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Beyond Borders: the Human Impact of Trump's Global Tariffs

We at Cascale strongly believe in the power of responsible business practices and quality manufacturing that transcend borders.

Read our response on the Trump Administration’s tariff implications.

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Publications / Policy Deep Dive: Building a Global Baseline: The Role of IFRS Sustainability Disclosure Standards

Policy Deep Dive: Building a Global Baseline: The Role of IFRS Sustainability Disclosure Standards

  • Legislation and Policy

Explore Cascale & Worldly’s policy deep dive into IFRS Sustainability Disclosure Standards. This comprehensive analysis provides critical insights into the evolving global framework for sustainability and climate-related disclosures—focusing on IFRS S1 and S2—and examines their implications for businesses across the consumer goods, textile, apparel, and fashion sectors. With actionable guidance and practical recommendations, Cascale and Worldly equip members and customers with the tools to navigate fast-changing regulatory landscapes, enhance transparency, and build investor trust. Download the full deep dive now.

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February 12, 2025

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News Updates / Cascale, SLCP, and Worldly Co-Host Webinar on Higg FSLM to Support Social Compliance

Cascale, SLCP, and Worldly Co-Host Webinar on Higg FSLM to Support Social Compliance

  • Policy and Legislation
  • Higg BRM
Two people in a factory, wearing helmets. Machinery is visible in the background.
November 21, 2024

On November 6, Cascale, the Social & Labor Convergence Program (SLCP), and Worldly, the leading sustainability data insights platform, co-hosted the latest webinar in the Navigating Legislation & the Higg Index series, titled “Higg FSLM in Supporting Social Compliance.”

The webinar brought together industry experts to explore the evolving regulatory landscape and how Cascale’s Higg Facility Social Labor Module (Higg FSLM) based on the SLCP’s Converged Assessment Framework (CAF) can help companies navigate social compliance obligations.

This webinar, the third in the series, focused on the intersection of social compliance and legislative frameworks that impact supply chain management. Gabriele Ballero, public affairs manager at Cascale, moderated the session, which featured insights from Elisabeth von Reitzenstein, senior director of public affairs at Cascale; Orine Dsouza, senior manager, Higg Facility Tools at Cascale; Tom Mason, senior policy & stakeholder engagement manager at SLCP; and Vic Lau, customer success manager at Worldly.

The session attracted a diverse audience of sustainability specialists, ESG managers, compliance officers, and other professionals eager to understand how the Higg FSLM (based on  SLCP’s CAF)  aligns with emerging global regulations. Attendees engaged in a discussion on how the Higg FSLM  can support compliance with regulations designed to improve human rights and forced labor standards in global supply chains.

Key Insights from the Webinar:

During the webinar, von Reitzenstein provided an overview of the rapidly evolving EU and U.S. regulations, such as the EU CS3D, the German Supply Chain Act, and the U.S. Uyghur Forced Labor Prevention Act. She highlighted the growing importance of Human Rights Due Diligence (HRDD) and how these regulations are shaping the future of supply chain transparency and accountability.

Dsouza outlined the Higg FSLM, which is based on SLCP’s CAF. The tool offers a standardized, data-driven approach to assessing social and labor compliance in manufacturing facilities. Dsouza explained that the tool helps manufacturers reduce audit fatigue, easily compare data, and allocate resources more effectively for continuous improvement.

Mason discussed how SLCP is mapping the CAF against evolving legislation and emphasized the importance of aligning social compliance tools with regulatory requirements. Mason also highlighted SLCP’s HRDD Toolkit, which supports companies in understanding how the CAF can help them to meet compliance obligations, and previewed updates to the CAF slated for Q1 2025 to enhance policy alignment.

Lau demonstrated how Worldly’s platform hosts Cascale’s Higg Index suite of tools, including the Higg FSLM, and how they have made assessment results more user-friendly. Lau explained how the platform’s summaries and scoring features enable companies to track their progress year over year to support users in improving social and labor conditions and reducing audit fatigue for supply chain facilities.

Also, during the webinar, von Reitzenstein announced a strengthened partnership between Cascale and SLCP. Together, they have developed a joint public affairs vision statement to align efforts in policy and advocacy. This collaboration ensures that tools like SLCP’s CAF and Higg FSLM are effectively integrated into social policy frameworks, driving global improvements in labor standards and ethical practices within the industry.

The Higg FSLM, supported by the strategic collaboration between Cascale, SLCP, and Worldly, will continue to evolve to meet the needs of companies navigating regulatory requirements. Cascale’s Navigating Legislation & the Higg Index webinar series will continue into 2025, offering more in-depth discussions on how the Higg Index tools can support compliance with new and emerging legislation.

To stay informed about upcoming webinars and the latest updates from Cascale, be sure to subscribe to our newsletter.

Publications / Policy Deep Dive: California’s New Climate Accountability Package

Policy Deep Dive: California’s New Climate Accountability Package

  • Legislation and Policy

Explore Cascale & Worldly’s policy deep dive into California’s Climate Accountability Package (SB 253 and SB 261). This analysis offers critical insights into the recent climate disclosure requirements and their implications for businesses, particularly in the consumer goods, apparel, and textile sectors. Cascale and Worldly aim to equip members and customers with the tools needed to navigate these regulations and strengthen their climate resilience.

Cover of Policy Deep Dive: California’s New Climate Accountability Package Explained
November 13, 2024

Please fill out the form to download the publication

Download the full deep dive now to prepare your business for compliance and take the lead in sustainable practices.

Press Releases / Cascale, Worldly Publish Analysis on California’s Climate Laws

Cascale, Worldly Publish Analysis on California’s Climate Laws

  • Policy and Legislation

Cascale and Worldly have published an analysis of California’s new climate laws, which are set to reshape corporate environmental reporting in the United States.

November 13, 2024

Amsterdam, Hong Kong, Oakland (CA) – November 13, 2024: Cascale (formerly the Sustainable Apparel Coalition), the global nonprofit alliance for the consumer goods industry, and Worldly, the planet’s most comprehensive sustainability data insights platform, have published an analysis of California’s new climate laws, which are set to reshape corporate environmental reporting in the United States. The paper examines the implications of two key laws—the Climate Corporate Data Accountability Act (SB 253) and the Climate-Related Financial Risk Act (SB 261)—which will require businesses operating in California to disclose greenhouse gas (GHG) emissions and assess climate-related financial risks.

This timely analysis provides critical insights for companies, especially in the consumer goods industry, as they navigate the increasing demands for transparency and environmental accountability. The paper offers a view into how Cascale’s Higg Index tools, exclusively available on Worldly, and the Product Impact Calculator can help businesses prepare for the regulations.

Why California’s Climate Laws Matter

California’s climate laws represent a major shift in corporate environmental responsibility, going beyond current federal standards and establishing new benchmarks for GHG emissions reporting in the United States. As California leads the way, businesses across the U.S. must prepare for these changes, which could influence future national and global reporting requirements.

“These laws are a critical step forward for addressing climate impacts, not just for the U.S. but globally,” said Elisabeth von Reitzenstein, senior director of policy and public affairs at Cascale. “California’s Climate Accountability Package arrives at a pivotal time, as businesses worldwide face growing pressure to demonstrate their climate commitments. By requiring companies to disclose GHG emissions across their entire supply chain, California is setting a new benchmark for transparency and accountability. While global harmonization remains our ultimate goal, we acknowledge national and regional specifics to ensure progress. Strengthening enforcement at the national level, while drawing on established global standards and industry initiatives, will therefore be key to driving meaningful progress on combating climate change.”

The analysis breaks down the core components of the legislation. SB 253 applies to companies with over $1 billion in revenue and mandates disclosure of Scope 1, 2, and 3 GHG emissions, while SB 261 requires companies with at least $500 million in revenue to submit biennial climate risk assessments. These laws pose challenges for businesses with complex supply chains, such as those in the apparel, footwear, textiles, and wider consumer goods industries, as businesses must now track emissions data across their entire value chain. The report also explores the legal challenges to the laws and examines how the outcome of the U.S. Presidential election may impact broader climate regulations at the federal level.

The Time to Prepare Is Now

With key deadlines for compliance quickly approaching, businesses must take proactive steps to prepare. Cascale and Worldly are committed to supporting companies in understanding and meeting new requirements through practical solutions, industry expertise, and strategic guidance. The Higg Product Tools, the Higg Facility Environmental Module (Higg FEM), and the Product Impact Calculator, exclusively available on Worldly, can help businesses prepare for the regulations as they understand where their supply chain emissions are coming from and identify opportunities for improvement.

“The California climate laws are part of the growing global pattern of holding businesses accountable for their environmental impacts,” said JR Siegel, VP of Sustainability at Worldly. “To understand their impact reduction opportunities and report Scope 3 emissions more accurately, businesses need primary data from across their entire supply chains.”

Download the Full Report Today

To support businesses in navigating these new regulations, Cascale and Worldly have made the full deep dive analysis available for download. This report details the Climate Accountability Package, including SB 253 and SB 261, and explores the impact of both laws on the apparel and footwear industry. It also offers guidance on how companies can begin preparing for these reporting requirements.

Download the Full Publication

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. LinkedIn | X | Instagram | Facebook | YouTube


ABOUT WORLDLY

Worldly is the planet’s most comprehensive sustainability data insights 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 — developed and owned by the global nonprofit alliance Cascale — 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

Events / Navigating Legislation & the Higg Index: Higg FSLM/CAF in Supporting Social Compliance

Navigating Legislation & the Higg Index: Higg FSLM/CAF in Supporting Social Compliance

  • Cascale Webinar

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.

Date & Time
November 06 2024 | 10:00 - 11:00
Location
Virtual
News Updates / Cascale Publishes Q3 2024 Global Legislative Update: New Worker Protections, Sustainability, and Climate Regulations

Cascale Publishes Q3 2024 Global Legislative Update: New Worker Protections, Sustainability, and Climate Regulations

  • Policy and Legislation
Stack of knitted winter sweaters on wooden background
October 09, 2024

Cascale, the global nonprofit alliance formerly known as the Sustainable Apparel Coalition, has published its third Global Legislative Update for its members.

The comprehensive quarterly report offers a thorough overview of legislative actions from July to September 2024 affecting the textile and apparel industry across the EU, U.S., Asia, and other key markets. With over 300 leading organizations, Cascale recognizes the importance of staying informed on policy shifts to support sustainable practices and navigate evolving regulations.

The latest update highlights significant regulatory advancements focused on worker protections, environmental sustainability, and climate-related disclosures, with key developments in regions like the U.S., EU, and Asia. These updates emphasize stricter compliance requirements across the industry, particularly in addressing climate change and promoting responsible supply chains.

Below is a summary of key insights from the Q3 Global Legislative Update, offering a glimpse of the full report. The full report is available exclusively to Cascale members on our members-only platform, Cascale Connect. Cascale members are encouraged to log in to access the latest Global Legislative Update.

Key Developments

  • Several regulatory developments designed to protect workers came into play. For example, the United States proposed its first-ever rule to protect workers from extreme heat, while Indonesia passed a new law strengthening the rights of working mothers.
  • Environmentally and socially responsible supply chains gained momentum around the globe. Mainland China, India, and the United States have made strides toward adopting measures that promote more sustainable product practices. In the EU, the Ecodesign for Sustainable Products Regulation (ESPR) and the Corporate Sustainability Due Diligence Directive (CS3D) entered into force – on July 18 and July 25, respectively.
  • In the EU, newly re-elected European Commission President Ursula von der Leyen presented a set of ‘Political Guidelines’ for her second term of office. The guidelines include a commitment to staying the course on the goals set out in the European Green Deal. The guidelines will inform the Commission’s legislative agenda over the next five years.
  • In the United States, California passed an amendment granting a six-month extension to the California Air Resources Board (CARB) to finish its rulemaking and adopt regulations for reporting entities’ annual greenhouse gas (GHG) emissions disclosures under the state’s 2023 climate disclosure laws. The amendment does not alter the compliance deadline, which starts in 2026 for large private and public companies doing business in the state. California also signed into law the Responsible Textile Recovery Act (SB 707), introducing an extended producer responsibility (EPR) program for waste apparel and textile articles from 2028.
  • The United Nations Climate Change Conference, or Conference of Parties (COP) presidency, currently held by Azerbaijan, announced plans for what it hopes to achieve at the COP29 in Baku this November. A key agenda priority is the creation of a climate fund, capitalized with voluntary contributions from fossil fuel-producing countries and companies. Global climate adaptation finance remains insufficient.

Key Implications

  • Recent worker-related regulatory developments worldwide signify an overall strengthening of protection of employee wellbeing and introduce additional compliance requirements for companies across industries. For example, employers may need to designate a ‘heat safety officer.’
  • The EU’s ESPR aims to reduce the negative impact of products throughout their lifecycle. The use of life cycle assessment (LCA) data is central to ecodesign and the ESPR. Product-related sustainability data will be registered in the Digital Product Passport (DPP), a key component of ESPR. This includes data on its materials, manufacturing processes, end-of-life options, and environmental impact. The textile, apparel, footwear, and consumer goods sectors, with their often complex and lengthy supply chains, are expected to be significantly affected by ESPR. Complementary to the Regulation itself, a Delegated Act for Textiles is currently being developed, which will lay down the detailed components of how the regulation is to be implemented for the apparel and textiles sector.
  • The European Commission’s ‘Political Guidelines’ introduce new initiatives, such as the Circular Economy Act and Clean Industrial Deal, which could be relevant to Cascale’s impact pillar ‘combating climate change.’ Other initiatives, including a European Water Resilience Strategy, a chemicals industry package, and a Vision for Agriculture and Food, may have indirect impacts on environmental sustainability and resource efficiency.
  • California’s two climate disclosure laws go beyond the U.S. Securities and Exchange Commission (SEC)’s draft climate disclosure rule (currently on hold pending court challenges) and most public companies’ current practices, particularly in reporting Scope 3 emissions. Given the size of California’s market, the state often acts as a ‘de facto’ national regulator. Harmonized legislative frameworks would be preferable for many companies and are also a key policy priority for Cascale members.

In the next few weeks, Cascale and Worldly will publish a deep-dive analysis of the latest developments and implications of the recent California climate laws. Join our mailing list and make sure this new deep-dive is delivered straight to your inbox when it’s released.

Looking Ahead

  • Demands for better protection for workers in the context of climate change will increase, especially in light of the International Labour Organization’s (ILO) recent warning that over 70% of the global workforce is at risk of extreme heat. Industries reliant on manual labor are at the highest risk.
  • As climate’s overall impact on health comes into greater focus, governments will likely seek to offload some of the economic cost onto the private sector.
  • In the EU, while the new Commissioner has indicated a continuation of climate policy, climate change could become less of a priority following the European Parliament’s shift to the right in the June elections. Climate action will increasingly be framed in the context of industrial competitiveness.
  • The outcome of the U.S. presidential election in November could significantly influence the pace of the country’s — and the world’s — green energy transition. Vice President and Democratic nominee Kamala Harris’ energy policy position includes support for the energy transition and international agreements on climate change, coupled with increased environmental regulation. The energy policies of former President and Republican nominee Donald Trump would focus on the deregulation of the fossil fuels sector.
  •  A Harris administration could potentially strengthen the U.S.‘s commitment to international climate agreements, such as the Paris Agreement, which would have significant implications for fashion’s carbon footprint. A re-election of Trump to the presidency would likely lead to U.S. disengagement from climate negotiations, potentially hampering global efforts to mitigate climate change.

Cascale’s Public Affairs team is committed to keeping members updated on critical legislative developments and their potential impacts. These updates align with Cascale’s strategic plan and policy priorities and are designed to address the most pressing needs of our members. For more detailed insights and resources, Cascale members can access exclusive content via Cascale Connect here.

Stay Informed

Cascale will host a Brand & Retail Forum in Brussels, Belgium, on December 4-5, 2024. The event offers a dynamic mix of policy-focused discussions and broader industry insights, all designed to empower Cascale members and stakeholders in the consumer goods sectors. Learn more and register today.

For the latest Cascale updates, events, and public affairs activities, subscribe to our newsletter.

Not yet a Cascale member? Explore membership today.

News Updates / Cascale, Worldly, Release Deep Dive on EU’s Corporate Sustainability Due Diligence Directive (CS3D)

Cascale, Worldly, Release Deep Dive on EU’s Corporate Sustainability Due Diligence Directive (CS3D)

  • Legislation and Policy

Cascale, formerly the Sustainable Apparel Coalition, and Worldly, the planet’s most comprehensive sustainability data and insights platform, have published a deep dive paper analyzing the European Union’s (EU) Corporate Sustainability Due Diligence Directive (CS3D).

July 15, 2024

Cascale, formerly the Sustainable Apparel Coalition, and Worldly, the planet’s most comprehensive sustainability data and insights platform, have published a deep dive paper analyzing the European Union’s (EU) Corporate Sustainability Due Diligence Directive (CS3D).

This comprehensive analysis provides a detailed overview of the directive’s implications for businesses, especially within the textile, apparel, footwear, and wider consumer goods sectors.

The CS3D, adopted by the Council of the EU on May 24, 2024, and published in the EU Official Journal on June 13, marks a significant milestone in the EU’s efforts to enhance human rights and environmental due diligence. The directive requires large companies to identify, prevent, and mitigate adverse human rights and environmental impacts associated with their operations, which would set a new international benchmark for responsible business conduct.

Key highlights from the paper:

  1. Dynamics of National Transposition: The deep dive provides an overview of how major EU markets, including Germany, France, and the Netherlands, are progressing with the transposition of the CS3D into their national laws. The analysis covers the unique challenges each country faces and potential obstacles that could impact the timely and effective implementation of the directive.
  2. Implications for the Industry: The paper outlines the specific requirements and obligations for brands and retailers in the consumer goods sector, emphasizing the importance of developing robust due diligence programs and data collection on environmental and social performance.
  3. Tools for Compliance: To support businesses in meeting the CS3D requirements, Cascale and Worldly highlight the use of the Higg Index tools. These tools, continually updated through the organizations’ deep collaboration, are designed to help companies measure and track their sustainability performance. With recent tool updates, the Higg Index tools are evolving to further align with global frameworks and enhance data accuracy for regulatory reporting.

Businesses, stakeholders, and industry professionals can explore Cascale and Worldly’s deep dive paper to better understand the implications of CS3D on their businesses and how to prepare for its implementation. The paper provides valuable insights to help companies transition towards more responsible and sustainable business practices.

Read the full deep dive paper here.

The adoption of the CS3D is a significant step towards enhancing corporate sustainability and accountability within the EU. With detailed analysis and practical guidance, Cascale and Worldly aim to support Cascale members and Higg Index users in navigating this regulatory change and driving positive social and environmental impacts.

News Updates / Sustainability and Regulation: Highlights from Cascale’s Latest Global Legislative Update

Sustainability and Regulation: Highlights from Cascale’s Latest Global Legislative Update

  • Legislation and Policy
July 04, 2024

Cascale, formerly the Sustainable Apparel Coalition, has released its second Global Legislative Update to members.

The comprehensive quarterly report provides a detailed overview of legislative activities affecting the textile and apparel industry, as well as the broader consumer goods sector, across the EU, U.S., Asia, and other key markets. As a global nonprofit alliance with over 300 leading organizations, Cascale understands the crucial role of staying informed about policy changes to support sustainable practices and navigate evolving regulations.

Below is a summary offering a sneak peek into Cascale’s Global Legislative Update. The full document is available exclusively to Cascale members through Cascale Connect, a members-only platform. Cascale members can click here to access the full report.

Key Developments

From April to June 2024, significant legislative progress was made in areas such as climate change, labor rights, and promoting a nature-positive future.

  • Major elections took place across several jurisdictions in Q2 2024.
  • The European Parliament experienced a clear shift to the right. While the center-right remains the largest bloc, the far-right gained heavily, pushing the progressive parties, especially the Greens, from fourth to sixth place. The outcome indicates that climate change and wider environmental issues could have become a lower priority for voters amid concerns such as the cost of living and energy security.
  • In Asia-Pacific, Indian Prime Minister Narendra Modi will begin his third term but with the loss of his majority and a growing opposition. His continued tenure signifies a broad policy continuation, though with increasing weight on prioritizing economic challenges.
  • Carbon pricing has gained momentum around the globe. Mainland China, Taiwan, Turkey, Vietnam, and the United States achieved various degrees of legislative progress in their respective policies to decarbonize their economies.

Key Implications

  • The new European Parliament is unlikely to reverse the course of the green transition, especially as much subsidiary legislation of the European Green Deal has already been passed. However, the general focus of the majority appears to have shifted away from achieving environmental goals in favor of business interest. This is the case for the strongest political group, the center-right European People’s Party, as well as right-wing parties, which are growing in importance. As a result, the progress on further climate and wider environmental commitments could very likely slow down in the future.
  • In India, though securing an underwhelming victory, Modi will likely have to prioritize solving bread-and-butter issues in a bid to shore up support in the next five years. With a manifesto commitment of achieving energy independence by 2047, his administration will likely focus on expanding renewable energy capacity while retaining low-cost, coal-derived energy options for the public and businesses.
  • Carbon regulations across a number of countries will come into effect in the coming years. As the cost of emitting carbon rises, large manufacturers will have financial incentives to decarbonize their production models.

Looking Ahead

  • A Global Plastics Treaty aiming to address the full lifecycle of plastics is on the horizon. It is based on a UN Environmental Assembly resolution supported by 175 nations in 2022.
  • With an ambitious deadline of reaching an agreement by the end of 2024 and starting the implementation as soon as 2025, delegations from national governments and intergovernmental organizations will meet for the final round of negotiations in November in South Korea.
  • The final form of the treaty will determine the global regulatory environment on plastic production and consumption. Relevant topics of the treaty that still need to be resolved include whether or not it will be legally binding, whether it will emphasize circularity or reduction, and whether it will include sector-specific measures.
  • A total of 34 countries, including Austria, France, and the Netherlands, have already signed the Bridge to Busan Declaration, expressing support for reducing plastics production.
  • The global plastics treaty will have ramifications for the textile, apparel, footwear, and wider consumer goods sectors, as much of their products contain plastics.

 

Cascale’s Public Affairs team aims to provide members with regular updates and insights regarding key developments and potential effects of relevant legislation, aligning with Cascale’s strategic plan, policy priorities, and members’ greatest needs. Members may access exclusive public affairs and policy resources on Cascale Connect here.

Stay informed

Subscribe to our newsletter for the latest Cascale updates, events, and public affairs activities.

Not yet a Cascale member? Click here to learn more about becoming a member. 

News Updates / Cascale Weighs Brand Response to Upcoming Legislation

Cascale Weighs Brand Response to Upcoming Legislation

  • Policy and Legislation
Elisabeth von Reitzensteinv at the Innovation Forum in Amsterdam 2024.
May 13, 2024

Elisabeth von Reitzenstein, senior director of policy and public affairs at Cascale, joined a panel at Innovation Forum earlier this month on how brands can be more reactive to incoming legislation. Moderated by Ian Welsh, publishing director at Innovation Forum, the panel also included Kresse Wesling, co-founder and director of CBE, Elvis & Kresse, and Ilya Kleyner, lead sustainability solutions architect at Altruistiq.

Von Reitzenstein gave an anecdote, noting the progress brands have made over the last 15 years on their public affairs activities. She emphasized the importance of brands stepping up their resources to be proactive, and avoid the potential reputational risk of only taking action when required to comply.

She welcomed a wider collaborative approach, and encouraged brands to be actively involved in policy discussions, sharing knowledge and developing joint industry positions within industry organizations and initiatives such as the Policy Hub. Von Reitzenstein detailed the importance of prioritization of collective action along the supply chain, including transparency to identify and address sustainability issues. She explained the significance behind “Cascale’s” new name, which is “Collective Action at Scale” and reiterated the fact that this collective action had to happen together with manufacturers.

She highlighted the Higg Index suite of tools as an example brands can use to understand and improve their sustainability performance. Cascale is committed to continuously updating the Higg Index tools to meet the needs of its members, users and the broader industry and support them in their compliance journeys and beyond.

This year, Cascale launched a webinar series sharing how the Higg Index tools have been mapped to existing and upcoming legislation, and how it plans to evolve the tools accordingly. The organization has also shared and continues to develop resources for members and Higg Index users to ensure they’re well-informed and supported in their compliance journeys.

Blogs / Aligning the Higg Index Product Tools with Evolving Regulation

Aligning the Higg Index Product Tools with Evolving Regulation

  • Legislation and Policy
  • Higg PM
  • Higg MSI
  • Higg Index Tools

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.

April 30, 2024

On March 27, Cascale and Worldly hosted the first webinar in a joint series called “Navigating Legislation & the Higg Index.”

The series is designed to showcase how the Higg Index aligns with evolving regulations and how the tools support users through regulatory compliance.

Speakers included Cascale’s Gabriele Ballero, policy and public affairs officer; Joel Mertens, director, Higg Product Tools; Elisabeth von Reitzenstein, senior director of policy and public affairs; Quinten Geleijnse, manager, Higg Product Tools and lifecycle assessments; and Worldly’s Paula Bernstein, senior data manager.

Over 160 attendees joined and raised many thoughtful questions about the future of compliance for consumer goods.

The next webinar in the series “Navigating Legislation & the Higg Index: Higg BRM with CSRD and more” will be held on June 12. Learn more and register.

Key Takeaways

Importance of Product Environmental Footprint (PEF)

“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: One to Watch

“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

Synergistic Approach, Led by Data

“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

Accessibility is Key

“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

Going Beyond Compliance

“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

Similar, But Difference

“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

Study Up

“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

Understanding PEF

“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

What sustainability regulations in the EU define requirements regarding the environmental impacts of my products?

On the webinar, speakers discussed relevant EU legislation and initiatives, including:

  • Corporate Sustainability Reporting Directive (CSRD) – [in force] – The CSRD is one of the ‘tools’ in the EU’s Green Deal toolkit, aimed to make the EU climate neutral by 2050. The CSRD establishes a standardized framework for companies to report on their social and environmental impacts through the use of European Sustainability Reporting Standards (ESRS).
  • Ecodesign for Sustainable Products Regulation (ESPR) – [expected mid-2027] – Designed to make sustainable products the norm in the EU, the ESPR sets eco-design requirements for specific product groups, including textiles. The requirements cover key sustainability aspects such as durability, recyclability, and use of recycled content, as well as the creation of a Digital Product Passport (DPP) that will act as a “digital twin” of the garments and aims at enhancing transparency and traceability along the value chain.
  • Substantiating Green Claims Directive (SGCD) – [expected 2025] – Aimed to tackle greenwashing, the SGCD introduces stricter and standardized methodologies for sustainability claims, making claims more reliable, transparent, and comparable.
  • France’s Anti-Waste for a Circular Economy Law – [in force] – The law requires large clothing brands to have verified environmental labeling; smaller companies will have to comply in 2024 and 2025.
  • France’s draft bill targeting fast fashion – [expected 2025] – The draft bill reinforces Extended Producer Responsibility (EPR) schemes for textiles by introducing a penalty for products that are not sustainable or recyclable. This addresses the fast fashion sector specifically.

What is the significance of PEF in relation to these regulations?

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.

What is the role of Cascale in drafting the Apparel and Footwear PEFCR?

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.

How will the Higg Product Tools evolve to support users on their regulatory compliance journey?

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.

Will Cascale integrate the FEM with the Product Tools to allow facility information to be used for product footprinting?

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.

Will home goods, home textiles, and furniture be in the scope of PEF? 

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:

  1. Apparel & Footwear
  2. Beverages
  3. Chemistry-based final products
  4. Construction products
  5. Electrical & electronics
  6. Food products (including products not for human consumption)
  7. Materials and intermediate products
  8. Energy production and transmission

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.