverage expertise across the industry to inform its data. As shown in this methodology, Cascale’s collaboration with the cotton programs and industry stakeholders has redefined cotton’s sustainability practices Theory of Change, including the LCA methodology, new cotton data sets, and pilot framework. While the data from these programs is not immediately included in the upcoming v3.9 MSI update, it will be included in future Higg MSI updates.
Cascale’s Joel Mertens, director of HIgg Product Tools, shared more about the potential for the Higg MSI. “Cotton stakeholders have set the tone for what collaborative fiber futures look like – starting with the right data. With these cotton programs’ collective expertise, primary data insights, and the dedicated assistance from our Higg Index team, we have evolved a joint methodology that prioritizes data accuracy and the ongoing evolution of cotton LCA data. This work is just the beginning.”
The Higg Index team continues to update the Higg MSI bi-annually to reflect ongoing improvements in product and corporate footprints, including newer, better cotton LCA data as it becomes available. Going forward, cotton programs will be able to add data directly to the Higg MSI. Eventually, users will be able to select specific cotton programs and regions. Already, the success of this cotton program MET has inspired new workstreams. This includes a textile wet processing MET, and in the future, other fibers may come forward for a data overhaul.
“This cotton work has inspired new workstreams and ongoing collaboration,” added Melissa Ortuño de León, senior manager, Higg Product Tools. “We continue to hold joint meetings while keeping the dialogue open for future improvements for the Higg MSI, and we look forward to hearing what members need next.”
Developed over three years in collaboration with industry experts and stakeholders, the MSI cotton methodology sets a new bar for more consistent and timely cotton LCA data in the Higg MSI.
Amsterdam, Hong Kong, Oakland (CA) — October 24, 2024: Cascale, formerly the Sustainable Apparel Coalition, has unveiled a new cotton LCA methodology for the Higg Materials Sustainability Index (Higg MSI), offering unprecedented accuracy and consistency in assessing the environmental impacts of cotton fiber. This new methodology provides businesses with reliable data to make informed sourcing and sustainability decisions. Data modeled with this methodology will be released on this and future updates to the Higg MSI, exclusively available on the sustainability data insights platform Worldly, reflecting significant industry-wide collaboration.
The Higg MSI is a cradle-to-gate material assessment tool that calculates environmental impacts from the extraction or production of raw materials, through manufacturing and finishing to the point where the material, trim/component, or packaging is ready to be assembled into a final product. For the past three years, experts and stakeholders convened by Cascale as part of the Higg MSI Methodology Cotton Expert Team collaborated on a cotton-specific methodology and model, providing an industry-aligned method for assessing the environmental impact of the fiber, following LCA principles. This updated cotton methodology not only strengthens sourcing decisions within the cotton sector but also sets a precedent for improving data transparency across other fibers and materials in the Higg MSI.
Standardized data collection and consistent modeling ensure that reliable cotton impact results are available through the Higg MSI. Transparent and usable environmental impact data helps drive further sourcing of preferred cotton through producer programs. In addition, the cotton LCA methodology is designed to accurately demonstrate the impacts of field practice improvements over time, providing Higg MSI users with more steering information and enabling more accurate impact monitoring. Cascale will continue to integrate more accurate and continuously evolving cotton LCA data into future updates of the Higg MSI tool.
“This update is a testament to the power of industry-wide collaboration,” said Joël Mertens, Director of Higg Product Tools at Cascale. “By bringing together diverse stakeholders who work directly with cotton growers we’ve created a methodology that not only improves cotton LCA data, but advances transparency through continuous updates and evolution. This in turn allows for better partnerships and decision-making across supply chains to drive real sustainability outcomes.”
Participants in the Higg MSI Methodology Cotton Expert Team included 13 member organizations representing global cotton programs and industry stakeholders.
“Measuring the environmental impact of sustainable cotton production in a meaningful and consistent way is important to enable textile manufacturers, and ultimately consumers, make sustainable choices”, said Prakash Philip, Global Director, Strategy and Impact at CottonConnect. “That’s why, as part of Cascale’s MSI Methodology Cotton Expert Team, CottonConnect contributed to the development of a Higg MSI cotton-specific LCA methodology to enable a standardized, industry-wide method.”
“This Cascale initiative shows the desire of our peers around the world to ensure if an LCA method is used – such as for hotspot analysis, risk assessment, and demonstrating impact – it uses best available data, and complements the Australian cotton industry’s long record of collaboration and data transparency”, said Cotton Research and Development Corporation (CRDC) Executive Director Allan Williams. “The Australian cotton industry expects this new Cascale Cotton Methodology will give textile and apparel customers greater confidence in Australian cotton and potentially help them identify areas to work with the Australian cotton industry to further reduce their impacts.”
“This extensive collaboration led to a method enabling more accurate and frequent measurement of cotton’s sustainability. This is crucial as we track our improvements over time and meet the growing demand for data and transparency”, said Jesse Daystar, Ph.D., Chief Sustainability Officer at Cotton Incorporated. “We hope initiatives like this inspire efforts to improve the data quality across fiber types, such as polyester, as many existing data sources are becoming outdated and lack geographic representation.”
“There is significant demand for LCA data, but we’ve lacked the standardized approach to fully harness its potential and clarify its correct use”, said Miguel Gomez-Escolar Viejo, Head of MEL at Better Cotton. “This new cotton LCA methodology could be truly transformative: avoiding errors from the past, aligning the industry’s evaluation methods and fostering more meaningful collaboration and future advancements.”
“The Trust Protocol supports this updated cotton LCA methodology and appreciates the opportunity to have been part of the working group from the beginning,” said Daren Abney, Executive Director of the U.S. Cotton Trust Protocol. “The inclusion of more data sources will be a welcome step towards greater accuracy and transparency in understanding the environmental impacts of cotton production. We look forward to the incorporation of the Trust Protocol’s data in the next edition of the Higg MSI, further strengthening the tool’s ability to drive positive change within the industry.”
By harmonizing methodologies and aligning industry practices, Cascale’s Higg MSI update ensures that data related to cotton’s environmental impact is both accurate and transparent, providing a critical step forward to ensure stakeholders across the value chain are equipped to make informed decisions based on credible, standardized information. Cascale remains at the forefront of advancing sustainability by continuously evolving the Higg Index, ensuring that our members have the most accurate, timely, and actionable data to drive progress across the entire value chain. The first LCIA results from a participating program are now available in the Higg MSI. Data from several other programs is currently under review and are on track to be approved and added to the Higg MSI before the end of 2024.
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 leading sustainability data 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.
Dhawall Mane director, verification, training and insights, participated in a virtual To the Finish Line (TFL) event organized by GIZ in Vietnam.
Cascale team member Dhawall Mane director, verification, training and insights, recently participated in a virtual To the Finish Line (TFL) event organized by Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) in Vietnam.
TFL is a program designed to support continued environmental performance in Vietnam’s apparel supply chain through the effective use of Cascale’s Higg Facility Environmental Module (Higg FEM) tool, which is exclusively available on Worldly. More than 700 manufacturers were invited to attend the town hall event; most participants were Higg FEM users.
Higg FEM is a transformative tool used to assess the environmental impact of product manufacturing at facilities, including water use, waste management, chemical, and energy use. In doing so, it not only uncovers hotspot areas for improvement, but also reduces redundancy, mitigates risk, and creates a common language to communicate sustainability to stakeholders. Vietnam is currently the second-highest ranked in v-Higg FEM country average score (Higg FEM 2022) and, reflecting Cascale’s own founding and guiding principles, TFL aims for pre-competitive collaboration for collective action.
Through TFL, manufacturers in the region can share knowledge to support environmental sustainability while responding to evolving needs for due diligence and shared responsibility. Participants are also invited to join a Professional Peer Community of Learning for Action on Higg FEM and beyond. Established in 2022 and running continuously since then, the goal of the TFL program is to create an exchange platform of practical knowledge by industry for industry, supporting peer-to-peer learning and problem solving.
The large-scale and practical TFL training program consists of two web-based sessions designed to elevate understanding of aspects of the Higg FEM, including management of energy, water, waste, chemicals, and greenhouse gas emissions. In the “Scaling Collective Action” session to which Cascale’s Mane contributed, regional industry stakeholders discussed practical tips on implementation. These included pooling financial and time resources, as well as what impact the TFL program has had so far and how the industry can adopt similar collective action programs in different sourcing regions.
Mane emphasized the importance of taking a systems approach in tracking data and of entrusting this responsibility to qualified, accountable personnel such as those trained through the program. “TFL is a shining example of Vietnam’s leadership in undertaking supply chain capacity building programs for Higg FEM,” Mane said.
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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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.
